Important Information About Veridian's
VISA® Business Credit Cards

Here are the terms of the Visa ® Business credit card offered by Veridian Credit Union of Waterloo, IA.

Definitions (In this disclosure):

The words we, our, and us mean the Veridian Credit Union, Waterloo, IA. We are the issuer of this credit card. We are the ones giving you credit when you use the card.

The words you and your means each person or person, each business or organization, and each officer or owner we approve for participation in this credit card plan and to whom we issue a credit card.

A billing cycle or cycle is the period of time that we use to send you a statement of your account. These cycles are about a month, but vary from 28 to 33 days because of weekends and holidays.

A cash advance is a loan of money you may get through this credit card plan by, for example, obtaining cash at an ATM machine which accepts the card, getting a cash advance from us under this plan, or getting an advance on this plan from another financial institution.

A credit purchase is a purchase or lease of goods or services you make with a merchant who accepts this credit card as the method for payment. (We pay the merchant, and you owe us the money.) Most of the fees you may owe us for this card are treated as credit purchases as well. These will be shown on your statement.

The payment date is the date by which we must receive a payment from you (assuming you have a balance). The payment date for a cycle is 25 days after the last day of that cycle. This date will be shown on your statement.

Your new balance is an amount printed on your statement that is the total unpaid balance of credit purchases, cash advances, and charges as of the last day of that billing cycle.

Your new balance is an amount printed on your statement that is the total unpaid balance of credit purchases, cash advances, and charges as of the last day of that billing cycle.

You Accept This Agreement:

If we issue a credit card to you, you sign it, and you or your employee use it, this disclosure becomes our agreement with you. You agree, as to any dispute between you and us, that the law of the state of Iowa will be used to control this agreement. Federal law also regulates some areas of this agreement as well.

Business Purpose :

You agree that you have represented to us that you are obtaining this credit card for business purposes and that all purchases, cash advances, balance transfers, use of any convenience checks, and any other use of this card will only be for a business purpose. You agree that you will never use your account for any personal, household, or family purpose.

Liability for Charges:

You agree to pay us for the credit purchases and cash advances you make under this credit card plan, plus the finance and other charges listed. You also agree to pay us for any charges made by others if you allow someone else to use your card or you are approved for credit with another person.

Payments You Make:

When you make a payment, here is how it is applied:

  1. The payment will first be used to pay, in full, all finance charges you may owe us, that were still unpaid as of the close of the last billing cycle;
  2. The rest of your payment will be applied toward your unpaid principal in this order, purchase balance as of last statement, cash advance balance as of last statement, purchases this cycle, and finally, cash advances this cycle.

Security:

If you have given us a previous security interest that secures other loans with us, the collateral securing those other loans may also secure the credit you may obtain under this credit card plan. (This will not be true if the collateral is household goods as defined in the FTC Credit Practices Rule.) If the collateral is your principal residence or real property (land), then such collateral will only secure this plan if those agreements specifically mention this plan.

Future agreements may secure this plan as well.

Credit Limit:

We will tell you your credit limit under this plan when the card is sent to you (if we have not already done so). It is your duty to stay within your credit limit and to keep others to whom you give access to the plan to do so as well. We are not responsible to you if we allow you to exceed your limit. You must still pay your balance. If on some occasions we allow you credit of more than your limit, we may later refuse an advance or purchase that would cause you to go over your limit.

Finance Charges on Cash Advances:

We figure the finance charge on your cash advances by applying the periodic rate to the average daily balance of your cash advances. To get the average daily balance, we take the beginning cash advance balance each day (not including any unpaid finance charges), add any new advances made that day, and subtract any payments or credits received that day. 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. (This is referred to as Method F for cash advances.)

(Note: If we post a cash advance to your statement in the same cycle in which you make it, the cash advance will be added to your daily balance as of the day you got it. If we post a cash advance to your account in a later cycle than the one in which you made it, then the cash advance will be added to your daily balance on the first day of the cycle in which we first post it.)

Finance charges begin to accrue on cash advances on the day of the advance (unless the advance is posted in a later billing cycle, in which case finance charge begins to accrue on the first day of that billing cycle).

Full Payment: If you pay the entire new balance from your last cycle's statement on or before the payment date, then that payment will be treated as if it was made on the first day of the billing cycle. The effect is you will not pay finance charges during the cycle of full payment on your cash advance balance from the previous cycle.

Finance Charges on Credit Purchases:

We figure the finance charge on your credit purchases by applying the periodic rate to the average daily balance of credit purchases. To get the average daily balance, we take the beginning credit purchase balance each day (not including any unpaid finance charges), add any new credit purchases posted that day, and subtract any payments or credits received that day. 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. (This is referred to as Method G for credit purchases.)

Finance charges begin to accrue on the day a credit purchase is posted to your account, unless you take advantage of the grace period mentioned next.

Grace Period for Full Payment: If you pay the entire new balance from your last cycle's statement on or before the payment date, then, during the billing cycle of full payment, no finance charge will accrue on the credit purchase balance from the previous cycle nor on any new credit purchases in the current cycle. This is a 25-day grace period for your credit purchases. Remember, this only applies if you pay off the entire new balance (cash advances, credit purchases, and charges). A late fee of $15.00 will be assessed 15 days after the due date.

Change to Currency Conversion & International Transactions:

The fee we charge you for using your Visa®–branded debit/credit card (Card) in an international transaction has changed. Your continued use of the Card after the effective date listed below acknowledges acceptance of these amended terms. The currency conversion section in the agreement between you and us is amended to read as follows:

Currency Conversion and International Transactions. When you use your Visa ® branded debit/credit card at a merchant that settles in currency other than US dollars, the charge will be converted into the US dollar amount. The currency conversion rate used to determine the transaction amount in US dollars is either:

The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date or posting date.

Visa® Business Additional Terms

Periodic Rate:

The periodic rate of FINANCE CHARGE may vary per statement cycle (which is about a month). This rate applies to credit purchases and cash advances and corresponds to an ANNUAL PERCENTAGE RATE. Your Annual Percentage Rate (APR) may vary monthly.

The APR for this Visa® Business credit card is the Prime Rate + 4.00%

"You" and "Your" refers to any borrower, co-borrower and / or personal guarantor on this card.

"Prime Rate" shall mean the published reference rate quoted under "Money Rates" in the Wall Street Journal on the 1st day of each month or the first regular business day thereafter. These rates will be rounded up to the nearest 0.25%. The maximum rate will be eighteen percent (18.00%).

Our variable rate change will be the first day of the month using the published "Prime Rate" of the previous month. Your rate change will be effective on your next cycle date. This rate change will effect your outstanding balance, new cash advances, and new purchases.

Minimum Payment:

Your minimum payment each statement cycle is 2.50% of the total new balance shown on the last statement, or $20, whichever is greater. If your total new balance is less than $20, your minimum payment is the new balance.

If your new balance is more than your credit limit, the minimum payment will be 2.50% of your credit limit, plus the entire amount of your new balance that is over your credit limit.

If you are past due, your minimum payment will be increased by the amount you are past due.

Over Limit Fee:

None

Replacement Card Fee

If we have to replace a credit card (for example, if the card is lost or stolen) you will be charged a fee of $5.

Dishonored Check Fee:

If you make a payment on your account with a check that is not paid, the payment on your account will be reversed and you will have to pay a fee of $27.00. This fee applies only to your credit card account. It is in addition to any fee you may have to pay on your deposit account.

Ownership of the Credit Card:

The credit card remains our property. You agree to surrender all cards issued to you if we ask you to do so, and we may confiscate the card(s) if you do not comply.

Merchant Discretion:

The merchants and financial institutions who are part of the credit card system have the first right to decide whether to allow you to use the card to get money, goods, or services from them. That decision is within their discretion, and we are not responsible to you if they refuse to accept your card.

Changes to This Plan:

We reserve the right to change any and all of the terms of this agreement. For example, we can change the type and amount of the fees we charge, the interest rate, and the minimum payment amount, as well as the other features of this plan.

We will give you reasonable notice of any important changes in the plan; in some cases, the law requires that this notice be not less than 30 days before the effective date of the change.

Financial Statements:

You agree to provide us with periodic financial statements as we may reasonably require.

Default and Remedies:

Any shares, as defined in your membership agreement, may be used to secure payment of your obligations on this account. Additionally, any collateral other than real estate securing other loans at our credit union will also secure this account as well as any property purchased with your credit card(s).

If you fail to make a payment when due, or we reasonably believe that you cannot pay what you owe us (or could owe us under your credit limit), we can cancel your participation in this plan. If we do so, we can immediately demand payment in full of the entire unpaid balance of principal and finance charges. Here are some examples of what would give us this reasonable belief:

•  Your insolvency,

•  Your bankruptcy,

•  Your death,

•  A money judgement entered against you,

•  Your default on any other loan with us or another,

•  Someone brings collection efforts against you (such as garnishment or attachment), or

•  You fail to supply us with financial statements we request.

If we have to take collection efforts to collect what you owe us, you agree to pay our cost of collection, including our reasonable attorney's fees if we hire an attorney. You agree that 10% of the amount you owe us is the minimum fee for an attorney that would be reasonable, but that a greater amount may be justified as well. Reasonable attorney's fees include the fees that might be incurred in appellate and bankruptcy proceedings as well.

If Your Credit Card Is Lost or Stolen:

If your card is lost, stolen, or you suspect there has been unauthorized use of your card, report it to us immediately. You may do so by calling us directly at Credit Card Security 1-(800) 682-6075 or by writing to:

Veridian Credit Union
Credit Card Department
P. O. Box 6000
Waterloo, Iowa 50704

Additional Limit on Liability for VISA ® Platinum Cards. Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen VISA ® Platinum Cards. This additional limit on liability does not apply to ATM transactions, to transactions using your Personal Identification Number which are not processed by VISA ®, or to commercial cards. VISA ® Card cannot be used for illegal transactions.