This disclosure contains important information about our Home Equity Line of Credit. You should read it carefully and keep a copy for your records. Ask us about our other Home Equity Line of Credit products.

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, as a result, 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 security interest in 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 and require you to pay us the entire outstanding balance in one payment 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 in the agreement;
• Government action adversely affects the priority of our security interest to the extent that the value of the security 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 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.

Minimum Payment Requirements: You can obtain advances of credit for 10 years. You must pay the balance on your account during the same 10 years. During that period, your payments will be due monthly.

Your minimum monthly payment will consist of interest only,
plus amounts past due and late fees, if any.

The minimum monthly payment will not repay the principal that is outstanding on your line. At the end of 10 years, you will then be required to pay the entire balance in a single “balloon” payment.

Minimum Payment Example:

If you took a single $10,000 advance and the ANNUAL PERCENTAGE RATE was 8.75%, during the 10-year term of your loan: You would make 119 payments of $72.92 and 1 payment of $10,072.92.

Fees and Charges: To open and maintain a line of credit, you must pay certain fees to third parties. These fees generally total between $    0    and $    *    . If you ask, we will give you an itemization of the fees you will have to pay to third parties. You must carry insurance on the property securing this loan.

Minimum Draw Requirements: None.
Tax Deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line.

Variable-Rate Feature: The line 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 no other costs. The annual percentage rate 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 on the last business day of the month. To determine the annual percentage rate that will apply, we add a margin to the value of an index. 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 that we will send you.

Rate Changes: The annual percentage rate can change each month, but will not be lower than 5.00% APR. The maximum ANNUAL PERCENTAGE RATE that can apply is 20.04%. Except for this "cap," 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, your largest minimum monthly payment at the maximum ANNUAL PERCENTAGE
RATE of 20.04% would be $167.00. This maximum rate could be reached during the first month of the line.

Historical Example: 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 the index over the past 15 years. The index values are from the last business day in July 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 monthly payment was made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payment will change in the future.