Borsheims Revolving Charge

Revolving charge agreement and security agreement

On all charges to my Borsheims Revolving Charge Account established under this Borsheims Revolving Charge Agreement, I agree to the following:

1. 1. I (Cardholder(s))* agree to pay for all merchandise and services charged to my account by any authorized person in accordance with the terms of this Agreement. My liability is joint and several with any cardholder who signed the application. The terms and conditions of the Borsheims Credit Application signed by me are incorporated into this Agreement.

2. OPTION TO PAY IN FULL EACH MONTH TO AVOID FINANCE CHARGE. I have the right each month to pay the total balance on my account. If I do so by the 25th of the month following the statement date, no FINANCE CHARGE will be added to the account for that month. The statement date will be shown on a statement sent to me each month. The total balance on my statement date will be called the CURRENT BALANCE on my monthly statement.

3. FINANCE CHARGE. If I do not pay the CURRENT BALANCE by the 25th day of the month following the statement date, a FINANCE CHARGE will be added to the account for the current monthly billing period. The FINANCE CHARGE will be a periodic rate of 1.5% PER MONTH (ANNUAL PERCENTAGE RATE OF 18%) computed on the Average Daily Balance.

4. AVERAGE DAILY BALANCE METHOD (EXCLUDING CURRENT TRANSACTIONS). Borsheims figures the FINANCE CHARGE on my account by applying the periodic rate to the "average daily balance" of my account (excluding current transactions). To get the "average daily balance", Borsheims will take the beginning balance of my account each day and subtract any payments. Credits in excess of the current period purchases will also be subtracted. Borsheims does not add in any new purchases. This gives Borsheims the daily balance. Then, Borsheims will add all the daily balances from the billing cycle together and divide the total by the number of days in the billing cycle. This gives Borsheims the "average daily balance". The "average daily balance" will never be less than zero.

5. MINIMUM MONTHLY PAYMENT. If I do not pay the total balance in full each month, I agree to make at least a minimum payment by the 25th of the month following the statement date shown on my monthly statement. The required minimum monthly payment is based on the balance as of the most recent statement closing date on the account. It may increase when charges are added to the account. The Minimum Monthly Payment will be 1/30th of the highest account balance or $35.00, whichever is greater. I can always pay more than the Minimum Monthly Payment.

6. DEFAULT. The occurrence of any of the following shall be a default hereunder: (1) I fail to perform any of my obligations, (2) my death or the death of any Co-Signer, (3) institution of any proceeding in bankruptcy or receivership or insolvency by or against me or any Co-Signer, (4) issuance of execution process against any property of mine or any Co-Signer, (5) any warranty or statement by me that proves to be materially incorrect, (6) failure to insure the merchandise against loss as required in the insurance provisions of paragraph 8 below. In the event of a default, Borsheims shall have the right to (a) declare all unpaid installments immediately due; (b) enter any premises and without breach of the peace take possession of the goods; and (c) exercise any and all of the rights on default of a secured party under the Uniform Commercial Code of Nebraska. Borsheims may require me to assemble the goods and make them available to Borsheims at a place to be designated by Borsheims which is reasonable convenient to Borsheims and me. Any notice of sale, disposition, or other intended action by Borsheims sent to me at the address specified above, or such other address of mine as may from time to time be shown on Borsheims records, at least seven days prior to such action, shall constitute reasonable notice to me. I will pay any deficiency that may remain after the exercise of such rights and will be entitled to any surplus. All of Borsheims rights hereunder are cumulative, and no waiver of any default shall affect any later default.

7. In the event of default of ten (10) days or more by me, Borsheims, as required by law, may give me a notice of my right to cure such default within twenty (20) days following the date of such notice. If I fail to cure such default within such twenty-day (20) period, Borsheims, at its option, may declare all unpaid installments immediately due and payable, as well as exercise any other remedies available at law or equity. In the event of any subsequent default, Borsheims may, without notice to me, exercise any remedies available to Borsheims by the terms of this contract or any other remedy available at law or equity.

8. DEFERRED CREDIT PLAN. Borsheims may choose to offer from time to time a Deferred Credit Plan which may include: Waive Interest, Payment Required (Finance Charges deferred); Waive Interest, Defer Payment (Finance Charges and payment are deferred. Finance Charges then accrue from the first day after the deferment period); Defer Interest and Payment (Finance Charges and payment are deferred, Finance Charges then accrue from the date of purchase); Defer Sale (Finance Charges, payments and billing are deferred). The deferment period may be until a specific date or for a certain number of days ("Deferment Period"). I can obtain more information about the availability of the Credit Plans from Borsheims by contacting you at the address stated in paragraph 19 herein.

9. SECURITY INTEREST IN GOODS. I hereby grant to Borsheims a purchase money security interest under the UNIFORM COMMERCIAL CODE in all merchandise charged to the account. If I do not make payments as agreed, this security interest allows Borsheims to repossess only the merchandise which has not been paid for in full. All merchandise purchased with the account is for my personal, family or household use at the address given by me on my Credit Application. I understand that I cannot sell merchandise purchased from Borsheims to third parties until it is fully paid for. I am responsible for any loss or damage to the merchandise until the price is fully paid. I shall insure the goods, personal property, or merchandise purchased in this revolving charge agreement against loss from hazards, including, but not limited to, destruction, loss or theft. I hereby assign to Borsheims all rights to receive the proceeds of such insurance. In the event of a hazard loss, I direct any insurer to pay all proceeds directly to Borsheims and authorize Borsheims to endorse any draft for the proceeds. Borsheims agrees to pay to me that portion of the insurance proceeds, which exceeds the unpaid balance due hereunder. Any payments I make will first be used to pay any FINANCE CHARGE(S), and then to pay for the other charges on the account.

10. LIMITED WARRANTY. Goods are purchased "as is" and there are no warranties expressed or implied. All manufacturers' warranties, if any, apply in accordance with their respective terms and conditions. I warrant that any property offered in trade for the goods is free from any lien, claim, encumbrance or security interest.

11. LIMITATIONS OF DAMAGES. I agree that Borsheims shall not be liable for consequential damages resulting from any breach of this Agreement. My remedies for breach are limited to the return of the goods and refund of the purchase price, or at Borsheims option, to the repair and/or replacement of nonconforming goods or parts.

12. CHANGES OF TERMS CANCELLATION. Borsheims has the right to change any terms or part of this Agreement by sending me a written notice as required by law. My use of the revolving charge card after written notice of changes were sent to me will constitute agreement to the revised terms. Borsheims also has the right to cancel this Agreement as it relates to future purchases.

13. CHANGE OF ADDRESS. I will notify Borsheims of any change in my address.

14. AUTHORIZED BUYERS. This Agreement controls all charges made on the account by me or any person I authorize to use the account.

15. CREDIT INVESTIGATION AND DISCLOSURE. Borsheims has the right to investigate my credit, employment and income records, to verify my credit references, to report the way I pay the account to credit bureaus and other interested parties and to share information about me for business purposes with other companies doing business with Borsheims.

16. GOODS NOT TO BECOME ACCESSIONS TO OTHER GOODS. It is my intention that all goods purchased under this Agreement will become accessions to other goods.

17. OTHER CHARGES AND FEES. You may charge my account for returned check fees as allowed by law. You may receive reasonable attorney fees if the law allows you to recover them if I am in default.

18. CHARGES SUBJECT TO CREDIT APPROVAL. This Agreement and all charges on the account are subject to the approval of Borsheims Credit Service Department.

19. CREDIT BALANCE. I understand that no interest will be paid on deposits, down payments, or credit balances which may exist on my account.

20. UNAUTHORIZED USE. I agree to promptly notify Borsheims upon discovery if my charge card is lost or stolen. Federal law states that my liability for unauthorized use of the charge card shall not exceed $50.00. I may be liable for the unauthorized use of the Borsheims Revolving Charge card up to that amount. However, I will not be liable for unauthorized use which occurs after I notify Borsheims verbally at 402-391-0400 or 800-91-66242 or in person to BORSHEIMS CREDIT SERVICES DEPARTMENT, 120 Regency Parkway, Omaha, Nebraska 68114, of any loss, theft, or possible unauthorized use.

21. CONFIDENTIALITY. Borsheims does not sell or trade information about cardholders with other Companies for marketing purposes. I understand the information provided by me on my application will be held confidential by Borsheims.

22. It is Borsheims intent to comply with all state and federal laws and regulations which might affect this transaction. Consequently, if there is a conflict between any of the terms and conditions of the Agreement and applicable federal or state law, this Agreement will be considered changed to the extent necessary to comply with the law.

23. This contract shall be construed under the laws of the State of Nebraska. I agree that any action related to this contract may be instituted and prosecuted in the courts of Omaha, Douglas County, Nebraska, and I hereby waive the right to a change of venue.

24. ERRORS OR INQUIRIES ON MONTHLY STATEMENT NOTICE. SEE THE BILLING RIGHTS SUMMARY ON YOUR PERIODIC STATEMENT FOR IMPORTANT INFORMATION REGARDING YOUR RIGHTS TO DISPUTE BILLING ERRORS.