Home Equity Lending Disclosures

¹Real Estate Secured fixed rate loans require a minimum 1% loan fee and closing costs, which will increase the APR. All Real Estate loans over $100,000.00 may require appraisal. Maximum Loan $500,000.00. Some restrictions apply. For example, on a 60-month Second Mortgage there would be 60 monthly payments of $19.33 per $1,000.00 borrowed.

²APR is shown for 1st & 2nd Trust Deed HELOC’s. Rate is fixed for 5 years and tied to an index. After an initial 5-year period, the rate is variable and can change quarterly based on the Prime Index, as published in the Wall Street Journal, and may adjust the first of January, April, July, and October, plus a margin based on credit qualifications. Credit Union has the option of extending the initial 5-year draw period another 5 years. Rate cannot exceed 18% APR. Minimum payment during draw period is 1% of the outstanding balance. Appraisal may be required.

³APR is shown for 1st & 2nd Trust Deed HELOC’s. Rate is variable and can change quarterly based on the Prime Index, as published in the Wall Street Journal, and may adjust the first of January, April, July, and October, plus a margin based on credit qualifications. Credit Union has the option of extending the initial 5-year draw period another 5 years. The minimum lifetime APR is 3.50% and the maximum lifetime APR is 18%. Minimum payment during draw period is 1% of the outstanding balance. Appraisal may be required.

Truth In Savings Disclosures

Except as specifically described, the following disclosures apply to all of the accounts:

Rate Information. The Dividend Rate and Annual Percentage Yield on your account are set forth above. The Dividend Rate and Annual Percentage Yield may change monthly for Hi-Yield Money Market and quarterly for Share, Severance, and IRA Accounts as determined by the Board of Directors. The Hi-Yield Money Market is a tiered rate account. The Dividend Rates and Annual Percentage Yields applicable to the account depend on the balance range as set forth above. Each Dividend Rate will apply only to the portion of the account balance with each tier. For Certificate Accounts, the Dividend Rate and Annual Percentage Yield are fixed and will be in effect for the term of the account. For Certificate Accounts, the Annual Percentage Yield assumes that dividends will remain on deposit until maturity. A withdrawal will reduce earnings.

Nature of Dividends. For Share, Severance, Money Market and IRA Savings Accounts, dividends are paid from current income and available earnings after required transfers to reserves at the end of a dividend period. The Dividend Rate and Annual Percentage Yield set forth above are the prospective rates that the Credit Union anticipates paying for the applicable dividend period.

Compounding and Crediting. Dividends will be compounded and credited as set forth above. For dividend bearing accounts, the Dividend Period begins on the first calendar day of the quarter and ends on the last calendar day of the quarter.

Accrual of Dividends. Dividends will begin to accrue on noncash deposits (e.g., checks) on the business day you make the deposit to your account. If you close your account before accrued dividends are credited, accrued dividends will not be paid.

Balance Information. The minimum balance required to open each account is set forth above. For all accounts, dividends are calculated by the average daily balance method. Dividends are calculated by applying a periodic rate to the average daily balance in the account for the Dividend Period. The average daily balance is determined by adding the full amount of principal in the account for each day of the period and dividing that figure by the number of days in the period. For Share and Money Market Accounts, there is a minimum daily balance requirement to earn dividends and obtain the stated Annual Percentage Yield as set forth above.

Certificate and IRA Account Features

Account Limitations. After your account is opened, you may not make additional deposits to a Certificate Account. Additional deposits are allowed for IRA Accounts.

Maturity. Your regular or IRA certificate will mature within the term set forth above or maturity date set forth on your Account Receipt or Renewal Notice.

Early Withdrawal Penalty. We may impose a penalty if you withdraw any of the principal of your regular or IRA certificate account before the maturity date.

Amount of Penalty. For Certificate Accounts, the amount of the early withdrawal Penalty is based on the following penalty schedule:

Withdrawals on Regular & IRA Penalty:

• CD’s 12 months or less: $25, plus 90 days dividends

• CD’S 13 – 24 months: $25, plus 180 days dividends

• CD’S 25 – 60 months: $25, plus 270 days dividends

How the Penalty Works. The penalty is calculated as a forfeiture of part of the dividends that have been or would be earned at the nominal dividend rate on the account. It applies whether dividends have been earned. In other words, if the account has not yet earned enough dividends or if dividends have already been paid, the penalty will be deducted from the principal.

Exceptions to Early Withdrawal Penalties. At our option, we may pay the account before maturity without imposing an early withdrawal penalty under the following circumstances: when an account is an Individual Retirement Account (IRA) and any portion is paid within seven (7) days after establishment; provided that the depositor forfeits an amount of at least equal to the simple dividends earned in the amount withdrawn; or where the account is an IRA and the owner attains age 59 ½ or becomes disabled.