G-15—Home Equity Model Clauses

(a) Retention of information: This disclosure contains important information about our home-equity line of credit. You should read it carefully and keep a copy for your records.

(b) Availability of terms: To obtain the terms described below, you must submit your application before (date). However, the (description of terms) are subject to change.

[or

All of the 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.

(c) Security interest: We will take a [security interest in/mortgage on] your home. You could lose your home if you do not meet the obligations in your agreement with us.

(d) Possible actions: Under certain circumstances, we can (1) terminate your line, require you to pay us the entire outstanding balance in one payment [, and charge you certain fees]; (2) refuse to make additional extensions of credit; (3) reduce your credit limit [; and (4) make specific changes that are set forth in your agreement with us].

If you ask, we will give you more specific information about when we can take these actions.

[or

Possible actions: We can terminate your account, require you to pay us the entire outstanding balance in one payment [, and charge you certain fees] if:

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

[The initial agreement permits us to make certain changes to the terms of the agreement at specified times or upon the occurrence of specified events.]

(e) Minimum-payment requirements: The length of the [draw period/repayment period] is (length). Payments will be due (frequency). Your minimum payment will equal (how payment determined).

[The minimum payment will not reduce the principal that is outstanding on your line./The minimum payment will not fully repay the principal that is outstanding on your line.] You will then be required to pay the entire balance in a single “balloon” payment.

(f) Minimum-payment example: If you made only the minimum payments and took no other credit advances, it would take (length of time) to pay off a credit advance of $10,000 at an ANNUAL PERCENTAGE RATE of (recent rate). During that period, you would make (number) (frequency) payments of $

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.

(g) Fees and charges: To open and maintain a line of credit, you must pay the following fees to us:

(Description of fee) [$

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/

---

% of

---

]  (When payable)

(Description of fee) [$

---

/

---

% of

---

]  (When payable)

You also must pay certain fees to third parties. These fees generally total [$

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/

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% of

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/between $

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and [$

---

]. If you ask, we will give you an itemization of the fees you will have to pay to third parties.

(h) Minimum draw and balance requirements: The minimum credit advance you can receive is $

---

. You must maintain an outstanding balance of at least $

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.

(i) Negative amortization: Under some circumstances, your payments 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.

(j) Tax deductibility: You should consult a tax advisor regarding the deductibility of interest and charges for the line.

(k) Other products: If you ask, we will provide you with information on our other available home-equity lines.

(l) Variable-rate feature: The plan has a variable-rate feature and the annual percentage rate (corresponding to the periodic rate) and the [minimum payment/term of the line] 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 (identification of index) and is [published in/available from] (source of information). To determine the annual percentage rate that will apply to your line, we add a margin to the value of the index.

[The initial annual percentage rate is “discounted”—it is not based on the index and margin used for later rate adjustments. The initial rate will be in effect for (period).]

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.

(m) Rate changes: The annual percentage rate can change (frequency). [The rate cannot increase by more than

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percentage points in any one-year period./There is no limit on the amount by which the rate can change in any one-year period.] [The maximum ANNUAL PERCENTAGE RATE that can apply is

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%./The ANNUAL PERCENTAGE RATE cannot increase by more than

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percentage points above the initial rate.] [Ask us for the specific rate limitations that will apply to your credit line.]

(n) Maximum-rate and payment examples: If you had an outstanding balance of $10,000, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of

---

% would be $

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. This annual percentage rate could be reached (when maximum rate could be reached).

(o) Historical example: The following table shows how the annual percentage rate and the minimum payments for a single $10,000 credit advance would have changed based on changes in the index over the past 15 years. The index values are from (when values are measured). [While only one payment amount per year is shown, payments would have varied during each 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 each year. It does not necessarily indicate how the index or your payments will change in the future.