Business Visa Credit Card  
Account Agreement 

2303 South Center Road 
Burton, MI  48519 
Ph 810-715-3542 
TF 800-882-6457 
Fx 810-600-2590 
www.elgacu.com 

This  Business  Visa  Credit  Card  Account  Agreement  (“Agree-
ment”)  given  to  you  when  you  opened  your  Card  account  (“Ac-
count”)  will  govern  your  Business  Visa  Credit  Card  and  Account 
issued  by  ELGA  (“Credit  Union”).  In  this  Agreement,  the  words 
"you," "your," "yours," "applicant," and "Borrower" mean any per-
son  who  signs  the  application  for  this  Account,  any  joint  obligor, 
guarantor,  authorized  user,  or  the  person  whose  name  is  em-
bossed on the Card. The words "we," "us," "our," and "Credit Un-
ion" mean ELGA Credit Union. The word "Card" means any one 
or  more  credit  cards  issued  under  this  Account.  If  you  sign  an 
application for this Account or sign or use any Card or PIN, or 
allow others to use the Card or PIN, you and they will have ac-
cepted  this  Agreement  just  as  if  you  and  they  signed  it,  and 
you  and  they,  jointly  and  severally,  will  be  bound  by  the  fol-
lowing terms and conditions which will govern this Account. 

1.  You Promise to Pay 
You  promise  to  pay  us  all  amounts,  plus  any  Interest  Charges, 
which  arise  from  use  of  the  Card  or  Account  by  you  or  any  other 
person,  and  to  be  jointly  and  severally  liable  with  such  a  person, 
unless such other person does not have actual, implied, or appar-
ent  authority  for  such  use,  and  you  received  no  benefit  from  the 
use. You promise to pay us either by direct payment or by automat-
ic transfers from shares or by payroll deduction. 

2.  Account Access 

a.  Purchases, Cash Advances, and Balance Transfers. 
You must sign the Card to use it. Once you have signed the Card, 
you  can  use  it  to  buy  or  lease  goods,  services,  or  insurance 
wherever the Card is honored, up to the full amount of your Credit 
Line.  You may  use  your  Account  to get cash  advances  from  us. 
You may also use your Card to get a cash advance from partici-
pating financial institutions and to access your line of credit at au-
tomatic teller machines (“ATMs”) within the VISA network or any 
other ATMs.  

b.  VISA Convenience Checks.  
If  we  approve,  you  may  obtain  advances  under  your  Account  by 
writing preprinted VISA convenience loan checks that we supply to 
you. Your use of loan checks will be shown either as a purchase, 
cash advance, or balance transfer on your monthly statement. We 
may  not  honor  your  loan  check  if:  your  check  is  post-dated;  pay-
ment of the check would exceed your Credit Line; a check is signed 
by  person  without  authorized  access;  the  amount  of  the  check  is 
less  than  the  minimum  required  amount;  your  Account  has  been 
terminated or suspended, or any drafts have been reported lost or 
stolen.  You  may  stop  payment  on  a  loan  check  if  you  provide  us 
with the exact information describing the check. If you give us incor-
rect  information,  we  will  not  be  responsible  for  failing  to  stop  pay-
ment.  You  understand  there  may  be  a  charge  for  each  stop  pay-
ment order requested. Our liability for a wrongful dishonor is limited 
to your actual charges; however, a dishonor for the reasons stated 
above is not a wrongful dishonor. Only the person whose name is 
printed  on  a  convenience  check  may  sign  it.  All  convenience 
checks must be written in U.S. dollars. We will not certify a conven-
ience check. You may write these checks for any amount providing 
your  total  outstanding  balance  does  not  exceed  your  available 
Credit Line and your credit card remains in good standing. We are 
entitled to return it unpaid if there is not enough available credit on 
your Account to pay it, if you are in default under this Agreement, if 
your card or convenience checks have been reported lost or stolen, 

or  if  the  convenience  check  is  post-dated.  A  VISA  convenience 
check  may  not  be  used  to  make  a  payment  on  your  VISA  credit 
card  account  or  any  other  loan  account  you  have  with  us.  The 
Credit  Union  shall  have  no  liability  for  any  convenience  check  re-
turned in excess of your Credit Line. 

3.  Credit Line  
If  we  approve  your  application,  this  Agreement  will  constitute  a 
revolving line of credit for an amount which will be the Credit Line 
under  your  Account.  We  will  advise  you  of  the  amount  of  your 
Credit  Line.  That  amount  will  be  the  maximum  amount  you  may 
have  outstanding  at  any  one  time.  You  agree  not  to  attempt  to 
obtain more credit than the amount of your Credit Line. However, 
if you temporarily exceed your Credit Line, you agree to repay the 
excess immediately, even if we have not yet billed you. Obtaining 
such credit does not increase your Credit Line. We retain the right 
to  increase  or  decrease  your  Credit  Line  at  any  time.  Any  in-
crease  or  reduction  in  the  amount  of  your  Credit  Line  will  be 
shown on your monthly statement or by separate notice together 
with  any  changes  in the applicable  Minimum  Monthly  Payments. 
Your eligibility for this Credit Line is determined by our loan policy 
and may be terminated at our sole discretion, without demand or 
notice. You may close your Credit Line at any time by notifying us 
in writing and returning all Cards cut in half. If you terminate this 
Agreement  or  if  we  terminate  or  suspend  your  credit  privileges, 
the provisions of this Agreement and your liability hereunder shall 
otherwise remain in full force and effect until you have paid us all 
sums due us under this Agreement and returned all Cards. 

4.  Minimum Monthly Payment 
We will mail you a statement every month if your Account has a 
balance. You agree that you will pay each month not less than the 
minimum monthly payment on or before the closing date. The min-
imum  monthly  payment  will  be  3.0%  of  your  outstanding  balance 
shown  on  your  statement  (“New  Balance”),  or  $10,  whichever  is 
greater. If your outstanding balance is less than $10, you agree to 
pay  the  balance  in  full.  In  addition  to  the  minimum  monthly  pay-
ment,  you  agree  to  pay  any  “Overlimit  Amount”  and  any  amount 
past  due  shown  on  your  statement  each  month  by  the  due  date 
shown on your Statement. You may pay in full for all your purchas-
es  and  cash  advances  each month,  or  you  may  repay  in  monthly 
installments. We can accept late payments or partial payments, or 
checks,  drafts,  or  money  orders  marked  “payment  in  full”  without 
prejudice to our rights under this Agreement, which are hereby ex-
plicitly  reserved.  A  credit  posting  from  a  merchant  or  reversal  of 
fees does not constitute a minimum payment. Payments will be ap-
plied first to interest and to fees, then to purchase balances, then to 
cash  advance  and  balance  transfer  balances,  and  finally  to  any 
other  charges  or  amounts  owed.  The  minimum  monthly  payment 
may  be  allocated  at  the  Credit  Union’s  discretion  to  pay  off  lower 
rate  balances,  such  as  promotional  offers,  before  higher  rate  bal-
ances, such as cash advances or purchases. Payments in excess 
of  the  minimum  monthly  payment  will  be  allocated  first  to  higher 
rate balances, as applicable. From time to time, we may allow you 
to skip your minimum monthly payment due. If you choose to skip 
that  payment,  Interest  Charges  will  continue  to  accrue  in  accord-
ance with this Agreement. Payments received at:  ELGA Credit Un-
ion,  2305  S.  Center  Rd.,  Burton,  MI  48519,  at  or  before  5:00  PM 
Eastern Time on any business day will be credited to your Account 
as  of  that  date;  payments  received  by  mail  at  that  address  after 

© 2014 Farleigh Wada Witt. All rights reserved. 

Business Visa Credit Card Account Agreement • July 2014 • 1  

 
 
 
ELGA Credit Union (cid:1) Business Visa Credit Card Account Agreement 

5:00 PM Eastern Time or on a weekend will be posted to your Ac-
count as of the next business day. 

5.  Security Interest 
By signing your application, to secure your Account, you granted us 
a  purchase  money  security  interest  under  the  Michigan  Uniform 
Commercial  Code  in  any  goods  you  purchase  through  your  Ac-
count. If you default, we will have the right to recover any of these 
goods that have not been paid for through application of your pay-
ments in the manner described in Section 4. In addition, you grant-
ed  us  a  security  interest  in  all  your  shares  and  deposits,  present 
and future, and all accounts (except Individual Retirement Accounts 
and Keogh Accounts) with the Credit Union to secure your Account 
and agree, upon default, the Credit Union may apply all that is se-
cured to pay any amounts due under this Agreement, without fur-
ther  notice  to  you.  You  further  agree  that  collateral  securing 
other loans with the Credit Union (except loans secured by re-
al property) also secures this Account. 

6.  Periodic Statements 
Each month, if your outstanding balance exceeds $1, we will send 
you  a  statement  showing  new  purchases,  cash  advances,  pay-
ments, and credits made to your Account during the billing period, 
your  Previous  Balance,  your  "Total  New  Balance,"  any  Interest 
Charge,  and  any  other  charges.  Your  statement  also  will  identify 
the  remaining  Credit  Line  available  and  the  Minimum  Monthly 
Payment  you  must  make  for  that  billing  period  and  the  date  it  is 
due. For statement verification purposes, you agree to retain copies 
of  transaction  slips  resulting  from  each  purchase,  each  advance, 
and  other  transaction  on  your  Account.  Unless  you  notify  us  of  a 
billing error as described below, you accept your monthly statement 
as an accurate statement of your Account with us. 

7.  Circumstances Under Which an Interest Charge 

Will Be Imposed 

The total outstanding balance of purchases, balance transfers, and 
cash advances in the Account on the closing date of a billing peri-
od,  including  any  Interest  Charge,  will  be  shown  on  the  Periodic 
Statement for that billing period as the "New Balance”. 

a.  Cash Advances and Balance Transfers.  
We begin charging an Interest Charge on cash advances and bal-
ance transfers from the date of each transaction. There is no time 
period  within  which  to  pay  to  avoid  a  periodic  Interest  Charge  on 
cash advances or balance transfers. 

b.  Purchases.  
Your  due  date  is  at  least  25  days  after  the  close  of  each  billing 
period. An Interest Charge will be imposed on the portion of pur-
chases  included  in  the  New  Balance  that  is  not  paid  by  the  due 
date.  This  “grace  period”  allows  you  to  avoid  an  Interest  Charge 
on purchases for a billing period. If you do not pay the New Bal-
ance for purchases within the grace period, your Interest Charge 
will accrue on any unpaid purchase transactions from the first day 
of the billing period in which the payment is due. 

8.  Method Used to Determine the Balance on 

Which the Interest Charge May Be Computed 
and Amount of Interest Charge  

The  Credit  Union  figures  the  Interest  Charge  on  your  Account  by 
multiplying  the  "Average  Daily  Balance"  of  purchases,  balance 
transfers,  and  cash  advances  for  your  Account  (including  current 
transactions)  by  the  Monthly  Periodic  Rate.  To  get  the  "Average 
Daily  Balance"  we  take  the  beginning  balance  of  your  Account 
each day, add any new purchases or cash advances, and subtract 
any  payments  or  credits,  unpaid  Interest  Charge  and  unpaid  late 

charges. This gives us the daily balance. Then, we add up all the 
daily balances for the billing period and divide the total by the num-
ber of days in the billing period. However, current transactions are 
excluded  from  the  Purchase  balance.  This  gives  us  the  "Average 
Daily Balance."  To get the “Monthly Periodic Rate,” we divide the 
Annual Percentage Rate in effect for the billing period by 12.  

9.  Periodic Rate and Corresponding Annual 

Percentage Rate  

a.  Standard Rates.  
The  Monthly  Periodic  Rate  is  1.075%  and  corresponding  Annual 
Percentage Rate is 12.90%.  

b.  Introductory Rates.  
At our discretion, we may offer you an introductory or promotional 
Annual  Percentage  Rate  for  your  Account.  Any  introductory  or 
promotional Annual Percentage Rate will be subject to the terms of 
the offer and this Agreement. We will provide you with information 
on  the  offer,  including  the  time  period  the  introductory  or  promo-
tional Annual Percentage Rate is in effect in the materials that we 
send to you about the offer after you receive your Credit Card. 

c.  Penalty Rate. 
If we do not receive a payment within 60 days of the date it is due, 
a penalty Annual Percentage Rate of 17.90% will be applied to all 
balances  (current  and  future)  on  your  Account.  If  you  make  six 
consecutive payments on or before their due dates, we will adjust 
your Annual Percentage Rate to the standard rate that would oth-
erwise apply to your Account pursuant to this Agreement.  

10.  Conditions Under Which Other Charges  

May Be Imposed  

You agree to pay the following fees and charges on your Account: 

a.  Late Fee.  
If  we  do  not  receive  your  full  minimum  payment  on  or  before  the 
due date, you agree to pay a late fee of up to $20. 

b.  Returned Item Fee.  
If  any  check  or  draft  we  receive  from  you  as  payment  for  any 
amount you owe to us is returned to us unpaid, you agree to pay a 
returned item fee of up to $20. 

c.  Card Replacement Fee.  
You agree to pay $5 for each replacement Card you request. 

d.  Photocopy Fee.  
You will pay $1 per page for each copy of a statement or sales draft 
you  request  (unless  the  request  relates  to  a  billing  error  that  we 
made). 

e.  Attorney's Fees and Costs.  
If you fail to make any payment when due or are otherwise in de-
fault  under  any  part  of  this  Agreement,  you  agree  to  pay  us  all 
costs to collect your Account, including court costs and reasona-
ble  attorney  fees  whether  or  not  there  is  a  lawsuit,  and  fees  on 
any  appeal  and  fees  for  bankruptcy  proceedings,  appeals,  and 
any  post-judgment  collection  services,  if  applicable.  These  fees 
and  costs  may  be  added  to  your  Account  balance  and  will  bear 
interest at the Annual Percentage Rate in effect at that time. 

11.  Conditions of Card Use  
The  use  of  your  Card  and  Account  are  subject  to  the  following 
conditions: 

a.  Use.  
Your Card and Account may be used only for valid and lawful pur-
poses. You may not use your Card (i) to make Purchases or obtain 
Cash Advances for any illegal transaction, or (ii) for any internet or 
online gambling transactions. If you use your Card for any illegal or 

© 2014 Farleigh Wada Witt. All rights reserved. 

Business Visa Credit Card Account Agreement  • July 2014 • 2 

ELGA Credit Union (cid:1) Business Visa Credit Card Account Agreement 

prohibited transaction, this Agreement also applies to such transac-
tion  and  you  agree  to  pay  any  and  all  amounts  related  to  such 
transaction  pursuant  to  the  terms  of  this  Agreement.  We  may,  at 
our sole discretion and without warning, restrict the use of or termi-
nate  your  Card  if  we  notice  excessive  use  of  your  Card  or  other 
suspicious activities or if we reasonably believe the Card is or has 
been used for one or more illegal or prohibited transactions. 

b.  Ownership of Cards.  
Any  Card  or  other  credit  instrument  or  device  which  we  supply  to 
you  is  our  property  and  must  be  returned  to  us,  or  to  any  person 
whom  we  authorize  to  act  as  our  agent,  or  to  any  person  who  is 
authorized  to  honor  the  Card,  immediately  according  to  instruc-
tions. The Card may be repossessed at any time in our sole discre-
tion  without  demand  or  notice.  You  cannot  transfer  your  Card  or 
Account to another person. 

c.  Honoring the Card.  
We  may  decline  to  honor  any  transaction  for  any  reason.  Neither 
we nor merchants authorized to honor the Card will be responsible 
for  the  failure  or  refusal  to  honor  the  Card  or  any  other  credit  in-
strument or device we supply to you. If a merchant agrees to give 
you  a  refund  or  adjustment,  you  agree  to  accept  a  credit  to  your 
Account in lieu of a cash refund. 

d.  Currency Conversion/International Transaction Fee.  
Purchases  and  cash  advances  made  in  foreign  countries  will  be 
billed to you in U.S. dollars. The currency conversion rate for inter-
national transactions as established by VISA International, Inc. is a 
rate  selected  by  VISA  from  the  range  of  rates  available  in  whole-
sale  currency  markets  for  the  applicable  central  processing  date, 
which rate may vary from the rate VISA itself receives, or the gov-
ernment-mandated  rate  in  effect  for  the  applicable  central  pro-
cessing  date.  In  addition,  you  will  be  charged  an  International 
Transaction Fee of up to 1% of the transaction amount for any card 
transaction made in a foreign country. 

e.  Notices and Payments.  
All notices will be sent to your address as shown in the application. 
You  agree  to  advise  us  promptly  if  you  change  your  mailing  ad-
dress.  All  payments  should  be  mailed  to  us  at  the  remittance  ad-
dress  shown  on  your  monthly  statements.  Payments  received  at 
that  address  will  be  credited  to  your  Account  as  of  the  date  re-
ceived. Written notices and inquiries to us must be sent to:  

ELGA Credit Union 
2305 S. Center Road 
Burton, MI 48519 

f.  Personal Identification Number.  
If  we  issue  you  a  Personal  Identification  Number  ("PIN")  for  use 
with  your  Card  in  accessing  your  line  of  credit  at  ATMs,  these 
numbers  are  issued  to  you  for  your  security  purposes.  These 
numbers are confidential and should not be disclosed to third par-
ties. You are responsible for safekeeping your PIN. You agree not 
to  disclose  or  otherwise  make  available  your  PIN  to  anyone  not 
authorized  to  sign  on  your  Account.  To  keep  your  Account  se-
cure, please do not write your PIN on your Card or keep it in the 
same place as your Card. 

12.  Loan Protection 
Loan  Protection  coverage  is  not  required  for  any  extension  of 
credit  under  this  Agreement.  However,  you  may  purchase  any 
loan  protection  available  through  us  and  have  the  monthly  fee 
added  to  your  outstanding  balance  as  purchases.  If  you  elect  to 
do so, we will give you the necessary disclosures and documents 
separately. 

13.  Default  
You will be in default under this Agreement if any of the following 
occur: (a) Any Minimum Monthly Payment is not made when due; 
(b) You  become  insolvent,  bankrupt,  or  you  die;  (c) You  violate 
any  part  of  this  Agreement,  or  any  other  agreement  with  us;  or 
(d) If we reasonably deem ourselves insecure with respect to your 
Account. Upon default, we may declare the entire unpaid balance 
immediately due and payable, and you agree to pay that amount 
plus  any  attorney's  fees  and  costs  we  incur,  including  fees  and 
costs in any appeal or bankruptcy proceeding. We can delay en-
forcing any right under this Agreement without losing that right or 
any other right. We will notify you in writing of any such action as 
soon as practical if it occurs. 

14.  Governing Law 
This Agreement will not take effect until it is approved by us. This 
Agreement shall be governed by the laws of the State of Michigan. 

15.  Severability  
If any provision of this Agreement is held invalid, the remaining pro-
visions that are severable shall remain in effect. 

16.  Unauthorized Card Transactions 
If you authorize anyone to use your Card in any manner, that au-
thority will be considered unlimited in amount and manner until you 
specifically revoke such authority by notifying the Credit Union im-
mediately. You are responsible for any transactions made by such 
persons  until  you  notify  us  that  transactions  and  access  by  that 
person are no longer authorized and you return all cards issued to 
you. If  you fail to maintain the security of the Card and the  Credit 
Union suffers a loss, we may terminate your Card and account ser-
vices immediately. You agree to notify us immediately of the loss, 
or the theft, or the use without your permission, of any Card or oth-
er credit instrument or device which we supply to you. You may be 
liable for any unauthorized use on the account. To the extent there 
are  less  than  ten  credit  cards  issued  to  you  for  business  use  by 
your officers, employees or authorized agents, you may not be lia-
ble for losses exceeding $50 related to credit transactions by unau-
thorized  parties,  before  you  notify  us  of  your  lost  or  stolen  credit 
card. If we have issued ten or more credit cards to you, you agree 
there is no limit on the losses related to any unauthorized use. You 
understand and agree that unauthorized use means the use of the 
card by someone other than you, your officers, authorized signers, 
employees or agents. If an employee uses the card in an unauthor-
ized manner, there is no limit on the potential liability for such use. 

17.  Credit Information/Financial Statements  
You  authorize  us  to  release  information  to  others  (e.g.,  credit  bu-
reaus, merchants, and other financial institutions) regarding the sta-
tus and history of your Credit Line. You agree to provide us, at any 
time we deem necessary, with a current financial statement and/or 
updated credit information upon request. We may investigate your 
credit directly or through a credit reporting agency. 

18.  Amendments  
We  reserve  the  right  to  change  any  terms  or  conditions  of  this 
Agreement at any time, to the extent permitted by applicable law. 
We  will  notify  you  of  the  changes  to  this  Agreement  as  required 
by law. 

19.  Acknowledgment 
You  understand  and  agree  to  the  terms  and  conditions  in  this 
Agreement.  You  acknowledge  that  you  have  received  a  copy  of 
this  Agreement.  This  Agreement  is  a  final  expression  of  the 
agreement between you and the Credit Union.  

© 2014 Farleigh Wada Witt. All rights reserved. 

Business Visa Credit Card Account Agreement  • July 2014 • 3