USER GUIDE FOR HOME EQUITY LENDING - CUNA Mutual Group

USER GUIDEFORHOME EQUITY LENDINGEML487

USER GUIDE FORHOME EQUITY LENDINGCOPYRIGHT © CUNA MUTUAL INSURANCE SOCIETY, 1989, 1992, 98, 2003, 04, 06, 07, ALL RIGHTS RESERVED.REPRODUCTION WITHOUT WRITTEN PERMISSION OF CUNA MUTUAL INSURANCE SOCIETY IS FORBIDDEN BY LAW.

LOANLINER ® HOME EQUITY SYSTEMINTRODUCTIONThis LOANLINER ® User Guide for Home Equity Lending is designed to helpyou completely understand the purpose, design and use of the LOANLINER ®Home Equity System. It provides extensive information explaining the useLOANLINER ® documents for home equity loans.To help you use this Guide and efficiently find the information you need,we’ve divided it into the following sections:Section A. User Guide for the LOANLINER ® Home Equity SystemOpen-end Lending DocumentsContains detailed descriptions and examples of the LOANLINER ® documentsyou will use to establish an open-end line of credit home equity account.Includes when and how to use specific documents. A tab for supplementalTexas open-end lending information is included in this section.Section B. User Guide for the LOANLINER ® Home Equity SystemClosed-end Lending DocumentsContains detailed descriptions and examples of the LOANLINER ® documentsyou will use to make closed-end home equity loans. Includes when and how touse specific documents. A tab for supplemental Texas closed-end lendinginformation is included in this section.Section C. User Guide for the LOANLINER ® Home Equity SystemMiscellaneous DocumentsContains detailed descriptions and examples of miscellaneous Home Equitydocuments that are used with the LOANLINER ® Home Equity System.Includes when and how to use each document. A tab for supplemental Texasmiscellaneous information is included in this section.Section D. User Guide for the LOANLINER ® Home Equity SystemMEMBER’S CHOICE TM Payment ProtectionContains an overview of the benefits and enrollment procedures applicable toHome Equity loans insured with CUNA Mutual’s MEMBER’S CHOICE TMPayment Protection. Includes instructions for both open-end and closed-endHome Equity loans.

LOANLINER ® HOME EQUITY SYSTEMSection E. Glossary of TermsContains an alphabetical listing of definitions for terms used in this manualand those commonly used with Home Equity lending.Service and SupportOne of the key features of any product you use is the service and support thatgoes with it. You can rely on the CUNA Mutual Group to provide you withexcellent support and service for the LOANLINER ® lending system. You canreceive LOANLINER ® assistance by:• Calling your CUNA Mutual Account Relationship Manager at:1-800-333-2644• Contacting the LOANLINER Systems Department at:Phone: 1-800-356-5012Fax: 1-608-231-7748E-Mail:Mail:loanliner@cunamutual.comLOANLINER Systems DepartmentCUNA Mutual GroupPO Box 2991Madison, WI 53701-2991If you wish to order any of the documents described in this manual, please useany of the methods described above to place your order.CopyrightSubstantial time, effort and money has been spent to develop theLOANLINER ® Home Equity System. The system and the User Guide havebeen copyrighted. The documents and explanatory materials may not bereproduced, either in whole or in part, without written permission fromCUNA Mutual.

USER GUIDE FOR THELOANLINER ®HOME EQUITY SYSTEMOPEN-END LENDING DOCUMENTSCopyright © 1989, 1998, 2003, 04, 06, 07, CUNA Mutual Group, Madison, Wisconsin. ALL RIGHTS RESERVED.

LOANLINER ®HOME EQUITY SYSTEMOPEN-END LENDINGContentsGeneral Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Definition – Open-End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Regulation Z – Open-End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Real Estate Terms Used in Open-End Home Equity Lending . . . . . . . . . . . . . . . . . . . . 4Document Descriptions and Instructions . . . . . . . . . . . . . . . . . . . . . . . . 6Open-End Loan Officer Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Brochure – Open-End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Early Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Document Explanation - Variable Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Document Explanation - Fixed Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Credit Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Addendum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Document Explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Security Instrument (Mortgage, Deed of Trust or Security Deed) . . . 50Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Notice of Right to Cancel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Document Explanation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Advance Voucher . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Document Description. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Completion Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

General InformationGeneral InformationIntroductionThis guide is designed to help you completely understand how to use theopen-end LOANLINER ® Home Equity documents you’ve ordered. Rememberthat the documents you are using have been prepared especially for yourcredit union’s home equity plan(s). The documents and samples in this guideare only samples. Your documents may look different but the usage of thedocuments will be the same.Document Descriptions and InstructionsEach open-end LOANLINER ® Home Equity document below is described indetail in this Guide. Instructions for completing each document are included.• Open-End Loan Officer Checklist• Home Equity Brochure• Early Disclosure• Credit Agreement• Addendum• Security Instrument• Notice of Right to CancelAdditional information particular to Texas open-end lending has been addedto the guide.Additional documents may be used in connection with open-end home equityloans. See the LOANLINER ® Home Equity Miscellaneous section for moreinformation.Open-End Sample TransactionsTo show you how the forms can be used to document open-end home equityaccounts, three examples of account transactions are provided.Commonly Asked QuestionsAnswers to commonly asked questions about open-end home equity lendingare provided.Open-End Lending – 1

General InformationDefinition — Open-End Home Equity LoansRegulation Z defines “open-end credit” as “consumer credit” extended by acreditor under a plan which meets all three of the following criteria: 1) thecreditor reasonably contemplates repeated transactions, 2) the creditor mayimpose a finance charge from time to time on an outstanding unpaid balance,and 3) the amount of credit that may be extended to the consumer during theterm of the plan (up to any limit set by the creditor) is generally madeavailable to the extent that any outstanding balance is repaid.Open-end home equity loans are open-end credit plans secured by theconsumer’s dwelling. In this guide we refer to them as open-end home equitylines of credit or open-end home equity plans.Regulation Z – Open-EndThe federal Truth in Lending Act governs all consumer credit transactions.Home equity line of credit plans are covered by the Act. The regulation issuedby the Federal Reserve Board to implement the Act is “Regulation Z”.Open-End Home Equity Plan RestrictionsThe Truth in Lending Act and Regulation Z place certain restrictions on openendhome equity plans, which include:1. The creditor cannot use an internal index (i.e. cost of funds) for avariable interest rate. The index must be out of the control of thecreditor. (Regulation Z Section 226.5b(f)(1))2. The creditor can only terminate the plan and accelerate the balanceunder three circumstances (Regulation Z Section 226.5b(f)(2)):a. the borrower commits fraud or makes a material misrepresentationin connection with the plan;b. the borrower does not meet the repayment terms of the plan; orc. the borrower’s action or inaction adversely affects the collateral orthe lender’s rights in the collateral.3. The creditor can temporarily suspend advances or reduce the creditlimit only for certain reasons as outlined in Regulation ZSection 226.5b(f)(3)(vi). Otherwise, the creditor is obligated to continuemaking advances at the borrower’s request during the “draw period”which is the period of time during which the borrower can takeadvances.4. The creditor cannot change the terms of the plan once it’s opened,except for very specific circumstances. Please refer to Regulation ZSection 226.5b(f)(3) for details.2 – LOANLINER Home Equity System

General InformationDisclosure RequirementsRegulation Z requires certain disclosures for open-end home equity planssecured by a dwelling. Each of the following documents must be given to theconsumer for an open-end home equity plan. These documents are:1. Early Disclosure2. Brochure3. Initial Disclosure (referred to as Credit Agreement and Addendum)4. Right of Rescission5. Periodic StatementA creditor must give an Early Disclosure along with a brochure, “What YouShould Know About Home Equity Lines of Credit”, at the time an applicationfor an open-end home equity plan is provided to the member. The EarlyDisclosure provides information on the terms and cost of the open-end homeequity plan(s) offered by the creditor. If a creditor has more than one plan,information about each plan must be disclosed.The LOANLINER ® Open-End Home Equity Plan includes the disclosuresrequired by Regulation Z. The Early Disclosure includes, among other things,the length of the draw and repayment periods, an explanation of how theminimum payment will be determined, the fees that the consumer will have topay to open, use and maintain the plan and a minimum payment exampleshowing the payment and time it would take to repay a $10,000 balance at arecent Annual Percentage Rate.If a variable rate is used with the plan, disclosures about how and when theinterest rate will change, as well as limitations on the change, will bedisclosed. Additionally, the Early Disclosure includes a maximum rate andpayment example which discloses the maximum payment required for a$10,000 balance at the maximum Annual Percentage Rate of the plan, as wellas a statement of the earliest date that maximum rate could be imposed on theplan. All variable rate plans also contain a historical table illustrating how theAnnual Percentage Rate and payments would have been affected by indexvalue changes for the specific terms of your plan in the last 15 years. As part ofour ongoing support, CUNA Mutual will update the LOANLINER ® EarlyDisclosure annually to provide the most recent 15-year index history. You mustorder new Early Disclosures each year to take advantage of this service.Prior to the first transaction under the plan, Regulation Z Section 226.6 requiresthe creditor to give certain initial disclosures for the plan. The initial disclosuresare given in the Credit Agreement and Addendum to the Credit Agreement.They include information about the circumstances under which a financecharge will be imposed, an explanation of how it will be determined, any othercharges that may be imposed, and the fact that the creditor will take a securityinterest in the dwelling. A billing rights notice is also included along withOpen-End Lending – 3

General Informationseveral other disclosures, such as reasons for terminating the plan, taximplications, etc. The Credit Agreement and Addendum provide alldocumentation necessary to meet Regulation Z requirements.Right to RescindRegulation Z Section 226.15 requires that each consumer giving a securityinterest in his or her principal dwelling must have a right to rescind the plan.The Right of Rescission is the consumer’s right to cancel a transaction withoutpenalty. The Right of Rescission period is for three days. Each person who givesa principal dwelling as security for the Plan must receive two copies of theNotice of Right to Cancel.Security InstrumentsThe legal document used to obtain a security interest in real estate is called aMortgage, Deed of Trust, or Security Deed. The basic differences between thevarious documents concern the way title is held and how foreclosure takesplace. The security instrument is different for every state. The LOANLINER ®Home Equity System provides a security instrument which can be used foropen-end home equity loans. It is available for all states.Periodic StatementRegulation Z Section 226.7 requires that certain disclosures be made on theperiodic statement and it is very important that your data processor meetthese requirements. On all open-end home equity credit plans, the credit unionmust mail or deliver a periodic statement at least quarterly.Real Estate Terms Used in Open-EndHome Equity LendingThis section gives a nontechnical introduction to terms used in home equitylending. The terms are underscored where they first occur.The credit agreement is the legal document which includes the promise to payand all other agreements between the credit union and the borrower. TheAddendum is part of the Credit Agreement. It also gives the Truth in LendingDisclosures. The borrower promises to repay the debt by signing the CreditAgreement. The security instrument (Mortgage, Deed of Trust or SecurityDeed) gives your credit union a security interest in the borrower’s property.The borrower promises to protect your credit union’s rights in the home bysigning the security instrument. In a Mortgage, the borrower can be called amortgagor and the lender a mortgagee. In a Deed of Trust, the borrower canbe called a grantor or a trustor and the lender a beneficiary. In this guide, theborrower is called borrower and the lender is called the lender or the holderof the mortgage.4 – LOANLINER Home Equity System

Open-End Loan Officer ChecklistLoan Officer ChecklistOPEN-ENDPLAN NUMBERSHARE/SHARE DRAFT ACCOUNT NUMBERAPPLICANT’S NAMEPHONE NUMBERCO-APPLICANT’S NAMEPHONE NUMBERAPPLICANT’S ADDRESSCO-APPLICANT’S ADDRESS1APPLICATION2PRELIMINARYREVIEW3CREDIT-WORTHINESS4EQUITY5APPROVALOR DENIALOF CREDITOR6PREPAREDOCUMENTS–OPENACCOUNTOR(a, b and c given to applicant at this time)a. Applicationb. Early Disclosure/Important Terms of Your Home Equity Planc. Brochure/What You Should Know About Home Equity Lines of Credita. Date application submittedb. Application Fee (if collected)c. Debt/Income Ratiod. Credit Denied and ECOA Notice Given, or Proceed with steps belowa. Verification of Depositb. Verification of Employmentc. Verification of First Mortgaged. Residential Mortgage Credit Reporte. Verification of Debta. Appraisalb. Title Insurance or Opinion of Titlec. Flood Hazard Determinationd. Flood Notice (if applicable)a. Credit Denied and ECOA Notice Givenb. Amount of line of credit approved $____________a. Credit Agreement/Addendumb. Security Instrumentc. Notice of Right to Canceld. Insurance: Hazard Credit Disability Credit Life Floode. Automatic Payment Authorizationf. Voucher for First Advanceg. Additional Credit Union Forms:h. 3-Day Right of Rescission Time Expiredi. Right of Rescission exercisedj. Funds Disbursedk. Payment of Feesl. Security Instrument Recordedm. Letter sent to prior Mortgage Holder©CUNA MUTUAL INSURANCE SOCIETY, 1991, 2005, ALL RIGHTS RESERVEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDDATE(OPTIONAL)___ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /___EST4656 – LOANLINER Home Equity System

Open-End Loan Officer ChecklistOpen-End Loan Officer ChecklistDocument DescriptionWhen Used:The credit union may use this Checklist when processingeach open-end home equity plan.Purpose:How Distributed:This document provides a checklist that your loanofficer(s) may use in processing each open-end homeequity plan. It provides a listing of the items that shouldbe considered and the documents that must be given orreceived when processing a standard open-end homeequity plan. It takes the loan officer through eachstandard processing step when opening a home equityplan. It starts at the time the application is given to theapplicant (along with the Brochure and Early Disclosure)and ends with the closing of the plan.This document should be placed in member’s file after itis completed.No. of Parts: 1Imprinting:Special Notes:Optional - Credit union name, address, telephonenumber and logoThis document will help meet the guidelines of NCUALetter No. 124. It should be used by all your loanofficer(s) to achieve consistency and accuracy forprocessing your home equity plans. Your credit union’sloan policies should be written to cover each itemoutlined on this document.Open-End Lending – 7

Open-End Loan Officer ChecklistLoan Officer ChecklistOPEN-ENDPLAN NUMBERSHARE/SHARE DRAFT ACCOUNT NUMBERAPPLICANT’S NAMEPHONE NUMBERCO-APPLICANT’S NAMEPHONE NUMBERAPPLICANT’S ADDRESSCO-APPLICANT’S ADDRESS11APPLICATION22PRELIMINARYREVIEW33CREDIT-WORTHINESS44EQUITY55APPROVALOR DENIALOF CREDIT OR66PREPAREDOCUMENTS–OPENACCOUNTOR(a, b and c given to applicant at this time)a. Applicationb. Early Disclosure/Important Terms of Your Home Equity Planc. Brochure/What You Should Know About Home Equity Lines of Credita. Date application submittedb. Application Fee (if collected)c. Debt/Income Ratiod. Credit Denied and ECOA Notice Given, or Proceed with steps belowa. Verification of Depositb. Verification of Employmentc. Verification of First Mortgaged. Residential Mortgage Credit Reporte. Verification of Debta. Appraisalb. Title Insurance or Opinion of Titlec. Flood Hazard Determinationd. Flood Notice (if applicable)a. Credit Denied and ECOA Notice Givenb. Amount of line of credit approved $____________a. Credit Agreement/Addendumb. Security Instrumentc. Notice of Right to Canceld. Insurance: Hazard Credit Disability Credit Life Floode. Automatic Payment Authorizationf. Voucher for First Advanceg. Additional Credit Union Forms:h. 3-Day Right of Rescission Time Expiredi. Right of Rescission exercisedj. Funds Disbursedk. Payment of Feesl. Security Instrument Recordedm. Letter sent to prior Mortgage Holder©CUNA MUTUAL INSURANCE SOCIETY, 1991, 2005, ALL RIGHTS RESERVEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDCHECKWHEN STEPCOMPLETEDDATE(OPTIONAL)___ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /___DATE(OPTIONAL)___ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /______ /___ /___EST4658 – LOANLINER Home Equity System

Open-End Loan Officer ChecklistCompletion InstructionsThe following information will be helpful to the loan officer whenprocessing applications for open-end home equity plans. The Loan OfficerChecklist takes you through each step usually taken when processing anopen-end home equity plan. This information has been divided into sixsub-headings below to correspond to the checklist headings on thepreceding page.1. Application Picked Up By Applicant – At the time the applicantreceives an application for an open-end home equity plan the membermust receive one copy of each of the following:a. Applicationb. Early Disclosure – “Important Terms of Your Home Equity Plan”required by Regulation Z Section 226.5b(d).c. Brochure – “What You Should Know About Home Equity Lines ofCredit” required by Regulation Z Section 226.5b(e).2. Preliminary Review – This section can be used to screen outapplications clearly ineligible for the LOANLINER ® Home Equity Plan.a. Date Application Submitted – Regulation B Section 202.9 requiresthat the credit union notify the applicant of the credit decisionwithin 30 days after a completed application is received.If the application is incomplete, the credit union has two options.The Official Staff Commentary for Regulation B Section 202.9(a)(1)3states: “When an application is incomplete regarding matters thatthe applicant can complete and the creditor lacks sufficient data fora credit decision, the creditor may deny the application giving as thereason for denial that the application is incomplete. The creditor hasthe option, alternatively, of providing a notice of incompletenessunder Section 202.9(c).”To meet this requirement, an Adverse Action Notice is availablethrough LOANLINER ® Lending Systems. See this Guide for moreinformation on the Adverse Action Notice.b. Application Fee (if collected) – At the time the applicant submits anapplication, your credit union may collect an “application fee”which covers the cost of the appraisal, credit report, etc. However,this fee must be refundable for three business days from the time theapplicant receives the Brochure and Early Disclosure as required byRegulation Z Section 226.5b(h). If the Brochure and Early Disclosureare mailed to the applicant, this fee must be refundable for sixbusiness days after the mailing as required by Regulation ZSection 226.5b(h)(10d).Open-End Lending – 9

Open-End Loan Officer Checklistc. Debt/Income Ratio – Your credit union should initially figure theapplicant’s debt to income ratio. NCUA Letter No. 124 requires adebt to income ratio used to qualify loan applicants be included inyour lending policies.d. Credit Denied and ECOA Notice Given – Based on the abovepreliminary steps, evaluate whether credit will be granted or denied.If credit will be denied send a copy of an Adverse Action Noticecompleted appropriately to meet Regulation B Section 202.9.If credit is not denied proceed with the following steps.3. Creditworthiness – This section will help your loan officer(s) furtherdetermine an applicant’s creditworthiness. This section precedes thesection on equity because if a member is not creditworthy, the creditunion can save the time and expense of appraising the home andconducting a title examination. If a member does not have the ability torepay, a LOANLINER ® Home Equity Plan should not be opened, nomatter how much equity a member may have in the home.a. Verification of Deposit – A “Request for Verification of Deposit”should be obtained from each depository institution the applicant(s)or other persons (co-applicant, spouse or former spouse) indicateson the application. Your credit union should have the applicant(s) orother person sign each verification of deposit before sending to thedepository institution.The “Request for Verification of Deposit” is available throughLOANLINER ® Lending Systems. For further details, please refer tothe Verification of Deposit Completion Instructions section of thisGuide.b. Verification of Employment – A “Request for Verification ofEmployment” should be obtained from each former and currentemployer indicated by the applicant(s) or other person for theperiod of time your credit union had decided you want verified. Thecredit union should have the applicant(s) or other person sign eachverification before sending to the former or current employers.The “Request for Verification of Employment” is available throughLOANLINER ® Lending Systems. For further details, please refer tothe Verification of Employment Completion Instructions section ofthis Guide.c. Verification of First Mortgage – A “Request for Verification ofMortgage” should be used to obtain direct verification of mortgagepayment history from the institution indicated on the application.Many special situations may arise. These must be evaluated by a10 – LOANLINER Home Equity System

Open-End Loan Officer Checklistperson with experience in mortgage lending. Four special situationsare mentioned here:• If the first mortgage has been paid in full and there is no othermortgage, it is not required that you complete a mortgageverification. In this situation, your credit union’s mortgage will bea “first” without being a “purchase money” mortgage. Most statestatutes regulating first mortgages assume that a first mortgage isa purchase money mortgage. Your credit union may want toobtain a mortgage verification, however, for payment historyinformation.• If the existing mortgage contains a future advance clause,amounts not yet advanced under the existing mortgage mayreduce the equity on which your credit union is relying.• If the existing mortgage contains an “escalator” clause, that is, aclause by which monthly payments may increase because of avariable rate or other alternative mortgage provisions, the applicantmay have fewer dollars with which to repay your credit union.• If the existing mortgage prohibits the applicant from taking out asecond mortgage without consent, the written consent of theholder (or servicer) of the first mortgage must be obtained.The “Request for Verification of Mortgage” is available throughLOANLINER ® Lending Systems. For further details refer to theVerification of Mortgage Completion Instructions section of thisGuide.d. Residential Mortgage Credit Report – A detailed “ResidentialMortgage Credit Report” should be obtained on each applicant orother person from a Credit Reporting Agency (Bureau). This reportshould give a detailed account of the credit, employment, andresidence history, as well as public record information, concerningeach applicant or other person.e. Verification of Debt – A “Request for Direct Credit Verification”should be used to verify any debts which do not appear on thecredit report. If there is any doubt that a debt will not be reflected onthe credit report (i.e. local department store charge account), a directcredit verification should be sent to any creditor indicated on theapplication.The “Direct Credit Verification” is available through LOANLINER ®Lending Systems. For further details refer to the Direct CreditVerification Completion Instructions section in this Guide.Open-End Lending – 11

Open-End Loan Officer Checklist4. Equity – This section discusses the steps your credit union should taketo determine the fair market value of the home and measure the equity.a. Appraisal – Obtain an appraisal to verify the value of the propertyand to determine the equity available in the property that is used assecurity. This appraisal should meet the appraisal guidelinesoutlined in the NCUA Letter No. 124 and Part 722 of the NCUARegulations on appraisals.b. Title Insurance or Opinion of Title – Obtain a title examination (titleinsurance or opinion of title) to verify your lien priority. Some titleinsurance companies offer variable rate and revolving creditendorsements to protect the credit union from specified risks.c. Flood Hazard Determination – For every loan made by a creditunion (federally chartered or state chartered, federally insured)which is secured by a building or mobile home, the credit unionmust use a standard Flood Hazard Determination to determinewhether the secured property is or will be located in a special floodhazard area (SFHA). Either the credit union or a vendor maycomplete the document. For further details refer to the StandardFlood Hazard determination Completion Instructions section of thisGuide.d. Flood Insurance Notice – If it is determined that the building ormobile home securing the loan is located in a special flood hazardarea, then this notice must be provided to the borrower/owner. Forfurther details refer to the Flood Insurance Notice CompletionInstructions section of this Guide.5. Approval or Denial of Credit – Based on all the information receivedfrom the above steps evaluate whether credit will be denied orapproved. Notice must be given to the applicant within 30 days ofreceiving a completed application.a. Credit Denied and ECOA Notice Given – If credit will be deniedsend a copy of an Adverse Action Notice completed appropriately tomeet Regulation B Section 202.9.b. Amount of Line of Credit Approved – If credit is approved,determine the amount of the line of credit you will grant theapplicant(s) and notify the applicant(s), by letter or using a voucher,of the approved credit limit within 30 days of receiving thecompleted application.12 – LOANLINER Home Equity System

Open-End Loan Officer ChecklistThe following steps should be completed if a Home Equity Plan isapproved:6. Prepare Documents - Open Account – Once the determination is madeto extend credit to a member, various documents should be preparedfor closing. The member will sign the documents at closing.a. Credit Agreement and Truth in Lending Disclosure/Addendum –The Credit Agreement and Truth in Lending Disclosure (CreditAgreement) and Addendum will serve as the legal obligationbetween the credit union and the borrower(s). Together the CreditAgreement and Addendum include all of the initial disclosuresrequired under Regulation Z Section 226.6 along with thecontractual language necessary to obligate the parties (if it is aprincipal dwelling). If there are joint borrowers, only one borrowerhas to receive the Credit Agreement/Addendum. However,Regulation Z also requires that each person who is entitled torescind the transaction must also receive a copy of the CreditAgreement/Addendum.In preparing the Credit Agreement, the credit union shouldcomplete the credit insurance application. A check should be put inthe election box for each coverage offered in order to signify theborrower does or does not desire such coverage. If credit insuranceis elected, your credit union must make sure to add the premiumfor credit insurance to the principal and interest payment whencalculating the monthly payments.At closing, you should obtain the signature of the borrower(s) on thecredit insurance application. Regulation Z Section 226.4(d)(1)requires the borrower’s signature if credit insurance is elected.While Regulation Z only requires a signature if the borrower electsinsurance we recommend a signature always be obtained whetherinsurance is elected or not to avoid confusion regarding theinsurance election.In preparing the Addendum you will complete the followinginformation:1. Opening date2. Final payment date3. Credit limit4. Account number5. The borrower(s) name and address6. Address of the property securing the account7. Index rate (for variable rate plans)Open-End Lending – 13

Open-End Loan Officer Checklist8. Margin added to the index (for variable rate plans)9. Annual Percentage Rate10. Daily Periodic Rate11. Schedule of closing costs12. Finance charges (if applicable)13. Initial discounted rate (if applicable)a. Annual Percentage Rateb. Daily Periodic Rate14. Monthly renewable credit disability rates (if applicable)At closing, the borrowers will sign and date the Credit Agreement.There is no signature box on the Addendum itself. The CreditAgreement and Addendum is one integrated document. Signing theCredit Agreement signifies agreement with the information containedin the Credit Agreement and Addendum.b. Security Instrument – The security instrument (mortgage, securitydeed or deed of trust) signifies the borrower(s)’ pledge of realproperty as collateral in order to secure the open-end home equityplan.Preparation of the security instrument for closing requires your creditunion to complete applicable information and prepare the signatureand acknowledgment area for the borrower(s) signature at closing.At closing, the credit union will obtain the signature(s) of all personswho have an ownership interest in the property being offered assecurity. Once the security instrument has been executed, the creditunion should take all necessary steps to record the instrument andperfect their interest in the property.For further details refer to the Security Instrument CompletionInstructions section in this Guide.c. Notice of Right to Cancel – It is important to alert borrower(s) thatthey will not receive any funds immediately at closing. By informingthe borrower about the right to rescind, your credit union can avoidany misconception about when funds can be disbursed. Your creditunion should not disburse any funds until the three day right tocancel period has passed. The rescission period will expire atmidnight on the third business day following the opening of theaccount, delivery of the Notice of Right to Cancel or delivery of allmaterial disclosures (the Credit Agreement and Addendum),whichever occurs last.In preparing the Notice of Right to Cancel your credit union shouldprepare a set of two notices for each person having a right to14 – LOANLINER Home Equity System

Open-End Loan Officer Checklistrescind. A person has a right to rescind if they give their principaldwelling as security for the plan.Once the rescission period has passed and you are satisfied that themember has not rescinded, the credit union may disburse fundsunder this account.For further details please refer to the Notice of Right to CancelCompletion Instructions section in this Guide.d. Insurance — Hazard, Credit Disability, Credit Life and Flood – Atclosing, your credit union must receive evidence that adequatehazard insurance is in place and your credit union is named as abeneficiary.Your credit union should determine if the member wants CreditDisability and/or Credit Life insurance. If so, be sure to adjust theloan payment to cover the addition of the premium charges to theloan. For further details refer to the Credit Agreement documentsCompletion Instructions section in this Guide and the MEMBER’SCHOICE TM Payment Protection Guide.Your credit union should determine whether or not the propertybeing offered is located in a special flood hazard area to meet theFlood Disaster Protection Act. It is administered for federallyinsured credit unions by the NCUA (12 C.F.R. Section 760). If it isdetermined that the property is located in such an area, the creditunion must receive documentation that adequate flood insurancehas been purchased.e. Automatic Payment Authorization – If your credit union offersautomatic payments (i.e. monthly payroll deduction), you shouldhave the borrower(s) sign the appropriate documents used by yourcredit union.f. Voucher For First Advance – The voucher is the credit union’s papertrail for the initial and subsequent advances and any paymentchanges.Your credit union should complete the borrower information andpayment terms section of the voucher. The borrower may sign thevoucher at closing. However, no funds can be disbursed at closing.Funds can only be disbursed after the three-day Right of Rescissionperiod has passed. Detailed completion instructions are provided inthis Guide.g. Additional Credit Union Documents – Your credit union mayrequire additional documents in order to complete the open-endhome equity plan. Any additional documents should be preparedfor borrower’s signature at closing.Open-End Lending – 15

Open-End Loan Officer Checklisth. 3-Day Right of Rescission Time Expired – No funds can bedisbursed until the rescission period has expired and the creditunion is reasonably satisfied that the consumers have not rescinded.The right to cancel period expires at midnight on the third businessday following the opening of the account, delivery of the Notice ofRight to Cancel or delivery of the Credit Agreement andAddendum, whichever occurs last.After you’re certain the consumers do not wish to cancel thetransaction, it is recommended (but not required) that you have themreturn and sign the original Notice of Right to Cancel confirmingtheir non-cancellation. When this step occurs, you’re ready todisburse the funds, pay all fees to appropriate parties, record securityinstrument, and notify the first mortgage holder of the new lien.i. Right of Rescission Exercised – If the consumers exercise their rightto cancel, you must take certain steps. First, you must receivewritten notification of the desire to cancel the transaction. Theconsumer can use a copy of the Notice of Right to Cancel you gavethem at closing or any written statement signed and dated by theconsumer stating their intent to cancel. The date by which they mustexercise their right to cancel is stated on the original Notice of Rightto Cancel. When this occurs, you must refund any and all fees(including an application fee) the borrower paid to obtain approvaland open the account. You must return the borrower’s moneyincluding any fees (application, appraisal, etc.) within 20 days ofreceiving the notification of cancellation. You must also release thesecurity instrument if it has been recorded.j. Funds Disbursed – If you did not complete the home equity voucherduring the closing of the account, now would be the time to do so.You can disburse the funds in many ways. You could do so in theform of a check at the credit union, check by mail, or place the fundsdirectly into the borrower’s account.k. Payment of Fees – Now is the time to pay all the fees collected withthis transaction to the appropriate parties (credit reporting agency,appraiser, attorney, etc.).l. Security Instrument Recorded – If you did not already do so, recordthe security instrument (mortgage, deed of trust or security deed)with the government agency responsible for real estate records.You may record the security instrument before the Right ofRescission period is over. However, keep in mind that you must paya fee to record the security instrument. If the consumer chooses tocancel the transaction within the three-day Right of Rescissionperiod, you must refund all fees paid and will have lost the moneypaid to record the mortgage, deed of trust or security deed.16 – LOANLINER Home Equity System

Open-End Loan Officer Checklistm. Letter Sent to Prior Mortgage Holder - A letter should be sentnotifying the holder of any prior mortgage, stating that the creditunion’s security instrument has been recorded. The borrower’s mustsign the bottom of this letter agreeing not to increase the firstmortgage. A sample of this letter is shown below:Sample of Letter to Send AfterOpening of the Open-End Home Equity Plan______________________(Date)Name & Address ofHolder of 1st(Mortgage, Deed of Trust orSecurity Deed)RE: Borrowers’ NamesStreet Address of PropertyCity, State and ZipCredit Union Acct. No.Dear _______________:(Name of credit union) opened a home equity line of credit for the borrowerslisted above. The borrowers agreed not to request or accept any future advanceson the [mortgage or deed of trust] you hold. The borrowers request andauthorize you to notify us if their account with you ever becomes delinquent.The (Mortgage, Deed of Trust, or Security Deed) securing the line of credit wasrecorded on __________ (date) at the _____________________________________(name of recording office) on ______________ page of ________________ book.The maximum principal balance is $_______________.Thank you for your cooperation._______________________________Signature - Credit UnionWe have agreed not to increase the balance of the first (Mortgage, Deed ofTrust, or Security Deed) with you. We authorize you to notify (name of creditunion) if our account becomes delinquent.___________________________Borrower___________________________Borrower____________Date____________DateOpen-End Lending – 17

Brochure — Open-EndWhat YouShould KnowAbout HomeEquity Linesof Credit18 – LOANLINER Home Equity System

Brochure — Open-EndBrochure – Open-EndWhat You Should Know About Home Equity Lines of CreditDocument DescriptionWhen Used:This Brochure is required to be given to a member at thetime the member obtains an open-end home equityapplication as required by Regulation Z Section 226.5b(b)and 226.5b(e).Purpose:How Distributed:The Brochure provides members with a discussion ofgeneral characteristics of home equity plans. TheBrochure describes the home equity lending process andprovides words of caution so the member can be aninformed consumer.The Brochure, along with a copy of the Early Disclosure,is given to the member at the same time the memberobtains an open-end home equity application. TheBrochure does not have to be given again when theaccount is opened.No. of Parts: 1Imprinting:Special Notes:NoneThe Brochure is available for purchase throughLOANLINER ® Lending Systems. Please call1-800-356-5012 to order.Open-End Lending – 19

Early DisclosureEarly DisclosureDocument DescriptionThe terms of the Early Disclosure are individual to each credit union. An EarlyDisclosure is created based on the answers your credit union provides on thehome equity questionnaire.When Used: The Early Disclosure must be given to the member whenreceiving an open-end home equity application asrequired by Regulation Z Section 226.5b(b).Purpose:The Early Disclosure provides the disclosures required byRegulation Z Section 226.5b(d). This disclosure informsthe member about important provisions specific to yourcredit union’s home equity plan.How Distributed: Within three days of the credit union’s receipt of theApplication, the credit union must provide an EarlyDisclosure to the member. (Also, a nonrefundable fee maynot be collected by the credit union until three businessdays after the applicant receives the Brochure and EarlyDisclosures as required by Regulation Z Section 226.5b(h).)If the Brochure and Early Disclosure are mailed to theapplicant, this fee must be refundable for six business daysafter the mailing as required by Regulation Z Section226.5b(h)(10d).No. of Parts: 1Imprinting: Optional - Credit union name and addressSpecial Notes: The Early Disclosure must be updated annually asrequired by Regulation Z for:Fixed Rate Plans – The Annual Percentage Rate (APR)disclosed must be one used within 12 months prior to thedate the Early Disclosure is provided to the member. Thismeans that in order for you to use the same EarlyDisclosure for a full year, the APR disclosed should be theone in effect when the Early Disclosure is prepared. TheEarly Disclosure has to be updated every year to reflectthe current APR. Refer to Regulation Z Section 226.5b(d)(6)footnote 10c.Variable Rate Plans – The index rate for the most recent yearmust be added to the 15-year historical table annually.Data about the index that is more than 15 years old mustbe deleted. This will cause the entire historical example tochange. Also, the minimum and maximum paymentexamples may change. Each year, your credit union needsto order an updated Early Disclosure. Refer to theCommentary to Regulation Z Section 226.5b(d)(12)(xi)-1.Signature – No signature is required for the Early Disclosure.20 – LOANLINER Home Equity System

Variable Rate Early Disclosure1 EVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anytown, CO 12345-1234HOME EQUITY EARLY DISCLOSUREIMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT PLAN23456This disclosure contains important information about our Home Equity Lineof Credit Plan. You should read it carefully and keep a copy for yourrecords.AVAILABILITY OF TERMS: All of the terms described below are subject tochange. 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 areentitled to a refund of any fees that you pay to us or anyone else inconnection with your application.SECURITY INTEREST: We will take a security interest in your home. Youcould lose your home if you do not meet the obligations in your agreementwith us.POSSIBLE ACTIONS: We can terminate your line, require you to pay usthe entire outstanding balance in one payment, and charge you certainfees, if (1) you engage in fraud or material misrepresentation in connectionwith the plan; (2) you do not meet the repayment terms of this plan, or (3)your action or inaction adversely affects the collateral or our rights in thecollateral.We can refuse to make additional extensions of credit or reduce your creditlimit if (1) any reasons mentioned above exist; (2) the value of the dwellingsecuring the line declines significantly below its appraised value forpurposes of the line; (3) we reasonably believe that you will not be able tomeet the repayment requirements due to a material change in yourfinancial circumstances; (4) you are in default of a material obligation of theagreement; (5) government action prevents us from imposing the annualpercentage rate provided for in the agreement; (6) the priority of oursecurity interest is adversely affected by government action to the extentthat the value of the security interest is less than 120 percent of the creditline; (7) a regulatory agency has notified us that continued advances wouldconstitute an unsafe and unsound business practice, or (8) the maximumannual percentage rate is reached.MINIMUM PAYMENT REQUIREMENTS: You can obtain credit advancesfor 10 years. This period is called the "draw period." At our option, wemay renew or extend the draw period. After the draw period ends therepayment period will begin. The length of the repayment period willdepend on the balance at the time of the last advance you obtain beforethe draw period ends. You will be required to make monthly paymentsduring both the draw and repayment periods. At the time of each creditadvance a payoff period will be established. The payoff period may varydepending on the amount of your outstanding credit balance after youobtain an advance. The payoff period is shown in the following table:Range of BalancesPayoff PeriodUp To - $10,000.00 60 Monthly Payments$10,000.01 - $20,000.00 96 Monthly Payments$20,000.01 - $30,000.00 120 Monthly Payments$30,000.01 - $40,000.00 144 Monthly Payments$40,000.01 - And above 180 Monthly PaymentsThe payoff period will always be the shorter of the payoff period for youroutstanding balance or the time remaining to the maturity date. Yourpayment will be set to repay the balance after the advance, at the currentannual percentage rate, within the payoff period. Your payment will berounded up to the nearest dollar. Your payment will remain the sameunless you obtain another credit advance. Your payment may also changeif the annual percentage rate increases or decreases. Each time theannual percentage rate changes, we will adjust your payment to repay thebalance within the original payoff period. Your payment will include anyamounts past due and any amount by which you have exceeded yourcredit limit, and all other charges. Your payment will never be less thanthe smaller of $100.00, or the full amount that you owe.MINIMUM PAYMENT EXAMPLE: If you made only the minimum monthlypayment and took no other credit advances it would take 5 years to pay offa credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of9.25%. During that period, you would make 60 payments of $209.00.FEES AND CHARGES:You must pay certain fees to third parties to open the plan. These feesgenerally total between $300.00 and $750.00. If you ask, we will provideyou with an itemization of the fees you will have to pay third parties.PROPERTY INSURANCE: You must carry insurance on the property thatsecures this plan. If the property is located in a Special Flood Hazard Areawe will require you to obtain flood insurance if it is available.REFUNDABILITY OF FEES: If you decide not to enter into this plan withinthree business days of receiving this disclosure and the home equitybrochure, you are entitled to a refund of any fee you may have alreadypaid.TRANSACTION REQUIREMENTS: The maximum number of advances 11you may obtain per quarter is 6. The minimum credit advance that youcan receive is $2,000.00 for the first advance and $500.00 for eachsubsequent advance.TAX DEDUCTIBILITY: You should consult a tax advisor regarding thedeductibility of interest and charges for the plan.VARIABLE RATE FEATURE: This plan has a variable rate feature and theannual percentage rate (corresponding to the periodic rate) and theminimum payment may change as a result. The annual percentage rateincludes only interest and no other costs.The annual percentage rate is based on the value of an index. The indexis the Prime Rate published in the Money Rates column of the Wall StreetJournal. When a range of rates has been published the highest rate will beused. We will use the most recent index value available to us as of 10days before the date of any annual percentage rate adjustment.789101213©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EED002 301874 08/14/2007Open-End Lending – 21

Variable Rate Early Disclosure1415To determine the annual percentage rate that will apply to your account,we add a margin to the value of the Index. Ask us for the current indexvalue, margin and annual percentage rate. After you open a plan, rateinformation will be provided on periodic statements that we send you.RATE CHANGES: The annual percentage rate can change quarterly onthe first day of January, April, July and October. There is no limit on theamount by which the annual percentage rate can change during any oneyear period. The maximum ANNUAL PERCENTAGE RATE that canapply is 18.0% or the maximum permitted by law, whichever is less.MAXIMUM RATE AND PAYMENT EXAMPLES: If you had an outstandingbalance of $10,000, the minimum payment at the maximum ANNUALPERCENTAGE RATE of 18.0% would be $254.00. This annualpercentage rate could be reached at the time of the 1st payment.HISTORICAL EXAMPLE: The following table shows how the annualpercentage rate and the minimum payments for a single $10,000 creditadvance would have changed based on changes in the index over the past15 years. The index values are from the last business day of July of eachyear.While only one payment per year is shown, payments may have variedduring each year.The table assumes that no additional credit advances were taken, that onlythe minimum payments were made, and that the rate remained constantduring each year. It does not necessarily indicate how the index or yourpayments will change in the future.16WALL STREET JOURNAL PRIME RATE INDEX TABLEIndexYear (as of the last business day of July)(Percent)Margin (1)(Percent)ANNUALPERCENTAGERATEMonthlyPayment(Dollars)1993 ....................................................................................................................................................... 6.000 1.00 7.000 198.001994 ....................................................................................................................................................... 7.250 1.00 8.250 203.001995 ....................................................................................................................................................... 8.750 1.00 9.750 208.001996 ....................................................................................................................................................... 8.250 1.00 9.250 206.001997 ....................................................................................................................................................... 8.500 1.00 9.500 206.001998 ....................................................................................................................................................... 8.500 1.00 9.5001999 ....................................................................................................................................................... 8.000 1.00 9.0002000 ....................................................................................................................................................... 179.500 1.00 10.5002001 ....................................................................................................................................................... 6.750 1.00 7.7502002 ....................................................................................................................................................... 4.750 1.00 5.7502003 ....................................................................................................................................................... 4.000 1.00 5.0002004 ....................................................................................................................................................... 4.250 1.00 5.2502005 ....................................................................................................................................................... 6.250 1.00 7.2502006 ....................................................................................................................................................... 8.250 1.00 9.2502007 ....................................................................................................................................................... 8.250 1.00 9.250(1) This is a margin we have used recently; your margin may be different.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EED002 301875 08/14/200722 – LOANLINER Home Equity System

Variable Rate Early DisclosureVariable Rate Early DisclosureDocument ExplanationPlease refer to the Early Disclosure on the preceding page for thecorresponding numbers. This Early Disclosure is a representative example ofwhat a credit union’s Variable Rate Early Disclosure may look like. Theterms contained in your credit union’s Early Disclosure may differ because ofthe answers your credit union gave on the home equity questionnaire.Many of the provisions in the Early Disclosures are exactly the same as theprovisions in the Addendum to the Credit Agreement. However, the EarlyDisclosures are not transaction-specific for each individual member’s plan.Therefore, you may give the same Early Disclosure to all borrowers interestedin your plan. If you have more than one home equity plan, you must have aseparate Early Disclosure and Addendum for each plan.The first four sections (1-4) precede the other required disclosures as requiredby Regulation Z Section 226.5b(a)(2).1. Credit Union Information – If your credit union name and addresswere not imprinted by CUNA Mutual, enter the applicable informationhere.2. Introduction – This is standard language required by Regulation ZSection 226.5b(d)(1).3. Availability of Terms – This is standard language required byRegulation Z Section 226.5b(d)(2).4. Security Interest – This is standard language required by Regulation ZSection 226.5b(d)(3).5. Possible Actions – This is standard language required by Regulation ZSection 226.5b(d)(4).6. Minimum Payment Requirements – This language is written to meetthe requirements of Regulation Z Section 226.5b(d)(5) payment terms.The language will vary extensively to reflect the answers given on thequestionnaire by your credit union regarding the payment termsspecific to your credit union’s plan such as:• Length of draw and repayment period• Frequency of payments• How payments are calculated• Whether payments are rounded and by how much• When payments will change and how they will change• The amount of any minimum paymentOpen-End Lending – 23

Variable Rate Early Disclosure7. Minimum Payment Example – The minimum payment example isrequired by Regulation Z Section 226.5b(d)(5)(iii). The language willvary to reflect the answers given on the questionnaire by your creditunion regarding the terms specific to your credit union’s plan for:• The amount of time it will take to pay off a $10,000 advance• The amount of the APR• The number and amount of payments8. Fees and Charges –a. This language is written to meet the requirements of Regulation ZSection 226.5b(d)(7). This paragraph may or may not appear basedon the answers given on the questionnaire completed by your creditunion. This section will reflect any fees and charges imposed byyour credit union to open, use and maintain the home equity planand will indicate when these fees or charges are payable.9. Property Insurance – This paragraph will not vary by your answers onthe questionnaire. It is written to meet the requirement in theCommentary to Regulation Z Section 226.5b(d)(8)-1 regarding propertyinsurance.10. Refundability of Fees – This paragraph will not vary by your answerson the questionnaire. It is written to meet the requirement in theCommentary to Regulation Z Section 226.5b(d)(h)-1 regardingrefundability of fees.11. Transaction Requirements – This paragraph may or may not appearbased on your answers on the questionnaire.12. Tax Deductibility – This language will not vary by your answers on thequestionnaire. It is written to meet the requirement of Regulation ZSection 226.5b(d)(11) regarding tax implications.13. Variable Rate Feature – This paragraph reflects your answers on thequestionnaire. The language and historical table reflect therequirements of Regulation Z Section 226.5b(d)(12)(i) through (xii).14. Rate Changes – This paragraph will vary to reflect the frequency in theAPR change and any limitations on changes in the APR (i.e. minimumand maximums) as it reflects your answers on the questionnaire.15. Maximum Rate and Payment Examples – This paragraph is given tomeet the requirement of Regulation Z Section 226.5b(d)(12)(x). Thisexample will vary to reflect your answer on the questionnaire.24 – LOANLINER Home Equity System

Variable Rate Early Disclosure16. Historical Example – The historical example language and the indextable calculations reflect the terms your credit union chose on thequestionnaire. The language and historical table are written to meet therequirements of Regulation Z Section 226.5b(d)(12)(xi).Open-End Lending – 25

Fixed Rate Early DisclosureHOME EQUITY EARLY DISCLOSUREIMPORTANT TERMS OF OUR HOME EQUITY LINE OF CREDIT PLANThis disclosure contains important information about our Home Equity Lineof Credit Plan. You should read it carefully and keep a copy for yourrecords.AVAILABILITY OF TERMS: All of the terms described below are subject tochange. 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 areentitled to a refund of any fees that you pay to us or anyone else inconnection with your application.SECURITY INTEREST: We will take a security interest in your home. Youcould lose your home if you do not meet the obligations in your agreementwith us.POSSIBLE ACTIONS: We can terminate your line, require you to pay usthe entire outstanding balance in one payment, and charge you certainfees, if (1) you engage in fraud or material misrepresentation in connectionwith the plan; (2) you do not meet the repayment terms of this plan, or (3)your action or inaction adversely affects the collateral or our rights in thecollateral.We can refuse to make additional extensions of credit or reduce your creditlimit if (1) any reasons mentioned above exist; (2) the value of the dwellingsecuring the line declines significantly below its appraised value forpurposes of the line; (3) we reasonably believe that you will not be able tomeet the repayment requirements due to a material change in yourfinancial circumstances; (4) you are in default of a material obligation of theagreement; (5) government action prevents us from imposing the annualpercentage rate provided for in the agreement; (6) the priority of oursecurity interest is adversely affected by government action to the extentthat the value of the security interest is less than 120 percent of the creditline; (7) a regulatory agency has notified us that continued advances wouldconstitute an unsafe and unsound business practice, or (8) the maximumannual percentage rate is reached.MINIMUM PAYMENT REQUIREMENTS: You can obtain credit advancesfor 5 years. This period is called the "draw period." At our option, we mayrenew or extend the draw period. After the draw period ends therepayment period will begin. The length of the repayment period willdepend on the balance at the time of the last advance you obtain beforethe draw period ends. You will be required to make monthly paymentsduring both the draw and repayment periods. At the time you obtain acredit advance a payoff period of 120 monthly payments will be used tocalculate your payment.The payoff period will always be the shorter of the payoff period for youroutstanding balance or the time remaining to the maturity date. Yourpayment will be set to repay the balance after the advance within thepayoff period. Your payment will be rounded up to the nearest dollar.EVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anytown, CO 12345-1234Your payment will remain the same unless you obtain another creditadvance. Your payment will include any amounts past due and anyamount by which you have exceeded your credit limit, and all othercharges.MINIMUM PAYMENT EXAMPLE: If you made only the minimum monthlypayment and took no other credit advances it would take 9 years 11months to pay off a credit advance of $10,000 at an ANNUALPERCENTAGE RATE of 6.0%. During that period, you would make 119payments of $112.00.FEES AND CHARGES: In order to open, use and maintain a line of creditplan, you must pay the following fees to us:Application Fee: $100.00 (Due at application)Origination Fee: 1.0 % of your credit limit (Due at closing)You must pay certain fees to third parties to open the plan. These feesgenerally total between $300.00 and $750.00. If you ask, we will provideyou with an itemization of the fees you will have to pay third parties.PROPERTY INSURANCE: You must carry insurance on the property thatsecures this plan. If the property is located in a Special Flood Hazard Areawe will require you to obtain flood insurance if it is available.REFUNDABILITY OF FEES: If you decide not to enter into this plan withinthree business days of receiving this disclosure and the home equitybrochure, you are entitled to a refund of any fee you may have alreadypaid.TRANSACTION REQUIREMENTS: The maximum number of advancesyou may obtain per quarter is 6. The minimum credit advance that youcan receive is $2,000.00 for the first advance and $500.00 for eachsubsequent advance.TAX DEDUCTIBILITY: You should consult a tax advisor regarding thedeductibility of interest and charges for the plan.ADDITIONAL HOME EQUITY PLANS: Please ask us about our otheravailable home equity line of credit plans.ANNUAL PERCENTAGE RATE INFORMATION: The ANNUALPERCENTAGE RATE under this Plan is not based on an Index. It isbased upon a fixed rate, which will be specified either at the time youreceive a commitment or at closing, and will be based upon the marketconditions at that time. An ANNUAL PERCENTAGE RATE of 6.0% isrepresentative of a fixed rate recently offered by us under this Plan. Theannual percentage rate does not include costs other than interest. Pleaseask us for the current annual percentage rate under this Plan.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EED002 202588 08/16/200726 – LOANLINER Home Equity System

Fixed Rate Early DisclosureFixed Rate Early DisclosureDocument ExplanationIf your credit union decided to use a fixed Annual Percentage Rate for yourhome equity plan, your Early Disclosure will appear the same as the variablerate for items 1-13. (Please see previous pages for explanations of these items).1. The only additional disclosure on a fixed rate plan is shown on thepreceding page in the “Annual Percentage Rate Information”paragraph.Unlike a disclosure for a variable rate plan, a fixed rate plan disclosure doesnot include information about how a variable rate will change, the maximumrate, a payment example or the 15-year historical table. This meets therequirements for Regulation Z Section 226.5b(d)(6).Open-End Lending – 27

Credit AgreementIMPORTANT! Complete all sections before detaching copiesOpen-End Home Equity Credit Agreementand Truth in Lending DisclosureBORROWER 1 NAME (Please Print)ACCOUNT NUMBERBORROWER 2 NAME (Please Print)ACCOUNT NUMBERBORROWER 1 ADDRESSBORROWER 2 ADDRESSINTRODUCTION. This LOANLINER ® Home Equity Plan Credit Agreement and Truth inLending Disclosure will be referred to as this “Plan”. This Plan consists of thisAgreement and the accompanying Addendum which is incorporated into andbecomes a part of this Credit Agreement and Truth in Lending Disclosure. The words“you,” “your,” and “Borrower” mean each person who signs this Plan. The words“we,” “us,” “our,” “Lender,” and “credit union” mean the credit union whose nameappears above or anyone to whom the credit union transfers its rights under this Plan.1. HOW THIS PLAN WORKS. This Plan establishes a revolving line of creditaccount (“account”). You and the credit union anticipate that you will obtain a seriesof advances under this Plan from time to time. The maximum amount you canborrow (“credit limit”) is disclosed in the Addendum. It is the amount of credit youmay borrow, repay all or a portion and re-borrow subject to the terms of this Plan.2. PROMISE TO PAY. You promise to repay to the credit union, or order, alladvances made to you under this Plan, plus finance charges, other applicablecharges, and costs of voluntary payment protection for which you are responsibleunder this Plan. You agree to pay the Minimum Payment on or before the due date.By signing below you agree that you have read the LOANLINER ® Home Equity PlanCredit Agreement and Truth in Lending Disclosure and Addendum and agree to bebound by the terms of the Agreement. You also acknowledge receipt of a copy ofCREDIT AGREEMENT AND TRUTH IN LENDING DISCLOSURE3. JOINT ACCOUNTS. If this is a joint account, each of you must sign this Plan andyou will be individually and jointly responsible for the promises you make in thisAgreement, including paying all amounts owed. This means that the credit union canrequire any one of you to repay all advances plus applicable finance charges, otherapplicable charges, and voluntary payment protection costs. Unless the credit union’swritten policy requires all of you to sign for an advance, each of you authorizes theother(s) to obtain advances individually and agrees to repay advances made to theother(s). The credit union can release one of you from responsibility under this Planwithout releasing the other(s).4. SECURITY INTEREST. This Plan is secured by a mortgage, deed of trust,security deed, or security agreement (the “security instrument”) in your dwellingwhich is described in the Addendum.5. PROMISES IN SECURITY INSTRUMENT. The security instrument you sign thesame day you sign this Plan is incorporated by reference into this Plan. You mustkeep all the promises you made in the security instrument.SIGNATURES(Continued on reverse side.)this Agreement, and the Home Equity Early Disclosure and handbook entitled “WhatYou Should Know About Home Equity Lines of Credit” given to you at the time ofapplication.Notice To Vermont Borrowers: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENTOF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU.X(SEAL)X(SEAL)BORROWER 1 SIGNATUREDATEWITNESS SIGNATUREDATEX(SEAL)X(SEAL)BORROWER 2 SIGNATUREDATEWITNESS SIGNATUREDATEENROLLMENT/APPLICATION AND SCHEDULE FOR VOLUNTARY PAYMENT PROTECTIONCUNA Mutual Insurance Society • Madison, WI 53701-0391 • Phone: 800/937-2644“You” or “Your” means the member and the joint insured (if applicable). Aco-signor is not eligible for joint coverage.Credit insurance is voluntary and not required in order to obtain this loan. Youmay select any insurer of your choice. You can get this insurance only if youcheck “yes” below and sign your name and write in the date. The rate you arecharged for the insurance is subject to change. You will receive written noticebefore any increase goes into effect. You have the right to stop this insurance bynotifying your credit union in writing. Your signature below means you agree that:• If you elect insurance, you authorize the credit union to add the charges forinsurance to your loan each month.• You are eligible for disability insurance only if you are working for wages orprofit for 25 hours a week or more on the initial loan date. If you are not, youwill not be insured until you return to work. If you are off work because oftemporary layoff, strike or vacation, but soon to resume, you will be consideredat work. Are you working for wages or profit for 25 hours a week or more?Borrower Yes No Co-Borrower Yes No• You are eligible for insurance up to the Maximum Age for Insurance. Insurancewill stop when you reach that age.NOTE: THE LIFE AND DISABILITY INSURANCE CONTAINS CERTAIN BENEFITEXCLUSIONS, INCLUDING A PRE-EXISTING CONDITION EXCLUSION. PLEASEREFER TO YOUR CERTIFICATE FOR DETAILS.YOU ELECT THEFOLLOWING INSURANCECOVERAGE(S)SINGLE CREDIT DISABILITYJOINT CREDIT DISABILITYSINGLE CREDIT LIFEJOINT CREDIT LIFEYES NOCOST PER $100OF YOUR MONTHLYLOAN BALANCE$.XX$.XX$.XX$.XXCOVERED MEMBER(please print)If you are totally disabled for more than 30 days, then the disability benefit will begin with the 31st day of disability.ACCOUNT NUMBERINSURANCE MAXIMUMSDISABILITY LIFEGROUP POLICY NUMBERXXX-XXXX-XDATE OF ISSUE OF THE CERTIFICATEMAXIMUM MONTHLY TOTAL DISABILITY BENEFITMAXIMUM INSURABLE BALANCE PER LOAN ACCOUNTMAXIMUM AGE FOR INSURANCESECONDARY BENEFICIARY (If you desire to name one)$ XXX$XX,XXXXXN/A$XX,XXXXXDATEMEMBER’S DATE OF BIRTHDATEJOINT INSURED’S DATE OF BIRTHXXSIGNATURE OF MEMBER(Be sure to check one of the boxes above)APP.835-0596IL/RevSIGNATURE OF JOINT INSURED (CO-BORROWER)©CUNA MUTUAL GROUP, 1998, 99, 2000, 01, 03, 04, ALL RIGHTS RESERVEDTO ORDER: 1-800-356-5012 CREDIT UNION COPY EST10628 – LOANLINER Home Equity System

Credit AgreementCredit AgreementDocument DescriptionWhen Used:This document is used to open a home equity plan for aborrower(s) and can be used with a fixed or variable rateplan. The Credit Agreement must be completed andsigned before the borrower can receive the first advanceunder the plan.This Credit Agreement should only be completed atthe time the open-end home equity plan is opened. Itshould not be completed again at the time the borrowerobtains subsequent advances.Purpose:How Distributed:The Credit Agreement, along with the Addendumincludes:• the disclosures required by Regulation ZSection 226.6(a)-(e),• the contract between the credit union and theborrower(s) and• the Enrollment/Application and Schedule forVoluntary Payment Protection and Certificate ofInsurance.This Credit Agreement includes the terms of theindividual borrower’s plan at the time the plan is opened.The first copy (labeled Credit Union) is your CreditUnion’s copy of the Credit Agreement. This copy is keptby your credit union in the borrower’s loan file alongwith the Addendum.The second copy (labeled Borrower 1) is the firstborrower’s copy of the Credit Agreement. After theCredit Agreement is completed and signed by allborrowers, the first borrower should receive this copy.The third copy (labeled Borrower 2) is the secondborrower’s copy of the Credit Agreement. If there is morethan one borrower on the plan, only one borrower needsto receive a copy of the Credit Agreement andAddendum. However, any party giving a security interestin the principal dwelling must receive a copy of theCredit Agreement and Addendum. After the CreditAgreement is completed and signed by all borrowers, theOpen-End Lending – 29

Credit Agreementsecond borrower or part owner of the collateral shouldreceive this copy. If there are more than two borrowers ona plan, your credit union may make additionalphotocopies.The last part of the document, Certificate of Insurance, isgiven to the borrower.No. of Parts: 3Components: Credit union copyBorrower 1 copyBorrower 2 copyImprinting: Optional – Credit union name, address, telephonenumber and logoSpecial Notes: Each person entitled to receive the Credit Agreement andTruth in Lending Disclosure must also receive a copy ofthe Addendum to the Credit Agreement. Both documentsmust be given at the same time to each borrower to meetthe “integrated document” requirement ofSection 226.5(a)(1)-2 of the Commentary to Regulation Z.30 – LOANLINER Home Equity System

Open-End Lending – 31

Credit AgreementIMPORTANT! Complete all sections before detaching copiesOpen-End Home Equity Credit Agreementand Truth in Lending Disclosure1 EVERYBODY’S CREDIT UNION101 Elm StreetAnytown, IL 12345BORROWER 1 NAME (Please Print)ACCOUNT NUMBERBORROWER 2 NAME (Please Print)ACCOUNT NUMBER2BORROWER 1 ADDRESSBORROWER 2 ADDRESS345INTRODUCTION. This LOANLINER ® Home Equity Plan Credit Agreement and Truth inLending Disclosure will be referred to as this “Plan”. This Plan consists of thisAgreement and the accompanying Addendum which is incorporated into andbecomes a part of this Credit Agreement and Truth in Lending Disclosure. The words“you,” “your,” and “Borrower” mean each person who signs this Plan. The words“we,” “us,” “our,” “Lender,” and “credit union” mean the credit union whose nameappears above or anyone to whom the credit union transfers its rights under this Plan.1. HOW THIS PLAN WORKS. This Plan establishes a revolving line of creditaccount (“account”). You and the credit union anticipate that you will obtain a seriesof advances under this Plan from time to time. The maximum amount you canborrow (“credit limit”) is disclosed in the Addendum. It is the amount of credit youmay borrow, repay all or a portion and re-borrow subject to the terms of this Plan.2. PROMISE TO PAY. You promise to repay to the credit union, or order, alladvances made to you under this Plan, plus finance charges, other applicablecharges, and costs of voluntary payment protection for which you are responsibleunder this Plan. You agree to pay the Minimum Payment on or before the due date.By signing below you agree that you have read the LOANLINER ® Home Equity PlanCredit Agreement and Truth in Lending Disclosure and Addendum and agree to bebound by the terms of the Agreement. You also acknowledge receipt of a copy ofCREDIT AGREEMENT AND TRUTH IN LENDING DISCLOSURE3. JOINT ACCOUNTS. If this is a joint account, each of you must sign this Plan andyou will be individually and jointly responsible for the promises you make in thisAgreement, including paying all amounts owed. This means that the credit union canrequire any one of you to repay all advances plus applicable finance charges, otherapplicable charges, and voluntary payment protection costs. Unless the credit union’swritten policy requires all of you to sign for an advance, each of you authorizes theother(s) to obtain advances individually and agrees to repay advances made to theother(s). The credit union can release one of you from responsibility under this Planwithout releasing the other(s).4. SECURITY INTEREST. This Plan is secured by a mortgage, deed of trust,security deed, or security agreement (the “security instrument”) in your dwellingwhich is described in the Addendum.5. PROMISES IN SECURITY INSTRUMENT. The security instrument you sign thesame day you sign this Plan is incorporated by reference into this Plan. You mustkeep all the promises you made in the security instrument.SIGNATURES(Continued on reverse side.)this Agreement, and the Home Equity Early Disclosure and handbook entitled “WhatYou Should Know About Home Equity Lines of Credit” given to you at the time ofapplication.Notice To Vermont Borrowers: NOTICE TO COSIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENTOF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU.6789X(SEAL)X(SEAL)BORROWER 1 SIGNATUREDATEWITNESS SIGNATUREDATEX(SEAL)X(SEAL)BORROWER 2 SIGNATUREDATEWITNESS SIGNATUREDATE10ENROLLMENT/APPLICATION AND SCHEDULE FOR VOLUNTARY PAYMENT PROTECTIONCUNA Mutual Insurance Society • Madison, WI 53701-0391 • Phone: 800/937-2644“You” or “Your” means the member and the joint insured (if applicable). Aco-signor is not eligible for joint coverage.Credit insurance is voluntary and not required in order to obtain this loan. Youmay select any insurer of your choice. You can get this insurance only if youcheck “yes” below and sign your name and write in the date. The rate you arecharged for the insurance is subject to change. You will receive written noticebefore any increase goes into effect. You have the right to stop this insurance bynotifying your credit union in writing. Your signature below means you agree that:• If you elect insurance, you authorize the credit union to add the charges forinsurance to your loan each month.• You are eligible for disability insurance only if you are working for wages orprofit for 25 hours a week or more on the initial loan date. If you are not, youwill not be insured until you return to work. If you are off work because oftemporary layoff, strike or vacation, but soon to resume, you will be consideredat work. Are you working for wages or profit for 25 hours a week or more?Borrower Yes No Co-Borrower Yes No• You are eligible for insurance up to the Maximum Age for Insurance. Insurancewill stop when you reach that age.NOTE: THE LIFE AND DISABILITY INSURANCE CONTAINS CERTAIN BENEFITEXCLUSIONS, INCLUDING A PRE-EXISTING CONDITION EXCLUSION. PLEASEREFER TO YOUR CERTIFICATE FOR DETAILS.YOU ELECT THEFOLLOWING INSURANCECOVERAGE(S)SINGLE CREDIT DISABILITYJOINT CREDIT DISABILITYSINGLE CREDIT LIFEJOINT CREDIT LIFEe If you are totally disabled for more than 30 days, then the disability benefit will begin with the 31st day of disability.ACCOUNT NUMBERINSURANCE MAXIMUMSDISABILITY LIFEfMAXIMUM MONTHLY TOTAL DISABILITY BENEFIT $ XXX N/A hGROUP POLICY NUMBERMAXIMUM INSURABLE BALANCE PER LOAN ACCOUNT $XX,XXX $XX,XXXgXXX-XXXX-XMAXIMUM AGE FOR INSURANCEXX XXDATE OF ISSUE OF THE CERTIFICATESECONDARY BENEFICIARY (If you desire to name one)ijDATEYES NOCOST PER $100OF YOUR MONTHLYLOAN BALANCE$.XX$.XX$.XX$.XXMEMBER’S DATE OF BIRTHDATECOVERED MEMBER(please print)a b cJOINT INSURED’S DATE OF BIRTHdXSIGNATURE OF MEMBER(Be sure to check one of the boxes above)APP.835-0596IL/RevkXSIGNATURE OF JOINT INSURED (CO-BORROWER)l©CUNA MUTUAL GROUP, 1998, 99, 2000, 01, 03, 04, ALL RIGHTS RESERVEDTO ORDER: 1-800-356-5012 CREDIT UNION COPY EST10632 – LOANLINER Home Equity System

Credit Agreement11121314151617CREDIT AGREEMENT AND TRUTH IN LENDING DISCLOSURE CONTINUED6. APPLICATION OF PAYMENTS. Payments will be applied in the order the creditunion chooses to any finance charges, voluntary payment protection costs, andother applicable charges due before being applied to your unpaid balance.7. CREDIT LIMIT. You promise not to request or obtain an advance that will makeyour balance exceed your credit limit. Your credit limit will not be increased if youexceed your credit limit. If you exceed your credit limit, you agree to repay theexcess immediately.8. ACCESS DEVICES. You can obtain credit advances in any manner authorized bythe credit union from time to time. Your application for this account also serves asa request to receive any additional access devices which may be available in thefuture in connection with this Plan. The terms of this Plan will also apply to anyfuture access devices we issue to you for accessing this Plan.9. COST OF CREDIT. The finance charge is the cost you pay for credit. Unlessdescribed otherwise on the Addendum, the finance charge on each new advancebegins on the date of the advance and continues until the advance has been paid infull. There is no “free ride period” which would allow you to avoid a finance charge.To compute the finance charge, the unpaid balance for each day since your lastpayment (or since an advance if you have not yet made a payment) is multiplied bythe applicable periodic rate. The sum of those amounts is the finance charge owed.The periodic rate and corresponding annual percentage rate are disclosed in theAddendum. The balance used to compute the finance charge is the unpaid balanceeach day after payments and credits to that balance have been subtracted and anynew advances have been added.10. ANNUAL PERCENTAGE RATE. The annual percentage rate under this Planincludes only interest and no other costs. The Addendum shows the current interestrate as a periodic rate and a corresponding annual percentage rate. If the interestrate for this Plan is a variable interest rate the Addendum explains how the variableinterest rate works. If we forego an annual percentage rate increase, we may returnto the full index and margin at a later adjustment subject to any rate limitations.11. OTHER CHARGES. In addition to finance charges, your account is subject tocertain other charges as described in this Plan and the Addendum. The credit unioncan add any of these other charges to your balance or you can pay them in cash.12. CHARGES TO YOUR ACCOUNT. We may charge your account to pay other feesand costs that you are obligated to pay under this Plan or under the securityinstrument. In addition, we may charge your account for funds required forcontinuing property insurance coverage or costs to protect or perfect our securityinterest in your dwelling. These costs or expenses include, without limitation,payments to cure defaults under any existing liens on your dwelling. If you do notpay your property taxes, we may charge your account and pay the delinquent taxes.Any amount so charged to your account will be a credit advance. However, we haveno obligation to provide any of the credit advances referred to in this paragraph.18 13. LENDER’S RIGHTS:(a) Termination and Acceleration. In accordance with applicable law, we canterminate your credit line and require you to pay us the entire outstandingbalance in one payment, and charge you certain fees or suspend additionalextensions of credit or reduce your credit limit, if any of the following happen:For Wisconsin Borrowers Only:(1) You fail to make a required payment when due two times within atwelve month period, or(2) Your failure to observe the terms of this Plan materially impairs thecondition, value or protection of, or our rights in, the property securingthis Plan.For All Other Borrowers:(1) You engage in fraud or make a material misrepresentation at any timein connection with this Plan. This can include, for example, a falsestatement about your income, assets, liabilities, or any other aspectsof your financial condition.(2) You do not meet the repayment terms of this Plan.(3) Your action or inaction adversely affects the collateral for this Plan orour rights in the collateral. This can include, for example, failure tomaintain required insurance, waste or destructive use of the property,failure to pay taxes, death of all persons liable on the account, transferof title or sale of the property, creation of a senior lien on the propertywithout our permission, foreclosure by a prior lienholder, use of thedwelling for prohibited purposes, or taking of the property througheminent domain.(b) Suspension or Reduction. In addition to any other rights we may have, wecan suspend additional extensions of credit or reduce your credit limitduring any period in which any of the following are in effect:(1) The value of the property securing this Plan declines significantly belowthe property’s appraised value for purposes of this Plan. This includes,for example, a decline such that the initial difference between the creditlimit and the available equity is reduced by fifty percent and may includea smaller decline depending on the individual circumstances.(2) We reasonably believe that you will be unable to fulfill your paymentobligations under this Plan due to a material change in your financialcircumstances.(3) You are in default of a material obligation of this Plan. We consider allof your obligations to be material. No default will occur until we mailor deliver a notice of default to you.(4) We are precluded by government action from imposing the annualpercentage rate provided for under this Plan.(5) The priority of our security interest is adversely affected bygovernment action to the extent that the value of the security interestis less than 120 percent of the credit limit.(6) We have been notified by a regulatory authority that continuedadvances may constitute an unsafe and unsound business practice.(7) The maximum annual percentage rate under this Plan has been reached.(8) For Wisconsin Borrowers Only: You engage in fraud or materialmisrepresentation in connection with the Plan.(c) Change in Terms. We may make changes to the terms of this Plan if youagree to the change in writing at that time, if the change will unequivocallybenefit you throughout the remainder of this Plan, or if the change isinsignificant (such as changes relating to our data processing systems).We may also change the terms of this Plan in accordance with otherreasons, if stated on the Addendum. If this Plan follows an index and theindex is no longer available, we will choose a new index and margin. Thenew index will have an historical movement substantially similar to theoriginal index, and the new index and margin will result in an annualpercentage rate that is substantially similar to the rate in effect at the timethe original index becomes unavailable.14. USE OF ACCOUNT. You promise to use your account for consumer (personal,family or household) purposes, unless the credit union gives you written permissionto use the account also for agricultural or commercial purposes, or to purchase realestate.15. MEMBERSHIP IN CREDIT UNION. You must be a member of the credit union toobtain credit advances.16. CONFLICTING INSTRUCTIONS. You agree not to provide conflicting instructionsto us regarding your Plan (such as instructing us not to make credit advances to ajoint borrower).17. PREPAYMENT. You may prepay all or part of what you owe at any time withoutany prepayment penalty.18. CANCELLATION BY YOU. You can cancel your right to future credit advancesunder this Plan, by notifying us in writing. If this is a joint account and one of youcancels future credit advances under this Plan, the cancellation will apply to both ofyou, unless the credit union gives written notice to one of you that you may continueto obtain advances. Despite cancellation, your obligations under this Plan willremain in full force and effect until you have paid us all amounts due.19. TAX CONSEQUENCES. You should consult a tax advisor regarding thedeductibility of interest and charges under this Plan.20. STATEMENT AND NOTICES. On a regular basis the credit union will send astatement showing all transactions on your account during the period covered bythe statement. Statements and notices will be mailed to you at the most recentaddress you have given the credit union in writing. Notice to any one of you will benotice to all.21. TRANSFER OR ASSIGNMENT. You cannot assign your rights and obligationsunder this Plan. In spite of any divorce or agreement between joint borrowers, eachis responsible for the total amount owed under this Plan. Subject to applicable law,we reserve the right to sell or transfer this Plan to another lender, entity or person,and to assign our rights under the security instrument.22. UPDATING INFORMATION. You promise that you will give us updated financialinformation and information about matters affecting the title and value of theproperty securing this Plan. You agree that we may obtain credit reports andappraisals at our option and expense for any reason.23. PROPERTY INSURANCE. You promise to insure the property that secures thisPlan, in the amount the credit union requires, against fire and other hazards(including flood insurance if the credit union requires it). You may obtain propertyinsurance from anyone you want that is acceptable to the credit union. We have theright not to accept the insurer for reasonable cause. Subject to applicable law, if youfail to obtain or maintain insurance as required, we may purchase insurance toprotect our own interest, add the premium to your balance and/or pursue any otherremedies available to us.24. VOLUNTARY PAYMENT PROTECTION. We may offer Voluntary PaymentProtection to you. Voluntary Payment Protection is not necessary to obtain credit. Ifyou purchase Voluntary Payment Protection from us, you authorize us to add thefees or insurance charges monthly to your loan balance and charge you interest onthe entire balance. At our option, we will change your payment or the period of timenecessary to repay the loan balance. The rate used to determine the fees orinsurance charges may change in the future. If the rate changes, we will provide anynotices required by applicable law.25. NO WAIVER. The credit union can delay enforcing any of its rights under thisPlan without losing any of its rights.26. CONTINUED EFFECTIVENESS. If the law makes any term(s) of this Planunenforceable, the other terms will remain in effect.27. DUE ON SALE. You promise to notify the Credit Union immediately if you enterinto an agreement to sell or transfer ownership of all or any part of the propertysecuring this account. If you sell or transfer ownership without first obtaining thewritten consent of the Credit Union, the Credit Union may exercise its rightsdescribed in the Security Instrument, including the right to demand immediatepayment in full of all sums secured by the Security Instrument.28. THE FOLLOWING NOTICE IS REQUIRED BY CALIFORNIA LAW: TRANSFER OFTHE PROPERTY. Subject to applicable law, Lender shall have the right to accelerate,that is, to demand immediate payment in full of all sums secured by this Mortgageor Deed of Trust, if Borrower, without the written consent of Lender, sells ortransfers all or part of the Property or any rights in the Property.29. NOTICE TO GEORGIA BORROWERS. This is an instrument under seal.30. NOTICE TO UTAH BORROWERS. This written agreement is a final expressionof the agreement between you and the Credit Union. This written agreement may notbe contradicted by evidence of any oral agreement.31. THE FOLLOWING NOTICE IS REQUIRED BY NEW YORK LAW: Default inthe payment of this loan agreement may result in the loss of theproperty securing the loan. Under federal law, you may have theright to cancel this agreement. If you have this right, the creditoris required to provide you with a separate written note specifyingthe circumstances and times under which you can exercise thisright.192021222324252627282930313233343536Open-End Lending – 33

Credit Agreement37BILLING RIGHTS — KEEP THIS NOTICE FOR FUTURE USEThis notice contains important information about your rights and ourresponsibilities under the Fair Credit Billing Act.NOTIFY US IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR STATEMENT.If you think your statement is wrong, or if you need more information about atransaction on your statement, write us on a separate sheet at the addresslisted on your statement. Write to us as soon as possible. We must hear fromyou no later than 60 days after we sent you the first statement on which theerror or problem appeared. You can telephone us, but doing so will notpreserve your rights.In your letter, give us the following information:• Your name and account number.• The dollar amount of the suspected error.• Describe the error and explain, if you can, why you believe there is anerror. If you need more information, describe the item you are notsure about.If you have authorized us to pay a credit card account automatically from yourshare account or share draft account, you can stop the payment on any amountyou think is wrong. To stop the payment your letter must reach us threebusiness days before the automatic payment is scheduled to occur.YOUR RIGHTS AND OUR RESPONSIBILITIES AFTER WE RECEIVE YOURWRITTEN NOTICE. We must acknowledge your letter within 30 days, unless wehave corrected the error by then. Within 90 days, we must either correct theerror or explain why we believe the statement was correct.After we receive your letter, we cannot try to collect any amount you question,or report you as delinquent. We can continue to send statements to you for theamount you question, including finance charges, and we can apply any unpaidamount against your credit limit. You do not have to pay any questioned amountwhile we are investigating, but you are still obligated to pay the parts of yourstatement that are not in question.If we find that we made a mistake on your statement, you will not have to payany finance charges related to any questioned amount. If we didn’t make amistake, you may have to pay finance charges, and you will have to make up anymissed payments on the questioned amount. In either case, we will send you astatement of the amount you owe and the date that it is due.If you fail to pay the amount that we think you owe, we may report you asdelinquent. However, if our explanation does not satisfy you and you write to uswithin ten days telling us that you still refuse to pay, we must tell anyone wereport you to that you have a question about your statement. And, we must tellyou the name of anyone we reported you to. We must tell anyone we report youto that the matter has been settled between us when it finally is.If we don’t follow these rules, we can’t collect the first $50 of the questionedamount, even if your statement was correct.SPECIAL RULE FOR CREDIT CARD PURCHASES. If you have a problem with thequality of property or services that you purchased with a credit card, and youhave tried in good faith to correct the problem with the merchant, you may havethe right not to pay the remaining amount due on the property or services. Thereare two limitations on this right: (a) You must have made the purchase in yourhome state or, if not within your home state, within 100 miles of your currentmailing address; and (b) The purchase price must have been more than $50.These limitations do not apply if we own or operate the merchant, or if wemailed you the advertisement for the property or services.The Credit Union Difference . . .Credit unions remain unique among financial institutions. While othersoffer products to generate profit, credit unions provide them to servemembers’ needs.Among insurance companies, there’s a CUNA Mutual difference, too. Ourpurpose stays focused: To help credit unions continue to provide superiorvalue, highest quality products and unmatched services to members.For members . . .By offering CUNA Mutual’s lending-related products and services, youcan take comfort in knowing that your credit union is taking the stepsnecessary to protect your family and collateral should a life-altering eventever occur.®BORROWER 2 COPY34 – LOANLINER Home Equity System

Credit AgreementCompletion InstructionsPlease refer to the document on the preceding pages for the correspondingnumbers.1. Credit Union Information – If your credit union name, address, telephonenumber and logo were not imprinted by CUNA Mutual, enterthe applicable information here.2. Borrower Information –Enter the borrower’s name, address andaccount number.3. Introduction – This paragraph defines the terms used in the CreditAgreement and Truth in Lending Disclosure and Addendum.4. How This Plan Works – Makes it clear that the LOANLINER ® HomeEquity Plan is an open-end Credit Agreement.5. Promise to Pay – This is the borrower’s promise to repay all amountsborrowed under this plan plus interest as well as other charges andcredit insurance premiums.6. Joint Accounts – Each person signing the plan is responsible for payingall amounts owed under the agreement. Unless the credit union has awritten policy requiring all joint borrowers to sign for an advance, eachjoint borrower can request advances individually.7. Security Interest – Regulation Z Section 226.6(c) requires disclosure thatthe creditor will acquire a security interest in the property purchased orin other property identified by item or type. This plan is secured by amortgage, deed of trust or security deed in the dwelling described inthe Addendum.8. Promises in Security Instrument – Explains that the security instrumentis a part of the plan and all promises made in the security instrumentmust be kept.9. Signatures – All of the borrowers must sign here. By signing, theborrowers agree to be bound by the terms of the Credit Agreementand Addendum. They also acknowledge that they have received acopy of the Early Disclosure and Brochure at the time of application.10. Voluntary Payment Protection – This section includes the disclosuresrequired by Regulation Z Section 226.4(d)(1) and state insuranceregulations. The application on the documents you are using may lookdifferent than it appears on the sample.a. Credit Insurance Coverage(s) – The member must check whether ornot insurance is desired. The coverage(s) offered by your creditunion will be imprinted by CUNA Mutual.b. Cost of Credit Insurance – Regulation Z Section 226.4(d)(1) requiresa unit cost disclosure of the credit insurance cost to the member. Theunit cost will be imprinted by CUNA Mutual.Open-End Lending – 35

Credit Agreementc. Covered Member – Your credit union or member will enter the nameof the member who will be covered by the applicable insurance.d. Blank Area – If applicable, special credit insurance contractprovisions will be imprinted here by CUNA Mutual.e. Credit Disability Waiting Period – If applicable, the waiting periodbenefits will be imprinted here by CUNA Mutual.f. Account Number – Your credit union or member will enter theaccount number if applicable.g. Group Policy Number – Will be imprinted by CUNA Mutual.h. Insurance Maximums – Will be imprinted by CUNA Mutual.i. Date of Issue of The Certificate – The credit union will enter date thecertificate is issued.j. Secondary Beneficiary – If the member wishes to name a SecondaryBeneficiary who will receive any excess proceeds from an insurancebenefit, it should be indicated in this box. (The benefits payable willonly be those in excess of the loan balance.) The member or creditunion may enter this information.k. Signature of Borrower and Date of Birth – Regulation ZSection 226.4(d)(1) requires the borrower’s signature if creditinsurance is elected. Be sure to obtain the signature of the borrowerwho will be covered. While Regulation Z only requires a signatureif the member elects insurance, we recommend a signature alwaysbe obtained whether insurance is elected or not. Therefore, theborrower always signs in this space even if the insurance coverageis not elected.Your credit union must also obtain the borrower’s date of birth.This information is required to determine the member’s eligibilityfor insurance coverage.l. Signature of Joint Insured and Date of Birth – This signature isobtained ONLY when Joint Credit Life or Joint Credit Disabilityinsurance is elected. A co-borrower is eligible for Joint Credit Life orJoint Credit Disability only if they have signed the Credit Agreement.Your credit union must also obtain the date of birth of the coborrowerto determine eligibility for Joint Credit Life or Joint CreditDisability insurance coverage.11. Application of Payments – Explains that your credit union willdetermine the manner in which payments will be applied.12. Credit Limit – The borrower’s promise not to request or obtain anadvance that will make the balance exceed the borrower’s limit. The36 – LOANLINER Home Equity System

Credit Agreementborrower(s) also promises they will repay the excess immediately if thecredit limit is exceeded. The amount of the borrower’s credit limit isdisclosed on the Addendum.13. Access Devices – Explains that access to the plan is available in anymanner authorized by your credit union. This section explains that ifthe credit union adds additional access devices in the future, all termsof the plan will apply to these access devices.Note: The credit union decides what method of access the borrowerscan use to obtain advances under the plan. (Example: in person,by mail, by telephone, or by sharedraft or check). The creditunion may have decided to provide all of these methods. If youare offering credit card access, call LOANLINER ® LendingSystems for additional disclosure information.14. Cost of Credit – Includes the following disclosures:• Finance Charge Computation – Discloses when the finance chargebegins to accrue, how it will be determined and that no “free rideperiod” applies, as required by Regulation Z Section 226.6(a)(1).• Balance on which the Finance Charge is Computed – This disclosureis required by Regulation Z Section 226.6(a)(3).15. Annual Percentage Rate – Includes the following disclosures:• The statement that “the Annual Percentage Rate imposed under thePlan does not include costs other than interest” is required byRegulation Z Section 226.6(e)(6).• Explains that the current interest rate will be disclosed as a DailyPeriodic Rate and corresponding APR on the Addendum. TheAddendum also explains how the variable rate works.16. Other Charges – States any other charges on the plan will be disclosedon the Addendum and in the Credit Agreement.17. Charges to Your Account – Informs the borrower that your credit unionhas the right to add additional charges as an advance on the account ifthe borrower doesn’t pay property taxes, insurance, etc.18. Lender’s Rights –• Termination and Acceleration – Discloses the only conditions underwhich your credit union can terminate the borrower’s account andrequire the borrower to pay the credit union the entire outstandingbalance in one payment as required by Regulation ZSection 226.6(e)(1). The conditions are different for Wisconsinborrowers.Open-End Lending – 37

Credit Agreement• Suspension or Reduction – Discloses the only conditions in which thecredit union can suspend advances or reduce the credit limit on theplan as required by Regulation Z Section 226.6(e)(1).• Change in Terms – Informs the borrower when the credit union canmake changes to the plan as permitted by Regulation ZSection 226.6(e)(1). There are very limited reasons for changing theterms of the plan.19. Use of Account – Informs the borrower that use of the plan is limited toconsumer purposes unless your credit union gives the borrowerwritten permission to use the account for agricultural or commercialpurposes or to purchase real estate.Note: Your credit union should be aware of the following beforeapproving an advance used to purchase real estate or foragricultural or business purposes:• Lending for the Purchase of Residential Real Estate – The firstquestion to ask concerning the purchase of real estate using theLOANLINER ® Home Equity Plan is whether the credit union willobtain a lien on the property the borrower is purchasing. If theanswer is no, there is little complication. If the answer is yes, RESPA,ECOA, and first mortgage regulations must be considered. TheLOANLINER ® Home Equity Plan was not designed to be used forpurchase money mortgages.• Lending for Agricultural or Business Purposes – Before makingagricultural loans, lenders often ask about the value of crops sold orcontracted, past yield on acreage, inventory of farming stock andequipment, crops and feed held as assets, etc. Similarly, beforemaking business loans, lenders often ask about financial statements,inventory, turnover, profit projections, cash flow problems, etc. Theapplication used with this plan does not ask that sort of informationbecause it is only for consumer lending. Credit unions wanting touse the plan for agricultural or commercial lending should work outwith their attorney additional questions to ask applicants.Since most home equity plans will be used for consumer (personal,household or family) purposes, the plan contains all the requiredTruth in Lending disclosures necessary for this type of lending. If acredit union uses the home equity plan for agricultural or businesslending, the credit union is giving non-consumer borrowers moredisclosures and more rights than necessary. The credit union is notrequired to be so generous, but it is not prohibited from treatingnon-consumer borrowers as well as it treats consumer borrowers.38 – LOANLINER Home Equity System

Credit AgreementThe LOANLINER ® Home Equity Plan was not designed to meetspecial state laws on agricultural lending. For example, some stateshave laws that affect foreclosure proceedings when the property islarger than a certain size or is used for agriculture purposes. Thesecurity instrument used in some states limits the size of the realestate being secured. A credit union already making agricultural orbusiness loans to its members should already be aware of theserequirements. A credit union wanting to begin making agriculturalor business loans secured by the member’s home should have itsattorney check state law.20. Membership in Credit Union – Informs the borrower they must be amember of the credit union to obtain credit advances. This is requiredby your credit union’s bylaws.21. Conflicting Instructions – The borrower agrees not to give your creditunion conflicting instructions. If this occurs, the credit union has theright to suspend advances or reduce the credit limit.22. Prepayment – Informs the borrower they can prepay without anyprepayment penalty at any time.23. Cancellation by You – Informs the borrower of their ability to canceladvances under the plan by notifying the credit union in writing. If theborrower cancels future advances the borrower is still obligated tomake payments until what the borrower owes is repaid. Under a jointplan, either borrower can cancel the plan without notice to the other.24. Tax Consequences – Statement required by Regulation ZSection 226.6(e)(5).25. Statement and Notices – Informs the borrower they will receive aperiodic statement required by Regulation Z Section 226.7. Periodicstatements must be sent at least quarterly. Refer to Regulation ZSections 226.2(a)(4) and 226.5(b)(2).26. Transfer or Assignment – Informs the borrower they cannot assign theirrights and obligations. Each person is responsible for repayment of theoutstanding balance on the plan. This section informs the borrower thecredit union has the right, subject to applicable law, to sell or transferthe plan.27. Updating Information – The borrower promises to provide your creditunion with updated financial information and information aboutmatters affecting the title and value of the property securing this plan.The borrower gives your credit union the right to obtain credit reportsand appraisals at the credit union’s option and expense.Open-End Lending – 39

Credit Agreement28. Property Insurance – Informs the borrower that property insurancemay be required and the borrower has the right to obtain propertyinsurance from anyone of his or her choice.29. Voluntary Payment Protection – This paragraph generally explains theterms of Voluntary Payment Protection. The borrower will elect theVoluntary Payment Protection on the Enrollment/Application andSchedule section on the Credit Agreement. This paragraph notifies theborrower that:• You are authorized to add fees or insurance charges to the loanbalance and charge interest on the balance.• If the borrower elects the Voluntary Payment Protection, you willincrease the payment or extend the approximate term. WESTRONGLY RECOMMEND THAT THE PAYMENT BEINCREASED SO THAT THE ADVANCE IS REPAID IN THEORIGINAL APPROXIMATE TERM.• The rates may change during the plan. If so, you will send anyrequired notices of the change.30. No Waiver – Informs the borrower the credit union can delay enforcingrights provided for in the plan without losing the right to enforce themat a later time.31. Continued Effectiveness – Informs the borrower that if the law makesany term of the plan unenforceable, the other terms will remain in effect.32. Due on Sale – Informs the borrower that there is a Due on Saleprovision contained in the security instrument.33. The Following Notice is Required by California Law: Transfer of theProperty – This notice is required by California law.34. Notice to Georgia Borrowers – This notice is required by Georgia law.35. Notice to Utah Borrowers – This notice is required by Utah law.36. The Following Notice is Required by New York Law – This notice isrequired by New York law.37. Billing Rights – This disclosure is required by Regulation ZSection 226.6(d) and is included only on the Borrower Copy.40 – LOANLINER Home Equity System

Open-End Lending – 41

AddendumADDENDUMOPENING DATE MATURITY DATE CREDIT LIMIT ACCOUNT NUMBEREVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anytown, CO 12345-1234This Addendum is incorporated into and becomes a part of your LOANLINER ® Credit Agreement and Truth in Lending Disclosure.BORROWER NAME AND ADDRESSADDRESS OF PROPERTY SECURING ACCOUNTINITIAL DISCOUNTED RATE:The initial discounted rate will be in effect for 6 months.ANNUAL PERCENTAGE RATE DAILY PERIODIC RATE% %The current rate that would have applied without the discount is:INDEX RATE MARGIN ADDED TO INDEX ANNUAL PERCENTAGE RATE DAILY PERIODIC RATE% % % %SCHEDULE OF CLOSING COSTS:DESCRIPTION AMOUNT DESCRIPTION AMOUNT$ $$ $$ $$ $$ $PAYMENT INFORMATION: You can obtain credit advances for 10 years.This period is called the "draw period." At our option, we may renew orextend the draw period. After the draw period ends the repayment periodwill begin. The length of the repayment period will depend on the balanceat the time of the last advance you obtain before the draw period ends.You will be required to make monthly payments during both the draw andrepayment periods. At the time of each credit advance a payoff period willbe established. The payoff period may vary depending on the amount ofyour outstanding credit balance after you obtain an advance. The payoffperiod is shown in the following table:Range of BalancesPayoff PeriodUp To - $10,000.00 60 Monthly Payments$10,000.01 - $20,000.00 96 Monthly Payments$20,000.01 - $30,000.00 120 Monthly Payments$30,000.01 - $40,000.00 144 Monthly Payments$40,000.01 - And above 180 Monthly PaymentsThe payoff period will always be the shorter of the payoff period for youroutstanding balance or the time remaining to the maturity date. Yourpayment will be set to repay the balance after the advance, at the currentannual percentage rate, within the payoff period. Your payment will berounded up to the nearest dollar. Your payment will remain the sameunless you obtain another credit advance. Your payment may also changeif the annual percentage rate increases or decreases. Each time theannual percentage rate changes, we will adjust your payment to repay thebalance within the original payoff period. Your payment will include anyamounts past due and any amount by which you have exceeded yourcredit limit, and all other charges. Your payment will never be less thanthe smaller of $100.00, or the full amount you owe.TRANSACTION REQUIREMENTS: The maximum number of advancesyou may obtain per quarter is 6. The minimum credit advance that you canreceive is $2,000.00 for the first advance and $500.00 for each subsequentadvance.PERIODIC RATE AND CORRESPONDING ANNUAL PERCENTAGERATE: We will determine the periodic rate and the corresponding annualpercentage rate as follows. We start with an independent index, (the"Index"), which is the Wall Street Journal Prime Rate. When a range ofrates has been published, the highest rate will be used. We will use themost recent index value available to us as of 10 days before the date ofany annual percentage rate adjustment. To determine the periodic ratethat will apply to your account, we add a margin, as disclosed above, to thevalue of the Index. Then we divide this sum by the number of days in ayear (365). To obtain the annual percentage rate we will multiply theperiodic rate by the number of days in a year (365). This result is theannual percentage rate.The annual percentage rate can change quarterly on the first day ofJanuary, April, July and October. There is no limit on the amount by whichthe annual percentage rate can change during any one year period. Themaximum ANNUAL PERCENTAGE RATE that can apply is 18.0% or themaximum permitted by law, whichever is less.OTHER CHARGES:Late Charges: If your payment is more than 10 days late we maycharge you 5.0% of the payment due.Minimum Advance Amount Fee: We will charge your account $25.00 ifyou request an advance for less than the minimum advance amountpermitted under this Agreement.Non-Sufficient Funds Charge: We will charge you a fee of $25.00 if youpay your account with an insufficient funds check.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EAD002 301874 08/14/200742 – LOANLINER Home Equity System

AddendumOver the Credit Limit Fee: We will charge your account $25.00 if yourequest an advance that would exceed your credit limit.COLLECTION COSTS:For Borrowers in OK: You promise to pay, subject to any limits underapplicable law, all costs of collecting the amount you owe under thisagreement. This includes but is not limited to reasonable attorneysfees not to exceed 15% of the unpaid debt after termination oracceleration of your account and referral to an attorney not oursalaried employee, as well as legal expenses for any bankruptcy,appeals or postjudgment proceedings. If not prohibited by applicablelaw you will also pay any court costs.For Borrowers in MN: You promise to pay, subject to any limits underapplicable law, all costs of collecting the amount you owe under thisagreement. This includes but is not limited to reasonable attorneysfees and court costs as well as legal expenses for any bankruptcy,appeals or postjudgment proceedings.SHAREDRAFT ACCESS: We may authorize you to obtain credit advancesby writing sharedrafts on your home equity account. We reserve the rightnot to honor a sharedraft in the following circumstances:(a) Your Credit Limit has been or would be exceeded by paying thesharedraft.(b) Your sharedraft is post-dated. If a post-dated sharedraft is paid and asa result any other check is returned or not paid, we are not responsible.(c) Your sharedrafts have been reported lost or stolen. You should notifyus at once if your sharedrafts are lost or stolen.(d) Your sharedraft is not signed by an "Authorized Signer", which means aperson who signed this Agreement, or has signed a separate signaturecard for the account.(e) Your account has been terminated or suspended as provided in thisAgreement.(f) The amount of your sharedraft is less than the minimum amountrequired by this Agreement or you are in violation of any other transactionrequirement.If we pay any sharedraft under these conditions, you must repay us for theamount of the sharedraft and any charges permitted by law. The sharedraftitself will be evidence of your debt to us together with this Agreement. Ourliability, if any, for wrongful dishonor of a sharedraft is limited to your actualdamages. Dishonor for any reason as provided in the Agreement is notwrongful dishonor. We may not return the sharedrafts along with yourperiodic statements; however, your use of a sharedraft will be reflected onyour periodic statement as a credit advance. We do not "certify"sharedrafts drawn on your account.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EAD002 301874 08/14/2007Open-End Lending – 43

AddendumADDENDUMDocument DescriptionThe terms of the Addendum are individual to each credit union and to eachindividual borrower(s)’ plan. This Addendum is created by the answers yourcredit union gave on the home equity questionnaire.When Used:Purpose:How Distributed:This document is used to open a home equity plan forthe borrower(s). It must be given along with the CreditAgreement.The Addendum combined with the Credit Agreementcreates the contract between the credit union and theborrower(s) and gives the necessary disclosures requiredby Regulation Z.A copy of the Addendum along with a copy of the CreditAgreement and Truth in Lending Disclosure must begiven to each borrower before the first transaction underthe Plan. Regulation Z also requires that each personwho is entitled to rescind the transaction must alsoreceive a copy of the Credit Agreement/Addendum.Both documents must be given at the same time to eachborrower to meet the integrated document requirementof Regulation Z. A copy should also be placed in theborrower’s file.No. of Parts: 1Imprinting:Special Notes:Optional - Credit union name and addressFor right of rescission purposes, each consumer mustreceive a copy of the Credit Agreement and Addendumwhich provide the “material disclosures”.A consumer is any person giving their principal dwellingas security for the plan. This Addendum must be printedby CUNA Mutual. It is copyrighted. Any necessarychanges must be coordinated through LOANLINER ®Lending Systems.44 – LOANLINER Home Equity System

Addendum27ADDENDUMBORROWER NAME AND ADDRESS8 ADDRESS OF PROPERTY SECURING ACCOUNTEVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anytown, CO 12345-1234This Addendum is incorporated into and becomes a part of your LOANLINER ® Credit Agreement and Truth in Lending Disclosure.3 OPENING DATE 4 MATURITY DATE 5 CREDIT LIMIT 6 ACCOUNT NUMBER6-29-2007 6-29-2022 $25,000 00387-119 INITIAL DISCOUNTED RATE:The initial discounted rate will be in effect for 6 months.aANNUAL PERCENTAGE RATE DAILY PERIODIC RATEb% %10 The current rate that would have applied without the discount is:INDEX RATE MARGIN ADDED TO INDEX ANNUAL PERCENTAGE RATE DAILY PERIODIC RATEa % b% c% d%11 SCHEDULE OF CLOSING COSTS:DESCRIPTION AMOUNT DESCRIPTION AMOUNT$ $$ $$ $$ $$ $12a13PAYMENT INFORMATION: You can obtain credit advances for 10 years.This period is called the "draw period." At our option, we may renew orextend the draw period. After the draw period ends the repayment periodwill begin. The length of the repayment period will depend on the balanceat the time of the last advance you obtain before the draw period ends.You will be required to make monthly payments during both the draw andrepayment periods. At the time of each credit advance a payoff period willbe established. The payoff period may vary depending on the amount ofyour outstanding credit balance after you obtain an advance. The payoffperiod is shown in the following table:b Range of BalancesPayoff PeriodUp To - $10,000.00 60 Monthly Payments$10,000.01 - $20,000.00 96 Monthly Payments$20,000.01 - $30,000.00 120 Monthly Payments$30,000.01 - $40,000.00 144 Monthly Payments$40,000.01 - And above 180 Monthly PaymentsThe payoff period will always be the shorter of the payoff period for youroutstanding balance or the time remaining to the maturity date. Yourpayment will be set to repay the balance after the advance, at the currentannual percentage rate, within the payoff period. Your payment will berounded up to the nearest dollar. Your payment will remain the sameunless you obtain another credit advance. Your payment may also changeif the annual percentage rate increases or decreases. Each time theannual percentage rate changes, we will adjust your payment to repay thebalance within the original payoff period. Your payment will include anyamounts past due and any amount by which you have exceeded yourcredit limit, and all other charges. Your payment will never be less thanthe smaller of $100.00, or the full amount you owe.TRANSACTION REQUIREMENTS: The maximum number of advancesyou may obtain per quarter is 6. The minimum credit advance that you canreceive is $2,000.00 for the first advance and $500.00 for each subsequentadvance.PERIODIC RATE AND CORRESPONDING ANNUAL PERCENTAGE 14RATE: We will determine the periodic rate and the corresponding annualpercentage rate as follows. We start with an independent index, (the"Index"), which is the Wall Street Journal Prime Rate. When a range ofrates has been published, the highest rate will be used. We will use themost recent index value available to us as of 10 days before the date ofany annual percentage rate adjustment. To determine the periodic ratethat will apply to your account, we add a margin, as disclosed above, to thevalue of the Index. Then we divide this sum by the number of days in ayear (365). To obtain the annual percentage rate we will multiply theperiodic rate by the number of days in a year (365). This result is theannual percentage rate.The annual percentage rate can change quarterly on the first day ofJanuary, April, July and October. There is no limit on the amount by whichthe annual percentage rate can change during any one year period. Themaximum ANNUAL PERCENTAGE RATE that can apply is 18.0% or themaximum permitted by law, whichever is less.OTHER CHARGES:15Late Charges: If your payment is more than 10 days late we maycharge you 5.0% of the payment due.Minimum Advance Amount Fee: We will charge your account $25.00 ifyou request an advance for less than the minimum advance amountpermitted under this Agreement.Non-Sufficient Funds Charge: We will charge you a fee of $25.00 if youpay your account with an insufficient funds check.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EAD002 301874 08/14/2007Open-End Lending – 45

Addendum1617Over the Credit Limit Fee: We will charge your account $25.00 if yourequest an advance that would exceed your credit limit.COLLECTION COSTS:For Borrowers in OK: You promise to pay, subject to any limits underapplicable law, all costs of collecting the amount you owe under thisagreement. This includes but is not limited to reasonable attorneysfees not to exceed 15% of the unpaid debt after termination oracceleration of your account and referral to an attorney not oursalaried employee, as well as legal expenses for any bankruptcy,appeals or postjudgment proceedings. If not prohibited by applicablelaw you will also pay any court costs.For Borrowers in MN: You promise to pay, subject to any limits underapplicable law, all costs of collecting the amount you owe under thisagreement. This includes but is not limited to reasonable attorneysfees and court costs as well as legal expenses for any bankruptcy,appeals or postjudgment proceedings.SHAREDRAFT ACCESS: We may authorize you to obtain credit advancesby writing sharedrafts on your home equity account. We reserve the rightnot to honor a sharedraft in the following circumstances:(a) Your Credit Limit has been or would be exceeded by paying thesharedraft.(b) Your sharedraft is post-dated. If a post-dated sharedraft is paid and asa result any other check is returned or not paid, we are not responsible.(c) Your sharedrafts have been reported lost or stolen. You should notifyus at once if your sharedrafts are lost or stolen.(d) Your sharedraft is not signed by an "Authorized Signer", which means aperson who signed this Agreement, or has signed a separate signaturecard for the account.(e) Your account has been terminated or suspended as provided in thisAgreement.(f) The amount of your sharedraft is less than the minimum amountrequired by this Agreement or you are in violation of any other transactionrequirement.If we pay any sharedraft under these conditions, you must repay us for theamount of the sharedraft and any charges permitted by law. The sharedraftitself will be evidence of your debt to us together with this Agreement. Ourliability, if any, for wrongful dishonor of a sharedraft is limited to your actualdamages. Dishonor for any reason as provided in the Agreement is notwrongful dishonor. We may not return the sharedrafts along with yourperiodic statements; however, your use of a sharedraft will be reflected onyour periodic statement as a credit advance. We do not "certify"sharedrafts drawn on your account.©CUNA MUTUAL INSURANCE SOCIETY, 1992, 1999 ALL RIGHTS RESERVED EAD002 301874 08/14/200746 – LOANLINER Home Equity System

AddendumDocument ExplanationThe Addendum on the preceding page is a representative example of whatyour credit union’s Addendum may look like. The terms in your credit union’sAddendum may differ to reflect the answers your credit union gave on thehome equity questionnaire.Many provisions in this Addendum are exactly the same as the provisions inthe “Early Disclosure.” However, the Addendum is transaction-specific foreach individual borrower’s plan and must reflect the exact terms between theborrower and the credit union at the time the plan is opened. Therefore, thereare blank lines for the credit union to complete before giving theAddendum, along with the Credit Agreement, to the borrower. If you havemore than one home equity plan, you may have a separate Early Disclosureand Addendum for each plan.Signature – When the borrower(s) signs the Credit Agreement they areagreeing to be bound by the terms of the Credit Agreement and Addendum.Therefore, no signature on the Addendum is required.Completion InstructionsPlease refer to the document on the preceding page for the correspondingnumbers.1. Credit Union Information – If your credit union name and addresswere not imprinted by CUNA Mutual, enter the applicable informationhere.2. This statement makes the Addendum part of the Credit Agreement andTruth in Lending Disclosure.3. Opening Date – Enter the date the Credit Agreement and securityinstrument are signed.4. Maturity Date – This is the maturity date of the security instrument.5. Credit Limit – Enter the dollar amount of the approved credit limit.6. Account Number – Enter the number you assigned to the borrower’shome equity plan.7. Borrower Name and Address – Enter the names and addresses of allborrowers.8. Address of Property Securing Account – Enter the address of theproperty used as security on the plan.9. Initial Discount Rate – If your credit union offers an initial discountrate, this disclosure is necessary to meet the requirement of RegulationZ Section 226.6(a)(2).Open-End Lending – 47

Addenduma. The effective date or the length of the discount period will beimprinted by CUNA Mutual.b. Enter the actual initial discounted Annual Percentage Rate and DailyPeriodic Rate (DPR) at the time the plan is opened.10. Current Rate – Your credit union must complete this section whetheran initial discount applies or not. The four blanks must be completedreflecting the exact information at the time the plan is opened.a. Index Rate – Enter the amount of the index rate currently in effect.Do not add the margin to the index to arrive at this figure.b. Margin Added to Index – Enter the margin without the discount.c. Annual Percentage Rate – Enter the APR had the initial rate notbeen discounted. Be sure you calculated the APR and DPR byusing the method and terms described in the Periodic Rate andCorresponding Annual Percentage Rate in paragraph #14 below.The language on the Addendum regarding how your credit uniondetermines the periodic rate reflects your credit union’s answers onthe home equity questionnaire.d. Daily Periodic Rate – Enter the DPR had the initial rate not beendiscounted. Check to make sure your rates are figured by using themethod described in paragraph #14 below.11. Schedule of Closing Costs – This schedule must be completed at thetime you open the plan and must reflect the actual amount of all othercharges or finance charges as required by Regulation Z Section 226.6(b).A description of the fee and the actual amount must be completed foreach charge.Note:Example: Description AmountAppraisal Fee $150.00Credit Report Fee 25.00Title Examination 175.00Recording Fee 40.00The total of the closing costs must be reflected on the firstperiodic statement if financed.The remainder of the addendum reflects the answers your credit union gaveon the questionnaire.12. Payment Informationa. The length of the draw period/repayment period is reflected here.The length of the repayment period will always depend on theborrower’s outstanding balance. The language was written to meetthe requirements of Regulation Z Section 226.6(e)(2).48 – LOANLINER Home Equity System

Addendumb. The payment terms will vary depending on your credit union’sanswers on the questionnaire. This language is written to meet therequirements of Regulation Z Section 226.6(e)(2).13. Transaction Requirements – This section reflects the transactionrequirements your credit union chose. This language is written to meetthe requirements of Regulation Z Section 226.6(e)(4).14. Periodic Rate and Corresponding Annual Percentage Rate – Theinformation in this paragraph reflects your answers on thequestionnaire. This language is written to meet the requirement ofRegulation Z Section 226.6(e)(7).15. Other Charges – If your credit union charges fees such as late chargesor annual fees, they will be disclosed in this section. This language iswritten to meet the requirement of Regulation Z Section 226.6(b).16. Collection Costs – If your credit union charges collection costs, theywill be disclosed in this section. You may choose standard statecollections costs or write your own.17. Sharedraft Access – This section explains circumstances where yourcredit union may not honor a sharedraft.Open-End Lending – 49

Security InstrumentWHEN RECORDED, MAIL TOSPACE ABOVE THIS LINE FOR RECORDER’S USEREVOLVING CREDIT DEED OF TRUSTTHIS DEED OF TRUST CONTAINS A DUE-ON-SALE PROVISION AND SECURES INDEBTEDNESS UNDER A CREDIT AGREEMENT WHICH PROVIDES FORA REVOLVING LINE OF CREDIT AND MAY CONTAIN A VARIABLE RATE OF INTEREST.THIS DEED OF TRUST (“Security Instrument”) is made on _____________________________________________________, ________,The Grantor is_____________________________________________________________________________________________________________________________________________________________________________________________________________________________ (“Borrower”).The Trustee is __________________________________________________________________________________________________ (“Trustee”).The Beneficiary is _________________________________________________________________________________________________________,a corporation organized and existing under the laws of ___________________________________________________________________________,whose address is ________________________________________________________________________________________________________________________________________________________________________________________________________________________________(“Lender”).IN CONSIDERATION of the indebtedness herein recited and the trust herein created;TO SECURE to Lender:(1) The repayment of all indebtedness due and to become due under the terms and conditions of the LOANLINER ® Home Equity Plan CreditAgreement and Truth-in-Lending Disclosures made by Borrower and dated the same day as this Security Instrument, and all modifications,amendments, extensions and renewals thereof (herein “Credit Agreement”). Lender has agreed to make advances to Borrower under theterms of the Credit Agreement, which advances will be of a revolving nature and may be made, repaid and remade from time to time.Borrower and Lender contemplate a series of advances to be secured by this Security Instrument. The total outstanding principal balanceowing at any one time under the Credit Agreement (not including finance charges thereon at a rate which may vary from time to time, andany other charges and collection costs which may be owing from time to time under the Credit Agreement) shall not exceed _____________________________________________________________________________________________________________________($______________________). That sum is referred to herein as the Maximum Principal Balance and referred to in the Credit Agreementas the Credit Limit. On the Final Payment Date, __________________ years from the date of this Security Instrument, the entire indebtednessunder the Credit Agreement, if not paid earlier, is due and payable.(2) The payment of all other sums advanced in accordance herewith to protect the security of this Security Instrument, with finance chargesthereon at a rate which may vary as described in the Credit Agreement.(3) The performance of Borrower’s covenants and agreements under this Security Instrument and under the Credit Agreement.BORROWER irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the County of______________________, State of Montana:which has the address of __________________________________________________________________________________________________,(Street)____________________________________________________________________, Montana ____________________ (herein “Property Address”);(City)(Zip Code)TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and fixtures, all of whichshall be deemed to be and remain a part of the property covered by this Security Instrument; and all of the foregoing, together with said property (orthe leasehold estate if this Security Instrument is on a leasehold) are hereinafter referred to as the “Property.”© CUNA MUTUAL INSURANCE SOCIETY, 1991, ALL RIGHTS RESERVED PAGE 1 EMT965 6849LL50 – LOANLINER Home Equity System

Security InstrumentSecurity Instrument(Mortgage, Deed of Trust or Security Deed)Document DescriptionWhen Used: A Mortgage, Deed of Trust or Security Deed is usedwhenever a security interest is taken by the credit unionin real estate which may or may not include a dwelling.The security instrument is different for every state. Ifyou lend in more than one state you must obtain asecurity instrument for each state you lend in.Purpose:How Distributed:The security instrument gives the credit union the rightto foreclose on a dwelling if the borrower is in default.The credit union should retain the original securityinstrument for recording. State law and credit unionpolicy will determine which parties are entitled toreceive a copy of the security instrument. The documentmay be photocopied for distribution to the appropriateparties.No. of Parts: 1Imprinting:Special Notes::NoneIn some states a security instrument for real estate iscalled a Mortgage. In other states it is called a Deed ofTrust, Trust Deed or Security Deed. The basic differencebetween a Mortgage and Deed of Trust concerns the waytitle to the property is held and how foreclosure takesplace. In other respects, both forms of the securityinstrument are similar. Given that state laws can varyconsiderably, be sure to consult your own attorney todetermine if your state poses any unique concerns. Theseare to be used as a guide.Open-End Lending – 51

Security InstrumentWHEN RECORDED, MAIL TO1SPACE ABOVE THIS LINE FOR RECORDER’S USEREVOLVING CREDIT DEED OF TRUSTTHIS DEED OF TRUST CONTAINS A DUE-ON-SALE PROVISION AND SECURES INDEBTEDNESS UNDER A CREDIT AGREEMENT WHICH PROVIDES FORA REVOLVING LINE OF CREDIT AND MAY CONTAIN A VARIABLE RATE OF INTEREST.THIS DEED OF TRUST (“Security Instrument”) is made on _____________________________________________________, 2 ________, 3The Grantor is_______________________________________________________________________________________________________________4______________________________________________________________________________________________________________ (“Borrower”).The Trustee is __________________________________________________________________________________________________ 5(“Trustee”).The Beneficiary is _________________________________________________________________________________________________________,6a corporation organized and existing under the laws of ___________________________________________________________________________,7whose address is ____________________________________________________________________________________________________________8____________________________________________________________________________________________________________________(“Lender”).IN CONSIDERATION of the indebtedness herein recited and the trust herein created;TO SECURE to Lender:(1) The repayment of all indebtedness due and to become due under the terms and conditions of the LOANLINER ® Home Equity Plan CreditAgreement and Truth-in-Lending Disclosures made by Borrower and dated the same day as this Security Instrument, and all modifications,amendments, extensions and renewals thereof (herein “Credit Agreement”). Lender has agreed to make advances to Borrower under theterms of the Credit Agreement, which advances will be of a revolving nature and may be made, repaid and remade from time to time.Borrower and Lender contemplate a series of advances to be secured by this Security Instrument. The total outstanding principal balanceowing at any one time under the Credit Agreement (not including finance charges thereon at a rate which may vary from time to time, andany other charges and collection costs which may be owing from time to time under the Credit Agreement) shall not exceed __________ 9___________________________________________________________________________________________________________($______________________). 10That sum is referred to herein as the Maximum Principal Balance and referred to in the Credit Agreementas the Credit Limit. On the Final Payment Date, __________________ 11 years from the date of this Security Instrument, the entire indebtednessunder the Credit Agreement, if not paid earlier, is due and payable.(2) The payment of all other sums advanced in accordance herewith to protect the security of this Security Instrument, with finance chargesthereon at a rate which may vary as described in the Credit Agreement.(3) The performance of Borrower’s covenants and agreements under this Security Instrument and under the Credit Agreement.BORROWER irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in the County of______________________, 12State of Montana:13which has the address of __________________________________________________________________________________________________,14____________________________________________________________________, Montana ____________________ 15 (herein “Property Address”);(City)TOGETHER with all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances and fixtures, all of whichshall be deemed to be and remain a part of the property covered by this Security Instrument; and all of the foregoing, together with said property (orthe leasehold estate if this Security Instrument is on a leasehold) are hereinafter referred to as the “Property.”© CUNA MUTUAL INSURANCE SOCIETY, 1991, ALL RIGHTS RESERVED PAGE 1 EMT965 6849LL(Street)(Zip Code)52 – LOANLINER Home Equity System

Security InstrumentCompletion InstructionsPlease refer to the document on the preceding page for the correspondingnumbers.The first paragraph of the security instrument contains blank lines which mustbe completed by your credit union. The Deed of Trust used for this examplecontains a blank line for the name of the trustee. Most state laws prohibit thecredit union from acting as trustee. A Mortgage will not include any referenceto a trustee.1. When Recorded Mail To – Enter the credit union’s name and addressunless the credit union wants the recorded security instrument to bemailed elsewhere.2. Month and Day the security instrument is signed.3. Year the security instrument is signed.4. Grantor – Enter the name of each person who signs the securityinstrument. These are the owners of the property. In most cases, theborrowers who signed the Credit Agreement will be the person(s) whosigns the security instrument. It is possible the owner of the propertymay not be a borrower.Real estate law requires accuracy in the form of the names used. Tokeep public real estate records accurate so title to real estate is clear, theform of a person’s name should be the same on all documents relatingto a particular piece of real estate. For example, if William Q. Jones isthe name used when the borrower first purchased the property, thenthe name used on the security instrument should be William Q. Jones.The borrower should sign as William Q. Jones, not Bill Jones or WilliamJones.5. Trustee – Enter the name of the party that will act as trustee.6. Beneficiary – Enter the name of the credit union.7. If the credit union is state chartered, enter the applicable state of incorporation;if federally chartered, enter United States Federal Credit Union Act.8. Address of the credit union.9. Dollar amount of the credit limit in written form. For example,Ten Thousand Dollars.10. Dollar amount of the credit limit in numerical form. For example, 10,000.00.11. Length in years of the security instrument.12. County where the property is located.13. Legal description of the property. The credit union, for purposes ofproperty identification, must provide an adequate legal description ofthe property being offered to secure the loan. The credit union shouldconsults its own legal counsel for advice on what type of description isrequired for your state.Open-End Lending – 53

Security InstrumentComplete if applicable:16This Property is part of a condominiumproject known as ___________________________________________________________________________________________________________________________________________________________________________.This Property includes Borrower’s unit and all Borrower’s rights in the common elements of the condominium project.This Property is in a Planned Unit Development known as ______________________________________________________________.17Borrower covenants that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property, and thatthe Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claimsand demands, subject to encumbrances of record.Borrower and Lender covenant and agree as follows:1. Payment of Principal, Finance Charges and Other Charges. Borrower shall promptly pay when due all amounts borrowed under theCredit Agreement, all finance charges and applicable other charges and collection costs as provided in the Credit Agreement.2. Funds for Taxes and Insurance. Subject to applicable law, Lender, at Lender’s option, may require Borrower to pay to Lender on the day monthlypayments of principal and finance charges are payable under the Credit Agreement, until all sums secured by this Security Instrument are paid in full, a sum(herein “Funds’’) equal to one-twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) whichmay attain priority over this Security Instrument, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insuranceand flood insurance, if applicable, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonableestimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holderof a prior mortgage or deed of trust if such holder is an institutional Lender.If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federalor state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and groundrents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lenderpays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of executionof this Security Instrument that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest tobe paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accountingof the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional securityfor the sums secured by this Security Instrument.If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes,assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and groundrents as they fall due, such excess shall be, at Borrower’s option, either promptly repaid to Borrower or credited to Borrower on monthly installmentsof Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as theyfall due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require.Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. Ifunder paragraph 22 hereoffailurethe Propertyto cureis soldthe eventor the Propertyof defaultisonotherwiseor beforeacquiredthe dateby Lender,specifiedLenderin theshallnoticeapply,mayno laterresultthaninimmediatelyaccelerationprioroftothethesumssalesecured by this Securityof the Property or its acquisitionInstrumentby Lender,andanysaleFundsof theheldProperty;by Lenderandat(e)theanytimeotherof applicationinformationas a creditrequiredagainstby applicablethe sums securedlaw. Theby thisnoticeSecurityshallInstrument.further inform Borrower of the right3. ApplicationtoofreinstatePayments.afterUnlessacceleration,applicableif applicable,law providesandotherwise,the rightallto bringpaymentsa courtreceivedactionbyto assertLendertheundernonexistencethe CreditofAgreementan event ofanddefault or any other defenseparagraphs 1 and 2 hereofofshallBorrowerbe appliedto accelerationby Lender firstandinsale.paymentIf theofeventamountsof defaultpayableistonotLendercuredbyonBorroweror beforeunderthe dateparagraphspecified2 hereof,in thesecond,notice,(inLender, at Lender’s option,the order Lender chooses)withoutto any financefurthercharges,notice orotherdemand,chargesmayanddeclarecollectiondefault,costsmayowing,declareand third,all sumsto thesecuredprincipalbybalancethis SecurityunderInstrumentthe Credit Agreement.to be immediately due and payable,4. Prior Mortgagesand mayand DeedsinvokeoftheTrust;powerCharges;of saleLiens.and anyBorrowerother remediesshall performpermittedall of Borrower’sby applicableobligationslaw. Lenderunder anyshallmortgage,be entitleddeedtoofcollecttrustall reasonable costs andor other security agreementexpenseswith a lienincurredwhich hasin pursuingpriority overthethisremediesSecurityprovidedInstrument,in thisincludingparagraphBorrower’s22, including,covenantsbutto makenot limitedpaymentsto, reasonablewhen due. Exceptattorneys’ fees.to the extent that any such chargesIforLenderimpositionsinvokesarethetopowerbe paidoftosale,LenderLenderundershallparagraphgive Trustee2, Borrowernoticeshallof thepayoccurrenceor cause toofbeanpaideventall taxes,of defaultassessmentsand of Lender’s election to causeand other charges, fines andtheimpositionsProperty toattributablebe sold. Lenderto theorPropertyTrusteewhichshall recordmay attaina noticea priorityof saleoverin eachthis Securitycounty inInstrument,which the Propertyand leaseholdor somepaymentspart thereoforis located, and Trusteeground rents, if any. Withinshallfive daysmailaftercopiesanyofdemandsuch noticeby Lender,in theBorrowermannershallprescribedexhibit tobyLenderapplicablereceiptslawshowingto Borrowerthat allandamountsto the otherdue underpersonsthis paragraphprescribed by applicable law. Afterhave been paid when due.the lapse of such time as may be required by applicable law and after posting on the Property and publication of the notice of sale, Trustee, without5. Hazard Insurance.demandBorroweron Borrower,shallshallkeepsellthe improvementsthe Property atnowpublicexistingauctionortohereafterthe highesterectedbidderonatthethePropertytime andinsuredplaceagainstand underlossthebytermsfire,designated in the noticehazards included within theoftermsale“extendedin one orcoverage,’’more parcelsfloods,andandin suchsuchorderotherashazardsTrusteeasmayLenderdetermine.may requireTrusteeand inmaysuchpostponeamountssaleandofforallsuchor anyperiodsparcelasof the Property by publicLender may require. UnlessannouncementLender in writingat therequirestime andotherwise,place oftheanypolicypreviouslyshall providescheduledinsurancesale.onLendera replacementor Lender’scostdesigneebasis in anmayamountpurchasenot lessthethanProperty at any sale.that necessary to comply with anyTrusteecoinsuranceshall deliverpercentageto thestipulatedpurchaserin theTrustee’shazarddeedinsuranceconveyingpolicy,theandPropertythe amountso soldof coveragewithoutshallany covenantbe no lessorthanwarranty,theexpressed or implied.Maximum Principal BalanceTheplusrecitalsthe fullinamountthe Trustee’sof any liendeedwhichshallhasbepriorityprimaoverfaciethisevidenceSecurityofInstrument.the truth of the statements made therein. Trustee shall apply the proceeds ofThe insurancethecarriersale inprovidingthe followingthe insuranceorder: (a)shalltobeallchosenreasonableby Borrowercosts andsubjectexpensesto approvalof thebysale,Lender;including,provided,butthatnotsuchlimitedapprovalto, reasonable Trustee’s andshall not be unreasonablyattorneys’withheld.feesAll insuranceand costspoliciesof titleandevidence;renewals(b)thereofto all sumsshallsecuredbe in a formby thisacceptableSecurity Instrument;to Lender andandshall(c) theincludeexcess,a standardif any, to the person or personsmortgage clause in favor oflegallyand inentitleda form acceptablethereto ortotoLender.the clerkLenderor recordershall haveof thethecountyright toinholdwhichthe policiesthe saleandtookrenewalsplace.thereof, subject to the termsof any mortgage, deed of trust or23.otherBorrower’ssecurity agreementRight to Reinstate.with a lienIfwhichBorrowerhasmeetsprioritycertainoverconditions,this SecurityBorrowerInstrument.shall have the right to have enforcement of this Security InstrumentIn the eventdiscontinuedof loss, Borrowerat anyshalltime priorgive promptto the earliernoticeofto(i)thetheinsurancesale of thecarrierPropertyandpursuantLender.toLenderany powermayofmakesaleproofcontainedof lossin thisif notSecuritymadeInstrument or (ii) entry of apromptly by Borrower. All insurancejudgment enforcingproceeds arethisherebySecurityassignedInstrument.to LenderThoseandconditionsshall bearepaidthatto LenderBorrower:to the(a)extentpays Lenderof all sumsall sumssecuredwhichby thiswouldSecuritythen be due under this SecurityInstrument, subject to theInstrumentterms of anyandmortgage,the CreditdeedAgreementof trusthador securityno accelerationagreementoccurred;with a(b)liencureswhichallhasotherprioritydefaultsoverunderthis Securitythis SecurityInstrument.InstrumentUnlessand the Credit Agreement; (c)Lender and Borrower otherwisepays allagreereasonablein writing,expensesinsuranceincurredproceedsin enforcingshall bethisappliedSecurityto restoreInstrument,or repairincluding,the Property,but notiflimitedit is economicallyto, reasonablefeasibleattorneys’to dofees;so.and (d) takes such actionIf the PropertyasisLenderabandonedmay reasonablyby Borrower,requireor iftoBorrowerassure thatfailsthetolienrespondof thistoSecurityLenderInstrument,within 30 daysLender’sfromrightsthe datein thenoticePropertyis mailedand Borrower’sby Lenderobligation to pay the sumsto Borrower that the insurancesecuredcarrierby thisoffersSecurityto settleInstrumenta claimshallfor insurancecontinue unchanged.benefits, LenderUponisreinstatementauthorized tobycollectBorrower,and applythis Securitythe insuranceInstrumentproceedsand theatobligations secured herebyLender’s option either to restorationshall remainorfullyrepaireffectiveof theasPropertyif no accelerationor to thehadsumsoccurred.securedHowever,by this Securitythis rightInstrument.to reinstate shall not apply in the case of acceleration under paragraph 21.6 Preservation and Maintenance24. Reconveyance.of Property;ThisLeaseholds;Security InstrumentCondominiums;secures aPlannedrevolvingUnitlineDevelopmentsof credit and advancesBorrowermayshallbe made,keep therepaid,Propertyand remade from time to time,under the terms of the Credit Agreement. When, according to the terms of the Credit Agreement, no more advances will be made, and Borrower has paidall sums secured by this Security Instrument (or earlier if required by applicable law), Lender shall request Trustee to release this Security Instrument andshall surrender the Credit Agreement to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled thereto. Tothe extent permitted by law, Lender may charge such persons a fee for such discharge, and may require them to pay costs of recordation, if any.25. Substitute Trustee. Lender may from time to time in Lender’s discretion remove Trustee and appoint a successor trustee to any Trusteeappointed hereunder. Without conveyance of the Property, the successor trustee shall succeed to all the title, power and duties conferred upon the Trusteeherein and by applicable law.26. Area or Property. The area of the Property is not more than thirty acres.REQUEST FOR NOTICE OF DEFAULT AND FORECLOSUREUNDER SUPERIOR MORTGAGES OR DEEDS OF TRUSTBorrower and Lender request the holder of any mortgage, deed of trust or other encumbrance with a lien which has priority over this SecurityInstrument to give Notice to Lender, at Lender’s address set forth on page one of this Security Instrument, of any default under the superior encumbranceand of any sale or other foreclosure action.BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executedby Borrower and recorded with it.18 ____________________________________________________ (Seal)Borrower____________________________________________________ (Seal)STATE OF MONTANA, _________________________________19County ss:On this _________________ 20 day of ______________________________________________, 21 _________, 22 before me, a Notary Public for theState of Montana, personally appeared _______________________________________________________________________________________23_________________________________________________________________ known to me to be the person(s) whose name(s) _______________ 24subscribed to the foregoing instrument, and acknowledged to me that ________________________________ 25executed the same.My Commission expires: 27_________________________________________________________26Notary Public for Montana28Residing at ________________________________________, MontanaREQUEST FOR RECONVEYANCETO TRUSTEE:The undersigned is the holder of the Credit Agreement secured by this Security Instrument. Said Credit Agreement, together with all otherindebtedness secured by this Security Instrument has been paid in full. You are hereby directed to cancel said Credit Agreement and this SecurityInstrument, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Security Instrument to the personor persons legally entitled thereto.29 30Dated: _____________________________________________________________________________________________________BorrowerPAGE 454 – LOANLINER Home Equity System

Security Instrument14. Street address and city or town where the property is located.15. Zip code where the property is located.16. If the property is part of a condominium project, indicate the name ofthe condominium project.17. If property is in a planned unit development, indicate the name of theplanned unit development.18. Names and signatures of the owners of the dwelling. Enter the name(s) ofthe owner(s) of the dwelling. The owner(s) should sign the securityinstrument next to their typed name(s).Note: The following sections refer to the acknowledgment. Theacknowledgment section (notary section) may differ due to state lawrequirements. This sample acknowledgment is to be used solely as a guide.The acknowledgement will occur on the same date the security instrumentis signed by the borrower(s).19. County in which the security instrument is acknowledged.20. Numerical day of the month the security instrument is acknowledged.21. Month the security instrument is acknowledged.22. Year the security instrument is acknowledged.23. Name(s) of the owners of the dwelling.24. Insert “is” if the dwelling is owned by an individual or “are” for joint owners.25. Insert “he,” “she” or “they” depending on whether the owners areindividual or joint.26. Signature of the notary public.27. Month, day and year the commission of the notary public expires.28. Address of the notary public.29. Date credit union sends notice to trustee when the borrower has repaid allamounts borrowed. To be completed at the time the credit union is releasingtheir security interest in the property.30. Name of the credit union and signature of authorized representative.To be completed at the time the credit union is releasing their security interestin the property.Open-End Lending – 55

Notice of Right to CancelINSTRUCTIONS1. Check box to identify Open-End account or Closed-End transaction. 3. Have each member/borrower sign Acknowledgment of Receipt.2. Check the box for the appropriate transaction type. 4. Give each member/borrower two copies of Notice of Right to Cancel.Notice ofRight to Cancel■ NOTICE OF YOUR RIGHT TO CANCEL — Open End❏ ESTABLISHING AN ACCOUNT The Lender has agreed to establish an open-end credit account for you, and you have agreed to give the Lender a (mortgage/deed of trust) (on/in) your home as security for the account. You have a legal right under federal and some state laws to cancel the account, without cost, within threebusiness days after the latest of the following events:1. the opening date of your account which is __________________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the account.If you cancel the account, the (mortgage/deed of trust) (on/in) your home is also cancelled. Within 20 days of receiving your notice, the Lender must take the necessarysteps to reflect the fact that the (mortgage/deed of trust) (on/in) your home has been cancelled. The Lender must return to you any money or property you have given to usor to anyone else in connection with the account.You may keep any money or property the Lender has given you until the Lender has done the things mentioned above, but you must then offer to return the money orproperty. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the locationof the property. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of youroffer, you may keep it without further obligation.❏ INCREASING THE SECURITY You have agreed to increase the amount of the (mortgage/deed of trust) (on/in) your home that the Lender holds as security foryour open-end credit account. You have a legal right under federal and some state laws to cancel the increase, without cost, within three business days after the latest of thefollowing events:1. the date of the increase in the security which is ______________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the increase in the security.If you cancel the increase in the security, your cancellation will apply only to the increase in the amount of the (mortgage/deed of trust). It will not affect the amount youpresently owe on your account, and it will not affect the (mortgage/deed of trust) the Lender already has (on/in) your home. Within 20 calendar days after the Lender receivesyour notice of cancellation, the Lender must take the necessary steps to reflect the fact that any increase in the (mortgage/deed of trust) (on/in) your home has been cancelled.The Lender must also return to you any money or property you have given the Lender or to anyone else in connection with this increase.You may keep any money or property the Lender has given you until the Lender has done the things mentioned above, but you must then offer to return the money orproperty. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the locationof the property. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of youroffer, you may keep it without further obligation.❏ INCREASING THE CREDIT LIMIT The Lender has agreed to increase the credit limit on your open-end credit account. The Lender has a (mortgage/deed oftrust) (on/in) your home as security for your account. Increasing the credit limit will increase the amount of the (mortgage/deed of trust) (on/in) your home. You have a legalright under federal and some state laws to cancel the increase in your credit limit, without cost, within three business days after the latest of the following events:1. the date of the increase in your credit limit which is___________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the increase in your credit limit.If you cancel, your cancellation will apply only to the increase in your credit limit and to the (mortgage/deed of trust) that resulted from the increase in your credit limit. It willnot affect the amount you presently owe, and it will not affect the (mortgage/deed of trust) the Lender already has (on/in) your home. Within 20 calendar days after the Lenderreceives your notice of cancellation, the Lender must take the necessary steps to reflect the fact that any increase in the (mortgage/deed of trust) (on/in) your home has beencancelled. The Lender must also return to you any money or property you have given to the Lender or to anyone else in connection with this increase.You may keep any money or property the Lender has given you until the Lender does the things mentioned above, but you must then offer to return the money or property.If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of theproperty. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of your offer, youmay keep it without further obligation.■ NOTICE OF YOUR RIGHT TO CANCEL — Closed End❏ GENERAL RIGHT TO CANCEL You are entering into a transaction that will result in a (mortgage/deed of trust) (on/in) your home. You have a legal right underfederal and some state laws to cancel this transaction, without cost, within three business days from whichever of the following events occurs last:1. the date of the transaction which is _______________________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel.If you cancel the transaction, the (mortgage/deed of trust) is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflectthe fact that the (mortgage/deed of trust) (on/in) your home has been cancelled, and we must return to you any money or property you have given to us or to anyone elsein connection with this transaction.You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property, If it isimpractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property.Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without furtherobligation.❏ REFINANCING RIGHT TO CANCEL (REFINANCING WITH ORIGINAL CREDITOR) You are entering into a new transaction to increase the amount ofcredit provided to you. Your home is the security for this new transaction. You have a legal right under federal and some state laws to cancel the new transaction, withoutcost, within three business days from whichever of the following events occurs last:1. the date of this new transaction, which is ___________________ ; or2. the date you received your new Truth in Lending disclosures; or3. the date you receive this notice of your right to cancel.If you cancel this new transaction, it will not affect any amount that you presently owe. Your home is the security for that amount. Within 20 calendar days after we receiveyour notice of cancellation of this new transaction, we must take the steps necessary to reflect the fact that your home does not secure the increase of credit. We must alsoreturn any money you have given to us or anyone else in connection with this new transaction.You may keep any money we have given you in this new transaction until we have done the things mentioned above, but you must then offer to return that money at theaddress below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation.HOW TO CANCELIf you decide to cancel the account/transaction designated above, you may do so by notifying the Lender in writing, at ________________________________________________________________________________________________________________________________________________________________________________________________.You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep onecopy of this notice no matter how you notify the Lender because it contains important information about your rights.If you cancel by mail or telegram, you must send the notice no later than midnight of (date) __________________________ (or midnight of the third business day following thelatest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time.I WISH TO CANCELXBorrower/Owner of PropertyACKNOWLEDGMENT OF RECEIPTYou have received two copies of this Notice of Right to Cancel and one copy of theTruth in Lending Disclosures from the Lender and have read and understand them. Ifthis transaction is to increase the amount of the Mortgage/Deed of Trust on/in yourhome or to increase your credit limit, you acknowledge that you received Truth inLending Disclosures at the time the original account was established.You know of no individual(s) not signing this statement who also lives in yourhome as their principal residence and has any kind of an ownership interest in thatproperty.XBorrower/Owner of PropertyXDateSTATEMENT OF NONCANCELLATION (Optional Section)If you decide NOT to cancel your account/transaction at the end of the three-day perioddescribed in the above Notice, please read, sign and date the following Statement.Please return this statement to the Lender at the address in the above Notice.Statement of Noncancellation — You have chosen not to cancel the account/transaction referenced in the above Notice. You understand that the Lender will allowyou to receive funds in reliance on this statement.You know of no individual(s) not signing this statement who also lives in your homeas their principal residence and has any kind of ownership interest in that property.Borrower/Owner of PropertyBorrower/Owner of PropertyDateBorrower/Owner of PropertyDate© CUNA MUTUAL INSURANCE SOCIETY, 1991, 92, 99, 2007, ALL RIGHTS RESERVED CREDIT UNIONEST477XXDateDate56 – LOANLINER Home Equity System

Notice of Right to CancelNotice of Right to CancelDocument DescriptionWhen Used:This document must be used when a security interest ina consumer's principal dwelling is or will be retained oracquired to secure a credit transaction.Purpose:This document is designed to comply with therequirements of Regulation Z regarding a consumer'sright to rescind a credit transaction secured by theconsumer's principal dwelling.**How Distributed: Each Consumer* who has an ownership interest in thedwelling being used to secure the credit transaction has aright to rescind the transaction. Each consumer must begiven:No. of Parts: 5• two copies of the Notice of Right to Cancel• one copy of the Credit Agreement and Addendum*Consumer: For rescission purposes this means a naturalperson in whose principal dwelling a security interest isor will be retained or acquired to secure the credittransaction. This person does not have to be a borrowerinvolved in the transaction. For example, if only onespouse enters into a secured transaction, the otherspouse is a consumer if the ownership interest of thatspouse is subject to the security interest.Components:Imprinting:Special Notes:Part 1 - Credit union copyParts 2 - 5 Borrower's copies — there are four borrower’scopies. Each person entitled to rescind must receivetwo copies.Optional - Credit union name, address, telephonenumber and logoThis Notice of Right to Cancel can be used for open-endor closed-end transactions. The document contains bothopen-end and closed-end language. Therefore, it isimportant that the credit union inform the partiesentitled to receive the right to cancel what portions ofthe document apply.**For Texas, the owner of the homestead as well as their spouse has the rightto rescind the transaction.Open-End Lending – 57

Notice of Right to CancelDocument ExplanationThe Right of Rescission is the consumer's right to cancel an agreement withoutpenalty. Regulation Z Section 226.15 provides that a consumer will have theright to rescind a transaction or agreement in which a security interest is orwill be taken in the consumer's principal dwelling.A principal dwelling is a residential structure containing 1 to 4 units whetheror not attached to real property. A principal dwelling may be a mobile home,houseboat, trailer, condominium or cooperative. A vacation or second homenot currently used as the principal dwelling would not qualify for purposes ofrescission. A consumer can have only one principal dwelling at a time.The Right of Rescission does not apply to all transactions. Examples of thosetransactions not subject to a Right of Rescission include but are not limited to:residential mortgage (purchase money) transactions, transactions in which astate agency is a creditor, and credit extensions not subject to the regulationeven if the principal dwelling is security, such as business credit secured bythe principal dwelling. See Regulation Z Section 226.15 (open-end) for moredetail on transactions excluded from the Right of Rescission.If a transaction or agreement is subject to a Right of Rescission, your creditunion must provide each consumer entitled to rescind the particulartransaction or agreement:• two completed copies of the Notice of Right to Cancel; and• one copy of the “material disclosures.” In open-end transactions,the material disclosures are included in the Credit Agreementand Addendum.If all required information is properly given to a consumer, the consumer canexercise the Right of Rescission until midnight of the third business dayfollowing the latest of:• The date of the event which gave rise to the Right of Rescission(i.e., the date of the transaction); or• The date the consumer received all material disclosures (CreditAgreement and Addendum); or• The date the consumer received the Notice of Right to Cancel documents.In most cases, these three events will take place at closing. Given that theconsumer will have a three-day period in which to rescind the transaction oragreement, it is very important that the credit union not disburse any funds,perform any services or deliver any materials until the rescission period haspassed. (See the Commentary to Regulation Z Section 226.15(c) for reference.)58 – LOANLINER Home Equity System

Notice of Right to CancelFailure by the credit union to provide the material disclosures or the Notice ofRight to Cancel to the consumer will result in the consumer's right to rescindbeing extended and will only automatically expire on the earliest of thefollowing:• Three years after the consumer signs the security instrument; or• The transfer of all the consumer's interest in the property; or• The sale of the consumer's interest in the property.If the consumers exercise their right to rescind, the security interest the creditunion has in the consumer's principal dwelling resulting from the transactionor agreement is canceled. The credit union will have 20 days after receivingnotice of rescission to take the necessary steps to cancel the security interest inthe principal dwelling as well as return any money or property the consumerhas given to the credit union. This includes money the consumer has paiddirectly to a third party.Once the credit union has fulfilled its obligations, the consumer must return tothe credit union any money or property it has received from the transaction oragreement. If return of property is unfair or impracticable, the consumer mustoffer the credit union its reasonable value. Once offered, if the credit unionfails to take possession of any money or property, the credit union shall forfeitits claim to such items and they may be kept by the consumer.Once the rescission period has passed, the credit union should urge thoseconsumers having the right of rescission to sign the Statement ofNoncancellation on one of their Notice of Right to Cancel documents anddeliver it in person or by mail to the credit union. The credit union may beginto disburse funds once the credit union receives this signed Statement ofNoncancellation and is comfortable the rescission period has passed. If theStatement of Noncancellation is not returned, the credit union cannot disbursefunds until the rescission period has passed and it is satisfied that no eligibleperson has exercised their right to cancel the transaction.Open-End Lending – 59

Notice of Right to CancelINSTRUCTIONS1. Check box to identify Open-End account or Closed-End transaction. 3. Have each member/borrower sign Acknowledgment of Receipt.2. Check the box for the appropriate transaction type. 4. Give each member/borrower two copies of Notice of Right to Cancel.2Notice ofRight to Cancel■ NOTICE OF YOUR RIGHT TO CANCEL — Open End❏ ESTABLISHING AN ACCOUNT The Lender has agreed to establish an open-end credit account for you, and you have agreed to give the Lender a (mortgage/deed of trust) (on/in) your home as security for the account. You have a legal right under federal and some state laws to cancel the account, without cost, within threebusiness days after the latest of the following events:1. the opening date of your account which is __________________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the account.If you cancel the account, the (mortgage/deed of trust) (on/in) your home is also cancelled. Within 20 days of receiving your notice, the Lender must take the necessarysteps to reflect the fact that the (mortgage/deed of trust) (on/in) your home has been cancelled. The Lender must return to you any money or property you have given to usor to anyone else in connection with the account.You may keep any money or property the Lender has given you until the Lender has done the things mentioned above, but you must then offer to return the money orproperty. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the locationof the property. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of youroffer, you may keep it without further obligation.❏ INCREASING THE SECURITY You have agreed to increase the amount of the (mortgage/deed of trust) (on/in) your home that the Lender holds as security foryour open-end credit account. You have a legal right under federal and some state laws to cancel the increase, without cost, within three business days after the latest of thefollowing events:1. the date of the increase in the security which is ______________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the increase in the security.If you cancel the increase in the security, your cancellation will apply only to the increase in the amount of the (mortgage/deed of trust). It will not affect the amount youpresently owe on your account, and it will not affect the (mortgage/deed of trust) the Lender already has (on/in) your home. Within 20 calendar days after the Lender receivesyour notice of cancellation, the Lender must take the necessary steps to reflect the fact that any increase in the (mortgage/deed of trust) (on/in) your home has been cancelled.The Lender must also return to you any money or property you have given the Lender or to anyone else in connection with this increase.You may keep any money or property the Lender has given you until the Lender has done the things mentioned above, but you must then offer to return the money orproperty. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the locationof the property. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of youroffer, you may keep it without further obligation.❏ INCREASING THE CREDIT LIMIT The Lender has agreed to increase the credit limit on your open-end credit account. The Lender has a (mortgage/deed oftrust) (on/in) your home as security for your account. Increasing the credit limit will increase the amount of the (mortgage/deed of trust) (on/in) your home. You have a legalright under federal and some state laws to cancel the increase in your credit limit, without cost, within three business days after the latest of the following events:1. the date of the increase in your credit limit which is___________ ; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel the increase in your credit limit.If you cancel, your cancellation will apply only to the increase in your credit limit and to the (mortgage/deed of trust) that resulted from the increase in your credit limit. It willnot affect the amount you presently owe, and it will not affect the (mortgage/deed of trust) the Lender already has (on/in) your home. Within 20 calendar days after the Lenderreceives your notice of cancellation, the Lender must take the necessary steps to reflect the fact that any increase in the (mortgage/deed of trust) (on/in) your home has beencancelled. The Lender must also return to you any money or property you have given to the Lender or to anyone else in connection with this increase.You may keep any money or property the Lender has given you until the Lender does the things mentioned above, but you must then offer to return the money or property.If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of theproperty. Money must be returned to the address shown below. If the Lender does not take possession of the money or property within 20 calendar days of your offer, youmay keep it without further obligation.■ NOTICE OF YOUR RIGHT TO CANCEL — Closed End❏ GENERAL RIGHT TO CANCEL You are entering into a transaction that will result in a (mortgage/deed of trust) (on/in) your home. You have a legal right under3afederal and some state laws to cancel this transaction, without cost, within three business days from whichever of the following events occurs last:1. the date of the transaction which is _______________________ c; or2. the date you received your Truth in Lending disclosures; or3. the date you received this notice of your right to cancel.If you cancel the transaction, the (mortgage/deed of trust) is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflectthe fact that the (mortgage/deed of trust) (on/in) your home has been cancelled, and we must return to you any money or property you have given to us or to anyone elsein connection with this transaction.You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property, If it isimpractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property.Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without furtherobligation.b ❏ REFINANCING RIGHT TO CANCEL (REFINANCING WITH ORIGINAL CREDITOR) You are entering into a new transaction to increase the amount of45credit provided to you. Your home is the security for this new transaction. You have a legal right under federal and some state laws to cancel the new transaction, withoutcost, within three business days from whichever of the following events occurs last:1. the date of this new transaction, which is ___________________ c; or2. the date you received your new Truth in Lending disclosures; or3. the date you receive this notice of your right to cancel.If you cancel this new transaction, it will not affect any amount that you presently owe. Your home is the security for that amount. Within 20 calendar days after we receiveyour notice of cancellation of this new transaction, we must take the steps necessary to reflect the fact that your home does not secure the increase of credit. We must alsoreturn any money you have given to us or anyone else in connection with this new transaction.You may keep any money we have given you in this new transaction until we have done the things mentioned above, but you must then offer to return that money at theaddress below. If we do not take possession of the money within 20 calendar days of your offer, you may keep it without further obligation.HOW TO CANCELIf you decide to cancel the account/transaction designated above, you may do so by notifying the Lender in writing, at __________________________________________a______________________________________________________________________________________________________________________________________________________.You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep onecopy of this notice no matter how you notify the Lender because it contains important information about your rights.If you cancel by mail or telegram, you must send the notice no later than midnight of (date) __________________________ b(or midnight of the third business day following thelatest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time.I WISH TO CANCELXBorrower/Owner of PropertyACKNOWLEDGMENT OF RECEIPTYou have received two copies of this Notice of Right to Cancel and one copy of theTruth in Lending Disclosures from the Lender and have read and understand them. Ifthis transaction is to increase the amount of the Mortgage/Deed of Trust on/in yourhome or to increase your credit limit, you acknowledge that you received Truth inLending Disclosures at the time the original account was established.You know of no individual(s) not signing this statement who also lives in yourhome as their principal residence and has any kind of an ownership interest in thatproperty.XBorrower/Owner of PropertyXDateSTATEMENT OF NONCANCELLATION (Optional Section)If you decide NOT to cancel your account/transaction at the end of the three-day perioddescribed in the above Notice, please read, sign and date the following Statement.Please return this statement to the Lender at the address in the above Notice.Statement of Noncancellation — You have chosen not to cancel the account/transaction referenced in the above Notice. You understand that the Lender will allowyou to receive funds in reliance on this statement.You know of no individual(s) not signing this statement who also lives in your homeas their principal residence and has any kind of ownership interest in that property.Borrower/Owner of PropertyBorrower/Owner of PropertyDateBorrower/Owner of PropertyDate© CUNA MUTUAL INSURANCE SOCIETY, 1991, 92, 99, 2007, ALL RIGHTS RESERVED CREDIT UNIONEST477XX1EVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anywhere, US 12345-12346 7DateDate60 – LOANLINER Home Equity System

Notice of Right to CancelCompletion InstructionsPlease refer to the document on the preceding page for the correspondingnumbers.For open-end transactions, the credit union will complete the sections entitled“Notice of Your Right to Cancel – Open-End” and “How to Cancel” alongwith the signature areas.1. Credit Union Information – If your credit union name, address,telephone number and logo were not imprinted by CUNA Mutual,enter the applicable information here.2. Notice of Your Right to Cancel - Open End – The credit union willcheck this box to signify the Notice of Right to Cancel was given inconnection with an open-end home equity plan.a. Establishing an Account - The credit union should check the boxentitled “establishing an account” only when a home equity plan isopened, giving rise to the Right of Rescission. The only other blankto complete in this section is the date the plan is opened which is thedate the Credit Agreement is signed. This date represents oneelement to begin the three-day Right of Rescission period.b. Increasing the Security - The credit union should check this box onlywhen the Notice of Right to Cancel is being given because theamount of the security interest in the consumer's home is beingincreased. For example, the security instrument originally securedless than the line of credit limit. The right to rescind here is restrictedsolely to the increase in the security. Assuming the account wasestablished correctly, the original security interest in the home is notrescindable.The only other blank to complete in this section is the date thesecurity instrument has been amended to increase the security.The remaining language provides what actions and time restrictionsmust be followed should the consumer exercise their right torescind. Note if the increase is canceled, that alone is canceled. Therescission will not affect the amount the borrower already owes ontheir account nor will it affect the security interest the credit unionalready has (on/in) the consumer's home. The amounts or propertythat must be exchanged or returned due to the rescission apply onlyto money or property given in connection with the increase.c. Increasing the Credit Limit - The credit union should check this boxonly when the Notice of Right to Cancel is given in connection withan agreement to increase the borrower's credit limit. Note thatincreasing the credit limit will result in increasing the securityOpen-End Lending – 61

Notice of Right to Cancelinterest the credit union has in the home. Thus, when increasing thecredit limit, the credit union checks and completes the “increasingthe credit limit” section of this document.As was the case with increasing the security, the consumer will havethe right to rescind only the increase to their credit limit. The onlyother blank to complete in this section is the date the increase in thecredit limit is approved.The remaining language sets forth the responsibilities of the partiesand the time restraints imposed should the consumers exercise theirright to rescind the agreement to increase the credit limit. Note, aswas the case with increasing the security, rescission of an agreementto increase the credit limit on the account does not affect the amountthe borrower already owes on the account or the security interest thecredit union already has in the home.3. Notice of Your Right to Cancel - Closed End – The credit union shouldnot complete any portion of this section for open-end transactions. Thisportion of the document is to be used exclusively with closed-end loans.4. How to Cancel –a. The credit union must enter the address where a consumer can mailor deliver written notice if they wish to exercise their Right ofRescission. This address should also represent the location where, ifnecessary, the consumer can return money and, if possible, propertyto the credit union. Also, once the rescission period has passed, theconsumer should be able to deliver the signed statement ofnoncancellation to this address.b. The credit union must enter the date of the third business dayfollowing the latest of the three events listed below:• The date of the event which gave rise to the Right of Rescission(i.e., the date of the transaction); or• The date the consumer received all material disclosures; or• The date the consumer received the Notice of Right to Canceldocuments.When determining this date, the credit union must keep in mind thatunder the rescission rule business day is defined as all calendar daysexcept Sundays and federal holidays. Also, the date the last eventoccurred is not to be included as one of the business days in the threedayrescission period. For example, a borrower agrees to establish anopen-end credit account. Closing for the account takes place onMonday, at which time the borrower is provided with the Credit62 – LOANLINER Home Equity System

Notice of Right to CancelAgreement and Addendum and two copies of Notice of Right toCancel documents. Because the latest (and normally all) of the requiredevents took place on Monday, this day is not included whendetermining the third business day following the latest event.Assuming there were no federal holidays to consider, midnight onThursday of that week would be the end of the rescission period.5. I Wish to Cancel – The consumers can exercise their right to rescind theparticular agreement by signing and dating this area and returning thisdocument by mail or in person to the credit union. Note, however, thisis not the only way a consumer can exercise their right to cancel. Aconsumer may use any written statement (i.e. mail or telegram) signedand dated by them which states their intention to cancel.6. Acknowledgment of Receipt – Each consumer entitled to receive theNotice of Right to Cancel documents, the Credit Agreement and theAddendum should sign and date this section. It is recommended thatthe consumer signs and dates the acknowledgment section of theircopies of the right to cancel document they receive at closing.7. Statement of Noncancellation (Optional Section) – Once the rescissionperiod has passed, the consumer should sign and date this area andreturn the document in person or by mail to the credit union.Once the rescission period has passed and the Statement of Noncancellationreceived, the credit union may begin to disburse funds. If the credit unionhas not received a signed Statement of Noncancellation from all consumersreceiving the Notice of Right to Cancel, it may only disburse funds when itfeels comfortable the rescission period has passed and no eligible personhas exercised their right to cancel.Open-End Lending – 63

Advance VoucherMEMBER: COMPLETE SECTIONS 1, 2, AND 4. This voucher can be used for HOME EQUITY Advances only.HOME EQUITY ADVANCE VOUCHER1 MEMBER INFORMATIONDATEMEMBER ACCOUNT NUMBERHOME TELEPHONE NUMBERMEMBER NAME (LAST) (FIRST) (INITIAL)ADDRESSCITY STATE ZIP2 CHANGES SINCE LAST ADVANCECHECK BOX IFNEW ADDRESSOR PHONE NO.AMOUNT REQUESTED$DATE WANTEDPURPOSE OF THIS ADVANCELIST ALL NEW DEBTS AND LIENS AGAINST THE PROPERTY. ATTACH ADDITIONAL SHEET IF NECESSARY PRESENT BALANCE MONTHLY PAYMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MARITAL STATUSARE YOU WORKING?UNMARRIED (SINGLE, WIDOWED, DIVORCED) MARRIED SEPARATED YES NOIF YOU HAVE CHANGED EMPLOYERS, LIST NAME AND ADDRESSNEW POSITIONDATE HIREDNOTICE: YOU DON’T HAVE TO INCLUDE INCOMEFROM CHILD SUPPORT, SEPARATE MAINTENANCE,OR ALIMONY UNLESS YOU WANT THE CREDIT UNIONTO CONSIDER IT.3 PAYMENT TERMSDAILY PERIODIC RATEANNUAL PERCENTAGE RATE%AMOUNT APPROVED$OLD PAYMENTOTHER CHARGESSOURCE OF OTHER INCOMEAMOUNT ADVANCEDPAYOFF PERIOD FOR NEW BALANCEPREVIOUS BALANCEMONTHLY SALARY$OTHER MONTHLY INCOME+ = + =$ $ $$EQUALSOLD PAYMENT DUE NEW PAYMENTNEW PAYMENT DUE PAYMENT FREQUENCY REMAINING LIMIT$NETLINE OF CREDIT LIMIT$MINUSNEW BALANCEGROSS$$$4 SIGNATURE SIGN BELOWBy signing below or under the endorsement on the Advance Proceeds check you agree that (1) everything in Section 2 is a complete listingof all your debts and obligations since your last advance and (2) to make payments as disclosed in Section 3. When you signed theLOANLINER ® Home Equity Plan Credit Agreement and Truth in Lending Disclosure, you agreed to make payment in the amount and bythe due date shown on the voucher received with each payment change. The “PAYMENTS” paragraph explained when the payment couldchange and how the credit union would calculate the payment. Your payment has been changed for the reason checked below:SIGNATUREXNEW ADVANCE5 FOR CREDIT UNION USE ONLYREQUESTED:BY MAILBY PHONETHRU OFFICEINTERNALLYBY CUSHARE DRAFTOR CHECK(SEAL)DATEFIRSTADVANCESUBSEQUENTADVANCECHANGE IN ANNUAL PERCENTAGE RATESIGNATUREXPAYMENTRECALCULATIONCHECK NUMBER DEPOSIT ACCT. NUMBER PROCESSED BYPAYROLLDEDUCTIONAUTOMATICPAYMENTMILITARYALLOTMENT(SEAL)TRANSACTION: REPAYMENT THROUGH: MEMBER PAYSPREMIUM FOR:CASHDATECDSCLHFPMP© CUNA MUTUAL INSURANCE SOCIETY, 1991, 2006, ALL RIGHTS RESERVED EST166CREDIT UNIONJCL64 – LOANLINER Home Equity System

Advance VoucherAdvance VoucherDocument DescriptionWhen Used:This document is used each time a borrower takes anadvance or something else occurs that causes thepayment to change. (Example: interest rate increaseor decrease.)Purpose:How Distributed:The Advance Voucher is used to document each openendhome equity transaction. It allows your credit unionto create an audit trail of the money you lend andprovides your credit union updated borrower and creditinformation. It is used to disclose updated paymentterms to the borrower and to obtain necessary signatures.The fist copy is your Credit Union’s copy of theAdvance Voucher. This signed copy is kept by yourcredit union in the borrower’s loan file.No. of Parts: 2The second copy is the borrower’s copy of the AdvanceVoucher. If there is more than one borrower on the plan,only one borrower needs to receive a copy.Components:Imprinting:Part 1 - Credit union copyPart 2 - Borrower copyOptional - Credit union name, address, telephonenumber and logoOpen-End Lending – 65

Advance VoucherMEMBER: COMPLETE SECTIONS 1, 2, AND 4. This voucher can be used for HOME EQUITY Advances only.HOME EQUITY ADVANCE VOUCHER21 MEMBER INFORMATIONDATEMEMBER ACCOUNT NUMBERHOME TELEPHONE NUMBERMEMBER NAME (LAST) (FIRST) (INITIAL)1EVERYBODY’S CREDIT UNION12345 Main StreetP.O. Box 1234Anywhere, US 12345-12343ADDRESSCITY STATE ZIP2 CHANGES SINCE LAST ADVANCECHECK BOX IFNEW ADDRESSOR PHONE NO.AMOUNT REQUESTED$DATE WANTEDPURPOSE OF THIS ADVANCELIST ALL NEW DEBTS AND LIENS AGAINST THE PROPERTY. ATTACH ADDITIONAL SHEET IF NECESSARY PRESENT BALANCE MONTHLY PAYMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .MARITAL STATUSARE YOU WORKING?UNMARRIED (SINGLE, WIDOWED, DIVORCED) MARRIED SEPARATED YES NOIF YOU HAVE CHANGED EMPLOYERS, LIST NAME AND ADDRESSNEW POSITIONDATE HIREDNOTICE: YOU DON’T HAVE TO INCLUDE INCOME SOURCE OF OTHER INCOMEFROM CHILD SUPPORT, SEPARATE MAINTENANCE,OR ALIMONY UNLESS YOU WANT THE CREDIT UNIONTO CONSIDER IT.4 3 PAYMENT TERMSDAILY PERIODIC RATEANNUAL PERCENTAGE RATEab%AMOUNT APPROVEDe$OLD PAYMENT$jOTHER CHARGESAMOUNT ADVANCEDMONTHLY SALARY$OTHER MONTHLY INCOME+ = + =$f$g$h$iEQUALSOLD PAYMENT DUE NEW PAYMENTNEW PAYMENT DUE PAYMENT FREQUENCY REMAINING LIMITk$lPAYOFF PERIOD FOR NEW BALANCEcPREVIOUS BALANCEmn$$ dMINUSNEW BALANCE$NETLINE OF CREDIT LIMIToGROSS5a4 SIGNATURE SIGN BELOWBy signing below or under the endorsement on the Advance Proceeds check you agree that (1) everything in Section 2 is a complete listingof all your debts and obligations since your last advance and (2) to make payments as disclosed in Section 3. When you signed theLOANLINER ® Home Equity Plan Credit Agreement and Truth in Lending Disclosure, you agreed to make payment in the amount and bythe due date shown on the voucher received with each payment change. The “PAYMENTS” paragraph explained when the payment couldchange and how the credit union would calculate the payment. Your payment has been changed for the reason checked below:SIGNATUREXNEW ADVANCEb6 5 FOR CREDIT UNION USE ONLYREQUESTED: aBY MAILBY PHONETHRU OFFICEINTERNALLYBY CUSHARE DRAFTOR CHECK(SEAL)DATEbFIRSTADVANCESUBSEQUENTADVANCECHANGE IN ANNUAL PERCENTAGE RATESIGNATUREXPAYMENTRECALCULATIONCHECK NUMBER DEPOSIT ACCT. NUMBER PROCESSED BYe f gCREDIT UNIONPAYROLLDEDUCTIONAUTOMATICPAYMENTMILITARYALLOTMENT(SEAL)TRANSACTION: REPAYMENT THROUGH: cMEMBER PAYSPREMIUM FOR:© CUNA MUTUAL INSURANCE SOCIETY, 1991, 2006, ALL RIGHTS RESERVED EST166CASHDATECDSCLJCLdHFPMP66 – LOANLINER Home Equity System

Advance VoucherCompletion InstructionsPlease refer to the document on the preceding page for the correspondingnumbers.1. Credit Union Information – If your credit union name, address,telephone number and logo were not imprinted by CUNA Mutual,enter the applicable information here.2. Member Information – This section should be completed at the time ofa first or subsequent advance. If the access method is in person or bymail, the member should enter this information. If the member calls thecredit union, the loan officer can enter the information supplied by theborrower.3. Changes Since Last Advance – This section should be completed at thetime of a subsequent advance. It allows you to obtain up-to-dateinformation from the borrower(s) with each transaction. If the accessmethod is in person or by mail, the member should enter thisinformation. If the member calls the credit union, the loan officer canenter the information supplied by the borrower.4. Payment Terms – The credit union completes the “Payment Terms”section of the voucher. It should be completed as follows:a. Daily Periodic Rate - Enter the Daily Periodic Rate in effect on thedate of the advance.b. Annual Percentage Rate - Enter the Annual Percentage Rate in effecton the date of the advance.c. Payoff Period for new Balance - Enter the payoff period for the newbalance. At the time you established the account, you selected apayoff period for a range of balances. That range of balances isfound in the Payment Information paragraph of the Addendum.A sample looks like this.Range of BalancesPayoff Period$10,000.00 and under 160 monthly payments$10,000.01 - $20,000.00 196 monthly payments$20,000.01 - $30,000.00 120 monthly paymentsWhen the voucher is completed you should determine the balance atthe time of the most recent advance. Use the balance amount and therange of balances chart to determine the applicable payoff period.The payoff period will be stated in number of payments. Forexample, 96 monthly payments is the same as eight (8) years. Usingthe sample range of balance table above, a balance of $14,500 wouldhave a payoff period of 96 monthly payments or 8 years. A balance of$24,000 would have a 120-month payoff period or 10 years.Open-End Lending – 67

Advance Voucherd. Line of Credit Limit - Enter the maximum amount your credit unionhas authorized for this borrower.e. Amount Approved - Enter the amount approved for this advance, ifany.f. Other Charges - Enter any other charges for this advance not paid incash. At the time of the first advance there may be substantial othercharges. For example, fees for a credit report, title examination,appraisal, recording, etc. Include in this amount any finance chargedisclosed on the Addendum, such as points charged to open theplan. You must itemize the fees in the Addendum. On the AdvanceVoucher you will indicate the total dollar amount of other chargesincurred with this transaction that are being financed.g. Amount Advanced - Enter the total of the amount of the advanceplus the dollar amount of any other charges not paid in cash as theamount advanced.h. Previous Balance - Enter the amount of the previous balance. At thetime of the first advance, the previous balance will be zero.i. New Balance - The previous balance, if any, should be added to theamount advanced to get the new balance. The new balance is theamount which you use to determine the payoff period.j. Old Payment - Enter the amount of the payment the borrower wasmaking before receiving the new advance. At the time of the firstadvance, the old payment will be zero.k. Old Payment Due - Enter the due date of the old payment.l. New Payment - Enter the new payment here. This payment must becalculated using the new balance, the Annual Percentage Rate andthe payoff period. For a protected loan, please adjust to cover theaddition of the premium charges to the loan. You should refer to thePayment Information paragraph in the Addendum for the specificson how to calculate the payment.m. New Payment Due - Enter the due date of the first payment towhich the new payment amount applies.n. Payment Frequency - Enter the payment frequency. TheLOANLINER ® plan requires a monthly payment frequency.Note: If you have a voluntary payroll deduction program whichpermits payment frequencies other than monthly, you mayinsert this frequency and payment or reflect the monthlypayment.o. Remaining Limit - Enter the amount of the remaining credit limit.This is calculated by subtracting the new balance from the line ofcredit limit.68 – LOANLINER Home Equity System

Advance Voucher5. Signatures –a. Check the applicable box. If this is a new advance, check the firstbox. If it’s a change related to Annual Percentage Rate due to anincrease/decrease in rate or discount, check the second box.b. Contract law requires borrowers sign an agreement to repay debt.Credit unions can decide whether they will require the borrowers tosign the voucher before the money is disbursed or whether they willrely on the use of an endorsement stamp. You should check withyour own attorney for guidance on signature requirements for yourstate. The endorsement stamp can be used on the proceeds check forthe advance. It is a business decision for the credit union whether torely on the borrower(s) signature on the endorsement stamp or torequire a signature on the voucher. The endorsement stamp noticereads:If you signed the LOANLINER ® Home Equity Plan byendorsing this check, you accept it as an advance underthe terms of the Plan, secured by a mortgage on yourproperty (usually your home). You agree to make thepayments shown on the voucher.6. For Credit Union Use Only – This section is provided for optional useby the credit union.a. Requested - Check the appropriate box for how the transaction wasinitiated.b. Transaction - Check the appropriate box for the type of transaction.c. Repayment Through - Check the appropriate box for the method ofpayment.d. Insurance - Check the applicable coverage for member’s plan.CDSCLJCLHFPMPCredit Disability InsuranceSingle Credit Life InsuranceJoint Credit Life InsuranceHome and Family ProtectionMortgage Protectione. Check Number - Enter the number of the sharedraft/check, if any.f. Deposit Account Number - Enter the number of the account theadvance is to be deposited into, if any.g. Processed By - Enter the initials of the credit union staff person whoprocessed this voucher.Open-End Lending – 69

70 – LOANLINER Home Equity System