OPENSKY® SECURED VISA®  
CREDIT CARDHOLDER AGREEMENT 

INTEREST RATES AND INTEREST CHARGES 

Annual Percentage Rate (APR) for 
Purchases 

19.39% 
This APR will vary with the market based on the Prime Rate plus a margin.  

APR for Cash Advances 

19.39% 
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 $27  

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 11/1/18. This information may have changed after that date. To ask what may have changed 
or questions about any of these disclosures call us at 800-859-6412. 

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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 

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consent  by  you,  and  to  disregard  any  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.  

(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. 

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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 0.05312%.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 Interest Charges.) If a Cash Advance obtained in a Billing Cycle is not posted in that Billing Cycle, 

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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) Each time we do not receive the Minimum Payment Due in full within one (1) day after the Payment Due 
Date,  we  will  charge  you  a  Late  Fee  of  $27.00.  We  will  never  charge  you  a  Late  Fee  exceeding  the  Minimum 
Payment Due that is late. 

(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 
at 800-859-6412 (516-576-8685 from outside the country), or by 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 

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remedies. 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 at 800-859-6412 (516-576-8685 from outside the country), or by 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 

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on an 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 us at 800-859-6412. 

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.  
If  you  have  any  questions  or  want  to  discuss  these  account  terms,  please  call  us  at  800-859-6412.    Our 
experienced specialists are here to help you. 

CAPITAL BANK, N.A. 

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