As used in this Agreement, the words "you" and "your" mean each and every person clicking "agree", using, or having an MCB Charge or Plus Account with MCB, Inc. The words "we" or "us" refer to MCB, Inc.; "card" refers to an MCB Charge or Plus card.

• This is your agreement with MCB. It is a summary of terms that is provided with your MCB card, in response to your signed application. If you use your MCB card, you agree to all of the terms in this agreement. You must keep all your promises to MCB contained in this agreement. Please read the agreement carefully and keep a copy for your records.

• Maximum amount you may owe MCB. We will tell you the maximum amount you may owe MCB at any given time. That amount will be your MCB card credit limit. You may not exceed this limit. You may not use your MCB card if you owe MCB more than your credit limit. If you do exceed the limit, you must pay the amount that you owe MCB over the credit limit immediately. You may request a change to your credit limit by submitting a completed application to MCB at the address shown in paragraph 9 of this agreement.

• Promise to pay for purchase. You must pay MCB the amount of all purchases. If more than one-person signs the application, each person promises to pay all the amounts owed to MCB under this agreement. This means that MCB may collect money owed from each of you or from all of you.

• Monthly statements. If your account has a balance, MCB will send a statement each month. We will send you one statement for all cards issued with your account number. If more than one person signed the application, we will send the statement to the first person listed on the application. Each statement covers a billing period. The billing period is the number of days between the closing date on the last statement sent to you and the closing date on your current statement.

• Payments. Payments can be made during MCB's regular business hours, over the phone, at any bank pacific, or bank of Guam locations, or they may be mailed to the address indicated on your statement. All your payments to MCB must be in U.S. dollars. All checks must be of funds on deposit in the United States or its territories. We will accept late or partial payments, as well as payments that are marked "paid in full" or any other restrictive endorsement without forfeiting any of MCB's rights under this agreement. Payments received at other than the address shown on the monthly statement may be subject to a delay in crediting of up to five (5) days after the date of receipt.

• How much you must pay to MCB.The statement will tell you the amount that you owe us. That amount will be your account's new balance. The outstanding balance of your account on the first day of a billing period is called your previous balance. To determine the new balance of your account, start with the previous balance for the billing period. Then add any new purchases posted to your account during the current billing period. Then subtract any payments or credits. Finally, add the appropriate late payment penalty. We will charge you a penalty unless you pay the full billed balance when due.

• When MCB will add a late payment penalty charge to your account balance. MCB will add a late payment penalty charge of $15.00 to your new balance unless you paid the previous balance in full by its due date.

• Liability for unauthorized use. If your MCB card is lost or stolen, you may be liable for its unauthorized use. You will not be liable for unauthorized transactions on the lost or stolen card after you notify MCB at 472-4MCB (4622) immediately by telephone or write to the address shown in paragraph 9 of this agreement. In any case, your liability for the unauthorized use of a lost or stolen card will not exceed $50.00. Report a lost or stolen card immediately.

• Address for correspondence to MCB.All correspondence to MCB relating to this agreement should be addressed to MCB Inc., 209 Hesler place, Hagatna, Guam96910.

• Change of address. You agree to promptly notify MCB at the address shown in paragraph 9 of any changes of address.

• Amendment of this agreement. MCB may amend and change this agreement by mailing to you, at your latest address of record, a written notice of the changes at least fifteen (15) days prior to the beginning date of the billing cycle in which any changes are to become effective. However, we may reduce the various charges without notice to you.

• You may cancel your account. You may cancel your MCB account with MCB whenever you choose. To cancel your account, cut the card(s) in half and notify us in writing that you want to cancel your account. Your notice should be sent to MCB at the address shown in paragraph 9 of this agreement. Include the card pieces with the notification. You still must pay any amount you owe to MCB.

• MCB may cancel your account. MCB has the right to cancel your account at any time. You must return the MCB card if we ask you to do so. You cannot use the card after we have asked you to return it. Cancellation may be effective for any of, but not limited to, the following reasons:

  • Unpaid charge account.
  • Frequent returned checks.
  • Unpaid returned checks.
  • For any of the other reasons identified in paragraph 17 of the agreement.

• The provisions of this agreement are separable. If any provision of this agreement is held to be invalid or unenforceable, the rest of this agreement will not be affected. The provisions of this agreement are likewise separable from the MCB check guarantee agreement signed earlier.

• Responsibility of MCB. MCB shall not be responsible for merchandise or services purchased by you with the MCB card. Unless required by law, MCB will not be responsible for the refusal of any person to honor your MCB card.

• Ownership of MCB member card. Every card remains the property of MCB, and you will need to surrender your card to MCB or anyone designated by us on demand. If any bankruptcy proceeding is commenced by or against you, your MCB account will automatically be canceled without prior notice.

• Default. If you do not make a payment when due, or you violate any terms of this agreement, or if you exceed your line of credit established by MCB for the use of your MCB card, or if you commence any bankruptcy proceeding, or if MCB reasonably determines that there has been a substantial adverse effect on your ability to repay due to a change in status of employment, or increase in outstanding credit line, MCB can choose to cancel your card and/or declare immediately due and payable the unpaid portion of the new balance plus current charges together with all costs, disbursements and attorney's or collection agency's fees.

• Credit reporting agencies. MCB may give information about your MCB account to other persons or companies when permitted by the fair credit-reporting act. You authorize MCB to make whatever credit or investigation inquiries MCB deems necessary in the course of review of any credit extended under this agreement. If you ask MCB, we will tell you whether we asked for credit reports about you. If we did, we will give you the name and address of the credit-reporting agency. You may provide us with any other names under which you have been granted credit or that we would use to check your credit.

• Assistance in prosecution. You agree to assist MCB in the prosecution of persons for unauthorized use of your card, i.e., to furnish affidavits and/or give testimony.

• Guam law governs this agreement. Guam law will be used to interpret this agreement unless federal law applies.

• Fees. If you have been issued a MCB card, MCB will bill you $30.00 annually for each card issued under your account for the MCB membership fee. This fee is non-refundable. There are no per transaction fees. An over-the-limit fee of $5.00 will be assessed when you exceed your authorized credit limit. A returned check charge of $40.00 will be assessed for each returned check and an additional charge of $6.00 will be assessed for each returned check that is made payable to MCB. You pay no late fees if you pay your full balance by the date indicated on your statement. A late charge of $15.00 will be assessed for payments received after the statement due date. A $15.00 late fee will be assessed if an installment of a financed charge is not paid on or before its due date.

YOUR BILLING RIGHTS

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 BILL. IF YOU THINK YOUR BILL IS WRONG, OR IF YOU NEED MORE INFORMATION ABOUT A TRANSACTION ON YOUR BILL, WRITE US AT THE ADDRESS LISTED ON YOUR BILL. WRITE TO US AS SOON AS POSSIBLE. WE MUST HEAR FROM YOU NO LATER THAN SIXTY (60) DAYS AFTER WE SENT THE FIRST BILL 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.
• THE 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.

YOUR RIGHTS AND OUR RESPONSIBILITIES AFTER WE RECEIVE YOUR WRITTEN NOTICE. WE MUST ACKNOWLEDGE YOUR LETTER WITHIN THIRTY (30) DAYS, UNLESS WE HAVE CORRECTED THE ERROR BY THEN. WITHIN NINETY (90) DAYS, WE MUST EITHER CORRECT THE ERROR OR EXPLAIN WHY WE BELIEVE THE BILL 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, 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 BILL THAT ARE NOT IN QUESTION. IF WE FIND THAT WE MADE A MISTAKE ON YOUR BILL, YOU WILL NOT HAVE TO PAY ANY PENALTIES ON THAT PARTICULAR AMOUNT. IF WE DIDN'T MAKE A MISTAKE, YOU MAY HAVE TO PAY PENALTY 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 IT IS DUE. IF YOU FAIL TO PAY THE AMOUNT THAT WE THINK YOU OWE, WE MAY REPORT YOU AS DELINQUENT. HOWEVER, IF OUR EXPLANATION DOES NOT SATISFY YOU AND YOU WRITE TO US WITHIN TEN (10) DAYS TELLING US THAT YOU REFUSE TO PAY, WE MUST TELL ANYONE WE REPORT TO THAT YOU HAVE QUESTIONS ABOUT OUR BILL. AND, WE MUST TELL YOU THE NAME OF ANYONE TO WHOM WE REPORTED TO. WE MUST TELL ANYONE WE REPORT TO THAT THE MATTER HAS BEEN SETTLED BETWEEN US WHEN IT FINALLY IS. IF WE DO NOT FOLLOW THESE RULES, WE CANNOT COLLECT THE FIRST FIFTY ($50) DOLLARS OF THE QUESTIONED AMOUNT, EVEN IF YOUR BILL WAS CORRECT.