Terms & Conditions of 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 the ANNUAL PERCENTAGE RATE) and you decide not to enter into an agreement with us, you are entitled to a refund of any fees you paid to us or anyone else 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: 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 in 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 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 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.
• A regulatory agency had notified us that continued advances would constitute an unsafe and unsound business practice.
• The maximum annual percentage rate 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.

Changes in Index and Margin: We can change the index and margin used under the plan if:

• The original index is no longer available; and
• The new index has a historical movement substantially similar to the original index; and,
• The new index and margin would have resulted in an interest rate substantially similar to the rate in effect at the time the original index became unavailable.

Minimum Payment Requirements:

You can obtain credit advances for 120 months for Home Equity Lines of Credit under $250,000 or 60 months for Home Equity Lines of Credit $250,000 and greater (Advance Period) with a total loan-to-value ratio of 80%. During the Advance Period, payments will be due on a monthly basis and your minimum monthly payment will equal the finance charge (interest) that accrued on the outstanding balance during the preceding month. Your payments could also include any past due amounts and any other applicable charges. If your rate increases, you will be required to make a higher payment.

Your minimum payment during the Advance Period will NOT decrease the principal balance of your account.

After the Advance Period ends, you will no longer be able to obtain credit advances and your Repayment Period will begin. During the Repayment Period, payments will be due on a monthly basis and your minimum monthly payment will be calculated according to the terms of the Home Equity Line of Credit Agreement and Disclosure Statement. The length of the Repayment Period will be based on an amortization of your balance at the start of this Repayment Period, not to exceed 180 months. Your payments will be in an amount necessary to fully amortize your then outstanding account balance no later than the Agreement Maturity Date.

Minimum Payments Examples:

Loan amount under $250,000.00

• If you made only the minimum payment and took no other credit advances, it would take 25 years to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 8.640%. During that period, you would make 120 monthly payments ranging from $66.28 to $73.38. Then you would make 180 monthly payments ranging from $25.00 to $133.38.

Loan amount at least $250,000.00

• If you made only the minimum payment and took no other credit advances, it would take 20 years to pay off a credit advance of $250,000 at an ANNUAL PERCENTAGE RATE of 8.150%. During that period, you would make 60 monthly payments ranging from $1,563.01 to $1,730.48. Then you would make 180 monthly payments ranging from $25.00 to $3,230.48.

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

Flood Insurance: Flood insurance will be required if your home is located in a federally designated flood hazard area in a community participating in the National Flood Insurance Program.

Fees and Charges: To open a line of credit, you may be required to pay certain fees and charges.

Late Charge. If you do not make a full payment within 10 days after the date it is due, we will charge a late fee of 5.000% of the scheduled payment of principal and interest.

Third Party Fees. You may be required to pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies.

These third party fees generally total between $0.00 and $750.00.

Minimum Advance Requirements: We will advance exactly the amount you request as long as it is a minimum amount of $100.00.

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

Variable-Rate Feature: This plan has a variable rate feature and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The annual percentage rate includes only interest and not other costs. The annual percentage rate is based on the value of an index. The index is the base rate on corporate loans posted by at least 70% of the ten largest U.S. banks known as the Wall Street Journal U.S. Prime Rate. To determine the annual percentage rate that will apply to your account, we add a margin to the value of the index.

If offered and you qualify, the initial annual percentage rate may be discounted meaning it is not based on the index and margin used for later rate adjustments. The initial rate will be in effect for the discounted period.

Ask us for the current index value, margin, and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements we send you.

Rate Changes: The annual percentage rate can change monthly. There is no limit on the amount by which the rate can change in any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply during the plan is 25%.

Maximum Rate and Payment Examples: If the ANNUAL PERCENTAGE RATE during the Advance Period equaled the 25% maximum and you had an outstanding balance of $10,000:

• Advance Period. The minimum monthly payment would be $205.48. The maximum annual percentage rate could be reached immediately or prior to the 1st payment.


• Repayment Period. The minimum monthly payment would be $265.48. The maximum annual percentage rate could be reached at the time of the 1st payment during the repayment period.

Historical Examples: The following table shows how the annual percentage rate and the minimum payments for a single $10,000 credit advance would have changed based on changes in the index over the last 15 years. The index values are from the first business day in July. While only one payment amount per year is shown, payments under the payment option would have varied during each year. The table assumes that no additional credit advances were taken, that only the minimum payment was made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the future.