Common use of USING YOUR ACCOUNT Clause in Contracts

USING YOUR ACCOUNT. If you are approved for an Account, the Credit Union will establish a line of credit for you and notify you of your credit limit. You agree that your credit limit is the maximum amount (purchases, cash advances, finance charges, plus “other charges”) that you will have outstanding on your Account at any time. If you are over your credit limit, you must pay the amount you are over before payments will begin to restore your credit limit. You may request an increase in your credit limit only by a method acceptable to the Credit Union. The Credit Union has the right to reduce your credit limit, refuse to make an advance and/or terminate your Account at any time for any reason not prohibited by law. PLEDGE AGREEMENT — (Applies to SECURED CARDS ONLY) As a condition to receive your Secured credit card, you authorize Explorers FCU to open a Security Deposit Account in your name(s). Your approved credit limit will be equal to your initial deposit amount. To ensure repayment of your obligations on the Secured credit card, including fees and interest, you assign, transfer, pledge, and grant a security interest to Explorers FCU in all current and after-acquired funds in the Security Deposit Account. You understand that the pledged funds will not be accessible for withdrawal. Upon any default under the credit card agreement or in the event your Secured credit card is terminated for any reason, you agree that Explorers FCU has the right to collect and withdraw any part or the full amount on deposit in the Security Deposit Account without notice to you and apply the funds toward any outstanding balance on your Secured credit card account. Any funds remaining in the Security Deposit Account after doing so will be transferred to your primary savings account.