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STATE FARM BANK®
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 Card 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  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 Limit
We will establish a credit limit for your Account from time to time. Your 
initial  credit  limit  is  shown  on  the  card  carrier.  Your  current  credit  limit 
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  limit.  We  may  also  establish  at 
any  time  a  separate  credit  limit  (as  a  sublimit  within  the  overall  credit 
limit  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 limit 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. 
You may request a change in the amount of your credit limit by writing or 
telephoning us.
Exceeding Your Credit Limit
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  limit,  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 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 limit 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 any credit 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 limit, 
that does not mean we will or must honor further over-limit 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. 
If we have previously honored requests for credit in excess of your credit 
limit, that does not mean that we will honor further over-limit requests.
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.  If  (i)  the  Previous 
Balance shown on your Account statement is zero or a credit balance, 
or (ii) if the total of Payments and other credits posted to your Account 
during  the  billing  cycle  equals  or  exceeds  the  Previous  Balance, 
you  will  not  be  charged  interest  on  Purchases  (other  than  Balance 
Transfers) posted to your Account during the billing cycle. You may 
avoid  paying  interest  on  Purchases  (but  not  on  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 you make a Purchase during a billing 
cycle of your Account during which you have an outstanding balance 
(including any balance that has an introductory or promotional rate) 
you must pay the entire New Balance (including any balance that is 
subject to a special rate) shown on the statement of your Account for 
that billing cycle by the Payment Due Date shown on the statement to 
avoid paying interest on that Purchase.

(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. 
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,  certain 
promotional rates, and minimum rates.
(1)  Introductory  Rate.  The  daily  periodic  rate  we  use  to  compute 
interest on all Purchases 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 
balances  of  your  Account,  including  your  existing  balance.  If  you 
fail to abide by the terms of this Agreement, we may terminate the 
introductory rate and apply the Penalty Pricing rate for Purchases to 
the Purchases balances of your Account. If we do, we will send you 
notice of the changed rate, the effective date of the change, and the 
balances of your Account that are subject to the changed rate. 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) Penalty Pricing. If you fail to make a required minimum  payment 
when due, or you make a payment that is returned unpaid, or you do 
any of the foregoing on another account that you have with us, we may 
increase the interest rate on Purchases (including Balance Transfers) 
balances (including any introductory rate or promotional rate then in 
effect) to the Penalty Pricing interest rate, subject to our giving any 
notice required by law and to any other limitations imposed by law. 
The daily periodic rate we use to compute Penalty Pricing interest 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 Penalty Pricing daily 
periodic rate of interest on Purchases (including Balance Transfers) 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. If we elect to apply Penalty Pricing to your Account, we 
will  send  you  notice  of  the  changed  rate,  the  effective  date  of  the 
change,  and  the  balances  of  your  Account  that  are  subject  to  the 
changed rate. The Penalty Pricing annual percentage rate will remain 
in effect until we receive six consecutive required minimum monthly 
payments on or before the Payment Due date beginning with the first 
payment due following the effective date of the increase.

     (4) 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 or Penalty Pricing for Purchases, as applicable, will 
apply to your Account.
 (5)  Minimum Interest Rate. Without regard to changes in the Prime 
Rate, the minimum daily periodic rate we use to compute the interest 
on  Purchases  (including  Balance  Transfers),  and  the  minimum 
corresponding annual percentage rate are shown on the card carrier.
(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. 
 (2) Penalty Pricing. If you fail to make a required minimum payment 
when  due,  or  you  make  a  payment  that  is  returned  unpaid,  or  you 
do  any  of  the  foregoing  on  another  account  that  you  have  with  us 
we may increase the interest rate on Cash Advance balances to the 
Penalty Pricing interest rate, subject to our giving any notice required 
by law and to any other limitations imposed by law. The daily periodic 
rate  we  use  to  compute  Penalty  Pricing  interest  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 Penalty 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. If we elect to 
apply Penalty Pricing to your Account, we will send you notice of the 
changed rate, the effective date of the change, and the balances of 
your Account that are subject to the changed rate. The daily periodic 
rate we use to compute Penalty Pricing interest is a variable rate equal 
to  the  sum  of  the  Prime  Rate  plus  the  margin  shown  on  the  card 
carrier divided by 365.

(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 and the minimum rate for Purchases 
(including Balance Transfers) 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. Notwithstanding the foregoing and without regard 
to  any  change  in  the  Prime  Rate,  the  new  annual  percentage  rates 
for Purchases (including Balance Transfers) will not be less than the 
minimum annual percentage rate as provided in paragraph (a) above.
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. The average daily balances include current transactions for 
Purchases (including Balance Transfers) and for Cash Advances, except 
that if the Previous Balance of your Account was zero or a credit balance, 
or if the total of payments and other credits posted to your Account during 
the  billing  cycle  equals  or  exceeds  the  Previous  Balance,  Purchases 
(other than Balance Transfers) posted to your Account during the billing 
cycle are not included in the daily balances of Purchases for purposes of 
calculating  interest  on your Account balance.
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 1% 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:
plus  any  Penalty  Charges,(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 vary 
based on the New Balance of your Account at the closing date of your 
billing cycle as follows: $15 if the New Balance is less than $500; and $39 
if the New Balance is $500 or greater; 
(b) a Returned Payment Fee of $39 if a check or draft you send us as 
a payment on your Account is returned for insufficient funds or for any 
other reason; and 
(c)  a  Returned  Check  Fee  of  $39  if  we  return  a  Check  unpaid  for  any 
reason.
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  of  $.74  for  each  $100  of  your  Account  balance  for 
the  State  Farm  Bank  Credit  Protection  Program  if  you  have  elected  to 
purchase this optional program;
(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 is the sum of all past 
due amounts, plus any amount by which your Account balance exceeds 
your credit limit, plus any Penalty Charges, and plus any interest charges 
and other finance charges posted to your Account during the billing cycle, 
and plus 1% of the remaining New Balance of your Account rounded to 
the nearest $5 increment or $10, whichever is greater (or the entire New 
Balance if less than $10). If your account is closed and a balance remains 
the Minimum Payment due each month for your Account is the sum of 
all past due amounts, plus the amount by which your Account balance 
exceeds your credit limit, plus any Penalty Charges, plus the amount of 
any interest charges and other finance charges posted to your Account 
during the billing cycle, and plus 1% of the remaining New Balance of your 
Account rounded to the nearest $5 increment or $10, whichever is greater 
(or the entire New Balance if less than $10). The Payment 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. 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.   
Effective no later than February 22, 2010 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  limit,  or  if  we  have  established  a  separate  Cash  Advances 
credit limit or other credit sublimit for your Account, your  Cash Advances 
balance exceeds your Cash Advances credit limit or you exceed any other 
credit sublimit 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 Account
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 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 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 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 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-E406-0 -0410  CP09-75053

 
  
  
  
  
  
 
  
  
 
Annual percentage rate (APR) for Purchases:  10.24% -18.24% (Prime+ 6.99% - 
Prime+14.99%)(Prime=3.25%) 
Daily periodic rate for Purchase:  0.0280% – 0.0555% 
APR based on creditworthiness and will vary with the market based on Prime Rate. 

APR for Balance Transfers:  10.24% - 18.24% (Prime+6.99% - Prime+14.99%)(Prime=3.25%) 
Daily periodic rate for Balance Transfers:  0.0280% – 0.0555% 
APR based on creditworthiness and will vary with the market based on Prime Rate. 

APR for Cash Advances:  20.24% (Prime+16.99%)(Prime=3.25%) 
Daily periodic rate for Cash Advances:  0.0555% 
This APR will vary with the market based on the Prime Rate. 

Penalty APR:  24.24% (Prime+20.99%)(Prime=3.25%) 
Daily periodic rate for Penalty:  0.0664% 
This APR may be applied to your account if you make a late payment and will apply to new balances on 
your account for a minimum of six months until you make six consecutive minimum payments when due.  
This APR will vary with the market based on the Prime Rate. 

The Prime Rate used to determine your APR is the highest Prime Rate published in the "Money Rates" 
table in The Wall Street Journal two business days prior to the Statement/Closing Date for that billing 
period. 

Annual Fee - None 

Minimum Interest Charge - $1.50 

Grace Period – Your due date is at least 24 days after the close of each billing cycle. We will not charge 
you interest on purchases if you pay your entire balance by the due date each month.  We will begin 
charging interest on cash advances and balance transfers on the transaction date. 

How We Will Calculate Your Balance - We use a method called “average daily balance (including new 
purchases)”. 

Cash Advance Fee – Either $10 or 4% of the amount of each cash advance, whichever is greater 
Late Payment Fee – up to $35 
Over-the-limit Fee - None  
Balance Transfer Fee – Either $10 or 3% of the amount of each transfer, whichever is greater (maximum 
fee $250) 
Returned-payment Fee – up to $35