2.

3.

In this Agreement, the words “you” and “your” mean or refer to each and all
persons who have applied for the Card or Cards by signing this Agreement.
Every person signing this Agreement represents that he or she is a member of
the credit union. “Card” means the VISA Credit Card or Cards and any dupli-
cates and renewals thereof or substitutions we may issue. “Account” means
your VISA  Credit  Card  line  of  credit  loan  account  with  us. “Issuer,” “us,”  and
“ours”  means  or  refers  to  this  credit  union.  This  Agreement  is  a
Truth-In-Lending Disclosure Statement as well as a contract.
1.

RESPONSIBILITY—The  purpose  of  this  Agreement  is  to  establish  the
terms and conditions of your credit card agreement with United Federal
Credit  Union.  When  you  applied  to  us  for  a  VISA  account,  you  agreed
that by using or allowing the card(s) received to be used that you agree
to  these  conditions. You  promise  to  repay  all  debts  and  the  FINANCE
CHARGE thereon arising from any authorized use of the Card and the
Card  Account.  For  example,  you  are  responsible  for  charges  made  by
yourself,  your  spouse  and  minor  children. You  are  also  responsible  for
charges  made  by  anyone  else  to  whom  you  give  the  Card,  and  this
responsibility continues until the card is recovered. You cannot disclaim
responsibility  by  notifying  us,  but  we  will  take  prompt  steps  to  try  to
prevent any further Card use if you so request. If the Agreement is signed
by  two  persons  (members),  the  Account  is  joint  that  is,  each  of  you,
separately  and  jointly,  are  liable  for  all  debts  and  FINANCE  CHARGE
thereon. Your  obligation  to  pay  all  such  debts  and  FINANCE  CHARGE
thereon  continues  even  though  an  agreement,  divorce  decree  or  other
court judgment to which we are not a party may direct that only one of
you, or some person other than you (or both of you), may pay such debts
and FINANCE CHARGE.
CREDIT LINE—We will establish a self-replenishing line of credit for you
and will notify you of the amount thereof (“credit limit”) which is available
to  you  by  mail.  If  the  credit  line  is  less  than  five  thousand  dollars
($5,000.00),  a  VISA  Classic  card  will  be  issued.  That  letter  is  hereby
incorporated herein as part of this Agreement. You agree not to let your
Account balance exceed such amount. Each payment you make on the
Account will replenish your credit limit by the part of the payment which is
applied to principal. You may request an increase in the credit limit only by
a written request, which must be approved by us. We may reduce your
credit limit from time to time or may, with good cause, revoke your Card
and  terminate  this  Agreement.  In  either  event,  we  will  give  you  written
notice  of  such  action.  “Good  cause”  includes  your  failure  to  satisfy  the
terms  of  this  Agreement,  or  our  adverse  re-evaluation  of  your
creditworthiness.  However,  you  may  terminate  this  Agreement,  at  any
time  and  for  any  reason,  by  giving  us  written  notice.  Nevertheless,
termination  by  you  or  by  us  does  not  affect  your  obligation  to  pay  all
debts  and  FINANCE  CHARGE  thereon  arising  from  authorized  use  of
your  Card.  The  Cards  remain  our  property  and  you  must  recover  and
surrender  to  us  all  Cards  upon  our  request  or  upon  termination  of  this
Agreement.
USING THE CARD—If you choose not to accept the card(s) issued, and
personal identification number, please cut them in half and return to the
credit union within 30 days. When you receive your Card, each Card must
be  signed  (in  the  space  provided  on  the  back)  by  the  person  whose
name is embossed thereon. That signature must be in the same form as
embossed on the front of the Card. To make a purchase or cash advance
several alternative procedures may be followed. One is for you to present
the Card to a participating VISA merchant or financial institution, or to us,
and sign the sales draft or cash advance slip which will be imprinted with
your Card. Another is to complete the transaction  by using your Personal
Identification Number (PIN) in conjunction with the Card, in accordance
with the instructions given to you by an Automated Teller Machine (ATM),
or  other  type  of  electronic  terminal  that  provides  access  to  the  VISA
system, by a participating VISA-plan merchant, by us, or another finan-
cial institution. Another is the writing of a credit loan draft which may be
used  to  access  your  VISA  line  of  credit.  Please  note  that  we  are  not
responsible  if  a  particular  VISA-plan  merchant  or  financial  institution
refuses to honor your Card. You will receive a copy of the draft which you
should  retain  to  verify  your  monthly  statement.  We  will,  upon  request,
furnish  you  with  a  copy  of  a  draft  at  a  charge  disclosed  on  the  service
charge  schedule. You  agree  that  the  use  of  the Visa  Card  to  obtain  a
service  or  effect  a  transaction  that  is  illegal  under  the  law  of  any
jurisdiction where originated, effected or accomplished, will be a default
and breach of this agreement. United Federal Credit Union may terminate
your  access  to  the  service  or  withdraw  your  right  to  use  the  Visa  Card
and/or  demand  the  return  of  all  Visa  Cards  or  other  access  devices
issued to you. If illegal use of your Visa Card occurs, you waive the right
to  sue  United  Federal  Credit  Union  and  agree  to  indemnify  and  hold
United Federal Credit Union harmless from any suits or other legal action
or  liability  which  may  be  asserted,  directly  or  indirectly,  against  United
Federal Credit Union arising out of or resulting from the illegal use of the
Visa Card.

4. MONTHLY PAYMENT—A statement will be mailed every month showing
your  “Previous  Balance”;  “Purchases”;  and  “Cash  Advances”  the
transactions  posted  to  your  account  since  the  previous  statement,  the

5.

VISA CREDIT CARD AGREEMENT
AND TRUTH-IN-LENDING DISCLOSURE STATEMENT
VARIABLE RATE PRODUCTS
Effective February, 2010

“New  Balance”  and  the  FINANCE  CHARGE,  the  Minimum  Payment
required, and the remaining part of the credit limit still available. You must
pay  at  least  the  Minimum  Payment  by  the  due  date  shown  on  your
statement. Of course, you may pay any amount greater than the Minimum
Payment,  including  the  entire  New  Balance  on  the  statement,  without
any  penalty  for  prepayment.  And  you  can  make  payments  on  the
Account as often as you wish. The Minimum Payment will be either (a) 3%
of your New Balance or $20.00, whichever is greater for VISA Classic or
VISA Gold cards, (b) 2% of your New Balance or $20.00, whichever is
greater for VISA Platinum cards, or (c) your full New Balance if it is less
than $20.00; however, the Minimum Payment shown on your statement
will also include any unpaid portions of Minimum Payment(s) shown on
earlier statement(s), in addition, if at any time your New Balances exceed
the credit limit, you must pay us that excess immediately. We will apply
your payments in the following order:
(a) To  the  previously  billed  and  unpaid  FINANCE  CHARGE  on “Cash

Advances;”

(b) Then,  to  previously  billed  and  unpaid  FINANCE  CHARGES  on

“Purchases;”
Then, to previously billed cash advances;

(c)
(d) Then, to previously billed purchases;
(e) Then, to new cash advances, whether or not billed on the monthly

(f)

statement;
Then  to  new  purchases,  whether  or  not  billed  on  the  monthly
statement.

Payment amount in excess of your minimum payment will be applied first
to balances with the highest Annual Percentage Rate until that balance
is paid off and then to balances with the next highest Annual Percentage
Rate until those balances are paid off.
FINANCE  CHARGE—The  FINANCE  CHARGE  is  determined  by
multiplying your “Average Adjusted Daily Balance” for the statement    billing
period  by 
the  MONTHLY  PERIODIC  RATE.  The  ANNUAL
PERCENTAGE RATE referred to herein is a Variable Rate and may vary
in accordance with the following:
(a) The rate may be changed by United Federal Credit Union monthly.
(b) The change will not apply to your account until the first day of your

(c)

next billing cycle that begins after a rate change date.
The ANNUAL PERCENTAGE RATE will be determined monthly by
adding a margin to an Index value. For Visa Classic the margin is
11.74  percentage  points;  for  Visa  Gold  the  margin  is  9.74
percentage points; for Visa Platinum the margin is 6.74 percentage
points. The Index value is the Prime Interest Rate published in the
Wall Street Journal “money rates” table on the last business day of
the month (or next business day if the last day falls on a weekend or
holiday). A new rate will not apply to your account until the first day
of your next billing cycle that begins after a change date.

(d) An increase in the “Index” will result in an increase in the FINANCE
CHARGE,  and  it  may  have  the  effect  of  increasing  your  Minimum
Payment.  A  decrease  in  the  “Index”  value  will  have  the  opposite
effect of an increase.

FINANCE CHARGE (INTEREST) is calculated on the “Average Adjusted
Daily  Balance”  of  your  account.  An  Average  Adjusted  Daily  Balance  is
calculated  separately  for  purchases  and  cash  advances  and  is
determined as follows: For each day during the statement period (billing
cycle) the principal balances of purchases or cash advances posted to
the  Account  that  day  and  are  decreased  by  any  payments  or  credits
posted to the Account that day. Such daily principal balances are sepa-
rately totaled and then divided by the number of days in the statement
period  resulting  in  the  “Average  Adjusted  Daily  Balance”  of  purchases
and cash advances shown on your statement.
You  can  avoid    a  FINANCE  CHARGE  on  purchases  by  paying  the  full
amount  of  the  “New  Balances”  of  “Purchases”  each  month  by  the  due
date shown on your statement. If you fail to pay the entire “New Balance”
of  “Purchases”  shown  on  any  statement  by  the  payment  due  date,
FINANCE CHARGE will accrue during the next billing cycle with respect to
such “New Balance” of “Purchases” and with respect to purchases first
posted  to  your  Account.  There  is  no  FREE  INTEREST  period  for  cash
advances.

6. OTHER CHARGES—Your account will be subject to OTHER CHARGES.
Late Payment fee of $25.00 will be assessed once the account falls 10
days  past  due.  A  plastic  card  fee  may  apply:  the  first  two  cards,  per
account, are provided free. If any additional cards are requested, a fee of
$5.00 will apply. If an entirely new VISA account is required due to lost or
stolen cards, the fee as disclosed on the Service Charge Schedule will
apply.  A  Personal  Identification  Number  (PIN)  replacement  charge  of
$5.00 applies if you lose or forget your PIN. The charge for a copy of a
draft slip is disclosed on the Service Charge Schedule. This credit union
reserves the right to charge Automated Teller Machine (ATM) transaction
charges. If we do, we will notify you of such charges and the method we
use  to  determine  them.  Additional  charges  may  also  be  assessed  if
cardholder pays Issuer with a check which is not honored by cardholder’s
financial institution or requests a copy of a document. No finance charge

13519.P65

1

2/16/2010, 4:32 PM

will be assessed on such additional charges. There is no fee for a cash
advance. There is no fee for balance transfers.
CREDITS—If merchants who honor your Card give you a credit for     returns
or adjustments, they will do so by sending us a credit slip which we will
post to your Account. You should keep your copy of the credit slip to verify
your monthly statement. If your credits and payments exceed what you
owe us on the Account, we will credit your account right away but if you
want the excess to be credited back to you, it must be requested so, in
writing, as soon as possible.
Foreign Transactions. When you use your VISA-branded Credit Card at
a merchant that settles in currency other than US dollars, the charge will
be converted in the US dollar amount. The currency conversion rate used
to determine the transaction amount in US dollars is either a rate selected
by VISA from the range or rates available in wholesale currency markets
for the applicable central processing date, which rate may vary from the
rate VISA itself receives, or the government-mandated rate in effect for
the applicable central processing date. The currency conversion rate in
effect  on  the  processing  date  may  differ  from  the  rate  in  effect  on  the
transaction  date  or  posting  date.

Visa  USA  charges  us  a  .8%  International  Service  Assessment  on  all
international  transactions,  regardless  of  whether  there  is  a  currency
conversion.  If  there  is  a  currency  conversion,  the  International  Service
Assessment is 1% of the transaction. As a result, we charge you a 1%
international transaction fee on all international transactions regardless
of whether there is a currency conversion. An international transaction is
a transaction where the country of the merchant is outside the USA.
LOSS OR THEFT OF CARD—You agree to notify us immediately upon
discovering that your Card has been lost or stolen.

7.

8.

9.

10. LIABILITY  FOR  UNAUTHORIZED  USE—You  may  be  liable  for  the
unauthorized  use  of  the  card  or  related  cards  as  provided  in  this
paragraph. If your card is lost or stolen please notify us immediately at:

United Federal Credit Union
2807 S. State Street
St. Joseph, Michigan 49085
(888)  982-1400

If  you  have  a  consumer  account  or  a  business  account  for  which  less
than 10 cards have been issued, your liability is as follows:

VISA Credit Card: You have zero liability

If you have a consumer or a business account for which 10 or more cards
are issued to employees of a single business or organization there is no
limit to your liability for unauthorized use that occurs before you notify us
as provided in this Agreement.

11. DEFAULT—You will be in default if you fail to make at least the “Minimum
Payment” by the due date shown on a monthly statement. You will also be
in default if (a) you breach any other conditions of the Agreement, (b) we
determine that your creditworthiness (which includes your ability to repay
us) has become unsatisfactory due to employment status, (c) in the event
this Agreement is terminated by you or by us for any reason, or (d) if you
die, file for bankruptcy or become insolvent. You will be in default if you
default on any other indebtedness to the credit union. When you are in
default,  the  entire  balance  on  the  Account  becomes  due  and  payable
forthwith. You agree that, in the case of death, you will pay all usual and
customary costs of collection permitted by law.

12. CREDIT    INFORMATION—You  authorize  us  to  investigate  your  credit
standing  when  opening,  renewing  or  reviewing  your  Account,  and  you
authorize  us  to  disclose  information  regarding  our  experience  with  you
under this Agreement to credit bureaus and other creditors.

13. EFFECT  OF  AGREEMENT—This  Agreement  contains  our  complete
contract relating to the Account and applies to every transaction relating
to the Account even through a sales, cash advance draft, or a credit slip
you sign or receive even though the slips may contain different terms.

14. AMENDMENT OF AGREEMENT—From time to time, we may amend this
Agreement  by  giving  you  written  notice  of  the  amendment  at  least  15
days before it goes into effect. The notice will be sent to your last known
address appearing in our records when it is sent, and will state the date
upon which the amendment will become effective.

15. CASH ADVANCES BY MACHINE—If Automated Teller Machines or other
electronic  devices  are  available  while  this  Agreement  remains  in  effect
which make it possible for you to obtain a cash advance by use of your
Card  in  such  a  machine,  we  will  furnish  you  with  a  secret  Personal
Identification Number (PIN). Your use of that number, together with your
Card,  in  getting  a  cash  advance  from  such  a  machine  is  agreed  to
constitute your signature for purposes of such cash advances.

16. RECORD  KEEPING—You  hereby  agree  that  we  may  keep  the  card
application which bears your signature so that we can comply with federal
and/or state law relating to loan documents we are required to keep in
our files.
INSURANCE—Credit insurance is not required to obtain credit under this

17.

plan and will be included only if requested by the applicant.

18. SECURITY  INTEREST—To  secure  your  account,  you  grant  us  a
purchase money security interest under the Uniform Commercial Code in
any goods you purchase through the account. If you default, we will have
the right to recover any of these goods which have not been paid for. As
a  condition  for  approval  of  your  VISA  account  you  grant  us  a  specific
pledge of your credit union shares (deposits), excepting those accounts
that would have an adverse tax consequence. Collateral securing other
loans you have with the Credit Union may also secure this loan, except
that  your  home  will  never  be  considered  as  security  for  this  Account
notwithstanding anything to the contrary in any other agreement.

YOU PLEDGE AND GRANT TO UNITED FEDERAL CREDIT UNION A
SECURITY INTEREST IN ALL INDIVIDUAL AND JOINT ACCOUNTS
YOU HAVE WITH US NOW AND IN THE FUTURE TO SECURE YOUR
CREDIT CARD ACCOUNT(S) TO THE EXTENT OF THAT PORTION OF
THE LOAN BALANCE WHICH MAY BE IN DEFAULT OR EXCEEDS
YOUR  CREDIT  LIMIT,  INCLUDING  COSTS  OF  COLLECTION  AND
REASONABLE ATTORNEYS FEES. YOU AUTHORIZE US TO APPLY
THE BALANCE IN THESE ACCOUNT(S) TO PAY ANY AMOUNTS DUE
UNDER THIS AGREEMENT IF YOU SHOULD BE IN DEFAULT.

YOUR BILLING RIGHTS
KEEP THIS NOTICE FOR FUTURE USE
This  notice  contains  important  information  about  your  rights  and  our
responsibilities under the Fair Credit Billing Act.

Notify Us in Case of Errors or Questions About Your Bill
If  you  think  your  bill  is  wrong,  or  if  you  need  more  information  about  a
transaction on your bill, write us on a separate sheet at the address listed on
your bill. Write to us as soon as possible. We must hear from you no later than
60 days after we sent you the first bill on which the error or problem appeared.
You can telephone us, but doing so will not preserve your rights.
In your letter, give us the following information:
(cid:129) Your name and account number;
(cid:129) The dollar amount of the suspected error;
(cid:129) Describe the error and explain, if you can, why you believe there is an error.
If you need more information, describe the item you are not sure about.
If you have authorized us to pay your credit card bill automatically from your
savings or draft account, you can stop the payment on any amount you think
is wrong. To stop the payment your letter must reach us three business days
before the automatic payment is scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice
We must acknowledge your letter within 30 days, unless we have corrected the
error by then. Within 90 days, we must either correct the error or explain why we
believe the bill was correct.
After we receive your letter, we cannot try to collect any amount you question,
or report you as delinquent. We can continue to bill you for the amount you
question,  including  finance  charges,  and  we  can  apply  any  unpaid  amount
against your credit limit. You do not have to pay any questioned amount while
we are investigating, but you are still obligated to pay the parts of your bill that
are not in question.
If we find that we made a mistake on your bill, you will not have to pay any
finance  charges  related  to  any  questioned  amount.  If  we  didn’t  make  a
mistake, you may have to pay finance charges, and you will have to make up
any missed payments on the questioned amount. In either case, we will send
you a statement of the amount you owe and the date that it is due.
If  you  fail  to  pay  the  amount  that  we  think  you  owe,  we  may  report  you  as
delinquent. However, if our explanation does not satisfy you and you write to
us within ten days telling us that you still refuse to pay, we must tell anyone we
report you to that you have a question about your bill. And, we must tell you
the name of anyone we reported you to. We must tell anyone we report you to
that the matter has been settled between us when it finally is.
If we don’t follow these rules, we can’t collect the first $50.00 of the questioned
amount, even if your bill was correct.

Special Rule for Credit Card Purchases
If  you  have  a  problem  with  the  quality  of  property  or  services  that  you
purchased with the 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 property or services. There are two limitations on this right:
(a) You  must  have  made  the  purchase  in  your  home  state  or,  if  not  within
your home state, within 100 miles of your current mailing address, and
The purchase price must have been more than $50.00.

(b)
These  limitations  do  not  apply  if  we  own  or  operate  the  merchant  or  if  we
mailed you the advertisement for the property or services.

Illinois  Residents:  Residents  of  Illinois  may  contact  the  Illinois  Commissioner  of  Banks  &  Trust  Companies  for  comparative  information  on  interest  rates,  charges,  fees  and  grace  period.  Ohio  Residents: The  Ohio  laws  against
discrimination require that all creditors make credit equally available to all credit worthy 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. New York Residents: A consumer credit report may be ordered in connection with the update, renewal or extension of credit. Upon your request, you will be informed whether or not a consumer credit
report was ordered, and if it was, you will be given the name and address of the consumer reporting agency that furnished the report. Wisconsin Residents: No agreement, court order, or individual statement applying to marital property
will adversely affect a creditor’s interest unless prior to the time credit is granted the creditor is furnished a copy of the agreement, court order, or statement, or has knowledge of the adverse provision. California Residents: You have the
right to request credit bureaus to prohibit use of information from their credit file in connection with credit transactions not initiated by you. You exercise this right by contacting the appropriate credit bureau directly.

Copyright 1998 ConmarSystems, Inc., Peachtree City, GA 30269—CFS 13519  Rev. 2/10

13519.P65

2

2/16/2010, 4:32 PM