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STATE FARM BANK 
CREDIT CARD AGREEMENT AND 
DISCLOSURE STATEMENT

the 

This  document  and 
table  of  Account-Opening 
Disclosures  and  other  information  printed  on  the  card 
carrier  that  accompanies  this  document  make  up  your 
credit  card  agreement  with  State  Farm  Bank.  They  are 
referred  to  together  throughout  this  document  as  the 
Agreement. They contain important terms and disclosures 
regarding  your  credit  card  account.  Please  read  them 
carefully and keep them for future reference. You will be 
bound by the terms of the Agreement unless you cancel 
your account within 30 days after you receive your credit 
card and before you or someone you have authorized uses 
your credit card or credit card account.

The Parties to this Agreement
In this Credit Card Agreement and Account Disclosures (this “Agreement”), 
the words “you” and “your” refer to each person who requests that we 
establish a credit card account (the “Account”) and issue a Visa® credit 
card (a “Card”) to that person or for use by another person. If two or more 
persons request that we issue credit cards on the same card Account, 
the  words  “you”  and  “your”  mean  each  and  either  of  those  persons, 
individually, and also all of those persons, jointly and severally. The words 
“we”, “us”, “our” and “State Farm Bank” mean State Farm Bank, F.S.B., 
a  federal  savings  bank  located  in  Bloomington,  Illinois.  Definitions  of 
additional terms are contained in other paragraphs of this Agreement.

Your Acceptance of the Terms of this Agreement
If you apply for a Card from us, or use a Card we issue to you, or use 
the account number associated with the Card, or if another person uses 
the Card or account number with your authorization, you will be deemed 
to have accepted and agreed to all of the terms and conditions of this 
Agreement.
If  you  do  not  wish  to  be  bound  by  the  terms  and  conditions  of  this 
Agreement,  do  not  use  the  Card  or  authorize  another  person  to  use  it. 
Instead, cut all of the Cards in two and return them to us within 30 days 
after you receive them.

How to Use Your Card
Subject to the terms of this Agreement, we will make loans to you at our 
offices in Bloomington, Illinois when you use your Card (which term as 
used in this Agreement includes use of the account number associated 
with your Card) as follows:
(a)  Purchases.  You  may  use  your  Card  to  purchase  or  lease  goods 
or  services  (“Purchases”)  from  merchants  who  honor  Visa  credit 
cards. Quasi-cash transactions, described below, are deemed to be 
Cash Advances and not Purchases.

(b)  Cash Advances.

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

that display the Visa logo.

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

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

(4)  We may send you blank forms of convenience checks or cash 
advance  checks  (“Convenience  Checks”  or  “Checks”)  from 
time to time. If we do, you may use a Check to obtain a Cash 
Advance  by  signing  and  completing  the  Check  in  accordance 
with  the  terms  on  the  Check  and  any  written  materials  that 
accompany it. You obtain a Cash Advance each time you use a 
Check and we pay it when it is presented to us, including when 
you use a Check to purchase or lease goods or services.
(5)  You  may  obtain  a  Cash  Advance  when  you  use  your  Card 
for  items  that  are  convertible  to  cash  or  similar  cash-like 
transactions that we may designate from time to time, including 
wire  transfer  money  orders,  other  money  orders,  travelers 
checks, or foreign currency or tax payments (so-called “quasi-
cash”  transactions).  However,  your  Card  may  not  be  used  to 
obtain, and we will not honor requests for, a Cash Advance in 
the form of casino chips, bets or wagers, gaming transactions 
(including Internet gambling), lottery tickets or the like.

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

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

Credit 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 sub-limit 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. 

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. 

Interest Charges
When Interest Begins to Accrue:
(a)  Interest on Purchases. Except as provided in paragraph (b) below, 
interest on each Purchase (including a Balance Transfer) will accrue 
daily  from  and  including  the  transaction  date  until  the  date  each 
Purchase is completely repaid according to the payment allocation 
method then in effect. If the transaction date was in an earlier billing 
cycle than the posting date, interest will accrue from and including 
the first day of the billing cycle in which the transaction was posted.
(b)  How to Avoid Paying Interest on Purchases. You can avoid paying 
interest  on  Purchase  (other  than  Balance  Transfers)  posted  to 
your  Account  if  you  pay  the  entire  New  Balance  of  your  Account 
each  month  not  later  than  the  Payment  Due  Date  shown  on  your 
Account  statement.  If  any  portion  of  the  balance  of  your  Account 
is  subject  to  an  introductory  or  promotional  rate,  to  avoid  paying 
interest on Purchases (other than Balance Transfers) posted to your 
Account during the billing cycle you must pay the entire New Balance 
(including any part of the balance that is subject to the introductory 
or  promotional  rate)  shown  on  the  statement  of  your  Account  for 
that billing cycle by the Payment Due Date shown on the statement. 
If you fail to pay the entire New Balance of your Account before the 
Payment Due Date in any month, you can again avoid paying interest 
on Purchase (other than Balance Transfers) in the manner described 
above after you have paid the entire New Balance of your Account by 
the Payment Due Date for two consecutive months.

(c)  Interest  on  Cash  Advances.  Interest  on  each  Cash  Advance  will 
accrue daily from and including the transaction date until the date 
each Cash Advance is completely repaid according to the payment 
allocation  method  then  in  effect.  The  transaction  date  for  Cash 
Advances obtained by a Check is the date we process the Check. 
(d)  Interest that Accrues Prior to Payment in Full. Interest accrues on 
the unpaid balance of your Account as described above until the date 
the balance is paid in full, except to the extent paragraph (b) above 
applies to Purchases posted to your Account. If you pay the entire 
New Balance shown on the monthly statement of your Account by 
the  Payment  Due  Date,  you  will  receive  a  statement  the  following 
month for interest that accrued from the closing date of the previous 
billing cycle until the date your payment in full was posted to you 
Account,  even  if  no  new  transactions  are  posted  to  your  Account 
after the closing date of the previous billing cycle. To minimize the 
amount of this interest, pay the New Balance in full immediately upon 
receipt of your monthly statement.

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

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

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

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

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

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

Calculating  the  Balances  to  which  the  Periodic  Interest  Rates 
Are  Applied:  We  calculate  an  “average  daily  balance”  separately  for 
Purchases  (including  Balance  Transfer,  but  excluding  any  introductory 
period  Balance  Transfers),  Cash  Advances,  any  introductory  period 
Balance Transfers then in effect, and any special rate offers then in effect. 
To get the “average daily balance” of your Account we take the beginning 
balance of your Account each day for each of these types of transactions, 
add  any  new  Purchases  (including  Balance  Transfers,  but  excluding 
any  introductory  period  Balance  Transfers  and  introductory  period 
Purchases), Cash Advances, introductory period Balance Transfers and 
other  special  rate  offers  (as  applicable),  and  subtract  any  payments 
and other credits applied to that type of transaction under the payment 
allocation method then in effect. This gives us the daily balance for each 
of these types of transactions. (Credit balances are treated as zero for 
purposes of calculating the daily balances.) Then, we add all of the daily 
balances for the billing cycle for each of these types of transactions and 
divide the respective totals by the number of days in the billing cycle. This 
gives us the “average daily balance” for your Account for each of these 
types of transactions. 

Calculating  Interest  and  Other  Finance  Charges;  Minimum  Interest 
Charge: We figure the interest on Purchases (including Balance Transfers) 
and Cash Advances charged to your Account by multiplying each of the 
“average daily balances” of your Account by the applicable daily periodic 
rate of interest and then by the number of days in the billing cycle, and 
by adding the resulting products together. We then add any transaction 
fee finance charges, each calculated as provided below. If the amount of 
finance charge calculated as described above is more than zero but less 
than $1.50, a minimum monthly finance charge of $1.50 will be charged 
to your Account. We may, at our election, waive the finance charge on 
small Account balances.

Finance Charges
(a)  Cash Advance Fee: If you use your Card or a Check (Convenience 
Check)  to  obtain  a  Cash  Advance,  we  will  charge  your  Account  a 
Cash Advance fee equal to 4% of the U.S. dollar amount of the Cash 
Advance, subject to a minimum fee of $10 for each Cash Advance.

(b)  Balance  Transfer  Fee:  If  you  make  a  Balance  Transfer  to  your 
Account, we will charge your Account a Balance Transfer fee equal 
to 3% of the U.S. dollar amount of the Balance Transfer transaction, 
subject to a minimum fee of $10 and a maximum fee of $250 for 
each Balance Transfer.

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

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

minimum Payment Due is less than $25; or

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

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

minimum Payment Due is less than $25; or

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

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

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

minimum Payment Due is less than $25; or

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

However, the amount of the fee will be $35 if you also incurred the same 
fee on your Account within the immediately preceding six billing cycles 
of your Account.

Other Charges:
The following fees will be charged to your Account as a Purchase in the 
billing cycle in which the event occurs:
(a)  a monthly fee 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  monthly  Minimum  Payment  Due  is  1%  of  the  New 
Balance (less interest charges and Late Fees and rounded to the nearest 
$5.00)  +  Interest  Charges  +  Late  Fees  +  any  Past  Due  Amounts  or 
$40,  whichever  is  the  greater  (or  your  entire  New  Balance  if  less  than 

 
 
 
 
$40). 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. Or make your 
payment  online  by  going  to  statefarm.com.  The  crediting  of  payments 
sent to any location other than the payment address or received in any 
other  manner  may  be  delayed.  Do  not  send  correspondence  of  any 
type  to  the  payment  address.  When  you  provide  a  check  as  payment, 
you  authorize  us  either  to  use  information  from  your  check  to  make  a 
one-time  electronic  fund  transfer  from  your  Account  or  to  process  the 
payment  as  a  check  transaction.  When  we  use  information  from  your 
check to make an electronic fund transfer, the funds may be withdrawn 
from your account on which the check is drawn as soon as the same day 
we receive your payment and you will not receive your check back from 
your financial institution. For inquiries about your account, please call us 
toll-free at 1-877-SF4-VISA (1-877-734-8472) or write us at PO Box 87, 
Deposit, New York 13754-0087. 
Your  payments  will  be  allocated  among  the  charges  on  your  Account 
in  any  manner  we  determine  that  is  consistent  with  the  requirements 
of  applicable  law,  without  regard  to  any  contrary  instructions  from 
you  If  different  annual  percentage  rates  apply  to  different  balances  of 
your  Account,  we  will  allocate  any  amount  you  pay  in  excess  of  the 
required  Minimum  Payment  Due  first  to  the  balance  with  the  highest 
annual percentage rate and any remaining portion to the other balances 
in  descending  order  based  on  the  applicable  annual  percentage  rate 
in  a  manner  that  complies  with  applicable  regulations  and  regulatory 
guidance. Even though your payment may be credited to your Account 
in the billing cycle in which the payment is received, your available credit 
may not be increased by the amount of the payment until your payment 
has cleared.
If you pay more than the Minimum Payment you will not thereby prepay or 
postpone the due date of payments in the following months and you will 
continue to be obligated to make the Minimum Payment amount (if any) 
shown on your monthly statements in succeeding months.
Payments must be made in U.S. dollars, and we may refuse to accept 
checks not denominated in U.S. dollars. You agree not to use a State Farm 
Bank Balance Transfer, Convenience Check, or the proceeds of a Cash 
Advance to make any payment on your Account.

Our Right to Require Immediate Payment
Subject  to  our  giving  any  notice  required  by  law  and  to  any  other 
limitations imposed by law, you will be in default and, at our election, we 
can require you; to pay immediately all amounts you owe us under this 
Agreement without notice or demand if (1) you fail to pay any amount 
you owe under this Agreement exactly when due; or (2) your Account 
balance exceeds your credit limit, or if we have established a separate 
Cash  Advances  credit  limit  or  other  credit  sub-limit  for  your  Account, 
your Cash Advances balance exceeds your Cash Advances credit limit or 
you exceed any other credit sub-limit of your Account; or (3) you fail to 
abide by any other term of this Agreement; or (4) your ability to pay us is 
materially impaired (including, without limitation, if you file or have filed 
against you as debtor a proceeding under any chapter of the Bankruptcy 
Code); or (5) you die or become incapacitated; or (6) you are in default 
on any other credit account or loan you have with us.

Collection Costs
If you are in default, unless prohibited by applicable law, you agree to pay 
us or reimburse us for all costs and disbursements, including reasonable 
attorney’s  fees,  we  pay  or  incur  in  legal  proceedings  (including 
bankruptcy  proceedings)  to  collect  or  enforce  the  debt  you  owe  under 
this Agreement.

Payment Holidays
From time to time, solely at our option, we may allow you to skip one or 
more monthly payments. We will notify you when this option is available. 
If  you  skip  a  payment,  interest  (and  credit  protection  fees,  if  any)  will 
continue  to  accrue  on  your  Account  balance  in  accordance  with  this 
Agreement. The requirement that you make the Minimum Payment due 
each month will resume following the payment holiday.

Transactions Made in Foreign Currencies
If a transaction is made in a foreign currency, we and Visa International 
will  convert  the  transaction  into  a  U.S.  dollar  amount.  Visa  will  act  in 
accordance with their operating regulations or conversion procedures in 
effect  at  the  time  the  transaction  is  processed  and  may  use  (i)  a  rate 
selected by Visa from the range of rates available in wholesale currency 
markets for the applicable central processing date, which rate may vary 
from the rate Visa itself receives, or (ii) the government-mandated rate in 
effect for the applicable central processing date, in each instance plus or 
minus any adjustment determined by Visa or us. The currency conversion 
rate calculated in this matter that is in effect on the processing date may 
differ from the rate in effect on the transaction date or the posting date. 
When  any  transaction  must  be  converted  back  into  a  foreign  currency 
because  of  a  refund  or  other  reversed  transaction,  the  same  currency 
conversion formula will apply.

Billing Cycles of Your Account
Each billing cycle of your Account begins on the day after the closing date 
shown on the preceding monthly statement of your Account and ends on 
the closing date shown on the monthly statement of your Account for the 
current month. A billing cycle occurs even if you do not receive a monthly 
statement of your Account as otherwise provided in this Agreement.

Authorized Use of Your Card by Others
If you permit any person to have access to your card or Account number 
with the authorization to make a charge, or if you request us to issue a 
Card on your Account to another person, you will be liable for all charges 
made by that person, including charges you may not have intended that 
person to make.
If  you  are  an  authorized  user  and  you  use  a  card  or  the  Account,  you 
are  liable  for  each  transaction  you  make  on  the  Account  plus  any 
Finance Charges, Fees and Other Charges, and expenses provided in this 
Agreement and related to such transactions. If you are an authorized user, 
your liability does not relieve any cardholder under this Agreement from 
liability for the authorized user’s transactions until paid.

Special Provisions Regarding Checks
You  may  stop  payment  on  an  unpaid  Check  by  providing  us  with  the 
check number, dollar amount, and payee exactly as they appear on the 
Check.  A  stop  payment  request  expires  six  months  after  the  date  we 
accept your stop payment order unless you renew it in writing within two 
weeks prior to the expiration date.
If  you  post-date  a  Check,  we  may  honor  the  Check  immediately  upon 
presentment  or  return  it  unpaid,  at  our  election,  without  in  either  case 
waiting until the date shown on the Check. We are not liable to you for any 
loss or expense incurred by you arising out of the action we elect to take.
You may not use a Check or any other Cash Advance to make a payment 
under this Agreement or any other credit account you may have with us. 

Certain Limitations on Use of Your Card
Your Account is a consumer credit account. You must not use your Card 
primarily for business or commercial purposes.
You  must  not  use  your  Card  for  any  unlawful  purpose  or  in  any  illegal 
transaction.

Additional Cardholder Benefits
We  may  offer  you  certain  additional  cardholder  benefits  from  time  to 
time,  including  balance  transfers,  interest  free  special  purchases,  and 
temporary  APR  reductions.  Any  such  benefits,  if  offered  and  provided 
to you, will be subject to the restrictions outlined in the benefits brochure 
we provide to you. However, unless otherwise stated in the promotion, 
the terms of this Agreement shall also govern any such Special Purchase 
Promotion. We reserve the right to change, add to or discontinue these 
benefits and services at any time without notice to you.

Refusal to Honor Your Card; Refused Authorizations
We will not be liable if any other bank, any ATM, or any seller or lessor 
of  goods  or  services  refuses  to  honor  your  Card  or  retains  your  Card 
when you attempt to use it. Even though you have available credit on your 
Account, we may fail or decline to authorize a particular transaction due 
to operational difficulties or, at our discretion, for other reasons we deem 
to be appropriate.

Gaming and Wagering Transactions
The  State  Farm  Bank  credit  card  is  not  to  be  used  for  any  gaming  or 
wagering  transactions,  including  transactions  for  casino  chips,  bets, 
wagers, Internet gambling or any other gaming or wagering transaction. 
State Farm Bank will decline transactions for casino chips, bets, wagers, 
Internet gambling or any other gaming or wagering transaction.

Suspension or Termination of Your 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,  PO  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, PO 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, PO 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, PO 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, PO 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,  PO  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-L249-8 -0512   CP10-87312