Line of Credit Account Agreement and Disclosure

(For Line of Credit and Overdraft Reserve)
Effective Date 01/01/2013

The following is important information pertaining to our Personal Line of Credit account. Here, you have the opportunity to read and print the following important information before proceeding to the application by selecting the Accept button at the bottom of this page. By continuing, I/We certify that we have access to a printer and have had the opportunity to print the important information below.

Important Information About Procedures for Opening a New Account: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

By accessing (My,Our) Line-of-Credit account(s) by any method (I,WE), jointly and severally, agree to the terms and conditions that follow in this Agreement:

USU Charter Federal Credit Union (USUCCU) has extended to the above account holder (I,WE), (an) open end line(s)-of-credit to be activated by using a debit card in conjunction with a USUCCU checking account, by overdrafting a checking account, by ATM, by Telephone Teller, by Web Teller, by advance request, or by any other manner. Applicable cards have been issued to the account holder(s). I agree that any action by USUCCU necessitating a line-of-credit advance shall be deemed an extension of credit and I am also liable for any extensions on my line-of-credit(s) in excess of my applicable line-of-credit limit(s). When I overdraw my checking account (if applicable), USUCCU may extend a loan advance from my line-of-credit to cover the overdraft. When I perform a transaction in excess of my checking balance, by using my debit card (if applicable), I am extended a loan advance on my line-of-credit as soon as the draft is presented to USUCCU for payment. I may also obtain an advance on my Line of Credit Account at a credit union office, by Telephone Teller, or by Web Teller. Finance charges apply to all accounts from the date of the advance until the date paid. If I have a checking account, I understand that if I write checks in excess of my checking account balance and available line-of-credit limit, USUCCU is under no obligation to honor such drafts. I am liable for any extensions on my line-of-credit (if applicable) in excess of the applicable line-of-credit limit.

I can pay off my line(s)-of-credit account balance(s) in full or budget my payments. Each month, USUCCU will send me a statement showing any credit which has been extended under this agreement, payments I have made, and my balance. The minimum amount that must be paid monthly will be stated on my statement. The payment may vary from time to time depending on any new credit extended under this agreement. Payments are due on or before the 15th day of each month. The minimum payment will be 2.50% of the outstanding balance or $25.00, whichever is greater.  Minimum Payment Warning: Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance.A late fee will be charged to your account when you do not make the minimum payment by the due date. The late payment fee charged is $35.00.  In addition to the principal and other amounts borrowed on my account, I promise to pay USUCCU a FINANCE CHARGE for amounts due. You will be charged interest from the transaction date. The FINANCE CHARGE is calculated at the time a payment is made as follows: We figure the interest charge on your account by applying the periodic rate to the daily balance of your account for each day the balance has been outstanding. To get the daily balance we take the ending principal balance from the previous day, add the purchases, cash advances, balance transfers, and other charges posted to your account that day and subtract principal payments and other credit transactions effective that day. To get the daily interest on the daily balances, each daily balance is multiplied by the periodic rate. Then, we add all the daily interest charges to calculate the FINANCE CHARGE due. The variable daily periodic rate is 1/365 of the variable ANNUAL PERCENTAGE RATE (APR). The current variable daily periodic rate is .027123%, .030548%, or .049315 %. The current ANNUAL PERCENTAGE RATE (APR) is 9.90%, 11.15%, or 18.00% depending on USUCCU’s standards for creditworthiness. USUCCU may, but is not required to, periodically obtain updates of my Experian credit report and Fair Isaac score and adjust my margin and ANNUAL PERCENTAGE RATE accordingly. These adjustments will take effect on the first day of the quarter after USUCCU obtained my updated Experian credit report and Fair Isaac score. The APR and the periodic rate vary quarterly under the terms of this agreement. The APR for each quarter shall be determined by using the lowest PRIME RATE charged by banks as published in the Wall Street Journal "Money Rates" table on the last day of the preceding quarter (March 31, June 30, September 30, and December 31) PLUS a margin which will be determined by USUCCU’s standards for creditworthiness. The maximum APR I will be expected to pay is 18%. The minimum APR will be 9.90%. I will be required to pay the maximum APR if my account becomes 60 or more days delinquent. The application of the APR will be set forth on my monthly statement. A change in the APR will not change the monthly payment but will cause the term of the agreement to change. An increase in the APR will require more payments; a decrease in the APR will require fewer payments. The APR will be adjusted on the first day of the quarter according to the APR then in effect.

Foreign Transactions: All Visa credit card and debit card transactions made in foreign countries will be billed to you in US dollars. Conversion to US dollars is determined by (1) 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 (2) the government-mandated rate in effect for the applicable central processing date. A one percent currency conversion fee is also added to these rates.

Non-Visa Debit Transactions: USU Charter Credit Union enables non-Visa debit transaction processing and does not require that all such transactions be authenticated by a PIN. A non-Visa debit transaction may occur on your debit card through the Star, CO-OP, and PLUS ATM networks. Examples to distinguish between a Visa debit and non-Visa debit transaction:

• To initiate a Visa debit transaction at the point of sale, the cardholder signs a receipt, provides a card number (e.g., in e-commerce or mail/telephone order transactions) or swipes the card through a point-of-sale terminal.
• To initiate a non-Visa debit transaction, the cardholder enters a PIN at the point-of-sale terminal or, for certain bill payment transactions, provides the account number for an e-commerce or mail/telephone order transaction after clearly indicating a preference to route it as a non-Visa transaction.

A non-Visa debit transaction will not provide the zero liability protection benefit, and if a Rewards program is present, a non-Visa debit transaction may not be an eligible Rewards transaction.

Provisions of the separate VISA Credit Card, Account/Cardholder Agreement and Disclosure relating only to Visa transactions are inapplicable to non-Visa transactions.

If I close my USUCCU checking account, if applicable, I agree to discontinue using and immediately return to USUCCU any debit cards I have been provided. Unless my line-of-credit is terminated by USUCCU, I may continue to use my line-of-credit. I agree that USUCCU may change, according to the law, any terms and/or conditions of this Agreement. Notice of the changes will be mailed to me at the address used by USUCCU for sending my monthly statement. I agree that a VISA debit card may not be used for any illegal transactions. I agree that USUCCU will refuse to authorize all live and Internet gambling VISA debit card transactions.

If USUCCU is forced to take collection action, I agree to pay all court costs, costs of appeal, collection fees, and reasonable attorney's fees incurred by USUCCU, or as charged by any collection agency. If I move, I will send USUCCU my new address immediately. I can be charged special handling fees and/or penalties including a fee for each transaction which exceeds my line(s)-of-credit whether such transaction is honored or not by USUCCU. If I miss a payment or break any promise I have made under this Agreement or any other Agreement I have with USUCCU, USUCCU may declare my entire balance due and payable at once without notice or demand. USUCCU may do this if I have made any misrepresentations in applying for credit or if anything happens that indicates to USUCCU that I may be unable or unwilling to repay the loan. I agree to let USUCCU know immediately if I have any questions about my monthly statement. The billing error statement I have received tells me what to do if I think USUCCU has made a mistake on my statement.

Statutory Lien and Right of Set Off. All savings or dividends in any individual, joint, multiple party, or transaction account at the Credit Union are subject to a statutory lien and right of set off for any amounts owed to the Credit Union by a member or other person having any ownership interest in the account. This lien and right of set off applies to any amounts in the account in the future. The Credit Union may exercise its lien and right of set off without notice and without judicial process. The lien and right of set off does not apply to amounts in any Individual Retirement Account.

The written agreement is a final expression of the agreement between the applicant(s) and the credit union. This written agreement may not be contradicted by evidence of any oral agreement or alleged oral agreement. The applicant(s) acknowledge receiving a copy of this Line-of-Credit Account Agreement and Disclosure and agree that only the written credit agreement contains the terms applicable to the credit transaction

The variable APR above is based on the 3.25% prime rate on 06/30/2010. Please contact USUCCU for current rates.

DISCLOSURE OF REQUIRED INFORMATION

This disclosure and the APRs are effective as of 09/15/2011 and are subject to change after that date. To find out what may have changed, please phone (435) 753-4080 or (800) 248-6361, or write to USUCCU VISA DEPT, PO BOX 446, LOGAN, UT 84323-0446.

How We Will Calculate Your Balance: See your Line of Credit Account Agreement and Disclosure.

YOUR BILLING RIGHTS
(KEEP THIS NOTICE 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: USU CHARTER CREDIT UNION, PO BOX 446, LOGAN, UT 84323-0446.

In your letter, give us the following information:
• Account information: Your name and account number.
• Dollar amount: The dollar amount of the suspected error.
• Description of problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake.

You must contact us:
• Within 60 days after the error appeared on your statement.
• At least 3 business days before an automated payment is scheduled, if you want to stop payment on the amount you think is wrong.

You must notify us of any potential errors in writing. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question.

What Will Happen After We Receive Your Letter

When we receive your letter, we must do two things:
1. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error.
2. Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct.
While we investigate whether or not there has been an error:

• We cannot try to collect the amount in question, or report you as delinquent on that amount.
• The charge in question may remain on your statement, and we may continue to charge you interest on that amount.
• While you do not have to pay the amount in question, you are responsible for the remainder of your balance.
• We can apply any unpaid amount against your credit limit.

After we finish our investigation, one of two things will happen:
• If we made a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount.
• If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent if you do not pay the amount we think you owe.

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.

Liability for Unauthorized Use: Tell us at once if you believe your card or your PIN has been lost or stolen or if your statement shows transactions you did not make. Telephoning is the best way of keeping your possible losses down. Please contact us at (435) 753-4080 or (800) 248-6361. Written verification may be required. You could lose all of you the money in your account(s) plus your maximum line(s) of credit. If you contact us within two (2) business days of learning of the loss or theft of your card, you can lose not more than $50.00. If you do NOT contact us within two (2) business days, you could lose up to $500. If your statement shows transactions you did not make, tell us at once. If you do not notify us within 60 days of the mailing date of your statement, you may be obligated for all unauthorized transfers and/or use of your card.
rev. 01/13

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