91121  04/14/11  3:42 PM  Page 1

1
2
1
1
9
-
1
1
P
C

4
-
8
0
6
L
-
3
0
F

STATE FARM BANK(cid:0)
CREDIT CARD AGREEMENT AND
DISCLOSURE STATEMENT
This document and the table of Account-Opening Disclosures and other
information printed on the card carrier that accompanies this document
make  up  your  credit  card  agreement  with  State  Farm  Bank.  They  are
referred to together throughout this document as the Agreement. They
contain  important  terms  and  disclosures  regarding  your  credit  card
account. Please read them carefully and keep them for future reference.
You  will  be  bound  by  the  terms  of  the  Agreement  unless  you  cancel
your  account  within  30  days  after  you  receive  your  credit  card  and
before  you  or  someone  you  have  authorized  uses  your  credit  card  or
credit card account.
The Parties to this Agreement
In  this  Credit  Card  Agreement  and  Account  Disclosures  (this
“Agreement”),  the  words  “you”  and  “your”  refer  to  each  person  who
requests  that  we  establish  a  credit  card  account  (the  “Account”)  and
issue a Visa® credit card (a “Card”) to that person or for use by another
person.  If  two  or  more  persons  request  that  we  issue  credit  cards  on
the  same  card  Account,  the  words  “you”  and  “your”  mean  each  and
either  of  those  persons,  individually,  and  also  all  of  those  persons,
jointly  and  severally.  The  words  “we”,  “us”,  “our”  and  “State  Farm
Bank” mean State Farm Bank, F.S.B., a federal savings bank located in
Bloomington,  Illinois.  Definitions  of  additional  terms  are  contained  in
other paragraphs of this Agreement.
Your Acceptance of the Terms of this Agreement
If you apply for a Card from us, or use a Card we issue to you, or use
the account number associated with the Card, or if another person uses
the  Card  or  account  number  with  your  authorization,  you  will  be
deemed to have accepted and agreed to all of the terms and conditions
of this Agreement.
If  you  do  not  wish  to  be  bound  by  the  terms  and  conditions  of  this
Agreement, do not use the Card or authorize another person to use it.
Instead, cut all of the Cards in two and return them to us within 30 days
after you receive them.
How to Use Your Card
Subject  to  the  terms  of  this  Agreement,  we  will  make  loans  to  you  at
our offices in Bloomington, Illinois when you use your Card (which term
as  used  in  this  Agreement  includes  use  of  the  account  number
associated with your Card) as follows:
(a) Purchases. You may use your Card to purchase or lease goods or
services  (“Purchases”)  from  merchants  who  honor  Visa  credit
cards. Quasi-cash transactions, described below, are deemed to be
Cash Advances and not Purchases.

(b) Cash Advances.

(1) You  may  use  your  Card  to  obtain  a  Cash  Advance  at  most

banks that display the Visa logo.

(2) You  may  use  your  Card,  in  conjunction  with  the  personal
identification  number  (“PIN”)  we  will  issue  to  you,  to  obtain  a
Cash Advance at automated teller machines (“ATMs”) that bear
the Plus® logo. The operator of the ATM may add a surcharge to
the  amount  of  the  Cash  Advance  you  request.  If  so,  the
surcharge  will  be  part  of  the  Cash  Advance  charged  to  your
Account.

(3) You  may  use  your  Card  to  establish  overdraft  protection  on  a
checking account if permitted by your financial institution. You
obtain  a  Cash  Advance  each  time  your  Card  is  used  to  fund
such an overdraft.

(4) We may send you blank forms of convenience checks or cash
advance  checks  (“Convenience  Checks”  or  “Checks”)  from
time to time. If we do, you may use a Check to obtain a Cash
Advance  by  signing  and  completing  the  Check  in  accordance
with  the  terms  on  the  Check  and  any  written  materials  that
accompany it. You obtain a Cash Advance each time you use a
Check and we pay it when it is presented to us, including when
you use a Check to purchase or lease goods or services.

(5) You  may  obtain  a  Cash  Advance  when  you  use  your  Card  for
items  that  are  convertible  to  cash  or  similar  cash-like
transactions that we may designate from time to time, including
wire  transfer  money  orders,  other  money  orders,  travelers
checks, or foreign currency or tax payments (so-called “quasi-
cash”  transactions).  However,  your  Card  may  not  be  used  to
obtain, and we will not honor requests for, a Cash Advance in
the form of casino chips, bets or wagers, gaming transactions
(including Internet gambling), lottery tickets or the like.

(6) Certain  establishments  may  cash  your  personal  checks  upon
presentment of your Card. In the event we are required to pay
the  amount  of  a  check  cashed  in  this  manner  because  your
check is not paid for any reason, we may charge your Account
for  a  Cash  Advance  in  the  amount  of  the  check  and  any
processing charge we incur.

(c) Balance Transfers. You may use your Account to transfer balances
from  other  accounts  to  your  Account  with  us  (a  “Balance
Transfer”).  You  may  request  a  balance  transfer  by  completing  the
balance transfer portion of the credit application, by completing and
returning to us one of the balance transfer requests forms we may
send you from time to time, by writing a Balance Transfer check we
may send you or by writing or telephoning us. When you request a
balance transfer, we will write our check or transfer funds to your
other creditor. The amount of our check or funds transfer will be the
amount of your Balance Transfer. Balance Transfers are treated as
Purchases rather than Cash Advances for most purposes under this
Agreement.  However,  interest  charges  may  begin  to  accrue  as  of
the  date  a  balance  transfer  is  posted  to  your  Account.  Balance
Transfer  transactions  will  not  be  processed  if  made  payable  to
cash, to you, to any individual, to a deposit account, or to a State
Farm  Bank  credit  card  account.  If  such  a  Balance  Transfer  is
processed,  State  Farm  Bank  reserves  the  right  to  convert  the
transaction to a Cash Advance.

Credit Access Line
We  will  establish  a  credit  access  line  for  your  Account  from  time  to
time. Your initial credit access line is shown on the card carrier. Your
current credit access line will be shown on each monthly statement of
your Account. The total amount of credit outstanding on your Account
at any time must not be more than your then current credit access line.
We may also establish at any time a separate credit limit (as a sub-limit
within  the  overall  credit  access  line  for  your  Account)  for  Cash
Advances. If we do, your outstanding Cash Advances balance of your
Account  must  not  exceed  the  Cash  Advances  credit  limit  at  any  time.
We  may  set  similar  separate  sub-limits  for  other  portions  of  your
Account balance. We may change your credit access line or sub-limits
from time to time. We will attempt to notify you if we do, but the change
may be effective before you receive notice.
Exceeding Your Credit Access Line
If you request credit in any form which, if granted, would cause either
your total outstanding balance or your Cash Advances balance or other
applicable  sub-limit  (including,  in  either  case,  transactions  authorized
but not yet posted to your Account) to exceed your credit access line,
your  Cash  Advances  credit  limit,  or  any  other  credit  sub-limit  we
establish  for  your  Account,  whether  or  not  those  balances  were  more
than  the  respective  credit  access  line  or  credit  sub-limits  before  the
request, we may, refuse to honor the request or in our sole discretion,
we may honor the request and extend the credit. If we extend the credit,
you  will  not  be  charged  an  over-the-credit  access  line  fee,  and  you
agree to repay the credit and the interest and other charges on it as part
of  the  balance  of  your  Account  in  accordance  with  the  terms  of  this
Agreement.  We  may  extend  credit  that  exceeds  the  credit  access  line
and  any  credit  sub-limit  applicable  to  your  Account  on  one  or  more
occasions without waiving our rights. If we previously honored requests
for credit in excess of your credit access line, that does not mean we
will  or  must  honor  further  over-the-credit  access  line  requests.  If  we
refuse  to  honor  a  Check  or  Balance  Transfer  request,  we  may  advise
the  person  presenting  the  Check  or  Balance  Transfer  that  credit  has
been  refused  or  that  there  are  insufficient  funds  to  pay  the  Check  or
Balance Transfer.
INTEREST CHARGES
When Interest Begins to Accrue:
(a) Interest on Purchases. Except as provided in paragraph (b) below,
interest on each Purchase (including a Balance Transfer) will accrue
daily  from  and  including  the  transaction  date  until  the  date  each
Purchase is completely repaid according to the payment allocation
method then in effect. If the transaction date was in an earlier billing
cycle than the posting date, interest will accrue from and including
the first day of the billing cycle in which the transaction was posted.
(b) How to Avoid Paying Interest on Purchases. You can avoid paying
interest on Purchase (other than Balance Transfers) posted to your
Account  if  you  pay  the  entire  New  Balance  of  your  Account  each
month not later than the Payment Due Date shown on your Account
statement. If any portion of the balance of your Account is subject
to  an  introductory  or  promotional  rate,  to  avoid  paying  interest  on
Purchases  (other  than  Balance  Transfers)  posted  to  your  Account
during  the  billing  cycle  you  must  pay  the  entire  New  Balance
(including any part of the balance that is subject to the introductory
or  promotional  rate)  shown  on  the  statement  of  your  Account  for
that billing cycle by the Payment Due Date shown on the statement.
If you fail to pay the entire New Balance of your Account before the
Payment  Due  Date  in  any  month,  you  can  again  avoid  paying
interest on Purchase (other than Balance Transfers) in the manner
described above after you have paid the entire New Balance of your
Account by the Payment Due Date for two consecutive months.
(c) Interest  on  Cash  Advances.  Interest  on  each  Cash  Advance  will
accrue  daily  from  and  including  the  transaction  date  until  the  date
each Cash Advance is completely repaid according to the payment
allocation  method  then  in  effect.  The  transaction  date  for  Cash
Advances obtained by a Check is the date we process the Check.
(d) Interest that Accrues Prior to Payment in Full. Interest accrues on
the  unpaid  balance  of  your  Account  as  described  above  until  the
date  the  balance  is  paid  in  full,  except  to  the  extent  paragraph  (b)
above applies to Purchases posted to your Account. If you pay the
entire  New  Balance  shown  on  the  monthly  statement  of  your
Account by the Payment Due Date, you will receive a statement the
following  month  for  interest  that  accrued  from  the  closing  date  of
the  previous  billing  cycle  until  the  date  your  payment  in  full  was
posted to your Account, even if no new transactions are posted to
your Account after the closing date of the previous billing cycle. To
minimize  the  amount  of  this  interest,  pay  the  New  Balance  in  full
immediately upon receipt of your monthly statement.

Periodic Rates and Annual Percentage Rates of the Interest Charge:
The periodic rates we use to compute interest on your Account and the
corresponding annual percentage rates are described below:
(a) Rate of Interest Charge on Purchases. The daily periodic rate we
use  to  compute  the  interest  on  all  Purchases  balances  (including
Balance Transfers) is a variable rate which is the sum of the Prime
Rate  plus  a  margin  expressed  as  a  percentage,  divided  by  365,
except  as  otherwise  provided  below  for  certain  introductory  rates
and certain promotional rates. 
(1) Introductory  Rate.  The  daily  periodic  rate  we  use  to  compute
interest  on  all  Purchases  or  Balance  Transfer  offers  is  the

introductory rate shown on the card carrier. The corresponding
annual  percentage  rate  is  shown  on  the  Account-Opening
Disclosures on the card carrier. If you abide by the terms of this
Agreement, the introductory rate will apply for the period of time
shown on the card carrier and at the end of the introductory rate
period the Preferred Pricing rate for Purchases will apply to the
remaining  introductory  Purchase  or  Balance  Transfer  balances
on  your  Account.  If  there  is  no  space  for  disclosure  of  an
introductory  rate  on  the  card  carrier  or  if  a  space  for  an
introductory rate is shown on the card carrier and is completed
with  “N/A”  or  is  blank,  an  introductory  rate  does  not  apply  on
your Account.

(2) Preferred  Pricing.  The  Preferred  Pricing  daily  periodic  rate  we
use  to  compute  interest  on  Purchases  (including  Balance
Transfers  other  than  Balance  Transfers  that  are  subject  to  any
applicable introductory rate) is a variable rate equal to the sum
of  the  Prime  Rate  plus  the  margin  shown  on  the  card  carrier
divided by 365. The current Preferred Pricing daily periodic rate
of interest on Purchases (including Balance Transfers) is shown
on  your  card  carrier  and  the  corresponding  annual  percentage
rate of interest is shown in the Account-Opening Disclosures on
the card carrier. 

(3) Promotional Rates. From time to time we may offer you certain
promotional  interest  rates  for  certain  types  of  transactions  or
certain  parts  of  your  Account  balance.  If  you  qualify  for  and
accept  the  offer,  the  daily  periodic  interest  rate  of  the
promotional rate and the corresponding annual percentage rate
will  apply  to  the  balance  or  portion  of  the  balance  of  your
Account  in  accordance  with  the  terms  of  the  promotional  rate
offer.  At  the  end  of  the  promotional  rate  period,  Preferred
Pricing for Purchases will apply to your Account.

(b) Rates  of  Interest  on  Cash  Advances.  The  daily  periodic  rate  we
use to compute the interest on all Cash Advances is a variable rate
which is the sum of the Prime Rate plus a margin expressed as a
percentage, divided by 365. 
(1) Preferred Pricing. The daily periodic rate we use to compute the
interest on Cash Advances balances is a variable rate equal to
the sum of the Prime Rate plus the margin shown on the card
carrier  divided  by  365.  The  current  Preferred  Pricing  daily
periodic rate of interest on Cash Advances is shown on the card
carrier, and the corresponding annual percentage rate of interest
is  shown  in  the  Account-Opening  Disclosures  on  the  card
carrier. 

(c) Variable  Rates  of  the  Interest. The  Interest  rates  under
subparagraphs  (a)  and  (b)  above,  other  than  any  applicable
introductory  rate  on  balance  transfers  or  Purchases  are  variable
rates based on the Prime Rate published in the “Money Rates” table
in The Wall Street Journal. The interest rates and the corresponding
annual  percentage  rates  of  interest  charged  under  this  Agreement
may increase if the Prime Rate increases. The effect of an increase
in the Prime Rate will be an increase in the amount of the Minimum
Payment  due  under  this  Agreement.  We  will  calculate  the  interest
rates applicable to your Account every month based on the Prime
Rate  published  in  the  “Money  Rates”  table  in  The  Wall  Street
Journal two days prior to your statement closing date for the billing
cycle.  If  two  or  more  Prime  Rates  are  published  on  that  day,  the
highest  of  those  rates  will  be  used  to  calculate  the  rates  of  the
interest  under  this  Agreement.  If  two  days  prior  to  your  statement
closing  date  is  a  day  on  which  The  Wall  Street  Journal was  not
published,  the  previous  business  day  on  which  The  Wall  Street
Journal was  published  will  be  used.  If  The  Wall  Street  Journal
ceases  publication,  or  no  longer  publishes  the  prime  rate,  or
changes the manner by which its prime rate is determined, we may
select  another  comparable  index  of  short-term  interest  rates  to  be
the “Prime Rate” under this Agreement. The new annual percentage
rates,  and  the  new  daily  periodic  interest  rates  calculated  by
dividing the new annual percentage rates by 365, will apply to your
Account  beginning  as  of  the  first  day  of  the  billing  cycle  of  your
Account  during  which  the  new  annual  percentage  rates  and  the
corresponding  daily  periodic  rates  were  calculated,  and  will
continue  to  apply  until  new  annual  percentage  rates  and  the
corresponding daily periodic rates are calculated and have become
effective in the manner described in this paragraph. The new annual
percentage rates and the corresponding new daily periodic interest
rates will apply retroactively to the first day of the billing cycle, and
transactions that occurred during the billing cycle both prior to and
after the date the new annual percentage rates were calculated will
be  subject  to  the  new  annual  percentage  rates  and  the
corresponding new daily periodic interest rates for the entire billing
cycle. 

Calculating  the  Balances  to  which  the  Periodic  Interest  Rates  Are
Applied: We  calculate  an  “average  daily  balance”  separately  for
Purchases (including Balance Transfer, but excluding any introductory
period  Balance  Transfers),  Cash  Advances,  any  introductory  period
Balance  Transfers  then  in  effect,  and  any  special  rate  offers  then  in
effect. To get the “average daily balance” of your Account we take the
beginning balance of your Account each day for each of these types of
transactions, add any new Purchases (including Balance Transfers, but
excluding  any  introductory  period  Balance  Transfers  and  introductory
period  Purchases),  Cash  Advances,  introductory  period  Balance
Transfers and other special rate offers (as applicable), and subtract any
payments and other credits applied to that type of transaction under the
payment  allocation  method  then  in  effect.  This  gives  us  the  daily
balance  for  each  of  these  types  of  transactions.  (Credit  balances  are
treated as zero for purposes of calculating the daily balances.) Then, we
add all of the daily balances for the billing cycle for each of these types
of transactions and divide the respective totals by the number of days in
the  billing  cycle.  This  gives  us  the  “average  daily  balance”  for  your
Account for each of these types of transactions.
Calculating  Interest  and  Other  Finance  Charges;  Minimum  Interest
Charge: We  figure  the  interest  on  Purchases  (including  Balance
Transfers) and Cash Advances charged to your Account by multiplying
each of the “average daily balances” of your Account by the applicable
daily  periodic  rate  of  interest  and  then  by  the  number  of  days  in  the
billing  cycle,  and  by  adding  the  resulting  products  together.  We  then
add  any  transaction  fee  finance  charges,  each  calculated  as  provided
below. If the amount of finance charge calculated as described above is
more than zero but less than $1.50, a minimum monthly finance charge
of  $1.50  will  be  charged  to  your  Account.  We  may,  at  our  election,
waive the finance charge on small Account balances.
Finance Charges
(a) Cash Advance Fee: If you use your Card or a Check (Convenience
Check)  to  obtain  a  Cash  Advance,  we  will  charge  your  Account  a
Cash Advance fee equal to 4% of the U.S. dollar amount of the Cash
Advance, subject to a minimum fee of $10 for each Cash Advance.
(b) Balance  Transfer  Fee: If  you  make  a  Balance  Transfer  to  your
Account, we will charge your Account a Balance Transfer fee equal
to 3% of the U.S. dollar amount of the Balance Transfer transaction,
subject to a minimum fee of $10 and a maximum fee of $250 for
each Balance Transfer.

(c) International  Transaction  Fee:  If  you  use  your  Card  to  make  an
international  transaction,  we  will  charge  your  Account  an
International Transaction fee equal to 3% of the U.S. dollar amount
of  the  transaction.  An  international  transaction  is  defined  as  any
transaction that was acquired in any country other than the United
States.

Penalty Charges
The following fees will be charged to your Account as a Purchase in the
billing cycle in which the event occurs:
(a) a Late Payment Fee if we do not receive payment in an amount at
least  equal  to  the  Minimum  Payment  due  shown  on  the  monthly
statement of your Account by the Payment Due Date shown on the
statement. The amount of the Late Payment Fee will be:
(i) an  amount  equal  to  your  minimum  Payment  Due  if  your

minimum Payment Due is less than $25; or

(ii) $25 if your Minimum Payment Due is $25 or more.

(b) a  Returned  Payment  Fee  if  a  check  or  draft  you  send  us  as  a
payment  on  your  Account  is  returned  for  insufficient  funds  or  for
any other reason. The amount of the Returned Payment Fee will be:
(i) an  amount  equal  to  your  minimum  Payment  Due  if  your

minimum Payment Due is less than $25; or

(ii) $25 if your Minimum Payment Due is $25 or more.

(c) a Returned Check Fee if we return a Check unpaid for any reason.

The amount of the Returned Check Fee will be:
(i) an  amount  equal  to  your  minimum  Payment  Due  if  your

minimum Payment Due is less than $25; or

(ii) $25 if your Minimum Payment Due is $25 or more.

However,  the  amount  of  the  fee  will  be  $35  if  you  also  incurred  the
same fee on your Account within the immediately preceding six billing
cycles of your Account.
Other Charges
The following fees will be charged to your Account as a Purchase in the
billing cycle in which the event occurs:
(a) a monthly fee as disclosed in the State Farm Bank Credit Protection
Program Terms and Conditions if you have elected to purchase an
optional plan;

(b) a  Statement  Reprint  Fee  of  $5  for  each  copy  of  a  monthly

statement;

(c) a  $15  per  hour  (with  a  $10  minimum)  Account  Research  Fee  for
account  research  incurred  in  servicing  your  account  at  your
request; and

(d) Unless  prohibited  by  applicable  law,  the  amount  of  any  costs  we
incur  in  complying  with  state  abandoned  or  unclaimed  property
laws with regard to your Account.

Repayment; Minimum Payment Due Each Month
You promise to pay us the amounts of all credit you obtain through the
use of your Card (including all Purchases, Balance Transfers and Cash
Advances),  all  transaction  fees  and  other  charges  we  assess  against
your Account and all interest and other finance charges as provided in
this Agreement. You agree to make your payments in the amounts and
at the times provided in this Agreement. Time is of the essence. We will
provide a statement of your Account at approximately monthly intervals
if there has been activity on your Account, a finance charge is assessed
during  the  preceding  month,  or  there  is  a  balance  (credit  or  debit)  in
your  Account  exceeding  $1,  unless  we  deem  your  Account  to  be
uncollectible,  or  we  have  instituted  delinquency  collection  procedures,
or we have charged off the Account, or furnishing the statement would
violate  federal  law.  You  may  pay  any  amount  up  to  the  entire  unpaid
balance (the “New Balance”) of your Account at any time. You agree to
pay  each  month  at  least  the  amount  of  the  Minimum  Payment  Due
shown on your monthly statement by the Payment Due date shown on
the  statement.  The  Minimum  Payment  Due  each  month  for  your
Account, regardless of whether the Account is open or closed, will be
the  sum  of  all  past  due  amounts,  plus  any  amount  by  which  your
Account  balance  exceeds  your  credit  access  line  and  plus  any  Late
Fees, plus any interest charges, plus 1% of the remaining New Balance
of your Account rounded to the nearest $5 increment or $40, whichever
is  greater  (or  the  entire  New  Balance  if  less  than  $40).  The  Payment

. . . CONTINUED ON REVERSE SIDE

 
 
 
91121  04/14/11  3:42 PM  Page 2

Due Date will be at least 24 days after the Closing Date. If you overpay,
or if a credit balance is otherwise created in your Account, we will not
pay  interest  on  that  amount.  Your  payments  are  not  deemed  to  be
received  until  they  are  posted  to  your  Account.  See  the  monthly
statement  of  your  Account  for  details  on  timely  posting  of  payments.
Mail  your  payment,  accompanied  by  the  payment  remittance  stub,
using  the  envelope  enclosed  with  your  monthly  statement  or  to  the
payment  address  provided  on  the  monthly  statement.  Or  make  your
payment online by going to statefarm.com.
The crediting of payments sent to any location other than the payment
address or received in any other manner may be delayed. Do not send
correspondence of any type to the payment address. When you provide
a  check  as  payment,  you  authorize  us  either  to  use  information  from
your  check  to  make  a  one-time  electronic  fund  transfer  from  your
Account or to process the payment as a check transaction. When we
use  information  from  your  check  to  make  an  electronic  fund  transfer,
the funds may be withdrawn from your account on which the check is
drawn as soon as the same day we receive your payment and you will
not receive your check back from your financial institution. For inquiries
about your account, please call us toll-free at 1-877-SF4-VISA (1-877-
734-8472) or write us at P.O. Box 87, Deposit, New York 13754-0087.
Your payments will be allocated among the charges on your Account in
any  manner  we  determine  that  is  consistent  with  the  requirements  of
applicable law, without regard to any contrary instructions from you If
different  annual  percentage  rates  apply  to  different  balances  of  your
Account, we will allocate any amount you pay in excess of the required
Minimum  Payment  Due  first  to  the  balance  with  the  highest  annual
percentage  rate  and  any  remaining  portion  to  the  other  balances  in
descending order based on the applicable annual percentage rate in a
manner  that  complies  with  applicable  regulations  and  regulatory
guidance. Even though your payment may be credited to your Account
in  the  billing  cycle  in  which  the  payment  is  received,  your  available
credit  may  not  be  increased  by  the  amount  of  the  payment  until  your
payment has cleared.
If you pay more than the Minimum Payment you will not thereby prepay
or postpone the due date of payments in the following months and you
will continue to be obligated to make the Minimum Payment amount (if
any) shown on your monthly statements in succeeding months.
Payments must be made in U.S. dollars, and we may refuse to accept
checks not denominated in U.S. dollars. You agree not to use a State
Farm Bank Balance Transfer, Convenience Check, or the proceeds of a
Cash Advance to make any payment on your Account.
Our Right to Require Immediate Payment
Subject  to  our  giving  any  notice  required  by  law  and  to  any  other
limitations imposed by law, you will be in default and, at our election,
we can require you; to pay immediately all amounts you owe us under
this  Agreement  without  notice  or  demand  if  (1)  you  fail  to  pay  any
amount  you  owe  under  this  Agreement  exactly  when  due;  or  (2)  your
Account  balance  exceeds  your  credit  access  line,  or  if  we  have
established a separate Cash Advances credit limit or other credit sub-
limit for your Account, your Cash Advances balance exceeds your Cash
Advances  credit  limit  or  you  exceed  any  other  credit  sub-limit  of  your
Account; or (3) you fail to abide by any other term of this Agreement; or
(4)  your  ability  to  pay  us  is  materially  impaired  (including,  without
limitation,  if  you  file  or  have  filed  against  you  as  debtor  a  proceeding
under any chapter of the Bankruptcy Code); or (5) you die or become
incapacitated; or (6) you are in default on any other credit account or
loan you have with us.
Collection Costs
If you are in default, unless prohibited by applicable law, you agree to
pay  us  or  reimburse  us  for  all  costs  and  disbursements,  including
reasonable  attorney’s  fees,  we  pay  or  incur  in  legal  proceedings
(including  bankruptcy  proceedings)  to  collect  or  enforce  the  debt  you
owe under this Agreement.
Payment Holidays
From time to time, solely at our option, we may allow you to skip one or
more  monthly  payments.  We  will  notify  you  when  this  option  is
available. If you skip a payment, interest (and credit protection fees, if
any)  will  continue  to  accrue  on  your  Account  balance  in  accordance
with  this  Agreement.  The  requirement  that  you  make  the  Minimum
Payment due each month will resume following the payment holiday.
Transactions Made in Foreign Currencies
If a transaction is made in a foreign currency, we and Visa International
will  convert  the  transaction  into  a  U.S.  dollar  amount.  Visa  will  act  in
accordance with their operating regulations or conversion procedures in
effect  at  the  time  the  transaction  is  processed  and  may  use  (i)  a  rate
selected by Visa from the range of rates available in wholesale currency
markets for the applicable central processing date, which rate may vary
from the rate Visa itself receives, or (ii) the government-mandated rate
in  effect  for  the  applicable  central  processing  date,  in  each  instance
plus or minus any adjustment determined by Visa or us. The currency
conversion  rate  calculated  in  this  matter  that  is  in  effect  on  the
processing  date  may  differ  from  the  rate  in  effect  on  the  transaction
date or the posting date. When any transaction must be converted back
into  a  foreign  currency  because  of  a  refund  or  other  reversed
transaction, the same currency conversion formula will apply.
Billing Cycles of Your Account
Each billing cycle of your Account begins on the day after the closing
date  shown  on  the  preceding  monthly  statement  of  your  Account  and
ends  on  the  closing  date  shown  on  the  monthly  statement  of  your
Account for the current month. A billing cycle occurs even if you do not
receive a monthly statement of your Account as otherwise provided in
this Agreement.
Authorized Use of Your Card by Others
If  you  permit  any  person  to  have  access  to  your  card  or  Account
number with the authorization to make a charge, or if you request us to
issue a Card on your Account to another person, you will be liable for
all charges made by that person, including charges you may not have
intended that person to make.
If you are an authorized user and you use a card or the Account, you
are  liable  for  each  transaction  you  make  on  the  Account  plus  any
Finance  Charges,  Fees  and  Other  Charges,  and  expenses  provided  in
this  Agreement  and  related  to  such  transactions.  If  you  are  an
authorized user, your liability does not relieve any cardholder under this
Agreement from liability for the authorized user’s transactions until paid.
Special Provisions Regarding Checks
You  may  stop  payment  on  an  unpaid  Check  by  providing  us  with  the
check number, dollar amount, and payee exactly as they appear on the
Check.  A  stop  payment  request  expires  six  months  after  the  date  we
accept  your  stop  payment  order  unless  you  renew  it  in  writing  within
two weeks prior to the expiration date.
If you post-date a Check, we may honor the Check immediately upon
presentment  or  return  it  unpaid,  at  our  election,  without  in  either  case
waiting until the date shown on the Check. We are not liable to you for
any loss or expense incurred by you arising out of the action we elect to
take. You may not use a Check or any other Cash Advance to make a
payment  under  this  Agreement  or  any  other  credit  account  you  may
have with us. 
Certain Limitations on Use of Your Card
Your  Account  is  a  consumer  credit  account.  You  must  not  use  your
Card primarily for business or commercial purposes.
You must not use your Card for any unlawful purpose or in any illegal
transaction.
Additional Cardholder Benefits
We  may  offer  you  certain  additional  cardholder  benefits  from  time  to
time,  including  balance  transfers,  interest  free  special  purchases,  and
temporary  APR  reductions.  Any  such  benefits,  if  offered  and  provided
to  you,  will  be  subject  to  the  restrictions  outlined  in  the  benefits
brochure  we  provide  to  you.  However,  unless  otherwise  stated  in  the
promotion,  the  terms  of  this  Agreement  shall  also  govern  any  such
Special Purchase Promotion. We reserve the right to change, add to or
discontinue  these  benefits  and  services  at  any  time  without  notice  to
you.
Refusal to Honor Your Card; Refused Authorizations
We will not be liable if any other bank, any ATM, or any seller or lessor
of  goods  or  services  refuses  to  honor  your  Card  or  retains  your  Card
when  you  attempt  to  use  it.  Even  though  you  have  available  credit  on
your  Account,  we  may  fail  or  decline  to  authorize  a  particular
transaction due to operational difficulties or, at our discretion, for other
reasons we deem to be appropriate.
Gaming and Wagering Transactions
The  State  Farm  Bank  credit  card  is  not  to  be  used  for  any  gaming  or
wagering  transactions,  including  transactions  for  casino  chips,  bets,
wagers, Internet gambling or any other gaming or wagering transaction.
State  Farm  Bank  will  decline  transactions  for  casino  chips,  bets,
wagers, Internet gambling or any other gaming or wagering transaction.
Suspension or Termination of Your Credit Line
We  may  suspend  or  terminate  your  right  to  obtain  additional  credit  at
any  time,  subject  only  to  any  limitations  under  federal  law  or  to  the
extent federal law does not preempt state laws, under the laws of the
State of Illinois. All Cards we issue to you or at your request remain our
property, and you agree to return all such Cards to us at our request.
You may terminate your right to obtain additional credit at any time by
cutting  all  unexpired  Cards  outstanding  on  your  Account  in  two  and
returning  them  to  us.  Your  obligations  under  this  Agreement  continue
unchanged  after  your  right  to  obtain  credit  has  been  suspended  or
terminated by you or by us.
Obligation of Multiple Cardholders
All  joint  accountholders  are  individually  and  jointly  responsible  for
paying  the  entire  outstanding  balance  on  the  Account.  If  two  or  more
persons  are  responsible  for  paying  any  outstanding  balance,  we  may
refuse  to  release  any  of  them  from  liability  until  all  of  the  unexpired
Cards  outstanding  on  the  Account  have  been  returned  to  us  and  the
Account  balance  is  paid  in  full.  The  obligations  of  the  other  obligated
persons will not be affected by the release or discharge of one or more
of  the  persons  who  are  responsible  for  paying  all  or  any  part  of  the
Account.
Amendments; Replacement Cards
Subject  to  our  giving  any  notice  required  by  law  and  to  any  other
limitations imposed by law, we may amend this Agreement at any time
to  change,  add,  or  delete  provisions  upon  such  notice  to  you  and
subject  to  such  limitations  as  are  required  and  imposed  under
applicable  provisions  of  federal  law  or  to  the  extent  federal  law  is  not
controlling, the laws of the State of Illinois. If a longer minimum notice
period  is  not  specified  by  applicable  federal  or  Illinois  law  for  the
amendments  we  propose  to  make,  we  may  amend  this  Agreement
upon not less than 15 days notice to you. Unless otherwise provided by
law,  any  notice  of  changed  terms  may  be  included  on  or  with  the
monthly statement of your Account and, the notice period will begin to
run  when  we  mail  or  deliver  the  notice  to  you.  If  a  notice  of  an
amendment gives you the opportunity to reject the amendment, and if
you reject the amendment in the manner provided in the notice, we may
terminate your right to receive additional credit and may require you to
return  all  credit  devices  as  a  condition  of  your  rejection  of  the
amendment.  If  the  amendment  so  provides,  and  subject  to  the
requirements of applicable law, the amended Agreement (including any
increased rate or amount of interest or other finance charge and other

increased  charges  and  fees)  will  apply  to  both  existing  and  new
balances  of  your  Account,  including,  subject  to  the  provisions  of  the
notice of change in terms, all Purchases, Cash Advances and Balance
Transfers after the effective date of the amendment. Any letter, payment
instrument  or  other  communication  you  direct  to  us  with  the  intent  to
amend  this  Agreement  must  be  sent  to  us  in  writing  at:  State  Farm
Bank,  P.O.  Box  2326,  Bloomington,  Illinois  61702-2326.  If  any  such
payment  instrument  is  received  at  any  other  address,  we  may  accept
the payment instrument, which will not constitute consideration, and no
amendment to the Agreement shall have been effected. This Agreement
may be amended only by a writing originated by us and sent to you or a
written amendment signed by one of our authorized representatives.
We may replace your Card with another credit card at any time.
Communications Concerning Disputed Debts
Any payment instrument you send us for less than the full balance due
that  is  marked  “paid  in  full”  or  similar  notation,  or  that  you  otherwise
tender in full satisfaction of a disputed amount, must be sent to State
Farm  Bank,  P.O.  Box  2326,  Bloomington,  Illinois  61702-2326.  We
reserve  all  our  rights  regarding  such  instruments.  For  example,  if  it  is
determined  there  is  no  valid  dispute  or  if  any  such  instrument  is
received at any other address, we may accept the instrument and you
will still owe any remaining balance. Or, we may refuse to accept any
such instrument by returning it to you, not cashing it, or destroying it.
Satisfaction  of  your  debt  for  less  than  the  full  amount  due  requires  a
written agreement, signed by one of our authorized representatives.
Change of Name or Mailing Address
You must notify us immediately of any change of your name or mailing
address from that shown on your latest monthly statement. The back of
your monthly statement contains a form you may use for this purpose.
Assignment
We may at any time, and without notice to you, assign your Account,
any  sums  due  on  your  Account,  this  Agreement,  and  our  rights  or
obligations  under  your  Account  and  this  Agreement  to  any  person  or
entity.  The  person  or  entity  to  whom  we  make  any  such  assignment
shall be entitled to all of our rights under this Agreement, to the extent
assigned. You may not assign your rights under this Agreement.
Unauthorized Use of Your Account
Please notify us immediately of the loss, theft, or possible unauthorized
use of your Card. You may be liable for unauthorized use of your Card if
your gross negligence results in unauthorized use. You will not be liable
for unauthorized use that occurs after you notify us in writing at State
Farm  Bank,  P.O.  Box  94,  Deposit,  New  York  13754-0094,  or  by
telephone  at  1-877-734-8472,  of  the  loss,  theft,  or  possible
unauthorized use. In any case, your liability for unauthorized use will not
exceed  $50.  Please  sign  your  Card  immediately  after  you  receive  it.
Please  safeguard  your  Card  like  you  would  if  it  were  cash.  Do  not
disclose your PIN to anyone else.
Monitoring Telephone Conversations
You consent to and authorize us, any of our affiliates, and our marketing
associates to monitor and/or record (unless prohibited by law) any of
your  telephone  conversations  with  our  representatives  or  the
representatives of any of such companies.
Information Gathering and Sharing
Please  refer  to  the  State  Farm® “Notice  of  Privacy  Policy”  for  our
policies on collecting, using, securing, and sharing nonpublic personal
information.  Additional  copies  of  our  “Notice  of  Privacy  Policy”  are
available by calling us toll-free at 1-877-SF4-BANK (1-877-734-2265),
on our website (statefarm.com®), or from your local State Farm agent.
If  you  believe  that  inaccurate  or  incomplete  information  about  you  or
your  Account  has  been  shared  by  us  with  a  credit  reporting  agency,
write to us at: State Farm Bank, P.O. Box 94, Deposit, New York 13754-
0094.  Please  include  your  name,  address,  home  phone  number,  and
Account  number,  and  explain  which  information  you  believe  is
inaccurate or incomplete.
Governing Law
This Agreement, including, without limitation, the interest to be charged,
is  governed  by  Federal  law  and  to  the  extent  Federal  law  is  not
controlling,  by  the  laws  of  the  State  of  Illinois  without  regard  to  its
conflict of laws principles.
Severability; No Waivers
If  any  part  of  this  Agreement  is  found  to  be  invalid,  the  rest  remains
effective.  Any  failure  or  delay  by  us  in  exercising  any  of  our  rights  or
remedies under this Agreement or under applicable law does not mean
that we will not be permitted to exercise those rights or remedies later.
We may accept late payments or partial payments without losing any of
our rights or remedies. You have not waived under this Agreement any
of  your  rights  or  our  duties  under  the  Illinois  Financial  Services
Development Act.
Transactions with Merchants
Return  Policy. If  a  merchant  discloses  a  policy  such  as  “no
returns”,“no  refund”,  “no  return  or  credit  without  receipt”,  “as  is”,
“store credit only”, or “all sales final”, you will be bound by that policy
when you use your Card or Account to buy goods or services from that
merchant.  Reservations. When  using  your  Account  to  make  travel  or
lodging  reservations,  obtain  the  merchant’s  cancellation  policy  and
follow it if you cancel. If you cancel, obtain the merchant’s cancellation
number that it is required to give you. The merchant may charge you for
a cancelled transaction unless you can provide us with the merchant’s
cancellation  number.  Recurring  Transactions. If  you  authorize  a
merchant  to  charge  your  Account  for  repeat  transactions  with  your
Card, you must notify the merchant when you want to discontinue the
repeat  transactions  or  if  your  Account  is  closed  or  a  new  Account
number  is  issued  by  us.  Dispute  Assistance. If  you  disagree  with  a
transaction on your statement or have a dispute with the merchant as a
result of the transaction, you will provide information or assistance we
reasonably  request  to  permit  us  to  investigate  the  transaction.
Otherwise,  you  will  pay  us  for  any  resulting  loss  we  have  (up  to  the
amount of the transaction) unless we are prohibited by applicable law
from  holding  you  liable  for  our  loss.  “Your  Billing  Rights”  controls.  If
any  provision  of  this  paragraph  conflicts  with  any  part  of  the  “Your
Billing  Rights”  section  below  that  is  applicable  to  the  particular
transaction, the terms of the “Your Billing Rights” section will control.

YOUR BILLING RIGHTS
Keep this notice for future use.
This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act.
What To Do If You Find A Mistake On Your Statement.
If  you  think  there  is  an  error  on  your  statement,  write  to  us  at:  State
Farm Bank, P.O. Box 1420, Deposit, New York 13754-1420.
In your letter, give us the following information:
(1) Account information: Your name and Account number.
(2) Dollar Amount: The dollar amount of the suspected error.
(3) 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 access line.
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 that it is
due.  We  may  then  report  you  as  delinquent  if  you  do  not  pay  the
amount we think you owe.

If  you  receive  our  explanation  but  still  believe  your  bill  is  wrong,  you
must write to us within 10 days telling us that you still refuse to pay. If
you  do  so,  we  cannot  report  you  as  delinquent  without  also  reporting
that you are questioning your bill. We must tell you 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: State Farm Bank, P.O. Box 1420,
Deposit, New York 13754-1420.

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.
Notice for Married Wisconsin Residents. No provision of any marital
property  agreement,  unilateral  statement,  or  court  order  applying  to
marital  property  will  adversely  affect  State  Farm  Bank  interests  unless
prior to the time credit is granted, State Farm Bank is furnished with a
copy  of  the  agreement,  statement  or  court  order,  or  State  Farm  Bank
has  actual  notice  of  the  provision.  Married  Wisconsin  residents  must
furnish the name and address of their spouse to State Farm Bank at PO
Box 87, Deposit, New York 13754-0087.

F03-L608-4   CP11-91121