This is an example of terms that were available to recent applicants as of 3/31/16. They may not be available now. If you apply, your terms will be based on the terms of the offer when you apply. This Pricing 
Schedule is part of the Cardmember Agreement.

PRICING SCHEDULE

Interest Rates and Interest Charges

Annual Percentage Rate (APR) for Purchases

23.24%. This APR will vary with the market based on the Prime Rate.1

APR for Balance Transfers

23.24%. This APR will vary with the market based on the Prime Rate.1

APR for Cash Advances

25.24%. This APR will vary with the market based on the Prime Rate.1

Penalty APR and When It Applies

None

Paying Interest

Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that 
begin in February). 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 as of the later of the 
transaction date or the first day of the billing period in which the transaction posted to your Account.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $2.00.

Fees

Annual Fee 

None 

Balance Transfer Fee

3% of the amount of each transfer.

Cash Advance Fee

Either $10 or 5% of the amount of each cash advance, whichever is greater.

Late Fee 

None the first time you pay late. After that, up to $35.

Returned Payment Fee

Up to $35.

How We Will Calculate Your Balance: We will use a method called “daily balance (including current transactions)”. See the Cardmember Agreement for details.

1  The purchase and balance transfer APR is equal to the Prime Rate plus a margin of 19.74%.
The Cash Advance APR is equal to the Prime Rate plus a margin of 21.74%.

©2016 Discover Bank, Member FDIC 
CMANPRDI33116 

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CARDMEMBER AGREEMENT

Thank you for choosing Discover® card. This Agreement explains the current terms and conditions of your Account. The enclosed Pricing Schedule is part of this Agreement. Please read this Agreement, including 
the Pricing Schedule, carefully. Keep them for your records. Contact us if you have any questions. We have included a “Definitions” section for your reference on page 4.

ACCEPTANCE OF AGREEMENT

You accept this Agreement if you do not cancel your Account within 30 days after receiving a Card. You also accept this Agreement if you or an Authorized User use the    
Account. You may, however, reject the “Arbitration of Disputes” section as explained in that section.

CHANGES TO YOUR AGREEMENT

The rates, fees and terms of this Agreement may change from time to time. We may add or delete any term to this Agreement. If required by law, we will give you  
advance written notice of the change(s) and a right to reject the change(s). We will not charge any fee or interest charge prohibited by law.

USING YOUR ACCOUNT

Permitted Uses 

Authorized Users 

Joint Accounts  

Checks 

Credit Authorizations 

Credit Lines 

You may use your Account for Purchases, Balance Transfers and Cash Advances. You may not use it for illegal transactions.

You may request additional Cards for Authorized Users. You must notify us if you wish to cancel the authority of an Authorized User to use your Account.

 If your Account is a joint Account 
• each of you agrees to be liable individually and jointly for the entire amount owed on the Account; and 
• any notice we mail to an address provided by either of you for the Account will serve as notice to both of you.

 If we provide you with Checks, we will tell you whether we will treat the Check as a Purchase, Balance Transfer or Cash Advance. You may not use these Checks to pay 
any amount you owe us.

 We may not authorize a transaction for security or other reasons. We will not be liable to you if we decline to authorize a transaction or if anyone refuses your Card, 
Check or Account number.

We  will  tell  you  what  your  Account  credit  line  is.  You  must  keep  your  Account 
balance below your Account credit line. If you do not, we may request immediate 
payment of the amount by which you exceed it. We may establish a lower credit line 

for Cash Advances. We may increase or decrease your Account credit line or your 
Cash Advance credit line without notice. We may delay increasing your available 
credit by the amount of any payment that we receive for up to 10 business days.

FEES (See your Pricing Schedule for Additional Fees)

Late Fee

Returned Payment Fee

 We will not charge a Late Fee the first time you do not make the Minimum Payment 
Due by the Payment Due Date.  After that, if you do not pay the Minimum Payment 
Due by the Payment Due Date, we will charge you a Late Fee.  The fee is $25 if you 

were not charged a Late Fee during any of the prior six billing periods.  Otherwise, 
the fee is $35.  This fee will never exceed the Minimum Payment Due that was due 
immediately prior to the date on which the fee was assessed.

If you make a payment that is not honored by your financial institution, we will 
charge you a Returned Payment Fee even if the payment is honored after we re-
submit it. The fee is $25 if you were not charged a Returned Payment Fee during 

any of the prior six billing periods. Otherwise, the fee is $35. This fee will never 
exceed the Minimum Payment Due that was due immediately prior to the date on 
which the payment was returned to us.

Returned Check Fee

 We will charge you a Returned Check Fee each time we decline to honor a Check. 
The fee is $25 if you were not charged a Returned Check Fee during any of the prior 

six billing periods. Otherwise, the fee is $35. This fee will never exceed the amount 
of the Check.

ANNUAL PERCENTAGE RATES (“APRs”) (See your Pricing Schedule for the APRs that apply to your Account)

Variable APRs

 Your Pricing Schedule may include variable APRs. These APRs are determined by 
adding the number of percentage points that we specify to the Prime Rate. Variable 
APRs  will  increase  or  decrease  when  the  Prime  Rate  changes.  The  APR  change 

will take effect on the first day of the billing period that begins during the same 
calendar month that the Prime Rate changes. An increase in the APR will increase 
your interest charges and may increase your Minimum Payment Due. 

Penalty APR

None

MAKING PAYMENTS

Payment Instructions

•  You must pay us in U.S. dollars. All checks must be drawn on funds on deposit 

in the U.S.

•  You must pay us for all amounts due on your Account. This includes charges made 

“ payment in full” or with any other restrictive endorsement without
  losing any of our rights under this Agreement.
•  We  credit  your  payments  in  accordance  with  the  terms  contained  on  your  

by Authorized Users.

billing statement.

•  We may refuse to accept a payment in a foreign currency. If we do accept it,  

we will charge your Account our cost to convert it to U.S. dollars.

•  We can accept late payments, partial payments or payments marked

•  If you mail your payment to an address other than the address designated on your 
billing statement, there may be a delay in processing and crediting the payment 
to your Account.

Minimum Payment Due

You may pay the entire New Balance shown on your billing statement at any time. Each 
billing period you must pay at least the Minimum Payment Due by the Payment Due Date 
shown on your billing statement. The Minimum Payment Due will be the greater of: 
•  $20; or
•    Any amount past due plus the greater of:
   –  3% of the New Balance shown on your billing statement (excluding any Interest  

Charges and Late Fee shown on your billing statement); or

   – $15, plus any of the following charges as shown on your billing statement: 
fees for any debt protection product that you enrolled in on or after 2/1/2015; 
Interest Charges; and Late Fees (not to exceed 4% of the New Balance).
The Minimum Payment Due may also include amounts by which you exceed your 
Account credit line. It will never exceed the New Balance. When we calculate the 
Minimum Payment Due, we may subtract from the New Balance certain fees added 
to your Account during the billing period. The Minimum Payment Due is rounded 
up to the nearest dollar. 

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MAKING PAYMENTS

How We Apply Payments

INTEREST CHARGES

How We Calculate Interest 
Charges—Daily Balance 
Method (including current 
transactions) 

Paying Interest

 We  apply  payments  and  credits  at  our  discretion,  including  in  a  manner  most 
favorable or convenient for us. In all cases, we will apply payments and credits as 
required by applicable law. 

Each  billing  period,  we  will  generally  apply  amounts  you  pay  that  exceed  the 
Minimum Payment Due to balances with higher APRs before balances with lower 
APRs as of the date we credit your payment.

 We calculate interest charges each billing period by first figuring the “daily balance” 
for each Transaction Category. Transaction Categories include standard Purchases, 
standard Cash Advances and different promotional balances, such as Balance Transfers.
How We Figure the Daily Balance for Each Transaction Category
•  We start with the beginning balance for each day. The beginning balance for the    
first day of the billing period is your balance on the last day of your previous billing period.
•  We add any interest charges accrued on the previous day’s daily balance and any 
new transactions and fees. We add any new transactions or fees as of the later of 
the Transaction Date or the first day of the billing period in which the transaction or 
fee posted to your Account.

• We subtract any new credits and payments.
•  We make other adjustments (including those adjustments required in the “Paying 

Interest” section).

 When Interest Charges Begin 
We begin to impose interest charges on a transaction, fee or interest charge from 
the day we add it to the daily balance. We continue to impose interest charges 
until you pay the total amount you owe us. You can avoid paying interest on 
Purchases as described below. However, you cannot avoid paying interest on 
Balance Transfers or Cash Advances.
 How to Avoid Paying Interest on Purchases (“Grace Period”) 
If you paid the New Balance on your previous billing statement by the Payment Due 

How We Figure Your Total Interest Charges
•  We multiply the daily balance for each Transaction Category by its daily periodic 
rate. We do this for each day in the billing period. This gives us the interest charges  
for each Transaction Category. To get a daily periodic rate, we divide the APR that 
applies to the Transaction Category by 365.

•  We add up all the daily interest charges. The sum is the total interest charge for 

the billing period.
How We Include Fees
 We  add  Balance  Transfer  Fees  to  the  applicable  Balance  Transfer  Transaction 
Category. We add Cash Advance Fees to the applicable Cash Advance Transaction 
Category. We add all other fees to the standard Purchase Transaction Category.

Date shown on that billing statement, we will not impose interest charges on new 
Purchases, or any portion of a new Purchase, paid by the Payment Due Date on 
your current billing statement. New Purchases are Purchases that first appear on 
the current billing statement.
 How We Apply Payments May Impact Your Grace Period 
If you do not pay your New Balance in full each month, then, depending on the balance 
to which we apply your payment, you may not get a grace period on new Purchases.

OTHER IMPORTANT INFORMATION

Default

Collection Costs

Merchant Disputes

Automatic Billing  
Arrangements

Our Privacy Policy

Reporting to Credit  
Reporting Agencies

Our Communications  
with You

Unauthorized Use

Cancellation of 
Your Account

You are in default if:
•  you file bankruptcy or another insolvency proceeding is filed by you or against you;
•   we  have  a  reasonable  belief  that  you  are  unable  or  unwilling  to  repay  your 

obligations to us;

•  you die or are legally declared incompetent or incapacitated; 

•   you fail to comply with the terms of this Agreement or any Agreement with us or 
an Affiliate, including failing to make a required payment when due, exceeding 
your Account credit line or using your Card or Account for an illegal transaction.
If you are in default, we may declare the entire balance of your Account immediately 
due and payable without notice.

If we use an attorney to collect your Account, we may charge you our legal costs as permitted by law. These include reasonable attorneys’ fees, court or other collection costs, 
and fees and costs of any appeal.  

If you have a dispute with a merchant, you may request a credit to your Account. If we resolve the dispute in your favor, we will issue a credit to your Account. You assign to us 
your claim for the credited amount against the merchant and/or any third party. At our request, you agree to provide this assignment in writing.

You may set up automatic billing with a merchant. If your Account number or Card expiration date changes, you authorize us to provide this updated information to any such 
merchant at our discretion. You must contact the merchant directly if you wish to stop automatic billing.

We send you our Privacy Policy when you open your Account and annually. 
Contact us or visit Discover.com if you would like a copy. Please read it carefully. 
It summarizes: 
• the personal information we collect;

• how we safeguard its confidentiality and security; 
• when it may be shared with others; and  
• how you can limit our sharing of this information.

We may from time to time review your credit, employment and income records. We may 
report the status and payment history of your Account to credit reporting agencies and 
other creditors. We normally report to credit reporting agencies each month.

If you believe that information we reported is inaccurate or incomplete, please write 
us at Discover, PO Box 15316, Wilmington, DE 19850-5316. Please include your name, 
address, home phone number and Account number.

You  agree  that  we  (and  our  affiliates,  agents,  and  contractors)  may  monitor  or 
record any calls between you and us. If we need to contact you to service your 
Account or to collect amounts you owe to us, you authorize us (and our affiliates, 
agents, and contractors) to contact you at any number (i) you have provided to us 
(ii) from which you called us, or (iii) which we obtained and believe we can reach 

You must notify us immediately if:
•  your Card is lost or stolen; or 
•  you believe someone is using your Account or a Card without your permission.

you at.  We may contact you in any way, such as calling, texting, or email. We may 
contact you using an automated dialer or using pre-recorded messages. We may 
contact you on a mobile, wireless, or similar device, even if you are charged for it 
by your provider.

•   You may cancel your Account. You will remain responsible for any amount you 

•   We may cancel, suspend or not renew your Account at any time without notice.

owe us under this Agreement. 

•   Any joint Accountholder may cancel a joint Account. However, both of you will    

remain responsible for paying all amounts owed.

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OTHER IMPORTANT INFORMATION

Purchases and Cash Advances 
in Foreign Currencies

If you make a Purchase or Cash Advance in a foreign currency, we will convert 
it to U.S. dollars using a rate we choose. This rate will either be a government-
mandated  rate,  a  government-published  rate  or  the  interbank  exchange  rate, 

depending  on  the  country  and  currency  in  which  the  transaction  is  made.  We 
use the rate in effect on the conversion date for the transaction. This rate may 
be different than the rate in effect on the Transaction Date for the transaction.

Governing Law

Severability

This Agreement is governed by applicable federal law and by Delaware law. However, in the event you default and we file a lawsuit to recover funds loaned to you, the statute 
of limitations of the state where the lawsuit is filed will apply, without regard to that state’s conflicts of laws principles or its “borrowing statute.”
If any part of this Agreement is found to be invalid, the rest of it will still remain in effect. However, if the Class Action Waiver in the “Arbitration of Disputes” section is 
invalidated in any proceeding in which you and we are involved, then the “Arbitration of Disputes” section will be void with respect to that proceeding.

Enforcing this Agreement

We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them.

Assignment of Account

CONTACT US

DEFINITIONS

We may sell, assign or transfer your Account or any portion of it without notice to you. You may not sell, assign or transfer your Account without first obtaining our prior 
written consent.

Unless we tell you otherwise, you can notify us:
•  by phone at 1-800-347-3085 or 
•  in writing to Discover, PO Box 30943, Salt Lake City, UT 84130-0943.

When writing, please include your name, address, home phone number and 
Account number. You must contact us within 15 days after changing your e-mail 
address, mailing address or phone number.

“Account” means your Discover card account.
“Affiliate” means our parent corporations, subsidiaries and affiliates.
“  Authorized User” means any person you authorize to use your Account or a Card, 
whether you notify us or not.
“Balance Transfer” means a balance transferred from another creditor to your Account.
“Card” means any one or more Discover cards issued to you or someone else with 
  your authorization.
“Cash Advance” means the use of your Account to:
•   obtain cash from participating automated teller machines, financial institutions 

or other locations;

•  purchase lottery tickets, money orders, casino chips, foreign currency or similar items.

“Check” means any check we send to you to access your Account.
“Pricing Schedule” means the document entitled, “Pricing Schedule”, which lists
  the APRs that apply to your Account and other important information.
“Prime Rate” means the highest rate of interest listed as the U.S. Prime rate in the 
  Money Rates section of The Wall Street Journal on the last business day of the month.
“Purchase” means the use of your Account to purchase or lease goods or services     
  at participating merchants.
“We,” “us” and “our” refer to Discover Bank, the issuer of your Card.
“You,” “your” or “yours” refer to you and any other person(s) who are also 
  contractually liable under this Agreement.
“Transaction Date” means the date shown on your billing statement for a 
  transaction or fee.

ARBITRATION

Agreement  to  arbitrate.  In  the  event  of  a  dispute  between  you 
and us arising under or relating to this Account, either may choose to 
resolve the dispute by binding arbitration, as described below, instead 
of in court. Any claim (except for a claim challenging the validity or 
enforceability of this arbitration agreement, including the Class Action 
Waiver) may be resolved by binding arbitration if either side requests 
it.  THIS  MEANS  IF  EITHER  YOU  OR  WE  CHOOSE  ARBITRATION, 
NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE SUCH CLAIM 
IN COURT OR TO HAVE A JURY TRIAL. ALSO DISCOVERY AND APPEAL 
RIGHTS ARE LIMITED IN ARBITRATION.
CLASS  ACTION  WAIVER.  ARBITRATION  MUST  BE  ON  AN 
INDIVIDUAL BASIS. THIS MEANS NEITHER YOU NOR WE MAY JOIN 
OR CONSOLIDATE CLAIMS IN ARBITRATION BY OR AGAINST OTHER 
CARDMEMBERS, OR LITIGATE IN COURT OR ARBITRATE ANY CLAIMS 
AS A REPRESENTATIVE OR MEMBER OF A CLASS OR IN A PRIVATE 
ATTORNEY GENERAL CAPACITY. 
Only a court, and not an arbitrator, shall determine the validity and 
effect of the Class Action  Waiver. Even if all parties have opted to 
litigate a claim in court, you or we may elect arbitration with respect 
to any claim made by a new party or any new claims later asserted in 
that lawsuit.
Your Right to Go To Small Claims Court. We will not choose to 
arbitrate any claim you bring in small claims court. However, if such a 
claim is transferred, removed or appealed to a different court, we may 
then choose to arbitrate.
Governing Law and Rules. This arbitration agreement is governed 
by the Federal Arbitration Act (FAA). Arbitration must proceed only 
with the American Arbitration Association (AAA) or JAMS. The rules 
for the arbitration will be those in this arbitration agreement and the 
procedures  of  the  chosen  arbitration  organization,  but  the  rules  in 
this arbitration agreement will be followed if there is disagreement 
between  the  agreement  and  the  organization’s  procedures.  If 
the  organization’s  procedures  change  after  the  claim  is  filed,  the 
procedures in effect when the claim was filed will apply. For a copy of 

each organization’s procedures, to file a claim or for other information, 
please contact:
•  AAA at 1101 Laurel Oak Rd., Voorhees, NJ 08043, 
  www.adr.org (phone 1-877-495-4185) or
•   JAMS  at  620  Eighth  Ave.,  Floor  34,  New  York,  NY  10018, 

 www.jamsadr.com (phone 1-800-352-5267).

If both AAA and JAMS are completely unavailable, and if you and we 
cannot agree on a substitute, then either you or we may request that a 
court appoint a substitute.
Fees and Costs. If you wish to begin an arbitration against us but 
you cannot afford to pay the organization’s or arbitrator’s costs, we 
will advance those costs if you ask us in writing. Any request like this 
should be sent to Discover, PO Box 30421, Salt Lake City, UT 84130-
0421. If you lose the arbitration, the arbitrator will decide whether you 
must reimburse us for money we advanced for you for the arbitration. 
If you win the arbitration, we will not ask for reimbursement of money 
we advanced.
Additionally, if you win the arbitration, the arbitrator may decide that 
you are entitled to be reimbursed your reasonable attorneys’ fees and 
costs (if actually paid by you).
Hearings  and  Decisions.  Arbitration  hearings  will  take  place  in 
the federal judicial district where you live. A single arbitrator will be 
appointed.
The arbitrator must:
•  Follow all applicable substantive law, except when
    contradicted by the FAA;
•  Follow applicable statutes of limitations;
•  Honor valid claims of privilege;
•  Issue a written decision including the reasons for the award.
The arbitrator’s decision will be final and binding except for any review 
allowed by the FAA. However, if more than $100,000 was genuinely 
in dispute, then either you or we may choose to appeal to a new panel 
of three arbitrators. The appellate panel is completely free to accept 
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or reject the entire original award or any part of it. The appeal must 
be filed with the arbitration organization not later than 30 days after 
the original award issues. The appealing party pays all appellate costs 
unless the appellate panel determines otherwise as part of its award. 
Any arbitration award may be enforced (such as through a judgment) 
in any court with jurisdiction. 
Other Beneficiaries of this Provision. In addition to you and us, the 
rights and duties described in this arbitration agreement apply to: our 
Affiliates and our and their officers, directors and employees; any third 
party co-defendant of a claim subject to this arbitration provision; and 
all joint Accountholders and Authorized Users of your Account(s). 
Survival of this Provision. This arbitration provision shall survive:
•  closing of your Account;
•  voluntary payment of your Account or any part of it;
•  any legal proceedings to collect money you owe;
•  any bankruptcy by you; and
•  any sale by us of your Account.
You Have the Right to Reject Arbitration for this Account. You 
may reject the arbitration agreement but only if we receive 
from you a written notice of rejection within 30 days of your 
receipt of the Card after your Account is opened. You must send 
the notice of rejection to: Discover, PO Box 30938, Salt Lake 
City, UT 84130-0938. Your rejection notice must include your name, 
address, phone number, Account number and personal signature. No 
one else may sign the rejection notice for you.  Your rejection notice 
also must not be sent with any other correspondence. Rejection of 
arbitration will not affect your other rights or responsibilities under this 
Agreement. If you reject arbitration, neither you nor we will be subject 
to the arbitration provisions for this Account.  

Your Billing Rights:
Keep This Document For Future Use
This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act. 
What To Do If You Find A Mistake On Your Statement
If you think there is an error on your statement, write to us at:
Discover
PO Box 30421
Salt Lake City, UT 84130-0421

In your letter, give us the following information: 
• Account information: Your name and account number. 
• Dollar amount: The dollar amount of the suspected error. 
• Date: The date of the suspected error. 
• Description of problem: If you think there is an error on your bill, describe what you believe is wrong 
   and why you believe it is a mistake.

You must contact us:
• Within 60 days after the error appeared on your statement.
• By 5:00 pm Eastern Time on the date of your scheduled automated payment withdrawal if you want  
  to cancel or modify your payment.
You must notify us of any potential errors in writing. You may call us, but if you do we are not 
necessarily required to investigate any potential errors and you may have to pay the amount in question.

What Will Happen After We Receive Your Letter

When we receive your letter, we must do two things:
1.  Within 30 days of receiving your letter, we must tell you in writing that we received your letter. We will 

also tell you if we have already corrected the error.

2.  Within 90 days of receiving your letter, we must either correct the error and notify you in writing of the 

correction or explain to you in writing why we believe the bill is correct.

While we investigate whether or not there has been an error:
•  We cannot try to collect the amount and related interest in question or report you as delinquent on 

that amount.

•  The charge in question may continue to appear on your statement.
•  While you do not have to pay the amount in question, you are responsible for the remainder of 

your balance.

• We can apply any unpaid amount against your credit limit.

After we finish our investigation, one of two things will happen: 
•  If we made a mistake: You will not have to pay the amount in question or any  interest or other fees 

related to that amount.

•  If we do not believe there was a mistake: You will have to pay the amount in question, along with 
applicable interest and fees. We will send you a statement of the amount you owe and the date 
payment is due. We may then report you as delinquent if you do not pay the amount we think 
you owe.

If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling 
us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting 
that you are questioning your bill. We must tell you in writing the name of anyone to whom we reported 
you as delinquent, and we must let those organizations know when the matter has been settled between us.

If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question 
even if your bill is correct.

Your Rights If You Are Dissatisfied With Your Credit Card Purchases

If you are dissatisfied with the goods or services that you have purchased with your 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 purchase.

To use this right, all of the following must be true: 
1.  The purchase must have been made in your home state or within 100 miles of your current mailing 

address, and the purchase price must have been more than $50. (Note: Neither of these are necessary 
if your purchase was based on an advertisement we mailed to you, or if we own the company that 
sold you the goods or services, or if the company that sold you the goods or services owns us.)

2.  You must have used your credit card for the purchase. Purchases made with cash advances from an 

ATM or with a check that accesses your credit card account do not qualify.

If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing at:
Discover
PO Box 30945
Salt Lake City, UT 84130-0945

While we investigate, the same rules apply to the disputed amount as discussed above. After we finish 
our investigation, we will tell you our decision. At that point, if we think you owe an amount and you do 
not pay, we may report you as delinquent.

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