Important Terms of our Home Equity Line of Credit

This disclosure contains important information about our Home Equity Line of Credit. 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 these terms change (other than Annual Percentage Rate ("APR")) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you paid to us or anyone in connection with your application.

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

Possible Actions: Under certain circumstances, we can terminate your line, require you to pay us the entire outstanding balance in one payment, and charge you certain fees if:

• You engage in fraud or material misrepresentation in connection with the line.

• You do not meet the repayment terms.

• Your action or inaction adversely affects the collateral or our rights to the collateral.

We can refuse to make additional extensions of credit or reduce your credit limit if:

• The value of the dwelling securing the line declines significantly below its appraised value for the purposes of the line.

• We reasonably believe you will not be able to meet the repayment requirements due to a material change in your financial circumstances.

• You are in default of a material obligation in the agreement.

• Government action prevents us from imposing the APR provided for or impairs our security interest such that the value of the interest is less than 120 percent of the credit line.

• A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice.

• The maximum APR is reached.

The initial agreement permits us to make certain changes to the terms of the agreement at specified times or upon the occurrence of specified events.

Minimum Payment Requirements: You can obtain advances of credit for 120 months (the "draw period"). During the draw period, payments will be due monthly. Your minimum monthly payment will be due and payable on the date shown on the monthly statement.

After the draw period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance over 240 months (the "repayment period"). During the repayment period, payments will be due monthly. Your minimum monthly payment will equal 1/240 of the balance that was outstanding at the end of the draw period plus the finance charges that have accrued on the remaining balance.

Minimum Payment Example: If you took a single $10,000 advance and the ANNUAL Percentage Rate was 6.75%, it would take 360 months to pay off the advance if you made only the minimum payments. During that period, you would make 120 interest only payments of$56.26 followed by 240 principal & interest payments varying between $76.04 and $75.61.

Property Insurance: You must carry insurance on the property that secures this plan.

Fees and Charges: There are no fees associated with the opening and servicing of the Credit Line.

Third Party Fees: Third party fees typically range between $300 and $3500. Fees vary depending on the location of the property, property type and amount of the Credit Line. If you ask, we will provide an Itemized list of the fees you will have to pay to third parties.

Minimum Draw and Balance Requirements: Your Line of Credit has no required minimum advance amount.

Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line.

Variable-Rate Information: The line has a variable-rate feature, and the APR (corresponding to the periodic rate) and the minimum payment can change as a result.

The APR includes only interest and not other costs.

The APR is based on the value of an index. The index is the Prime Rate published in the Money Rates column of The Wall Street Journal. To determine the APR that will apply to your line, we add a margin to the value of the index.

Ask us for the current index value, margin, discount or premium, and APR. After you open a credit line, rate information will be provided on periodic statements that we will send you.

Rate Changes: The APR can change monthly. The maximum APR that can apply is 18.000%. The minimum (lifetime floor rate) APR that can apply is 4.00%. Except for these "caps," there is no limit on the amount by which the rate can change during any one-year period.

Maximum Rate and Payment Examples: If you had an outstanding balance of $10,000 the minimum Payment at the maximum APR of 18.000% would be $150.02. The maximum ANNUAL PERCENTAGE RATE could be reached during the first month of the Draw Period. The minimum ANNUAL PERCENTAGE RA TE that can apply during the Line of Credit is 4.000%.

If you had an outstanding balance of $10,000 during the repayment period, the minimum monthly payment at the maximum APR of 18.000% would be $191. 67. This APR could be reached during the first month of the repayment period.

Historical Example: The following table shows how the APR and the minimum monthly payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The index values are from January of each year. While only one payment amount per year is shown, payments would have varied during each year.

The table assumes that no additional credit advances were taken, that only the minimum interest only payments were made each month during the Draw Period, that only the minimum Principal and Interest payments were made each month during the Repayment Period, that no fees and charges other than interest were imposed, and that the rate remained constant during each year. It does not necessarily indicate how the index, the Annual Percentage Rate, or your payments will change in the future.

*This is a margin we have used recently, your margin may be different.
**This rate reflects the lifetime rate floor of 4.00%.