OPENSKY® SECURED VISA®  
CREDIT CARDHOLDER AGREEMENT 

INTEREST RATES AND INTEREST CHARGES 

Annual Percentage Rate (APR) for 
Purchases 

19.64% 
This APR will vary with the market based on the Prime Rate plus a margin.  

APR for Cash Advances 

19.64% 
This APR will vary with the market based on the Prime Rate plus a margin.  

How to Avoid Paying Interest on 
Purchases 

Your due date is at least 25 days after the close of each billing cycle. We 
will not charge you interest on new purchases, provided you have paid 
your previous balance in full by the due date each month. We will begin 
charging interest on cash advances on the transaction date. 

Minimum Interest Charge 

If you are charged interest, the charge will be no less than $1.00. 

For Credit Card Tips from the 
Consumer Financial Protection 
Bureau 

To learn more about factors to consider when applying for or using a credit 
card, visit the website of the Consumer Financial Protection Bureau at 
https://www. Consumerfinance.gov/learnmore.  

FEES 

Annual Fee 

Transaction Fees 

•  Cash Advance  

$35 annually. 

Either $6 or 5% of the amount of each cash advance, whichever is greater. 

•  Foreign Transaction 

3% of each Transaction in U.S. dollars 

Penalty Fees 

Late Payment 

Returned Payment  

• 

• 

Up to $38 

Up to $25 

How  We  Will  Calculate  Your  Balance:  We  use  a  method  called  “average  daily  balance  (including  new 
Transactions).” Please see Section 7.(c) of this Agreement for further details.  

Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided in the 
section titled “Your Billing Rights” at the end of this Agreement. 

MILITARY LENDING ACT NOTICE: Federal law provides important protections to members of the Armed Forces 
and their dependents related to extentsion of consumer credit. In general, the cost of consumer credit to a member 
of the Armed Forces andhis or her dependent may not exceed an annual percentage rate of 36 percent. This rate 
must include, as applicable to the credit transaction or account; The costs associated with credit insurance 
premiums; fees for ancillary products sold in connection with the credit transaction; any application fee charged 
(other than certain application fees for specified credit transactions or accounts); and any participation fee charged 
(other than certain participation fees for a credit card account). To receive this information and a description of your 
payment obligation verbally, please call us toll free 855-763-6736. 

The information described here about the costs of the OpenSky Secured Visa Credit Card issued by Capital Bank, 
NA is accurate as of 1/1/19. This information may have changed after that date.  

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SECTION 19 OF THIS AGREEMENT IS AN ARBITRATION PROVISION. UNLESS YOU ACT PROMPTLY TO REJECT THE 
ARBITRATION PROVISION, IT WILL HAVE A SUBSTANTIAL EFFECT ON YOUR RIGHTS IN THE EVENT OF A DISPUTE. 
FOR EXAMPLE, YOU WILL NOT BE ABLE TO BRING OR PARTICIPATE IN ANY CLASS PROCEEDING SUBJECT TO 
ARBITRATION. 

This Agreement governs the secured credit card account  (“Account”) and related credit card (“Card”) provided  by 
Capital  Bank,  a  nationally  chartered,  FDIC-insured  Bank  headquartered  in  Rockville,  MD  (the  “Bank”).  In  this 
Agreement, the  words “we,” “us,” and “our” mean the  Bank, its successors and assigns, and, for purposes  of the 
Arbitration Provision (Section 19) the other persons identified in the Arbitration Provision. The words “you,” “your”, 
“yours” and “Cardholder” mean everyone responsible for this Account, including the person who applied for, received 
and accepted this Account and the person to whom we provide the Account Statements after each monthly billing 
cycle. You agree, jointly and severally, if more than one person is contractually liable for the Account, to comply with, 
and be bound by, this entire Agreement. You should retain and carefully review this entire Agreement, and sign your 
Card before using it. Intending to be legally bound, you and we agree as follows: 

1. Accepting this Agreement. You accept and agree to the terms and conditions of this Agreement when you first use 
the Account or the Card.  

2.  Purchases  and  Cash  Advances.  You  may  use  your  Account  to  purchase  or  lease  goods  or  services  (each,  a 
“Purchase”) by presenting your Card or providing your Card number and additional information (for example, in online 
or telephone transactions) to participating merchants and establishments that honor the Card. You may also receive 
“Cash Advances” on your Account: (a) to obtain cash or cash-like equivalents (for example, money orders, traveler’s 
checks, stamps or other instruments convertible into cash) from any bank or other person that accepts the Card for 
such purpose; (b) to make a withdrawal of cash from an automated teller machine (“ATM”); (c) to make a person-to-
person transfer conducted through the Internet or otherwise; and/or (d) to cash or make a payment using any check 
we provide to access the Account (a “Statement Check”). To qualify for Statement Checks, your Credit Limit must be  
greater than $500.00, your Account must be current and you may not have been 30 days’ late in paying your Minimum 
Payment Due on more than two occasions since you opened your Account. Additional qualifications may apply. 

For all purposes of this Agreement, and no matter how they are implemented, Balance Transfers are treated as a 
kind of Cash Advances. Purchases and Cash Advances (including Balance Transfers) are collectively referred to as 
“Transactions.” We will not be liable to you (or anyone else) if any ATM, merchant or other person cannot or will not 
process a Transaction permitted under this Agreement. Unless prohibited by applicable law, we may from time to 
time limit the type, number and dollar amount of any Transaction, even if you have sufficient Available Credit (defined 
in 5.(e) below) to complete the Transaction, and may terminate or suspend your use of the Card or the Account, with 
or without notice to you before or at the time we take such action.  

3.  Use  of  the  Account  and  the  Card.  You  agree  to  use  your  Account  and  your  Card  only  for  personal,  family  or 
household  purposes.  You  agree  that  you  will  not  use  your  Account  for  any  unlawful  purpose  or  to  engage  in  or 
facilitate Internet gambling. Your breach of this Agreement will not affect or limit your liability to us with respect to any 
Transactions or Balance Type. 

 4.  Authorized  User(s).    If  you  allow  any  other  person  to  use  your  Account  or  your  Card,  that  person  will  be  an 
“Authorized User.” You are responsible for all use of your Account, including Transactions by an Authorized User. If 
you allow an Authorized User to use your Account, such authorization will be deemed to extend to all Transactions 
by such Authorized User, even if not intended by you, and will continue until you have taken all steps necessary to 
prevent any further use of your Account by such Authorized User, even if you have advised us that such Authorized 
User is no longer authorized to use the Account. It is your responsibility to get any cards, checks or any other means 
of access to your Account from the Authorized User and destroy them or return them to us upon request. 

5. Secured Card; Pledged Deposit Account.  

(a) As a condition to obtaining this Account, you are opening a deposit account at the Bank, or at another 
FDIC-insured institution designated by the Bank in its discretion (the “Deposit Bank”), in a minimum amount 
of at least $200.00.  We need not notify you of the identity of the Deposit Bank, if any, unless you expressly 
request  such  information.  The  deposit  account  we  open  for  you,  with  us  or  the  Deposit  Bank,  and  any 
substitutions  or  renewals  thereof,  is  referred  to  herein  as  the  “Pledged  Deposit  Account.”  You  hereby 
appoint us your agent and attorney-in-fact and direct us to open the Pledged Deposit Account, to maintain 
records and deliver disclosures with respect to the Pledged Deposit Account (including records on behalf of 
the Deposit Bank, if any) and to take or initiate all actions with respect to the Pledged Deposit Account as 
are contemplated hereunder.  You hereby direct the Deposit Bank to  deal  exclusively and directly with us 
concerning the Pledged Deposit Account, to comply with our instructions directing disposition of the funds 
on  deposit  in  the  Pledged  Deposit  Account  from  time  to  time,  including  any  funds  deposited  after  the 
effective date of this Agreement (the “Deposit Funds”), without further consent by you, and to disregard any 

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instructions received directly from you (whether or not such instructions are contrary to any instructions we 
have given the Deposit Bank).  

(b)  You  hereby  pledge,  assign  and  grant  us  a  first  priority  security  interest  in  the  Pledged  Deposit 
Account and the Deposit Funds (together, the “Pledged Collateral”), and you authorize and direct us and the 
Deposit Bank to take all actions necessary or appropriate to ensure our rights in the Pledged Collateral. You 
acknowledge that, during the term of this Agreement, you may not sell, transfer, assign, pledge or create any 
security interest (except the security interest created hereby) in the Pledged Collateral. You agree to sign all 
applications  and  further  documents  that  we  may  request  from  time  to  time  to  confirm  and  evidence  the 
creation  of  the  Pledged  Deposit  Account  and  our  security  interest  in  the  Pledged  Collateral,  and  you 
authorize us to sign such documents on your behalf. If you do not pay your Account balance as and when 
due or you or we decide to close your Account for any reason, you authorize us to apply any or all of the 
Deposit Funds to  your outstanding  Account balance. We expressly disclaim any security interest in  your 
other property in connection with your Account. 

(c) You may not make withdrawals of Deposit Funds.  You will not receive any Deposit Funds until we are 
reasonably assured that the remaining Deposit Funds will be sufficient to secure in full all your obligations 
to us under this Agreement. This may take up to ten (10) weeks in some circumstances.  You will not receive 
a Deposit Funds refund if the remaining Deposit Funds are less than $1.00 in the event the Deposit Funds 
are used to fully satisfy your obligations to us under the Agreement. 

(d) If you default under this Agreement (see Section 14) and we exercise our rights as a secured creditor 
with respect to the Pledged Collateral (see Section 15.(e)) but the outstanding Account balance exceeds the 
Deposit Funds, you are and will remain liable for the difference, plus any further Fees and Interest that may 
subsequently accrue, until the Account balance is paid in full. 

(e) Deposit Funds do not pay interest. Accordingly, the interest rate and annual percentage yield on the 

Pledged Deposit Account are both 0.00% for the entire life of the Pledged Deposit Account. 

6. Credit Limit; Transaction Limits; Available Credit. 

(a) Your initial Credit Limit is disclosed on the card carrier used to deliver the Card to you. Your initial Credit Limit 
is based on the amount of Deposit Funds that you initially deposited to the Pledged Deposit Account. However, we 
will charge your $35.00 Annual Fee to your Account, which will reduce your Available Credit  by that amount. (See 
6.(d) below.) 

(b)  You  may  request  an  increase  in  your  Credit  Limit  at  any  time  or  from  time  to  time,  provided  that, 
notwithstanding  any  language  in  this  Agreement  to  the  contrary:  (i)  any  increase  will  be  subject  to  underwriting 
approval; (ii) your Credit Limit will never without our express approval exceed the amount of Deposit Funds in the 
Pledged Deposit Account or the amount that we reasonably believe will allow you to pay the Minimum Payment Due, 
together with your other monthly expenses, each month; (iii) any deposit of additional Deposit Funds must be in the 
form of a check, money order or wire transfer (and not an ACH payment); (iv) the amount of a Cash Advance may 
not  be  less  than  $20  and  the  outstanding  balance  of  Cash  Advances  (including  Balance  Transfers  and  including 
Interest Charges and Fees treated as Cash Advances) may never exceed 50% of your Credit Limit; and (v) we may 
delay increasing your Credit Limit for up to five (5) business days after we approve the increase in Credit Limit and 
receive additional Deposit Funds, in order to ensure  that the payment to us has cleared. You agree to provide us 
from time to time with any information we reasonably request in order to assess your ability to make payments of the 
Minimum Payment Due based on the current Credit Limit or any contemplated Credit Limit. 

(c) After the first year of the Account, you may also request a decrease in your Credit Limit to a level not below 
$200.00 and a reduction in the Deposit Funds in the Pledged Deposit Account to a level not exceeding the reduced 
Credit Limit. In such event, we will immediately reduce your Credit Limit but you will not receive any Deposit Funds 
until we are reasonably assured that the remaining Deposit Funds will be sufficient to secure in full all your obligations 
to us under this Agreement, including your Account balance and obligations relating to authorized Transactions that 
are not yet reflected in your Account balance (“Pending Transactions”). This may take up to ten (10) weeks in certain 
circumstances. 

(d) The amount by which your Credit Limit exceeds the sum of: (i) your outstanding Account balance (including 
principal, Fees and Interest Charges); (ii) the dollar amount of all Pending Transactions; and (iii) funds you have sent 
us  that  are  not  yet  treated  as  “good”  funds  under  Section  11.(e)  for  purposes  of  determining  credit  availability  is 
referred to as your “Available Credit.” We are not required to approve any Transaction if the amount of the Transaction 
exceeds your Available Credit. However, we may authorize and pay any such Transaction in our absolute discretion. 
Whenever the outstanding balance of the Account exceeds your Credit Limit, you agree to pay us the difference on 
demand.  

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(e) (i) Subject to applicable law, we may from time to time and in our sole discretion increase your Credit Limit to 
any level of our choice, even if the new Credit Limit exceeds the Deposit Funds in the Pledged Deposit Account. We 
may also decrease your Credit Limit in our sole discretion, as low as $0. Additionally, we may at any time close your 
Account, or limit the number or amount of Transactions that can be charged to your Account based on an evaluation 
of  various  factors. We  will  promptly  notify  you  in  writing  in  the  event  we  decide  to  take  any  such  action  on  your 
Account. 

(ii) If we close your Account without cause or if we take any action described in Section 6.(e)(i) without cause 
and you give us written notice within thirty (30) days that you are closing your Account, we will disregard any reduction 
in your Credit Limit for purposes of determining your Annual Percentage Rate (“APR”). Also, if we reduce your Credit 
Limit without cause, we will not demand immediate payment of any excess of the Account Balance over the reduced 
Credit Limit until such time as the reduced Credit Limit first equals or exceeds the outstanding Account Balance. 

7. Interest Charges. 

(a) General. Each Billing Cycle,  we separately determine the Interest Charges on Purchases and the Interest 
Charges on Cash Advances (including Balance Transfers). Both for Purchases and Cash Advances (each, a “Balance 
Type”), we determine Interest Charges each Billing Cycle by multiplying the Balance Subject to Interest Charges (see 
7.(c) below) by the daily Periodic Rate and by then multiplying the result by the number of days in the Billing Cycle. 
For  each  Balance  Type,  the  Balance  Subject  to  Interest  Charges  is  the  Average  Daily  Balance  (including  new 
Transactions), as calculated pursuant to Section 6.(c) below. To get the total Interest Charges each Billing Cycle, we 
add together the Interest Charges for Purchases and the Interest Charges for Cash Advances. 

(b) Interest Rates.  

 (i) For each Balance Type, the Daily Periodic Rate and APR will equal the sum of a Margin and the Prime 
Rate determined as of the third Friday of the last calendar month ended before the beginning of the applicable Billing 
Cycle (the “Determination Date”).  The Margin for Purchase and Cash Balance Types is 14.14%. The “Prime Rate” 
is  the  highest  U.S.  Prime  Rate  as  published  in  the  “Money  Rates”  section  of  The  Wall  Street  Journal  on  the 
Determination Date (or, if The Wall Street Journal does not publish such rate on such day, the previous day it does 
publish such rate). (If The Wall Street Journal stops publishing the U.S. Prime Rate in its “Money Rates” section, then 
we may substitute another index and margin, in our sole discretion, subject to applicable law.)   For each Balance 
Type, your rate will vary with the market based on the Prime Rate. The Daily Periodic Rate will be 1/365th of the APR 
rounded to the nearest 1/100,000th of 1%. The Daily Periodic Rate in effect at any time is disclosed on the monthly 
statement  under  “Interest  Charge  Calculation”.  The  Daily  Periodic  Rate  for  your  Purchase  and  Cash  APR  is 
0.05381%.Notwithstanding  the foregoing, the  Daily Periodic  Rate and  APR  will never  exceed  the maximum rates 
permitted by applicable law.  

(ii) Your APR may increase.  If and when the APR for each Balance Type increases, more Interest Charges 
will accrue  and more of each payment  will be applied to Interest Charges  and  less to principal. This  will result in 
higher and/or more payments if you pay the Minimum Payment Due each month. If and when the APR decreases, 
less Interest Charges will accrue and less of each payment will be applied to Interest Charges and more to principal. 
This will result in lower and/or fewer payments if you pay the Minimum Payment Due each month.  

 (c) Balances Subject to Interest Charge. 

(i) For each Balance Type, the Balance Subject to Interest Charges is the Average Daily Balance for such 
Balance Type. The Average Daily Balance for a Billing Cycle equals the sum of the daily Purchases or Cash Advances 
balances, as applicable, for each day of the Billing Cycle, divided by the number of days in the Billing Cycle.  

(ii)The Purchases balance for each day in the Billing Cycle is computed as follows:  

(A) For each day (including the first day of the Billing Cycle), we start with the prior day’s closing balance 

of Purchases, if any.  

(B) For the first day of the Billing cycle, we add any unpaid Interest Charges on Purchases that accrued 

during the prior Billing Cycle. (This results in the monthly compounding of Interest Charges.) 

(C)  For  each  day  in  the  Billing  Cycle  (including  the  first  day  of  the  Billing  Cycle),  we  add  any  new 
Purchases posted to your Account and subtract any payments or credits applied to Purchases. However, we do not 
subtract a second time any payments or credits that have already been subtracted in step (B) above.  

(D) We treat any negative daily balance as $0. 

(iii)  To  get  the  daily  balance  of  Cash  Advances  (including  Balance  Transfers)  each  day:  (i)  we  take  the 
previous day’s balance of Cash Advances (if any); (ii) we add any new Cash Advances; and (iii) we subtract any new 
payments or credits applied to Cash Advances. For the first day of each Billing Cycle, we also add any unpaid Interest 
Charges on Cash Advances that accrued during the prior Billing Cycle. (This results in the monthly compounding of 

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Interest Charges.) If a Cash Advance obtained in a Billing Cycle is not posted in that Billing Cycle, we add the Cash 
Advance to the daily balance on the first day of the next Billing Cycle instead of the day it was obtained. We treat any 
negative daily balance as $0. 

(d)   Interest Accrual Periods. We charge Interest Charges over the following periods: 

(i) On each Cash Advance, we charge Interest Charges from the later of the Cash Advance transaction or 

the first day of the Billing Cycle in which it is posted to your Account until it is repaid in full.  

(ii)  On  each  Purchase,  we  charge  Interest  Charges  from  the  day  the  Purchase  is  posted  to  the  Account 

through the Interest End Date.   

(e)  Classification  of  Fees  as  Purchases  or  Cash  Advances  (including  Balance  Transfers).  For  purposes  of 
computing Interest Charges, Cash Advance Fees are treated as Cash Advances and all other Fees are treated as 
Purchases. 

(f)  Avoid Interest Charges on Purchases.  We will not charge you Interest on Purchases if you pay the entire 

New Balance by the payment due date each billing cycle.  

8. Fees. Subject to applicable law, including the federal Truth in Lending Act and Regulation Z, you paid or agree to 
pay the following Fees:  

(a) Set-Up and Maintenance Fees. You paid or agree to pay the following Set-Up and Maintenance Fees: 

 (i) When we open your Account and each year following the anniversary date of your Account opening, we 

will charge you an Annual Fee of $35.00. 

 (ii) If you requested us to expedite shipping of your Card, you also paid a one-time, non-refundable Expedited 

Card Fee of $50.00.  

       (b) Transaction Fees; Currency Conversion.  

(i) Each time you obtain a Cash Advance (including a Balance Transfer), we will charge a Cash Advance Fee 

equal to the greater of $6 or 5% of the dollar amount of the Cash Advance.  

(ii) If you make a Purchase or obtain a Cash Advance in a foreign currency, the Transaction will be converted 
into a U.S. dollar amount in accordance with operating regulations or conversion procedures of  Visa International 
(“Visa”) in effect at the time the Transaction is processed. Currently, Visa regulations and procedures provide that 
the currency conversion rate will be either a wholesale market rate or a government-mandated rate in effect one day 
prior to the processing date. We charge a Foreign Currency Transaction Fee equal to three percent (3%) of the gross 
amount of the Transaction in U.S. Currency. The foreign merchant or financial institution may charge a separate fee. 

(c) Penalty Fees.  

(i) If we do not receive a payment from you in at least the amount of your Minimum Payment Due within one 
(1) day after the Payment Due Date shown on your monthly statement, you will be charged a Late Payment Fee up 
to $27 for the first Late Payment and up to $38 for a subsequent Late Payment within the following six (6) months.   

(ii) Each time a check, instrument or other payment on your Account is returned to us unpaid for any reason 
or we must return any check or instrument you send us because it is not signed or is otherwise incomplete, we will 
charge you a Returned Payment Fee of $25.00. We will not charge a Returned Payment Fee if we are charging a 
Late Fee with respect to the same Minimum Payment Due and will never charge a Returned Payment Fee exceeding 
the related Minimum Payment Due. 

(d) Additional Fees.  

(i) We will charge an Expedited Pay By Phone Fee of $10.00 each time you arrange for an expedited payment 
by calling us and obtaining the assistance of a live representative or agent of ours. Your payment will be credited to 
your Account the same day, if received on or before 5:00 p.m. Eastern Time on a business day and otherwise on the 
next business day.  

(ii) We will charge you a Document Retrieval Fee of $5.00 each time you request and we provide you with a 
copy of any monthly Account Statement (“Account Statement”), sales draft or payment instrument previously provided 
you, unless the request is made in connection with a written notice of a billing error.  

(iii) We will charge you Paper Statement Fee of $3.00 if you request us to deliver your Account Statements 
to you in paper through the U.S. Postal Service rather than accessing them online. For more details about delivery 
of your Account Statements, please refer to Section 10. below. 

(iv) We may charge additional fees for separate services we provide you in accordance with applicable law. 

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9. Limits on Interest Charges and Fees.  

(a)  Notwithstanding  any  language  in  this  Agreement  to  the  contrary,  we  will  limit  the  total  amount  of  any 
Transaction Fees (listed on the first page) that we impose during the first year after the Account is opened to twenty-
five percent (25%) of your initial Credit Limit (or any lower Credit Limit that may apply during the first year after the 
Account is opened). If a charge is imposed that would otherwise exceed this limit, then, in accordance with applicable 
law, we will make the necessary corrections within a reasonable amount of time but no later than the end of the Billing 
Cycle following the Billing Cycle during which the limit was exceeded. 

(b) It is not the intention of the parties that anything in this Agreement should result in the assessment of Interest 
Charges or Fees in excess of those permitted by applicable law. If any Interest Charge or Fee assessed under this 
Agreement is finally determined to be in excess of that permitted by applicable law, the excess amount will be applied 
to reduce the outstanding balance in your Account or, if there is no outstanding balance, will be refunded to you.  

10. Periodic Account Statements. We will send you an Account Statement shortly after the end of each monthly Billing 
Cycle if your Account has a debit or credit balance in excess of $1.00 at the end of the Billing Cycle or any Interest 
Charge has been imposed during the Billing Cycle. However, we are not obligated to send you an Account Statement 
if we deem your Account to be uncollectible or applicable law does not require us to send you an Account Statement 
for  other  reasons.  Your  Account  Statements  will  show  Transactions;  payments,  credits  and  adjustments;  Interest 
Charges and Fees; the Previous Balance and New Balance on your Account; your Credit Limit and Available Credit; 
and the Minimum Payment Due and Payment Due Date. As you consented to receive e-disclosures when you applied 
for this Account, your Account Statements are posted online and can be accessed at MyAccount, our secure online 
Cardholder Center. At any time you may notify us that you withdraw your consent to receive electronic statements 
and we will deliver your Account Statements to you in paper through the U.S. Postal Service. However, we will charge 
you a $3.00 Paper Statement Fee for each Account Statement we deliver to you in paper. 

11. Payments.  

(a) Each month,  you must pay at least the Minimum Payment Due shown on  your Account  Statement by  the 
“Cut-Off Time” on the Payment Due Date shown on your Account Statement, which will be at least twenty-five (25) 
days after the date of the Account Statement, typically on the same day of each calendar month. However, if the 
Payment Due Date falls on a day we do not receive mail (“non-business day”), we will not treat your payment as late 
for any purpose if we receive it by the Cut-Off Time on the next day we receive mail (a “business day”). The “Cut-Off 
Time” is 5:00 p.m. local time at the payment address specified on the Account Statement (or closing time of any  of 
our offices at which you make payment in person). 

(b) If the total outstanding balance under your Account at the end of a Billing Cycle, as shown on your Account 
Statement (the “New Balance”), is less than $25.00, the Minimum Payment Due equals the New Balance. Otherwise, 
the  Minimum  Payment  Due  equals  the  sum  of:  (i)  any  amount  past  due;  plus  (ii)  any  amount  by  which  the  New 
Balance exceeds your Credit Limit; and (iii) the greatest of: (A) the sum of the Interest Charges and Fees reflected 
on your Account Statement; (B) two percent (2%) of the New Balance; or (C) $25.00. 

(c)  You  agree  to  make  all  payments  by  check  or  other  negotiable  instrument  drawn  on  a  financial  institution 
located  in  the  U.S.  or  by  money  order.  Payments  must  be  made  in  U.S.  dollars.  All  payments,  except  disputed 
payments, must be mailed or delivered to us at the payment address shown on the front of your Account Statement 
(the “Payment Address”). Any payments received after the Cut-Off Time on a business day will be credited on the 
next business day. However, credit to your Account may be delayed for up to five (5) days if we accept a payment 
that is: (i) not received by mail or messenger service at the Payment Address or in-person at one of our branches; 
(ii) not made in U.S. dollars by a check or other negotiable instrument drawn on a financial institution located in the 
U.S. or by money order; or (iii) not accompanied by the top portion of your Account Statement. Delayed crediting may 
cause you to incur additional Fees and Interest Charges, subject to applicable law. You may not use a Statement 
Check  to  pay  any  amount  you  owe  under  this  Agreement  or  any  other  amount  you  owe  us.  None  of  the 
following will constitute a payment made by you: (i) a credit posting from a merchant; (ii) a reversal of fees 
by us; or (iii) our offset of the Deposit Funds in the Pledged Deposit Account.  

(d) Subject to applicable law, we may apply payments and other credits to your Account in any manner we choose 
in our sole discretion. For payments up to the Minimum Payment Due, we typically apply payments based on the 
APR of different balances, first to the lowest APR, next to the next-lowest APR and so on. For payments in excess 
of the Minimum Payment Due, we apply payments in the reverse order, first to balances with the highest APR. 

      (e)  All  credits  for  payments  to  your  Card  are  subject  to  final  payment  by  the  institution  on  which  the  item  of 
payment  was  drawn.  Your  Available  Credit  may  not  be  restored  for  up  to  twenty  (20)  days  after  we  receive  your 
payment. 

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12. Prepayment. At any time, you may pay all or any part of your outstanding Account balance. Payment of more 
than the Minimum Payment Due in one Billing Cycle will not relieve you of the obligation to pay the entire Minimum 
Payment Due in subsequent Billing Cycles. 

13. Termination. Subject to applicable law, we may terminate your right to credit under the Account at any time in our 
absolute discretion. You may also terminate your right to credit under the Account  by calling Customer Service or 
writing to the OpenSky Card Services, P.O. Box 9224, Old Bethpage, NY 11804-9224. Any request to terminate your 
credit privileges will be effective only after we have had a reasonable opportunity to act on such request.  We will 
close the Pledged Deposit Account after your credit privileges are terminated and all amounts owing to us are repaid 
in full. However, it could take up to ten (10) weeks before we close the Pledged Deposit Account and return to you 
any  Deposit  Funds  that  remain  after  all  your  obligations  to  us  have  been  paid  in  full.  Except  as  provided  above, 
termination of credit privileges, whether initiated by us or by you, will not affect any of your or our rights and obligations 
under this Agreement, including without limitation, your obligation to repay any amounts you owe us according to the 
terms of this Agreement. On our demand or upon termination of credit privileges, you agree to surrender to us or 
destroy the Card. You agree that, if you attempt to use the Card after the termination of credit privileges (whether or 
not we have provided notice of such termination), the Card may be retained by a merchant, ATM or financial institution 
where you attempt to use the Card. 

14. Default. Subject to applicable law, we may declare you to be in default under this Agreement if any one or more 
of the following events occurs: 

(a) you fail to pay any Minimum Payment Due on or before your Payment Due Date; 

(b) you exceed your Credit Limit; 

(c) you use a check or instrument for payment which is dishonored; 

(d) you die or are declared legally incompetent; 

(e) any other creditor tries by legal process to take money of yours, including Deposit Funds, in our possession; 

(f) a petition is filed or other proceeding is commenced by or against you under the Federal Bankruptcy Code or 

any other applicable federal or state insolvency laws; 

(g) you become generally unable to pay your debts; 

(h) you provide us with any false or misleading information; 

(i) you breach any of your other obligations under this Agreement; or 

(j) you are in default of any other credit agreement you have with us or any of our affiliates.  

15. Remedies. In the event of any default under this Agreement, we may, subject to applicable law (including any 
applicable notice requirement): 

(a)  without  waiving  any  rights  under  subsection  (b),  allow  you  to  repay  your  Account  balance  by  paying  the 

Minimum Payment Due each Billing Cycle; 

(b) declare all or any portion of your outstanding Account balance to be immediately due and payable, 

(c) immediately terminate or suspend your Account privileges and/or cancel your Card; 

(d) reduce your Credit Limit or otherwise limit your ability to make Transactions;  

(e) exercise our rights as a secured creditor with respect to the Pledged Deposit Account and the Deposit Funds; 

and/or 

(f) commence an action against you to collect all amounts owed in connection with this Agreement.  

We also may charge you court costs and reasonable attorneys’ fees that we actually incur, as permitted by applicable 
law, if your Account is sent for collection to an attorney who is not our salaried employee. We will not be obligated to 
honor  any  attempted  Transaction  if  your  Card  is  in  default  or  we  have  determined  to  terminate  or  suspend  your 
Account privileges or limit your ability to make Transactions. Interest Charges will continue to accrue until your total 
Account  balance,  including  accrued  Interest  Charges,  is  paid  in  full.  You  understand  and  agree  that,  subject  to 
applicable law, if you are in default under this Agreement, we may make collection calls to your home or cell phone 
and may use an automatic dialer and/or prerecorded messages with respect to such calls, even if the message is left 
on an answering machine. You agree such calls will not be considered “unsolicited” calls or telemarketing calls for 
purposes of state or federal law. 

16. Delay in Enforcement. We may at any time and in our sole discretion delay or waive enforcing any of our rights 
or remedies under this Agreement or under applicable law without losing any of those or any other rights or remedies. 

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Even if we do not enforce our rights or remedies at any one time, we may enforce them at a later date. For example, 
we may accept late payments or payments that are marked “payment in full” or with other restrictive endorsements 
without losing any of our rights under this Agreement. 

17. Notice and Cure. Prior to initiating a lawsuit or arbitration regarding a legal dispute or claim relating in any way to 
this Agreement or the Account (as more fully defined in Section 19.(b)(iii), a “Claim”), the party asserting the Claim 
(the “Claimant”) shall give the other party (the “Defending Party”) written notice of the Claim (a “Claim Notice”) and a 
reasonable opportunity, not less than thirty (30) days, to resolve the Claim on an individual basis. Any Claim Notice 
to you shall be sent in writing by mail to the address for you maintained in our records. Any Claim Notice to us shall 
be sent by mail to OpenSky Card Services, P.O. Box 9224, Old Bethpage, NY 11804-9224, attention Legal Claim (or 
such other address as we subsequently provide you). Any Claim Notice you send must provide your Account Number 
and telephone number. Any Claim Notice must explain the nature of the Claim and the relief that is demanded. The 
Claimant  must  reasonably  cooperate  in  providing  any  information  about  the  Claim  that  the  Defending  Party 
reasonably requests.  

18. Waiver of Right to Trial by Jury. YOU AND WE ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A 
CONSTITUTIONAL  RIGHT  BUT  MAY  BE  WAIVED  IN  CERTAIN  CIRCUMSTANCES.  TO  THE  EXTENT 
PERMITTED  BY  LAW,  YOU  AND  WE  KNOWINGLY  AND  VOLUNTARILY  WAIVE  ANY  RIGHT  TO  TRIAL  BY 
JURY  IN  THE  EVENT  OF  LITIGATION  ARISING  OUT  OF  OR  RELATED  TO  THIS  AGREEMENT.  THIS  JURY 
TRIAL  WAIVER  SHALL  NOT  AFFECT  OR  BE  INTERPRETED  AS  MODIFYING  IN  ANY  FASHION  THE 
ARBITRATION  PROVISION  SET  FORTH  IN  SECTION  19,  IF  APPLICABLE,  WHICH  CONTAINS  ITS  OWN 
SEPARATE JURY TRIAL WAIVER. 

19. Arbitration Provision. Unless you have exercised your right to reject arbitration under subsection (m) below, 
the following Arbitration Provision will apply: 

(a)  General: Either  you or  we may  elect to arbitrate  - and require the other party to arbitrate  - any Claim (as 
defined below) under the following terms and conditions. If you or we elect to arbitrate a Claim, neither you nor we 
will have the right to: (i) have a court or a jury decide the Claim; (ii) participate in a class action in court or in arbitration, 
either as a class representative or a class member; (iii) act as a private attorney general in court or in arbitration; or 
(iv) join or consolidate your Claim(s) with claims of any other person. The right to appeal and the right to pre-arbitration 
discovery are more limited in arbitration than in court. Other rights that you would have if you went to court may also 
not be available in arbitration.  

(b)  Definitions: The following definitions apply to this Arbitration Provision, even if terms defined in this Arbitration 

Provision are defined differently elsewhere in this Agreement:  

(i) 

“We,” “us” and “our” mean the Bank, together with any subsequent holder of this Agreement. Also, 
these terms include the parents, subsidiaries, affiliates and successors of such companies,  as well as the officers, 
directors, agents and employees of any of the foregoing. These terms also include any party named as a co-defendant 
with us in a Claim asserted by you, such as marketing companies, credit bureaus, credit insurance companies, credit 
card servicers and debt collectors. “You,” “your” and “yours” include each and every person who uses a Card. 

(ii) 

“Administrator”  means  the  American  Arbitration  Association  (“AAA”),  1633  Broadway,  10th  Floor, 
New  York, NY 10019,  www.adr.org, 800-778-7879; JAMS, 620 Eighth Avenue,  34th Floor, New  York, NY  10018, 
www.jamsadr.com, 800-352-5267; or any other company selected by mutual agreement of the parties. If both AAA 
and  JAMS  cannot  or  will  not  serve  and  the  parties  are  unable  to  select  an  Administrator  by  mutual  consent,  the 
Administrator  will  be  selected  by  a  court.  You  get  to  select  the  Administrator  if  you  give  us  written  notice  of  your 
selection with your notice that you are electing to arbitrate any Claim or within  twenty (20) days after we give you 
notice that we are electing to arbitrate any Claim (or, if you dispute our right to require arbitration of the Claim, within 
twenty (20) days after that dispute is finally resolved). If you do not select the Administrator on time, we may do it. 
Notwithstanding any language in this Arbitration Provision to the contrary, no arbitration may be administered, without 
the consent of all parties to the arbitration, by any Administrator that has in place a formal or informal policy that is 
inconsistent with subsection (d) below captioned “No Class Actions” (the “Class Action Waiver”). 

(iii) 

“Claim” means any claim, dispute or controversy between you and us that in any way arises from or 
relates to this Agreement or the Account, including disputes arising from actions or omissions prior to the date of this 
Agreement. “Claim” has the broadest reasonable meaning, and includes initial claims, counterclaims, cross-claims 
and third-party claims. It includes disputes based upon contract, tort, consumer rights, fraud and other intentional 
torts,  constitution,  statute,  regulation,  ordinance,  common  law  and  equity  (including  any  claim  for  injunctive  or 
declaratory relief). However, it does not include disputes about the validity, enforceability, coverage or scope of this 
Arbitration Agreement or any part thereof (including, without limitation, the Class Action Waiver, the final sentence in 
Section 19.(j) under the caption “Survival, Severability, Primacy” and/or this sentence); all such disputes are for a 
court and not an arbitrator to decide. However, any dispute or argument that concerns the validity or enforceability of 
the Agreement as a whole is for the arbitrator, not a court, to decide. 

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(c)  Starting Arbitration: To start an arbitration, you or we must give written notice of an election to arbitrate. This 
notice may be given after a lawsuit has been filed and may be given in papers or motions in the lawsuit. If such a 
notice is given, the Claim shall be resolved by arbitration under this Arbitration Provision and the applicable rules of 
the Administrator then in effect. We will not elect to arbitrate any individual action brought by you in small claims court 
or your state’s equivalent court, when such action is transferred, removed, or appealed to a different court 

(d)  No Class Actions: Notwithstanding any language herein to the contrary, if you or we elect to arbitrate 
a Claim, neither you nor we will have the right to: (i) participate in a class action in court or in arbitration, 
either as a class representative, class member or class opponent; (ii) act as a private attorney general in 
court  or  in  arbitration;  or  (iii)  join  or  consolidate  your  Claims  with  claims  of  any  other  person,  and  the 
arbitrator  shall  have  no  authority  to  conduct  any  such  class,  private  attorney  general  or  multiple-party 
proceeding.  

(e)  Location and Costs: Any arbitration hearing that you attend will take place in a location that is reasonably 
convenient for you. If you cannot obtain a waiver of the Administrator’s or arbitrator’s filing, administrative, hearing 
and/or other fees, we will consider in good faith any request by you for us to bear such fees. We will pay for our own 
attorneys,  experts  and  witnesses  and  will  pay  the  reasonable  fees  and  charges  of  your  attorneys,  experts  and 
witnesses if you win the arbitration. We will pay any of the Administrator’s or arbitrator’s filing, administrative, hearing 
and/or other fees, and the fees and charges of your attorneys, experts and witnesses, if and to the extent we are 
required to pay such fees and charges by law or in order to make this Arbitration Provision enforceable. 

(f)   Arbitrator Selection: The arbitrator will be appointed by the Administrator in accordance with the rules of the 
Administrator.  However,  unless  the  parties  agree  otherwise,  the  arbitrator  must  be  a  retired  or  former  judge  or  a 
lawyer with at least ten (10) years of experience.  

(g)  Discovery;  Getting  Information:  In  addition  to  the  parties’  rights  under  the  Administrator’s  rules  to  obtain 
information prior to the hearing, either party may ask the arbitrator for more information from the other party. The 
arbitrator will decide the issue in his or her sole discretion, after allowing the other party the opportunity to object.  

(h)  Effect of Arbitration Award: Any court with jurisdiction may enter judgment upon the arbitrator’s award. The 
arbitrator’s award will be final and binding, except for: (1) any appeal right under the Federal Arbitration Act, 9 U.S.C. 
§1 et seq. (the “FAA”); and (2) Claims involving more than $50,000. For Claims involving more than $50,000, any 
party may appeal the award to a three-arbitrator panel appointed by the Administrator, which will reconsider anew 
any aspect of the initial award that is appealed. The panel’s decision will be final and binding, except for any appeal 
right  under  the  FAA.  The  costs  of  any  appeal  will  be  borne  in  accordance  with  subsection  (e)  above  captioned 
“Location and Costs.”  

(i)   Governing Law: This Agreement governs transactions involving  interstate commerce and accordingly  this 
Arbitration Provision shall be governed by the FAA and not by any state law concerning arbitration. The arbitrator 
shall  follow  applicable  substantive  law  to  the  extent  consistent  with  the  FAA,  applicable  statutes  of  limitation  and 
applicable  privilege  rules,  and  shall  be  authorized  to  award  all  remedies  available  in  an  individual  lawsuit  under 
applicable substantive law, including, without limitation, compensatory, statutory and punitive damages (which shall 
be  governed  by  the  constitutional  standards  applicable  in  judicial  proceedings),  declaratory,  injunctive  and  other 
equitable relief, and attorneys’ fees and costs. Upon the timely request of either party, the arbitrator shall write a brief 
explanation of the basis of his or her award. The arbitrator will follow rules of procedure and evidence consistent with 
the FAA, this Arbitration Provision and the Administrator’s rules.  

(j)   Survival,  Severability,  Primacy:  This  Arbitration  Provision  shall  survive  the  termination  of  this  Agreement, 
your  fulfillment  or  default  of  your  obligations  under  this  Agreement  and/or  your  or  our  bankruptcy  (to  the  extent 
permitted by applicable law). In the event of any conflict or inconsistency between this Arbitration Provision and the 
Administrator’s  rules  or  this  Agreement,  this  Arbitration  Provision  will  govern.  If  any  portion  of  this  Arbitration 
Provision,  other  than  the  Class  Action  Waiver,  is  deemed  invalid  or  unenforceable,  the  remaining  portions  shall 
nevertheless  remain  in  force.  If  a  determination  is  made  that  the  Class  Action  Waiver  is  unenforceable,  only  this 
sentence of the Arbitration Provision will remain in force and the remaining provisions shall be null and void, provided 
that the determination concerning the Class Action Waiver shall be subject to appeal.  

(k)  Amendment/Termination: Notwithstanding any provision of this Agreement to the contrary, we will not amend 
this Arbitration Provision in a manner that adversely affects your rights or responsibilities in a material manner unless 
we give you a right to reject the amendment and/or the Arbitration Provision in its entirety. 

(l)   Special Payment: If (i) you submit a Claim Notice on your own behalf (and not on behalf of any other party) 
in accordance with Section 17., captioned “Notice and Cure” (including the timing requirements thereof); (ii) we refuse 
to provide you with the relief you request; and (iii) an arbitrator subsequently determines that you were entitled to 
such relief (or greater relief), the arbitrator shall award you at least $7,500 and will double the attorneys’ fees to which 
you would otherwise be entitled.  

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(m)  RIGHT  TO  REJECT  ARBITRATION.  You  may  reject  this  Arbitration  Provision  by  mailing  a  special 
rejection  notice  to  OpenSky  Card  Services,  P.O.  Box  9224,  Old  Bethpage,  NY  11804-9224,  attention 
Arbitration  Rejection,  within  sixty  (60)  days  after  you  apply  for  your  Account.  Any  rejection  notice  must 
include your name, address, telephone number, and Account number. 

20. Changes to this Agreement. Subject to applicable law, including the Truth in Lending Act and Regulation Z: 

(a) You agree that we may, in our sole discretion, from time to time change any of the terms and conditions of, 
or  add  new  terms  and  conditions  to,  this  Agreement,  including  changing  the  formula  used  to  compute  Interest 
Charges  (including  terms  and  conditions  increasing  margins,  switching  to  a  fixed  APR,  changing  the  method  of 
computing Balances Subject to Interest Charge), increasing or adding Fees (including annual or other periodic fees) 
or changing your Credit Limit.  

(b) Any such changes will generally be effective immediately unless we are required by applicable law or elect, 
in our discretion, to provide you with advance written notice of the changes (and/or the reasons for the changes), 
afford you the right to reject the change and/or obtain your consent to the change (whether by written agreement, 
through the initiation of a Transaction after a specified date or through some other means). In such instances, those 
changes will be effective if, when and as stated in such notice. 

(c) Any changes may apply to your outstanding Account balance on the effective date of the change and to any 

future balances created after that date.  

(d) No change to any term of this Agreement will excuse  your obligation to pay  all  amounts owing under this 

Agreement. 

21. Governing Law. This Agreement is entered into between you and us in the State of Maryland, and your Account 
and this Agreement are established in Maryland. Except as set forth to the contrary in the Arbitration Provision, any 
claim, dispute or controversy arising from or relating to your Account or this Agreement, whether based in contract, 
tort, fraud or otherwise and regardless of the place of your residence, is governed by, and construed in accordance 
with, the laws of the State of Maryland, without regard to Maryland’s conflict of laws principles, and applicable federal 
laws and regulations. 

22. Unauthorized Use of Your Card or Account. You agree to promptly notify us if you believe that your Card has 
been lost or stolen or that someone has used or may use your Card or Account without your permission by calling 
the Customer Service or writing to the OpenSky Card Services, P.O. Box 9224, Old Bethpage, NY  11804-9224. TO 
HELP PROTECT AGAINST THE UNAUTHORIZED USE OF YOUR CARD OR ACCOUNT, YOU SHOULD NEVER 
WRITE  YOUR  PERSONAL  IDENTIFICATION  NUMBER  (PIN)  ON  YOUR  CARD  OR  KEEP  ANY  WRITTEN 
RECORD OF IT ON ANY MATERIAL THAT IS KEPT WITH YOUR CARD. 

You agree to assist us in determining the facts, circumstances and other pertinent information related to any loss, 
theft or possible unauthorized use of your Card or Account and to comply with such procedures as we may reasonably 
require in connection with our investigation, this may include the filing of one or more reports with the appropriate law 
enforcement  authorities.  Subject  to  applicable  law,  you  acknowledge  and  agree  that  we  may  terminate  our 
investigation  if  you  fail  to  cooperate  to  provide  us  with  assistance  or  to  comply  with  such  procedures,  and  we 
otherwise have no information or knowledge of facts confirming the unauthorized use of your Card or Account. In 
such circumstances, we  will deem any such  use as  having been authorized by  you and  you  will be  liable  for the 
amount of any Transactions plus Interest Charges and Fees incurred with any such use. Subject to applicable law, 
you also acknowledge and agree that unauthorized Card or Account use does not include use of your Card or Account 
by any person to whom you have given authority to use your Card or Account, even if you have attempted to limit the 
scope of the authority you have granted to any Authorized User and such Authorized User has exceeded his or her 
authority. You will be liable for all use of the Account or any Card by any such Authorized User, even if that person 
uses the Account or Card in ways you did not intend. 

23. Verifications. We verify your age, social security number, residence and other identifying information as required 
by applicable law. 

24.  Re-evaluation  of  Financial  Condition  and  Credit  History.  We  may  re-evaluate  your  financial  condition  and 
investigate any information you provided on your Card application at any time, and in the course of doing so, we may 
obtain a current credit report and ask you for any additional information about your financial condition by completing 
a Personal Financial Account Statement or such other form that we request from time to time. You authorize us and 
give  us  your  permission  to  obtain  any  information  about  you  that  we  believe  would  be  beneficial  to  facilitate  our 
determination  of  your  eligibility  for  the  Account  and  the  Card,  including  credit  reports  from  consumer  reporting 
agencies.  

25. Privacy Notice. We respect the privacy of information about you and your Account. Please read our Privacy Notice 
as it is part of this Agreement. We provide our Privacy Notice to all new customers and to current customers on an 

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annual  basis.  Changes  may  be  made  to  our  Privacy  Notice.  Our  current  Privacy  Notice  is  always  available  at 
www.capitalbankmd.com. 

26. Reporting Information to Credit Bureaus; Identity Theft. We may report information about your Account to credit 
bureaus. Late payments, missed payments or other defaults on your Account may be reflected in your credit report 
even if funds from your pledged deposit account are applied to  balances owed. You have the right to dispute the 
accuracy  of  information  we  have  reported.  If  you  believe  that  any  information  about  your  Account  that  we  have 
reported to a credit bureau is inaccurate, or if you believe that you have been the victim of identity theft in connection 
with your Account or in connection with any other loan or extension of credit made by us, write us at: OpenSky Card 
Services, Attn. Fraud/Dispute Department, P.O. Box 9224, Bethpage, NY  11804-9224. Please include your name, 
address, Account number, telephone number and a brief description of the problem. If available, please include a 
copy of the credit report in question. If you believe that you have been the victim of identity theft, submit an identity 
theft affidavit or identity theft report and, if applicable, and you have this information; include the number of the other 
loan or extension of credit made by us. 

27. Questions. If you have any questions about this Agreement or your Card, please contact Customer Service at the 
number on your statement or on the back of your Card. 

28. Account Settlements. Any settlement of  your Account balance for less than what is owed requires our written 
agreement. 

29. Bankruptcy Notification. All bankruptcy notices and related correspondence to us should be sent to the following 
address: OpenSky Card Services, Attn. Bankruptcy Department, P.O. Box 9224, Bethpage, NY  11804-9224. 

30. Change of Address and Other Information. You must notify us of any changes to your name, mailing or email 
address, home, cell or business phone number, employment or income within 15 days. You can update your contact 
information by accessing MyAccount, our online Cardholder Center, or by writing to OpenSky Card Services, PO Box 
9224, Old Bethpage, NY 11804-9224. We will rely on your mail and email addresses as they appear on our records 
for any and all Account communications we send to you unless and until either you or, in the case of your mailing 
address, the U.S. Postal Service, notifies us of a change of address and we have had a reasonable opportunity to 
act on such notice. 

31. Correspondence. To the extent permitted under  applicable  law, any  written  or electronic correspondence  you 
send to us will not be effective until we receive and have had a reasonable opportunity to act on such correspondence. 
Any  written or electronic correspondence  we send to  you  will, however, be effective  and deemed delivered when 
mailed to you at your mail address (or your email address if you have authorized electronic communications) as it 
appears on our records. 

32.  Telephone  Monitoring  and  Recording.  You  agree  that  we  may  monitor,  record,  retain  and  reproduce  your 
telephone calls and any other communications you provide to us, regardless of how transmitted to us, for training 
and  quality  control  purposes  and  as  evidence  of  your  authorization  to  act  in  connection  with  any  Transaction  or 
service  contemplated  by  this  Agreement.  However,  we  are  not  under  any  obligation  to  monitor,  record,  retain  or 
reproduce such items, unless required to do so by applicable law. 

33. Waiver of Rights. Except as may be prohibited by law or regulation, you agree to waive any right you may have 
for us to act promptly in bringing any action(s) against you (known as diligence); to demand payments of amounts 
due (known as presentment); to obtain an official certification of non-payment (known as protest); and to give notice 
that amounts due have not been paid (known as notice of dishonor or notice of default and non-payment). 

34. Third-Party Claims or Defenses. Except as otherwise provided in this Agreement and as required by applicable 
law, we will not be responsible for any claim or defense you may have against any third party that arises out of or in 
connection with any Transaction. 

35. Assignment. You may not sell, assign or transfer your Account or Card or any of your rights and obligations under 
this Agreement. We may, however, sell, assign or transfer your Account, or any balance due thereunder, and/or any 
of our rights and  obligations under this Agreement, to another bank or other third party  without prior notice to, or 
consent by, you, which notice or consent is hereby waived. Should we do so, then to the extent of any such sale, 
assignment or transfer, that bank or third party will take our place in this Agreement. 

36.  Severability.  Except  as  provided  otherwise  with  respect  to  the  Arbitration  Provision,  if  any  provision  of  this 
Agreement is deemed to be void or unenforceable by a court of competent jurisdiction or any governmental agency, 
that provision will continue to be enforceable to the extent permitted by that court or agency, and the remainder of 
that  provision  will  no  longer  be  considered  as  part  of  this  Agreement.  All  other  provisions  of  this  Agreement  will, 
however, remain in full force and effect. 

37. Section Headings. The Section headings used in this Agreement are for convenience of reference only and do 
not in any way limit or define your or our rights or obligations hereunder. 

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38. Entire Agreement. You acknowledge that the terms and conditions set forth in this Agreement and on your card 
carrier constitute the entire agreement between you and us with respect to the Account, and supersede and may not 
be contradicted by evidence of any prior or contemporaneous written or oral communications and understandings 
between you and us concerning the Account or the Card.  

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 Account Statement 

If you think there is an error on your statement, write to us at: 

OpenSky Card Services 
P.O. Box 9224 
Old Bethpage, NY 11804-9224 

In your letter, give us the following information: 

  Account information: Your name and account number. 
  Dollar amount: The dollar amount 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. 
  At least 3 business days before an automated payment is scheduled, if you want to stop payment on the 

amount you think is wrong. 

You must notify us of any potential errors in writing. You may call us, but if you do we are not 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 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 or explain to you 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 in question, or report you as delinquent on that amount. 
  The charge in question may remain on your statement, and we may continue to charge you interest on that 

amount. 

  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. 

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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  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.) 

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. 

3. You must not yet have fully paid for the purchase. 

If all of the criteria above are met and you are still dissatisfied with the purchase, contact us in writing at: 

OpenSky Card Services 
P.O. Box 9224 
Old Bethpage, NY 11804-9224 

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. 

Additional Disclosures 

CALIFORNIA RESIDENTS: You may apply for an account in your name alone, regardless of your marital status.  

NEW YORK RESIDENTS: You may contact the New York State Banking Department at 1-877-

226-5697 to obtain a comparative listing of all credit card rates, fees and grace periods. 

OHIO RESIDENTS: The Ohio rules against discrimination require that all creditors make credit equally available 
to all creditworthy customers and that credit reporting agencies maintain separate credit histories on each individual 
upon request. The Ohio Civil Rights Commission administers compliance with this law. 

VERMONT, RHODE ISLAND AND NEW YORK RESIDENTS: A credit report may be requested in connection 
with your application. At your request, Capital Bank (CNB) will tell you whether or not a credit report was obtained 
and, if so, the name and address of the consumer reporting agency that furnished the report. CNB may also request 
credit reports from time to time in connection with any update, renewal or extension of the credit account, whenever 
CNB believes that such action is appropriate. 

MARRIED WISCONSIN RESIDENTS: No provisions of any marital property agreement, unilateral statement under 
§766.59 of the Wisconsin Statutes, or court decree under §766.70 will adversely affect a creditor’s interest unless, 
prior to the time credit is granted, the creditor is furnished a copy of the agreement, statement or decree or has actual 
knowledge of the adverse provision. If an Account is opened for you, you must notify your spouse about the Account 
before any payment on the Account is due. YOUR SIGNATURE CONFIRMS THAT CREDIT EXTENDED UNDER 
THIS ACCOUNT WILL BE INCURRED IN THE INTEREST OF YOUR MARRIAGE OR FAMILY. 

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Customer Identification Program 

In accordance with the USA PATRIOT Act, Federal law requires all financial institutions to obtain, verify, and record 
information that identifies each individual or entity opening an account. This  includes all personal and commercial 
accounts. 

What This Means to Our Customers 

When you open an account, you will be asked for your name, address, social security or tax identification number, 
date of birth (if applicable) and other information that will allow us to identify you. You will also be asked to furnish 
your driver’s license or other identifying documents. We are required to follow this procedure each time an account 
is opened, even if you are a current customer. Thank you for helping us to follow this Federally-mandated procedure. 

You can view a complete copy of the current Account Agreement on our website at  www.openskycc.com.  
For Further Information: Call the Customer Service number shown on your statement or on the back of your 
Card if you need more information.  

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