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Home Equity Line of Credit Initial Truth-in-Lending Disclosure

Important Terms of Our Initial-Truth-In Lending Disclosure

This disclosure contains important information about our HELOC as of 2/15/2013 (the "Plan"). You should read it carefully and keep a copy for your records.

Availability of Terms. All of the terms of the Plan described herein are subject to change. If any of these terms change (other than the ANNUAL PERCENTAGE RATE) and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you paid to us or anyone else in connection with your application.

Security Interest.We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us.

Possible Actions. Under this Plan, we have the following rights:

Termination and Acceleration. We can terminate the Plan and require you to pay us the entire outstanding balance in one payment, and charge you certain fees, if any of the following happens:

a. You commit fraud or make a material misrepresentation at any time in connection with the Plan. This can include, for example, a false statement about your income, assets, liabilities, or any other aspect of your financial condition.

b. You do not meet the repayment terms of the Plan.

c. Your action or inaction adversely affects the collateral for the Plan or our rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dwelling, creation of a senior lien on the dwelling without our permission, foreclosure by the holder of another lien or the use of funds or the dwelling for prohibited purposes.

Suspension or Reduction. In addition to any other rights we may have, we can suspend additional extensions of credit or reduce your credit limit during any period in which any of the following are in effect:

a. The value of your dwelling declines significantly below the dwelling's appraised value for purposes of the Plan. This includes, for example, a decline such that the initial difference between the credit limit and the available equity is reduced by fifty percent and may include a smaller decline depending on the individual circumstances.

b. We reasonably believe that you will be unable to fulfill your payment obligations under the Plan due to a material change in your financial circumstances.

c. You are in default under any material obligation of the Plan. We consider all of your obligations to be material. Categories of material obligations include, but are not limited to, the events described above under Termination and Acceleration, obligations to pay fees and charges, obligations and limitations on the receipt of credit advances, obligations concerning maintenance or use of the dwelling or proceeds, obligations to pay and perform the terms of any other deed of trust, mortgage or lease of the dwelling, obligations to notify us and to provide documents or information to us (such as updated financial information), obligations to comply with applicable laws (such as zoning restrictions).

d. We are precluded by government action from imposing the annual percentage rate provided for under the Plan.

e. The priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less than 120 percent of the credit limit.

f. We have been notified by governmental authority that continued advances may constitute an unsafe and unsound business practice.

g. The maximum annual percentage rate under the Plan is reached.

Change in Terms. We may make changes to the terms of the Plan if you agree to the change in writing at that time, if the change will unequivocally benefit you throughout the remainder of the Plan, or if the change is insignificant (such as changes relating to our data processing systems).

Fees and Charges.In order to open and maintain an account, you must pay certain fees and charges.

Lender Fees. The following fees must be paid to us:



When Charged
Annual Fee



Overlimit Charge


At the time your Credit Line balance exceeds your credit limit.

Early Termination Fee


If the loan is closed within three (3) years of the original loan date.

Late Charge. Your payment will be late if it is not received by us within 10 days after the "Payment Due Date" shown on your periodic statement. If your payment is late we may charge you 5.000% of the payment.

Third Party Fees. You must pay certain fees to third parties such as appraisers, credit reporting firms, and government agencies. These third party fees generally total between $410.00 and $1484.00. We estimate the breakdown of these as follows:

Description Amount When Charged
Appraisal Fee $240 to $500 At Account Opening
Credit Report Fee $5 to $20 At Account Opening
Tract Search/Title Insurance $80 to $750 At Account Opening
Recording Fees $85 to $200 At Account Opening
Flood Certification $0 to $14 At Account Opening

Property Insurance.
You must carry insurance on the property that secures the Plan.

Minimum Payment Requirements. You can obtain advances of credit during the following period: 84 months from the date of the Line of Credit Agreement, Note and Disclosure (the "Draw period"). Your Regular Payment will equal the amount of your accrued FINANCE CHARGES. You will make 83 of these payments. You will then be required to pay the entire balance owing in a single balloon payment. If you make only the minimum payments, you may not repay any of the principal balance by the end of this payment stream. Your payments will be due monthly.  Your "Minimum Payment" will be the Regular Payment, plus any amount past due and all other charges.  An increase in the ANNUAL PERCENTAGE RATE may increase the amount of your Regular Payment.

Minimum Payment Example. If you made only the minimum payment and took no other credit advances, it would take 7 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 4.750%. During that period, you would make 83 monthly payments ranging from $36.44 to $40.34 and one final payment of $10,040.34.

Transaction Requirements. The following transaction limitations will apply to the use of your Credit Line:

Credit Line Standard Bank Home Equity Line of Credit Check, Telephone Request, Request by Mail,  and in Person Request Limitations. There are no transaction limitations for the writing of Standard Bank Home Equity Line of Credit Checks, requesting an advance by telephone, requesting an advance by mail, or requesting an advance in person.

Tax Deductibility. You should consult a tax advisor regarding the deductibility of interest and charges for the Plan.

Variable Rate Feature. The Plan has a variable rate feature. The ANNUAL PERCENTAGE RATE (corresponding to the periodic rate), and the minimum payment amount can change as a result. The ANNUAL PERCENTAGE RATE does not include costs other than interest.

The Index. The annual percentage rate is based on the value of an index (referred to in this disclosure as the "Index"). The Index is the domestic prime rate as published in the Wall Street Journal-Money Rates Section. Information about the Index is available or published in the Wall Street Journal-Money Rates Section.  We will use the most recent Index value available to us as of the fifth day of the preceding month prior to any annual percentage rate adjustment.  If the Index is no longer available, we will choose a new Index and margin. The new Index will have a historical movement substantially similar to the original Index, and the new Index and margin will result in an annual percentage rate that is substantially similar to the rate in effect at the time the original Index becomes unavailable.

Annual Percentage Rate. To determine the Periodic Rate that will apply to your account, we add a margin to the value of the Index, and then divide the value by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE we multiply the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE RATE. A change in the Index rate generally will result in a change in the ANNUAL PERCENTAGE RATE. The amount that your ANNUAL PERCENTAGE RATE may change also may be affected by the lifetime annual percentage rate limits, as discussed below.

Please ask us for the current Index value, margin, and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements that we send you.

Frequency of Annual Percentage Rate Adjustments. Your ANNUAL PERCENTAGE RATE can change monthly. The margin added to the Index will increase by .25% in the event that your Standard Bank checking account is closed or your regularly scheduled payment is not automatically withdrawn from your Standard Bank checking account. There is no limit on the amount by which the annual percentage rate can change during any one year period. However, under no circumstances will your ANNUAL PERCENTAGE RATE exceed 17.900% per annum, or go below 4.000% per annum at any time during the term of the plan.

Maximum Rate and Payment Example. If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 17.900% would be $152.03. This ANNUAL PERCENTAGE RATE could be reached at the time of the 1st payment.

Prepayment. You may prepay all or any amount owing under the Plan at any time without penalty.

Historical Example. The example below shows how the ANNUAL PERCENTAGE RATE and the minimum payments for a single $10,000.00 credit advance would have changed based on changes in the Index from 1999 to 2013. The Index values are from the following reference period: as of the last business day in January. While only one payment per year is shown, payments may have varied during each year. Different outstanding principal balances could result in different payment amounts.

The table assumes that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during the year. It does not necessarily indicate how the Index or your payments would change in the future.

Index Table

Year (as of the last business day in Jan. of each year)

Index (Percent)


Annual Percentage Rate

Monthly Payment (Dollars)

1999 7.750 1.500 9.250 78.56
2000 8.500 1.500 10.000 84.93
2001 9.000 1.500 10.500 89.18
2002 4.750 1.500 6.250 53.08
2003 4.250 1.500 5.750 48.84
2004 4.000 1.500 5.500 46.71
2005 5.250 1.500 6.750 57.33
2006 7.500 1.500 9.000
2007 8.250 1.500 9.750
2008 6.000 1.500 7.500
2009 3.250 1.500 4.750
2010 3.250 1.500 4.750
2011 3.250 1.500 4.750
2012 3.250 1.500 4.750
2013 3.250 1.500 4.750

(1) This is a margin we have used recently; your margin may be different.

EARLY TERMINATION FEE. Borrower agrees to pay Lender an Early Termination Fee of $500.00. If the loan is closed within three (3) years of the date of this agreement.

Borrower Acknowledgement

The Borrower, after having read the contents of the above disclosure, acknowledges receipt of this Disclosure Statement and further acknowledges that this Disclosure was completed in full prior to its receipt. The Borrower also acknowledges receipt of the handbook entitled "What you should know about Home Equity Lines of Credit."

When Your Home is on the Line 

The following information is intended to help customers understand home equity lines of credit. This information is based on a consumer brochure published by the Federal Reserve Board entitled When Your Home Is On The Line: What You Should Know About Home Equity Lines of Credit.

Please click here to view the "When Your Home Is On the Line" brochure in Adobe Acrobat PDF Format.

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