Credit Card Agreement: American Express Travel Rewards Card

FDR M-106836

PENTAGON FEDERAL CREDIT UNION

This is your Account Agreement for your PenFed
Premium Travel Rewards American Express® Card.
This contract starts as soon as you sign or use the card.

For each underlined word or phrase, the definition found in the
Definitions of Credit Card Terms is part of your contract.
These definitions are available at PenFed.org/Definitions or by
calling 800-732-8268 for a free printed copy. PenFed worked
with the Consumer Financial Protection Bureau to create these
definitions.

1. Costs

You may use your card for purchases, cash advances, or balance transfers. Each type
of charge will have its own balance. Each balance may have a separate interest rate.

Interest Rate on Purchases:

9.99% APR

Interest Rate on Balance Transfers:

9.99% APR and a balance transfer fee of 3% per transaction (min. $10, max. $250)

Interest Rate on Cash Advances:

9.99% APR

Penalty Interest Rate:
Returned Payment Fee:

17.99% APR and a late payment fee of up to $25
Up to $25 per transaction

There are no fees for cash advances, foreign currency transactions, or card replacements (including rush replacements).
In general, your APRs are variable, which means they increase or decrease with the Prime Rate twice a year. To determine your
APRs, we add 6.74% to the Prime Rate. The Penalty Interest Rate and the Promotional Rates described below, however, will not
vary with the Prime Rate.

Promotional rates and fees
For purchases of electronics through qualifying retailers made before December 31, 2012, the APR will be 0% for six months.
For balance transfers made before December 31st, 2012, there will be no balance transfer fee and the APR will be 4.99% for
the life of the transferred balances. Balance transfers made on these or any other promotional terms are subject to prior credit
approval.
For purchases and cash advances, the APR will be capped at 9.99% through the bill that covers June 2014. During this period the
rate can decrease, but not increase. After June 2014, these APRs will increase if the Prime Rate increases.

What you have to pay and when

If you pay late

We will send your monthly bill to your address on file. If you elect to receive
your credit card bill electronically, you will receive an e-mail alerting you
when your bill is ready to be viewed online.

You will be charged a late payment fee of up
to $25 if the minimum payment is received
10 or more days past the due date.

Even if you do not receive your bill, you agree to pay all authorized charges,
including interest and fees, and any charges that we allow over your credit
limits. You must pay at least the minimum payment by the due date stated on
each bill. Your minimum payment will be the greater of $15 or 2% of the new
balance on your bill, PLUS any charges that we allow over your credit limits,
PLUS any past due amount.

In addition, if you make a late payment, you
will be in default and you may be subject to
the Penalty Interest Rate.

You must pay in U.S. dollars, without restrictive terms, and according to
our standard payment instructions. Mailed payments should be sent to the
address included on your bill.

At our option, we may provide for a payment
skip option, which means that you may be
allowed to skip making the minimum payment for specified billing cycles.

How interest is calculated
You pay interest on cash advances or balance transfers from the date they are charged to your account. We will not charge you
interest on purchases during the next billing cycle if you pay your full balance by the due date each month. This is called a grace
period. If you do not take advantage of the grace period, we will charge interest starting the day you make a purchase.
We choose which balances to pay with the minimum payment. We apply payments above the minimum to balances with the
highest APRs first. We calculate interest using the average daily balance method, including new purchases.

2. Features of your account
Checks and ATM usage
If we issue you checks we treat them as
cash advances when they are presented
for payment. We may refuse to issue or
reissue checks and may also end, limit or
modify the use of the checks. You agree
not to date any check later than the date
you write it.
If you use your card at an ATM, you may
be subject to additional ATM terms and
conditions. There may be minimum and/
or maximum limits on the amount of a
cash advance dispensed from electronic
terminals that accept the card.

Privacy
We may report information to third parties about your account in order to
advise these third parties, such as American Express Travel Related Services
Company, Inc., American Express Global Network Services, credit reporting
agencies or merchants of the existence or condition of your account, as
allowed by law.
We may share information about the account with joint account holders
and authorized users. We may contact you by telephone, email, mail, or
other means. You expressly allow us to obtain information about you that is
relevant to the review and evaluation of your account, including from credit
reporting agencies.
The Privacy Notice further explains how we may share your data and is also
available on our website at PenFed.org/Privacy-Policy

Billing and other disputes

Processing your payments

If your bill has an error or a charge you did not authorize, you
must tell us in writing within 60 days after you get that bill. You
must follow all instructions on that bill. If we find no error after
investigation, you owe us the original amount plus applicable
interest and fees.
If you are not satisfied with a purchase, you may not have to pay if
you contact us in writing before paying us for that purchase. You
must follow all dispute instructions on your bill and assign to us your
claim against the merchant.
No cash refund will be made to you with respect to any adjustment
for goods or services you purchase. All adjustments will be made by
credit to your PenFed account.

Different payment methods will involve different
payment processing times.
If you have been a PenFed member for less than 6
months, all payments we receive from you will be
credited to your account as of the date we process
them, but credit in the amount of the payment will
not be available for 10 calendar days.
For the 6 months following any returned payment,
any payments you make will be credited to your
account as of the date we process them, but credit
in the amount of the payment will not be available
for 10 calendar days.

The Billing Rights Notice further explains your rights.

3. Changes to your account
We reserve the right to change some of your rates and other terms in accordance with the law. You cannot change the terms of
this agreement. Letters and bills may also contain changes to this contract, as may workout arrangements.
Changes may affect APRs, your credit limits, your minimum payment, and other parts of this contract. Your behavior may cause
automatic changes to occur. The boxes below explain some, but not all, of the possible changes.

Penalty APR applies

Other rate increases

If your minimum payment is not received within 60 days of the due date,
your new and existing balances will
be subject to the non-variable Penalty
Interest Rate of 17.99%.

Unless the Penalty APR applies, an APR
will not change during a promotional
period. After a promotional period ends,
however, the APR will change to the
non-promotional rate without notice.

This will remain in place until you
make three consecutive monthly payments on or before the due date.

A non-promotional rate can change
without notice for new and existing balances if the Prime Rate changes. In addition, for new balances, it can change
for any reason on 45 days notice once
the account has been open for at least
a year.

We will give you 45 days advance notice before this change takes effect.

Credit limits
We may increase or decrease your
credit limits at any time and for any reason. There will be no advance notice.

Some fees and other terms
We may change certain fees and other
terms for any reason. We will give you
up to 45 days notice for certain fee and
minimum payment calculation changes.
If you are in default, you will not have
the right to reject such changes.

4. Additional Information
Proper account use

Share pledge

If you use the card for illegal or fraudulent purposes, you will be in
default and we may close your account without notice. You waive
any right to sue PenFed for such illegal use, or any action directly
or indirectly related to it. You agree to indemnify and hold PenFed
harmless from any suits or other legal action or liability, directly or
indirectly, resulting from such illegal use.
You must promptly notify us of any financial condition changes
that may affect your creditworthiness, or any change in your name,
mailing address, or e-mail address. If we ask, you must provide us
with a current loan application.
We may—but are not required to—accept a check for payment on
your account even though payment was made before the date of the
check or the check has a date more than 6 months old.
You are responsible for the possession and use of the card and you
must maintain the confidentiality of the PIN we may assign you. You
must notify us at once if you believe your card has been lost or stolen,
or if you have reason to believe the card is being used without your
permission. Notify us at 800-732-8268 or 541-225-6790 from overseas,
or by writing us at PenFed Card Services, Box 456, Alexandria, VA
22313-0456.

Account closing
We can close the account at any time without notice. You or a joint
account holder can close the account by calling or writing to us. In
either case, you must pay all outstanding amounts on the account,
including all authorized transactions made to your account after
closure. If we close the account or you default, we can demand
immediate payment in full, as allowed by law. Interest will continue
to accrue on unpaid balances. You will give up any rewards points or
miles you have earned unless you redeem them before the account
is closed. You must cancel any recurring charges and you are
responsible for paying such charges even if you closed the account.

Some of our rights
We agree to extend credit to you and advance amounts
up to your credit limit, but transaction limits or other
restrictions may apply. We reserve the right to not allow
charges, including a recurring charge that we previously
allowed, and charges that cause you to go over your
credit limit. Your credit limits are not increased by any
credit balance on the account.
If we sue you to collect debt owing on the account, you
agree to pay us reasonable attorneys’ fees and costs. We
may assign the contract to another person without notice.
You cannot assign the contract.
The card remains the property of PenFed and we may
revoke it without notice at any time. The card must be
surrendered to us upon demand.
You agree that we do not waive our rights under this
agreement if we fail to assert them.

To protect us if you are in default, you pledge all
of your shares, deposits, payments and dividends
which you may receive, whether held by you
individually or jointly, up to the amount of your
outstanding balance. By opening a credit card
account, you expressly authorize PenFed, at any
time and without notice to you, to charge against
any balance in your accounts, including accounts in
which you are a joint owner, to pay any amounts you
owe the credit union. This does not include any IRAs
you may have with the credit union. We can also use
all or any part of the money from your individual or
joint accounts, including any otherwise protected
by law that may not otherwise be available to
PenFed. You provide us with the right to charge your
accounts by: granting a special power of attorney,
giving your express consent, and recognizing the
existence of PenFed’s statutory lien created by law.
We also have the right to apply any funds that may
be available to you in any jointly held account on
your date of death. If it is necessary for us to take
all of your shares in payment of this account, you
understand your membership in PenFed may end.
You may withdraw your approval of the power of
attorney and consent for PenFed to apply such funds
to pay any such indebtedness by notifying PenFed
in writing. In response, PenFed may terminate any
and all services that you have with the credit union.
If you have any other loans with PenFed that are
secured by collateral, PenFed has the option to use
that collateral to also secure this loan.

Other terms
Other defined terms in this contract are as follows. “We” or
“us” or “PenFed” means Pentagon Federal Credit Union and
any and all directors, officers and employees of same. “You”
means yourself and any authorized users of the account.
This agreement binds and benefits us and our assigns and
successors and binds you, your estate and your personal
representatives. If part of this agreement is found to be
unenforceable, the rest will remain in effect.
We do not guarantee that your card will be accepted when you
attempt to use it.
Federal law and the law of the Commonwealth of Virginia will
govern all disputes between us about this account.
Information about this card is accurate as of September 30,
2012 but may have changed since then. To find out what may
have changed, please go to PenFed.org or call 800-732-8268.

PenFed Premium Travel Rewards American Express® Card
Interest Rates and interest charges
Annual Percentage Rate
(APR) for Purchases and
introductory rate through June 30, 2014. After that, your APR will vary with the market based on the Prime Rate.
Cash Advances

9.99%*

APR for Electronic
Purchases through
Qualifying Retailers

0%** promotional rate for six months on purchases of electronics made between October 1, 2012 and December 31, 2012 with

Penalty APR and
When it Applies

17.99% If your minimum payment is not received within 60 days, your entire account is subject to change to the non-variable
Penalty APR. The Penalty APR will remain in place until you make three consecutive monthly payments on or before the due date.

How to Avoid Paying
Interest on Purchases
Minimum Interest Charge
For Credit Card Tips from
the Consumer Financial
Protection Bureau

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.
None

a qualifying retailer. After December 31, 2012, your APR for new electronic purchases will vary with the market based on the Prime
Rate, and is currently 9.99%.
promotional rate for the life of the balance for transfers made between September 1, 2012 and December 31, 2012.1 After
APRs for Balance Transfer 4.99%
December 31, 2012, the APR for new balance transfers will vary with the market based on the Prime Rate, and is currently 9.99%.

Fees
Annual Fee
Transaction Fees
Balance Transfer
Cash Advance
Foreign Transaction
Penalty Fees
Late Payment
Over Credit Limit
Returned Payment

To learn more about factors to consider when applying for or using a credit card, visit the Consumer Financial Protection Bureau
website at http://www.consumerfinance.gov/learnmore.
None
3% (minimum $10, maximum $250) per transaction2
None
None
Up to $10 if balance is less than $1000; Up to $20 if balance is $1000-$2000; Up to $25 if balance is greater than $2000
None
Up to $25

How We Calculate Your Balance: We use a method called “average daily balance” (including new purchases). See your account agreement for more details. Billing Rights: Information
on your rights to dispute transactions and how to exercise those rights is provided in your account agreement. Balance Transfers: 1This transaction is subject to credit approval. 2There is
no balance transfer fee on transfers made between September 1, 2012 and December 31, 2012. Promotional APR offer ends December 31, 2012. Loss of Balance Transfer APR: We
may end your promotional Balance Transfer APR and apply the Penalty APR if we do not receive your payment within 60 days of the due date. Premium Travel Rewards: Cash advances,
credit card checks, balances transfers and account fees are excluded from earning Premium Travel Rewards points. If your acount is closed, accrued points may be forfeited. PenFed reserves
the right to modify this program at any time. Other Notes: This Credit Card program is issued and administered by PenFed. American Express is a federally registered service mark of
American Express® and is used by PenFed pursuant to a license. Terms, conditions and restrictions apply to the use of this card. Refer to the Cardholder Agreement at PenFed.org for more
details. The information on this disclosure is current as of October 2012, but is subject to change. To determine if any changes have occurred since this date, call 800-732-8268. *How the
Annual Percentage Rate (APR) on Purchases and Cash Advances is Calculated During the Introductory Period: The variable introductory APR is based on the
U.S. Prime Rate (“Prime Rate”) plus a margin of 6.74% and has a cap of 9.99%. If the Prime Rate decreases, the APR will also decrease. If the Prime Rate increases, the APR will still not
increase above the cap of 9.99%. How the Annual Percentage Rate (APR) on Purchases and Cash Advances is Calculated After the Introductory Period ends
on June 30, 2014: The cap will be removed, so that if the Prime Rate increases, the APR on any existing balances, new purchases and new cash advances may increase above 9.99%
starting July 1, 2014. Annual Percentage Rate (APR) on Purchases and Cash Advances: Your APR can change in January and July of each year. **Electronic Purchases
made through Qualifying Retailers: The promotional rate of 0% for six months applies towards purchases of electronics made at participating retailers. For a list of some of the
participating retailers, please visit https://www.PenFed.org/ElectronicsStoreList/. Promotional APR offer ends December 31, 2012. Ohio Residents: The Ohio laws against discrimination
require that all creditors make credit equally available to all credit worthy customers, and that credit reporting agencies maintain separate credit histories on each individual upon request. The
Ohio Civil Rights Commission administers compliance with this law. Wisconsin Residents: No provision of a marital property agreement, unilateral statement or court decree adversely
affects the interest of the creditor unless the creditor, prior to the time the credit is granted, is furnished a copy of the agreement, statement or decree or has actual knowledge of the adverse
provision when the obligation to the creditor is incurred.

AMEX Form 1218-B  10/12  POD 

FDR M-106836