Home Equity Line of Credit Agreement

HOME EQUITY LINE OF CREDIT AGREEMENT

Parties and Effective Date

Lender:

Borrower:

Effective Date: Month   Day   Year

Property Identification (Security)

Credit Terms

Maximum Credit Limit: $   Initial Advance Requested (optional): $

Interest Rate and Payment Terms

Interest Rate: Variable based on an index plus a margin. Margin:  % . Index used:

Interest rate will be adjusted on each adjustment date in accordance with the index plus margin subject to any applicable rate caps specified in this Agreement. Borrower agrees to pay interest on the daily outstanding principal balance. Interest shall be computed on a 365/360 basis as allowed by applicable law unless otherwise provided.

Payment Due Date Each Month: Day   If not paid within   days after due date, a late charge of   will apply.

Escrow for Taxes and Insurance

Lender requires escrow for payment of property taxes and hazard insurance:   Check to require escrow of taxes and insurance.

Security and Grant of Lien

To secure all obligations under this Agreement, Borrower grants and conveys to Lender a first lien and security interest in the Property described above subject to existing encumbrances disclosed to Lender. Borrower authorizes Lender to record a deed of trust or mortgage evidencing the security interest and to take all actions necessary to perfect and maintain the security interest.

Borrower Representations and Warranties

Borrower represents and warrants that Borrower is the owner of the Property, the Property is the principal residence of Borrower unless otherwise stated, there are no known material defects not disclosed to Lender, and that all information provided to Lender in connection with this Agreement is true and complete. Borrower will maintain hazard insurance in amounts satisfactory to Lender and will pay all property taxes and assessments when due.

Use of Proceeds

Proceeds of the Line of Credit shall be used solely for lawful personal purposes related to the Property or as otherwise approved in writing by Lender. Borrower shall not use proceeds for any illegal purpose.

Default; Remedies; Acceleration

Events of default include failure to pay any amount when due, breach of any covenant or representation, insolvency of Borrower, vacancy or abandonment of the Property, or any material adverse change in Borrower's financial condition. Upon default, Lender may declare the entire unpaid principal balance, accrued interest, and fees immediately due and payable, foreclose the security interest, and exercise any other remedies available at law or equity. Lender may charge a default interest rate of   above the scheduled rate where permitted by law.

Prepayment, Fees and Costs

Borrower may prepay all or any part of the principal at any time without penalty except as may be expressly stated herein. Borrower shall pay all closing fees, recording fees, title charges, appraisal fees, and reasonable attorney fees incurred by Lender in enforcing this Agreement, except where prohibited by controlling law.

Disclosures and Acknowledgments

Borrower acknowledges receipt of a copy of this Agreement and any required disclosures and acknowledges that Borrower has the right to ask questions and to obtain additional copies prior to execution. Borrower further acknowledges that the obligations are secured by the Property.

Lead-Based Paint Disclosure — Applicable to properties built before 1978: Yes No

Flood Zone: Yes No

Prior Material Damage or Repairs to Property: Yes No

Notices

All notices required under this Agreement shall be in writing and delivered to the addresses below or to such other address as either party may designate by notice in accordance with this paragraph.

Assignment; Governing Law; Miscellaneous

Lender may assign or transfer its interest in this Agreement, in whole or in part, without Borrower's consent. This Agreement shall be governed by the laws of the state specified below, without regard to conflict of law principles.

If any provision of this Agreement is held invalid, the remaining provisions shall continue in full force. This Agreement constitutes the entire agreement between the parties concerning the Line of Credit and supersedes all prior agreements and understandings between the parties relating to the subject matter hereof. Any amendment must be in writing and signed by both parties.

Acknowledgment of Borrower

By signing below, Borrower acknowledges: (a) receipt of a completed copy of this Agreement; (b) that Borrower has had the opportunity to review the terms and to seek independent advice; and (c) that the loan is secured by the Property identified above.

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