Visa Credit Card Agreement

1. Agreement. This is an agreement between credit union (referred to as the Credit Union, “us” or “we”) and each person who signs the application for the VISA account (referred to as “you”). VISA card(s) issued in connection with this account are referred to as “card”. Your first use of the card will mean that you accept the terms of this Agreement relating to those features. Before the first use of the card, this agreement will not be in effect, and you will not be responsible for use of the card if it is lost or stolen. However, you agree to pay all charges (purchases and cash advances) to your account made by you or anyone whom you authorized to use your account.

2. Using the Account. If you are approved for a VISA account, the credit union will establish a line of credit for you and notify you of its amount when the card is sent to you. You agree not to let your account balance exceed your approved credit limit. Each payment you make on the account will restore your credit limit by the amount of the payment. You may request an increase in your credit limit by written application or telephone which is approved by the credit union. The credit union has the right to reduce or terminate your credit limit at any time.

3. Annual Fee. There is no annual fee for the VISA Classic or VISA Platinum account.

4. Using the Card. You may use the card issued to you to make purchases in person, and by mail or telephone from merchants and others who accept VISA cards. In addition, you may obtain cash advances from the credit union, from other financial institutions participating in the VISA programs and from automated teller machines (ATMs), such as VISANET, that provide access to the VISA system. (Not all ATMs provide such access.) You will need to use your Personal Identification Number (PIN) to obtain a cash advance from an ATM. Once you receive your VISA card, this card must be signed by, the individual, whose name is printed on it. Your obligation to pay the amount owed on your account continues until paid in full even though an agreement, divorce decree or other court judgment to which the credit union is not a party may direct someone else to pay the account balance.

If more than one person signs the credit card application, each is individually responsible for all amounts owed on the account and all are jointly responsible for all amount owed. This means the credit union can enforce this Agreement against any of you individually or all of you together.

5. Transactions. This VISA card may not be used for any illegal transactions (gambling, etc.). The credit union may assume, without any further inquiry that all transactions made by you or someone authorized by you using the card or the card number are legal, even if the credit union has actual or imputed knowledge of information that might reasonably lead it to question whether a particular transaction is legal.

6. Finance Charges. The Interest Charge Calculation Method applicable to your account for Cash Advances and Credit Purchases of goods and services that you obtain through the use of your card is specified below:

Cash Advances -Average Daily Balance (including new transactions). Interest Charge on cash advances begins from the date you obtain the cash advance, or the first day of the billing cycle in which it is posted to your account, whichever is later. There is no grace period.

The Interest Charges for a billing cycle are computed by applying the Periodic Rate to the “average daily balance”. To get the average daily balance, we take the beginning balance of your account each day, add any new purchases or cash advances, and subtract any payments, credits, non·accruing fees, and unpaid interest charges. 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.

Purchases -Average Daily Balance (including new transactions). To avoid incurring additional Interest Charges on the balance of purchases reflected on your monthly statement and on any new purchases appearing on your next monthly statement, you must pay the entire “New Balance” in full shown on your monthly statement on or before the Payment Due Date.

The Interest Charges for a billing cycle are computed by applying the Periodic Rate to the “average daily balance”. To get the average daily balance, we take the beginning balance of your account each day, add any new purchases or cash advances, and subtract any payments, credits, non·accruing fees, and unpaid interest charges. 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.

The FINANCE CHARGE (interest) on purchases and cash advances for VISA Classic is calculated at the periodic rate of 1.104% per month which is an ANNUAL PERCENTAGE RATE of 13.25%.

The FINANCE CHARGE on the VISA Platinum account is calculated at a daily periodic rate on the average daily principal balances of purchases and cash advances in the account. This daily periodic rate may vary (increase or decrease) since it is based on the value of an “index rate”. The daily periodic rate is one three-hundred-and-sixty-fifth (1/365) of the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE applicable to the VISA Platinum account will be the margin of 4.5 percentage points. The index rate is the “prime rate” which is in the “Money Rates” column of the Wall Street Journal (“WSJ”) as published on the 1st business day of each calendar quarter (January, April, July, October.) We will round the “WSJ” prime rate to the nearest 1/4 of 1%. The “WSJ” prime rate is not represented or intended to be the lowest or most favorable rate of interest offered to any of our members. If more than one prime rate is published in the “WSJ” on the 1st day of the calendar quarter, we will use the higher rate as the “WSJ” prime rate. If the “WSJ” prime rate is not published on the 1st day of the calendar quarter, the “WSJ” prime rate will be the prime rate on the 1st day of publication after the 1st day of the calendar quarter. The current effective rate to compute the FINANCE CHARGE for the VISA Platinum account is disclosed on your new VISA account letter.

Any change in the ANNUAL PERCENTAGE RATE will take effect on the 1st day of the monthly billing cycle in the month following a change in the “WSJ” prime rate. For example, if on January 1st the “WSJ” prime rate is 9.5% and on April 1st the “WSJ” prime rate is 10.5% there will be a one (1) percentage point increase in the ANNUAL PERCENTAGE RATE. Such a change will be effective on the first day of the monthly billing cycle of the month in which the prime rate is adjusted. The ANNUAL PERCENTAGE RATE will never be greater than 18.00%.

8. Monthly Payment. Each month you must pay at least the minimum payment shown on your statement within 25 days of the statement closing date. An increase in the APR may cause an increase in your monthly payment amount. You may, of course, pay more frequently, pay more than the minimum payment, or pay the Total New Balance in full. If you make extra payments or larger payments, you are still required to make at least the minimum payment each month your account has a balance. The minimum payment will be (a) 2.5% of your Total New Balance or $30.00 whichever is greater, or (b) your Total New Balance if it is less than $30.00 plus (c) any portion of the Minimum Payment(s) shown on prior statement(s) which remains unpaid. In addition, at any time your Total New Balance exceeds your credit limit, you must immediately pay the excess upon demand. We will apply your payments first to previously billed and unpaid FINANCE CHARGE on purchases; then to previously billed and unpaid FINANCE CHARGE on cash advances, then to fees, then to previously billed purchases; then to cash advances; and then to new purchases, whether or not billed on the monthly statement. However, any payment equal to, or greater than, the Previous Balance of Purchases will be applied first to that balance and any FINANCE CHARGE thereon so as to avoid continuing of accrual of FINANCE CHARGE on the amount.

9. Security Interest. If you give the credit union a specific pledge of shares by signing a separate pledge of shares for this account, your account will be secured by your pledged shares.

10. Default. You will be in default if you fail to make any minimum payment or other required payment by the date that it is due. If you are in default of a credit union loan, 30 days or more, we have the right to suspend access to your line of credit until all loans become current. You will be in default if you break any promise you make under this Agreement. You will be in default if you die, file bankruptcy or become insolvent, that is, unable to pay your obligations when they become due. You will be in default if you make any false or misleading statements in any credit application or credit update. When you are in default, the credit union has the right to demand immediate payment of your full account balance without notice. If immediate payment is demanded, you will continue to pay FINANCE CHARGE, at the periodic rate charged before default, until what you owe has been paid, and any shares that were given as security will be applied towards what you owe.

To the extent permitted by law, you will also be required to pay the credit union’s collections expenses, including court costs and reasonable attorneys’ fees.

11. Liability for Unauthorized Use. You are not liable for the unauthorized use of your credit card unless the transaction is ATM or PIN-Based transactions not processed by VISA.

12. Lost Card Notification. If you believe your credit card has been lost or stolen, immediately inform the credit union by calling: 607-936-4667 or 1-800-833-3338. On weekends, holidays or after credit union hours, call: 1-800-682-6075.

13. Changing or Terminating Your Account. The credit union may change the terms of the Agreement from time to time after giving you any advance notice required by law. Your use of the card after receiving notice of a change will indicate your agreement to the change. To the extent the law permits, and indicated on the notice to you, the change will apply to future transactions.

Either the credit union or you may terminate this Agreement at any time, but termination by you or the credit union will not affect your obligation to pay the account balance plus any FINANCE AND OTHER CHARGES you owe under this Agreement. The cards you received remain property of the credit union and you must recover and surrender to the credit union all cards upon request or upon termination of this Agreement whether by you or the credit union.

14. Credit Information. You authorize the credit union to investigate your credit standing when opening or reviewing your account. You authorize the credit union to disclose information regarding your account to credit bureaus and creditors who inquire about your credit standing.

Information from credit bureaus may be obtained with respect to any renewal or future extension of credit. If you ask, you will be told whether or not consumer reports on you were requested and the names of the credit bureaus, with their addresses, that provided the reports.

15. Returns and Adjustments. Merchants and others who honor the card may give credit for returns or adjustments, and they will do so by sending the credit union a credit which will be posted to your account. If your credits and payments exceed what you owe the credit union, the amount will be applied against future purchases and cash advances. If the amount is $1.00 or more, it will be refunded upon your written or oral request or automatically after six months.

16. Foreign Transactions. Purchases and cash advances made in foreign countries and foreign currencies will be billed to you in U.S. dollars. The conversion rate to dollars will be at (i) the wholesale market rate or (ii) the government-mandated rate, whichever is applicable, in effect one day prior to the central processing date. If your account is subject to the Foreign Transaction Fee (finance charge), a fee may be added to your account for transactions made outside of the United States or in a foreign currency. Transactions made in a foreign currency using a VISA branded card or processed by a network operated or affiliated with VISA will be subject to a fee as set forth above. All foreign transaction fees are calculated based on the transaction amount after it is converted to U.S. dollars.

17. Merchant Disputes. The credit union is not responsible for the refusal of any merchant or financial institutions to honor the card. The credit union shall be subject to all claims (other than tort claims) and defenses arising out of the buyer’s purchase of goods and services to be paid in accordance with the credit agreement if (1) the buyer has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the sale from the seller; (2) the amount of the initial transaction exceeds fifty dollars; and (3) the place where the initial transaction occurred was in the same state as the mailing address previously provided by the buyer or was within one hundred miles from such address, except that the limitations set forth in subparagraphs (2) and (3) of this paragraph with respect to a buyer’s right to assert claims and defenses against the holder shall not be applicable to any transaction in which the seller (A) is the same person as the holder; (B) is controlled by the holder; (C) is under direct or indirect common control with the holder; (D) is a franchised dealer of the holder’s products of services; or (E) has obtained the order for such sale through a mail solicitation made by or participated in by the holder in which the buyer is solicited to enter into such transactions by using the credit agreement with the holder.

18. Effect of Agreement. This Agreement is the contract which applies to all transactions on your account even though the sales, cash advances, credit or other slips you sign or receive may contain different terms.

19. No Waiver. If any section of the agreement is deemed void, the unaffected section(s) and the agreement as a whole are still binding.

20. Statements and Notices. You will receive a statement each month (which may not be a calendar month) showing transactions on your account. Statements and notices will be mailed to you at the most recent address you have given the credit union. Notice sent to any one of you will be considered notice to all. You may at any time pay your total indebtedness.

21. Copy Received. You acknowledge that you have received a copy of this Agreement.

Keep this notice for future use.

This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act.

If you think there is an error on your statement, write to us at:

First Heritage FCU

202 Denison Pkwy E.

Corning, NY 14830

You may also contact us on the Web: www.fhfcu.org or info@fhfcu.org

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.