Visa® SECURED CREDIT CARD AGREEMENT

In this Agreement, the words “you” and “your” mean each and all of those who have applied for the Card, signed 

the Card, used the Card or authorized someone else to use the Card. “Card” means the Visa card and any dupli-

cates and renewals we issue. Account means your Visa card Line of Credit Account with us. “We,” “us” and “ours” 

mean MAX Credit Union. If you do not agree to the terms and conditions of this Agreement, you must not use any 

Card issued to you and you must cut all Cards issued to you in half and return them to us.

1. Responsibility. If we issue you a Card, you agree to repay all debts and the FINANCE CHARGE arising 
from the use of the Card and the Account. For example, you are responsible for charges made by yourself, your 

spouse and minor children. You also agree to be responsible for charges made by anyone else to whom you give the 

Card, and this responsibility continues until the Card is recovered. You cannot disclaim responsibility by notifying 

us, but we will close the Account for new transactions if you so request and if you return all Cards. Your obligation 

to pay the Account balance continues even though an agreement, divorce decree or other court judgment to which 

we are not a party may direct you or one of the other persons responsible to pay the Account. Any person using 

the Card is jointly responsible with you for charges he or she makes, but if that person signs the Card, he or she 

becomes a party to this Agreement and is also jointly responsible for all charges on the Account, including yours. 

You agree the Card may not be used for any illegal or unlawful activity or transactions, including but not limited 

to, illegal gambling.

2. Lost Card Notification. If you believe the Card has been lost or stolen, you will immediately call us at 
1-800-449-7728.

3. Liability for Unauthorized Use.  You may be liable for the unauthorized use of your Card. You will not 
be liable for unauthorized use that occurs after you notify the Credit Union, orally or in writing, of the loss, theft, 

or possible unauthorized use. In any case, your liability will not exceed $50.00. If you tell the Credit Union after 

learning of the loss or theft of the Card your liability for unauthorized transactions using the Visa system is zero. For 

ATM transactions, card transactions through a non-Visa network, Visa Commercial cards, Visa or Plus* ATM or any 

ATM transactions, or cards issued outside the United States, if you tell the Credit Union within two (2) days after 

learning of the loss or theft of the Card, your liability for unauthorized transactions is $50.00 and $500 if you do not 

tell the Credit Union within two (2) business days and if you do not tell us within sixty (60) days after the statement 

was mailed, you may not get back any money you lost if we can prove that we could have stopped someone from 

taking the money had you told us in time. We may require you to provide a written statement regarding claims of 

unauthorized transactions. If we determine that you have been grossly negligent or fraudulent in the handling of 

your account or Card, your liability may increase. These rules do not apply to other electronic transfers.

4. Credit Line. If we approve your application, we will establish a self-replenishing Line of Credit for you and 
notify you of its amount when we issue the Card. You agree not to let the Account balance exceed this approved 

Credit Line. Each payment you make on the Account will restore your Credit Line by the amount of the payment 

which is applied to principal. You may request an increase in your Credit Line by written application to us, or by 

telephone at 334-260-2600 or 1-800-776-6776, which must be approved by a loan officer. By giving you written 

notice, we may reduce your Credit Line from time to time or, with good cause, revoke your Card and terminate this 

Agreement. Good cause includes your failure to comply with this Agreement or our adverse reevaluation of your 

8. Variable Rate.   Your account is subject to a Variable  Rate which is based  on the highest Prime Rate as 
published in the Money Rates section of the Wall Street Journal (“Index”) in effect five days before the last busi-

ness day of each month (the Determination Date), plus our Margin. The Index plus the Margin equals the Interest 

Rate. Changes in the Index will cause changes in the Interest Rate and will take effect as of the first day of the 

next statement cycle. Increases or decreases in the Interest Rate will result in like increases or decreases in the  
FINANCE CHARGE, and will affect the amount of the regularly scheduled payments that you will be required to 
make. There is no limit to the amount by which the ANNUAL PERCENTAGE RATE can change during any statement 

cycle other than the maximum and minimum ANNUAL PERCENTAGE RATES. The minimum ANNUAL PERCENTAGE 

RATE that can apply is 6%, and the maximum ANNUAL PERCENTAGE RATE is 18%.

9. Default. You will be in default if you fail to make any Minimum Payment when due. You will also be in default 
if (a) your ability to repay us is materially reduced by a change in your employment, an increase in your obligations, 

bankruptcy or insolvency proceedings involving you, your death or your failure to abide by this Agreement, (b) 

you break any promise you have made to us under this Agreement or any other agreement you have with us, (c) 

any statement you have made in this Agreement, in connection with this Agreement or in connection with any 

other Agreement you have with us is not true, or (d) we should otherwise feel insecure in receiving payment of the 

Account balance for whatever reason. If you are in default, we have the right to demand immediate payment of your 

full Account Balance at once without notice to you. In the event of a default, you agree to pay all costs of collecting 

the amount you owe under this agreement including, if the unpaid balance under this plan is greater than Three 

Hundred Dollars ($300.00) at the time of collection, reasonable attorney fees if the debt is referred for collection 

to an attorney who is not our employee and if suit is filed, court costs.

10. Using the Card. You may use your Visa card at millions of locations worldwide. In addition, you may obtain 
cash advances from the Credit Union, from other financial institutions participating in the Visa program and from 

automated teller machines (ATMs), such as a Visa ATM Network, which provide access to the Visa system. (Not all 

ATMs provide such access.) You will need to use your Personal Identification Number (PIN) to obtain a cash advance 

from an ATM. The monthly statement will identify the merchant, electronic terminal or financial institution at which 

transactions were made, but sales, cash advances, credit or other slips cannot be returned with the statement. You 

will retain the copy of such slips furnished at the time of the transaction in order to verify the monthly statement. 

We may make a reasonable charge for photocopies of slips you request.

11. Returns and Adjustments. Merchants and others who honor the Card may give credit for returns or 
adjustments, and they will do so by sending us a credit slip which we will post to your Account. If your credits and 

payments exceed what you owe us, we will hold and apply this credit balance against future purchases and cash 

advances, or if it is $1 or more, refund it on your written request.

12.  Foreign  Transactions.  Payments,  purchases  and  cash  advances  made  in  foreign  currencies  will  be 
charged to your account in U.S. dollars. The exchange rate between the transaction currency and the billing cur-

rency used for processing international transactions is a rate selected by Visa from the range of rates available in 

wholesale currency markets for the applicable central processing date, which the rate may vary from the rate Visa 

itself receives, or the government mandated rate in effect for the applicable central processing date, plus the 1% 

credit worthiness. You may also terminate this Agreement at any time, but termination by either you or us does 

International Transaction Fee.

not affect your obligation to pay the Account balance. The Cards remain our property, and you must recover and 

surrender to us all Cards upon our request and upon termination of this Agreement.

5. Credit Information. You authorize us to investigate your credit standing when opening, renewing or re-
viewing your Account, and you authorize us to disclose information regarding your Account to credit bureaus and 

other creditors who inquire of us about your credit standing.

6. Monthly Payment. We will mail you a statement every month showing your Previous Balance of purchases 
and cash advances, the current transactions on your account, the remaining credit available under your Credit Line, 
the  New  Balances  of  purchases  and  cash  advances,  the  Total  New  Balance,  the FINANCE CHARGE  due  to 
date, any other billed fees, and the Minimum Payment required. Every month you must pay at least the Minimum 

Payment within 25 days of your statement closing date. You may, of course, pay more frequently, pay more than the 
Minimum Payment, or pay the Total New Balance in full, and you will reduce the FINANCE CHARGE by doing 
so. The Minimum Payment will be either (a) 3.00% of your Total New Balance, or $10.00, whichever is greater, or 

(b) your Total New Balance, if it is less than $10.00, plus (c) any portion of the Minimum Payment(s) shown on prior 

statement(s) which remains unpaid. In addition, at any time your total New Balance exceeds your Credit Line, you 

must immediately pay the excess upon our demand. We will apply your payments first to the previously billed and 
unpaid FINANCE CHARGE on cash advances; then to the previously billed and unpaid FINANCE CHARGE 
on purchases; then to any late charge outstanding and/or any over the limit charge outstanding, if applicable: then 

the remainder of the payment will be prorated and applied to the cash advance and purchases’ outstanding bal-

ances. If a payment is ever late ten days or more, you will be charged a late charge equal to 5.00% of the amount 

of the scheduled payment in default, with a minimum charge of $.50 and a maximum charge of $25.00. You agree 

a fee of up to $30.00 will be added to your card balance, and such a fee will be treated as a purchase including  
FINANCE CHARGES, if a check to pay all or part of the card balance is returned unpaid.

7.  FINANCE  CHARGE.  If  you  have  a  zero  purchase  balance  at  the  beginning  of  a  statement  cycle,  you 
can avoid a FINANCE CHARGE  on purchases billed during the cycle by paying the full amount of the New 
Balance  of  Purchases  within  25  days  of  your  statement  closing  date.  Otherwise,  purchases  will  be  subject  to  a  
FINANCE CHARGE from the date they are posted to your account. Cash advances are always subject to a 
FINANCE CHARGE from the transaction date. The FINANCE CHARGE (interest) is calculated at the peri-
odic rate and ANNUAL PERCENTAGE RATE disclosed to you on the average daily principal balances of purchases and 
cash advances in the Account. Separate FINANCE CHARGES for purchases and cash advances are determined 
by multiplying the periodic rate by the separate average daily balance for purchases and cash advances. Each aver-

age daily balance is determined by taking the beginning balance (of cash advances and purchases) in your account 

each day, adding any new purchases or cash advances (whichever is applicable) and subtracting any payments or 

credit. The results are the daily balances. The daily balances are totaled, and divided by the number of days in the 

statement period to produce separate average daily principal balances for purchases and cash advances to which 

the periodic rate is then applied.

13. Plan Merchant Disputes. We are not responsible for the refusal of any plan merchant or financial in-
stitution to honor your Card. We are subject to claim and defenses (other than tort claims) arising out of goods or 

services you purchase with the Card 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, or (b) your purchase cost more than $50 and was made from a plan merchant in 

your state or within 100 miles of your home. Any other disputes you must resolve directly with the plan merchant.

14. Security Interest. To secure your Account, you grant us a purchase money security interest under the 
Uniform Commercial Code in any goods you purchase through use of the Card. If you default, we will have the right 

to recover any of these goods which have not been paid for through our application of your payments in the manner 

described in Paragraph 6.

15. Security Agreement. The payment of the Credit Card Account shall be secured by all of my Credit Union 
accounts, shares and certificates (excluding Individual Retirement Accounts) I now have or hereafter may have 

including all accounts I have a right to withdraw from or an ownership interest in. I am giving this interest to secure 

repayment of my credit card account as well as any other amounts I now owe or will owe the Credit Union. I am 

giving the Credit Union a security interest in all present and future shares in my account I have with the Credit Union 

or in which I have an interest. I authorize the Credit Union to take those funds, shares or certificates and apply it to 

my debt if I am in default. The Credit Union may, solely at its option, allow me to withdraw a portion of my shares 

without affecting its security interest. Withdrawals may not be allowed if it will reduce the amount of my shares in 

the Credit Union below the amount of my debt. I am not giving a security interest in an IRA, SEP, KEOUGH, or any 

other account which, if pledged, would result in the loss of special tax treatment under the Internal Revenue Code.

16. Effect of Agreement. This Agreement is the contract which applies to all transactions on your Account 
even though the sales, cash advances, credit or other slips you sign or receive may contain different terms. We 

may amend this Agreement from time to time by sending you any advance written notice required by law. Any 

amendment to this Agreement will take effect on the day it is mailed unless advance notice is required by law. Your 

use of the Card thereafter will indicate your agreement to the amendments. To the extent the law permits, and we 

indicate in our notice, amendments will apply to your existing Account balance as well as to future transactions.

17. Governing Law. The terms and conditions of this Agreement are governed by and construed in accordance 
with the laws of the State of Alabama and any applicable Federal law.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 06/2016

MAX CREDIT CARD APPLICATION 1 of 3

Visa® SECURED CREDIT CARD AGREEMENT

18. Delay in Enforcement. No delay in enforcement of our rights under this agreement will result in any loss 
of our rights or relieve you of any of your obligation.

19. Invalidity of Provisions and Captions. If any provision of this agreement is deemed invalid the rest 
of this Agreement will remain in full force and effect. The paragraph headings are for convenience only and do not 

form a part of this Agreement.

20. Designated/Pledged Share Account. You agree to maintain a Designated Credit Union Share Ac-
count with a minimum balance equal to the credit limit established for your account. You understand and agree 

that shares pledged as security will earn dividends at the rate for similar accounts. You pledge under the Uniform 

Commercial Code, the Share Account listed on MAX Credit Union’s Secured Visa Platinum Credit Card Applica-

tion to the credit union as security for any balance owed on your account. If you request a higher limit in the 

future, you understand and agree that you will be required to deposit additional funds into the Share Account 

equal to the amount of the increase you requested, and the credit union will hold this amount, in addition to the 

amount already held in the Share Account. You understand and agree the pledged funds will not be accessible for 

withdrawal, and you agree not to withdraw or attempt to withdraw pledged funds until the credit card account 

has been closed and any cards issued have been returned to MAX Credit Union. You understand and agree that 

pledged funds may be held for up to 30 days after you close your credit card account. You understand and agree 

that if you dispute any charges owed to the credit union, you will not rescind this agreement until such disputes 

are resolved. You understand and agree that the credit union may transfer pledged funds from the Share Account 

at any time if this account is delinquent, inactive, or if we suspend or terminate your credit privileges. Upon any 

of these occurrences, the Share Account and the credit card account will be closed. Any remaining funds in the 

pledged Share Account will be transferred to you primary Share Account, or otherwise paid to you via check, cash 

or any other method at our option.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 06/2016

MAX CREDIT CARD APPLICATION 2 of 3

Visa® SECURED CREDIT CARD BILLING RIGHTS

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  LOAN  ACCOUNT 
STATEMENT.  If you think your statement is wrong, or if you need more information about 
a transaction on your statement, write us on a separate sheet at the address listed on your 
statement. 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 
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. •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 loan account 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 
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 send statements to 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.

f 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 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 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 ten days telling us that you 
still refuse to pay, we must tell anyone we report 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 don’t follow these rules, we can’t 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 
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 service. There are two limitations on this right: (a) You must have made 
the purchase in your home state or, if not within your home state, 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 the credit card issuer owns or operates the merchant, or mailed 
you the advertisement for property or services.

INTEREST RATES AND INTEREST CHARGES

ANNUAL PERCENTAGE RATE (APR)
for Purchases, Balance Transfers and Cash 
Advances

Your APR will be 6.00% to 18.00%.

Variable Rate Information

How to Avoid Paying Interest on Purchases

Your APR will vary in relation to an index plus a margin of 6.00%. 
The index will be the Prime Rate (rounded to the nearest 1/4 of 
1%) and is the highest rate published in the money section of the 
Wall Street Journal.

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 balance transfers and cash advances on the 
transaction date.

Minimum Interest Charge

None

For Credit Card Tips from the
Consumer Financial Protection Bureau

To learn more about factors to consider when applying for or us-
ing a credit card, visit the website of the Consumer Financial Pro-
tection Bureau at http://www.consumerfinance.gov/learnmore

Annual Fee

Transaction Fees
•  Balance Transfer
•  Cash Advance
•  Foreign Transaction

Penalty Fees
•  Late Payment

•  Over the Credit Limit
•  Returned Payment

FEES

None

None
None
1% International Transaction Fee

5% of the amount of the scheduled payment in default, with a 
minimum charge of $0.50 and a maximum charge of $25.00 
None
Up to $30.00

How We Will Calculate Your Balance: We use a method called “Average Daily Balance (including new purchases)”. See your account agreement for more details.

©2016 MAX. Federally insured by NCUA. For qualified borrowers. Certain restrictions apply. Secured Credit Card 06/2016

MAX CREDIT CARD APPLICATION 3 of 3