Credit agreement—Revolving charge. I agree that the following terms will govern any charge account established by you for my use. If I have applied for a joint account, I affirm that my spouse has authorized me to do so, and that both of us agree to be bound by these terms. 1. I will pay the time sale price of purchases charged to my account. The time sale price shall consist of the cash sale price, including applicable sales taxes and delivery charges, if any, plus any finance charge that may accrue. 2. I can avoid incurring a finance charge by paying my account balance ("new balance") in full, provided that payment is actually received by you before the next billing date. If I do not pay the entire new balance, you may assess a finance charge computed on the "average daily balance" of my account. The average daily balance computation begins with any unpaid balance at the beginning of the billing period, minus any insurance premiums due, unpaid finance charge and credits relating to purchases previously billed. This remaining amount is adjusted on a daily basis, to determine for each day in the billing period a daily balance, by subtracting payments received, after such payments have been first applied to any insurance premiums due and then to any unpaid finance charge. The sum of these daily balances divided by the number of days in the billing period is the average daily balance for that period. These computations exclude purchases not previously billed. 3. The finance charge for any monthly billing period is determined by applying a monthly periodic rate of _________ percent (annual percentage rate _________ percent) to the average daily balance. 4. Whenever there is an outstanding balance in my account at the end of a billing period, I will make a payment on that account before the next billing date. That payment may be any amount up to and including the new balance but not less than any insurance premiums due plus a minimum payment, as follows: New balance _________ Minimum payment _________ 5. You shall have no security interest under this agreement and you waive any security interest or lien arising by operation of law, such as mechanic's or materialman's liens. This provision does not apply to any judgment lien. 6. You have the right to amend this agreement as to purchases made after you have given me notice of the intended change. You may limit or terminate my charge privileges without prior notice. Every account identification you issue to me shall remain your property, which I will return to you upon request. 7. If I am in default under this agreement, my entire balance may, at your option, become due and payable. Your waiver of any default shall not operate as a waiver of any other default. If my account is referred for collection to an attorney, who is not your salaried employee, I will pay, to the extent permitted by law, reasonable attorney's fees and court costs incurred (check governing statute). 8. You may investigate my credit history and capacity, and that of my spouse if this is a joint account, and furnish information concerning this account to credit reporting agencies and others who may properly receive that information. 9. The law of the state where I reside shall govern this agreement. If my state of residence changes, I will immediately notify you. If your charge account terms then applicable in my new state of residence differ from those in this agreement, I will sign a new agreement made available by you, and, until I do so,
this agreement shall be deemed amended to conform to that new agreement as to any purchase made after my change of residence and you may act accordingly. 10. Should any provision of this agreement be finally determined inconsistent with or contrary to applicable law, the provision shall be deemed amended or omitted to conform with the applicable law without affecting any other provision or the validity of this agreement. Notice to Buyer. Read this agreement before you sign it. Do not sign this agreement in blank. You are entitled to a copy of the agreement at the time you sign. Keep it to protect your legal rights. Receipt of a copy of this agreement is acknowledged. (Buyer's signature)