Personal Credit Cards

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1 Client Notice Personal Credit Cards > Changes to pricing > Changes to the cardholder agreement Effective July 17, 2017

2 At National Bank, our priority is helping you choose solutions geared to your needs and keeping you informed of any changes to the services we offer. On July 17, 2017, changes will be made to the pricing and cardholder agreement. You will find the details of these changes presented below, along with advice to help you adopt good habits for managing credit. Please note that some of the changes may not affect you, depending on your current credit card use. The following changes impact the World Elite Mastercard credit card, including cards associated with a financial package or partner. l For more information Discover our tips and advice nbc.ca/changes Take advantage of our expertise Set up a meeting at a branch nbc.ca/find-us

3 Changes to pricing 1. Reduction in fees for cash advances made outside Canada Fees for cash advances made at other financial institutions* outside Canada will be reduced. Fees for cash advances (per transaction) Until July 16, 2017 Effective July 17, 2017 Other financial institutions* outside Canada $5.00 $3.50 * Part of the Mastercard network or Cirrus network. Tips and advice Peruse our articles on credit How do you use credit wisely? What steps can you take to keep your debt to a minimum? To learn more about credit cards and good habits to adopt, consult our series of related articles by visiting nbc.ca/advice.

4 2. Changes to the calculation of conversion fees The calculation of conversion fees on transactions made in foreign currencies is changing (with the exception of ATM transactions). Fees of 2.5%, currently applied to the amount in US dollars, will now be applied to the amount converted to Canadian dollars. Every foreign currency transaction (other than in USD) is first converted to US dollars at the exchange rate set by Mastercard Worldwide. > Calculation until July 16, 2017: amount in US $ x 2.5% > Calculation effective July 17, 2017: amount converted to CA $ x 2.5% Tips and advice View your transactions and pay your bills online Regularly monitor your account and make your payments directly online through our Digital Banking Solutions. To sign up, go to nbc.ca/online. Take advantage of our expertise Our advisors can guide you to the solutions that suit you best, based on your goals and needs.

5 3. Changes to the increased rates The terms regarding the application of the increased rates are changing. In order to ensure you always benefit from your credit card s regular interest rates, you need to make the minimum payment each month. Annual interest rates Until July 16, 2017 Effective July 17, 2017 The interest rates will increase when the minimum payment is not made by the due date indicated on the statement a. for 2 consecutive months or b. 3 times during any 12-month period. a. twice during any 12-month period. Tips and advice Settle your minimum payment Always make at least the minimum payment on your credit card. Avoid late payments by signing up for the preauthorized debit service. To sign up today, go to nbc.ca/preauthorized and click on Pre-authorized Debit.

6 Changes to the cardholder agreement Effective July 17, 2017, the cardholder agreement will be amended. The existing and amended clauses are shown below. Credit limit Addition to Clause 6 effective July 17, Overlimit We may refuse any transaction that would result in an overlimit. At our discretion, we may authorize an overlimit but such an authorization does not constitute an increase of the credit limit. Overlimit fees* will be charged once per statement period if your balance exceeds your credit limit on the billing date. Please refer to the cost of borrowing statement provided with this agreement, or any subsequent notice to this effect, for the amount of the overlimit fee. If we allow an overlimit, you must repay the amount exceeding the credit limit at the latest by the due date indicated on the monthly statement. * Overlimit fee does not apply to the World Elite Mastercard credit card.

7 Interest Until July 16, Increased rates The annual interest rates will be increased as indicated in the cost of borrowing statement provided at the issuance of the credit card or a subsequent notice. The annual rate will increase when the minimum payment is not made by the due date indicated on your statement: a. for 2 consecutive months; or b. 3 times during any 12-month period. Any missed payment which occurs during a 12-month period is counted, even if the missed payment has already been counted to increase the rates in the past or has occurred during such a period. The increased rates will take effect on the 3rd statement period following the missed payment that caused the rates to increase. These increased rates will apply to your credit card account balance until you make the minimum payment by the due date for a period of 9 consecutive months. For some credit cards, this period may be shorter. Please refer to the cost of borrowing statement provided with the card for details. After this period, the regular interest rates indicated in the cost of borrowing statement or any subsequent notice will apply. Effective July 17, Increased rates The annual interest rates will increase as indicated in the cost of borrowing statement provided at the issuance or a subsequent notice. The interest rates will increase when the minimum payment is not made by the due date indicated on your statement twice during any 12-month period. Any missed payment during a 12-month period is counted, even if the missed payment has already

8 been counted to increase the rates in the past or has occurred during such a period. The increased rates will take effect on the 3rd statement period following the 2nd missed payment and will apply to your account balance until the minimum payment is made, by the due date indicated on the monthly statement, for 9 consecutive months. After this period, the regular rates will apply, regardless of whether a promotional or reduced rate was in effect prior to the rate increase. Payment of your credit card account Until July 16, Minimum payment You can make a full or partial payment of the balance of your credit card account at any time. However, you must make the minimum payment by the due date indicated on your statement. The minimum payment due represents: > For a balance of $10 and more: 3% of the credit card account balance or $10, whichever amount is higher. > For a balance under $10: the entire credit card account balance. In case of a partial payment, interest will be calculated as described in section 8 of this agreement Overdue payment An overdue payment is added to the minimum payment due for a given month. If amounts are charged to the credit card account in breach of the provisions of this agreement, the minimum payment due will be (a) 3% of the account balance or (b) the amount charged to the credit card account in breach of the provisions of this agreement, whichever is higher.

9 Effective July 17, Minimum payment (includes clause 10.2) You can make a full or partial payment of the account balance at any time. However, you must make the minimum payment by the due date indicated on your statement. The minimum payment due represents: > For a balance of $10 and more: 3% of the credit card account balance plus any overdue payment or $10, whichever amount is higher. > For a balance under $10: the entire credit card account balance. If you exceed your credit limit, the amount of the minimum payment due will be the highest of the following amounts: a. 3% of the account balance or b. the amount of the overlimit. In case of a partial payment, interest will be calculated as described in section 11 of this agreement. Foreign currency transactions Until July 16, Foreign currency transaction Foreign currency transactions appear on your statement in Canadian dollars. A transaction in US dollars is converted into Canadian dollars at the exchange rate established by Mastercard Worldwide, marked up by 2.5%. A foreign currency transaction, other than in US dollars, is first converted into US dollars using the exchange rate established by Mastercard Worldwide. This amount is then converted into Canadian dollars at the exchange rate established by Mastercard Worldwide, marked up by 2.5%. The applicable exchange rate is the exchange rate in effect on the date the transaction appears on your statement whether it consists of a debit or a credit. However, the exchange rate applicable to a debit or a credit may be different.

10 Effective July 17, Foreign currency transactions A foreign currency transaction appears on your statement in Canadian dollars. A transaction in US dollars is first converted in Canadian dollars at the exchange rate set by Mastercard Worldwide. A fee of 2.5% will then be charged on the amount converted in Canadian dollars. A foreign currency transaction (other than in US dollars) is first converted in US dollars at the exchange rate set by Mastercard Worldwide. This amount is then converted to Canadian dollars at the exchange rate set by Mastercard Worldwide. A fee of 2.5% will then be charged on the amount converted in Canadian dollars. The applicable exchange rate is the rate in effect at the time the transaction is posted to your statement, whether it consists of a debit or a credit. The exchange rate applicable to a debit or a credit may however be different. The exchange rate posted to your statement may be different from the rate in effect on the day of the transaction. You may refuse these changes, without cancellation indemnity, by closing your account and sending us a notice no later than August 16, Your account will be closed on the date we receive your notice. You must pay the amounts due until the account balance has been paid in full. Mastercard, World Elite and Cirrus are registered trademarks of Mastercard International Inc. Authorized user: National Bank of Canada (2017/03)