Common use of Maximum Credit Amount Clause in Contracts

Maximum Credit Amount. Any use of credit established in Section 2 is subject to a credit limit, which is indicated on every account statement. Either limit may be increased, at the Federation’s discretion, upon request from the cardholder, or decreased if the Federation deems it appropriate after analyzing the cardholder’s file. Any cash advance, cheque or purchase which results in the applicable credit limit being exceeded shall be regarded as a request to increase the credit limit to the maximum amount that can then be granted to the cardholder, taking into consideration the applicable credit granting standards. The Federation has no obligation to allow the cardholder to exceed his credit limit, even if it has done so in the past. The cardholder understands that the Federation may decide not to authorize any transaction that will result in the cardholder’s credit limit being exceeded or that takes place after the credit limit has been exceeded. The cardholder is liable for the entire balance, whether or not it exceeds the credit limit. The cardholder agrees to repay forthwith on demand any amount that exceeds the credit limit.