Home Equity Line of Credit (HELOC)

Dear Member,

Thank you for requesting Alliance Catholic Credit Union's Home Equity Loan Package. Please take a moment to read the very important information included in this packet.

Home Equity Line of Credit (HELOC) This loan features an open line of credit that you can activate as needed. The loan features an annual percentage rate that may vary. See the enclosed document titled "What you should know about home equity lines of credit."

ln order to begin your home equity loan request, please submit the following documentation:

1. Completed Application and signed Authorization Form (Included in this packet) 2. A check for $299.00. This is your origination fee. 3. Copy current Mortgage and any applicable riders 4. Copy of one of the following: Warranty Deed, Quit Claim Deed or Title Policy 5. Copies of two most recent paystubs for Borrower and Co-borrower 6. Copy of Divorce Judgment or Trust Document, if applicable 7. Copy of recent summer and winter property tax bill 8. If you have a copy of an appraisal that is less than six months old 9. Copy of current Homeowners Insurance Policy

Additional documentation may be required.

To check current rates, and speak to a Member Service Representative, please call us at 877.950.2228. Thank you for applying for a Home Equity Loan with Alliance Catholic Credit Union.

Enclosures

Application for

HOME EQUITY LINE OF CREDIT

(a variable rate loan)

ACCU Account Number

Amount requested for loan

$

Purpose of Loan: Property Address:

Home Improvements

Street Address

Manner in which Title will be held

Debt Consolidation

City

State

Other

ZIP

Phone

APPLICANT INFORMATION

Social Security Number

CO-APPLICANT INFORMATION

Social Security Number

LAST Name

LAST Name

FIRST Name

Middle Initial

FIRST Name

Middle Initial

Other Credit Name

Mother's Maiden Name

Other Credit Name

Mother's Maiden Name

Driver License Number

State

Birthdate

Driver License Number

State

Birthdate

Home Phone

Work Phone

Mobile Phone

Home Phone

Work Phone

Mobile Phone

E-Mail Address

E-Mail Address

CURRENT Address

CURRENT Address

City

City

State

ZIP

How long at this address?

State

ZIP

How long at this address?

CURRENT Employer Name

CURRENT Employer Name

Employer Address

Employer Address

Occupation

Supervisor/Manager Name

Occupation

Supervisor/Manager Name

Length of Employment Start Date

Hours Per Week Monthly Gross $ Length of Employment Start Date

Hours Per Week Monthly Gross $

Other Income (Alimony, child support, or separate maintenance income need not be

revealed if you do not wish to have it considered as a basis for repaying this obligation.)

$

PREVIOUS Employer Name

Other Income (Alimony, child support, or separate maintenance income need not be

revealed if you do not wish to have it considered as a basis for repaying this obligation.)

$

PREVIOUS Employer Name

Employer Address

Employer Address

Occupation

Supervisor/Manager Name

Occupation

Supervisor/Manager Name

Length of Employment Start Date

Hours Per Week Monthly Gross $ Length of Employment Start Date

Hours Per Week Monthly Gross $

Alliance Catholic Credit Union NMLS# 401254 9300 Cooper Street, Taylor, Michigan 48180

1.877.950.2228

Application continued on the back

Please answer the following questions. If a YES answer is given, EXPLAIN on attached sheet.

1. Have You filed a petition for bankruptcy in the last 10 years?

2. Have You ever had any auto, furniture or property repossessed?

3. Are you a co-maker or co-signer on any loan? For Whom ____________________________ Where _______________________________

4. Have You ever had credit in any other name? What Name ___________________________

5. Have You any suits pending, judgments filed, alimony or support Awards against You?

6. Do You have any past due bills?

7. Is any income You have listed likely to reduce in the next 2 years?

8. Is the property securing this loan You are applying for currently for sale?

9. Indicate immigration status:

Applicant:

U.S. Citizen

Co-Applicant: U.S. Citizen

Permanent U.S. Resident Permanent U.S. Resident

Mortgage Information

APPLICANT

YES

NO

YES

NO

YES

NO

CO-APPLICANT

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

YES

NO

Other ____________________ Other ___________________

First Mortgage Interest Rate: Estimated Home Value: Monthly Mortgage Payment: Mortgage Balance:

__________%

$_________________

$_________________

$_________________

Do You escrow for Property Taxes and/or Homeowner's Insurance? YES

NO

If NO, please indicate the following: Annual Taxes: $______________ Annual Insurance: $______________

Do You have a 2nd Mortgage or any type of existing Home Equity Loan currently? YES

NO

If Yes, please indicate the following:

Balance: $______________ Rate: $______________ Monthly Payment: $______________

Debt Protection

An appropriate application/disclosure will be furnished at the time Your credit is approved. Please check on of the boxes below:

You are interested in debt protection coverage You are NOT interested in debt protection coverage

Signatures

The undersigned applies for the loan indicated in this application to be secured by a mortgage or deed of trust on the property described herein, and represents that the property will not be used for any illegal or restricted purpose, and that all statements made in this application are true and are made for the purpose of obtaining the loan. Verification may be obtained from any source names in this application. The original or a copy of this application will be retained by the Lender, even if the loan is not granted. You warrant that You: ___ intend; ___ do not intend; to occupy the property as Your primary residence. You authorize Us to accept Your facsimile signatures on this application and agree that Your facsimile signature will have the same legal force and effect as Your original signature. You assume any risk that may be associated with permitting Us to accept Your facsimile signature. You fully understand that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the above facts as applicable under the provisions of Title 18, United States Code, Section 1014. You acknowledge the receipt of the applicable Home Equity Loan disclosures, including but not limited to, the Borrower's Bill of Rights, Consumer Caution and Home Ownership Counseling Notice, HUD Approved Housing Counseling Agencies (as required by MPA 660 of 2002) and if applicable, a copy of the

booklet "When Your Home is On the Line."

You hereby acknowledge Your intent to apply for joint credit: _____________ ________________

Applicant Initials Co-Applicant Initials

X __________________________ Date _________ X __________________________ Date _________

Applicant's Signature

Co-Applicant's Signature

Alliance Catholic Credit Union NMLS# 401254 9300 Cooper Street, Taylor, Michigan 48180

877.950.2228

9300 Cooper St. Taylor, MI 48180 877.950.ACCU

IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT

THIS DISCLOSURE CONTAINS INFORMATION ABOUT OUR HOME EQUITY LINE OF CREDIT. YOU SHOULD READ IT CAREFULLY AND KEEP THIS COPY FOR YOURSELF.

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 ("Security Property"). 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 120.00% 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 120 months (the draw period). During the draw period, payments will be due on a monthly basis. Your minimum monthly payment will be established at the time of each advance at an amount equal to $1.00 per $100.00 of your then outstanding principal balance (rounded up to the nearest $100.00), subject to the lesser of $50.00 or your account balance.

After the draw period ends, you will no longer be able to obtain credit advances and must repay any outstanding 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 120 months. During the repayment period, your minimum monthly 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 130 months to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 5.00%. During that period, you would make 120 monthly payments of $100.00, followed by 9 monthly payments of $100.00, and a final payment of $63.36.

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 will have to pay us $299.00. If you ask, we will give you an itemization of these fees.

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

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

Variable Rate Feature This plan has a Variable Rate feature. The Annual Percentage Rate (corresponding to the periodic rate), the number of your scheduled payments during the draw and repayment periods, and the amount of your final payment can change as a result. The Annual Percentage Rate includes only interest and

Copyright Oak Tree Business Systems, Inc., 2004-2019. All Rights Reserved.

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OTBS 021 OAKL (4/19)

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 25th day (or next business day) of the last month of each calendar quarter of each year. If more than one rate is shown, we will use the higher rate. 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 quarterly. There is no limit on the amount by which the interest can change during any one-year period other than the maximum and minimum Annual Percentage Rates that can apply at any time to this account.

The maximum ANNUAL PERCENTAGE RATE at any time is 18.00%. The minimum ANNUAL PERCENTAGE RATE at any time is 4.50%.

Maximum Rate And Payment Examples If you had an outstanding balance of $10,000.00 during the draw and repayment periods, the minimum payment at the maximum ANNUAL PERCENTAGE RATE of 18.00% would be $100.00. This Annual Percentage Rate could be reached during the 1st month of the draw and repayment periods.

Historical Example The following table shows how the Annual Percentage Rate and the monthly payments for a single $10,000.00 credit advance would have changed based on changes in the index since 2004. The index is from The Wall Street Journal and is calculated on the first business day of October 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.

Year

Index

Margin (1)

ANNUAL PERCENTAGE

RATE

Payment Period

Minimum Payment

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

4.75 6.75 8.25 7.75 5.00 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.50 4.25 5.25

-0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25 -0.25

4.50% 6.50% 8.00% 7.50% 4.75% 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 4.50% (2) 5.00%

DRAW DRAW DRAW DRAW DRAW DRAW DRAW DRAW DRAW DRAW REPAYMENT REPAYMENT REPAYMENT REPAYMENT REPAYMENT

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

$0.00 $0.00 $0.00

(1) This represents a margin we have recently used. (2) This represents the minimum annual percentage rate.

Copyright Oak Tree Business Systems, Inc., 2004-2019. All Rights Reserved.

Page 2 of 2

OTBS 021 OAKL (4/19)

ALLIANCE CATHOLIC CREDIT UNION

ADDENDUM TO IMPORTANT TERMS of our HOME EQUITY LINE OF CREDIT

Special One-Year Introductory Rate

In connection with your application for a Home Equity Line of Credit, we have provided you with a document entitled Important Terms of our Home Equity Line of Credit.

Alliance Catholic Credit Union has decided to offer certain borrowers a Special Introductory Rate on these lines of credit during the first year the plan is open. As a result of this decision, a number of changes must be made to the Important Terms of our Home Equity Line of Credit document.

Therefore, the Important Terms of our Home Equity Line of Credit document (the "document") is amended to provide as follows:

1. The section of the document under the heading "Variable Rate Feature" is deleted and replaced with the following:

Variable Rate Feature This plan has a variable rate feature. In general, the Annual Percentage Rate (corresponding to the periodic rate) during the draw and repayment periods, and the amount of your final payment, can change as a result. The annual percentage rate includes only interest and no other costs.

From the date this plan is open until the last day of the twelfth full month the plan is open, the annual percentage rate may be fixed at a discounted rate (this is known as a "special introductory rate"). Beginning on the first day of the month following the twelfth full month the plan is open (or, if there is no special introductory rate, on the first day the plan is open), the annual percentage rate will vary, 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 25th day (or next business day) of the last month of each calendar quarter of each year. If more than one rate is shown, we will use the higher rate. To determine the annual percentage rate that will apply to your account after the special introductory rate period, if there is one, or, if there is no special introductory rate, from the beginning, we add a margin to the value of the Index. Ask us for the current index value, margin, discounted rate (if any), and annual percentage rate. After you open a line of credit, rate information will be provided on periodic statements that we send you.

2. The section of the document under the heading "Rate Changes" is deleted and replaced with the following:

Rate Changes If your plan includes a special introductory rate, that rate will remain fixed until the last day of the twelfth full month the plan is open. Beginning on the first day of the month following the twelfth full month the plan is open, or the first day the plan is open, if there is no special introductory rate, your Annual Percentage Rate can change quarterly. After any applicable introductory rate period, there is no limit on the amount by which the interest can change during any one-year period, other than the maximum and minimum Annual Percentage Rates that can apply at any time to this account.

The maximum ANNUAL PERCENTAGE RATE at any time is 18.00%. Except for any applicable introductory rate period, the minimum ANNUAL PERCENTAGE RATE at any time is 4.50%.

1.

3. The section of the document under the heading "Maximum Rate and Payment Examples" is deleted and replaced with the following:

Maximum Rate and Payment Examples If you had an outstanding balance of $10,000 during the draw and repayment periods, the minimum payment at the maximum ANNNUAL PERCENTAGE RATE of 18% would be $100.00. During the draw period, this Annual Percentage Rate could be reached on the first day of the month following the twelfth full month the plan is open, if your plan includes a special introductory rate, or during the first month, if it does not. During the repayment period, this Annual Percentage Rate could be reached during the first month.

4. The section of the Agreement under the heading "Historical Example" is deleted and replaced with the following:

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 over the past 15 years. The index values are from the first business day of October of each year. While only one payment per year is shown, payments may 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.

ANNUAL

Payment

Minimum

Year

Index

Margin (1)

PERCENTAGE

Period

Payment

RATE

______________________________________________________________________________

2004

4.75

-0.25

2005

6.75

-0.25

2006

8.25

-0.25

2007

7.75

-0.25

2008

5.00

-0.25

2009

3.25

-0.25

2010

3.25

-0.25

2011

3.25

-0.25

2012

3.25

-0.25

2013

3.25

-0.25

2014

3.25

-0.25

2015

3.25

-0.25

2016

3.50

-0.25

2017

4.25

-0.25

2018

5.25

-0.25

1.59% (2) 1.59% (2) 8.00% 7.50% 4.75% 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 4.50% (3) 5.00%

DRAW DRAW DRAW DRAW DRAW DRAW DRAW DRAW DRAW REPAYMENT REPAYMENT REPAYMENT REPAYMENT REPAYMENT REPAYMENT

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $ 0.00 $ 0.00 $ 0.00

(1) This represents a margin we have recently used. (2) This represents a special introductory rate we have recently used. (3) This represents the minimum annual percentage rate, except for during any special introductory rate

period.

This Addendum is hereby incorporated into the Important Terms of our Home Equity Line of Credit document. None of the other disclosures in that document are amended by this Addendum.

2.

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