A World Class Card ….. From Right Here at Home

When it comes to choosing a credit card, we know what you want. Worldwide charge privileges

from someone right here at home—someone who knows you and wants your business. You’re

looking for a credit card that features:

MasterCard & Visa CREDIT CARDS

Low 9.9% Annual Percentage Rate

Low 1% Balance Transfer Fee

Friendly, Local Service

No Annual Fees

25-Day Interest Free Grace Period on Purchases

24-Hour Cash Advances at Thousands of ATM’s

Worldwide Acceptance

Reasonable Fees if You Have a Payment Problem

It’s time to stop looking around for the perfect credit card because you’ve just found it at ATFCU.

Complete and return the attached application today. You can send it by mail, by fax or you may

prefer to drop it by one of our branches. If you have questions, call us at 325-677-2274 or 800-

677-6770 and ask for the Plastic Cards Department.

Application Instructions: 1. Fill out the following application completely. Please refer to the appropriate pages for terms,

rates and fee disclosures.

2. If applying for joint credit, both applicants must initial in the box next to CO-APPLICANT.

3. Print all pages of the application form.

4. Sign and date the form at the bottom. If applying for joint credit, the Co-Applicant must also

sign.

5. Fax all pages to 325-676-0515 or mail to:

Abilene Teachers Federal Credit Union ATTN: Loan Department P.O. Box 5706 Abilene, TX 79608

Fees

Annual Fee None

Transaction Fee

Foreign Transaction

Balance Transfer

Up to 1% of each transaction in U.S. dollars. 1% of the amount of each transfer or $5, whichever is greater (maximum fee: $100).

Penalty Fees

Late Payment

Returned Payment

Up to $17 Up to $17

Interest Rates and Interest Charges

Annual Percentage Rate (APR) for Purchases, Balance Transfers, and Cash Advances

MasterCard and VISA, Gold MasterCard and VISA Gold, Share Secured MasterCard

9.9% Paying Interest Your due date is at least 25 days after the close of each billing cycle.

We will not charge you interest on purchases if you pay your entire balance by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date.

For Credit Card Tips from the Federal Reserve Board

To learn more about factors to consider when applying for or using a credit card, visit the website of the Federal Reserve Board at http://www.federalreserve.gov/creditcard.

Fees

Annual Fee None

Transaction Fee

Foreign Transaction

Balance Transfer

Up to 1% of each transaction in U.S. dollars. 1% of the amount of each transfer or $5, whichever is greater (maximum fee: $100).

Penalty Fees

Late Payment

Returned Payment

Up to $17 Up to $17

How We Will Calculate Your Balance: We use a method called “average daily balance (including new purchases).” See the MasterCard/ VISA Agreement for more details.

Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided in the MasterCard/ VISA Agreement.

Date: _____________ APPROVED DISAPPROVED Counteroffer ____________ # of cards _____

CREDIT LIMIT M/C $_____________ GOLD MC $___________ Ln. Rev. Comm._________________

VISA $____________ VISA Gold $ ___________ _______________________________

SHARE SEC. SPEC. FLAG 7=S _____________________ ________________________________

REASONS FOR DENIAL

________________________ ________________________ ________________________

CREDIT UNION USE ONLY

TERMS USED IN THIS AGREEMENT: “You” and “your” mean any person who signs the Agreement or uses the card. “We,” “our,” “us,” and the “Credit Union” mean Abilene Teachers Federal Credit Union and anyone to whom the Credit Union may transfer its rights under this Agreement. The “card” means any credit card issued by Abilene Teachers Federal Credit Union to you or those designated by you under the terms of this Agreement. “Use of the card” means any procedure used by you, or someone authorized by you, to make a purchase or obtain a cash advance whether or not the purchase or advance is evidenced by a signed written document. “Unauthorized use of the card” means the use of the card by someone other than you who does not have actual, implied, or apparent authority for such use, and from which you receive no benefit. EXTENSIONS OF CREDIT: If your application is approved, the Credit Union may, at its discretion, establish a MasterCard® and/or VISA® Card account in your name at your request and cause one or more cards to be issued to you or those designated by you subject to the provisions of this Agreement. In such event, you authorize the Credit Union or its designee to pay for your account, all items reflecting credit purchases, balance transfers, and cash advances obtained through the use of the card. JOINT APPLICANT LIABILITY: If this Agreement is executed by more than one person, you further agree that the terms “you” and “your” as used in this Agreement shall refer to you collectively; that each of you shall be jointly and individually liable to us for all charges made to the account, including applicable fees; that each of you designates the other as agent for the purpose of purchases and cash advances under this Agreement; that each use of your account shall be an extension of credit to all; and that notice mailed to one of you shall be deemed notice to all.

OTHERS USING YOUR ACCOUNT: If you allow anyone else to use your account, you will be liable for all credit extended to such persons. You promise to pay for all purchases and advances made by anyone you authorize to use your account, whether or not you notify us that he or she will be using it. If someone else is authorized to use your account and you want to end that person’s privilege, you must notify us in writing, and if he or she has a card, you must return that card with your written notice for it to be effective.

CONVENIENCE CHECKS: The Credit Union may, at its discretion, issue checks to you that may be used for any purpose other than making a payment for credit to your account. By signing such check, you authorize the Credit Union to pay the item for the amount indicated and post such amount as a cash advance to your account. The Credit Union does not have to pay any item which would cause the outstanding balance in your account to exceed your credit limit. Fees that apply in connection with the use of Convenience Checks are as follows: Copy of Check: $4, Insufficient Credit Limit: $29. Fees will be assessed at the time they are incurred.

BALANCE TRANSFERS: Subject to your available credit, you may request to transfer the balances of non-Credit Union loan accounts to your account. If you request a balance transfer to be made, you should not rely on a balance transfer to be made by any particular date. Although most balance transfers will be completed promptly, it may take up to four weeks before a balance transfer from your other account is made. Accordingly, you should continue to make all required payments on your other accounts until you have confirmed that the balance transfer has been made. Balance transfers may not exceed your available credit limit. Balance transfers will be processed from the lowest to the highest dollar amount. If a balance transfer is more than your available credit limit, we will automatically lower the balance transfer amount to your available credit and complete the transfer. We will not close your other accounts, even if you transfer the entire balance. If you want to close your other accounts, you should contact the lender directly. Transfer of a balance that contains disputed purchases or other charges may cause you to lose any dispute rights you may have with regard to those purchases or other charges. A 1% balance transfer fee (minimum fee is $5; maximum fee is $100) of the amount transferred will be charged for each balance transfer transaction.

CREDIT LIMITS: You promise that payments made for your account resulting from the use of the card will, at no time, cause the outstanding balance in your account to exceed your credit limit as disclosed to you at the time you receive your card or as adjusted from time to time at the discretion of the Credit Union. If you exceed your credit limit, the Credit Union can still charge you for all purchases and cash advances without giving up any of its rights under this Agreement.

PROMISE TO PAY: You promise to pay the Credit Union or its designee in U.S. dollars for (a) all payments made for your account resulting from use of the card, (b) an INTEREST CHARGE on the unpaid balance and other charges and fees, and (c) collection costs and attorney’s fees as permitted by this Agreement. At the end of each monthly billing cycle, you will be furnished with a periodic statement showing among other things (1) the “previous balance” (outstanding balance in the account at the beginning of the billing cycle), (2) the amount of all cash advances, purchases, balance transfers, Late Payment Fees, Returned Payment Fees, other applicable fees and charges, and INTEREST CHARGES posted to your account during the billing cycle, (3) the amount of all payments and credits posted to your account during the billing cycle, and (4) the “new balance” which is the sum of (1) and (2) less (3). You agree to pay on or before the “payment due date” shown on the periodic statement either (a) the entire “new balance”, or (b) a minimum payment equal to 3.0% of the “new balance”, or $18, whichever is greater, plus any amount in excess of the credit limit established by the Credit Union, plus any past due minimum payments. If the “new balance” is $18 or less, you will pay it in full. You may make extra payment or payments in advance of the due date without penalty and you may repay any funds advanced, credit extended, or amount outstanding prior to maturity without penalty. Regardless of the amount of any extra payment made during a given month, a monthly payment will be required the following month if a balance remains in your account.

COST OF CREDIT: You will pay an INTEREST CHARGE for all advances made against your account at the periodic rate of .027123% per day, which has a corresponding ANNUAL PERCENTAGE RATE of 9.9%. Cash advances (including balance transfers) incur an INTEREST CHARGE from the date they are posted to the account. If you have paid your account in full by the due date shown on the previous monthly statement, or there is no previous balance, you have not less than 25 days to repay your account balance before an INTEREST CHARGE on new purchases will be imposed. Otherwise, there is no grace period and new purchases will incur an INTEREST CHARGE from the date they are posted to the account. The periodic INTEREST CHARGE is figured by applying the periodic rate to the “balance subject to INTEREST CHARGE”, which is the “average daily balance” of your account, including current transactions. The “average daily balance” is arrived at by taking the beginning balance of your account each day and adding any new cash advances and balance transfers and, unless you pay your account in full by the due date shown on your previous monthly statement or there is no previous balance, adding in new purchases, and subtracting any payments or credits and unpaid INTEREST CHARGES. This gives us the daily balance. The daily balances for the billing cycle are then added together and divided by the number of days in the billing cycle. The result is the “average daily balance.” The INTEREST CHARGE is determined by multiplying the “average daily balance” by the number of days in the billing cycle and applying the periodic rate to the product. No additional INTEREST CHARGES will be imposed on new purchases shown on your statement if the new balance shown on the statement is paid in full by the payment due date. The payment due date will be not less than 25 days from the billing cycle closing date shown on your statement.

OTHER CHARGES: If you do not pay your minimum payment within 15 days following your payment due date, you may be charged a Late Payment Fee of $17 or an amount equal to the minimum required payment for the applicable statement period, whichever is less. If you make a payment with a check or any other form of payment that is returned unpaid for any reason, we will charge a Returned Payment Fee of $17 or an amount equal to the minimum required payment for

ATFCU MasterCard®/ Visa® Agreement

the applicable statement period, whichever is less. We will charge this fee the first time any payment is returned unpaid, even if it is paid upon resubmission. If you obtain a cash advance by using an automated teller machine, you may be charged any amounts imposed upon the Credit Union by the owner or operator of the machine. Any charge made under this paragraph will be added to the balance of your account and treated as a purchase. LATE PAYMENTS: Any payment that is made after its due date will delay the reduction of your balance which will, in turn, increase your total interest cost. The Credit Union may accept late payments, partial payments, checks or money orders marked “payment in full”, or may delay enforcing any of its rights without forfeiting them and such action on the Credit Union’s part shall not constitute a waiver.

SECURITY: YOU SPECIFICALLY GRANT US A CONSENSUAL SECURITY INTEREST IN ALL INDIVIDUAL AND JOINT ACCOUNTS YOU HAVE WITH US NOW AND IN THE FUTURE TO SECURE REPAYMENT OF CREDIT EXTENSIONS MADE UNDER THIS AGREEMENT. THE GRANTING OF THIS SECURITY INTEREST IS A CONDITION FOR THE ISSUANCE OF ANY CARD WHICH YOU MAY USE, DIRECTLY OR INDIRECTLY, TO OBTAIN EXTENSIONS OF CREDIT UNDER THIS AGREEMENT. Shares and deposits in an Individual Retirement Account or any other account that would lose special tax treatment under state or federal law if given as security are not subject to the security interest you are giving.

Additional Security: If you have other loans with us, now or in the

future, collateral securing those loans may also secure your

obligations under this Agreement. Please read any security

agreement you sign in order to determine if the collateral also

secures your obligations under this Agreement and other

agreements you have with us.

CREDIT INSURANCE: If available, credit insurance is not required for any extension of credit under this Agreement. However, you may purchase any credit insurance available through the Credit Union and have the premium added to the outstanding balance in your account. If you elect to do so, you will be given the necessary disclosures and documents separately.

LIABILITY FOR UNAUTHORIZED USE: You may be liable for the unauthorized use of your card. If you notice the loss or theft of your card or a possible unauthorized use of your card, you should call our designee immediately at:

(800) 442-4757 You may also write to our designee at:

Abilene Teachers Federal Credit Union c/o Credit Card Center

P.O. Box 815909 Dallas, TX 75381-5909

Although you may write to notify us of unauthorized use, calling us immediately at the telephone number above is the best way to keep your possible losses down.

Under MasterCard’s zero liability policy, you will not be liable for any unauthorized use of your MasterCard once you notify us orally or in writing of the loss, theft, or possible unauthorized use and you meet the following conditions: (1) you have exercised reasonable care with your card; (2) you have not reported two or more incidents of unauthorized use of your card within the previous 12 months; and (3) you have maintained your account in good standing. MasterCard’s zero liability policy does not apply to cash advances obtained at an ATM.

Under VISA’s zero liability policy, you will not be liable for unauthorized use of your VISA Card once you notify us orally or in writing of the loss, theft, or possible unauthorized use. VISA’s zero liability policy does not apply if you are grossly negligent or fraudulent in the handling of your account or your Card, nor does it apply in the case of cash advances obtained at an ATM.

You will not be liable for any unauthorized use that occurs after you notify us. You may, however, be liable for unauthorized use that occurs before your notice to us. In any case, your liability for unauthorized use of a MasterCard or a Visa card will not exceed $50.00.

ILLEGAL USE OF THE ACCOUNT OR SERVICES: You may not use your card for any illegal transaction. You agree that we may decline to process any transaction which we believe in good faith to be for an illegal purpose. You agree that we will not be liable for declining to process any such transaction. If we do process any transaction which ultimately is determined to have been for an illegal purpose, you agree that you will remain liable to us under this Agreement for any such transaction notwithstanding its illegal nature. You agree that any illegal use of the card will be deemed an act of default under this Agreement. You further agree to waive any right to take legal action against us for your illegal use of the card and to indemnify, defend, and hold us, MasterCard International, Inc., and VISA International, Inc. harmless from and against any lawsuits, other legal action, or liability that results directly or indirectly from such illegal use.

CREDITING OF PAYMENTS: We do not charge for payments made by regular mail service or any other standard payment methods we accept. If we charge a fee for any expedited payment service we offer, that fee will be disclosed at the time you request the service. All payments made on your account at the address designated for payment on the monthly periodic statement or by any other approved payment methods will generally be credited to your account on the date of receipt. If the date of receipt for a mailed payment is not a business day, the payment may not be credited until the first business day following receipt. Payments received in person by one of our branch employees before the close of business will receive same-day credit. All minimum payments on your account will be applied first to collection costs, then to any late charges, other charges, and other fees due, then to any INTEREST CHARGE due as reflected on the most recent periodic statement, and the remainder to the unpaid principal balance. Payments received in excess of the minimum required payment will be applied first to the balance with the highest interest rate, if applicable. Interest paid or agreed to be paid shall not exceed the maximum amount permissible under applicable law, and in any contingency whatsoever, if we shall receive anything of value deemed interest under applicable law that would exceed the maximum amount of interest permissible under applicable law, the excessive interest shall be applied to the reduction of the unpaid principal amount or refunded to you.

DEFAULT: You will be in default: (1) if you fail to make any payment on time; (2) if you fail to keep any promises you have made or to meet any conditions under this or any other agreement with the Credit Union; (3) if you become insolvent or are subject to an order for relief under Title 11 of the U.S. Code (Bankruptcy); (4) if anyone tries, by legal process, to take any of your money in the Credit Union; (5) if you have given the Credit Union false or inaccurate information in obtaining your card; (6) if your card is terminated or canceled, or surrender of the card is demanded by the Credit Union, or (7) if anything happens which the Credit Union reasonably believes endangers your ability to repay what you owe. ACCELERATION: If you are in default, the Credit Union may call any amounts you still owe immediately due and payable without any further notice or demand to you and you expressly waive notice of the Credit Union’s intention to accelerate, notice of acceleration and demand. You must pay to the Credit Union at that time the total unpaid principal balance, plus INTEREST CHARGES, which shall continue to accrue until the entire amount is paid, late fees, and also any other fees or costs which may be assessed against the account. The card remains the property of the Credit Union at all times, and you agree to immediately surrender the card upon the demand of the Credit Union. You agree to pay all reasonable costs of collection, including court costs and attorney’s fees incurred, and any cost incurred in the recovery of the card. You expressly waive presentment for payment, demand, protest, and notice of protest. YOUR RESPONSIBILITY: You promise to notify the Credit Union of any change in your name, address or employment. You promise not to make a purchase or obtain a cash advance if you know there is a reasonable probability that you will be unable to repay your obligation according to the terms of this Agreement. You promise to inform the Credit Union of any new information which relates to your ability to

repay your obligation. You promise not to submit false or inaccurate information or willfully conceal information regarding your creditworthiness, credit standing or credit capacity. You promise not to make purchases or obtain cash advances that would cause your balance to exceed your credit limit. TERMINATION OR CHANGES: The Credit Union can terminate this Agreement at any time subject to such notice as may be required by applicable law. You may terminate this Agreement, by written notice, as to future advances at any time. Termination by either party shall not affect your obligation to repay any payments made for your account resulting from the use of the card as well as INTEREST CHARGES and other related charges. The Credit Union has the right to amend or supplement the terms of this Agreement, including the periodic rate, at any time subject to such notice as may be required by applicable law. If you use your card to make a purchase or obtain a cash advance or balance transfer, after having been given notice of a change in terms, you agree that, to the extent permitted by law, the existing balance in your account at the time of that use will be subject to the new terms, as shall subsequent uses. INTERNATIONAL TRANSACTIONS: If you effect an international transaction with your MasterCard, MasterCard International will convert the charge into a U.S. dollar amount. MasterCard International will use its currency conversion procedure, which is disclosed to institutions that issue MasterCard cards. Currently, the currency conversion rate used by MasterCard International to determine the transaction amount in U.S. dollars for such transactions is generally either a government-mandated exchange rate or a wholesale exchange rate selected by MasterCard International for the applicable currency on the day the transaction is processed, which rate may differ from the applicable rate on the date the transaction occurred or when the transaction is posted to your account. We will charge a Foreign Transaction Fee of up to 1% of the transaction amount in U.S. dollars on all international purchase, cash disbursement, and account credit transactions, even if there is no currency conversion. There is no grace period within which to repay international transactions in order to avoid the Foreign Transaction Fee.

If you effect an international transaction with your VISA Card, the rate of exchange between the transaction currency and the billing currency used for processing the international transaction will be 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 the government-mandated rate in effect for the applicable central processing date. We will charge a Foreign Transaction Fee of up to 1% of the transaction amount in U.S. dollars on all international purchase, cash disbursement, and Account credit transactions, even if there is no currency conversion. There is no grace period within which to repay international transactions in order to avoid the Foreign Transaction Fee.

NOTIFICATION ADDRESS FOR INFORMATION REPORTED TO CONSUMER REPORTING AGENCIES: We may report the status and payment history of your account to credit reporting agencies each month. If you believe that the information we have reported is inaccurate or incomplete, please notify us in writing at: Abilene Teachers Federal Credit Union, P.O. Box 5706, Abilene, TX 79608-9946. Please include your name, address, contact

telephone number, and account number.

VISA EMERGENCY SERVICES: For VISA cardholders, you acknowledge that we may provide personal data concerning you to VISA U.S.A., its Members, or their respective contractors for the purpose of providing you with VISA Emergency Cash and Emergency Card Replacement Services, and you consent to the release of your information for these purposes.

AGREEMENT AND ACKNOWLEDGMENT: By signing the application for a card, or by using the card, each person agrees to all the terms and conditions and promises to perform all the obligations, requirements and duties set forth in this Agreement. The person applying for a card who signed the application acknowledges receipt of a copy of this Agreement.

ADDITIONAL PROVISIONS: Each provision of this Agreement must be considered as part of the total agreement and cannot, in any way, be severed from it. However, you also agree that should any part of the Agreement be found invalid, it will in no way affect the remainder of the Agreement. This Agreement is performable in Taylor County, Texas and the validity, construction and enforcement of this Agreement shall be governed by the laws of the State of Texas to the extent not preempted by federal law. The Credit Union does not warrant any merchandise or services purchased by you with the card. All purchases and cash advances are extended at the option of the merchant or cash advancing financial institution and the Credit Union is not responsible for refusal of any merchant or financial institution to honor your card.

PLEASE READ THE FOLLOWING CAREFULLY BEFORE SIGNING:

This Statement is submitted to obtain credit and I/we hereby request

the issuance of an ATFCU credit card in accordance with the terms

and conditions set forth in the ATFCU MasterCard/VISA Agreement.

I/we promise that everything I/we have stated in this application is

correct and that the information listed is a complete listing of all my/our

debts and obligations. I/ we authorize the credit union, at its discretion,

to periodically obtain my/our credit report, check my/our credit and

employment history, and answer questions about its credit experience

with me/us. I/we authorize you to utilize the services of any agent

(including any affiliate) in connection with processing this application or

servicing my/our account. If my request for credit is declined, I

authorize you to advise my co-applicant of that fact. Furthermore, I/we

understand that if I/we designate any authorized users, credit bureaus

may receive and report account information in the authorized user’s

name. If a credit card is used as I/we hereby request, the undersigned

applicant(s), by signing below or by using or permitting another to use

the credit card(s), agree to be bound by the terms and conditions of the

ATFCU MasterCard/VISA Agreement that will accompany my/our

credit card(s).