Common use of THE CREDIT LIMIT Clause in Contracts

THE CREDIT LIMIT. Upon approval of the credit card application, the Cardholder will be given a credit limit expressed in pesos, inclusive of the cash advance limit, which represents the maximum outstanding balance, including, but not limited to, any installment transaction/s made using the Credit Card, and all other applicable fees and charges incurred using the Credit Card, that the Cardholder and his/her supplementary member(s) are allowed at any given time subject to security features and credit limit management features that PNB may impose for the benefit of the Cardholder. The credit limit, though expressed in pesos, may also be used for dollar-denominated purchases and at an equivalent value of fifty pesos for every dollar. In case PNB issues two or more Credit Cards to the Cardholder, the Cardholder understands and agrees to abide by the condition that he/she may, at PNB's sole discretion, be given a credit limit for each Credit Card that must not exceed the assigned aggregate customer credit limit shared among all his Credit Cards. PNB may increase or reduce the Cardholder’s credit limit based on his/her payment history, or current economic/financial capacity or credit standing in accordance with PNB’s risk management policies and guidelines, whether during the effectivity of the credit card or upon renewal thereof, and the Cardholder shall be notified of such increase or reduction in his/her credit limit. The Cardholder shall have the option to decline the increase in his credit limit by providing PNB with a written notice of his/her disagreement to the increase in credit limit. The Cardholder’s continued use of the credit card after receipt of the notice of increase or decrease of his/her credit limit shall constitute acceptance of such increase or reduction. Should the outstanding balance exceed the reduced credit limit, said excess shall be considered immediately due and demandable and subject to an overlimit fee, without need of further notice or demand. The Cardholder may also apply for an increase or decrease in credit limit, which application will be subject to the evaluation of PNB.