1. PAYMENTS - You promise to make payments in the amount and by the date agreed in the Loan's Affidavit of Truth. You can make early payments without incurring any penalty. If you pay any part of the debt ahead of time, you're still obligated to make payments that are scheduled regularly, unless we have agreed to a change in the schedule of payment. Because this is a simple interest loan, if you do not make payments just as they have been scheduled, your final payment could be higher or lower than the agreed amount for the final payment. If you choose credit insurance, we will include it in the amount of your payments, or extend the term of the loan. If the term is extended, it will require for you to make additional payments for the agreed amount until the entire loan has been paid. You promise to make all payments in the place that we select. If this loan serves as a refinancing loan for another loan that you have with us, the other loan will be cancelled and refinanced with the date of this loan. 2. LOAN FUNDS DELIVERED BY MAIL - If funds of this loan are mailed, the interest on this loan begins to run from the date on which the funds were sent to you by mail. 3. LOAN GUARANTEE ?This agreement is secured by all properties described in the section "Guarantees" of the Loan's Affidavit of Truth. The properties that guarantee other loans that you have with us also guarantee the loan, unless it is home. A home secures this loan only if it is described in the "Guarantees" section of this Loan's Affidavit of Truth. If the Credit Union has a federal charter, Statutory Lien applies - If you fall in default of your financial obligations to us, federal law entitles us to apply the balance of all your shares and dividends on all individual and group accounts that you have with us for the fulfillment of the obligation. After you fall out of compliance, we reserve the possibility of exercising this right against you without notice. (We have a federal charter if our name includes the term "Federal Credit Union.") If the Credit Union has a state charter, except in Ohio and Rhode Island: We have a Statutory Lien on shares and dividends and if any, on the deposits and interests of all individual and group accounts that you have with us, and we have the power to exercise our rights to the lien to the limits set by state law. (We have a state charter if our name does not include the term "Federal Credit Union.") For all subjects on the Loan: You offer as guarantee for this loan all your shares and dividends, and if any, deposits and interest in all individual and group accounts you have with the credit union, both present and future. The statutory lien and / or your guarantee offer allows us to apply to the funds in your account or accounts to which you owe should you be in default. The statutory lien and its guarantee offer does not apply to individual retirement account or other account that can lose its preferential agreement under the system of State or Federal taxes if used as collateral. 4. NON-COMPLIANCE - Youwill be in non-compliance of this agreement if you fail to make payments in the amount required or if you make them ??after the due date. You will be in non-compliance if you break any of the promises made in the loan agreement or are related to this loan, any person shall be deemed in non-compliance if he/se fails to fulfill any of the agreements related to the guarantee. You will be in non-compliance if you die, you declare bankruptcy, if you become insolvent (that is, if you become unable to pay your accounts and loans on the terms set), or if you gave some false information or led to wrong conclusions in your loan application. You will also be in non-compliance if something happens that makes us believe that your ability to pay what you owe has been affected significantly in terms of this agreement or if you are in breach of other loan agreements you have with us. 5. ACTIONS AFTER NON-COMPLIANCE ?When you are in non-compliance, we may demand immediate payment of the total obligation under the terms of this agreement. You give up your right to receive request of payment, reporting, notification of intent to sue, or summons. If we demand immediate payment, you will continue paying the interest on the obligation under this agreement, until what you owe is paid. We will also apply against what you owe any action and / or deposits that were offered as guarantee for this agreement. We reserve the authority to exercise any other rights that the law gives us when you are in non-compliance. 6. EACH PERSON IS RESPONSIBLE - Each person signing this agreement is responsible individually and together for paying the full amount owed ??under the terms of this agreement. This means that we can exercise our rights against any of you individually or against all of you together. 7. LATE PAYMENT CHARGE - If you make a late payment, you promise to pay the late fee agreed in the Loan's Affidavit of Truth. If no late fee was agreed to, no charge will apply. 8. DELAY IN THE EXERCISE OF RIGHTS ?We reserve the authority to delay the exercise of any of our rights acquired under this agreement, any number of times without losing the ability to exercise them later. We may exercise this agreement against your heirs or legal representatives. 9. CONTINUED EFFECTIVENESS - If any part of this agreement is declared unenforceable by a court, the remainder shall remain in effect. 10. NOTICES - All Notices will be sent to the most recent address you have sent us in writing. A Notice that one of you gets will count as notice to all. All arrangements regarding guarantees and all references to "savings credit union," "we,""our," or "us" refer to the savings credit union whose name appears in this document, and anyone whom the savings credit union assigns or transfers in this agreement. All references to "Loan" refer to the loan described in the loan agreement which is part of this document. All references to "you," "you all," or "your," refer to any person signing this agreement. ---- 1 .THE CREDIT GUARANTEE - You give us what is known as collateral on the property described in the "Guarantee" section of the Loan's Affidavit Declaration that is part of this document ("The Property"). The collateral includes all the property accessories. Property accessories are all things that have been attached or installed on the property, or that are attached or installed in the future. The collateral also includes any replacement of the property that you purchase within 10 days following the signing of the loan and any extensions, renewals, or refinancings. It also includes any money you receive from the sale of the property or proceeds of any insurance you have on the property. If the property value declines, you promise to give more properties as security if we ask. 2. WHAT THE COLLATERAL COVERS - The property guarantees the Loan and any extension, renewal or refinancing of the Loan. If the property is not a home, it also guarantees any other loan or loans, including any credit card loan, that you have now or receive in the future from us and any other amounts you owe us for any reason or future except for any loan that has residence as guarantee. If the property consists of domestic use as defined by the Law on Federal Trade Commission Credit Practices Rule or your primary residence, the Property only Guarantees this Loan and no other loans or amounts you owe us. 3. PROPERTY OWNERSHIP - You state on the promise that you are the owner of the Property, if this Loan is to buy the Property, you agree to use the loan funds for this purpose. You state on the promise that nobody else has any interest or shares against the Property that you have not informed us. You agree not to sell or lease the Property or use it to guarantee a loan with another credit union until the Loan has been paid. You agree not to permit any lien or collateral to the Property, either through your actions or the actions of the law. 4. PROTECTING THE COLLATERAL - If your state issues a title to the Property, you agree to show our collateral in the title. In some cases we may require to present what is called a statement of funding to protect our rights on the collateral in case of third party claims. If requested, you agree to sign a statement of funding. You agree to do anything else that we deem necessary to protect our guarantee on the Property. You also agree to pay all costs, including but not limited to, legal fees and representation, in which we incur to protect our guarantee to the Property, to the extent permitted by applicable law. 5. USE OF THE PROPERTY - Until the Loan has been paid in full, you agree to: (1) Use the Property carefully and keep it in good condition by performing the necessary repairs. (2) Get our written permission before making major changes to the Property or change the address in which the property is stored. (3) Tell us in writing before changing your address. (4) Allow us to inspect the Property. (5) notify us immediately if the Property was damaged, if it was stolen or abused. (6) Not use the Property for any purpose contrary to law. 6. PROPERTY INSURANCES, TAXES AND FEES - You agree to pay all taxes and fees (such as registration fees) pending on the Property and to keep the Property insured against loss and damage. The amount and coverage of property insurance must be acceptable to us. You may provide property insurance through an existing policy, or through a policy you will get and pay. You agree to make the insurance policy payable to us and deliver the policy or evidence of coverage to us, if we so require. If you cancel your insurance and get a refund, we have rights to such reimbursement. If the Property is lost or damaged, we can use the agreement of accounts or insurance payments to repair the Property or apply it to your outstanding balance. You authorize us to endorse any check or money order that is payable to you in order for us to collect any refund or benefits due under your insurance policy. If you do not pay taxes or fees of the Property or do not insure the property, we may pay these obligations, but are not obligated to do so. Any money we spend in taxes, fees or insurance will be added to the balance of the Loan and you will pay interest on such amounts in the same proportion to the interest agreed for the Loan. We can accept payment from the insurance company providing insurance. We may monitor our loans for the purpose of determining if you or other borrowers are complying with insurance requirements of our credit agreements or hire others to do so. The insurance fee added to the Loan may include (1) payments from the insurance company to us and (2) costs incurred to determine compliance with insurance requirements. If we add amounts for taxes, fees or insurance to the unpaid balance of the Loan, we could increase your payments for payment of the added amount within the period of insurance or the terms of the Loan. 7. NOTICE OF INSURANCE - If you do not buy insurance on the property that is required, the insurance we could buy and then charge to your outstanding balance, will cover only our interest in the Property. The insurance will not be for damage against third parties, and will not cover any financial responsibility towards the state or laws without designation of guilt. 8. NON-COMPLIANCE - You will be in non-compliance if you break any promise or commitment or fail to fulfill any obligations acquired through this agreement. You will also be in non-compliance under this agreement if the Loan is in non-compliance (as defined in the agreement) 9. WHAT HAPPENS IF YOU ARE IN NON-COMPLIANCE - When you are in non-compliance, we may demand immediate payment of the balance of the Loan without any notice and take possession of the Property. You agree that the Credit Union has the right to take possession of the property without judicial process if this can be done without disturbing the peace. If we ask, you agree to give up the Property at the time and place we designate. We are not be liable for any other property not included in this Agreement and that you leave inside the Property or that is attached to the Property. We will try to return these properties or leave them available for you to claim. After we take possession of the property, we can sell it and apply the money to any of the amounts you owe us. We will notify you of any public sale or the date after which the private sale will take place. Our expenses for taking possession and sale of the Property shall be deducted from the money received from the sale. These costs may include the cost of storing the Property, prepare it for sale and attorney expenses, to the extent permitted by state law or conferred under the Bankruptcy Code. The remaining money from the sale will be applied to the balance of the Loan. If you agreed to pay the Loan, you must also pay any amount that remains unpaid after the sale money has been applied to the balance of the Loan and that you owe under this Agreement. You also agree to pay the interests on those amounts in the same proportion of those agreed on the Loan until such amounts have been paid. 10. DELAY IN THE EXERCISE OF RIGHTS AND CHANGES IN THE LOAN - We reserve the authority to delay the exercise of any of our rights acquired under this Agreement any number of times without losing our capacity to exercise those rights later. We can exercise these rights acquired under this Agreement against your heirs or legal representatives. If we change the terms of the Loan, you agree that this Agreement shall remain in effect. 11. CONTINUED EFFECTIVENESS? If any part of this agreement is declared unenforceable by a court, the remainder shall remain in effect. 12. NOTICE APPLICABLE TO BORROWERS IN NORTH DAKOTA THAT WILL BUY A MOTOR VEHICLE - THE MOTOR VEHICLE IN THIS TRANSACTION MAY BE SUBJECT TO REPOSSESSION. IF IT IS NOT REPOSSESED AND SOLD TO SOMEONE ELSE, AND ALL AMOUNTS DUE TO THE GUARANTEED PARTY ARE NOT RECEIVED IN THAT SALE, YOU MAY HAVE TO PAY THE DIFFERENCE. 13. NOTICE APPLICABLE TO PROPERTY OWNERS IN ARIZONA - It is against the law if you violate your obligation to return a motor vehicle that is subject to a collateral, within thirty days after you received notification that you have been in non-compliance. The notice will be mailed to the address you provide. It is your responsibility to notify us if you change your address. The maximum penalty for breaking the law for non-compliance of your obligation to return a motor vehicle is one year imprisonment and / or a fine of $ 150,000.00. 14. NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR CAN USE AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED THROUGH OR FROM THESE FUNDS. THE AMOUNTS RECOVERED THIS WAY BY THE DEBTOR SHALL NOT EXCEED THE AMOUNTS PAID BY THE DEBTOR.