Home Equity Visa

This disclosure contains important information about your VISA Home Equity 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:

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.
You do not meet the repayment terms of the Account.
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.
Visa Home Equity Account Agreement.

1. You Promise to Pay;
2. Account Line;
3. Loan Payments;
5. Security Requirements;
9. Other Charges and Closing Costs;
13. Possible Credit Union Actions; and
14. Credit Information/Financial Statements.

Deed of Trust.

3. Payment and Performance;
4. Possession and Maintenance of the Property;
5. Indemnity;
6. Due on Sale;
7. Leases;
8. Taxes and Liens;
9. Property Damage Insurance;
11. Warranty/Defense of Title;
12. Condemnation;
13. Imposition of Taxes;
14. Security Agreement;
15. Further Assurances/Attorney in Fact;
17. Possible Actions of Lender;
21. 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% 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 advances for five (5) years (the "draw period"). The Credit Union reserves the right to extend the draw period for an additional five (5) years. During the draw period, payments will be due monthly. Your minimum monthly payment will be equal to 2.00% of the outstanding balance or $200.00, whichever is greater. 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 2.00% of the outstanding balance or $200.00, whichever is greater. Any increase or decrease in the interest rate will affect the amount of the payments. The length of the repayment period will be no more than fifteen years.

Minimum Payment Example.
If you took a single $10,000.00 advance at an ANNUAL PERCENTAGE RATE of 6.75% (the most recent index plus margin shown in the historical table) and made only the minimum monthly payments, it would take 59 months to pay off your account. During that period you would make 58 monthly payments of $200.00 and 1 payment of $174.98.

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

Credit Union Fees.
The following fees must be paid to us:

Annual Fee: $20.00 annual maintenance fee. This fee is charged on the anniversary of the date the account was opened.
Loan Setup Fee: You agree to pay an Origination Fee of 1% of the credit limit with a $500 minimum at closing.
Property Insurance: If you fail to maintain satisfactory insurance on the property, we will purchase insurance and charge the cost of the insurance to your account.
Overlimit Fee: An overlimit fee of 1% of the over limit amount (minimum $5.00) may be assessed against your account.
Third Party Fees.
You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. You must carry insurance on the property that secures this Account. The amount of these fees depends on the amount of the loan advance. For a line of credit of $10,000.00, these fees generally total $585.44. For example, on a $10,000.00 line of credit/equity loan the following estimated fees must be paid to third parties:

Appraisal Fee: $375.00
Title Insurance: $ 97.29 for a $10,000.00 line of credit/equity loan
Recording Fee: $ 33.24
Reconveyance Fee: $ 64.00
Flood Zone Determination: $ 20.00
Tax Transfer Fee: $ 55.00

Minimum Draw Requirement.
There is no minimum amount for purchases on your VISA account. There is a minimum draw requirement of $250.00 for cash advances on your VISA account.

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

Annual Percentage Rate.
Variable 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 amount of the monthly payments for your account.

Determination of Rate.
The Periodic Rate and corresponding ANNUAL PERCENTAGE RATE are based upon an index which is the average of the 11th District Federal Home Loan Bank Average cost of funds Index and the London Interbank Offered Rate (LIBOR) as published by the Wall Street Journal five (5) business days prior to the Change Date rounded to the nearest 1/4%. The Credit Union adds a margin to the index. The total of the index plus the margin amount the Credit Union adds is the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE is divided by 365 to produce the daily Periodic Rate. The margin and the current ANNUAL PERCENTAGE RATE amount will be shown on the Advance Voucher at the time the Account is opened. The ANNUAL PERCENTAGE RATE will be adjusted on March 1, June 1, September 1 and December 1 of each year. The ANNUAL PERCENTAGE RATE will in no event be higher than 18% or the maximum allowed by law over the life of the loan.

Maximum Rate and Payment Example.
If you had an outstanding balance of $10,000.00 at the beginning of your Account, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18% would be $200.00. This ANNUAL PERCENTAGE RATE could be reached during the second quarter of the draw period.

Historical Example.
The following tables show how the ANNUAL PERCENTAGE RATE and the minimum monthly payments for a single $10,000.00 credit advance on equity lines of credit and equity loans under this Account 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 year. While only one payment amount per year is shown, payments would have varied slightly 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.

Year	Index (%)	Margin (%)*	Annual Percentage Rate (%)	Minimum Monthly Payment ($)
1988	7.75	4.50	12.25	200.00
1989	9.25	4.50	13.75	200.00
1990	8.25	4.50	12.75	200.00
1991	6.75	4.50	11.25	200.00
1992	4.50	4.50	9.00	200.00
1993	3.50	4.50	8.00	200.00
1994	4.25	4.50	8.75	-
1995	5.75	4.50	10.25	-
1996	5.25	4.50	9.75	-
1997	5.25	4.50	9.75	-
1998	5.25	4.50	9.75	-
1999	4.75	4.50	9.25	-
2000	6.00	4.50	10.50	-
2001	4.25	4.50	8.75	-
2002	2.25	4.50	6.75	-

* This is a margin we have used recently.