Home Equity Line of Credit

This disclosure contains important information about your Home Equity Credit Account (Account). You should read it carefully and keep a copy for your records.

Availability of Terms
All of the terms described below are subject to change. If any of these terms change (other than the ANNUAL PERCENTAGE RATE) and you decide, as a result, to not enter into an agreement with us, you are entitled to a refund of any fees that you paid in connection with your application.

Security Interest
We will take a deed of trust on your home. You could lose your home if you do not meet the obligations in your agreement with us.

Possible Actions
We may take the following actions with respect to your Account under the circumstances listed below:

Termination and Acceleration
We may terminate your Account and require you to pay us the entire outstanding balance immediately, and charge you certain fees if any of the following happen:

i) You engage in any fraud or material misrepresentation in connection with your Account. For example, if there are false statements or omissions on your application or financial statements.

ii) You do not meet the repayment terms of the Account.

iii) Your action or inaction adversely affects the collateral or our rights in the collateral. For example, if you fail to: maintain insurance, pay taxes, transfer title to or sell the collateral, prevent the foreclosure of any items, or waste of the collateral.

Suspension of Credit/Reduction of Credit Limit.
We may refuse to make additional advances on your line or reduce your credit limit during any period in which the following exist or occur:

Any of the circumstances listed in Termination and Acceleration, above.
The value of your dwelling securing the Account declines significantly below its appraised value for purposes of the Account.
We reasonably believe that you will not be able to meet the repayment requirements of the Account due to a material change in your financial circumstances.
You are in default under any material obligation of your Account.
All of your obligations under the Account (Agreement and Deed of Trust) are material to maintaining this Account. The categories of your obligations are set forth in the following paragraphs of these Agreements:

Home Equity Credit Account Agreement. 1. Promise to Pay; 2. Account Access; 3. Loan Payments; 5. Security Requirements; 9. Other Charges and Closing Costs; and 11. Possible Credit Union Actions.

Deed of Trust. 3. Payment and Performance; 4. Possession and Maintenance of the Property; 5. Indemnity; 6. Due on Sale; 7. Taxes and Liens; 8. Property Damage Insurance; 10. Warranty/Defense of Title; 11. Condemnation; 12. Imposition of Taxes; 13. Security Agreement; 14. Further Assurances/Attorney in Fact; 16. Possible Actions of Lender; 20. Attorney Fees; and 25. Miscellaneous Provisions.

The maximum ANNUAL PERCENTAGE RATE under your Account is reached.
Any government action prevents us from imposing the ANNUAL PERCENTAGE RATE provided for or impairs our security interest such that the value of the interest is less than 120 percent of the credit line.
We have been notified by government agency that continued advances would constitute an unsafe and unsound practice.
Change in Terms.
The Agreement permits us to make certain changes to the terms of the Account at specified times or upon the occurrence of specified events.

Minimum Payment Requirements
You can obtain credit advances for six (6) years (the "draw period"). Upon expiration of the original draw period, we reserve the right to extend or provide any renewal draw periods. During the draw period payments will be due monthly. Payments will be calculated after each credit advance, and will be equal to 1.25%, 1.5%, or 1.75% of the outstanding balance, depending on your employment and residential status, current debt, past credit experience, and other factors we deem appropriate, and will be not less than $25.00 or the remaining balance whichever is less. After the draw period ends, you will no longer be able to obtain credit advances and must repay the outstanding balance (the "repayment period"). During the repayment period payments will be due monthly. Your minimum monthly payment will be equal to 1.25%, 1.5%, or 1.75% of the outstanding balance, depending on your employment and residential status, current debt, past credit experience, and other factors we deem appropriate, and will be not less than $25.00 or the remaining balance whichever is less. Any increase or decrease in the ANNUAL PERCENTAGE RATE will affect the number of payments.

Minimum Payment Example
If you took a single $10,000 advance at an ANNUAL PERCENTAGE RATE of 6.125% (the most recent index plus margin shown in the historical table) and made only the minimum monthly payments, it would take 267 months to pay off your account, if your minimum payments were 1.5% of the outstanding balance. During that period you would make 181 monthly payments ranging from $150.00 to $25.04, 85 monthly payments of $25.00, and a final payment of $18.60.

Fees and Charges
In order to open and maintain the line, you must pay certain fees and charges.

Third Party Fees
You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. In addition, you must carry insurance on the property that secures this Account. The amount of these fees depends on the amount of the line of credit, and generally total between $625.31 $787.46. For example, on a $10,000 line of credit/equity loan the following estimated fees must be paid to third parties:

Appraisal Fee: $ 375.00
Title Insurance: $ 87.07 $162.15 (varies depending on amount of the line of credit)
Recording Fee: $ 30.24
Reconveyance Fee: $ 64.00
Flood Hazard Determination: $ 20.00
Tax Tracking Fee: $ 55.00
Credit Union Fees
You agree to pay an Origination Fee of 1% of the credit limit with a $500 minimum at closing.

Minimum Draw Requirement
There is a minimum draw requirement of $250.

Tax Deductibility
You should consult a tax advisor regarding the deductibility of interest and charges under the plan.

Annual Percentage Rate
Your Account has a variable rate feature and the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) may change as a result. The ANNUAL PERCENTAGE RATE includes only interest and not other costs. An increase or decrease in the ANNUAL PERCENTAGE RATE will affect the number of monthly payments for your Account.

Variable Rate Features
Determining the Rate
The Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE for each billing period is variable, and is figured on the following basis. The Periodic Rate and corresponding ANNUAL PERCENTAGE RATE for variable rate line of credit loans are based upon an index which is the monthly average of the One Year Treasury Bill (Constant Maturity) Auction Rate as published in The Wall Street Journal (Western Edition). The Credit Union adds a margin to the index. The amount of the margin varies depending on the loan type, and may also be based on your employment and residential status, current debt and your past credit experience, and other factors we deem appropriate. A range of the margins we add to the index for various loan types, and the Periodic Rates and ANNUAL PERCENTAGE RATES currently offered by the Credit Union is set forth in the Loan Rate Schedule. To determine the ANNUAL PERCENTAGE RATE, we take the index plus the margin amount the Credit Union adds, and round up to the nearest one eighth percent (.125%). The ANNUAL PERCENTAGE RATE includes only interest and not other costs. The ANNUAL PERCENTAGE RATE is divided by 365 to produce the daily Periodic Rate. The margin added to the Periodic Rate and corresponding ANNUAL PERCENTAGE RATE for your loan account will be shown the Advance Voucher provided to you before or at the time of your account opening.

Rate Change
Depending on the loan you select, the ANNUAL PERCENTAGE RATE will be adjusted either annually or every five (5) years. The adjustment date will be disclosed on the Advance Voucher at the time of your account opening. The ANNUAL PERCENTAGE RATE will in no event be higher than 18.0% or the maximum rate allowed by law, or fall below 5.0% over the life of the loan. Any increase or decrease in the ANNUAL PERCENTAGE RATE will affect the number of payments you will make under the Agreement. However, if the amount of the monthly payment is not enough to pay at least the FINANCE CHARGES accruing during the month and amounts advanced for insurance premiums, if applicable, we may increase your monthly payment in an amount sufficient to pay those amounts.

Maximum Rate and Payment Examples
If you had an outstanding balance of $10,000 at the beginning of your Account, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $150.00. This ANNUAL PERCENTAGE RATE could be reached during the second year of the draw period. If you had an outstanding balance of $10,000 at the beginning of the repayment period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $150.00. This ANNUAL PERCENTAGE RATE could be reached during the second year of the repayment period.

Historical Example
The following table shows how the ANNUAL PERCENTAGE RATE and the minimum monthly payments for a single $10,000 credit advance on a home equity line of credit would have changed based on changes in the index over the last 15 years. The index values are calculated as of the first day of July each calendar year. While only one payment amount per year is shown, payments may have varied during each year. The table assumes that no additional credit advances were taken, that only the minimum payment was made each month, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments would change in the future.