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Balance Calculation Method-Average Daily Balance: Including Cur–

rent Transactions in all states except Excluding Current Purchases in ME,

MA, MN, MT, NE, and NM.

• We figure the finance charge on your account by applying the periodic

rate to the Average Daily Balance of your account.

• To get the Average Daily Balance, we take the beginning balance of your

account each day, add new purchases, and subtract payments and

credits. In ME, MA, MN, MT, NE, and NM, current purchases are not

included during the billing period in which they were made. In AR, CA, HI,

LA, MS, ND, and PA, unpaid finance charges from a previous billing

period are not included.

• We then add all the daily balances for the billing period and divide the

total by the number of days in the billing period. This gives us the Average

Daily Balance.

If you have a Regular Charge balance, a Major Purchase balance, or both,

we figure the Average Daily Balance for each. Then we combine them to

determine your finance charge. We multiply the combined Average Daily

Balance by the periodic rate to get your finance charge for the billing

period.

Finance Charge Rates-The periodic rates throughout the United States

are listed below:

Periodic

ANNUAL

Portion of Average Minimum Monthly

Residence

Rate

PERCENTAGE

Daily Balance

FINANCE

RATE

to Which Applied

CHARGE

AL

1.75%

21%

$750or less

50¢

1.5%

18%

over$750

AK

1.5%

18%

$1,000 or less

50¢

.87%

10.44%

over$1,000

AR

1.0%

12.0%

Entire

None

CA.IA

1:65%

19.8%

Entire

50¢

CT, HI, NC, ND,

RI

1.5%

18%

Entire

None

DC

1.75%

21%

Entire

None

FL LA

Ml\

ME, MN,

1.5%

18"A.

Entire

50¢

PA, TX, WA, WI

KS

1.75%

21%

$1,000 or less

50¢

1.2%

14.4%

over$1,000

Ml

1.7%

20.4%

Entire

50¢

MO

1.67%

20.04%

Entire

50¢

NE

1.75%

21%

$500or less

None

1.5%

18%

over$500

WV

1.5%

18%

$750orless

50¢

1.Cl%

12%

over$750

All Other States

&

Outside U.S.-

1.75%

21%

Entire

50¢

50States

There is no minimum monthly finance charge if you have only a Major Pur–

chase balance.

In Texas-The finance charge rates may change on an annual basis

(November 1 of each year). The current rate will be automatically renewed

for the next year if permitted by law. Any change in the rate may apply to

your entire balance. The rate may not exceed the maximum rate estab–

lished by the Texas Consumer Credit Commissioner. The ANNUAL PER–

CENTAGE RATE may not be greater than 21%.

In Arkansas-Any finance charge added to your account for a billing

period will be computed by applying a variable rate to your average daily

balance. The monthly finance charge rate is 1/12 of an annual percentage

rate equal to five percentage points above the Federal Reserve Board's

Discount Rate on 90-day commercial paper in Arkansas. This rate will not

exceed the maximum monthly rate of 1.41

%

(annual percentage rate

17%).

The MONTHLY FINANCE CHARGE RATE resulting from this variable rate

formula is now 1.0%(ANNUAL PERCENTAGE RATE 12.0%).The variable

finance charge rate is subject to change as of the effective date of any

increase or decrease in the discount rate described above. Any increase in

the finance charge rate will apply only to purchases made on and after the

effective date of the change. Any decrease in the rate will apply to the vari–

able rate balance on your account as of the effective date of the change.

No advance notice of any change will be given.

Returned Check Fee-If any check sent to us as payment on your

account and/or for insurance premiums is returned unpaid by your bank,

we may charge you a reasonable returned check fee.

Late Payment Charge- This applies to you if you live in AL, AR,

AZ.,

CA,

FL, GA, HI, ID, KY, MD, MS; MT, NV, NH, NY, OH, OR, SD, TN, VA, WA, WV,

or outside the U.S. If we do not receive your required payment within two

consecutive billing periods, we may assess a late payment charge. This

charge is 5% of the late payment (excluding any insurance premiums and

returned check fees). but not more than $5.00 ($3.00 in Ohio).

Taxes on Finance Charge-If you live in HI, you agree to pay the 4% state

excise tax on your finance charge. If you live in MS any finance charge

assessed on your account is subject to the MS state sales tax. The current

rate of that tax is 6%.

Monthly Payments quoted elsewhere in this catalog do not _include

sales tax or the transportation-and-handling charge.

Payment Terms-The following repayment terms do not apply to you if

you live in

AZ.,

Ml, MO, NC, NJ, or OR. If you live in one of these states, sub–

mit the application on page 381, and terms will be sent to you upon

approval of your aoplication.

·

Regular Charges-If you have a Regular Charge balance, you agree to

make at least a minimum payment each month as listed below:

IF YOUR REGULAR

CHARGE BALANCE IS:

THEN YOUR MINIMUM

MONTHLY PAYMENT IS:

$ 15.00 or less ............ ... , ................... ..Balance

15.01 -

100 ............ . .. ........... ................$15

100.01 -

200 .......... . ., .. . ......... ·· •·· ............. .25

200.01 -

250 .. ....... .. ,... .. .• ..... ........ . , ..........30

250.01 -

300 ............, .. •.. ...........................35

300.01 -

350 .............. ,. , ,......... . .... ........ ... .40

350.01 -

400 ................ . ............ , .. ........... .45

400.01 -

450 ............ .. ' .................... ....... ..50

450.01 -

550 ............. ... , ....... ..... .. .. ., ..........55

Over

$550 ..... . ... ...................... . ..... ... .... 10.5%

Major Purchase Charges-If you have a Major Purchase balance, you

agree to pay at least a fixed amount each month. This amount is based on

your highest Major Purchase balance. Even if you reduce your balance,

your monthly payment will remain the same until that balance is paid. The

portion of any payment over the required amount will reduce the payment

amount due in the following month(s).

IF YOUR HIGHEST MAJOR

THEN YOUR

PURCHASE BALANCE IS:

MONTHLY PAYMENT IS:

$200.01 -

210 .... ..... . ...... ... ............ ....... .$ 9.00

210.01 -

225 ...... " ·... ........ .. . .. ..... ... ..... . 9.50

225.01 -

240 . ... .................. .

10.00

240.01 -

255 . ........... .. .................... ..... 10.50

For balances between $255.01 and $375, the monthly payment

is increased by 50¢ for each additional $15 or less.

$375.01 -

405 .................................... . ..$15.00

405.01 -

420 ....... . .. ..... : ..

:.

.. •., .............. 15.50

420.01 -

435 ....................,.. .. .. . .. .. .. .. .. .. 16.00

435.01 -450 .......... ... •........ •.•............ ... 16.50

450.01 -

4135 ............. .......... . ..... .. .......... 17.00

465.01 -

495 ............. . ... .. ........ ......... .. . 17.50

495.01 -

510 .......................... .. ............ 17.75

510.01 -

525 ............... ........................ 18.25

For balances over $525, the monthly payment is increased by

50¢ for each additional $15 or less.

Our Rights-Warning: We can change our credit terms at any time. We

will notify you in advance of any such changes as required by law. Our new

terms may be applied to the existing balance on your account unless pro–

hibited by law. We can limit or cancel your credit privileges. All JCPenney

credit cards belong to us, and you must return them at our request.

We give up any lien the law gives us automatically for work performed by us

or materials installed by us on real pror€rty used or expected to be used as

your principal residence. If you live in Florida, we will keep a security inter–

est in any items charged to your account, except for those items that are

considered real property under state law.

If You Move-You must notify us promptly if you move. If your new resi–

dence is in another state, our terms in that state will apply. If you move out–

side the U.S. (50 states), our standard credit account terms will apply.

Use of Information About You and Your Account-We may share infor–

mation about you with others in JCPenney activities or with a member of

JCPenney's family of companies. We may give information about you and

your account to others when required or permitted by law. For business

purposes, we may give information about your account to credit bureaus

and others.

Advertisements and Solicitations-We send advertisements with billing

statements, in separate mailings, and by telephone solicitation, which you

agree to receive. However, you can tell us at the credit desk in any JCPen–

ney store or by sending a note to the Credit Service Center address shown

on your billing statement, that you do not want to receive these advertise–

ments and telephone solicitations.

continued on next page

JCPenney

379