CREDIT LINE ACCOUNT AGREEMENT AND
FEDERAL DISCLOSURE STATEMENT

THIS IS YOUR CREDIT LINE ACCOUNT AGREEMENT AND IT INCLUDES NECESSARY
FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENTS, MASTERCARD CLASSIC AND
MASTERCARD GOLD AGREEMENT AND ANY SPECIAL INSTRUCTIONS REGARDING THE
USE OF YOUR MASTERCARD CLASSIC AND MASTERCARD GOLD CREDIT CARDS AND/OR
OTHER ACCOUNT ACCESS DEVICE. PLEASE READ THIS BROCHURE CAREFULLY AND
NOTIFY US AT ONCE IF ANY PARTS ARE UNCLEAR.

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 selfreplenishing
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 Your
Account 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 charged
8/10ths 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 using
Your 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 Billing
Statement. Write to Us as soon as possible. We must hear from
You 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 bill
You 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:
a. 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
b. 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.