New Mexico Educators Federal Credit Union
VISA® CREDIT CARD  
AGREEMENT AND DISCLOSURE
ADDENDUM: Prime + 7.75%

FINANCE  CHARGES:
Balance  Computation  Method.    We  figure  the  interest 
charge on your account by applying the periodic rate to the 
"average daily balance" of your account.  To get the "average 
daily  balance"  we  take  the  beginning  balance  of  your 
account  each  day,  add  any  new  purchases,  advances  and 
fees,  and  subtract  any  unpaid  interest  or  other  finance 
charges and any payments or credits.  This gives us the daily 
balance.    Then,  we  add  up  all  the  daily  balances  for  the 
billing cycle and divide the total by the number of days in the 
billing cycle.  This gives us the "average daily balance."

Annual  Percentage  Rate  for  Purchase  Transactions. 
The  ANNUAL  PERCENTAGE  RATE  (“APR”)  is  variable  and 
may  change  monthly  based  on  changes  in  an  index.  The 
index  is  the  Prime  Rate,  as  published  in  The  Wall  Street 
Journal  ("Index").    If  the  Index  becomes  unavailable  during 
the term of this account, the credit union may substitute a 
new  Index  after  notice  to  you.    The  interest  rate  will  be 
adjusted on the first day of each billing cycle, based on the 
most  recent  Index  figure  available  as  of  the  fifth  business 
day of the last month immediately preceding the new billing 
cycle. If the fifth day falls on a Saturday, Sunday or holiday,  
the Prime Rate published on the next business day will be 
used.  To  determine  the  ANNUAL  PERCENTAGE  RATE  for 
purchase transactions, we add a “Margin” of 7.75% to the 
Index. This gives us the new purchase transaction APR. The 
ANNUAL PERCENTAGE RATE will not exceed the maximum 
rate  of  18.0%.    The  monthly  periodic  rate  of  FINANCE 
CHARGES  is  1/12th  of  the  ANNUAL  PERCENTAGE 
RATE. 

The  ANNUAL  PERCENTAGE  RATE  for  purchases  could 
change monthly. An increase in the Prime Rate may increase 
both the number of minimum monthly payments required to 
repay the account balance and the amount of each minimum 
monthly payment. The Prime Rate as of October 5, 2011 was 
3.25%, which results in an ANNUAL PERCENTAGE RATE of 
11.00%  for  purchase  transactions  and  a  monthly  periodic  
rate  of    FINANCE  CHARGE  of  0.9166%.  To  find  out  the 
current  prime  rate,  visit  www.bankrate.com/rates/interest-
rates/wall-street-prime-rate.aspx.  

Finance  Charges  On  Purchases.  We  will  calculate  the 
Finance Charge on your Account for purchase transactions, 
if  you  did  not  pay  the  total  New  Balance  listed  on  the  last 
billing statement in full by the payment due date. When you 
do  not  pay  the  New  Balance  in  full,  Finance  Charges  on 
purchases  begin  to  accrue  on  the  date  the  purchase  is 
posted to your Account. If there is a FINANCE CHARGE due 
which  is  less  than  $1.00,  you  will  be  charged  a  minimum 
FINANCE CHARGE of $1.00.

Annual  Percentage  Rate  for  Cash  Advances.     The 
ANNUAL  PERCENTAGE  RATE  (“APR”)  is  variable  and  may 
change  monthly based on changes in an Index. The Index is 
the  Prime  Rate  as  published  in  The  Wall  Street  Journal 
("Index").  If the Index becomes unavailable during the term 
of this account, the credit union may substitute a new Index 
after notice to you.  The interest rate will be adjusted on the 
first day of each billing cycle, based on the most recent Index 
figure available as the fifth business day of the last month 
immediately  preceding  the  new  billing  cycle.  If  the  5th  day 
falls on a Saturday, Sunday or holiday, we use the Prime Rate 
published  on  the  next  business  day.  To  determine  the 
ANNUAL PERCENTAGE RATE for cash advance transactions, 

we add a “Margin” of 7.75% to the Index. This gives us the 
new cash advance transaction APR. There is no limit on the 
amount the APR may increase at any one time. The ANNUAL 
PERCENTAGE  RATE  will  not  exceed  the  maximum  rate  of 
18%.  The  monthly  periodic  rate  of  FINANCE  CHARGE  is 
1/12th of the ANNUAL PERCENTAGE RATE.

The ANNUAL PERCENTAGE RATE for cash advances may 
change monthly. An increase in the Prime Rate may increase 
both the number of minimum monthly payments required to 
repay the Account balance and the amount of each minimum 
monthly payment. The Prime Rate as of October 5, 2011 was 
3.25%,  which  results  in  an  ANNUAL  PERCENTAGE  RATE 
OF  11.00%  for  cash  advance  transactions  and  a  monthly 
periodic rate of FINANCE CHARGE OF 0.9166%. To find out 
the  current  prime  rate,  visit  www.bankrate.com/rates/
interest-rates/wall-street-prime-rate.aspx.

Finance  Charges  on  Cash  Advances.  We  will  charge  a 
Finance  Charge  on  cash  advances  from  the  day  you  take 
them until the day we receive payment in full as follows: To 
figure the Finance Charge for a billing cycle, we will apply a 
monthly periodic rate of Finance Charge to the average daily 
balance of your cash advance transactions, including current 
transactions,  for  the  billing  cycle.  If  there  is  a  FINANCE 
CHARGE due which is less than $1.00, you will be charged 
a  minimum  FINANCE  CHARGE  of  $1.00.    For  each  cash 
advance you obtain, you agree to pay a FINANCE CHARGE 
in the form of a cash advance transaction fee equal to 1% of 
the cash advance, not less than $2.00, but not more than 
$20.00.

Effect of Change in the Annual Percentage Rate. The 
ANNUAL PERCENTAGE RATE (“APR”) is variable and may 
change monthly based on changes in an Index. The Index is 
the  Prime  Rate,  as  published  in  The  Wall  Street  Journal 
("Index").  If the Index becomes unavailable during the term 
of this account, the credit union may substitute a new Index 
after notice to you.  The interest rate will be adjusted on the 
first day of each billing cycle, based on the most recent Index 
figure available as of the fifth business day of the last month 
immediately preceding the new billing cycle. Any increase in 
APR may increase your minimum payment. 

Payment  Default.    The  Penalty  Rate  applies  to  new  and 
outstanding  account  balances  if  you  fail  to  make  the 
required  minimum  payment  to  New  Mexico  Educators 
Federal  Credit  Union  within  60  days  after  the  payment  is 
due.    The  increase  will  terminate  once  the  cardholder  has 
made six consecutive minimum payments on time, starting 
with the first payment after the date on which it is imposed.  
If  the  six  consecutive  on  time  minimum  payments  are  not 
made, we have the option of keeping the Penalty ANNUAL 
PERCENTAGE RATE on your account indefinitely, subject to 
applicable laws and regulations. 

Annual  Percentage  Rate  for  the  Default  Rate.  The 
ANNUAL  PERCENTAGE  RATE  (“APR”)  is  currently  non-
variable  and 
is  tied  to  the  National  Credit  Union 
Administration's established maximum rate of interest. As of 
October 25, 2011 the rate is 18.00%.  The monthly periodic 
rate  of  FINANCE  CHARGE  is  1/12th  of  the  ANNUAL 
PERCENTAGE RATE which results in a monthly periodic rate 
of a FINANCE CHARGE of 1.50% . If the six consecutive on 
time minimum payments are not made, we have the option 
of keeping the Penalty APR on your account indefinitely. 

VISA® CREDIT CARD AGREEMENT AND DISCLOSURE (Cont.)  
Auto Rental Collision Damage Waiver Program (Cont.)

2 

OTHER FEES: 

A.  Late Fee - if you fail to make your minimum payment on 
time, a late payment fee will be assessed.  You agree to 
pay a Late Payment Fee of up to $25.00.  You agree that 
Fee. 
we  may 

Payment 

change 

Late 

this 

*If  we  receive  more  than  one  of  your  last  six  payments 
after the due date listed on your monthly statement, you 
may be assessed a Late Payment Fee of up to $35.00.

B.  Returned  Payment  Fee  -  If  you  make  payments  using 
personal checks, and your financial institution refuses to 
pay  the  check  and  returns  it  to  us,  you  agree  to  pay  a 
Return Payment Fee of up to $25.00.

C.  Stop  Payment  Fee  -  We  will  assess  a  $20.00  Stop 
Payment Fee when the payment of a Convenience Check 
is stopped at your request.  You may stop payment on a 
Convenience Check by notifying us in writing at P.O. Box 
8530, Albuquerque, New Mexico 87198.  Once a charge 
is made through the use of the Card or Account Number 
we  cannot  "stop  payment"  on  the  charge.    If  there  is  a 
dispute involving a charge on your Account, please refer 
to  the  section  entitled  "Your  Billing  Rights"  in  the  Visa 
Credit Card Agreement and Disclosure.

D.  Cash Advance Fee - We will assess a FINANCE CHARGE 
in the form of a cash advance transaction fee equal to 1% 
of the cash advance, not less than $2.00, but not more 
than $20.00. 

E.  Copy Charges - A $2.00 per page fee will be assessed for 
each  additional  copy    you  request  of  a  monthly  billing 
statement.    A  $4.00  charge  will  be  assessed  for  each 
charge slip copy you request.

F.  Annual Fee - None.  

Foreign Currency Exchange Rate.   Purchases and cash 
advances made in foreign countries will be billed to you in 
U.S.  dollars.    Visa  charges  a  0.8%  fee  on  all  international 
transaction  where  a  currency  conversion  is  not  performed.  
When  a  currency  conversion  occurs,  Visa  charges  a  1.0% 
fee. 

The conversion rate to U.S. dollars will be made in accordance 
with the operating regulations for international transactions 
established by Visa International Inc.  Unless the converted 
amount is determined to be in error, the converted amount 
will be due as well as any conversion charges that may be 
imposed. 

Member NCUA • Equal Opportunity Lender                                                                                                                                   ADM2  4/12