Early Disclosure

By clicking here, you hereby acknowledge that you have read this Disclosure and the Home Equity Brochure.

Availability of Terms: All of the terms described below are subject to change. If the terms change (other than the annual percentage rate) and you decide, solely as a result of such change, not to enter into agreement with us, you are entitled to a refund of any fees you paid to us or anyone else in connection with your application.

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

Possible Actions: Under certain circumstances, we can terminate your line, require you to pay us the entire outstanding balance in one payment and charge you certain fees, if:

• You engage in fraud or material misrepresentation in connection with the line.
• You do not meet the repayment terms.       
• Your action or inaction adversely affects the collateral or our rights in the collateral.

We can refuse to make additional extensions of credit or reduce your credit limit, or both if:

• The value of the dwelling securing the line declines significantly below its appraised value for purposes of the line.
• We reasonably believe you will not be able to meet repayment requirements due to a material change in your financial circumstance.
• You are in default of material obligation under the agreement.
• Government actions prevent us from imposing the annual percentage rate provided for or impairs the priority of our security interest such that the value of the interest is less than 120 percent of the credit line.
• The maximum annual percentage rate is reached.
• The creditor is notified by its regulatory agency that continued advances constitute an unsafe and unsound practice.
• Either of us requests a suspension of credit privileges.

The initial Agreement permits us to make changes to the terms of the Agreement at specified times or upon the occurrence of specified events.

Minimum-Payment Requirements: You can obtain credit advances for five (5) years. During this period, payments will be due monthly. Your minimum monthly payment will equal the amount of finance charges that accrued on the outstanding balance during the previous month. The minimum payment will not reduce the principal that is outstanding on your line by the end of 5 years. You will then be required to pay the entire balance in a single balloon payment.

Minimum Payment Example: If you made only the minimum monthly payment and took no other credit advances, it would take 5 years to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 5.25%. During that period, you would make 59 payments of $43.15, with a final payment of $10,043.15.

Fees and Charges: To open and maintain an account, you must pay the following fees to us:

• Annual maintenance fee of $35, due annually beginning one year from origination

You may also be required to pay certain fees to third parties (such as appraisers, title companies, and government agencies). These fees are based on loan amount and generally vary between $200 and $1000. If you ask, we will give you an itemization of the fees you will have to pay to third parties.

Late Fee: 5.00 percent of the unpaid portion of payment or $6.24, whichever is greater, if payment is 10 days late.

Property Insurance: In addition to these fees and charges, you must carry insurance (including, without limitation, flood insurance if required) on the property that secures the line. You may select the insurance company or agent of your choice, provided the insurance company and coverage meet our requirements.

Refundability of Fees: If you decide not to enter into this line of credit within three days of receiving this disclosure and the Home Equity brochure, you are entitled to a refund of any fee you may have already paid. 

Minimum Draw Requirement: The minimum credit advance that you can receive is $300. You may make advances in person or by using Kleinet, Telebank, by phone, by mail, by check or by tying the loan to your regular DDA account.

Tax Deductibility: Consult a tax advisor regarding the deductibility of interest and charges for the line.

Other Products: If you ask, we will provide you with information on our other home equity products.

Variable-Rate Feature: This plan has a variable-rate feature, and the annual percentage rate (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The annual percentage rate includes only interest and not other costs.

The annual percentage rate is based on the value of an index. The index is the base rate on corporate loans posted by at least 75% of the nation's 30 largest banks known as the Wall Street Journal Prime Rate. To determine the annual percentage rate that will apply to your line, we add a margin to the value of the index. Ask us for the current index value, margin, discount and annual percentage rate. After you open a credit line, rate information will be provided on periodic statements that we send you.

Rate Changes: The annual percentage rate can change daily. Apart from the rate "cap," there is no limit on the amount by which the rate can change during any one-year period. The maximum ANNUAL PERCENTAGE RATE that can apply during the plan is 21.75%.

Maximum-Rate and Payment Examples: If you had an outstanding balance of $10,000, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE OF 21.75% would be $178.77. The maximum annual percentage rate could be reached the first day following an initial hold of 1 day.

Historical Example: The following table shows how the ANNUAL PERCENTAGE RATE and the minimum monthly payments for a $10,000 outstanding balance would have changed based on changes in the index over the past 15 years. The index values are from the first business day of January of each year. While only one payment amount per year is shown, payments during the repayment period would have varied during each year. The table assumes an outstanding balance of $10,000, that only the minimum payments were made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments will change in the future.

¹This is a margin we have used recently on certain lines where the borrower's request meets our credit criteria and loan to value requirements.

(P) At the end of this year a balloon payment of $10,078.08 would occur. You would be required to pay the entire balance in one payment.

This disclosure is not an offer to enter into an interest rate or discount point agreement. Such an offer may only be made pursuant to Minnesota Statute 47.59.

By clicking below, you hereby acknowledge receipt of this "Important Terms of Our Home Equity Line of Credit" Disclosure and a copy of the Home Equity booklet, "When Your Home is on the Line,"

By clicking here, you hereby acknowledge that you have read this Disclosure and the Home Equity Brochure.