21) Statements and Notices.  Statements  and  notices will be mailed to you at the most recent 
address you  have given the Credit Union. You agree to give us prompt notice of any change  in 
your name, mailing address, telephone number  or place of employment.

22) Copy Received. By using the Card or the account,  you acknowledge that you have received 
a copy  of this Agreement  and agree  to all the terms  and conditions  and promise  to perform  all 
the obligations, requirements  and duties contained in this Agreement.

23) Additional  Provisions.  Each provision  of this Agreement  must be considered as  part of 
the total Agreement  and cannot,  in any  way,  be severed  from it. However,  you also  agree  that 
should any part of the Agreement be found  invalid, it will in no way affect the remainder  of the 
Agreement. You understand the validity, construction,  and enforcement of this Agreement shall 
be governed by the laws  of the State of Texas and federal law. Use  of your Card is also subject 
to  the  policies  and  rules  of MasterCard  International  and VISA  International,  as  applicable 
and in effect  from  time to time,  which  do not conflict  with  the terms  of this Agreement.  The 
Credit  Union does  not warrant any  merchandise  or services  purchased by you with the Card. 
All  purchases and cash  advances  are extended at the option  of the merchant or cash advancing 
financial institution  and  the Credit  Union  is  not  responsible  for refusal  of any  merchant  or 
financial institution  to honor your  Card. We can accept  late payments  or  partial payments  or 
checks  or  money  orders  marked “payment  in  full”  without  losing  any  of  our  rights  under 
this Agreement.  We  can also delay enforcing  any of our  rights under  this Agreement without 
losing them.

YOUR BILLING RIGHTS — KEEP THIS NOTICE  FOR FUTURE USE

This notice contains  important information  about your rights  and our responsibilities  under the 
Fair Credit  Billing Act.

Notify Us In Case of Errors or Questions About Your Bill

If you think your bill is wrong or if you need more information  about a transaction  on your bill, 
write us on a separate sheet at the address listed on your bill. Write  us as soon  as possible.  We 
must hear from  you no later than 60 days after  we sent  you  the first bill  on which the error or 
problem appeared. You can telephone  us, but doing  so will not reserve your rights.

In your letter,  give us the following information:

• Your name and account number.
• The dollar amount  of the suspected error.
•  Describe the error and explain, if you can, why you believe there  is an error. If you need 

more information,  describe the item you are not sure about.

If you  have  authorized  us to  pay  your  credit  card  bill  automatically  from  your  savings or 
share  draft  account,  you  can  stop  the payment  on  any  amount  you  think is  wrong.  To  stop 
the payment  your letter  must  reach  us  three  business  days before  the automatic  payment  is 
scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice

We must  acknowledge your letter within  30 days, unless we have corrected  the  error by then. 
Within 90 days, we must either  correct the error or explain  why we believe  the bill was correct. 
After  we receive your  letter,  we cannot try to collect any  amount you question or report you as 
delinquent. We can continue  to bill you for the amount you question,  including  the FINANCE 
CHARGES, and we can apply an unpaid  amount  against your credit limit. You do not have to 
pay any questioned amount while  we  are  investigating,  but you  are  still  obligated  to pay  the 
parts of your bill that are not in question.

If we  find  that  we  made  a mistake  on  your  bill,  you  will  not  have  to  pay  any  FINANCE 
CHARGES related  to any  questioned  amount.  If we  didn’t  make  a mistake,  you may  have 
to  pay  FINANCE  CHARGES,  and  you  will have to make  up any  missed  payments  on the 
questioned amount.  In either case, we  will  send  you  a statement  of the amount  you  owe and 
the date that it is due.

If you fail to pay the amount that we think you owe, we may report  you as delinquent. 
However, if our explanation  does not satisfy you and you write to us within 10 days telling 
us that you still refuse to pay, we must  tell anyone we report  you to that you have a question 
about your bill. And, we must  tell you the name of anyone we reported  you to. We must  tell 
anyone we report  you to that the matter  has been settled between us when it finally is.

If we don’t  follow these rules,  we can’t collect the first $50 of the questioned  amount,  even if 
your bill was correct.

Special Rule For Credit Card Purchases

If you have a problem with the quality of property  or services that you purchased with a credit 
card, and you have tried in good faith to correct the problem with the merchant,  you may 
have the right not to pay the remaining amount due on the property or services. There  are two 
limitations  on this right:

•  You must  have made the purchase in your home state or, within 100 miles of your current 

mailing address; and

•  The purchase price must  have been more than $50.

These  limitations  do not apply  if we  own  or operate  the merchant,  or if we  mailed  you  the 
advertisement for the property or services.

G16223

CREDIT CARD AGREEMENT

P. O. BOX 920719 • Houston, TEXAS 77292-0719 
(713) 850-1600 • (800) 392-5084 • FAX: (713) 622-6860
www.smartcu.org

In this Agreement,  the words  “we,”  “our,”  “us,”  and “Credit  Union”  mean  Smart Financial 
Credit Union or its successors.  “You”  and “your” mean  any person  who  signs this Agreement 
or uses  the Card.  “The  Card”  means any credit card issued to you or those designated by you 
under  the  terms  of this Agreement.  “Use of the  Card”  means  any procedure  used by you,  or 
someone  authorized  by you, to make  a purchase  or obtain  a cash advance  whether  or not the 
purchase  or advance  is  evidenced  by  a signed  written  document.  “Unauthorized  use  of the 
Card” means the use of the Card by someone other than you who does  not have actual,  implied, 
or apparent  authority  for such use,  and from which  you receive no benefit.

ADDITIONAL SECURITY.  If you  have  other  loans  with us,  now  or  in the  future, collateral 
securing  those  loans  may  also  secure  your  obligations  under  this  Agreement.  Please  read 
any  security  agreement  you  sign  in  order  to determine  if  the  collateral  also  secures your 
obligations under this  Agreement and other agreements you have with  us.

1)  Extensions  of  Credit.  If  your  Application  is  approved,  the  Credit  Union  may,  at  its 
discretion, establish  a line of credit  in your name  and cause  one or more Cards  to be issued  to 
you or those designated by you. In such event, you authorize  the Credit Union to pay for your 
account,  all items reflecting  credit  purchases  and cash  advances  obtained through use  of the 
Card. You  may  not use your Card for any illegal purpose or transaction.  The Credit Union may 
refuse  to  authorize  any transaction  that it believes  to be illegal  or that poses  an undue  risk or 
illegality. If we do process any transaction  which ultimately  is determined  to have been  for an 
illegal purpose,  you agree that you will remain  liable to us under  this Agreement for any such 
transaction  notwithstanding its  illegal  nature. You  agree  that any  illegal  use  of the Card will 
be deemed  an act of default  under this Agreement. You further agree to waive any  right to take 
legal action  against  the Credit  Union for illegal  use  of the Card and to indemnify  and hold the 
Credit  Union, MasterCard  International,  Inc., and VISA International,  Inc. harmless from  and 
against any lawsuits, other  legal action  or liability  that results directly or indirectly  from  such 
illegal use.

2) Joint Applicant  Liability.  If this Agreement is  executed by more  than one person,  each  of 
you shall be jointly  and  individually  liable to us for all charges made  to the account, including 
applicable fees.  In addition,  you  agree that each  of  you  designates  the other  as agent  for  the 
purpose  of  making  purchases  extended  under  this  Agreement  and  each  use of  your  account 
shall be  an  extension  of credit  to all. Notice  to one  of you  shall constitute  notice  to all. Any 
joint  cardholder  may remove him/herself from responsibility  for future  purchases at any  time 
by notifying  us in writing.  However,  removal from the account  does not release you from  any 
liability already incurred.

3) Others  Using  Your Account.  If you allow  anyone else to use your  Card, you will  be liable 
for all credit extended  to such persons. You promise  to pay for all purchases, balance transfers, 
and cash advances made by anyone whom  you authorize  to use your Card,  whether or not you 
notify us that he or she will be using it. If someone else is authorized to use your  Card and you 
want  to end that person’s privilege, you  must notify  us in writing,  and if he or she  has  a Card, 
you must return the Card with your written notice for it to be effective.

4) Credit Limits.  You promise  the payments  made for your account  resulting from  use of the 
Card will, at no time, cause the outstanding  balance in your account to exceed your credit limit 
as disclosed to you at the time  you received your  Card or as adjusted  from  time  to time at the 
discretion of the Credit Union.

5)  Promise  To Pay. Each month you must pay at least  the minimum payment  shown  on your 
statement  by the date specified  on the statement  or no later than twenty-five  (25) days  from the 
statement closing  date,  whichever  is later.  If your  statement says the payment is “Now  Due,” 
your payment is  due no later  than twenty-five  (25) days from  the statement closing  date.  You 
may pay more frequently, pay more than the minimum  payment or pay the Total New Balance in 
full.  If you make  extra or larger payments,  you are still required to make  at least  the minimum 
payment each month your Account  has a  balance  (other than a  credit balance).  The minimum 
payment is  2% of your Total New Balance,  or $25.00, whichever is  greater, plus the amount of 
any prior minimum  payments that you have not made, and any amount you are over your credit 
limit.  The Credit Union also  has  the right to  demand  immediate  payment  of any  amount by 
which  you are over your credit limit.

6)  Cost  of  Credit.  The  ANNUAL  PERCENTAGE  RATE  used  to  calculate  your  Smart 
Financial  Credit  Union credit  card  account  is  based  on  your  credit  history  and our lending 
guidelines at the time  the credit card account  is opened  and  at the time  of any review of your 
credit card account. Cash advances (including  balance transfers) incur a FINANCE CHARGE 
from  the date they  are  posted  to the account.  You  will  pay  a FINANCE  CHARGE  for  all 
advances made  against  your  account  at the periodic  rate  per day,  which  has  a corresponding 
ANNUAL  PERCENTAGE  RATE  (See  table below).  For  purchases,  if you  have paid  your 
account in full by the due date shown on the previous monthly  statement, or there is no previous 

balance,  you have  not less  than 25 days  to repay  your account  balance before a FFINANCE 
CHARGE  on  new  purchases  will be imposed.  Otherwise,  there is no grace period  and  new 
purchases  will incur  a FINANCE  CHARGE  from  the  date  they  are  posted  to  the account. 
The FINANCE  CHARGE  is  figured  by applying  the periodic  rate  to  the “balance  subject 
to  FINANCE CHARGE”  which  is  the “average  daily  balance”  of your  account,  including 
certain  current transactions. The  “average daily balance”  is arrived  at by taking the beginning 
balance  of  your  account  each  day  and  adding  any  new  cash  advances,  and  unless  you  pay 
your account  in full by the due date  shown on your previous monthly  statement  or there  is no 
previous balance, adding in new purchases, and subtracting  any payments or credits and unpaid 
FINANCE  CHARGES. This gives us  the  daily  balance.  The  daily  balances  for  the  billing 
cycle are then  added  together and  divided by the number  of days in the billing  cycle. The result 
is  the “average daily  balance.”  The FINANCE  CHARGE  is  determined  by multiplying  the 
“average  daily  balance”  by the number  of days  in the billing  cycle and applying  the periodic 
rate to the product.

Annual Percentage  

Rate Periodic Rate

8.49% 
9.49% 
13.79% 
15.79% 
17.79% 

0.023260%
0.026000%
0.037781%
0.043260%
0.0487397%

7)  Other  Charges.  The  following  other  charges  (fees)  will  be  added  to  your  account,  as 
applicable:

•  ATM  Fee. If you obtain a  cash advance  by using an automated  teller machine,  you may 
be  charged  any amounts  imposed  upon  the  Credit Union  by  the  owner  or  operator  of 
the machine.  Any charge made  under  this paragraph  will be added to the balance of your 
account and treated  as a purchase.

•  Collection Cost  Fee. You agree to pay all reasonable  costs of collection, including  court 

costs and attorney’s  fees imposed  and any costs incurred  in the recovery of the Card.

•  Return  Check  or ACH  Fee. If a check  or share  draft or ACH transaction  used to make 
a payment  on  your account is  returned unpaid, you may be charged  a  fee  of $25.00 for 
each item returned.

•  Late Payment  Fee.  If you  are 10 or more  days late  in making  a payment,  a late  charge 
equal to 5.00%  of the minimum  payment (not to exceed $25.00)  may be  added  to your 
account.

•  Document  Copy  Fee.  You  will  be  charged  $3.00  for  each  copy  of  a  sales  draft  or 
statement that you request (except when  the request  is made  in connection  with a billing 
error made by the credit union).

8) Credit  Insurance.  If available,  credit  insurance is not required  for any  extension  of credit 
under this Agreement.  However,  you may purchase  any credit insurance  available through the 
Credit  Union and have  the premium  added to the outstanding  balance in your  account.  If you 
elect to do so, you will be given the necessary disclosures  and documents separately.

9) Liability for Unauthorized Use. For MasterCard, you may be liable for the unauthorized use 
of your Card. For MasterCard, you will not be liable for any unauthorized use of your Card if you 
notify  our designee  orally  or in writing  at the Credit Card Center, PO Box  815909, Dallas,  TX

75381-5909,  telephone number 1-800-442-4757,  of the loss, theft,  or possible unauthorized use 
and you meet  the following  conditions: (1) you have exercised reasonable  care with  the Card; 
(2) you have not reported  two or more  incidents  of unauthorized  Card use within  the previous 
12 months; and (3) you have maintained  your account  in good standing. The foregoing liability 
limitation  does  not  apply  to  ATM  cash  advance  transactions.In  any  case,  your  maximum 
liability for unauthorized  use of the Card will  not exceed $50.00  and you  will not be liable  for 
any unauthorized use that occurs after you notify us (or our designee) at the address or telephone 
number above.

For VISA,  you may be liable  for the unauthorized  use of your Card. You  will  not be liable  for 
unauthorized  use of your Card if you notify  our designee  orally  or in writing  at the Credit Card 
Center,  PO  Box 815909,  Dallas, TX  75381-5909,  telephone  number 1-800-442-4757,  of  the 
loss, theft,  or possible unauthorized use. The foregoing liability limitation does not apply if you 
are grossly negligent or fraudulent in the handling of your account or your Card, nor does it apply 
in the case  of cash advances obtained  at an ATM.  In any  case, your  liability  for unauthorized 
use will not exceed $50 and you will not be liable for any unauthorized use that occurs after you 
notify us (or our designee) at the address or telephone number above.

10)  Crediting  of  Payments. All  payments made on  your account  at  the  address  designated 
for  payment  on the monthly  periodic  statement  will be credited  to your  account  on the date 
of receipt. If  the  date of  receipt is  not  a  business  day, your payment  will be  credited  on  the 
first business day following  receipt.  IF PAYMENT  IS MADE  AT ANY  LOCATION OTHER 
THAN THE ADDRESS DESIGNATED ON THE PERIODIC  STATEMENT, CREDIT  FOR 
SUCH  PAYMENT  MAY  BE  DELAYED  UP  TO  FIVE  (5)  DAYS.  All  payments  on  your 
account  will be applied  first to collection costs, then  to any  FINANCE CHARGE  and  other 
fees due,  and  then  to the  unpaid  principal  balance.  Interest  paid  or agreed  to  be paid  shall 
not  exceed  the maximum  amount  permissible  under  applicable  law,  and in any  contingency 
whatsoever, if we shall receive anything of value deemed  interest  under applicable  law which 
would  exceed the maximum amount of interest permissible under applicable  law, the  excessive 
interest  shall be applied  to the reduction of the unpaid principal amount  or refunded to you. If 
you make a payment  which  exceeds the minimum balance due and you have balance transfers 
at a lower interest and purchases at another interest rate, any over payment  will be applied to the 
highest interest balance first.

11) Default. You will be in default: (1) if you  fail to make any payment  on time; (2) if you  fail 
to keep any promises you have made under  this or any other Agreement with the Credit Union; 
(3) if you  are the subject  of an order  for relief under  Title  11 of the U.S.  Code  (Bankruptcy); 
(4) if anyone tries, by legal process, to take any of your money in the Credit  Union;  (5) if you 
have given the  Credit Union false or inaccurate  information  in obtaining  your  Card;  or (6)  if 
anything  happens which the Credit  Union reasonably believes endangers  your  ability to repay 
what you owe.

12) Acceleration.  If you are in default,  the Credit Union may,  without prior notice  to you, call 
any amounts you  still owe immediately  due and payable plus  FINANCE  CHARGES, which 
shall continue to accrue until  the entire  amount is paid. You expressly waive any right  to notice 
or demand, including  but not limited  to, demand  upon default,  notice of intention to accelerate, 
and notice of acceleration. The Card remains the property of the Credit Union at all times and you 
agree  to immediately surrender the Card upon demand  of the Credit Union.

13) Additional  Benefits/Card  Enhancements.  The Credit Union may from time to time offer 
additional services to your account  at no additional  cost to you. You understand that the Credit 
Union  is not obligated to offer such services and may withdraw or change them at any time.

14)  Convenience Checks.  The  Credit  Union  may, at its discretion,  issue checks to you which 
may be used for any purpose other than making a payment for credit to your account. By signing 
such check, you authorize  the Credit Union to pay the item  for the amount  indicated  and  post 
such amount  as a cash  advance  to your  account.  The Credit  Union  does not have  to pay any 
item, which would cause the outstanding  balance in your account to exceed your credit limit.

15)  Continuation  of  Credit.  The  Credit  Union  may  from  time  to  time  request  personal 
information from you for the purpose of updating  your credit status, according to normal credit 
procedures. Your failure  to provide  such information when  requested  by the Credit Union may 
result in suspension of your line of credit  privileges under this Agreement, including  your ability 
to obtain any future advances by any means.

16)  Currency  Conversion.  For  MasterCard,  if  you  effect  a transaction  in a currency  other 
than U.S. dollars,  MasterCard International will convert  the charge  into a U.S. dollar  amount. 
MasterCard  International  will  use  its currency  conversion  procedure,  which  is  disclosed  to 
institutions that issue MasterCards. Currently,  the currency conversion rate used by MasterCard 
International  to  determine  the  transaction  amount  in  U.S.  dollars  for  such  transactions  is 
generally  either a  government- mandated  rate  or a wholesale rate  determined  by MasterCard 
International  for the processing  cycle in  which  the  transaction is  processed,  increased by an 
adjustment  factor  established  from  time  to  time by MasterCard  International.  The  currency 
conversion  rate  used  by MasterCard  International on the processing  date may  differ  from the 
rate that would  have been used on the purchase  date or cardholder  statement posting  date. For 
VISA,  for transactions  initiated in foreign  currencies, the exchange rate between the transaction 
currency  and the billing  currency  (U.S.  dollars)  will be: (a) a rate selected  by VISA from  the 
range  of rates  available  in  wholesale  currency  markets  for the applicable  central  processing 
date,  which  rate  may vary from  the rate  VISA itself receives; or (b) the government mandated 
rate in effect for  the applicable central  processing date.  In each instance,  plus any adjustment 
determined  by the Credit Union.

17)  VISA  Emergency Services. For VISA  Platinum cardholders,  you acknowledge  that  we 
may provide  personal  data concerning  you  to VISA  U.S.A.,  its Members,  or their respective 
contractors for the purpose  of providing  you with VISA  Emergency Cash and Emergency  Card 
Replacement Services, and you consent to the release of your information for these purposes.

MasterCard  Emergency  Services.  For  Mastercard  Platinum cardholders,  you  acknowledge 
that we may  provide  personal  data concerning  you to Mastercard  International,  its Members, 
or  their respective  contractors for  the  purpose of  providing you  with  Mastercard Emergency 
Cash  and  Emergency  Card  Replacement  Services,  and  you  consent  to  the  release  of  your 
information  for these purposes.

18)  Termination  or  Changes.  The  Credit  Union  may,  by  written  notice,  terminate  this 
Agreement  at  any time. You  may terminate  this Agreement,  by  written notice.  Termination 
by either party shall  not affect  your obligation  to  repay  any payments  made  for your account 
resulting  from  use  of  the  Card  as  well  as  FINANCE  CHARGES  and  OTHER  RELATED 
CHARGES.  The  Credit  Union has  the right  to change  any  part of this  Agreement  or add  or 
remove any term,  condition,  or requirement. If permitted  by law, the change may be applied to 
any Account  balance  existing at the time of the change.  We will give you  written  notice  prior 
to the effective  date of any such  change, if required  by law.  From time to time, we may  review 
your Account. Based on these  reviews, we may decide to change your Account  terms,  including 
APRs,  fees,  and  the  amount of  your credit  line. Other  changes  may  include  the  method of 
calculating the periodic rate. Use of the Card or account  after having received a notice of change 
in terms constitutes  agreement to and acceptance of the change in terms.

19) Credit Information. You authorize  the Credit Union to investigate your credit standing and 
employment history  when opening  or reviewing  your account. You  authorize the Credit Union 
to  disclose  information  regarding  your account  to  credit  bureaus  and  creditors  who inquire 
about  your credit  standing.  20)  Notification Address  for Information  Reported  to  Consumer 
Reporting Agencies.

20) Notification Address for Information  Reported  to Consumer Reporting Agencies. We 
may  report  the  status and  payment  history of your  account  to credit  reporting  agencies each 
month. If you believe that the information we have reported  is inaccurate  or incomplete,  please 
notify  us  in writing at Smart  Financial Credit  Union,  P.O. Box 920719, Houston, TX  77292-
0719. Please include your name, address, home telephone number and account number. We may 
report the status and payment history of your account to credit reporting  agencies each month. If 
you believe that the information we have  reported is inaccurate or incomplete, please notify  us 
in writing at Smart Financial Credit Union, P.O. Box  920719, Houston, TX 77292-0719. Please 
include  your name, address,  home telephone number and account number.