Late Payment

For MasterCard, $25 after 30 days

How We Will Calculate Your Balance:

We use a method called “average daily balance (including new purchases).” See Your Account Agreement for details.

Billing Rights:

Information on your rights to dispute transactions and how to exercise those rights is provided in Your Account Agreement.

In this Agreement, the references to “We”, “Us”, “Our” and “Credit Union” mean ALLENTOWN FEDERAL CREDIT UNION. The words “You” and “Your” mean each person accepting this Agreement. The words “Credit Card” or “Card” mean any MASTERCARD CLASSIC or MASTERCARD GOLD Credit Card issued to You by Us and any duplicates and renewals. Convenience Checks mean the special Account access devices that We may provide for Your use from time to time. If this is a joint account, read singular pronouns in the plural. You, as the Borrower, under a Credit Line Account (“Account”), understand that the following Federal Disclosure Statement and the terms and conditions found herein constitute Our Agreement with You. Your Account may be accessible through a variety of means which could include advance request forms, vouchers, checks, charge slips, Convenience Checks, Credit Cards and the like. Regardless of the access means, You promise to pay Us all amounts charged to Your Account by You or by any user who has access to Your Account, with actual, apparent or implied authority for use of Your Account, including Finance Charges and other fees or charges described herein.

FEATURE CATEGORIES

Your Account has Feature Categories which may include Signature Line of Credit, MASTERCARD CLASSIC and MASTERCARD GOLD.

TRANSACTIONS/ADVANCES

Whenever You request a transaction or an advance, We may require You to prove Your identity. If You request an advance by telephone, We will deposit the amount approved in Your Share Account or Your Share Draft Account and You authorize Us to do this, or We may draw a draft or check made payable to You and mail it to You. When the amount advanced appears on a subsequent statement, that will be conclusive evidence of Your telephone request. You understand that all advances are subject to our prior approval.

LINE OF CREDIT LIMITS

We will notify You of the Credit Limits given You for each Feature Category of Your Account. We expect that You will make repeated advances on Your Account and unless You are in default, Your Credit Limit will generally be self replenishing as You make payments on Your Account. You will keep Your unpaid balance within any Credit Limit set by Us, and You will pay any amount over Your Credit Limit on Our demand whether or not We authorize the advances or transactions which caused You to exceed Your Credit Limit. Even if Your unpaid balance is less than Your Credit Limit, We reserve the right to refuse credit advances during anytime that any aspect of Your Account is in default.

JOINT ACCOUNTS.

Each Borrower will be responsible, jointly and severally, for the repayment of amounts owed. If any Account access device, such as a Personal Identification Number (PIN) is requested and approved, You understand that any such Account access device(s) will be mailed only to the Borrower(s) at the address that we have on file for You. We may refuse to follow any instructions which run counter to this provision.

FINANCE CHARGES (except for MASTERCARD)

A Finance Charge will be assessed on any unpaid principal balance(s) for each Feature Category of Your Account for the period such balance(s) is outstanding. Balance(s) change each time advances are made, payments are made, or credits given under any Feature Category. The Finance Charge begins to accrue on the date of each advance and there is no grace period.

HOW TO DETERMINE THE FINANCE CHARGE (except for MASTERCARD)

For all Feature Categories (except MASTERCARD) the Finance Charge is determined by multiplying Your unpaid balance at the close of each day in the billing cycle being accounted for by the applicable Daily Periodic Rate, after payments, credits and unpaid Finance or Late Charges have been subtracted and new advances, insurance premiums or other charges have been added to Your unpaid balance. These daily Finance Charges are then added together and the sum is the amount of Finance Charge owed for the Feature Category being accounted for. The total Finance Charge You owe on Your Account for each billing cycle is the sum of all the Finance Charges due for all applicable Feature Categories.

MASTERCARD FINANCE CHARGES

A Finance Charge will be imposed on credit purchases of goods and services that You obtain through the use of Your Card only if You elect not to pay the entire New Balance shown on Your previous monthly statement. If You elect not to pay such balance within 25 days from the closing date of the statement, a Finance Charge will be imposed on the unpaid balance of credit purchases made during the current billing cycle from the date of posting each such credit purchase to Your Account and will continue to accrue until the closing date of the billing cycle preceding the date on which the entire New Balance is paid in full. Cash advances are always subject to a Finance Charge from the date they are posted to Your Account and are not subject to the 25 day grace period described above. Balances subject to the periodic Finance Charges are the average daily transactions balances outstanding during the month (new and previous). To get the average daily balance, We take the beginning balance each day, add any new purchases, cash advances, insurance premiums and debit adjustments and subtract any payments, credits, unpaid Finance Charges and unpaid Late Charges. This gives Us the daily balance. Then, We add up all the daily balances for the billing cycle and divide them by the number of days in the billing cycle which We multiply by the Daily Periodic Rate times the number of days in the billing cycle. For the current Daily Periodic Rate and corresponding Annual Percentage Rate for all Feature Categories refer to the separate page titled “Additional Disclosure – Federal Truth-In-Lending Act” which We have included with and made a part of this Disclosure.

MINIMUM MONTHLY PAYMENTS (PAYMENT SCHEDULE EXCEPT FOR MASTERCARD)

Though You need only pay the Minimum Monthly Payment, You understand that You have the right to repay Your Account at any time without penalty. You may make larger payments without penalty at any time. You will be charged periodic Finance Charges to the date You repay Your entire balance. Any partial payment or prepayment will not delay Your next scheduled payment. All payments to Us must be in lawful money of the United States. We may apply each payment to whichever Feature Category We wish. Payments will be applied first to any Late Charges owing, then to the Finance Charge due, then to the outstanding principal balance. Any unpaid portion of the Finance or Late Charge will be paid by subsequent payments and will not be added to the principal. You understand that any payment that delays the repayment of Your unpaid balance will increase Your Finance Charge and any payment that accelerates the reduction of Your unpaid balance will decrease Your Finance Charge. Payments are due as disclosed to You at the time of each advance. If an advance is made on a Feature Category having a zero balance or if an advance results in an increase in the Minimum Periodic Payment, payments will not be due until the second regular due date following the date of such advance. Minimum Periodic Payments for all Feature Categories (except MASTERCARD) will be based on the amount necessary to fully repay Your entire loan, from the date of Your most recent advance, no later than the end of the Maximum Repayment Term shown in the following table. Your payment will not reduce as Your balance declines.

Feature Category

Signature Line of Credit

Maximum Repayment Term

36 months

LATE CHARGE (EXCEPT FOR MASTERCARD)

If Your payment is 15 or more days late, You will be charged the greater of 15.00% of the principal and interest due or $25.

PERIODIC STATEMENTS

On a regular basis, You will receive a printed statement showing all transactions on Your Account including amounts paid and borrowed since Your last statement. If We have issued You a MASTERCARD, We will mail You a statement each month in which there is a debit or credit balance or when a Finance Charge is imposed. We need not send You a statement if We feel Your Account is uncollectible or if We have started collection proceedings against You because You defaulted. Each statement is deemed to be a correct statement of account unless You establish a billing error pursuant to the Federal Truth-In-Lending Act.

SECURITY

As permitted by law, to secure all transactions under this Agreement in either joint or individual Accounts, We have the right to impress and enforce a statutory lien against Your shares on deposit with Us (other than those deposits established under a governmental approved tax deferral plan such as an IRA or Keogh account), and any dividends due or to become due to You from Us to the extent that You owe on any unpaid balance on Your Account(s) and We may enforce Our right to do so without further notice to You. Additionally, You agree that We may set-off any mutual indebtedness.

CONSENSUAL LIEN

If You have been issued a Credit Card, You grant and consent to a lien on Your shares with Us (except for IRA or Keogh accounts) and any dividends due or to become due to You from Us to the extent You owe on any unpaid Credit Card balance.

OTHER SECURITY

Collateral securing other loans with Us (except for loans secured by household goods or any dwelling) will also secure advances received under this Agreement.

DEFAULT

You will be in default if: (a) You do not make any payment or perform any obligation under this Agreement, or any other agreement that You may have with Us; or (b) You should die, become involved in any insolvency, bankruptcy, receivership or custodial proceeding brought by or against You; or (c) You have made a false or misleading statement in Your credit application and/or in Your representations to Us while You owe money on Your Account; or (d) A judgment or tax lien should be filed against You or any attachment or garnishment should be issued against any of Your property or rights, specifically including anyone starting an action or proceeding to seize any of Your funds on deposit with Us; and/or (e) We should, in good faith, believe Your ability to repay Your indebtedness hereunder is or soon will be impaired, time being of the very essence. If You are in default, We may, to the extent permitted by law, cancel Your rights under this Agreement, declare the entire unpaid balance of every Feature Category of Your Account immediately due and payable and require the return of all access devices.

COLLECTION COSTS

To the extent permitted by law, You will reimburse Us for all of Our costs and expenses, including reasonable attorneys’ fees incurred in the course of collecting any amounts owed under this Agreement or for the recovery of any collateral. ENFORCEMENT. We do not lose Our rights under this or any related agreement if We delay enforcing them. We can accept late payments, partial payments or any other payments, even if they are marked “paid in full” without losing any of Our rights under this Agreement. If any provision of this or any related agreement is determined to be unenforceable or invalid, all other provisions remain in full force and effect.

NOTIFICATION OF ADDRESS CHANGE

You will notify Us promptly if You move or otherwise have a change of address.

CHANGE IN TERMS

We may change the terms of this Agreement by mailing or delivering to You written notice of the changes as prescribed by the Federal Truth-In-Lending Act. To the extent permitted by law, the right to change the terms of this Agreement includes, but is not limited to, the right to change the periodic rate applicable to Your unpaid balance and/or future advances.

CONSENT TO AGREEMENT

You acknowledge receipt of a copy of this Agreement. By signing the application, by using Your PIN or other Account access device, by using Your Account or by authorizing another to use Your Account, You agree to and accept its terms.

UPDATING AND DISCLOSING FINANCIAL INFORMATION

You will provide facts to update information contained in Your original Account application or other financial information related to You, at Our request. You also agree that We may, from time to time, as we deem necessary, make inquiries pertaining to Your employment, credit standing and financial responsibility in accordance with applicable laws and regulations. You further agree that We may give information about the status and payment history of YourAccount to consumer credit reporting agencies, a prospective employer or insurer, or a state or federal licensing agency having any apparent legitimate business need for such information.

CREDIT INSURANCE

Credit insurance is not required for any extension of credit under this Agreement. However, You may purchase any credit insurance available through Us and have the premiums added to Your outstanding balance. If You elect to do so, You will be given the necessary disclosures and documents separately.

INTEGRATED DOCUMENTS

Any separate sheet of paper labeled “Additional Disclosure – Federal Truth-in-Lending Act” which is delivered together with this Agreement or provided at a later time is an integrated part of this Agreement.

TERMINATION

Either You or We may cancel Your Account or any particular Feature Category of Your Account, at any time, whether or not You are in default. You will, in any case, remain liable to pay any unpaid balances according to the terms of Your Account.GOVERNING LAW. This Agreement is controlled and governed by the laws of the Commonwealth of Pennsylvania except to the extent that such laws are inconsistent with controlling federal law.

SPECIFIC TERMS APPLICABLE TO YOUR MASTERCARD CREDIT CARD OWNERSHIP

All Cards remain Our property and may be cancelled by Us at any time without notice. You agree to surrender the Cards and to discontinue their use immediately upon Our request.USE OF YOUR CARD. You may make purchases by presenting the Card to a participating plan merchant or by authorizing a sales draft. You may obtain cash advances by presenting the Card to Us; another financial institution; by authorizing a cash advance draft; or by using Your PIN in conjunction with the Card in an ATM or other type of electronic terminal that provides access to the MASTERCARD system. You agree not to use Your Card for illegal transactions including, but not limited to, advances made for the purpose of gambling and/or wagering where such practices are in violation of applicable state and/or federal law.

MINIMUM MONTHLY PAYMENT

Your Minimum Monthly Payment will be 3.00% of Your total balance at the end of each month plus other applicable charges, any past due Minimum Monthly Payments and any amount that exceeds Your Credit Limit, subject to the lesser of $20 or Your Account balance.

ISSUANCE OF PERSONAL IDENTIFICATION NUMBER

You may be issued a Personal Identification Number (PIN) for use with participating ATMs. This PIN is confidential and should not be disclosed to anyone. You may use Your PIN to access Your Account and all sums advanced will be added to Your Account balance. In the event a use of Your PIN constitutes an Electronic Fund Transfer, the terms and conditions of Your Electronic Fund Transfer Agreement may also affect Your rights. Your use of the PIN is Your authorization to Us to charge Your MASTERCARD Feature Category to cover such transactions.

REFUSAL TO HONOR THE MASTERCARD CREDIT CARD

We are not liable for the refusal or inability of merchants, financial institutions and others to accept the Card(s), or electronic terminals to honor the Card(s) or complete a Card withdrawal, or for their retention of the Card(s).

UNAUTHORIZED USE

You may be liable for the unauthorized use of Your Card. You will not be liable for the unauthorized use that occurs after You notify Us in writing at the address or telephone number shown in this Agreement, of the loss, theft, or possible unauthorized use. In any case, Your liability will not exceed $50.TRANSACTION SLIPS. Your monthly statement will identify that merchant, electronic terminal or financial institution at which transactions were made, but sales, cash advances, credit or other slips cannot be returned with the statement.

FOREIGN TRANSACTIONS

For transactions initiated in foreign currencies, the exchange rate between the transaction currency and the billing currency (U.S. dollars) will be: (a) a rate selected by MasterCard from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate Mastercard® itself receives; or(b) the government-mandated rate in effect for the applicable central processing date. In each instance, You will be charged8/10ths of 1.00% calculated on the final settlement amount for transactions that are initiated in foreign countries, and if your transaction is also initiated in a foreign currency, You will be charged an additional 2/10ths of 1.00% calculated on the final converted settlement amount.

EFFECT OF AGREEMENT

Even though the sales, cash advance, credit or other slips You may sign or receive when usingYour Card contain terms, this Agreement is the contract which solely applies to all transactions involving the Card.

CREDITS

If a merchant who honors Your Card gives You credit for returns or adjustments, they will do so by issuing a slip which will be posted to Your Account. If Your credits and payments exceed what You owe Us, We will hold and apply this credit against future purchases and cash advances, or if it is $1.00 or more, refund it on Your written request or automatically deposit it to Your Share Account.

LATE CHARGES

If Your payment is more than 30 days late, You will be charged $25.

LOST OR STOLEN CARDS OR CONVENIENCE CHECKS.

To report lost or stolen Cards or Convenience Checks, You must immediately call (800) 237-6211.

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 STATEMENT

If You think Your Statement is wrong, or if You need more information about a transaction on Your Statement, write Us on a separate sheet, to the address shown on Your Monthly BillingStatement. Write to Us as soon as possible. We must hear fromYou no later than 60 days after We sent You the first statement 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:-Your Name and Account number.-Dollar amount of the suspected error.-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 share or share 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 statement 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 billYou 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 statement that are not in question. If We find that We made a mistake on Your statement, 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 Us, We may report You as delinquent. However, if Our explanation does not satisfy You and You write to Us within 10 days telling Us that You still refuse to pay, We must tell anyone We reported You to that You have a question about Your statement, and We must tell You the name of anyone We reported You to. We must tell anyone We reported 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 of the questioned amount, even if Your statement was correct.

SPECIAL RULE FOR MASTERCARD CREDIT CARD PURCHASES

If You have a problem with the quality of property or services that You purchased with a MASTERCARD 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:

1. 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
2. The purchase price must have been more than $50. These limitations do not apply if We own or operate the merchant, or if We mailed You the advertisement for the property or services.