Important Terms of Your 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 representation 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:

• Any of the reasons mentioned above exist.
• 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 60 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. During the Draw Period, your minimum payment will equal the (i) the greater of $ 100.00 or (ii) total of (a) the periodic finance charges, and other fees, charges and costs including without limitation, any other expenses or advances incurred by us under the Security Instrument; and (b) accrued but unpaid interest for prior Billing Cycles.

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 and other fees, charges and costs.

Minimum Payment Example: If you received an Advance of $10,000 and made only the minimum monthly payments and took no other credit advances, it would take the following amount of time to repay this loan. This example assumes a minimum monthly payment of $100, but your minimum monthly payment may be a different amount. For a 5-year Draw Period followed by a 20-year Repayment Period, it would take 300 months to pay off a credit advance of $10,000 at an Annual Percentage Rate of 12.75%. During that period, you would make 60 monthly payments of $106.25 followed by 240 monthly payments between $115.38 and $116.48.

Property Insurance: You must carry insurance on the property that secures this plan. If the property is located in a Special Flood Hazard Area, we will require you to obtain flood insurance if it is available. You may select the insurance company of your choice, provided the company and coverage meet our requirements.

Fees and Charges: To open and maintain a line of credit, you must pay the following fees to us:

Fees Due at Closing:

Origination Fee: Up to 4.875% of the credit limit, payable at account opening. The fee you pay may vary based on certain factors such as your property state or applicable state law.

Fees Due During the Term of the Agreement:

Annual Fee: A fee of up to $500.00 due annually during the draw period in order to continue this Line of Credit.

Third Party Fees: You also must pay certain fees to third parties to open a line.

Other third party fees generally total between $0 and $4500. If you ask, we will give you an itemization of the fees you will have to pay to third parties.

REFUNDABILITY OF FEES: If you decide not to enter into this plan within three days of receiving this disclosure and the home equity brochure, you are entitled to a refund of any fee you may have already paid.

Minimum Draw and Balance Requirements: You must take an Initial Advance of at least eighty-five percent (85%) of the credit limit at closing. For all subsequent Advances, the minimum Advance is $50.00, or such higher amount as required by applicable law. For example, if your property is a homestead in Texas, the minimum subsequent Advance is $4,000.00.

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 Annual Percentage Rate can change monthly. The maximum Annual Percentage Rate that can apply is 18.000%. The minimum Annual Percentage Rate that can apply will be set at the time of account closing and will be equal to the index plus margin in effect on the date of closing. Except for these maximum ("ceiling") and minimum ("floor") "caps," there is no limit on the amount by which the Annual Percentage Rate can increase or decrease during any one-year period or any other time period.

Maximum Rate and Payment Examples: If you had an outstanding balance of $10,000 during the draw period, the minimum monthly payment at the maximum APR of 18.000% would be $150.00 (interest only). This APR could be reached during the first month of the draw period.

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 payments were made each month, 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.

*This is a margin that we have used recently.