Finance Charge
the full amount of the new balance of purchases each month within 25 days 
of  your  statement  closing  date.  Otherwise,  the  new  balance  of  purchases, 
and subsequent purchases from date they are  posted to  your account, will 

Penalty Rates — A penalty rate will be imposed for all balances if you are 
sixty (60) or more days late in  making a payment. Your non(cid:31)penalty rate 
may be re(cid:31)established if you make subsequent on(cid:31)time payments for six (6) 
consecutive months.

—  You 
agree to notify us immediately in the event of the loss, theft or unauthorized 
use of your credit card. Contact us in writing at NASA Federal Credit Union, 
P.O. Box 1778, Bowie, Maryland 20717(cid:31)1778 or by calling (301) 249(cid:31)1800 
or 1888(cid:31)NASA(cid:31)FCU (627-2328). (cid:31)You may be liable for the unauthorized
use of  your credit card.  You will not be liable for unauthorized use that
occurs after you notify us of the loss, theft, or possible unauthorized use,
unless you are grossly negligent in the handling of your card. In any case,
your  liability  will  not  exceed  $50  for  unauthorized  cash  advances at 
ATMs.You will have no liability for unauthorized purchases made with  
your credit card. 

Credit Limit — When we approve your application, we will establish a self(cid:31)
replenishing line  of  credit for you  and notify you of its amount when  we 
issue the card. Your credit limit line appears on your billing statements. You 
agree not to let the account balance exceed this approved credit limit. Each 
payment you make on the account will restore your credit limit by the amount 
of the payment which is applied to principal. You may request an increase 
in your credit limit only by application to  us, which must be approved by 

raise your credit limit. By giving you written notice our loan committee or 

card and terminate this agreement. Good cause includes, but is not limited 
to your failure to comply with this agreement, or our adverse re(cid:31)evaluation 
of your creditworthiness. On the card anniversary date or at re(cid:31)issue, your 
membership must be in good standing. If any obligation to which you are a 
party with the credit union is in default, a new card may not be sent to you. 
This constitutes a termination of your credit line. You may also terminate this 
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you owe under this agreement. The cards remain our property and you must 
recover and surrender to us all cards upon request and upon termination of 
this agreement. Convenience checks are no longer valid if the account has 
been suspended or terminated.

Monthly Payment — We will mail you a statement every month showing 
your  previous  balances  of  purchases  and  cash  advances,  the  current 
transactions  on  your  account,  the  remaining  credit  available  under  your 
credit  limit,  the  new  balances  of  purchases  and  cash  advances,  the  total 

fees,  and  the  minimum  payment  required.  Every  month  you  must  pay  at 
least the minimum payment within 25 days of your statement closing date. 
The minimum monthly payment is  3% of your total new balance, or $25, 
whichever is greater. By separate agreement you may authorize us to charge 
the  minimum  payment  automatically  to  your share or share draft  account 
with  us.  You  may,  of  course,  pay  more  frequently,  pay  more  than  the 
minimum payment, or pay the total new balance in full, and you will reduce 

your credit limit, you must immediately pay the excess upon our demand. 
Payments made to your account will be applied in the following order: Fees 
and  Finance  Charges;  Previously Billed  Purchases;  Cash Advances;  New 
Purchases. We may accept checks marked “payment in full” or with words 
of similar effect without losing any of our rights to collect the full balance of 
your account with us.

calculated on the average daily principal balance. The principal balances of 
purchases and cash advances are determined each day during the statement 
period,  beginning  with  the  principal  portion  of  your  previous  balances, 
reduced  by  payments  you make  and  credits  we  apply,  and  increased  by 
purchases  and  cash  advances  you  make  and  debit  adjustments  we  make 
during  the  statement  period.  The  daily  principal  balances  are  totaled,  and 
divided by the number of days in the statement period, to produce separate 
average daily principal balances for purchases and cash advances to which 
the periodic rate is then applied. 

The Monthly Periodic Rates and corresponding Annual Percentage Rates are 
disclosed on the application.

Balance Transfer Transactions   — We  may  in  our sole  discretion make 
balance transfer offers to you or allow balance transfer transactions on your 
account in the future. We may in our sole discretion permit you to transfer 
balances from other accounts or loans with other credit card issuers or other 
lenders to this account, or other balance transfers we may allow.  If a portion 
of a requested balance transfer will exceed your available credit access line 
for balance transfers, we may process a partial balance transfer up to your 
available credit access line for balance transfers.

Transaction Fee for Cash Advances  —  For each cash  advance,  we  add 
an  additional  CHARGE of 3% of  the  advanced amount but not  less  than 
$5.00. This fee will be added to the cash advance balance. (The amount of the 
cash advance may include a surcharge that the owner of an ATM imposes). 
The cash transaction fee may cause the annual percentage rate on the billing 

annual percentage rate.

Default   —   You  will  be  in  default  if  you  fail  to  make  any  minimum  
payment  by  the  due  date  and  may  be  charged  a  late  fee. You  will  also 
be in default if your ability to repay us is materially reduced by a change in 
your employment, an increase in your obligations, bankruptcy or insolvency 
proceedings  involving  you,  your  death  or  if  the  value  of  our  security 
interest  materially  declines. You  will  be  in  default  if  you  fail  to  abide  by 
this agreement or you make any false or misleading statements in any credit 
application or update of credit information. If you are in default, we have the 
right to  suspend or terminate your credit line (See Credit Limit). We have 
the right to demand immediate payment of your full account balance if you 
default, subject to our giving you any notice required by law. To the extent 
permitted by law you will also be required to pay our collection expenses, 
including court costs and reasonable attorneys’ fees plus any fees incurred as 
a result of bankruptcy.

Default Rates — We will impose the default APR on your account if you are 
in default under any other agreement for any other account or loan with us, 
such as you fail to make a payment when due. 

Variable Rates — One or more APRs that apply to your account may vary 
with changes to the Prime Rate. When you have an APR that varies with 
changes to the Prime Rate, we calculate the APR by adding a margin to the 
Prime Rate published in The Wall Street Journal. The “Prime Rate” is the 
highest (U.S.) Prime Rate published in the Money Rates section of the The 
Wall Street Journal. The Prime Rate is merely a pricing index. It is not the 
lowest or the best interest rate available to a borrower at any particular bank 
at  any  given  time.  If The Wall  Street Journal  stops publishing  the  Prime 
Rate, we will select a similar reference rate and inform you on your billing 
statement or through a separate notice. A “margin” is the percentage we add 
to the Prime Rate to calculate the APR. A “business day” is any day that is 
not a weekend or federal holiday. The Rates and Fees Table shows which 
rates, if any, are variable rates. It also lists the margin for each variable rate 
and any minimum daily periodic rate and corresponding APR. We then add 
the applicable margin to that Prime Rate to get the APR. The daily periodic 
rate is calculated as described above. If our calculation results in a change to 
a daily periodic rate from the previous billing cycle because the Prime Rate 

that ends in the calendar month in which we made the calculation. If the 

charge and may have to pay a higher minimum payment.

Using The Card — To make a  purchase or cash advance, there are two 
alternative procedures to be followed. One is for you to present the card to 

and  sign  the  sales  or  cash  advance  draft  which  will  be  imprinted  with 
your card. The other is to complete the transaction by using your Personal 

Teller  Machine  or  other  type  of  electronic terminal  that  provides  access 
to  the  VISA  system.  The  monthly  statement  will  identify  the  merchant, 

but  sales, cash  advance,  credit or  other  slips cannot  be  returned  with  the 
statement. You will retain the copy of such slips furnished at the time of the 
transaction in order to verify the monthly statement. The Credit Union may 
make a reasonable charge for photocopies of slips you may request. If you 
wish to pay for goods or services over the Internet, you may be required to 
provide card number security information before you will be permitted to 
complete the transaction.

Foreign  Transactions  —  Purchases  and  cash  advances made  in  foreign 
currencies will be debited from your account in U.S. dollars. The exchange 
rate  between  the  transaction  currency  and  the  billing  currency  used  for 
processing international transactions is a rate selected by Visa from a range 
of rates available in wholesale currency markets for the applicable central 
processing  date.  This  may  vary  from  the  rate  Visa  itself  receives  or  the 
government(cid:31)mandated  rate  in  effect for  the  applicable central processing 
date in each instance plus an additional 1%. The exchange rate used on the 
processing date may differ from the rate that would have been used on the 
purchase date or cardholder statement posting date.

A fee of 1% of the amount of the transaction, calculated in U.S. dollars, will 
be imposed on all foreign transactions, including purchases, cash advances 
and  credits  to  your account. A foreign  transaction  is  any  transaction  that 
you complete or a  merchant completes on your card outside of the  U.S., 
with exceptions of U.S. military bases, U.S. territories, U.S. embassies and 
U.S. consulates.

Plan Merchant Disputes — We are not responsible for the refusal of any 

claims and defenses (other than tort claims) arising out of goods or services 
you purchase with the card only if you have made a good faith attempt, but 
have been unable to obtain satisfaction from the plan merchant, and (a) your 
purchase was made in response to an advertisement we sent or participated 
in sending you; or (b) your purchase cost more than $50.00 and was made 
from a plan merchant in your state or within 100 miles of your home. Any 
other disputes you must resolve directly with the plan merchant.

Security  Interest  —  To  secure  your  account,  you  grant  us  a  purchase 
money security interest under the Uniform Commercial Code in any goods 
you purchase  through  the account.  If you  default,  we  will  have  the  right 
to recover any of these  goods which have  not been paid for through our 
application of your payments in the manner described under the paragraph 
“Monthly Payment” as provided in this agreement.

As  a
pledge of your Credit Union shares (deposits). You pledge to us 
and grant a security interest in all joint and individual accounts 
you have  with us now and  in  the future, to  secure your VISA 
credit  card  account. You authorize us to apply  the balance  in 
these account(s) to pay any amounts due under this agreement 
if you should default.

Illegal Transactions Prohibited — You agree that you will not use your 
card for any transaction that is illegal under applicable federal, state, or local 
law.

Your account will also be secured by your pledged shares (deposits) and 
by the property described in any other security agreements signed with us, 
except for your home.

Returns and Adjustments — Merchants and others who honor the card 
may give credit for returns or adjustments, and they will do so by sending us 
a credit slip which we will post to your account. If your credits and payments 
exceed what you owe us, we will hold and apply this credit balance against 
future purchases and cash advances, or if it is $1.00 or more, refund it on 
your written request or automatically within six months.

Effect of Agreement — This Agreement is the contract which applies to all 
transactions on your account even though the sales, cash advance, credit or 
other slips you sign or receive may contain different terms. We may amend 
this Agreement from time to time by sending you the advance written notice 
required by law. Your use of the card thereafter will indicate your agreement 
to the Amendments. To the extent the law permits, and we indicate in our 
notice, Amendments will apply to your existing account balance as well as 
to future transactions.