cmg home ownership accelerator example doc set ca050207

Closing Instructions CMG MORTGAGE, INC.3160 CROW CANYON ROAD STE 350, SAN RAMON, CALIFORNIA 94583 Phone: Fax: (925) 983-3159

Date: March 4, 2006 Order #: 88-88888 Loan No.: 62000001 Case No.: Loan Closer: DEBBIE STEELE Fax #: Loan Officer: CORPORATE WHOLESALE (949) 442-2250 Loan Amount: $ 500,000.00 Interest Rate: 6.631 Margin: 2.000 Property: 111 TBD 1 Month Libor Index: 4.631 SAN RAMON, CALIFORNIA 94583 Loan Type: Home Equity Loan without Initial Rate Period First Payment: April 1, 2006 Mailing Addr: Last Payment: 111 TBD March 1, 2036 Term: (Draw Period) 120 SAN RAMON, CALIFORNIA 94583 Documents for the above referenced borrowers are attached. All other items enclosed are to be properly executed (and notarized where required) and copies conformed and returned to this office with a signed copy of these instructions. DO NOT CHANGE any documents without our specific approval. Borrowers must sign exactly as their names are shown. Return all executed original documents and provide copies to borrowers. The CLOSED LOAN FILE must be received by our office following the closing for review prior to us authorizing recording of the documents. You are authorized to record and disburse funds when you are in a position to issue your extended coverage Lenders policy of title insurance in the amount of the loan, insuring the enclosed Deed of Trust/Mortgage to be a First Lien or charge upon the real property described therein, subject only to the following exceptions numbered: 1-3. The Title Policy must contain endorsements 8.1,111.9. This loan must record on or before: March 31, 2006. Lender is to be at no expense in this transaction. CMG MORTGAGE, INC. reserves the right to cancel or amend the terms of this loan and/or instructions at any time prior to recordation of our Deed of Trust. Return Documents To: CMG MORTGAGE, INC. ADMINISTRATION SAN RAMON 3160 CROW CANYON ROAD STE 350 SAN RAMON, CALIFORNIA 94583 Loss Payee Clause: CMG MORTGAGE, INC. Its successors and/or assigns 3160 Crow Canyon Rd., Ste 240 San Ramon, CA 94583 Other Conditions: 1. ATTENTION CLOSING AGENT: BORROWER(S) WILL HAVE $xx IN UNDISBURSED EQUITY FUNDS. 2. ATTENTION CLOSING AGENT: ONE OF THE TWO FORMS OF CUSTOMER IDENTIFICATION MUST BE AN UNEXPIRED STATE-ISSUED IDENTIFICATION. 3. ATTENTION CLOSING AGENTS: IF YOUR FEES CHANGE OR INCREASE FROM THE AMOUNTS NOTED ON OUR CLOSING INSTRUCTIONS YOU MUST NOTIFY US IMMEDIATELY AS REVISED DOCUMENTS MUST BE CREATED AND SIGNED BY THE BORROWER(S). CHANGES WILL DELAY LOAN CLOSINGS. 4. BORROWERS WILL RECEIVE $XX OF NRCC/CC CREDIT FROM ______ AT CLOSING. 5. LOAN MUST FUND/DISBURSE BY LAST BUSINESS DAY OF THE MONTH; NO FUNDING INTO THE NEXT MONTH.

Settlement Agent: LSI 2550 REDHILL AVENUE SANTA ANA, CALIFORNIA 92705 Attn: JANA CUNNINGHAM Phone #: (800) 846-5678 Mortgagors: JOHN HOMEOWNER MARY HOMEOWNER

See attached page for breakdown of loan fees.

Escrow Officer

heqstdis

62000001

CLOSINGINS

Settlement Charges Paid By Borrower Discounts Points __________% TO CMG Appraisal to TO DALENE'S COUNTRY APPRAISAL SERVICE ADMIN FEE LENDER TO CMG PROCESSING FEE - BROKER TO CMG MTG, INC. - CORP W/S COURIER/DELIVERY - BROKER TO PBB $35.00 Settlement or closing fee to TO LSI Notary fees to TO LSI Title insurance to TO LSI RECORDING FEE (900) TO LSI Interim Interest from 03/04/2006 to 04/01/2006 days @ 92.10/ day Total Settlement Charges Total Disbursements Initial Advance to Borrower Total Settlement Charges Cash to/from Borrower $ $ $ 490,000.00 6,213.76 483,786.24 $ $ $ $ $ $ $ $ $ $ $ 612.50 20.00 799.00 195.00 742.96 50.00 1,130.50 85.00 2,578.80 6,213.76 $ $ $ $ $ $ $ $ $ $ $ Paid By Seller

NET SETTLEMENT Loan Amount Plus Cash / Check from Borrower Minus Total Settlement Charges Minus Total Disbursements to Others Minus Undisbursed Funds to Borrower Equals Disbursement to Borrower (after expiration of any applicable rescission period required by law)

$ $ $ $ $ $

500,000.00 6,213.76 10,000.00 483,786.24 $

DATE: BORROWER: CASE #: LOAN #: PROPERTY ADDRESS:

March 4, 2006 JOHN HOMEOWNER 62000001 111 TBD SAN RAMON, CALIFORNIA 94583

NOTICE OF RIGHT TO CANCELHome Equity Line of Credit Your Right to Cancel: We have agreed to establish an open-end credit account for you, and you have agreed to give us a security interest in your home as security for the account. If all or some portion of your account is used to finance the downpayment for the purchase of the property identified above (the Purchase Portion), we are permitted to disburse the Purchase Portion of your account prior to the expiration date indicated below in the section entitled How to Cancel. You have a legal right under federal law to cancel the security interest applicable to the remainder of the funds available in your account (the Nonpurchase Portion), without cost, within three business days after the latest of the following events: 1. the opening date of your account which is March 4, 2006; or 2. the date you received your Truth-in-Lending disclosures; or 3. the date you received this notice of your right to cancel the account. The Nonpurchase Portion of your line includes any funds from the Purchase Portion that you subsequently repay and then use again for some other purpose. If none of the account is being used to purchase the property identified above, then the Nonpurchase Portion is the entire amount of the account. If you cancel, your cancellation will apply only to the Nonpurchase Portion and to the security interest resulting from that portion. It will not affect the amount you owe for the Purchase Portion, and it will not affect the security interest we have in your home for the Purchase Portion but it will terminate your ability to take additional funds from your account. Within 20 days of receiving your notice, we must take the necessary steps to reflect the fact that the security interest in your home has been reduced by the amount of the Nonpurchase Portion or cancelled, if applicable. If we require you to sign any documents or take any actions in connection with reducing the security interest, you must do so. We must return to you any money or property you have given to us or to anyone else in connection with the Nonpurchase Portion. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address shown below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation. How to Cancel: If you decide to cancel the account, you may do so by notifying us, in writing, at: CMG MORTGAGE, INC. 3160 CROW CANYON ROAD STE 350 SAN RAMON, CALIFORNIA 94583 You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice no matter how you notify us because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of (or midnight of ____________________ the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way it must be delivered to the above address no later than that time. __________ __________ Initials Initials I WISH TO CANCEL___________________________________________________________________________________ Consumers Signature _____________________________________________ Date

The undersigned each acknowledge receipt of two completely filled in copies of the above Notice of Right to Cancel. Each of the undersigned has the right to cancel. The exercise of this right by one of the undersigned shall be effective as to all of the undersigned.

Consumers Signature JOHN HOMEOWNER

Date

HELOC - Notice of Right to Cancel FE-3162 (0408)

8/04

he3162

62000001

NOTICE






Date


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62000001

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62000001

NOTICE


March 4, 2006 MARY HOMEOWNER 62000001 111 TBD SAN RAMON, CALIFORNIA 94583



Consumers Signature MARY HOMEOWNER BY JOHN A. SIGNER, ATTORNEY-IN-FACT

Date


8/04

he3162

62000001

NOTICE






Date


8/04

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62000001

NOTICE






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8/04

he3162

62000001

NOTICE

INSTRUCTIONS FOR COMPLETING THE NOTICE OF RIGHT TO CANCEL FOR ALL HELOCS THE NOTICE OF RIGHT TO CANCEL (NRTC) IS SIGNATURE AND DATE SENSITIVE. YOU MUST MAKE SURE THAT THE DATES ON THE NRTC ARE COMPLETED CORRECTLY AND YOU MUST MAKE SURE THAT THE NOTICE IS PROPERLY SIGNED. IF THERE ARE ANY MISTAKES ON THIS DOCUMENT THAT ARE NOT CORRECTED AT CLOSING, FEDERAL LAW WILL REQUIRE NEW, REDRAWN DOCUMENTS TO BE SIGNED. SUCH A REDRAW WILL CAUSE THE FUNDING TO BE DELAYED.ATTENTION NOTARY: If any dates on this form are incorrect, you must correct them by lining through the incorrect date and writing the correct date directly above or beside the cross-out. The change must be initialed by all persons who sign the Notice of Right to Cancel (NRTC). If there are multiple signers, each signer has the right to cancel. We supply 2 copies of the NRTC for each signer. Each person who signs the NRTC must be given 2 copies with dates #1 & #3 filled in. We must receive back with the signed closing package an acknowledgement from each signer that he/she received these copies. Make certain that all dates are entered, accurate, and initialed by the person signing the NRTC before leaving the signing/ closing. HOW TO PERFORM CORRECTIONS AND ADDITIONS TO THIS FORM If any error is made when signing and completing the NRTC, each and every correction must be lined through, corrected, and initialed by all signers. Example: 10/13/10 JH Date: 10/12/10 EXPLANATION OF DATES Transaction Date The date the Note and Mortgage or Deed of Trust are signed in the presence of the notary. The addition of this date will require the signers initials. Rescission Expiration Date To calculate, count the next three (3) business days after the latest of the three . Include Saturdays, events shown in but do not include Sundays or the following Federal holidays: New Years Day January 1 Martin Luther 3rd Monday in January Kings Birthday Presidents Day 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day 1st Monday in September Columbus Day 2nd Monday in October Veterans Day November 11 Thanksgiving Day 4th Thursday in November Christmas Day December 25 The addition of this date will require the signers initials. Signature Date The acknowledgement section must be signed by each person who has a right to cancel this transaction. This includes a non-borrowing spouse, if required by the state. Each signature must be dated. DATE: BORROWER: CASE #: LOAN #: PROPERTY ADDRESS: John Homeowner 62000000

NOTICE OF RIGHT TO CANCELHome Equity Line of Credit Your Right to Cancel: We have agreed to establish an open-end credit account for you, and you have agreed to give us a security interest in your home as security for the account. If all or some portion of your account is used to finance the downpayment for the purchase of the property identified above (the Purchase Portion), we are permitted to disburse the Purchase Portion of your account prior to the expiration date indicated below in the section entitled How to Cancel. You have a legal right under federal law to cancel the security interest applicable to the remainder of the funds available in your account (the Nonpurchase Portion), without cost, within three business days after the latest of the following events: 1. the opening date of your account which is __________________________; or 2. the date you received your Truth-in-Lending disclosures; or 3. the date you received this notice of your right to cancel the account. The Nonpurchase Portion of your line includes any funds from the Purchase Portion that you subsequently repay and then use again for some other purpose. If none of the account is being used to purchase the property identified above, then the Nonpurchase Portion is the entire amount of the account. If you cancel, your cancellation will apply only to the Nonpurchase Portion and to the security interest resulting from that portion. It will not affect the amount you owe for the Purchase Portion, and it will not affect the security interest we have in your home for the Purchase Portion but it will terminate your ability to take additional funds from your account. Within 20 days of receiving your notice, we must take the necessary steps to reflect the fact that the security interest in your home has been reduced by the amount of the Nonpurchase Portion or cancelled, if applicable. If we require you to sign any documents or take any actions in connection with reducing the security interest, you must do so. We must return to you any money or property you have given to us or to anyone else in connection with the Nonpurchase Portion. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address shown below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation. How to Cancel: If you decide to cancel the account, you may do so by notifying us, in writing, at: CMG MORTGAGE, INC. 3160 CROW CANYON ROAD, STE 350 SAN RAMON, CALIFORNIA 94583

A

You may use any written statement that is signed and dated by you and states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice no matter how you notify us because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of (or midnight the third business day following the latest of the three events listed above). of If you send or deliver your written notice to cancel some other way it must be delivered to the above address no later than that time. _____________ ____________ Initials Initials I WISH TO CANCEL __________________________________________________________ Consumers Signature _________________________ D


Consumers Signature John Homeowner

Current Date Date

ADDITIONAL NRTC INSTRUCTIONS A 1. Lender name and address must be listed in HELOC purchase money transactions require a rescission on future draws, but the purchase transaction may 2. fund prior to the expiration date of the rescission document. Each borrower has his or her own set of rescission notices. 3. Signer must sign his or her name as shown under the signature line. 4.

Closing agent to sign this form acknowledging procedures for completion of the NRTC. _______________________________________________________ _________________ Closing Agent Date cmghnrtc

62000001

NOTICERTC

SERVICING DISCLOSURE STATEMENTLENDER: CMG MORTGAGE, INC. LOAN NUMBER: 62000001

NOTICE TO MORTGAGE LOAN APPLICANTS: THE RIGHT TO COLLECT YOUR MORTGAGE LOAN PAYMENTS MAY BE TRANSFERRED. FEDERAL LAW GIVES YOU CERTAIN RELATED RIGHTS. IF YOUR LOAN IS MADE, SAVE THIS STATEMENT WITH YOUR LOAN DOCUMENTS. SIGN THE ACKNOWLEDGMENT AT THE END OF THIS STATEMENT ONLY IF YOU UNDERSTAND ITS CONTENTS. Because you are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. Sec. 2601 et seq.) you have certain rights under that Federal law. This statement tells you about those rights. It also tells you what the chances are that the servicing for this loan may be transferred to a different loan servicer. Servicing refers to collecting your principal, interest, and escrow account payments, if any. If your loan servicer changes, there are certain procedures that must be followed. This statement generally explains those procedures. Transfer Practices and Requirements If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice of that transfer. The present loan servicer must send you notice in writing of the assignment, sale or transfer of the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also send you notice within 15 days after the effective date of the transfer. The present servicer and the new servicer may combine this information in one notice, so long as the notice is sent to you 15 days before the effective date of transfer. The 15 day period is not applicable if a notice of prospective transfer is provided to you at settlement. The law allows a delay in the time (not more than 30 days after a transfer) for servicers to notify you, upon the occurrence of certain business emergencies. Notices must contain certain information. They must contain the effective date of the transfer of the servicing of your loan to the new servicer, and the name, address, and toll-free or collect call telephone number of the new servicer, and toll-free or collect call telephone numbers of a person or department for both your present servicer and your new servicer to answer your questions about the transfer of servicing. During the 60-day period following the effective date of the transfer of the loan servicing, a loan payment received by your old servicer before its due date may not be treated by the new loan servicer as late, and a late fee may not be imposed on you. Complaint Resolution Section 6 of RESPA (12 U.S.C. 2605) gives you certain consumer rights, whether or not your loan servicing is transferred. If you send a qualified written request to your servicer, your servicer must provide you with a written acknowledgment within 20 Business Days of receipt of your request. A qualified written request is a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, which includes your name and account number, and your reasons for the request. Not later than 60 Business Days after receiving your request, your servicer must make any appropriate corrections to your account, or must provide you with a written clarification regarding any dispute. During this 60-Business-Day period, your servicer may not provide information to a consumer reporting agency concerning any overdue payment related to such period or qualified written request. A Business Day is any day in which the offices of the business entity are open to the public for carrying on substantially all of its business functions. Damages and Costs Section 6 of RESPA also provides for damages and costs for individuals or classes of individuals in circumstances where servicers are shown to have violated the requirements of that Section. Servicing Transfer Estimates by Original Lender 1. The following is the best estimate of what will happen to the servicing of your mortgage loan: [X] We do not service mortgage loans. We intend to assign, sell, or transfer the servicing of your loan to another party. You will be notified at settlement regarding the servicer. OR [ ] While we have the ability to service this mortgage loan, we have chosen not to do so. We therefore intend to assign, sell, or transfer the servicing of your loan to another party. You will be notified after settlement regarding the servicer. OR [ ] We are able to service this loan and presently intend to do so. However, that may change in the future. 2. For all the loans that we make in the 12-month period after your loan is funded, we estimate that the percentage of such loans for which we will transfer servicing is between: [ ] 0 to 25% [ ] 26 to 50% [ ] 51 to 75% [X] 76 to 100% This is only our best estimate and it is not binding. Business conditions or other circumstances may affect our future transferring decisions. 3. This is our record of transferring the servicing of the loans we have made in the past: Year Percentage of Loans Transferred (Rounded to nearest quartile - 0%,25%,50%,75% or 100%) 2005 100 % 2004 100 % 2003 100 % The estimates of 2, and 3, above [ ] do [X] do not include assignments, sales or transfers to affiliates or subsidiaries. If the servicing of your loan is transferred to an affiliate or subsidiary in the future, you will be notified in accordance with RESPA. ACKNOWLEDGMENT OF MORTGAGE APPLICANT I/We have read this disclosure form, and understand its contents, as evidenced by my/our signature(s) below. I/We understand that this acknowledgment is a required part of the mortgage loan application.

Borrower

JOHN HOMEOWNER

Date

Borrower

MARY HOMEOWNER

Date

BY JOHN A. SIGNER, ATTORNEY-IN-FACT

Borrower

Date

Borrower

Date

idcmgmod

62000001

BUYDOWN

CMG Deposit Agreement with GMAC Bank Effective July 2005

GMAC BankGMAC BANK MEMBER FDIC / EQUAL HOUSING LENDER

cmgarmnt

62000001

OTHER

TABLE OF CONTENTS Deposit Agreement and Disclosures A. Legal Effect of Agreement . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B. Account Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. CMG Checking Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Average Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C. Ownership of Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Individual Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Joint Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Power of Attorney. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D. General Rules Governing Deposit Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Authorized Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Facsimile Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Placement of Endorsements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Collection of Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Automated Processing of Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Fraud Detection/Deterrence and Safeguarding Your Account . . . . . . . . . . . . . . . . . . . . . . . . . 8. Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Review of Account Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Check Safekeeping and Check Image . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. Check Copies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Payment of Checks and Other Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13. Insufficient Funds/Overlimit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14. Stale, Time-Dated and Post-Dated Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15. Stop Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16. Official Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17. Service Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18. Accuracy and Verification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19. CMG Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20. Telephone Access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21. Automated Clearinghouse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22. Transfer of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23. Abandoned/Dormant Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24. Arbitration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25. Conflict/Disputes Involving the Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26. Check 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27. Legal Process Affecting Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28. Indemnification of Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29. Costs and Attorneys' Fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30. Setoff of Debts and Security Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31. Changing this Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32. Terminating this Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33. Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34. Applicable Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35. Customer's Waiver of Notice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36. Information Reported to Consumer Reporting Agencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 2 2 2 2 2 3 3 3 3 4 4 5 5 5 5 6 6 6 7 7 7 7 7 7 8 8 8 8 9 9 9 10 10 10 10 11 11 11 11 11

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37. Force Majeure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 38. Invalidity of Contract Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 39. Entire Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Customer Identification Program (CIP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Wire Transfer Terms and Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. Authorization and Security Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Execution of Payment Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Cut-Off Times. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Advice of Funds Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Limitation of Liability and Indemnification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Use of Identifying Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Interest Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. International Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 12 12 12 12 12 12 13 13

Privacy Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Security Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Electronic Funds Transfer Disclosure and Special Terms and Conditions . . . . . . . . . . . . . . . . . . . . . . 1. Types of Electronic Funds Transfers Available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Right to Receive Documentation of Electronic Funds Transfers . . . . . . . . . . . . . . . . . . . . . . . . 3. Right to Stop Payment of Pre-authorized Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Liability for Failure to Stop Payments of Automated Debits . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Notice of Varying Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Liability for Unauthorized Transfers from Your Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Unauthorized Transfers from Your Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. Liability for Failure to Make Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Business Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. Disclosure of Account Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. In Case of Errors or Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12. Bank Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. B. C. D. CMG Agreement and Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule of Fees and Service Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Funds Availability Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 15 15 15 15 15 15 15 15 16 16 16 16 16 16 20 20 21

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INTRODUCTION Welcome to GMAC Bank. Thank you for banking with us. This Deposit Agreement ("Agreement") contains the following sections: Deposit Agreement and Disclosures Customer Identification Program (CIP) Wire Transfer Terms and Conditions Privacy Overview Security Overview Electronic Funds Transfer Disclosure and Special Terms and Conditions Please read and retain this Agreement so that you can refer to it whenever you have questions about your account. If you have any questions after reading this Agreement, we would be happy to answer them. You may obtain an additional copy at our branch or by calling 866-2GM-Bank (866-246-2265).

DEPOSIT AGREEMENT AND DISCLOSURESA. Legal Effect of Agreement This Agreement governs all personal deposit accounts established with GMAC Bank and supersedes any previous deposit agreement. The words "you," "your" and "yours" as used in this Agreement refer to the person(s) who maintain one or more personal deposit accounts with us, including but not limited to, all owners and signers on the account. The words "we," "us," "our" and "Bank" refer to GMAC Bank. By opening and using and/or maintaining an account with us, you agree to the terms and conditions of this Agreement, including the fees and charges listed in the applicable Schedule of Fees and Funds Availability, Rate Disclosures and other account opening materials that are incorporated herein by reference. This Agreement and the Schedule of Fees and Funds Availability and Rate Disclosures are part of our legally binding contract with you. Our deposit relationship with you is that of creditor and debtor, and you agree and acknowledge that we are not in any way acting as a fiduciary for you or for your benefit. B. Account Disclosures CMG Checking. This checking account is a demand deposit account and is only offered in conjunction with a CMG Home Ownership Accelerator Line of Credit Agreement and Disclosure Statement (HELOC Agreement) account. No interest will be paid on this demand deposit account. That means we reserve no right to require notice before withdrawal from this account and permit an unlimited number of transfers to third parties by check. 1. Deposits. All items deposited to this account will be automatically transferred to and credited to your HELOC Account up to the balance outstanding in your HELOC Account. If the amount deposited in this account exceeds the outstanding balance in your HELOC Account, the excess will remain in this account. Debits. All checks drawn on this account, credit card draws or other debits to this account will be deducted from any balance in this account. If there is no balance in this account the check, credit card draw or other debit will be paid by a transfer from your HELOC Account to this account. Notwithstanding the foregoing, Lender may not transfer funds to this account to pay for any check, credit card draw or other debit if you are in default of your HELOC Agreement, the HELOC Agreement has been terminated or suspended, you have exceeded your credit limit in the HELOC Account or as otherwise provided in your HELOC Agreement. Any check, credit card draw or other debits drawn on your account to the extent it exceeds the balance of your account will reduce your HELOC available balance. Average Balance. The average balance in your account during the statement period is calculated by adding the balance in your account for each day of the period and dividing that figure by the number of days in the period.

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3. C.

Ownership of Accounts 1. General. Certain accounts offered by the Bank have eligibility requirements that must be met. You agree to meet all the applicable requirements at the time any account is opened, including but not limited to, providing all required identification. All accounts must be owned either as a single ownership, or joint ownership account. The Bank does not recommend that you 1

open a particular type of account and is not responsible for the tax consequences or legal effect of opening an account. You acknowledge and agree that you accept full responsibility for determining the type of account to open. Questions about the type of account you should open should be referred to your accountant or legal counsel. If you wish to add an owner to, delete an owner from, or otherwise change the ownership of an account, we may require you to close the account, to surrender any appropriate account documents, and to open a new account listing the new owners. No changes in account information will be effective until the Bank receives the appropriate notice in writing and has had opportunity to act upon it. The type of accounts you select may determine how property passes on in the event of your death. Your will may not control the disposition of funds held in some of the following accounts. 2. Individual Accounts. By opening an individual account, you are considered by us to be the sole owner of the account, regardless of whether any other person is designated as a POD payee or ITF payee (as defined below). You may designate another person to write checks on the account by granting them a limited power of attorney on a form acceptable to the bank, without granting them any ownership interest in your account. Otherwise, you will be the only person authorized to use the account. On the death of the party, ownership of the account passes as a part of the party's estate under the party's will or by intestate succession for a person having no valid will. Joint Accounts. If your account is in two or more names (without a fiduciary, beneficiary or other designation), it is a joint account and we will presume it is a joint account with right of survivorship, subject to applicable state law. Each joint owner appoints the other as his or her agent to deposit funds, withdraw and transfer funds, instruct us to stop payment on any item drawn on the account, add additional joint owners to the account, obtain any and all information about the account and conduct any and all business on the joint account without limit, including but not limited to, pledging, encumbering or closing the account. Any joint owner or owners may appoint an attomey-in-fact for the account, but we reserve the right to require the consent of all joint owners. Acting as an agent, any joint owner can endorse a check, draft or other payment order made out to any other joint owner for deposit into the joint account. You agree that any money in a joint account may be paid to any one or more of the joint owners and that payment may be made on the order or instructions of any of the joint owners, whether or not we have notice that the other owner or owners are deceased at the time of payment. One joint owner is not authorized to remove another joint owner from the title of the account without the other joint owner's written consent, but may, however, withdraw all of the funds from the account or close the account. Each joint owner also authorizes the Bank to exercise its right of offset (set off) and enforces GMAC Bank's security interest in the entire Joint Account, even though only one of the joint owners is the debtor; these rights exist irrespective of who contributed funds to the Joint Account. Similarly, we can enforce overlimit liability in the Joint Account against any joint owner individually. Garnishments against any joint owners are subject to the Bank's right of offset and security interest. The Bank, within its discretion, may not recognize an agent authorized to act on behalf of one of the Depositors without the consent of the other Joint Account holder(s). Any such authorization will be in a form acceptable to or provided by us and will remain in effect until written notice of cancellation is received from any Depositor of the Joint Account and the Bank has had a reasonable opportunity to act upon it. Notice provided by us to any one joint owner shall be deemed notice to all joint owners. We are not bound by any attempt by you to change the Account ownership to anything other than a "joint tenants with right of survivorship," including "tenants by the entirety" or "tenants in common." We will treat all Joint Accounts as "joint tenants with right of survivorship" for all purposes, including, but not limited to writs, levies, setoffs, and determination of ownership upon death. Power of Attorney. We are not required to recognize any power of attorney to act on an account. If we accept a power of attorney, we may continue to recognize the authority of your attorney-in-fact until we receive written notice of revocation or termination and have had a reasonable time to act upon it.

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D.

General Rules Governing Deposit Accounts All the Bank's actions relating to this account, including but not limited to this document, will be governed by the laws and regulations of the State of Delaware and the United States. Any lawsuit regarding your account must be brought in a proper court in the State of Delaware. If any part of this Agreement is determined to be invalid or unenforceable, such determination will not affect the remainder of this agreement. 1. Deposits. You can make deposits to your account in person at our Branch, by mail or by any other method we make available. You are encouraged to use your personalized deposit slips in order to help us credit deposits to your account as soon as possible and to minimize errors. If you do not use your personalized deposit slips, you agree that we will not be liable to you for any errors resulting from your use of a counter deposit slip, whether completed by you or one of our employees. We are not responsible for deposits made by mail until we actually record the receipt of those deposits in our books and records. We have the right, but are not obliged, to endorse any non-cash items submitted for deposit into your account and deposit them into your account and the right to not accept items that contain multiple, missing or improper endorsements. We also have the right to limit, refuse, hold or return any deposit. You agree to reimburse use for any loss or expense (including, 2

without limitation, reasonable attorneys' fees and cost of litigation) we incur because you fail to endorse an item exactly as drawn, you deposit an item with a missing endorsement, or resulting from or arising out of any return of any deposited item for any reason whatsoever. If we receive an item on a weekend or holiday the item is deemed to have been received on our next business day. We will make any necessary adjustments to your account for any discrepancies with which we agree and notify you. We reserve the right to make adjustments to your Account, in our sole discretion, for computation or other errors to your Account. 2. Authorized Signatures. The authorized signatures for an account are those reflected on the signature card, any resolution, or other separate written authorization relating to the account received by us. For the payment of funds and for other purposes relating to any account you have with us, we are authorized to recognize those signatures, but we will not be liable to you for refusing to honor a check or other signed instructions if we believe, in good faith, that the signature appearing on such checks or instructions is not genuine. If the signature card is not returned, you agree that we will not be liable to you for honoring checks or other signed instructions if we believe in good faith that the signature appearing on such checks or instructions is authorized. When your account is established, you may indicate your desire for more than one authorized signature on a check or other item drawn against the account by designating a specific number of desired signatures on the signature card, a resolution or in separate written authorization that is received by us. However, we do not offer accounts that require two or more signatures. Any such designation is solely for your convenience and internal control purposes and not binding on us. As a result, you agree that we may pay checks against your account without regard to the number of desired signatures. You may also give another person authority over your account by your conduct or failure to act and although we may recognize such authorization, we may refuse to do so without liability to you. For example, if you voluntarily give information about your account (such as our routing and transit numbers and/or your account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to that party, any item presented against your account by the party to whom you gave the information is deemed to have been authorized by you. Moreover, you guarantee and warrant any unsigned draft that you deposit into your account is authorized. Facsimile Signatures. We are not liable for and reserve the right to reject any item drawn against any personal account that bears or appears to bear a signature or endorsement made by use of a facsimile signature stamp, machine or any method other than an original handwritten signature or endorsement, whether or not genuine. If you use, place or make a facsimile signature or endorsement on any item, you bear the risk of any unauthorized use of your facsimile method or the use of fake facsimiles and you agree that we may pay and charge your account for such item, regardless of by whom or by what means the actual or purported facsimile signature or endorsement may have been affixed (whether or not authorized) and regardless of by whom or by what means the item was created (whether or not authorized). Placement of Endorsements. If you issue a check that contains a carbon band, printing, endorsements or other material on the back of the check outside the area extending 1 inches from the trailing edge of the check, that material could also interfere with endorsements by banks and cause delays in returning the check. Similarly, if you or a prior endorser signs, stamps or affixes an endorsement to a check for deposit that is outside of the area extending 1 inches from the trailing edge of a check, that material could also interfere with endorsements by banks and cause delays in returning the check. Therefore, you agree that (1) we shall not be liable to you for and (2) you will indemnify and hold us harmless from any and all claims, loss costs and expenses (including without limitation reasonable attorneys' fees and the costs of litigation) that we or you may incur as a result of the late return of a check caused by carbon band, printing, endorsements or other material on the back of any check drawn on or deposited to your account that extend outside the area extending 1 inches from the trailing edge of the check. The trailing edge is defined as the left side of the check when viewing it from the front. Collection of Items. When receiving items for deposit or collections, we act as your collection agent and assume no responsibility beyond the exercise of ordinary care. Special instructions for handling an item are effective only if made in writing and given to us along with the item in question. We will not be liable for default or negligence of our correspondent banks or loss in transit and each correspondent bank will only be liable for its own negligence. You are responsible for reconstruction and proof of loss of any items, including checks and other negotiable instruments, included in deposits which are lost or stolen in transit before we have received and accepted the deposit. Further, you agree to fully cooperate and assist in the reconstruction and proof of loss of any items, including checks and other negotiable instruments, included in deposits that are lost or stolen in transit after we have received and accepted the deposit. Items and their proceeds may be handled in accordance with applicable Federal Reserve regulations and operating circulars, Clearinghouse Association or Funds Transfer Systems rules and contractual arrangements with other financial institutions. All deposited items (including those drawn on another account at the Bank) are credited subject to final payment and our receipt of proceeds. Without prior notice to you, we may charge back any item drawn on us if the item cannot be honored against the drawer's account. If you have insufficient funds in your account to cover a returned item, we may overdraw your account in accordance with this Agreement. We are authorized to pursue collection of previously dishonored items, and in so doing, we may permit the payer bank to hold an item beyond the midnight deadline. At our discretion, you authorize us to convert any checks that you deposit into your 3

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account and that are returned for uncollected or insufficient funds to an electronic transaction. If any check or other item deposited in your account is returned to us by the bank on which it was drawn through the Federal Reserve, a clearinghouse or other normal check return channels, we may accept that return and charge the check or other item back against your account without regard to whether the bank on which the check was drawn returned the check before its midnight deadline. Furthermore, if, after a check or other item deposited into your account is finally paid, it is returned to us by the bank on which it is drawn because someone has made a claim that the check or other item was altered, forged, unauthorized or should not have been paid for some other reason, we may debit your account for the amount of the item. If you have insufficient funds in your account to cover a returned item, we may overdraw your account in accordance with this Agreement in an amount equal to such check or other item. You agree to reimburse us for any cost or expenses we incur in connection with any such claim (including, without limitation, attorneys' reasonable fees and court costs) and agree that we may impose service fees against your account for processing any such claim as reflected in our Schedule of Fees and Funds Availability for Personal Accounts from time to time. 6. Automated Processing of Items. Checks you write may be automatically processed and/or converted into electronic images (truncated) during the check collection and return process. If you elect to have your bank documents printed by a vendor that has not been approved by the bank or you use check stock or features (i.e., security features) that cause critical data to disappear or be obscured upon truncation or you make your check out in such a way (i.e., using a lightly colored ink) that causes critical data to disappear upon truncation, you will be doing so at your own risk. We shall not be liable for processing errors or delays, losses or our failure to process any such item due to printing inaccuracies or faulty magnetic ink encoding of critical data, or the failure of critical data printed or written on the item to survive truncation. We have adopted automated collection and payment procedures so that we can process the greatest volume of items at the lowest possible cost to all customers. These automated procedures involve high-speed automated check processing machines that read information encoded onto each item in magnetic ink. In recognition of this fact, you agree that in paying or taking an item for collection, we may disregard all information on the item other than any information encoded onto the item in magnetic ink according to general banking standards, whether or not that information is consistent with other information on the item. For example, we may rely on the amount of an item as encoded in magnetic ink, even if that encoded amount differs from the face amount of the item or exceeds the maximum amount for which the item is valid as stated in a legend on the item (even if we are aware of it). You agree to reimburse us for any loss or expense (including, without limitation, attorneys' reasonable fees and the cost of litigation) we incur because you issue or deposit an item containing extra information such as, but not limited to, maximum amount limitations, date limitations, two signature requirements, etc or containing features or ink that cannot be properly imaged. You also agree that we have exercised ordinary care in paying an item even though our procedures do not provide for the sight examination of items with a face amount below an amount we specify from time to time. Fraud Detection/Deterrence and Safeguarding Your Account. There are several precautions that you can and should take to decrease the risk of unauthorized transactions from your account(s). Such precautions include, but are not limited to: Safeguarding and not disclosing to third parties information about your account, such as your account number(s); Safeguarding materials and information that can be used to access your account including, but not limited to, your check book, blank or unused checks, electronic access devices including ATM cards, personal identification numbers and any passwords or other access-related information, to prevent them from being misused by an unauthorized party; Calling us immediately at 866-26M-BANK if you suspect any problem with your account or unauthorized activity, or your checkbook or unused checks are lost, stolen or misplaced; Reviewing carefully your checkbook and unused checks for unauthorized activity if you suspect that any of these items may have been stolen or tampered with or if you are the victim of theft or your property is burglarized; Promptly and carefully reviewing your statement each month for unauthorized activity or missing deposits; Closing your account immediately upon discovery of any known or suspected unauthorized activity. When you report missing, stolen, or unauthorized checks, we may recommend that any account(s) that has been compromised by unauthorized or fraudulent activity be closed. If you decline this recommendation and elect to leave your account open, we shall not be liable to you for subsequent losses on the account due to unauthorized activity and we may require you to indemnify us for any losses we incur as well; Limiting your telephone transactions with us to landline telephones. Cordless or cellular phone conversations can be intercepted without your knowledge or authorization;

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Issuing any checks with care to avoid alterations or forgeries. Precautions include without limitation using a dark colored permanent ink to write out your checks, making sure the numeric and written amounts match and are readable, and making sure there are no blank or open spaces in the body of the instrument where words or figures are to be inserted.

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Statements. Your statement will be mailed monthly. We will mail your statements to the address we have for you in our records. If you elect to have statements mailed to a third-party address, you are still responsible for careful and prompt examination of the statement and the timely reporting of any problems or unauthorized transactions as outlined below. You agree to notify us if you change your address and/or any contact telephone information. You also agree that if the U.S. Postal Service or one of its agents notifies us of a change in address for you, we may change your address based on this information. We will have no liability to you for changing your address based on such information, even if the information provided by the U.S. Postal Service or one of its agents is in error. If any statement is returned to us because of an incorrect address, we may stop sending statements to you until a valid address is provided to us, but for all purposes it shall be considered as if we made your statement of account available to you as of the statement date that was or would have been printed on your statement. You will be responsible for the same care in reviewing these statements as if they were mailed. We will destroy statements being held after 90 days. Your statement is deemed to be received by you five (5) calendar days after its date. You are responsible for notifying us promptly if you do not receive your statement(s). Review of Account Statements. You are in the best position to discover a forged, unauthorized or missing signature or endorsement, a material alteration, a missing or diverted deposit or any other error or discrepancy relating to a check, deposit or other credit or debit entry to your account. Therefore, you should promptly and carefully examine your statements and canceled checks when you, or a party designated by you, receive them. If you think that an unauthorized person has withdrawn funds from your account, that one or more deposits is not reflected on your statements, or that there is any other type of error or discrepancy in your statements, you should notify us immediately. The statement is considered correct unless you notify us promptly after receipt of the statement, description of the canceled checks, substitute checks or the checks themselves, or after any error is discovered or reasonably could have been discovered, whichever occurs first. If you do not discover and report a forged, unauthorized or missing signature or an alteration promptly after we have sent or otherwise made your statements, you agree not to assert against us (a) any forged, unauthorized or missing signature or alteration, if we suffered a loss because of your failure to discover and report the problem, and (b) any forged, unauthorized or missing signature or alteration by the same wrongdoer on items we paid after you have had a reasonable period of time (not to exceed thirty (30) days) to examine the statement containing or reflecting the first forged, unauthorized or missing signature or alteration but before we received notice of the problem from you. If the previous sentence applies, but you are able to prove that we failed to exercise ordinary care in paying the item in question and that our failure substantially contributed to the loss, then the loss will be allocated between us based on the extent to which our respective failures to exercise ordinary care contributed to the loss. In that regard, and as disclosed elsewhere in this Agreement, we process checks and other items by automated means and do not visually examine all checks or other items. You agree that we do not fail to exercise ordinary care because we use these automated procedures. You also agree that we do not fail to exercise ordinary care if the items were forged or altered so cleverly (as by unauthorized use of a facsimile machine, photocopy machine, computer equipment or otherwise) that a reasonable person would not detect the forgery or alteration. If you have not discovered and reported a forged, unauthorized or missing signature or endorsement, a material alteration, a missing or diverted deposit or any other error or discrepancy relating to a check, substitute check , deposit or other credit or debit entry to your account within thirty (30) days of the date on which the first statement containing or reflecting (or that should have contained or reflected) those items was mailed to you or otherwise made available to you, you agree not to assert that problem against us. This thirty (30) day limitation takes priority over the provisions in the previous paragraph and applies regardless of whether or not you or we exercised ordinary care with respect to the item in question (or its payment), the examination of the statement on which it was reflected (or should have been reflected) or otherwise. IF YOU FAIL TO DISCOVER AND REPORT THESE OR ANY OTHER ERRORS OR DISCREPANCIES WITHIN THE THIRTY (30) DAY PERIOD, YOU LOSE ANY AND ALL RIGHTS YOU MAY HAVE TO ASSERT THE ERROR OR DISCREPANCY AGAINST US.

9.

10. Check Safekeeping and Check Image. The Bank will convert all checks, substitute checks and other paper items presented on the account to electronic media. Original items will be maintained at the Bank for a limited period of time. Copies of the originals will be retained for as long as legally required. We will provide copies of original checks or substitute checks upon a written request and may charge a fee for this service. 11. Check Copies. We will provide copies of original checks or substitute checks required by the Internal Revenue Service or any state or local taxing authority without additional charge to you. If we cannot provide a copy of the check or substitute check as agreed, and as a result you sustain a monetary loss, we may reimburse you for any direct loss up to the amount of the check. We shall not be liable to you for any special or consequential damages of any kind. You agree to provide any 5

information we may require concerning the missing check prior to payment of your claim, and if you fail to substantiate your claim, we may decline to pay it. 12. Payment of Checks and Other Withdrawals. Checks and other items are sometimes lost or truncated (i.e., converted into electronic images) during the collection process. Items that have been truncated may also be reconverted into substitute checks or other replacement documents. Under federal law, the Bank is required to accept substitute checks with warranties as the legal equivalent of the original and the Bank will pay and charge against your account such substitute checks. Moreover, you agree that the Bank may at its discretion pay and charge against your account photocopies, image replacement documents, electronic check or other paper or electronic replacements of the original item that do not constitute substitute checks, if they are legitimate replacements for properly drawn and authorized items. You agree to allow any imaged document or copy to serve as the original for all purposes, including charging your account or determining validity of signature, etc. We reserve the right to refuse to pay or impose a special fee for any check or other item drawn against your account or used to withdraw funds from your account if the transaction is made in a manner not specifically authorized for your account, if made more frequently or in a greater number than specifically permitted for your account, or if made in an amount less than the minimum withdrawal or transfer specifically permitted for your account. If you buy checks from a thirdparty vendor and not through us or if you print your own checks, you must be sure that you do not issue more than one check with the same serial number. If you issue such duplicate checks, we are not responsible for any loss, cost or expense that you incur as a result. We reserve the right to limit the amount of funds that may be withdrawn from your account in cash for various reasons including, without limitation, the amount of currency that is available at our financial center. This limitation is in addition to those set forth in other sections of this Agreement. Withdrawals are generally made first from finally collected funds and, unless prohibited by law or by our written funds availability policy, we reserve the right to refuse to pay any check or other item drawn against uncollected funds, impose a special fee for each such item, or both. We may pay checks or other items drawn upon your account (including those payable to us or on which we may be liable) in any order determined by us, even if paying a particular check or item results in an insufficient balance in your account to pay one or more other items that otherwise could have been paid out of your account. Without prior notice to you, we may change the order in which we generally pay items. From time to time, a person who is not our customer may attempt to cash a check that you have written on your account with us. Cashing an item for a non-customer exposes us to certain risks that are not present if the item is deposited at another financial institution and presented to us through the check collection system. These requirements may include, without limitation, submitting one or more forms of identification. You agree that we will not be liable for wrongful dishonor for refusing to cash the item if payee refuses or fails to pay the fee or comply with such reasonable security measures. 13. Insufficient Funds/Overlimits. We may determine whether or not your HELOC account contains sufficient funds to pay a check or other item at any time between the time we receive the check or other item and our return deadline, and only one determination of the account balance is required. If that determination reveals insufficient available funds to pay the check or other item, you agree to pay a service charge, and we are not required to honor the check or other item and may return it. Alternatively, we may honor the check or other item, create an overlimit and impose a service charge for paying the overlimit. You are responsible for the full amount of any overlimit and the related service charges. We can enforce overlimit liability in the joint account against any joint owner individually (and each joint account owner agrees to be liable for all overlimit liability in the joint account), even if the joint owner did not sign the item creating the overlimit or receive any benefits from its proceeds. You agree to deposit sufficient funds to cover the overlimit and the related service charge immediately upon notice of the overlimit and to reimburse us for any costs we incur in collecting the overlimit from you, including, without limitation, reasonable attorneys' fees and the costs of litigation to the extent permitted by law. However, the honoring of one or more overlimits does not obligate us to honor any future overlimits, and you should not rely on us to honor an overlimit even if we have done so in the past. Moreover, we are not required to send you prior notice on checks returned for insufficient funds. 14. Stale, Time-Dated and Post-Dated Items. We maintain the option either to pay or to dishonor any stale check (i.e., a check that is more than six months old) upon presentation to us. Our check processing equipment is unable to detect time-dated checks (i.e., checks stating that they are not valid after a certain date or beyond a certain period of time). As a result, you agree that we will not be liable to you for charging your account after the date or period stated on an otherwise properly payable time-dated check (even if we are aware of it) and you further agree that we are not bound by any time limitation or restriction you may place on any item presented for payment against your account. Similarly, our check processing equipment cannot detect a post-dated check (i.e., a check bearing a date later than the actual date it is written). Therefore, it is not recommended that you issue post-dated checks as a means of withdrawal. 6

To stop us from paying stale, time-dated or post-dated items, you must ask us to stop payment on such items in accordance with the Stop Payment provision below. 15. Stop Payments. You may ask us to stop payment on checks or ACHs drawn on your account that we have not paid. You must tell us the exact amount of the check or ACH, check number, date of check or ACH payee and the full account number on which it is drawn for us to be able to enter a stop payment. If the information you give us is not correct or if you do not give us other reasonable information requested about the check or ACH, we will not be responsible if we are not able to affect the stop payment. We also cannot be responsible if we are not able to identify the proper check because you have issued more than one check with the same serial number. If you generate your checks by computer or in any other manner that does not produce a MICR-encoded check number on the check, we will be unable to guarantee that your stop payment will be honored. You therefore agree to hold us harmless should we be unable to honor a stop payment order that you have timely and correctly placed on your check with no MICR-encoded check number. We are entitled to a reasonable period of time within which to notify our employees after you give us a stop payment orde