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collect on this Account, you agree to pay our reasonable attorney’s
fees and court costs. You will pay our reasonable attorney’s fees and
court costs whether the legal action we take is a collection lawsuit,
a proceeding to protect our interests if you become a bankruptcy
debtor, an appeal, an action to enforce a judgment, or any other type of
proceeding. You authorize us to add reasonable collection costs to
your Account balance and charge interest on them at the rate
applicable to cash advances.

M. OTHER RIGHTS APPLICABLE TO CREDIT CARDS

1. Unauthorized Use of Lost or Stolen Cards. You agree to notify us
promptly of the loss, theft or other actual or possible unauthorized use
of any Card we issue to you. Call (800) 556-5678. Although you are
generally not be liable for unauthorized use (except that you may be
liable for up to $50 for unauthorized PIN-based transactions), all
SLFCU members benefit if unauthorized Card use losses are kept to a
minimum.

Once you report your Card as lost or stolen, you agree not to
attempt to use it. A replacement card will usually be issued to you.
If you find your card after reporting it lost or stolen and attempt to use it,
a merchant may capture the Card and you will have to pay a card
capture fee.

If you report your Card as stolen, you agree to cooperate with our
investigation. Your failure to file a police report or otherwise cooperate
with our investigation may give us reasonable grounds to deny your
claim of unauthorized use. Although we will not close your Account solely
because you exercise your rights to report unauthorized activity or other
errors under the Fair Credit Billing Act, our determination that your report
of unauthorized Card activity was not made in good faith may be
grounds for closing your Account to future use. If we decide that you
have an excessive number of lost or stolen cards, we may not issue a
replacement card or open a new account for you.

2. Merchant Disputes. We are not responsible for the refusal of any
merchant or other financial institution to honor you Card. We are
subject to good faith claims and defenses recognized by law (other
than tort claims) arising out of goods or services you purchase with
the Card, but only if you have made a good faith attempt but have been
unable to obtain satisfaction from the plan merchant and (a) your
purchase was made in response to an advertisement we sent or
participated in sending you; (b) your purchase was made from a
merchant we own or operate; or (c) your purchase cost more than $50
and was made from a merchant in your state or within 100 miles of your
home. We are relieved from any liability if you have already paid us for
the disputed transaction. Any other disputes you must resolve directly
with the merchant.

3. Credits: A merchant who honors your Card and gives you credit
for returns or adjustments will do so by sending us a credit slip which
we will post to your Account. Subject to Section D.15 of this Agree-
ment, if your credits and/or payments exceed what you owe, we will
hold and apply this credit balance against future transactions, or
refund it on your written request if it is $1.00 or more.

N. TERMINATION

1. We may terminate this Agreement and close your Account at any
time by sending you a written notice of the termination and the lawful
business reasons for so doing.

2. We can close your Account without prior notice if you fail to pay on
time, or we have evidence or a reasonable belief that you are unable or
unwilling to repay your Account balance. A significant increase in your
obligations, your filing for bankruptcy relief, your unemployment, your
failure to meet other obligations you have to us, or your death, are
examples of circumstances that could lead us to close your Account
without notice. We will give you advance notice required by law for other
terminations. If we close your Account with or without notice due to your
breach of this Agreement or any other agreement you have with us, your
death or your bankruptcy, we can demand that you pay off the entire
balance at once.

3. You can close your Account by sending us a written request and
cutting all issued Cards and courtesy checks in half and returning them
to us.

4.

If we or you close your Account, you agree to surrender all issued
Cards and courtesy checks to us. The Cards and courtesy checks remain
our property. Even if your Account is closed, you must still pay your
outstanding balance in full under the terms of this Agreement.

O. GENERAL TERMS

This Agreement reflects your obligations to us with respect to all
Account transactions you make even though sales, cash advance or credit
slips you sign may contain different terms. If any part of this Agreement is
found to be invalid, the remaining provisions will continue in effect.
It will not be construed against either party. Federal law, including Federal
Reserve Regulation Z, and any applicable state law not pre-empted by
federal law, will govern this Agreement’s interpretation.

BILLING RIGHTS: KEEP THIS NOTICE FOR FUTURE USE
STATE AND LOCAL LAW

The following summary of your rights under federal law does not cover
all rights you may have under State and local law. If, under State or local
law, you have a longer of period of time in which to send an inquiry to us
concerning your statement, reliance on any such longer time period may
result in your losing important rights that could be preserved by acting more
promptly under federal law. State or local provisions, if any, only become
operative upon the expiration of the time period provided by Federal
Reserve Regulation Z for submitting a proper written notification of an error.
This notice contains important information about your rights and

responsibilities under the Fair Credit Billing Act.

Notify Us In Case of Errors or Questions About Your Statement

If you think your statement is wrong or you need more information
about a transaction on your statement, you must write to us at Card
Services, 3707 Juan Tabo NE, Albuquerque, NM 87111. Write to us as
soon as possible. We must hear from you no later than 60 days after we
sent you the first statement on which the error or problem appeared. You
can telephone us at (800) 947-5328 or (505) 293-0500 but doing so will not
preserve your rights.

In your letter give us the following information:

• Your name and account number.
• The dollar amount of the suspected error.
• A description of the error and, if possible, an explanation of 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 make your Account payment auto-
matically, you can stop the payment on any amount you think is wrong.
To stop payment, your request must reach the financial institution where
you maintain the account from which the payment is deducted (which
may be SLFCU or another financial institution) at least three business
days before the automatic payment is scheduled to occur. You may be
required to confirm an oral request in writing within 14 days, and if you
do not do so, your oral stop payment request may lapse.

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 statement 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 finance charges, and we can apply any
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 statement that are not in question.

If we find that we made a mistake on your statement, you will not
have to pay any finance charges related to any questioned amount. If we
did not 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 reported you to that you have a question about your

statement. 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 do not follow these rules, we cannot collect the first $50 of the

questioned amount, even if your statement was correct.

Special Rule for Credit Card Purchases

If you have a problem with the quality of goods 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 remain-
ing amount due on the property or services. There are two limitations on
this right: (a) you must have made the purchase in your home state or
within 100 miles of your current mailing address; and (b) 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.

NOTICE TO CALIFORNIA RESIDENTS

Under California law, our right to recover credit extended to you for credit
card purchases is subject to any defenses that you have against the seller if:

1. The purchase price of the item in question exceeded $50;
2. The purchase was made in California;
3. You made a written demand on the retailer and made a good faith

attempt to get satisfaction of your complaint; and

4. You notify us in writing of the name of the seller, the date of purchase, the
price paid, the goods or services purchased, and the acts that you took to
obtain satisfaction from the seller.

The amount to which the defense applies is limited to the amount
outstanding on the purchase as well as late charges and finance charges at
the time we receive the written demand.

This remedy is the only one you have against us. Your rights are limited to
those circumstances outlined in California Civil Code §1747.90. Purchases
with cash or check are not included in this section even though you used your
credit card to validate your credit.

We cannot penalize you by either giving out unfavorable credit information
about you or canceling or refusing to renew your credit card solely because
you obtained relief under the remedies you have for correcting billing errors.

ATM DISCLOSURE

This part of this disclosure includes special provisions applicable to the use
of the Card to obtain cash advances at Automated Teller Machines (ATMs).
This disclosure addresses only credit card cash advances at ATMs. Refer to
your separate Electronic Funds Transfer disclosure for a complete disclosure
of terms applicable to ATM Cards and Debit Cards.

Available Services

The ATM you use may restrict the number of credit card transactions and
the amount of each transaction. Each ATM owner determines hours of
service, but ATMs are generally available 24 hours a day, 7 days a week,
subject to periodic closures for maintenance.

Documentation of Transactions

The ATM may generate a receipt for cash advance transaction, and ATM

cash advance transactions will appear on your monthly statement.

Credit Union Liability

We will not be liable for failure to complete cash advance transactions if:
1. Your Account does not have available credit to make the transaction;
2. The ATM system was not working properly and you knew about the

breakdown when you started the transaction;

3. Your personal identification number (PIN) or Card has been reported lost

or stolen and we have blocked its use;

4. Circumstances beyond our control, such as communication malfunction,
fire, flood, electrical failure, or malfunction of the central data processing facility
prevent completion of the transaction despite our reasonable precautions; or

5. We establish other lawful exceptions and notify you of them.

Security

Do not use an ATM machine unless it appears safe to do so. Do not key in
your PIN if someone is looking. Take your Card, receipt and money when you
are done, put your money away quickly, and leave the site.

NOTICE TO CO-SIGNER
(Traduccion en Ingles Requiere Por Lay Ley)

You are being asked to guarantee this debt. Think care-
fully before you do. If the borrower doesn’t pay the debt,
you will have to. Be sure you can afford to pay if you have
to, and that you want to accept this responsibility.

You may have to pay up to the full amount of the debt
if the borrower does not pay. You may also have to pay
late fees or collection costs, which increase this amount.
The creditor can collect this debt from you without first
trying to collect from the borrower. The creditor can use
the same collection methods against you that can be
used against the borrower, such as suing you, garnishing
your wages, etc. If this debt is ever in default, that fact
may become part of your credit record.

This notice is not the contract that makes you liable

for the debt.

AISO PARA EL FIADOR
(Spanish Translation Required by Law)

Se le está pidiendo que garantice esta deuda. Piénselo
con cuidado antes de ponerse de acuerdo. Si al persona
que ha pedido este préstamo no pagó la deuda, usted
tendrá que pagarla. Esté seguro de que usted podrá pagar
si sea obligado a pagarla y de que usted desea aceptar la
responsabilidad.

Si la persona que ha pedido el préstamo no paga la
deuda, es posible que usted tenga que pagar la suma total
de la deuda, mas los cargos por tardarse en al pago o el
costo de cobranza, lo cual aumenta el total de esta suma.
El acreedor (financiero) puede cobrarle a usted sin,
primeramente, tratar do cobrarle al deudor. Los mismos
metodos de cobranza que pueden usarse contra el deudor,
podran usarse contra usted, tales como presentar una
demanda en corte, quitar parte de su sueldo, etc. Si alguna
ves no se cumpla con la obligación de pagar esta deuda,
se puede incluir esa información en la historia de credito
de usted.

Este aviso no es el contrato mismo en que se le scha a

usted la responsabilidad de la deuda.

© 2011 Greene & Allison LLP. All rights reserved.

VISA® and MasterCard® Credit Card Agreement
and Truth in Lending Disclosure

Interest Rate and Interest Charges

Annual Percentage
Rate (APR)
for Purchases

with No Rebate

9.25% VISA® Gold with No Rebate
9.75% VISA® Classic or MasterCard®
11.00% VISA® Gold with Rebate
11.50% VISA® Classic or MasterCard®
11.50% VISA® Student Card

with Rebate

with Rebate

APR for Balance
Transfers

APR for Cash
Advances

Same as above

Same as above

Penalty APR and
When It Applies

None

How To Avoid
Paying Interest

Your due date is at least 25 days after the
close of each billing cycle. We will not charge
you any interest on purchases if you pay your
entire balance by the due date each month.
We will begin charging interest on cash
advances and balance transfers on the
transaction date.

Minimum Interest
Charge

None

For Credit Card
Tips from the
Federal Reserve

To learn more about factors to consider
when apply for or using a credit card, visit
the web site of the Federal Reserve at
http://www.federalreserve.gov/creditcard

Fees

Annual Fees

None

Transaction Fees

• Balance Transfers
• Cash Advances
• Foreign
Transactions

Penalty Fees

• Late Payment
• Over-the-Credit

Limit
• Returned
Payment

None
$5.00
1% of each transaction in US dollars

Up to $20
Up to $20

Up to $20

M # 104376

Credit Cd Disclosure 2010.qxd:Layout 1  7/12/11  3:19 PM  Page 2

How We Will Calculate Your Balance: Average daily balance including new
purchases. See your account agreement for more details.

Billing Rights: Information on our rights to dispute transactions and how to
exercise those rights is provided in your account agreement.

Monthly Periodic
Rates:

VISA® Gold with No Rebate: 0.77%
VISA® Classic or MasterCard® with No Rebate: 0.81%
VISA® Gold with Rebate: 0.92%
VISA® Classic or MasterCard® with Rebate: 0.96%
VISA® Student Card with Rebate: 0.96%

The extension of credit to you under this Agreement will be subject to the following
terms. Parts in bold face meeting Truth in Lending disclosure requirements. Read
this entire Agreement and keep a copy for your records. “Applicant” refers to any
person who signs the Credit Application, will receive a VISA® or MasterCard® Credit
Card and will use the VISA® or MasterCard® Credit Card Account. A Credit Card
Account may have one or more Applicants. “Co-Signer” refers to a person who
signs a Credit Application and is responsible for all charges incurred using the
Credit Card Account but who will not be issued a Card and will not use the Account.
“SLFCU,” “we” and “us” refer to Sandia Laboratory Credit Union. “You” and “your”
refer to any Applicant and, if the context indicates, to any Co-Signer. “Account”
refers to the line of credit established under this Agreement. “Card” refers to the
credit card(s) issued under this Agreement. The singular implies the plural if there
is more than one Applicant or Co-Signer.

A. LOAN ADVANCES

1. You affirm that any Account established for you under this Agreement will be
used for personal, family or household purposes and not for business purposes.
2. If the Credit Union approves your application, each Applicant will be issued

a Card and will be able to use the Account.

3. To make a purchase or get a cash advance, you can present the Card to a
participating VISA / MasterCard plan merchant, to the Credit Union, or to another
financial institution, and sign the sales or cash advance draft imprinted with your
Card number. Keep sales and cash advance drafts to reconcile your monthly
statements. You can also make purchases by giving your Card number to a
merchant by telephone, over the Internet, or by other means, in which case your
only record of the transaction may be your monthly statement. You can also
access the Account to obtain cash advances at designated ATMs, subject to
additional ATM terms at the end of this Agreement, and to obtain cash advances
via CU@home online banking in the form of either a deposit of the advance
amount to an SLFCU account that you designate or a check payable to you and
mailed to you at the address we have for you in our records.

4. We may issue courtesy checks on this Account from time to time. Any
Applicant may sign a courtesy check payable to any person or entity that accepts
personal checks. When we pay the courtesy check, it will post to the Account as a
cash advance. There is no additional charge for printing or using courtesy checks
other than the cash advance fee, but if you request special handling, such as a
stop payment, we may charge you the same fee we would charge for the same
service on a regular SLFCU check (share draft). Fees for special handling of
checks are shown on the SLFCU Fee Schedule. If you do not wish to use courtesy
checks, destroy them. You agree to notify us immediately if courtesy checks issued
to you are lost or stolen and to report any unauthorized special checks that appear
on your Account statements. We operate in an automated check-processing
environment and in almost all cases we do not physically examine checks that
clear. You agree that we have the right but not the obligation to refuse to pay
courtesy checks that are not signed by an Applicant, and we will not be responsible
for any unauthorized courtesy checks if you fail to report them within 60 days after
we send you the first statement on which they appear. If you wish to stop payment
on a courtesy check, you must notify us before the check is presented to us for
payment, and you must provide the exact dollar amount and check number or we
may not be able to find it and stop it. We will not be responsible for failure to stop
courtesy check payments if you do not give us the exact information we require in
sufficient time (at least one business day prior to presentment) for us to act on your
request. Merchant dispute rights do not apply to courtesy checks, and if a courtesy
check clears, you must resolve any disputes directly with the payee.

5. This Account will be open-end or revolving. This means you can borrow the
full amount of the credit limit, repay the principal in full or in part, and borrow again
up to your credit limit as long as you remain creditworthy and a member of SLFCU
in good standing. To remain in good standing, you must meet all of your
obligations to SLFCU.

6. We have the right to refuse to allow you to use your Account for new trans-
actions. We will notify you in writing of the reason for any such denial of credit.
Reasons we can deny you credit include but are not limited to your already having
borrowed up to your credit limit, an adverse change in your credit standing, your
failure to meet loan- or account-related obligations to us, or our reasonable belief
that a requested transaction is illegal or unauthorized.

7. You are not permitted to use your Account for illegal transactions such as
illegal Internet gambling. We have the right but not the duty to refuse to authorize
a transaction if we reasonably believe it is illegal. Responsibility for deter-
mining the legality of transactions rests with you, not with us. You cannot use the
actual or alleged illegality of an authorized transaction on your Account as a
defense to your obligation to pay it.

8. You are not permitted to transfer one SLFCU credit card balance to
another SLFCU credit card Account, and you may not use advances on an SLFCU
Credit Card Account to pay other obligations you have to SLFCU.

B. REPAYMENT OBLIGATIONS

1. Each Applicant and Co-Signer is obligated to repay the Account under the

terms of this Agreement.

2. Each Applicant and Co-Signer is also obligated to repay any charges
resulting from the use of the Account by an Authorized User, regardless of whether
the Authorized User stays within the limits of permission given to use the Account.
We are not subject to agreements between you and Authorized Users limiting their
use of the Account. An Authorized User is any person to whom an Applicant or
Co-Signer has given actual, implied or apparent permission the Account.

3. Each Applicant and Co-Signer remains obligated to repay all obligations
incurred under this Agreement until we are notified in writing to close the Account
and all issued Cards are returned to us. Closing of the Account will not relieve
any Applicant or Co-Signer of payment obligations incurred prior to our receipt of
notice to close the Account.

5. Each Applicant and Co-Signer remains bound to repay all obligations
incurred under this Agreement, even though another person has been directed to
pay the debt by an agreement or court order to which we are not a party, such as
a divorce decree. Any release from the obligation to pay under this Agreement
must be either (a) in writing and signed by an authorized SLFCU employee or
(b) pursuant to a court order in an action to which SLFCU is a party.

6. Co-Signers, who do not have access to the Account but are liable to repay
it, acknowledge receipt of a copy of this Agreement as well as the separate Notice
to Co-Signer.

C. CREDIT REVIEW

We will set a credit limit on your Account and review your Account from time to
time. We may consider your credit history with third parties such as credit bureaus,
your history of meeting your obligations to SLFCU, and updated financial infor-
mation we request from you. Based on our review, we may increase or decrease
your credit limit, increase or decrease your interest rate, or close your Account.
We will give you notice required by law if we make changes adverse to you. You
can request a credit limit increase by submitting a written application to us.
All Credit Cards issued or re-issued are subject to approval. If your Account has
been inactive for six consecutive months, it may not be automatically renewed.

D. REPAYMENT TERMS

1. You promise to pay SLFCU or order (a) at one of our offices or (b) by mail-
ing payment to us at the address designated on your billing statement, all sums
advanced to you under this Agreement at any time plus interest and other fees and
charges incurred under this Agreement. The Finance Charge is the amount of
money you pay for the money you borrow. The interest component of the
Finance Charge is based on an Annual Percentage Rate.

2. Grace Period on Purchases: If you paid your previous statement’s
balance in full before its due date, or you had no previous balance at the
beginning of the billing cycle, you will have a grace period of 25 days on
average to pay your purchase balance without interest finance charges. If you
do not pay your balance in full before the end of the grace period, interest will
be assessed on your entire outstanding balance including new purchases

3. The interest rate on your Account will depend on which credit card you
request and will be established when we open your Account. The ANNUAL
PERCENTAGE RATE and Monthly Periodic Rate for our Credit Card Account
programs are shown at the top of this Agreement. You will receive a sepa-
rate written notice before you become obligated informing you of the type
of Credit Card Account we have opened for you and your credit limit. Rates

applicable to your Account will also be disclosed to you on periodic
statements we will send you.

4. We have the right to change the interest rate applicable to your
Account for any lawful reason, including but not limited to our review of
your Account (see Section C of this Agreement) by giving you notice
required by law. Any increased interest rate will apply only to transac-
tions initiated at least 14 days after we send you the notice

5. Your minimum monthly payment will be the greater of 3% of the
current monthly balance or $20, plus any over-limit or delinquent
amounts. If your balance is less than $20, you must pay it in full.

6. Calculation of Finance Charges: Average Daily Balance Method.
Interest is calculated separately for purchase balances and cash advance
balances. We arrive at the interest portion of the Finance Charge for each
balance type by first calculating the average daily Account balance for
the statement period. To obtain the daily Account balances of purchases,
we add any new purchases to the previous day’s purchase balance, then
subtract any payments or other credits applied to the purchase balance.
To obtain the daily Account balances of cash advances, we add any new
cash advances to the previous day’s cash advance balance, then sub-
tract any payments or other credits applied to the cash advance balance.
We then total the daily balances for the statement period and divide by
the number of days in the period to get the Average Daily Balance. This
figure is multiplied by the Monthly Periodic Rate (1/12 of the APR) to
obtain the interest component of the Finance Charge.

7. We will apply payments on your Account first to fees such as late
fees, then to interest, then to principal. If your payment exceeds the
required minimum, any excess will be applied to higher rate balances
before it is applied to lower rate balances. If purchase and cash advance
balances bear interest at the same rate, payments are applied first to
previously billed purchases, then to previously billed cash advances,
then to current cash advances, then to current purchases.

8. You can repay the balance you owe, including accrued finance

charges, in full at any time without a prepayment penalty.

9. Increases in the outstanding balance increase the required

minimum payment, which will be reflected in the monthly statement.

10. We will send you periodic statements of your Account which will advise

you of the status of your Account and any information required by law.

11. You will make monthly payments on or before the due date specific

in your periodic statements.

12.

If at any time your current unpaid Account balance exceeds your
authorized credit limit, you must, upon our written demand, immediately make
a single lump-sum payment to reduce your balance to an amount within the
authorized credit limit.

13. Foreign Transactions: For VISA® 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. For MasterCard® transactions initiated in foreign currencies,
the exchange rate will be a either a government-mandated exchange rate or
a wholesale exchange rate selected by MasterCard® International on the day
they process the transaction, which may differ from the rate that applied on
the day the transaction took place or the day the transaction posted to your
account. For both VISA® and MasterCard®, if a transaction is initiated in a
foreign country or foreign currency, a fee of 1% of the transaction
amount in US dollars will be assessed.

14. Payments in Foreign Currency. You agree to make all payments to us
in U.S. Dollars using payment instruments drawn on U.S. financial institutions.
We may, at our option, accept payments in foreign currency or checks drawn
on non-U.S. banks. If we do, we may impose service and collection charges,
and you agree the charges we set will be final.

15. Payment Holds. We will promptly credit your payments as required by
law. We may, however, delay for the maximum time allowed by law increasing
your available credit or refunding credit balances until final collection of non-
cash items presented to pay your Account. A delay in increasing your available
credit or issuing a refund will not by itself result in increased finance charges,
but if an item presented for payment on your Account is returned unpaid,
we can assess finance charges retroactive to the date the payment was
credited.

16. Special Considerations Regarding Merchant Transactions

16.1 If you made a purchase and the merchant discloses a policy such
as “no returns,” “no refunds,” “no credit without receipt, “as is,” “store credit
only,” or “all sales final,” you agree to be bound by that merchant’s policy.
16.2 When you use your Account to make travel or lodging reserva-
tions, you agree to request the merchant’s cancellation policy and follow it
if you cancel. Otherwise, the merchant may charge you unless you can
provide us with the cancellation code the merchant is required to give you.
16.3 If you authorize a merchant to charge your Account for repeat
transactions without your Credit Card, you will notify the merchant when
you want to discontinue the repeat transactions or if your Account is closed.
16.4 If you disagree with a transaction on your statement, you agree
to provide any information or assistance we reasonably request. Other-
wise you will pay us for any loss we incur, subject only to any limits
imposed by law.

16.5 A merchant, such as hotel or rental car agency, may place a
“hold” on your Account for anticipated charges. This may result in your
credit limit being unavailable for the duration of the merchant hold, and as
a result, other transactions may be declined due to lack of available credit.
17. You must maintain a regular share account with SLFCU with the
required minimum balance at all times you have an outstanding balance on
your Account, even if the Account is closed to new transactions.

account(s) will be shown on a separate security agreement. You will not
be able to withdraw funds as long as the pledge is in effect. If you
default in your payment obligations under this Agreement, we can apply
the shares specifically pledged to pay off this Account in full or in part.
5. Cross-Collateral: Property you have pledged to secure other
obligations to SLFCU, other than real property and household goods,
may also secure this Account if you agree in writing.

6. Security interests described in this Section G apply even if credit

is otherwise described as “signature” or “unsecured.”

H. CHANGES IN TERMS

We may change your Account terms, including the Annual Percentage
Rate, by giving you advance written notice required by law. A “change”
can amend an existing term, add a new term, or a delete an old term.
If you do not want the changes to apply to your Account, you can cut all
issued Cards in half and send them to us with a written request to close
the Account. If you do that, you must pay off any outstanding balance
under the old terms and interest rate. If you keep your Card, the new
terms and new interest rate will apply to all transactions on the account
that occur 14 or more days after we send you the Change in Terms
notice, and the old Annual Percentage Rate will apply to purchase and
cash advance transactions that took place prior to the date 14 days after
we sent you the notice.

E. OTHER CHARGES

You will pay the following fees in connection with breach of your

I. HONEST DEALING

obligations or services you request:

Returned Payment Instrument . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.00 each
Account Research . . . . . . . . . . . . . . . . . . . . . $20.00 per hour, $5.00 minimum,
waived if credit union error is revealed

Late Payment. . . . . . . . $20.00 if the payment is received one or more days late
Over-the-Credit-Limit. . . . . . . . . . . . . . . . . . . . . . . $20.00 if you opt-in allowing
your credit limit to be exceeded

Plastic Card Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00 each
Cash Advance Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00 each
Statement Copy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.00 per page

You will also pay direct costs that the Credit Union incurs for complying
with your special service requests, such as delivery fees for overnight
shipment of replacement plastic cards.

F. REBATES

If you charge goods or services on your Account in any calendar year, a
credit (rebate) equal to 0.5% (VISA Classic Rebate Card, MasterCard
Rebate Card, VISA Student Rebate Card) or 0.75% (VISA Gold Card) of
all purchases during the year will be paid to you annually. The rebate will
be paid in the form of a credit to your Account. We reserve the right to
revoke rebates if you use your card for business purpose transactions or
transactions we reasonably determine to be illegal.

G. SECURITY INTERESTS

1.

In consideration for and as a condition of SLFCU issuing a credit
card to you, you agree that if you do not make your required payments,
we can take any SLFCU shares in which you have an interest (unless
prohibited by law or the share agreement) to recover all or part of what
you owe without advance notice to you. “Shares” includes share
(savings), money market, share draft (checking), and certificate accounts.
IRAs and other accounts subject to preferential tax treatment are not
included.

2. This consent does not restrict your right to withdraw funds prior
to your default and our exercise of our rights consistent with this consent,
and is not a pledge by you of any shares.

3. Our exercise of our rights under this consent will not be an election

of remedies.

4. Specific Account Pledge: You may be allowed or required to pledge
specific SLFCU shares as security for the repayment of all credit extended
to you under this Agreement. The dollar amount pledged and the share

You agree to promptly notify us of any information that affects your
credit-worthiness or ability to pay, including but not limited to changes in
your name, address or employment. You agree not to use your Account
for new transactions if you have reason to believe you will be unable to
pay what you owe.

J. ADDITIONAL TERMS APPLICABLE TO CO-SIGNERS

AND CO-APPLICANTS
As a Co-Signer or Co-Applicant, you understand and agree that you
are obligated to repay any credit extended under this Agreement up to
the credit limit, whether or not you get the money borrowed or the
property purchased or otherwise benefit from the extension of credit.
You understand that if you had not agreed to be obligated to repay the
credit extended, we would not have approved the credit application.
We can proceed against you if payments are delinquent even before
seeking to recover from any other applicant or co-signer. We will give
you notice required by law of any action we take that could adversely
affect you. We will tell you of any delinquency for which we intend to
hold you accountable. No extension or partial settlement with any other
obligor on the Account will waive our rights against you as a co-signer
or co-applicant. You can stop being obligated for future transactions by
writing to us to that effect, but will remain obligated to pay any amounts
borrowed prior to our receipt of your notice.

K. DEFAULT—LIEN—ACCELERATION

1.

If you fail to make your agreed payment within 10 days after the
due date, you authorize us to apply any SLFCU shares in which you
have an interest (unless prohibited by law or the share agreement) to
pay off, in full or in part, the outstanding balance on your Account.
Unless your Account is secured by a pledge of specific shares this
consent (a) will not restrict your right to withdraw funds prior to our
exercise of our rights under this consent and (b) does not constitute a
pledge of any share account. Our exercise of our rights under this
consent is not an election of remedies.

2. If you default on your Account payments, otherwise breach this
Agreement, become a bankruptcy debtor, die, or breach any other
agreement you have with us, we may without notice declare the entire
unpaid balance of your Account immediately due and payable in full.
Interest will continue to accrue on your Account at the rate called for in
this Agreement even after your default and acceleration of the obligation.

L. COLLECTION COSTS

You agree to pay all reasonable collection costs we incur before we
take legal action against you. If we take legal action against you to