IMPORTANT TERMS of our Energy Federal CU 15-YEAR SELECT Home Equity Line of Credit

Please read these terms carefully and print a copy for yourself. You must agree to them before you may submit your application.

Availability of Terms
All terms described below are subject to change. If 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 you paid to us or anyone else in connection with your application.

Security Interest
We will take a Deed of Trust/Mortgage on your home. You could lose your home if you do not meet certain obligations in your agreement with us.

Possible Actions
Termination If you fail to meet the terms of repayment, or if you act or fail to act in a way that adversely affects our security interest or other rights in the Security Property, or if you have committed fraud or made a material misrepresentation in connection with the account, we may, subject to the Governing Law, terminate the plan, require payment in full of the entire outstanding balance in a single payment or cause the Security Property to be sold and the proceeds of such sale to be applied to your obligation to us. You agree to pay any reasonable costs of protecting, retaking, repairing or selling the Security Property.

Suspension
Your right to request additional advances may be suspended, or your maximum credit limit reduced, at our option in the following instances: (1) you fail to make the scheduled payments due to us; (2) you fail to make timely payments to the holders of Deeds of Trust/Mortgages senior to ours; (3) you fail to pay real property taxes prior to delinquency; (4) you fail to maintain the required property insurance; (5) the value of the Security Property declines significantly below the appraised value upon which we relied in approving your application; (6) we reasonably believe that your ability to meet your payment obligations is impaired because of a material change in your financial circumstances; (7) governmental action precludes our imposing the interest rate provided herein or adversely affects the priority of our security interest such that the value of our interest is less than 120% of your maximum credit limit; (8) the maximum interest rate under the plan is reached; or (9) government regulatory authorities find that further advances under this plan constitute an unsafe and unsound practice. When the condition which caused the suspension of advances or reduction of your maximum credit limit no longer exists, the original terms of your agreement will be reinstated. You understand that if your right to request additional advances is suspended or your maximum credit limit is reduced, you still owe us whatever sums you have already borrowed, all other charges under your agreement and applicable Finance Charges.

Minimum Payment Requirements
You can obtain credit advances for 180 months (the draw period). During the draw period, payments will be due on a monthly basis. Your minimum monthly payment will be established and fixed at the time of each advance (other than for any credit insurance premiums) to the amount necessary to fully amortize your then outstanding account balance over the following 240 months, rounded up to the nearest $1 and subject to the lesser of $150 or your account balance.

After the draw period ends, you will no longer be able to obtain credit advances (other than for any credit insurance premiums) and you must repay your outstanding account balance (the repayment period). The length of the repayment period will depend on the date and the amount of your last advance but in no event will exceed 240 months. During the repayment period, your minimum periodic payment will be calculated in the same manner as the draw period.

Paying only the minimum payment may not be sufficient to fully amortize your unpaid account balance by the end of the repayment period in which case, you will be required to pay your entire remaining account balance in a single balloon payment on the Agreement Maturity Date.

Minimum Payment Example
If you made only the minimum payments and took no other credit advances, it would take 87 months to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of 7.75%. During that period, you would make 86 monthly payments of $150.00 and a final payment of $76.88.

Late Charges
If your payment is more than 15 days late you will be charged 5.00% of the payment due, subject to a minimum of $15.

Negative Amortization
Under some circumstances, your payment will not cover the Finance Charges that accrue and Negative Amortization will occur. Negative Amortization will increase the amount that you owe us and reduce your equity in your home.

Fees and Charges
To open and maintain a line of credit, you must pay certain fees to third parties. These fees generally total from $500 to $3,000. If you ask, we will give you an itemization of the fees you will have to pay to third parties.

Insurance
You must carry insurance on the property that secures this plan.

Minimum Draw and Balance Requirements
The minimum credit advance you can receive is $500.

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

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

Variable Rate Feature
This plan has a Variable rate feature. The Annual Percentage Rate (corresponding to the periodic rate), the number of your regularly scheduled payments during the draw and the repayment periods can change as a result. The Annual Percentage Rate includes only interest and no other costs. The Annual Percentage rate is based on the value of an index. The index is the highest Prime Rate as published in the Money Rates Section of the Wall Street Journal in effect on the last day of December and June of each year. To determine the Annual Percentage Rate that will apply to your line of credit, we add a margin to the value of the index. Ask us for the current index value, margin, and Annual Percentage Rate. After you open a line of credit, rate information will be provided in periodic statements that we send you.

Rate Changes
Your Annual Percentage Rate can change on the first day of January and July of each year. There is no limit on the amount by which the interest rate can change during any 1 year period other than the maximum and minimum Annual Percentage Rates that can apply at any time to this account.

The minimum ANNUAL PERCENTAGE RATE at any time is 4.00%. The maximum ANNUAL PERCENTAGE RATE at any time is 18.00%.

Maximum Rate and Payment Examples
If you had an outstanding balance of $10,000 during the draw period, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be $150.00. This Annual Percentage Rate could be reached during the 1st month of the draw period.

Historical Example
The following table shows how the Annual Percentage Rate and the monthly payments for a single $10,000 credit advance would have changed based on changes in the index since 1993. The index is from The Wall Street Journal and is calculated on the first business day of February of each year. While only one payment amount per year is shown, payments may have varied during the year. 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 will change in the future.

Please note: For further information, we will send you the Federal Reserve Board's Consumer Handbook on Adjustable-Rate Mortgages in the mail upon receipt of your application. To view this information at this time, you may click on the title in the previous sentence. The link will take you to the Federal Reserve Board's website where you may view the contents of the booklet or print out a copy.