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SEARS, ROEBUCK AND CO.
SEARSCHARGE SECURITY AGREEMENT
RETAIL INSTALLMENT SECURITY AGREEMENT
On all charges to my SearsCharge account, I agree to the following:
1.
Option to Pay i n Full Each Month to Avo i d Fi nance
Charges. I have the right each month to pay the total balance
on my account. If I do so within
3 0
days of my billing date, no
Finance Charge will be added to the account for that month.
The billing date will be shown on a statement sent to me each
month. The total balance on my billing date will be called the
New Balance on my monthly statement.
2.
Option to Pay Installments Plus a Finance Charge. If I do
not pay t he total balance in full each month, I agree to make at
least a minimum payment within
30
days of the billing date
shown on my monthly statement. The minimum payment re–
q u1 red each month is shown in t he Schedu le of Minimum
Monthly Payments below.
3.
Schedule of M inimum Monthly Payments. The required
minimum monthly payment 1s based on the highest New Bal–
ance in the Account
When th• "Highest The Minimum
New Balance"
Monthly Pay1111nt
Reaches:
will
be:
$
.01
to
$
8.00
Balance
8.01
to
160.00
$8.00
160.01
to
180.00
9.00
180.01
to
200.00
10.00
200.01
to
220.00
11.00
220.01
to
240.00
12.00
240.01
to
260.00
13.00
260.01
to
290.00
14.00
290.01
to
340.00
15.00
When the " Highest
New Betance"
Reaches:
The Minimum
Monthly Payment
will
be:
$340.01
to
$380.00
380.01
to
410.00
410.01
to
440.00
440.01
to
470.00
470.01
to
500.00
Over
$500.00 1/25th
$16.00
17.00
18.00
19.00
20.00
of Highest Account Balance
rounded to the next
higher whole dollar amount.
You may always pay more than the required minimum monthly pay–
ment The minimum payment will change only 1f charges to the
account increase the balance to a new high. The minimum payment
will not decrease until the new balance 1s paid in full.
4
Finance Charge. If I do not pay the entire New Balance within
30
days of the monthly billing date, a Finance Charge will be
added to the account for the current monthly billing period.
The
FINANCE CHARGE
will be either a minimum of
50c
1f the AVERAGE DAILY BALANCE is
$33.00
or less.
or a ..12,er1odic rate of
1. 5 %
Qer month
(ANNUAL
PEHCENTA GE RA TE
of
1 8
%)
on the first
$500.00
of the AVERAGE DAILY BALANCE,
and a .12.eriod1c rate of
1
%
per month
(ANNUAL
PERc;ENTAGE RATE
of
12
%)
on any part of the
AVERAGE DAILY BALANCE over
$500.00.
5 .
How to Determine the Average Daily Balance. Sears will
determine each day's outstanding balance in the monthly b1ll-
1ng period and d1v1de the total of these daily balances by the
number of days in the monthly billing period. The result is the
Average Daily Balance.
Sears will include the current month's charges, but will not
include any unpaid finance or insurance charge(s). when deter–
mining a daily balance.
All payments, credits for current purchases returned. and other
credits will be subtracted from the previous days balance.
6.
Failure t o Make Minimum Payment. If I do not make at least
the minimum required monthly payment when due. Sears may
declare my entire balance immediately due and payable.
7.
Security Interest in Goods. Sears has a security interest un–
der the Uniform Commercial Code 1n all merchandise charged
to the account. If I do not make payments as agreed. the secu–
rity interest allows Sears to repossess only the merchandise
which has not been paid 1n full. I am responsible for any loss or
damage to the merchandise until the price is fully paid. Any
payments I make will first be used to pay any unpaid Insurance
or Finance Charge(s). and then to pay for the earliest charges
on the account. If more than one item 1s charged on the same
date. my payment will apply first to the lowest priced item.
8. Change of Te rms-Cance ll ati on . Sears has the right to
change any term or part of this agreement by sending me a
written notice. Sears also has the rrght to cancel this agreement
as 1t relates to future purchases. I agree to return all credit cards
to Sears upon notice of such cancellation.
9 .
Change of Residence. If I change my residence. I will inform
Sears. Sears has the right to transfer the account to a Sears unit
servicing my new residence. When Sears notLf1es me that the
accouQ! has been transferred, the account. including the exist–
ing balance. shall be governed by the credit terms which apply
to Sears credit customers in my State of residence, including the
FINANCE CHARGE
and the method of determining the bal–
ance upon which the
FINANCE CHARGE
is based. Sears
will provide me with a written disclosure of the new credit terms
which apply to a new State of residence.
1O.
Authorized Buyers. This agreement controls all charges made
on the account by me or any person I authorize to use the ac–
count.
11 .
Credit Investigation and Disclosures. Sears has the right to
investigate my credit, employment and income records, and has
the right to verrfy my credit references and to report the way I
pay this account to credit bureaus and other interested parties.
12.
Waiver of Li en on Residence. Sears gives up any right to re–
tain or acquire any lien which Sears might be automatically enti–
tled to by law on real estate which I use as my principal resi–
dence. This does not apply to a lien created by a court Judgment
or acquired by a filing as provided by statute.
13.
Account Subject to Approval of Sears Credit Department.
This agreement 1s subiect to the approval of Sears Credit Sales
Department. The agreement will be considered approved when
Sears delivers a credit card or other notice of approval to me.
14.
Protection of Buyer's Rights. The Notice below. which 1s re–
quired by law. 1s intended to preserve any claim or right I have
against Sears 1f my account 1s ever sold or transferred to another
creditor.
NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT
CONTRACT IS SUBJECT TO ALL CLAIMS AND DE–
FENSES WHICH THE DEBTOR COULD ASSERT
AGAINST THE SELLER OF THE GOODS OR SERVICES
OBTAINED PURSUANT HERETO OR WITH THE PRO–
CEEDS HEREOF. RECOVERY HEREUNDER BY THE
DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY
THE DEBTOR HEREUNDER.
15.
Notices Required by State law.
NOTICE TO BUYER: 1. DO NOT SIGN THIS CREDIT
AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS
ANY BLANK SPACE. 2. YOU ARE ENTITLED TO ACOM–
PLETELY FILLED IN COPY OF THIS CREDIT AGREE–
MENT. KEEP IT TO PROTECT YOUR LEGAL RIGHTS.
3. YOU HAVE THE RIGHT TO PAY THE ENTIRE BAL–
ANCE AT ANY TIME.
(Cust omer's Signature)
ACCEPTED, SEARS. ROEBUCK AND CO.
By~~~~~~~~~~~~~~~~~~~~~~~-
NOTICE:
To open a new SearsCharge Account. residents of
Oklahoma
and
Texas
should read and sign the above agree–
ment and return 1t to us together with the completed credit applrcation on the facing page. Upon approval of your application, you
w ill receive a disclosure of your rights under the Fair Credit Billing Act along with a copy of the agreement for you to keep.
Residents of ot her states should complete and return the credit application on the facing page as appropriat e. Upon approval of
your credit application Vou will receive a disclosure of your rights under the Fair Credit Billing Act along with a copy of the
agreement to sign together with a copy for you to keep.
326
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