STATEMENT OF CREDIT TERMS AND DISCLOSURE OF FINANCE CHARGES EFFECTIVE SEPTEMBER 25, 2003

TERMS
Terms are cash for amount of purchase. Convenience open account credit is available to customers with approved credit.

Convenience open account credit is defined as follows:

1. Statement of account shall be rendered to all customers at the end of each month. The balance of the statement is due and payable in full by the 10th of the month following statement (10 days) to avoid finance charges.

PAST DUE ACCOUNTS
1. Accounts not paid by the 15th of the month following the statement date will be put on cash basis. All other accounts pertaining to that person or business will also be on a cash basis until all are paid to date.
2. Accounts not paid by the 15th of the month following the third statement date, unless payment arrangements have been made with general manager, will be submitted to a collection agency or lawyer for collection.
3. Accounts that are delinquent twice in a twelve month period are subject to a credit limit, this limit will be enforced for one year. If purchaser shows a good payment history for that term he may request to be placed on full terms.
4. Accounts delinquent three times in a 12 month period will be closed and must reapply for credit.

FINANCE CHARGES
A FINANCE CHARGE OF 1.5% per month shall be charged to accounts on the 15th day of each month on the amount of the previous unpaid balance. This FINANCE CHARGE is equivalent to an ANNUAL PERCENTAGE RATE OF 18%.

SECURITY INTERESTS
The Federal Regulation commonly referred to as “Truth in Lending” requires that you be advised of any possible security interest on your property arising out of a credit sale.

The articles and by-laws of your cooperative provide that your cooperative has secured interest to any individual patron’s equities up to the amount of that individual’s indebtedness to the cooperative.