Common use of Security for This Account Clause in Contracts

Security for This Account. Pledge Share Account(s) - NOTE: You pledge to us and grant a security interest in all individual and joint accounts you have with us now and in the future, to secure your VISA Credit Card account. You authorize us to apply the balance in these account(s) to pay any amounts due under this agreement if you should default. Shares and deposits in an Individual Retirement Account, and any other account that would lose special tax treatment under state or federal law if given as security, are not subject to the security interest you have given in your shares and deposits. To secure your credit card account, you grant us a purchase money security interest under the Uniform Commercial Code in any goods you purchase through the account. If you default, we will have the right to recover any of these goods which have not been paid for. As a condition for the approval of your VISA account you grant us a specific pledge of your credit union shares (deposits). Collateral securing other loans you have with the Credit Union may also secure this loan, except that your home will never be considered as security for this Account, notwithstanding anything to the contrary in any other agreement. law Governing this Agreement To the extent not expressly prohibited by applicable law, this Agreement and your account, as well as our rights and duties and your rights and duties regarding this Agree- ment and your account, will be governed by and interpreted in accordance with the laws of the State of North Carolina (excluding the conflicts law of North Carolina) and the United States regardless of where you may reside or use your account at any time. This choice of law is made because of a strong relationship between this Agreement and your account to Coastal Federal Credit Union, because issuer is located in North Carolina, and to insure uniform procedures and interpretation for all of our customers, no matter where they reside or use their accounts. If any term of provision of this Agreement is found to be unenforceable, this will not make any other terms or provision unenforce- able. Any financial service provided by Coastal Federal Credit Union may be used for any transaction permitted by law. I agree that illegal use of any financial service will be deemed an action of default and/or breach of contract and such service and/or other related services may be terminated at CFCUs discretion. I further agree, should illegal use occur, to waive the right to sue CFCU for such illegal activity directly or indirectly related to it. I also agree to indemnify and hold CFCU harmless from any suits or other legal action or liability, directly or indirectly, resulting from such illegal use. limitation on lawsuits You agree that any lawsuit based on any cause of action which you may have against us must be filed within one (1) year from the date that it arises or you will be barred from filing a lawsuit. This limitation is intended to include tort, contract, and all other causes of action for which you and we may lawfully contract to set limitations for bringing suit. YOUR BILLING RIGHTS k e e p t h i s n o t i c e f o r f u t u r e u s e ELECTRONIC FUND TRANSFER SERVICE (EFTS) DISCLOSURES This notice contains important information about your rights and responsibilities under the Fair Credit Billing Act.

Security for This Account. Pledge Share Account(s) - NOTE: You pledge to us and grant a security interest in all individual and joint accounts you have with us now and in the future, to secure your VISA Credit Card account. You authorize us to apply the balance in these account(s) to pay any amounts due under this agreement if you should default. Shares and deposits in an Individual Retirement Account, and any other account that would lose special tax treatment under state or federal law if given as security, are not subject to the security interest you have given in your shares and deposits. To secure your credit card account, you grant us a purchase money security interest under the Uniform Commercial Code in any goods you purchase through the account. If you default, we will have the right to recover any of these goods which have not been paid for. As a condition for the approval of your VISA account you grant us a specific pledge of your credit union shares (deposits). Collateral securing other loans you have with the Credit Union may also secure this loan, except that your home will never be considered as security for this Account, notwithstanding anything to the contrary in any other agreement. law Law Governing this This Agreement To the extent not expressly prohibited by applicable law, this Agreement and your account, as well as our rights and duties and your rights and duties regarding this Agree- ment and your account, will be governed by and interpreted in accordance with the laws of the State of North Carolina (excluding the conflicts law of North Carolina) and the United States regardless of where you may reside or use your account at any time. This choice of law is made because of a strong relationship between this Agreement and your account to Coastal Federal Credit Union, because issuer is located in North Carolina, and to insure uniform procedures and interpretation for all of our customers, no matter where they reside or use their accounts. If any term of provision of this Agreement is found to be unenforceable, this will not make any other terms or provision unenforce- able. Any financial service provided by Coastal Federal Credit Union may be used for any transaction permitted by law. I agree that illegal use of any financial service will be deemed an action of default and/or breach of contract and such service and/or other related services may be terminated at CFCUs discretion. I further agree, should illegal use occur, to waive the right to sue CFCU for such illegal activity directly or indirectly related to it. I also agree to indemnify and hold CFCU harmless from any suits or other legal action or liability, directly or indirectly, resulting from such illegal use. limitation on lawsuits You agree that any lawsuit based on any cause of action which you may have against us must be filed within one (1) year from the date that it arises or you will be barred from filing a lawsuit. This limitation is intended to include tort, contract, and all other causes of action for which you and we may lawfully contract to set limitations for bringing suit. YOUR BILLING RIGHTS k e e p t h i s n o t i c e f o r f u t u r e u s e ELECTRONIC FUND TRANSFER SERVICE (EFTS) DISCLOSURES This notice contains important information about your rights and responsibilities under the Fair Credit Billing Act.