Business Real Estate Secured Lending Documents User Guide

Consumer Deposit Consumer Lending Real Estate Lending Business Services Business Real Estate Secured Lending Documents User Guide P.O. Box 391 5910 Mineral Point Road Madison, WI 53701-0391 Email: loanliner@cunamutual.com MBUG48 CUNA Mutual Group 2013 All Rights Reserved

Disclaimer This guide is distributed to provide general information about the subject matter covered. It should not be substituted for professional advice in specific situations. CUNA Mutual Group does not represent or warrant the fitness or suitability of any LOANLINER Business Lending document for any specific purpose. Competent business lending personnel with experience in making the type of business loans that will be documented with these forms should thoroughly review each loan document and determine its suitability for use for a specific loan transaction. In addition, all documents should be thoroughly reviewed to identify any inconsistencies with your credit union s policies and procedures. CUNA Mutual Group cannot provide legal advice. If you have questions related to specific loan transactions, please consult your attorney.

Contents Introduction 1 Chapter 1: FNMA Application (1003) 3 Chapter 2: Business Real Estate Fixed Rate Note 16 Chapter 3: Business Real Estate Adjustable Rate Note 23 Chapter 4: Business Real Estate Balloon Note 32 Chapter 5: Business Real Estate Balloon Note Addendum 41 Chapter 6: Business Real Estate Mortgage / Deed of Trust 46 Chapter 7: Business Real Estate 1-4 Family Rider 61 Chapter 8: Business Real Estate Adjustable Rate Rider 68 Chapter 9: Business Real Estate Condo Rider 75 Chapter 10: Business Real Estate PUD Rider 80 Chapter 11: FEMA Standard Flood Zone Determination 85 Chapter 12: Flood Insurance Notice 88 Intro3 Business Real Estate Secured Lending Documents User Guide

Introduction Welcome to the Business Real Estate Secured Lending User Guide. To enable you to take care of most of your business lending needs, LOANLINER systems has developed two lending packages, one for non-real estate secured loans, and one for real estate secured loans. Both packages will share the Business Adverse Action Notice, the Business Guaranty Agreement, and the Authorization Designation documents. Instruction for the shared documents will be provided in the Miscellaneous Business Lending User Guide. This User Guide will help you process the following documents for business real estate secured loans: FNMA Application (1003) Business Real Estate Fixed Rate Note Business Real Estate Adjustable Rate Note Business Real Estate Balloon Note Business Real Estate Balloon Addendum Business Real Estate Mortgage / Deed of Trust Business Real Estate 1-4 Family Rider Business Real Estate Adjustable Rate Rider Business Real Estate Condominium Rider Business Real Estate Planned Unit Development (PUD) Rider FEMA Standard Flood Zone Determination Flood Insurance Notice Now you can create a cost-effective loan processing system that s tailored to meet the needs of your credit union. LOANLINER s Business Lending documents were designed to reduce the paperwork for you and your borrowers. LOANLINER s Business Lending documents have been designed for compatibility with most data processors hardware and software. All documents are written in clear, straightforward language, and are easy to use and understand. With the LOANLINER program you can rest assured that every document when completed in accordance with the instructions provided in this guide is compliant with federal and state regulations and standards. Service and Support The LOANLINER program has been part of credit unions lending success for two decades and is currently being used by nearly 7,000 credit unions. Our work with these credit unions has helped us develop a high degree of lending and deposit expertise. You will have direct access to this expertise via any of the channels described below. Lending Resource Center. The Lending Resource Center offers a comprehensive and timely way to stay on top of key lending and compliance issues and a variety of resources to improve your lending performance, available at your fingertips 24 / 7. Key resources include: compliance alerts with action steps; training and 1 Business Real Estate Secured Lending Documents User Guide

operational needs; credit union best practices; lender tutorial; product news and updates; featured questions and answers; and optional email notification of newly published alerts and articles. The Lending Resource Center is available only to credit unions using LOANLINER Lending or Deposit documents; or credit unions that offer one or more of the following CUNA Mutual Group products: credit disability insurance, credit life insurance, debt cancellation, guaranteed asset protection, or mechanical repair coverage. To request access, go to www.cunamutual.com\lendingresourcecenter. LOANLINER Business Documents User Guides. We strongly recommend that all credit unions review each LOANLINER Business Documents User Guide for important document usage information and statespecific language that is recommended for certain loan documents. These User Guides can be found in the LOANLINER Lending Resource Center: User Guide for Small Business Lending Documents User Guide for Business Real Estate Secured Lending Documents User Guide for Miscellaneous Business Lending Documents User Guide for Business Deposit Documents LOANLINER Customer Service. Providing you with assistance in selecting and ordering documents, checking the status of your order, or billing questions. Call 800.356.5012 or e-mail loanliner@cunamutual.com. Compliance Alerts. Stay informed about compliance and regulation changes. For recent compliance updates, go to www.loanliner.com and click on Lending Resource Center. LOANLINER Compliance Support. Providing you with assistance in selecting documents as well as answers to your compliance and document usage questions. Call 800.356.5012 or e-mail loanliner@cunamutual.com. Your CUNA Mutual Group Representative. Call your CUNA Mutual Group account representative at 800.356.2644 for more information. Using this Guide This User Guide provides the basics on how to use the LOANLINER Business Real Estate Secured Lending documents. You can download a current User Guide from the LOANLINER Lending Resource Center. This User Guide is intended to be used as: A learning tool to learn the LOANLINER Business Lending program. A reference tool once you begin using the documents on a regular basis. A set of instructions for modifying certain documents with state-specific notice requirements. If you need detailed assistance, you can rely on your local CUNA Mutual Group representative or the LOANLINER staff for expert help on using any of the Business Lending documents. The User Guide was designed to make it easy for you to reference each document. Each chapter provides the following information: Document description Document sample Document instructions 2 Business Real Estate Secured Lending Documents User Guide

Chapter 1 FNMA Application (1003) The Federal National Mortgage Association (FNMA) Application is used to collect information on the loan applicant(s) in order to evaluate their creditworthiness. It collects pertinent information relative to the applicant s present financial condition, credit history, ability to repay the loan, information on the dwelling being used as security and personal information on the applicant(s). The information contained on the application and used with other underwriting tools at the Credit Union will evaluate the creditworthiness of borrowers as well as assess their ability to repay the loan. This application can be used with non-conforming loan packages like our business loan package. For purposes of business lending, this document will be nonconforming. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The FNMA Application 1003 can be used at the time a borrower wants to apply for a business real estate loan. This is the application approved and developed by the FNMA or Fannie Mae. There are a few areas on the application that do not fully apply to credit unions or business real estate loans; however, CUNA Mutual Group cannot make any changes to this application. The application gathers all of the borrower information necessary to evaluate the value of the property, as well as the creditworthiness and capacity of the borrower to repay the loan. EST63* This application should be given to the applicant(s) when applying for a business real estate loan. The Credit Union should keep a signed copy of the application. No imprinting available Six None *Indicates spaceholder for version number 3 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. UNIFORM RESIDENTIAL LOAN APPLICATION This application is designed to be completed by the applicant(s) with the Lender's assistance. Applicants should complete this form as "Borrower" or "Co-Borrower", as applicable. Co-Borrower information must also be provided (and the appropriate box checked) when the income or assets of a person other than the Borrower (including the Borrower's spouse) will be used as a basis for loan qualification or the income or assets of the Borrower's spouse or other person who has community property rights pursuant to state law will not be used as a basis for loan qualification, but his or her liabilities must be considered because the spouse or other person has community property rights pursuant to applicable law and Borrower resides in a community property state, the security property is located in a community property state, or the Borrower is relying on other property located in a community property state as a basis for repayment of the loan. Pursuant to California Civil Code 1812.30(j), a married applicant may apply for a separate account. If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit (sign below): 1 2 Borrower Co-Borrower I. TYPE OF MORTGAGE AND TERMS OF LOAN Mortgage VA Conventional Other: Applied for: FHA USDA/Rural Housing Service Amount Interest Rate No. of Months Amortization Type: % Subject Property Address (Street, City, State & Zip) Legal Description of Subject Property (attach description if necessary) Fixed Rate GPM Agency Case Number Other (explain): ARM (type): II. PROPERTY INFORMATION AND PURPOSE OF LOAN Lender Case Number No. of Units Year Built Purpose of Loan: Purchase Refinance Construction Construction-Permanent Other (explain): Complete this line if construction or construction-permanent loan. Property will be: Primary Residence Secondary Residence Year Lot Original Cost Amount Existing Liens (a) Present Value of Lot (b) Cost of Improvements Total (a+b) Acquired Investment Complete this line if this is a refinance loan. Year Original Cost Amount Existing Liens Purpose of Refinance Describe Improvements made to be made Acquired Cost: Title will be held in what Name(s) Manner in which Title will be held Estate will be held in: Fee Simple Leasehold (show Source of Down Payment, Settlement Charges and/or Subordinate Financing (explain) expiration date) 3 Borrower III. BORROWER INFORMATION Co-Borrower Borrower's Name (include Jr. or Sr. if applicable) Co-Borrower's Name (include Jr. or Sr. if applicable) Social Security Number Home Phone Date of Birth Yrs. School Social Security Number Home Phone (incl. area code) (mm/dd/yyyy) (incl. area code) Date of Birth (mm/dd/yyyy) Yrs. School Married Separated Unmarried (Include Single, Divorced, Widowed) Dependents (not listed by Co-Borrower) no. ages Present Address (Street, City, State, Zip) Own Rent Married Separated Unmarried (Include Single, Divorced, Widowed) Dependents (not listed by Borrower) no. ages Present Address (Street, City, State, Zip) Own Rent Mailing Address, if different from Present Address No. Yrs. Mailing Address, if different from Present Address No. Yrs. If residing at present address for less than two years, complete the following: Former Address (Street, City, State, Zip) Own Rent Former Address (Street, City, State, Zip) Own Rent No. Yrs. No. Yrs. Freddie Mac Form 65 07/05 (rev. 6/09) Page 1 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 4 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Although the FNMA Application can be used for a variety of lending situations, the instructions below are specifically for business real estate lending. 1. Type of mortgage and terms of loan. This section provides a place to identify the type of mortgage and terms of the loan. Check the mortgage type as Conventional or Other, as applicable. For Agency and Lender Case Numbers enter N/A. Enter the terms of the loan including dollar amount, interest rate, and number of months. Check the type of amortization as fixed rate. 2. Property information and purpose of loan. This section provides a place to record information about the property and purpose of the loan. Record the address of the property, the number of units, a legal description of the property, and the year the property was built. Check the purpose of the loan as purchase or refinance as applicable. Check how the property will be used as secondary residence or investment, as applicable. For Complete this line if construction or construction-permanent loan enter N/A. If this is a refinance loan, then enter year acquired, original cost, amount of existing liens, and purpose of refinance, and describe improvements (check either made or to be made and enter cost), as applicable. 3. Borrower information. This section provides a place to record information for each borrower. Enter the name of the business or individual. Enter the borrower s social security number, home phone including area code, date of birth (mm/dd/yyyy), and years of school. Check marital status if the borrower is an individual. Enter the number and ages of any dependent not listed by co-borrower. Enter the present address (street, city, state, and zip), check if own or rent and enter number of years residing at this address. Enter the mailing address if different from present address. If residing at present address for less than two years, enter former address (street, city, state, and zip), check if own or rent and enter number of years residing at this address. 5 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 4 Name & Address of Employer Borrower IV. EMPLOYMENT INFORMATION Co-Borrower Name & Address of Employer Self-Employed Yrs. on this Job Yrs. employed in this line of work/profession Self-Employed Yrs. on this Job Yrs. employed in this line of work/profession Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) If employed in current position for less than two years or if currently employed in more than one position, complete the following: Name & Address of Employer Name & Address of Employer Self-Employed Dates (from - to) Monthly Income Self-Employed Dates (from - to) Monthly Income Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) Name & Address of Employer Name & Address of Employer Self-Employed Dates (from - to) Monthly Income Self-Employed Dates (from - to) Monthly Income Position/Title/Type of Business Business Phone (incl. area code) Position/Title/Type of Business Business Phone (incl. area code) 5 Other (before completing, see the notice in "describe other income," below) V. MONTHLY INCOME AND COMBINED HOUSING EXPENSE INFORMATION Gross Monthly Income Borrower Co-Borrower Total Base Empl. Income* Overtime Bonuses Commissions Dividends/Interest Net Rental Income Total Rent First Mortgage (P&I) Other Financing (P&I) Hazard Insurance Real Estate Taxes Mortgage Insurance Other: Total Combined Monthly Housing Expense Homeowner Assn. Dues Present *Self-Employed Borrower(s) may be required to provide additional documentation such as tax returns and financial statements. Describe Other Income Notice: Alimony, child support, or separate maintenance income need not be revealed if the Borrower (B) or Co-Borrower (C) does not choose to have it considered for repaying this loan. Proposed B/C Monthly Amount Freddie Mac Form 65 07/05 (rev. 6/09) Page 2 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 6 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Employment information. This section provides a place to record information about each employer for each borrower. Enter the name and address of employer. Check if self-employed. Enter the number of years on this job and the number of years employed in this line of work / profession. Enter the position title or type of business. Enter the business phone number including area code. If employed in current position for less than two years or if currently employed in more than one position, enter the applicable employment information. 5. Monthly income and combined housing expense information. This section provides a place to record information about income and current housing expense. Enter the gross monthly income for each borrower and the total for the following income sources from base employee income, overtime, bonuses, commissions, dividends / interest, net rental income and other sources. Enter the combined monthly housing expense for both the present situation and the proposed situation and the total for rent, first mortgage, other financing, hazard insurance, real estate taxes, mortgage insurance, homeowner association dues, and other. If other was included for monthly income, enter B for borrower, or C for co-borrower, and describe the income and enter the monthly amount. 7 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. 6 VI. ASSETS AND LIABILITIES This Statement and any applicable supporting schedules may be completed jointly by both married and unmarried Co-Borrowers if their assets and liabilities are sufficiently joined so that the Statement can be meaningfully and fairly presented on a combined basis; otherwise, separate Statements and Schedules are required. If the Co-Borrower section was completed about a non-applicant spouse or other person, this Statement and supporting schedules must be completed about that spouse or other person, also. Completed Jointly Not Jointly Description ASSETS Cash deposit toward purchase held by: List checking and savings accounts below Name and address of Bank, S&L, or Credit Union Cash or Market Value Liabilities and Pledged Assets. List the creditor's name, address and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges, etc. Use continuation sheet, if necessary. Indicate by (*) those liabilities which will be satisfied upon sale of real estate owned or upon refinancing of the subject property. LIABILITIES Name and address of Company Monthly Payment & Months Left to Pay Payment/Months / Unpaid Balance Acct. No. Name and address of Bank, S&L, or Credit Union Acct. No. Name and address of Company Payment/Months / Acct. No. Name and address of Bank, S&L, or Credit Union Acct. No. Name and address of Company Payment/Months / Acct. No. Name and address of Bank, S&L, or Credit Union Acct. No. Name and address of Company Payment/Months / Acct. No. Stock & Bonds (Company name/number & description) Acct. No. Name and address of Company Payment/Months / Life insurance net cash value Face amount: Subtotal Liquid Assets Acct. No. Name and address of Company Payment/Months / Real estate owned (enter market value from schedule of real estate owned) Vested interest in retirement fund Acct. No. Name and address of Company Payment/Months / Net worth of business(es) owned (attach financial statement) Automobiles owned (make and year) Other Assets (itemize) Total Assets a. Acct. No. Alimony/Child Support/Separate Maintenance Payments Owed to: Job Related Expense (child care, union dues, etc.) Total Monthly Payments Net Worth (a minus b) Total Liabilities b. Freddie Mac Form 65 07/05 (rev. 6/09) Page 3 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 8 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 6. Assets and liabilities. This section provides a place to record information on the borrower s assets and liabilities. Check if this section will be completed jointly or not jointly (Read the instructions to determine how to make this decision.). For assets record the following information: Enter who is holding the cash deposit toward purchase and the cash or market value. List checking and savings accounts by recording the name and address of the bank, S&L, or credit union, the account number, and the cash or market value for each account. List any stock & bonds by recording the company name / number and description; and the cash or market value. List any life insurance net cash value by recording the face amount in dollars. Enter subtotal of liquid assets. Enter any cash or market value for real estate, vested interest in retirement fund, net worth of any business owned, automobiles owned (record make and year), and any other assets (itemize). Enter total of assets. For liabilities, list the creditor s name, address and account number for all outstanding debts, including automobile loans, revolving charge accounts, real estate loans, alimony, child support, stock pledges. For each liability enter the name and address of company, the account number, the monthly payment, the number of months left to pay and the unpaid balance. For either alimony or child support, enter the name of the person owed and the monthly payment. For any job related expense enter the monthly payment. Enter total monthly payments. Enter total liabilities. Enter net worth (total assets total liabilities). 9 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page four sample Use the numbers provided to locate the corresponding instructions on the next page. VI. ASSETS AND LIABILITIES (cont.) Schedule of Real Estate Owned (if additional properties are owned, use continuation sheet.) Property Address (enter S if sold, PS if pending sale or R if rental being held for income) Type of Property Present Market Value Amount of Mortgages & Liens Gross Rental lncome Mortgage Payments Insurance, Maintenance, Taxes & Misc. Net Rental Income Totals List any additional names under which credit has previously been received and indicate appropriate creditor name(s) and account number(s): Alternate Name Creditor Name Account Number 7 VII. DETAILS OF TRANSACTION a. Purchase price b. Alterations, improvements, repairs c. Land (if acquired separately) d. Refinance (incl. debts to be paid off) e. Estimated prepaid items f. Estimated closing costs g. PMI, MIP, Funding Fee h. Discount (if Borrower will pay) i. Total Costs (add items a through h) j. Subordinate financing k. Borrower's closing costs paid by Seller l. Other Credits (explain) m. Loan amount (exclude PMI, MIP, Funding Fee financed) n. PMI, MIP, Funding Fee financed o. Loan amount (add m & n) p Cash from/to Borrower (subtract j, k, l & o from i) 8 VIII. DECLARATIONS Borrower If you answer "yes" to any questions a through i, please use continuation sheet for explanation. Yes No a. Are there any outstanding judgments against you? b. Have you been declared bankrupt within the past 7 years? c. Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years? d. Are you a party to a lawsuit? e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure, transfer of title in lieu of foreclosure, or judgment? (This would include such loans as home mortgage loans, SBA loans, home improvement loans, educational loans, manufactured (mobile) home loans, any mortgage, financial obligation, bond, or loan guarantee. If "Yes," provide details, including date, name and address of Lender, FHA or VA case number, if any, and reasons for the action.) Co-Borrower Yes No Freddie Mac Form 65 07/05 (rev. 6/09) Page 4 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 10 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page four instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 6. Assets and Liabilities (cont.). This section continues to collect information on the borrower s assets. For each property owned by the borrower, enter the property address, type of property, present market value, amount of mortgages and liens, gross rental income, mortgage payments, insurance maintenance and taxes, and net rental income. List any additional names under which credit has previously been received and indicate the appropriate creditor name(s) and account number(s). 7. Details of transaction. This section provides a place to collect information on the transaction details. Enter the dollar amount for each of the following: Purchase price Alterations, improvements, repairs Land (if acquired separately) Refinance (include debts to be paid off) Estimated prepaid items Estimated closing costs PMI, MIP, funding fee Discount (if borrower will pay) Enter total costs (all the above) Subordinate financing Borrower s closing costs paid by seller Other credits (explain) Loan amount (exclude PMI, MIP, and funding fee financed) PMI, MIP and funding fee financed Loan amount including PMI, MIP and funding fee financed Cash from / to Borrower 8. Declarations. This section provides checkboxes for the borrower to respond with a yes or no to specific questions regarding credit history. If the borrower answers yes to any of the questions, provide a continuation sheet for the explanation. 11 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page five sample Use the numbers provided to locate the corresponding instructions on the next page. VIII. DECLARATIONS (cont.) f. Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee? g. Are you obligated to pay alimony, child support, or separate maintenance? h. Is any part of the down payment borrowed? i. Are _ you a _ co-maker or _ endorser _ on a _ note? j. Are you a U.S. citizen? k. Are you a permanent resident alien? l. Do you intend to occupy the property as your primary residence? If "Yes," complete question m below. m. Have you had an ownership interest in a property in the last three years? (1) What type of property did you own -- principal residence (PR), second home (SH), or investment property (IP)? (2) How did you hold the title to the home -- solely by yourself (S), jointly with your spouse (SP), or jointly with another person (O)? Borrower Yes No Co-Borrower Yes No SPECIAL NOTICE FOR BALLOON MORTGAGES THIS LOAN MUST EITHER BE PAID IN FULL AT MATURITY OR REFINANCED TO A MARKET LEVEL FIXED-RATE MORTGAGE. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE IF YOU DO NOT QUALIFY FOR THE CONDITIONAL RIGHT TO REFINANCE AS SPECIFIED IN THE NOTE ADDENDUM AND MORTGAGE RIDER. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN IF QUALIFICATION CONDITIONS ARE NOT MET. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER. 9 IX. ACKNOWLEDGMENT AND AGREEMENT Each of the undersigned specifically represents to Lender and to Lender's actual or potential agents, brokers, processors, attorneys, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information provided in this application is true and correct as of the date set forth opposite my signature and that any intentional or negligent misrepresentation of this information contained in this application may result in civil liability, including monetary damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I have made on this application, and/or in criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Sec. 1001, et seq.; (2) the loan requested pursuant to this application (the "Loan") will be secured by a mortgage or deed of trust on the property described in this application; (3) the property will not be used for any illegal or prohibited purpose or use; (4) all statements made in this application are made for the purpose of obtaining a residential mortgage loan; (5) the property will be occupied as indicated in this application; (6) the Lender, its servicers, successors or assigns may retain the original and/or an electronic record of this application, whether or not the Loan is approved; (7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may continuously rely on the information contained in the application, and I am obligated to amend and/or supplement the information provided in this application if any of the material facts that I have represented herein should change prior to closing of the Loan; (8) in the event that my payments on the Loan become delinquent, the Lender, its servicers, successors or assigns may, in addition to any other rights and remedies that it may have relating to such delinquency, report my name and account information to one or more consumer reporting agencies; (9) ownership of the Loan and/or administration of the Loan account may be transferred with such notice as may be required by law; (10) neither Lender nor its agents, brokers, insurers, servicers, successors or assigns has made any representation or warranty, express or implied, to me regarding the property or the condition or value of the property; and (11) my transmission of this application as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or my facsimile transmission of this application containing a fascimile of my signature, shall be as effective, enforceable, and valid as if a paper version of this application were delivered containing my original written signature. Acknowledgment. Each of the undersigned hereby acknowledges that any owner of the Loan, its servicers, successors and assigns, may verify or reverify any information contained in this application or obtain any information or data relating to the Loan, for any legitimate business purpose through any source, including a source named in this application or a consumer reporting agency. X Borrower's Signature Date X Co-Borrower's Signature Date Freddie Mac Form 65 07/05 (rev. 6/09) Page 5 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 12 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page five instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 9. Acknowledgement and agreement. This section provides a disclosure for the borrower to consider regarding the information provided in the document before signing. Provide time for borrower to read the disclosure. Each borrower signs and dates the application. 13 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page six sample Use the numbers provided to locate the corresponding instructions on the next page. 10 X. INFORMATION FOR GOVERNMENT MONITORING PURPOSES The following information is requested by the Federal Government for certain types of loans related to a dwelling in order to monitor the lender's compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. You are not required to furnish this information, but are encouraged to do so. The law provides that a lender may not discriminate either on the basis of this information, or on whether you choose to furnish it. If you furnish the information, please provide both ethnicity and race. For race, you may check more than one designation. If you do not furnish ethnicity, race, or sex, under Federal regulations, this lender is required to note the information on the basis of visual observation and surname if you have made this application in person. If you do not wish to furnish the information, please check the box below. (Lender must review the above material to assure that the disclosures satisfy all requirements to which the lender is subject under applicable state law for the particular type of loan applied for.) BORROWER CO-BORROWER I DO NOT WISH TO FURNISH THIS INFORMATION I DO NOT WISH TO FURNISH THIS INFORMATION ETHNICITY: ETHNICITY: Hispanic or Latino Hispanic or Latino Not Hispanic or Latino Not Hispanic or Latino RACE: RACE: American Indian or Alaska Native American Indian or Alaska Native Asian Asian Black or African American Black or African American Native Hawaiian or Other Pacific Islander Native Hawaiian or Other Pacific Islander White White SEX: SEX: Male Male Female Female To be completed by Loan Originator This application was provided: Loan Originator's Signature Date In a face-to-face interview In a telephone interview By the applicant and submitted by fax or mail By the applicant and submitted via e-mail or the Internet Loan Originator's Name Loan Origination Company's Name Loan Originator's Phone Number (including area code) Loan Originator Identifier Loan Origination Company Identifier Loan Origination Company's Address 11 Use this continuation sheet if you need more space to complete the Residential Loan Application. Mark B for Borrower or C for Co-Borrower. CONTINUATION SHEET/RESIDENTIAL LOAN APPLICATION Borrower: Co-Borrower: Agency Case Number: Lender Case Number: 12 I/We 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 1001, et seq. X Borrower's Signature Freddie Mac Form 65 07/05 (rev. 6/09) Date X Co-Borrower's Signature Date Page 6 of 6 EST638-e Fannie Mae Form 1003 07/05 (rev. 6/09) 14 Business Real Estate Secured Lending Documents User Guide

Chapter 1 Page six instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 10. Information for government monitoring purposes. This section collects information in order to monitor the credit union s compliance with equal credit opportunity, fair housing and home mortgage disclosure laws. If the borrower chooses to furnish information, record both ethnicity and race (For race, more than one designation may be checked). If the borrower chooses to not furnish information, the credit union is required to note the information on the basis of visual observation or surname. Check how the interview was conducted (face-to-face, mail, telephone, or internet). Record interviewer s information including name, signature, phone number, and name and address of interviewer s employer. 11. Continuation sheet / residential loan application. This section provides space for the borrower to use if more space is needed to complete the Residential Loan Application. 12. Signatures. This section is provided for the borrower s signature(s) and borrower s acknowledgement that no false statements were made as applicable under Title 18, United States Code, Section 1001, et seq. 15 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Business Real Estate Fixed Rate Note The Business Real Estate Fixed Rate Note is a fixed rate document that describes an agreement between the credit union and the borrower for 1-4 family, non-conforming real estate secured loans. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: It is used to document how the borrower will repay the loan, including terms, payment amounts, dates, and total amount. It is used when a loan will be secured with real estate. It defines the business terms and conditions that will govern the real estatesecured loan. NXB02* The document is signed by the borrower. No imprinting available Three Alaska, Florida, Maine, New Hampshire, New York, Vermont, Virginia, West Virginia, Wisconsin have state-specific versions. *Indicates spaceholder for version number 16 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE NOTE [Date] [City], [State] 1 2 3 4 5 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is. I will make all payments under this Real Estate Note ("Note") in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A)Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the day of each month beginning on. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S.. 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. MULTISTATE FIXED RATE REAL ESTATE NOTE (page 1 of 3 pages) NXB021 (LASER) 17 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Enter note information. Enter the current date, credit union s city and state and address of the property in the applicable blanks at the top of page one. 1. Borrower s promise to pay. This section informs the borrower how much principal they must pay. Enter dollar amount of principal. Enter credit union s name. 2. Interest. This section informs the borrower the rate of interest they will be charged. Enter yearly rate of interest as a percentage. 3. Payments. This section informs the borrower how payments will be made. Enter day of the month (example 12th). Enter date of first payment (example 5/12/04). Enter maturity date (example 5/12/08). Enter address of credit union or note holder s address if different than credit union s address. Enter amount of monthly payment. 4. Borrower s right to prepay. This section informs the borrower about the right to prepay principal without penalty or make a full prepayment. 5. Loan charges. This section informs the borrower that if any loan charge exceeds the legal permitted limit, the borrower would either be credited for the surplus or loan charges would be reduced by the amount necessary to reduce the charge to the permitted limit. 18 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 6 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A)Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 7 8 9 10 I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE FIXED RATE REAL ESTATE NOTE (page 2 of 3 pages) NXB021 (LASER) 19 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 6. Borrower s failure to pay as required. This section informs the borrower about the late charge for overdue payments, default due to nonpayment, notice of default, no waiver by note holder, and payment of note holder s costs and expenses. Enter the number of calendar days after due date. Enter late charge language. 7. Giving of notices. This section informs the borrower how notices about the note will be given to the borrower and the credit union. 8. Obligations of persons under this note. This section clarifies that if more than one person signs this note, each person is fully and personally obligated to keep all of the promises made in this note. 9. Waivers. This section clarifies that any person who has obligations under this note waives the rights of presentment and notice of dishonor. 10. Uniform secured note. This section clarifies to the borrower that this note is a uniform instrument with limited variations in some jurisdictions. 20 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. 11 For Alabama security property: CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. For Indiana security property : YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE SELLER/LENDER. For Maryland security property: This loan transaction is governed by Title 12, Subtitle 10 of the Commercial Law Article of the Annotated Code of Maryland. For Texas security property: THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. For Pennsylvania security property: This is a contract under seal and may be enforced under 42 Pa.C.S. Section 5529(b). 12 13 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Agreed to by or on behalf of above Borrower(s): 14 15 By: X (Seal) Printed Name: Title: Date: 16 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: 17 For Louisiana security property: 'NE VARIETUR' for identification with an Act of Mortgage passed before me this day of,. Notary Public: (Name) MULTISTATE FIXED RATE REAL ESTATE NOTE (page 3 of 3 pages) NXB021 (LASER) 21 Business Real Estate Secured Lending Documents User Guide

Chapter 2 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 11. Read state-specific language. This section provides state-specific language. 12. Record name of borrower. This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 13. Record form of organization. This section provides a place to record the form of the organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation Limited Liability Company (LLC) Association 14. Record signature of borrower. This line provides a place to record the signature of the borrower. The signature of the person printed above or the person representing the business above is required here. 15. Record title / date. This line provides a place to record both the signer s business title and the date the document was signed. Person signing must also fill in date manually. 16. Type or print name. This section provides a place to record the person s printed name. 17. Record Louisiana requirement. If the borrower s domicile is Louisiana, enter notary public information. 22 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Business Real Estate Adjustable Rate Note The Business Real Estate Adjustable Rate Note is an adjustable rate document that describes an agreement between the credit union and the borrower for 1-4 family, non-conforming real estate loans. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: It is used to document how the borrower will repay the loan, including terms, payment amounts, dates, and total amount. It is used when a loan will be secured with real estate. It defines the business terms and conditions that will govern the real estate-secured loan. NB004* The document is signed by the borrower. No imprinting available Four Alaska, Florida, New Hampshire, Vermont, Virginia, West Virginia, Wisconsin have state-specific versions. *Indicates spaceholder for version number 23 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE ADJUSTABLE RATE NOTE THIS NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN MY INTEREST RATE AND MY MONTHLY PAYMENT. THIS NOTE LIMITS THE AMOUNT MY INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE I MUST PAY. [Date] [City], [State] 1 2 3 [Property Address] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. (this amount is called "Principal"), plus interest, to the order of the Lender. The Lender is. I will make all payments under this Real Estate Note ("Note") in the form of cash, check or money order. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of %. The interest rate I will pay will change in accordance with section 4 of this Note. The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default described in Section 7(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payment on the day of each month beginning on. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4 or at a different place if required by the Note Holder. (B) Amount of My Initial Monthly Payments Each of my initial monthly payments will be in the amount of U.S.. This amount may change. (C) Monthly Payment Changes Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that I must pay. The Note Holder will determine my new interest rate and the changed amount of my monthly payment in accordance with Section 4 of this Note. 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of, and on that day every month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. MULTISTATE ADJUSTABLE RATE REAL ESTATE NOTE (page 1 of 4 pages) NB0041 (LASER) 24 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Enter note information. Enter the closing date, closing s city and state and address of the property in the applicable blanks at the top of page one. 1. Borrower s promise to pay. This section informs the borrower how much principal they must pay. Enter dollar amount of principal. Enter credit union s name (lender). 2. Interest. This section informs the borrower the rate of interest they will be charged. Enter yearly rate of interest as a percentage. 3. Payments. This section informs the borrower how payments will be made. Enter day of the month (example 12th). Enter date of first payment (example 5/12/04). Enter maturity date (example 5/12/08). Enter address of credit union or note holder s / servicer s address. Enter amount of monthly payment. 4. Interest rate and monthly payment changes. This section informs the borrower about various items as to change date, calculations and limits to the interest rate. Enter the month and year of interest rate change (example January, 2008). Enter the frequency (in months) for the occurrence of a change date. Enter the index type. 25 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 5 6 7 (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding percentage points ( %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than % or less than %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than percentage points ( %) from the rate of interest I have been paying for the preceding months. My interest rate will never be greater than %, which is called the "Maximum Rate." (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. 5. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under the Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to reduce the Principal amount of the Note. If I make a partial Prepayment, there will be no changes in the due dates of my monthly payment unless the Note Holder agrees in writing to those changes. My partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase. 6. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 7. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. MULTISTATE ADJUSTABLE RATE REAL ESTATE NOTE (page 2 of 4 pages) NB0041 (LASER) 26 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Interest rate and monthly payment changes (cont.). Enter the margin as text (two). Enter the margin as a percentage (2%). Enter the maximum interest rate as a percentage. Enter the minimum interest rate as a percentage. Enter the change cap as text. Enter the change cap as a percentage. Enter the number of months that member has been paying the prior interest rate. Enter maximum rate of interest as a percentage. 5. Borrower s right to prepay. This section informs the borrower about the right to prepay principal without penalty or make a full prepayment. 6. Loan charges. This section informs the borrower that if any loan charge exceeds the legal permitted limit, the borrower would either be credited for the surplus or loan charges would be reduced by the amount necessary to reduce the charge to the permitted limit. 7. Borrower s failure to pay as required. This section informs the borrower about the late charge for overdue payments, default due to nonpayment, notice of default, no waiver by note holder, and payment of note holder s costs and expenses. Enter the number of calendar days after due date. Enter late charge language. 27 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. 8 9 10 11 (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 8. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by delivering it or by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. MULTISTATE ADJUSTABLE RATE REAL ESTATE NOTE (page 3 of 4 pages) NB0041 (LASER) 28 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 8. Giving of notices. This section informs the borrower how notices about the note will be given to the borrower and the credit union. 9. Obligations of persons under this note. This section clarifies that if more than one person signs this note, each person is fully and personally obligated to keep all of the promises made in this note. 10. Waivers. This section clarifies that any person who has obligations under this note waives the rights of presentment and notice of dishonor. 11. Uniform secured note. This section clarifies to the borrower that this note is a uniform instrument with limited variations in some jurisdictions. 29 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page four sample Use the numbers provided to locate the corresponding instructions on the next page. 12 13 14 15 For Alabama security property: CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. For Maryland security property: This loan transaction is governed by Title 12, Subtitle 10 of the Commercial Law Article of the Annotated Code of Maryland. For Texas security property: THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NOTICE: The initial index value for this loan is %. For Pennsylvania security property: This is a contract under seal and may be enforced under 42 Pa.C.S. Section 5529(b). Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Agreed to by or on behalf of above Borrower(s): 16 17 18 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: 19 By: X (Seal) Printed Name: Title: Date: For Louisiana security property: 'NE VARIETUR' for identification with an Act of Mortgage passed before me this day of,. Notary Public: (Name) MULTISTATE ADJUSTABLE RATE REAL ESTATE NOTE (page 4 of 4 pages) NB0041 (LASER) 30 Business Real Estate Secured Lending Documents User Guide

Chapter 3 Page four instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 12. Read state-specific language. This section provides state-specific language. 13. Enter initial index. Enter initial index value for the loan as a percentage. 14. Record name of borrower. This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 15. Record form of organization. This section provides a place to record the form of the organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 16. Record signature of borrower. This line provides a place to record the signature of the borrower. The signature of the person printed above or the person representing the business above is required here. 17. Type or print name. This section provides a place to record the person s printed name. 18. Record title / date. This line provides a place to record both the signer s business title and the date the document was signed. Person signing must also fill in date manually. 19. Record Louisiana requirement. If the borrower s domicile is Louisiana, enter notary public information. 31 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Business Real Estate Balloon Note The Business Real Estate Balloon Note is a fixed rate document that describes an agreement between the credit union and the borrower for 1-4 family, non-conforming real estate secured loans with a balloon payment. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: It is used to document how the borrower will repay the loan, including terms, payment amounts, dates, and total amount. It is used when a loan will be secured with real estate. It defines the business terms and conditions that will govern the real estate-secured loan. NB006* The document is signed by the borrower. No imprinting available Four New York, Virginia, West Virginia, Wisconsin have state-specific versions. *Indicates spaceholder for version number 32 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE BALLOON NOTE THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER. [Date] [City], [State] [Property Address] 1 2 3 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. (this amount is called "Principal"), plus interest, to the order of Lender. Lender is. I will make all payments under this Real Estate Note ("Note") in the form of cash, check or money order. I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of Principal has been paid. I will pay interest at a yearly rate of %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making a payment every month. I will make my monthly payments on the day of each month beginning on. I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its scheduled due date and will be applied to interest before Principal. If, on I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "Maturity Date." I will make my monthly payments at 4 5 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S.. 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of Principal at any time before they are due. A payment of Principal only is known as a "Prepayment." When I make a Prepayment, I will tell the Note Holder in writing that I am doing so. I may not designate a payment as a Prepayment if I have not made all the monthly payments due under this Note. I may make a full Prepayment or partial Prepayments without paying a Prepayment charge. The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under this Note. However, the Note Holder may apply my Prepayment to the accrued and unpaid interest on the Prepayment amount before applying my Prepayment to reduce the Principal amount of this Note. If I make a partial Prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the MULTISTATE BALLOON FIXED RATE REAL ESTATE NOTE (page 1 of 4 pages) NB0061 (LASER) 33 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Enter note information. Enter the closing date, closing s city and state and address of the property in the applicable blanks at the top of page one. 1. Borrower s promise to pay. This section informs the borrower how much principal they must pay. Enter dollar amount of principal. Enter credit union s name (lender). 2. Interest. This section informs the borrower the rate of interest they will be charged. Enter yearly rate of interest as a percentage. 3. Payments. This section informs the borrower how payments will be made. Enter day of the month (example 12th). Enter date of first payment (example 5/12/04). Enter maturity date (example 5/12/08). Enter address of credit union or note holder s / servicer s address. Enter amount of monthly payment. 4. Borrower s right to prepay. This section informs the borrower about the right to prepay principal without penalty or make a full prepayment. 5. Loan charges. This section informs the borrower that if any loan charge exceeds the legal permitted limit, the borrower would either be credited for the surplus or loan charges would be reduced by the amount necessary to reduce the charge to the permitted limit. 34 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 6 7 8 9 10 permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from me that exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the Principal I owe under this Note or by making a direct payment to me. If a refund reduces Principal, the reduction will be treated as a partial Prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charge for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of Principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is mailed to me or delivered by other means. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and Notice of Dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. MULTISTATE BALLOON FIXED RATE REAL ESTATE NOTE (page 2 of 4 pages) NB0061 (LASER) 35 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 6. Borrower s failure to pay as required. This section informs the borrower about the late charge for overdue payments, default due to nonpayment, notice of default, no waiver by note holder, and payment of note holder s costs and expenses. Enter the number of calendar days after due date. Enter late charge language. 7. Giving of notices. This section informs the borrower how notices about the note will be given to the borrower and the credit union. 8. Obligations of persons under this note. This section clarifies that if more than one person signs this note, each person is fully and personally obligated to keep all of the promises made in this note. 9. Waivers. This section clarifies that any person who has obligations under this note waives the rights of presentment and notice of dishonor. 10. Uniform secured note. This section clarifies to the borrower that this note is a uniform instrument with limited variations in some jurisdictions. 36 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. 11 12 13 If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 11. NOTICE OF OTHER REMEDIES For Alaska security property: To the extent set forth in this Note and any Rider attached hereto (a) the mortgagor or trustor ("Borrower") is personally obligated and fully liable for all amounts due under this Note, and (b) the holder hereof has the right to sue on this Note and obtain a personal judgment against the Borrower for satisfaction of all amounts due under this Note either before or after a judicial foreclosure, under Alaska Statutes 09.45.170 through 09.45.220, of the deed of trust which secured this Note. 12. DOCUMENTARY TAX For Florida security property: The state documentary tax due on this Note has been paid on the mortgage securing this indebtedness. 13. ATTORNEYS' FEES For New Hampshire security property: Pursuant to New Hampshire Revised Statutes Annotated 361-C:2, in the event that Borrower shall prevail in (a) any action, suit or proceeding, brought by Lender, or (b) an action brought by Borrower, reasonable attorneys' fees shall be awarded to Borrower. Further, if Borrower shall successfully assert a partial defense or set-off, recoupment or counterclaim to an action brought by Lender, a court may withhold from Lender the entire amount or such portion of its attorneys' fees as the court shall consider equitable. 14 For Vermont security property: NOTICE TO CO-SIGNER YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. For Alabama security property: CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT. For Indiana security property: YOU ARE NOT OBLIGATED TO PAY ANY MONEY UNLESS YOU SIGN THIS CONTRACT AND RETURN IT TO THE SELLER/LENDER. For Maryland security property: This loan transaction is governed by Title 12, Subtitle 10 of the Commercial Law Article of the Annotated Code of Maryland. For Texas security property: THIS WRITTEN LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. MULTISTATE BALLOON FIXED RATE REAL ESTATE NOTE (page 3 of 4 pages) NB0061 (LASER) 37 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 11. Notice of other remedies. For Alaska, this notice informs parties that the borrower is obligated for all amounts under the note and the holder of the note can sue for satisfaction. 12. Documentary tax. For Florida, this section informs parties that the document tax has been paid. 13. Attorneys Fees. For New Hampshire, this notice explains who is responsible for attorney fees if the borrower prevails in a lawsuit. 14. Read state-specific language. This section provides state-specific language. West Virginia. For mortgages secured by properties located in West Virginia you MUST add the following at the end of the instrument if all monthly payments are not of an equal amount: THIS CONTRACT IS NOT PAYABLE IN INSTALLMENTS OF EQUAL AMOUNTS If there is only one installment that is at least twice as large as the smallest of all earlier scheduled payments (other than any downpayment), lenders should then insert: AN INSTALLMENT OF WILL BE DUE ON. If there is more than one installment that is at least twice as large as the smallest downpayment, lenders should instead insert: LARGER INSTALLMENTS WILL BE DUE AS FOLLOWS: (The amount of every such installment and its due date should then be inserted here). 38 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page four sample Use the numbers provided to locate the corresponding instructions on the next page. For Pennsylvania security property: This is a contract under seal and may be enforced under 42 Pa.C.S. Section 5529(b). 15 16 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Agreed to by or on behalf of above Borrower(s): 17 18 19 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: For Louisiana security property: 20 'NE VARIETUR' for identification with an Act of Mortgage passed before me this day of,. Notary Public: (Name) MULTISTATE BALLOON FIXED RATE REAL ESTATE NOTE (page 4 of 4 pages) NB0061 (LASER) 39 Business Real Estate Secured Lending Documents User Guide

Chapter 4 Page four instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 15. Record name of borrower. This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 16. Record form of organization. This section provides a place to record the form of the organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 17. Record signature of borrower. This line provides a place to record the signature of the borrower. The signature of the person printed above or the person representing the business above is required here. 18. Type or print name. This section provides a place to record the person s printed name. 19. Record title / date. This line provides a place to record both the signer s business title and the date the document was signed. Person signing must also fill in date manually. 20. Record Louisiana requirement. If the borrower s domicile is Louisiana, enter notary public information. 40 Business Real Estate Secured Lending Documents User Guide

Chapter 5 Business Real Estate Balloon Note Addendum The Business Real Estate Balloon Note Addendum is a document that amends and supplements the Business Real Estate Balloon Note. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: It is used to document the terms and conditions of a conditional right to refinance. Allows borrower at loan maturity to obtain a new loan, with new maturity date and note rate, if all conditions are met. NB017* The document is signed by the borrower. No imprinting available Two North Carolina *Indicates spaceholder for version number 41 Business Real Estate Secured Lending Documents User Guide

Chapter 5 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE BALLOON NOTE ADDENDUM (CONDITIONAL RIGHT TO REFINANCE) 1 2 3 4 5 THIS REAL ESTATE BALLOON NOTE ADDENDUM is made this day of, and is incorporated into and shall be deemed to amend and supplement the Real Estate Balloon Note ("Note") made by the undersigned ("Borrower") in favor of ("Lender") and dated as of even date herewith (the "Note"). The interest rate stated on the Note is called the "Note Rate." The date of the Note is called the "Note Date." I understand Lender may transfer the Note, the related Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), and this Addendum. Lender or anyone who takes the Note, Security Instrument, and this Addendum by transfer and who is entitled to receive payments under the Note is called the "Note Holder." ADDITIONAL COVENANTS. In addition to the covenants and agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note): 1. CONDITIONAL RIGHT TO REFINANCE At the Maturity Date of the Note and Security Instrument (the "Maturity Date"), I will be able to obtain a new loan ("New Loan") with a new Maturity Date of, and with an interest rate equal to the "New Note Rate" determined in accordance with Section 3 below if all the conditions provided in Section 2 and 5 below are met (the "Conditional Refinancing Option"). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance or modify the Note, or to extend the Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note. 2. CONDITIONS TO OPTION If I want to exercise the Conditional Refinancing Option at maturity, certain conditions must be met as of the Maturity Date. These conditions are: (a) I must still be the owner of the Property subject to the Security Instrument (the "Property"); (b) I must be current in my monthly payments and cannot have been more than days late on any of the 12 scheduled monthly payments immediately preceding the Maturity Date; (c) the New Note Rate cannot be more than percentage points above the Note Rate; and (d) I must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE NEW NOTE RATE The New Note Rate will be a fixed rate of interest equal to (the "New Note Rate"). The required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinancing Option. If this required net yield is not available, the Note Holder will determine the New Note Rate by using comparable information. 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the New Note Rate as calculated in Section 3 above is not greater than percentage points above the Note Rate and all other conditions required in Section 2 above are satisfied, the Note Holder will determine the amount of the monthly payment that will be sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the Note and Security Instrument on the Maturity Date (assuming my monthly payments then are current, as required under Section 2 above), over the term of the New Note at the New Note Rate in equal monthly payments. The result of this calculation will be the amount of my new principal and interest payment every month until the New Note is fully paid. 5. EXERCISING THE CONDITIONAL REFINANCING OPTION The Note Holder will notify me at least calendar days in advance of the Maturity Date and advise me of the principal, accrued but unpaid interest, and all other sums I am expected to owe on the Maturity Date. The Note Holder also will advise me that I may exercise the Conditional Refinancing Option MULTISTATE BALLOON NOTE ADDENDUM (page 1 of 2 pages) NB0171 (LASER) 42 Business Real Estate Secured Lending Documents User Guide

Chapter 5 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Enter note addendum information. Enter the closing date and credit union s name (lender). 1. Conditional right to refinance. This section informs the borrower of the new loan maturity date and other conditions. Enter maturity date of new loan. 2. Conditions to option. This section informs borrower of conditions to be met at maturity. Enter maximum number of days late allowed under the right to refinance. Enter the maximum percent that can be added to the old note rate, to create the new note rate. 3. Calculating the new note rate. This section informs the borrower of the index used to obtain the new note rate. Enter new note rate description. 4. Calculating the new payment amount. This section informs the borrower of how the new note rate will be applied and calculated. Enter the maximum number of percentage points that can be added to the note rate. 5. Exercising the conditional refinancing option. This section informs the borrower of the items / details that the note holder will provide if the conditional refinancing option is exercised. Enter number of calendar days for notification prior to maturity date. Enter the number of days borrower has to notify note holder with desire to exercise the conditional refinancing option. Enter the new note rate description. Enter number of calendar days to prove ownership. Enter dollar amount of processing fees. 43 Business Real Estate Secured Lending Documents User Guide

Chapter 5 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name, title, and address of the person representing the Note Holder that I must notify in order to exercise the Conditional Refinancing Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Refinancing Option by notifying the Note Holder no later than calendar days prior to the Maturity Date. The Note Holder will calculate the fixed New Note Rate in effect on the date and time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have calendar days to provide the Note Holder with acceptable proof of my required ownership. Before the Maturity Date, the Note Holder will advise me of the new interest rate (the New Note Rate), new monthly payment amount, and a date, time, and place at which I must appear to sign any documents required to complete the required refinancing. I understand the Note Holder will charge me a processing fee, any reasonable third party costs, such as those for documentary stamps, intangible tax, survey, recording fees, etc., and the costs associated with updating the title insurance policy, if any. 6 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Balloon Note Addendum. 7 8 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Agreed to by or on behalf of above Borrower(s): 9 10 11 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: MULTISTATE BALLOON NOTE ADDENDUM (page 2 of 2 pages) NB0171 (LASER) 44 Business Real Estate Secured Lending Documents User Guide

Chapter 5 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 6. State-specific language. This section provides state-specific language. West Virginia. For mortgages secured by properties located in West Virginia you MUST add the following at the end of the instrument if all monthly payments are not of an equal amount: THIS CONTRACT IS NOT PAYABLE IN INSTALLMENTS OF EQUAL AMOUNTS If there is only one installment that is at least twice as large as the smallest of all earlier scheduled payments (other than any downpayment), lenders should then insert: AN INSTALLMENT OF WILL BE DUE ON. If there is more than one installment that is at least twice as large as the smallest downpayment, lenders should instead insert: LARGER INSTALLMENTS WILL BE DUE AS FOLLOWS: (The amount of every such installment and its due date should then be inserted here). 7. Record name of borrower. This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 8. Record form of organization. This section provides a place to record the form of the organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 9. Record signature of borrower. This line provides a place to record the signature of the borrower. The signature of the person printed above or the person representing the business above is required here. 10. Type or print name. This section provides a place to record the person s printed name. 11. Record title / date. This line provides a place to record both the signer s business title and the date the document was signed. Person signing must also fill in date manually. 45 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Business Real Estate Mortgage / Deed of Trust The Business Real Estate Mortgage / Deed of Trust is a filed document that shows that the credit union has a lien against the 1-4 family property. Each state has its own version. The physical location of the real estate will determine which state document should be used to secure the loan. For purposes of business lending, this document will be non-conforming and can only be used for 1-4 family, real estate secured loans. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: A mortgage or deed of trust is used whenever a security interest is taken by the credit union in a 1-4 family dwelling. The security instrument is different for every state. If you lend in more than one state you must obtain a security instrument for each state in which you lend. This document should be used with the Business Real Estate Notes and the Business Real Estate Rider documents. This instrument gives the credit union the right to foreclose on a dwelling if the borrower is in default. In the case of loan default, the credit union would be able to recover the loss using the borrower s real estate as the asset. Once recorded it notifies third parties that your credit union has a security interest in the 1-4 family property. RX state code series* The credit union retains the original security instrument for recording with the appropriate county recording authority in the county where the property is located. State law and credit union policy will determine which parties are entitled to receive a copy of this instrument. No imprinting available Varies by state version Each state has a specific version. In some states a security instrument for real estate is called a mortgage. In other states it is called a deed of trust, trust deed, or security deed. The basic difference between a mortgage and deed of trust is how the title to the property is held and how foreclosure takes place. In other respects, both forms of the security instrument are similar. Given that state laws can vary considerably, be sure to consult your own attorney to determine how to meet state law requirements. *Indicates spaceholder for version number 46 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page one sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE MORTGAGE After Recording Return To: PARCEL ID NUMBER: SPACE ABOVE THIS LINE FOR RECORDER'S USE DEFINITIONS Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16. 1 2 (A) "Security Instrument" means this document, which is dated, together with all Riders to this document. (B) "Borrower" is: 3 4 5 6 7 8 9 Borrower is the mortgagor under this Security Instrument. (C) "Lender" is. Lender is a organized and existing under the laws of. Lender's address is. Lender is the mortgagee under this Security Instrument. (D) "Note" means the promissory note signed by Borrower and dated. The Note states that Borrower owes Lender Dollars (U.S. ) plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than. (E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property." (F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the Note, and all sums due under this Security Instrument, plus interest. (G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be executed by Borrower [check box as applicable]: Adjustable Rate Rider Other(s) [specify] Assignment of Rents (H) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and administrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions. (I) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization. WISCONSIN (page 1 of 12) RXWI11-e 47 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. The first two pages of this document defines the terms that will be used throughout the document. 1. Security instrument. Enter the effective date of the security instrument. Security instrument refers to both the Business Real Estate Mortgage / Deed of Trust and any attached Rider. 2. Borrower. Enter the borrower s name and address. This term refers to I or me throughout the document. 3. Lender. Enter the credit union s name, state, and address as a reference to the specific credit union. This term refers to the corporation or association which exists under laws for a specific state. 4. Note. Enter the note s effective date, written loan amount, numerical loan amount, and termination date referring to the specific note. This term refers to the note signed and dated by the borrower. 5. Property. This term refers to the property that is described in the section titled Transfer of Rights in Property. 6. Loan. This term means the debt evidenced by the note, plus interest, any prepayment charges and late charges due under the note, and all sums due under this security instrument, plus interest. 7. Riders. This term refers to all riders attached to this security instrument that are signed by the borrower. A checkbox is used to indicate the specific rider. 8. Applicable law. This term refers to all controlling applicable federal, state and local statues, regulations, ordinances and administrative rules and orders as well as all applicable final, non-appealable judicial opinions. 9. Community association dues, fees and assessments. This term refers to all dues, fees, assessments and other charges that are imposed on the borrower or the property by a condominium association, homeowners association or similar organization. 48 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page two sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the letters provided to locate the corresponding instructions on the next page. 10 11 12 13 14 15 16 (J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers, and automated clearinghouse transfers. (K) "Escrow Items" means those items that are described in Section 3. (L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property. (M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan. (N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus (ii) any amounts under Section 3 of this Security Instrument. (O) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) and its implementing regulation, Regulation X (24 C.F.R. Part 3500), as they might be amended from time to time, or any additional or successor legislation or regulation that governs the same subject matter. As used in this Security Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA. (P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party has assumed Borrower's obligations under the Note and/or this Security Instrument. TRANSFER OF RIGHTS IN THE PROPERTY This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in the of [Type of Recording Jurisdiction] [Name of Recording Jurisdiction] which has the address of, Street), Wisconsin (City) (Zip Code) ("Property Address") TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." WISCONSIN (page 2 of 12) RXWI11-e 49 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. The first two pages of this document defines the terms that will be used throughout the document. Note: Each state version might define terms differently. 10. Electronic Funds Transfer. This term means any transfer of money, other than by check, draft, or similar paper instrument, which is initiated through electronic means. 11. Escrow items. This term refers to those items that are described in Section 3 of the document. 12. Miscellaneous proceeds. This term means any compensation, settlement, award of damages, or proceeds paid by any third party for damage to or destruction of the property; condemnation or other taking of all or any part of the property; conveyance in lieu of condemnation or sale to avoid condemnation; or misrepresentations of, or omissions as to the value and / or condition of the property. 13. Mortgage insurance. This term refers to insurance protecting a credit union against the nonpayment of or default on the loan. 14. Periodic payment. This term refers to the regularly scheduled amount due for principal and interest under the note and any amounts under Section 3. 15. RESPA. This acronym stands for Real Estate Settlement Procedures Act. As used in this security instrument, it refers to all requirements and restrictions that are imposed in regard to a federally related mortgage loan. 16. Successor in interest of borrower. This term refers to any party that has taken title to the property Borrower s Transfer to Lender of Rights in the Property. This section explains to the borrower that signing the security instrument gives the credit union rights against the property to protect it from possible losses if the borrower fails to: Pay off the loan Pay with interest any amount the credit union spends used to protect the value of the property Keep all of their other promises and agreements under this security instrument and note Transfer of Rights in the Property. This section describes the property being used to secure the loan. The property location, county and legal description are entered to identify the specific property for the security instrument. 50 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page three and four sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. 17 18 19 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all subsequent payments due under the Note and this Security Instrument amounts be made dueinfor oneany or Escrow more of Items the following for which forms, payment as selected of Funds has been waived by Lender and, if by Lender: (a) cash; (b) money order; (c) Lender certified requires, check, shall bank furnish check, to treasurer's Lender receipts checkevidencing or cashier's such payment within such time period as check, provided any such check is drawn Lender uponmay an institution require. Borrower's whose deposits obligation are insured to makebysuch a federal payments and to provide receipts shall for all agency, instrumentality, or entity; or (d) Electronic purposes Funds be deemed Transfer. to be a covenant and agreement contained in this Security Instrument, as the phrase Payments are deemed received by Lender "covenant when and received agreement" at the location is used designated in Section in 9. the If Borrower Note at is obligated to pay Escrow Items directly, such other location as may be designatedpursuant by Lender to ainwaiver, accordance and Borrower with the notice fails toprovisions pay the amount in Section due for an Escrow Item, Lender may exercise 15. Lender may return any payment or partial its rights payment under if Section the payment 9 andorpay partial suchpayments amount and are insufficient Borrower shall then be obligated under Section 9 to to bring the Loan current. Lender may accept repay to anylender payment anyor such partial amount. payment Lender insufficient may revoke to bring the waiver the as to any or all Escrow Items at any Loan current, without waiver of any rights time hereunder by a notice or prejudice given intoaccordance its rights to with refuse Section such15 payment and, upon or such revocation, Borrower shall pay to partial payments in the future, but Lender Lender is not all Funds, obligated and toin apply such amounts, such payments that are atthen required time such under this Section 3. payments are accepted. If each Periodic Payment Lenderismay, applied at any as time, of itscollect scheduled and hold due date, Fundsthen in anlender amount (a) sufficient to permit Lender to apply need not pay interest on unapplied funds. thelender Fundsmay at the hold time such specified unapplied under funds RESPA, until and Borrower (b) not makes to exceed the maximum amount a lender can payment to bring the Loan current. If Borrower requiredoes under notrespa. do so within Lendera shall reasonable estimate period the of amount time, Lender of Funds due on the basis of current data and shall either apply such funds or return them reasonable to Borrower. estimates If notof applied expenditures earlier, of such future funds Escrow will beitems applied or otherwise in accordance with Applicable to the outstanding principal balance under Law. the Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the The future Funds against shall Lender be held shall inrelieve an institution Borrower from whosemaking deposits are insured by a federal agency, payments due under the Note and this Security instrumentality, Instrument or or entity performing (including thelender, covenants if Lender and agreements is an institution whose deposits are so insured) or in secured by this Security Instrument. any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time 2. Application of Payments or Proceeds. specifiedexcept under as RESPA. otherwise Lender described shall not incharge this Section Borrower2, forallholding and applying the Funds, annually payments accepted and applied by Lender analyzing shall bethe applied escrow in the account, following or verifying order ofthe priority: Escrow(a) Items, interest unless Lender pays Borrower interest on the due under the Note; (b) principal due under Funds theand Note; Applicable (c) amounts Law due permits under Lender Section to make 3. Such suchpayments a charge. Unless an agreement is made in writing shall be applied to each Periodic Payment orinapplicable the orderlaw in which requires it became interestdue. to beany paidremaining on the Funds, amounts Lender shall not be required to pay Borrower shall be applied first to late charges, second any interest to any other or earnings amounts on due the Funds. under this Borrower Security andinstrument, Lender can agree in writing, however, that interest and then to reduce the principal balance of shall the be Note. paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the If Lender receives a payment from Borrower Funds as required for a delinquent by RESPA. Periodic Payment which includes a sufficient amount to pay any late charge due, Ifthe there payment is a surplus may be applied of Funds to held the delinquent escrow, payment as defined and under RESPA, Lender shall account to the late charge. If more than one Periodic Borrower Payment for the is excess outstanding, funds Lender in accordance may apply with RESPA. any payment If there is a shortage of Funds held in escrow, received from Borrower to the repayment as defined of the Periodic under RESPA, Payments Lender if, shall and to notify the Borrower extent that, as required each by RESPA, and Borrower shall pay to payment can be paid in full. To the extent Lender that any the excess amountexists necessary after to themake payment up the is applied shortage to intheaccordance full with RESPA, but in no more than payment of one or more Periodic Payments, 12 monthly such payments. excess may If there be applied is a deficiency to any late of Funds charges helddue. in escrow, as defined under RESPA, Lender Voluntary prepayments shall be applied shall first to notify anyborrower prepayment as required charges by andrespa, then asand described Borrower inshall the pay to Lender the amount necessary to Note. make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments. Any application of payments, insurance proceeds, Upon payment or Miscellaneous in full of all sums Proceeds secured to principal by this Security due under Instrument, Lender shall promptly refund to the Note shall not extend or postpone the Borrower due date, any or change Funds held the amount, by Lender. of the Periodic Payments. 3. Funds for Escrow Items. Borrower 20 shall 4. Charges; pay to Lender Liens. on Borrower the dayshall Periodic paypayments all taxes, are assessments, due charges, fines, and impositions under the Note, until the Note is paid in full, attributable a sum (the to the "Funds") Property to provide which can for attain payment priority of amounts over thisdue Security Instrument, leasehold payments or for: (a) taxes and assessments and otherground items which rents can on the attain Property, priorityifover any, this andsecurity Community Instrument Association as Dues, Fees, and Assessments, if any. a lien or encumbrance on the Property; (b) Toleasehold the extent payments that these or ground itemsrents are Escrow on the Property, Items, Borrower if any; (c) shall pay them in the manner provided in premiums for any and all insurance required Section by3. Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable byborrower shall to Lender promptly in discharge lieu of theany payment lien which of Mortgage has priority over this Security Instrument unless Insurance premiums in accordance with Borrower: the provisions (a) agrees of Section in writing 10. These to the items payment are called of the "Escrow obligation secured by the lien in a manner Items." At origination or at any time during acceptable the termto of Lender, the Loan, but only Lender so long mayas require Borrower thatiscommunity performing such agreement; (b) contests the lien in Association Dues, Fees, and Assessments, good if any, faithbe by, escrowed or defends byagainst Borrower, enforcement and such ofdues, the lien fees in, and legal proceedings which in Lender's opinion assessments shall be an Escrow Item. Borrower operateshall to prevent promptly thefurnish enforcement to Lender of all thenotices lien while of amounts those proceedings to are pending, but only until such be paid under this Section. Borrower shall proceedings pay Lenderare theconcluded; Funds for or Escrow (c) secures Items from unlessthe Lender holderwaives of the lien an agreement satisfactory to Lender Borrower's obligation to pay the Fundssubordinating for any all theescrow lien to Items. this Security LenderInstrument. may waiveifborrower's Lender determines that any part of the Property is obligation to pay to Lender Funds for anysubject or all Escrow to a lien Items which at any cantime. attainany priority such over waiver this may Security only beinstrument, Lender may give Borrower a in writing. In the event of such waiver, notice Borrower identifying shall the paylien. directly, Withinwhen 10 days andofwhere the date payable, on which thethat notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this Section 4. WISCONSIN Lender (page may3 of require 12) Borrower to pay a one-time charge RXWI11-efor a real estate tax verification and/or reporting service used by Lender in connection with this Loan. 21 5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent charges each time remappings or similar changes occur which reasonably might affect such determination or certification. Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection with the review of any flood zone determination resulting from an objection by Borrower. WISCONSIN (page 4 of 12) RXWI11-e 51 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page three and four instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Starting on page three is a list of covenants that describe the promises and agreements in plain language. 17. Payment of principal, interest, escrow items, prepayment charges, and late charges. This section describes the borrower s obligation to pay the credit union the principal and interest due under the note on time and any prepayment, late charges and other amounts due under the note. It also describes the obligation to pay all amounts for escrow items under Section 3 of this security instrument. 18. Application of payments or proceeds. This section describes the order in which the credit union will apply each of the borrower s payments. 19. Funds for escrow items. This section describes the borrower s obligation to pay all amounts necessary to pay for taxes, assessments, water charges, sewer rents and other similar charges, ground leasehold payments or rents, hazard or property insurance covering the property, flood insurance, and any required mortgage insurance, or a loss reserve as described in Section 10 in the place of mortgage insurance. This section also describes the credit union s obligation to keep the escrow funds in a savings or banking institution which has its deposits insured by a federal agency, instrumentality, or entity, or in any Federal Home Loan Bank. 20. Charges; liens. This section describes the borrower s obligation to pay all taxes, assessments, water charges, sewer rents and other similar charges, and any other charges and fines that may be imposed on the property and that may be superior to this security instrument. 21. Property insurance. This section describes the borrower s obligation to obtain hazard or property insurance to cover all buildings and other improvements that are now or in the future will be located on the property. 52 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page five and six sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. 22 23 If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment. All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any form of insurance coverage, not otherwise required by Lender, 24 for damage to, or destruction of, the Property, 8. such Borrower's policy shall Loan include Application. a standard Borrower mortgage shall clause be in and default if, during the Loan application process, shall name Lender as mortgagee and/or as an Borrower additional or loss any payee. persons or entities acting at the direction of Borrower or with Borrower's knowledge or In the event of loss, Borrower shall give consent prompt gave notice materially to the false, insurance misleading, carrier and or inaccurate Lender. Lender information or statements to Lender (or failed to may make proof of loss if not made promptly provide by Borrower. Lender with Unless material Lender information) and Borrower in connection otherwise agree with the Loan. Material representations include, in writing, any insurance proceeds, whether but or not are the not underlying limited to, insurance representations was required concerning by Lender, Borrower's shall occupancy of the Property as Borrower's be applied to restoration or repair of the Property, principal if residence. the restoration or repair is economically feasible and 25 Lender's security is not lessened. During such repair 9. Protection and restoration of Lender's period, Interest Lender in shall the have Property the right and to Rights Under this Security Instrument. If (a) hold such insurance proceeds until Lender has Borrower had an fails opportunity to perform to inspect the covenants such Property and agreements to ensure contained the in this Security Instrument, (b) there work has been completed to Lender's satisfaction, is a legal proceeding provided that that such might inspection significantly shall affect be undertaken Lender's interest in the Property and/or rights under promptly. Lender may disburse proceeds for this the Security repairs and Instrument restoration (such in as a single a proceeding payment in or bankruptcy, in a series probate, for condemnation or forfeiture, for of progress payments as the work is completed. enforcement Unless of an a agreement lien which is may made attain in writing priority or over Applicable this Security Instrument or to enforce laws or Law requires interest to be paid on such regulations), insurance proceeds, or (c) Borrower Lender has shall abandoned not be the required Property, to pay then Lender may do and pay for whatever is Borrower any interest or earnings on such reasonable proceeds. or Fees appropriate for public to adjusters, protect Lender's or other interest third parties, in the Property and rights under this Security retained by Borrower shall not be paid out Instrument, of the insurance including proceeds protecting and shall and/or be assessing the sole obligation the value of of the Property, and securing and/or repairing Borrower. If the restoration or repair is not the economically Property. feasible Lender's or actions Lender's can security include, would but are be not lessened, limited to: (a) paying any sums secured by a lien the insurance proceeds shall be applied to the which sums has secured priority by over this this Security Security Instrument, Instrument; whether (b) or appearing not in court; and (c) paying Reasonable then due, with the excess, if any, paid to Borrower. Attorneys' Such Fees insurance (as defined proceeds in Section shall 25) be applied to protect in the its order interest in the Property and/or rights under this provided for in Section 2. Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property If Borrower abandons the Property, Lender includes, may file, but negotiate is not limited and settle to, entering any available the Property insurance to make claim repairs, change locks, replace or board up and related matters. If Borrower does not doors respond and within windows, 30 days drain to water a notice from from pipes, Lender eliminate that building the or other code violations or dangerous insurance carrier has offered to settle a claim, conditions, then and Lender have may utilities negotiate turned and on settle or off. the Although claim. The Lender may take action under this Section 9, 30-day period will begin when the notice Lender is given. does In not either have event, to do or so if and Lender is not acquires under any the duty Property or obligation to do so. It is agreed that Lender under Section 22 or otherwise, Borrower hereby incurs assigns no liability to Lender for not (a) taking Borrower's any or all rights actions to any authorized insurance under this Section 9. proceeds in an amount not to exceed the amounts Any unpaid amounts under disbursed the Note by or Lender this Security under Instrument, this Section and 9 shall become additional debt of Borrower (b) any other of Borrower's rights (other than secured the by right this to Security any refund Instrument. of unearned These premiums amounts shall paid bear by interest at the Note rate from the date of Borrower) under all insurance policies covering disbursement the Property, and shall insofar be as payable, such rights with are such applicable interest, to upon the notice from Lender to Borrower requesting coverage of the Property. Lender may use the payment. insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note or this If Security this Security Instrument, Instrument whether is on or not a leasehold, then due. Borrower shall comply with all the provisions of the 6. Occupancy. Borrower shall occupy, lease. establish, If Borrower and acquires use the fee Property title to as the Borrower's Property, the principal leasehold and the fee title shall not merge unless residence within 60 days after the execution Lender of this agrees Security to the Instrument merger in and writing. shall continue to occupy the 26 Property as Borrower's principal residence for 10. at Mortgage least one Insurance. year after If the Lender date required of occupancy, Mortgage unless Insurance as a condition of making the Loan, Lender otherwise agrees in writing, which Borrower consent shall shall pay not the be premiums unreasonably required withheld, to maintain or unless the Mortgage Insurance in effect. If, for any extenuating circumstances exist which are beyond reason, Borrower's the Mortgage control. Insurance coverage required by Lender ceases to be available from the mortgage 7. Preservation, Maintenance and Protection insurer that of previously the Property; provided Inspections. such insurance Borrower and Borrower shall not was required to make separately designated destroy, damage or impair the Property, payments allow the toward Property the to premiums deteriorate for or Mortgage commit Insurance, waste on the Borrower shall pay the premiums required to Property. Whether or not Borrower is residing obtain in coverage the Property, substantially Borrower equivalent shall maintain to the the Property Mortgage in Insurance previously in effect, at a cost order to prevent the Property from deteriorating substantially or decreasing equivalent in value to the due cost to to its Borrower condition. of Unless the Mortgage it is Insurance previously in effect, from an determined pursuant to Section 5 that repair alternate or restoration mortgage is insurer not economically approved by feasible, Lender. Borrower If substantially shall equivalent Mortgage Insurance coverage is promptly repair the Property if damaged not to available, avoid further Borrower deterioration shall continue or damage. to pay to If Lender insurance the amount or of the separately designated payments condemnation proceeds are paid in connection that with were damage due when to, or the the insurance taking of, coverage the Property, ceased Borrower to be in effect. Lender will accept, use and retain shall be responsible for repairing or restoring these the payments Property only as a if non-refundable Lender has released loss reserve proceeds in lieu for of such Mortgage Insurance. Such loss reserve shall be purposes. Lender may disburse proceeds for non-refundable, the repairs and notwithstanding restoration in a the single fact payment that the or Loan in a series is ultimately paid in full, and Lender shall not be of progress payments as the work is completed. required to If the pay insurance Borrower any or condemnation interest or earnings proceeds on such are not loss reserve. Lender can no longer require loss sufficient to repair or restore the Property, reserve Borrower payments is not if relieved Mortgage of Insurance Borrower's coverage obligation (in the for amount the and for the period that Lender requires) completion of such repair or restoration. provided by an insurer selected by Lender again becomes available, is obtained, and Lender requires Lender or its agent may make reasonable separately entries designated upon and inspections payments toward of the Property. the premiums If it has for Mortgage Insurance. If Lender required reasonable cause, Lender may inspect the interior Mortgage of the Insurance improvements as a condition on the Property. of making Lender the Loan shall and give Borrower was required to make separately Borrower notice at the time of or prior to such designated an interior payments inspection toward specifying the premiums such reasonable for Mortgage cause. Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between WISCONSIN Borrower(page and5 of Lender 12) providing for such termination or RXWI11-e until termination is required by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in the Note. Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance. Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available (which may include funds obtained from Mortgage Insurance premiums). As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that WISCONSIN (page 6 of 12) RXWI11-e 53 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page five and six instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 22. Occupancy. This section describes the obligation of the borrower to occupy the property and to use it as their principal residence if required by the credit union. 23. Preservation, maintenance and protection of the property; inspections. This section describes the borrower s obligation to not destroy, damage or harm the property, and to not allow the property to deteriorate. 24. Borrower s loan application. This section describes the consequences to the borrower for making false, misleading, or inaccurate statements to the credit union about information important to the credit union in determining eligibility for the loan. 25. Protection of lender s interest in the property and rights under this security Instrument. This section describes the credit union s right to protect its security interest in the property. It also describes the actions the credit union can take to protect its rights. 26. Mortgage insurance. This section describes the borrower s obligation to obtain and pay the premiums for mortgage insurance if required by the credit union. 54 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page seven and eight sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. 27 28 derive from (or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance." Further: (a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage Insurance, and they will not entitle Borrower to any refund. (b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at the time of such cancellation or termination. 11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and shall be paid to Lender. If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if the restoration or repair is any economically Successorfeasible in Interest and Lender's of Borrower security or toisrefuse not lessened. to extend time for payment or otherwise modify During such repair and restoration period, amortization Lender shall of the havesums the secured right to by hold thissuch Security Miscellaneous Instrument by reason of any demand made by the Proceeds until Lender has had an opportunity original to Borrower inspect such or any Property Successors to ensure in Interest the work of Borrower. has beenany forbearance by Lender in exercising any completed to Lender's satisfaction, provided right thatorsuch remedy inspection including, shallwithout be undertaken limitation, promptly. Lender's Lender acceptance of payments from third persons, may pay for the repairs and restoration in aentities single or disbursement Successors in or Interest in a series of Borrower of progress or inpayments amountsas less than the amount then due, shall not be a the work is completed. Unless an agreement waiver is made of or inpreclude writing or the Applicable exercise of Law any requires right or interest remedy. to be paid on such Miscellaneous Proceeds, 29 Lender13. shall Joint notand be Several requiredliability; to pay Co-signers; Borrower any Successors interest or and Assigns Bound. Borrower covenants and earnings on such Miscellaneous Proceeds. agrees If thethat restoration Borrower's repair obligations is notand economically liability shall feasible be joint or and several. However, any Borrower who Lender's security would be lessened, the Miscellaneous co-signs thisproceeds Securityshall Instrument be applied buttodoes the not sums execute securedthe bynote (a "co-signer"): (a) is co-signing this this Security Instrument, whether or not then Security due, Instrument with the only excess, to mortgage, if any, paid grant toand Borrower. convey the Suchco-signer's interest in the Property under the Miscellaneous Proceeds shall be applied in the terms order ofprovided this Security for in Instrument; Section 2. (b) is not personally obligated to pay the sums secured by this Security In the event of a total taking, destruction, Instrument; or loss and in(c) value agrees ofthat the Lender Property, andthe anymiscellaneous other Borrower can agree to extend, modify, forbear or Proceeds shall be applied to the sums secured make by any this accommodations Security Instrument, withwhether regard to or the not terms then due, of this withsecurity Instrument or the Note without the the excess, if any, paid to Borrower. co-signer's consent. In the event of a partial taking, destruction, Subject or loss to in value the provisions of the Property of Section in which 18, the any fairsuccessor market in Interest of Borrower who assumes value of the Property immediately before the partial taking, obligations destruction, under this or loss Security in value Instrument is equal into writing, or and is approved by Lender, shall obtain greater than the amount of the sums secured all of byborrower's this Security rights Instrument and benefits immediately under this before Security the partial Instrument. Borrower shall not be released from taking, destruction, or loss in value, unlessborrower's obligations and Lenderand otherwise liabilityagree underin this writing, Security theinstrument sums unless Lender agrees to such release in secured by this Security Instrument shall writing. be reduced The by covenants the amount and agreements of the Miscellaneous of this Security Proceeds Instrument shall bind (except as provided in multiplied by the following fraction: (a) thesection total amount 20) and of benefit the sums the successors secured immediately and assigns before of Lender. the partial taking, destruction, or loss in value 30divided 14. by Loan (b) the Charges. fair market Lender value may of the charge Property Borrower immediately fees for services performed in connection with before the partial taking, destruction, or loss Borrower's in value. Any default, balance forshall the purpose be paid to ofborrower. protecting Lender's interest in the Property and rights under this In the event of a partial taking, destruction, Security or Instrument, loss in valueincluding, of the Property but notinlimited whichto, theattorneys' fair market fees, property inspection and valuation fees. value of the Property immediately before the In partial regardtaking, to anydestruction, other fees, or theloss absence in value of is express less than authority the in this Security Instrument to charge a amount of the sums secured immediately before specificthe feepartial to Borrower taking, shall destruction, not be construed or loss in as value, a prohibition unless on the charging of such fee. Lender may Borrower and Lender otherwise agree in writing, not charge the Miscellaneous fees that are Proceeds expressly shall prohibited be applied by this to Security the sumsinstrument or by Applicable Law. secured by this Security Instrument whether or If not the the Loan sums is are subject then to due. a law which sets maximum loan charges, and that law is finally interpreted If the Property is abandoned by Borrower, so or that if, the after interest noticeor byother Lender loan tocharges Borrower collected that theor Opposing to be collected in connection with the Loan exceed Party (as defined in the next sentence) offers thetopermitted make anlimits, awardthen: to settle (a) any a claim suchfor loan damages, charge shall Borrower be reduced by the amount necessary to reduce fails to respond to Lender within 30 days after the the charge dateto the the notice permitted is given, limit; Lender and is(b) authorized any sums toalready collect collected from Borrower which exceeded and apply the Miscellaneous Proceeds either permitted to restoration limits will orbe repair refunded of the to Property Borrower. orlender to themay sums choose to make this refund by reducing the secured by this Security Instrument, whether principal or notowed then under due. "Opposing the Note orparty" by making meansa the direct third payment party to Borrower. If a refund reduces principal, that owes Borrower Miscellaneous Proceedsthe or reduction the party against will be treated whom Borrower as a partial hasprepayment a right of action without in any prepayment charge (whether or not a regard to Miscellaneous Proceeds. prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by Borrower shall be in default if any action direct or proceeding, payment to Borrower whether civil will constitute or criminal, a waiver is begun of that, any right in of action Borrower might have arising out Lender's judgment, could result in forfeiture of such of the overcharge. Property or other material impairment of Lender's interest in the Property or rights under this 31 Security 15. Notices. Instrument. All notices Borrower given canbycure Borrower such aor default Lenderand, in connection if with this Security Instrument must acceleration has occurred, reinstate as provided be in inwriting. SectionAny 19, notice by causing to Borrower the action in connection or proceeding with to thisbesecurity Instrument shall be deemed to have dismissed with a ruling that, in Lender's judgment, been given precludes to Borrower forfeiture whenofmailed the Property by firstorclass other mail material or when actually delivered to Borrower's notice impairment of Lender's interest in the Property address or rights if sent under by other this means. SecurityNotice Instrument. to anythe oneproceeds Borrowerof shall constitute notice to all Borrowers unless any award or claim for damages that areapplicable attributable Lawtoexpressly the impairment requiresofotherwise. Lender's interest The notice in the address shall be the Property Address unless Property are hereby assigned and shall be paid Borrower to Lender. has designated a substitute notice address by notice to Lender. Borrower shall promptly notify All Miscellaneous Proceeds that are not Lender appliedof toborrower's restoration change or repairof ofaddress. the Property If Lender shall specifies be applieda procedure for reporting Borrower's change in the order provided for in Section 2. of address, then Borrower shall only report a change of address through that specified procedure. There 12. Borrower Not Released; Forbearancemay By be Lender onlynot oneadesignated Waiver. Extension notice address of theunder time for thispayment Security Instrument at any one time. Any notice to or modification of amortization of the sums Lender secured shall bybethis given Security by delivering Instrument it or granted by mailing by itlender by first toclass mail to Lender's address stated herein Borrower or any Successor in Interest of Borrower unless Lender shall not hasoperate designated to release another theaddress liability by of Borrower notice to Borrower. Any notice in connection with this any Successors in Interest of Borrower. Lender Security shall Instrument not be required shall not tobe commence deemed toproceedings have been given against to Lender until actually received by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under this Security Instrument. WISCONSIN 32 16. (page Governing 7 of 12) Law; Severability; Rules of Construction. RXWI11-eThis Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action. WISCONSIN (page 8 of 12) RXWI11-e 55 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page seven and eight instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 27. Assignment of miscellaneous proceeds; forfeiture. This section clarifies that all miscellaneous proceeds are assigned to and will be paid to the credit union in order to protect its security interest. 28. Borrower not released; forbearance by lender not a waiver. This section describes that even though the credit union may allow a delay or change in the amount of the periodic payments, the obligations of the borrower under the note remain intact. 29. Joint and several liabilities; co-signers; successors and assigns bound. This section describes to any person signing this security instrument that the credit union may enforce its rights against each of them individually or against all of them together. 30. Loan charges. This section informs the borrower that the credit union may charge them fees for services performed in connection with any default. 31. Notices required under this security instrument. This section describes how both the credit union and the borrower will provide notices required under this security instrument. Examples include: All notices will be in writing. All notices will be considered given to the borrower if mailed first class or hand delivered to the notice address or if delivered to another borrower (A notice to one borrower is a notice to all). 32. Governing law; severability; rules of construction. This section describes the laws that govern the security instrument. All rights and obligations contained in this security instrument are subject to any requirements and limitations of applicable law. 56 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page nine and ten sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. 33 34 35 36 37 17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument. 18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have the right to have enforcement ofcleanup" this Security includes Instrument any response discontinued action, atremedial any timeaction, prior torthe removal action, as defined in Environmental earliest of: (a) five days before sale of the Law; Property and (d) pursuant "Environmental to any power Condition" of salemeans contained a condition in thisthat can cause, contribute to, or otherwise Security Instrument; (b) such other period trigger as an Applicable Environmental Law might Cleanup. specify for the termination of Borrower's right to reinstate; or (c) entry of Borrower a judgment shall not enforcing cause or thispermit Security the presence, Instrument. use, Those disposal, storage, or release of any Hazardous conditions are that Borrower: (a) pays Lender Substances, all sums or which threaten then to release would be anydue Hazardous under this Substances, Security on or in the Property. Borrower shall not Instrument and the Note as if no acceleration do, had noroccurred; allow anyone (b) cures elseany todefault do, anything of other affecting covenants the Property (a) that is in violation of any or agreements; (c) pays all expenses incurred Environmental in enforcing Law, this (b) Security which creates Instrument, an Environmental including, butcondition, not or (c) which, due to the presence, limited to, Reasonable Attorneys' Fees (asuse, defined or release in Section of 25), a Hazardous property Substance, inspection and creates valuation a condition fees, that adversely affects the value of the and other fees incurred for the purpose ofproperty. protecting TheLender's preceding interest two sentences in the Property shall not andapply rights tounder the presence, use, or storage on the Property of this Security Instrument; and (d) takes such smallaction quantities as Lender of Hazardous may reasonably Substances require thattoare assure generally that recognized to be appropriate to normal Lender's interest in the Property and rightsresidential under this uses Security and toinstrument, maintenance andofborrower's the Property obligation (including, to but not limited to, hazardous substances pay the sums secured by this Security Instrument, in consumer shall products). continue unchanged. Lender may require that Borrower pay such reinstatement sums and expenses Borrower inshall one promptly or more of give thelender following written forms, notice as selected of (a) any investigation, claim, demand, lawsuit or by Lender: (a) cash; (b) money order; (c) other certified actioncheck, by any bank governmental check, treasurer's or regulatory checkagency or cashier's or private party involving the Property and any check, provided any such check is drawnhazardous upon an institution Substance whose or Environmental deposits are insured Law by of awhich federal Borrower has actual knowledge, (b) any agency, instrumentality or entity; or (d) Electronic Environmental Funds Condition, Transfer. Upon including reinstatement but not limited by Borrower, to, any spilling, this leaking, discharge, release or threat of Security Instrument and obligations secured release hereby of shall any Hazardous remain fullysubstance, effective as and if (c) no any acceleration conditionhad caused by the presence, use or release of a occurred. However, this right to reinstatehazardous shall not apply Substance in thewhich case of adversely acceleration affects under the value Section of 18. the Property. If Borrower learns, or is notified 20. Sale of Note; Change of Loan Servicer; by any Notice governmental of Grievance. or regulatory The Noteauthority, a partial or any interest private in the party, that any removal or other remediation Note (together with this Security Instrument) of any canhazardous be sold one Substance or moreaffecting times without the Property prior notice is necessary, to Borrower shall promptly take all Borrower. A sale might result in a change necessary in the entity remedial (known actions as the in accordance "Loan Servicer") with that Environmental collects Law. Nothing herein shall create any Periodic Payments due under the Note and obligation this Security on Lender Instrument for an Environmental and performs Cleanup. other mortgage loan servicing obligations under the Note, this Security NON-UNIFORM Instrument, COVENANTS. and Applicable Borrower Law. Thereand alsolender might be further covenant and agree as follows: one or more changes of the Loan Servicer 38 unrelated 22. Acceleration; to a sale of the Remedies. Note. If Lender there is shall a change giveof notice the Loan to Borrower prior to acceleration following Servicer, Borrower will be given written notice Borrower's of the breach change which of anywill covenant state theor name agreement and address in this of Security Instrument (but not prior to the new Loan Servicer, the address to which acceleration paymentsunder shouldsection be made 18and unless anyapplicable other information Law provides RESPAotherwise). The notice shall specify: (a) the requires in connection with a notice of transfer default; of servicing. (b) the action If therequired Note is to sold cure andthe thereafter default; the (c) Loan a date, is not less than 30 days from the date the serviced by a Loan Servicer other than thenotice purchaser is given of the tonote, Borrower, the mortgage by whichloan the servicing default must obligations be cured; and (d) that failure to cure the default to Borrower will remain with the Loan Servicer on or orbefore transferred the datetospecified a successor in the Loanotice Servicer mayand result are not in acceleration of the sums secured by this assumed by the Note purchaser unless otherwise Security provided Instrument by the and Note salepurchaser. of the Property. The notice shall further inform Borrower of the right to Neither Borrower nor Lender may commence, reinstatejoin, afteror acceleration be joined and to any the judicial right toaction bring a(as court either action an to assert the non-existence of a default or individual litigant or the member of a class) anythat other arises defense fromofthe Borrower other party's to acceleration actions pursuant and sale. toif this the default is not cured on or before the date Security Instrument or that alleges that thespecified other party in the hasnotice, breached Lender anyat provision its option of, may or any require dutyimmediate owed payment in full of all sums secured by by reason of, this Security Instrument, until thissuch Security Borrower Instrument or Lender without has notified furtherthe demand other party and may (withinvoke the power of sale and any other such notice given in compliance with the requirements remedies permitted of Section by Applicable 15) of suchlaw. alleged Lender breach shall and beafforded entitled to collect all expenses incurred in pursuing the other party hereto a reasonable periodtheafter remedies the giving provided of such in this notice Section to take 22, corrective including, action. but notiflimited to, Reasonable Attorneys' Fees (as Applicable Law provides a time period which defined must in elapse Section before 25) and certain costs action of title can evidence. be taken, that time period will be deemed to be reasonable for purposes If Lenderofinvokes this paragraph. the power The ofnotice sale, Lender of acceleration shall giveand notice of sale in the manner prescribed by opportunity to cure given to Borrower pursuant Applicable to Section Law to Borrower 22 and the andnotice to theofother acceleration persons given prescribed to by Applicable Law. Lender shall publish Borrower pursuant to Section 18 shall be deemed the notice to of satisfy sale, the andnotice the Property and opportunity shall be sold to take in the corrective manner prescribed by Applicable Law. Lender or action provisions of this Section 20. its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the 21. Hazardous Substances. As used following this Section order: (a) 21: to (a) all expenses "Hazardous of the Substances" sale, including, are those but not limited to, Reasonable Attorneys' Fees substances defined as toxic or hazardous (as substances, defined inpollutants, Section 25); or (b) wastes to allby sums Environmental secured by Law this Security and Instrument; and (c) any excess to the the following substances: gasoline, kerosene, clerk of other circuit flammable court of orthe toxic county petroleum in which products, the sale is toxic held. pesticides and herbicides, volatile solvents, 39 23. materials Release. Upon containing payment asbestos of all sums or formaldehyde, secured by thisand Security Instrument, Lender shall release this radioactive materials; (b) "Environmental Law" Security means Instrument. federal laws Borrower and laws shall of pay the jurisdiction any recordation wherecosts. the Lender may charge Borrower a fee for Property is located that relate to health, releasing safetythis orsecurity environmental Instrument, protection; but only (c) if the"environmental fee is paid to a third party for services rendered and the charging of the fee is permitted under Applicable Law. 40 24. Accelerated Redemption Periods. If the Property is a one- to four-family residence that is WISCONSIN owner-occupied (page 9 of at 12) the commencement of a foreclosure, RXWI11-e a farm, a church or owned by a tax exempt charitable organization, Borrower agrees to the provisions of Section 846.101 of the Wisconsin Statutes, and as the same may be amended or renumbered from time to time, permitting Lender, upon waiving the right to judgment for deficiency, to hold the foreclosure sale of real estate of 20 acres or less six months after a foreclosure judgment is entered. If the Property is other than a one-to four-family residence that is owner-occupied at the commencement of a foreclosure, a farm, a church, or a tax-exempt charitable organization, Borrower agrees to the provisions of Section 846.103 of the Wisconsin Statutes, and as the same may be amended or renumbered from time to time, permitting Lender, upon waiving the right to judgment for deficiency, to hold the foreclosure sale of real estate three months after a foreclosure judgment is entered. 41 25. Attorneys' Fees. If this Security Instrument is subject to Chapter 428 of the Wisconsin Statutes, "Reasonable Attorneys' Fees" shall mean only those attorneys' fees allowed by that Chapter. WISCONSIN (page 10 of 12) RXWI11-e 57 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page nine and ten instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 33. Borrower s copy. This section informs the borrower receive one copy of the note and this security instrument will be received by the borrower. 34. Transfer of the property or a beneficial interest in borrower. This section describes the credit union s rights if the property is sold or transferred (e.g., The credit union may require immediate payment in full of all sums secured by this security instrument if the property was sold or transferred without prior written permission). 35. Borrower s right to reinstate after acceleration. This section describes to the borrower his / her rights to have credit union s enforcement of this security instrument discontinued. The borrower may stop credit union enforcement by paying the credit union in full, correcting any failure to keep promises or agreements, paying all of the credit union s reasonable expenses in enforcing the agreement, or do whatever the credit union reasonably requires to assure that the credit union s interest in the property and its rights under this security instrument continue unchanged. 36. Sale of note; change of loan servicer; notice of grievance. This section informs the borrower of the note holder s right to sell the note one or more times without prior notice. 37. Hazardous substances. This section describes the borrower s obligation to not do anything that would affect the property that violates environmental law, and that they will not allow anyone else to do so. 38. Acceleration; remedies. This section informs the borrower of the credit union s rights if there is a failure to keep promises and agreements in this security instrument. Example: Credit union may require that the borrower pay immediately the entire amount remaining unpaid under the note and may bring a lawsuit to remove all of the borrower s rights in the property and have the property sold. 39. Release. This section describes the credit union s obligation when the note is paid in full to discharge this security instrument by delivering a certificate stating that this security instrument has been satisfied. 40. Accelerated redemption periods. This section describes the three or six month redemption period for foreclosure sales for owner-occupied property in Wisconsin. (This will not apply to business real estate security lending. The Business Real Estate 1-4 Family Rider will stipulate that the dwelling is non-owner occupied.) 41. Attorneys fees. This section describes that reasonable attorneys fees shall mean only those fees allowed by Chapter 428 pf the Wisconsin Statutes. Note: Section 40 and 41 apply to Wisconsin only. Each state s document may refer to specific state statutes. 58 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page eleven and twelve sample Wisconsin s Business Real Estate Mortgage will be used as a sample document. Other state versions will be similar. Use the numbers provided to locate the corresponding instructions on the next page. 42 BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any Rider executed by Borrower and recorded with it. IN WITNESS WHEREOF, Borrower has executed this Mortgage. 43 44 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) STATE OF WISCONSIN, County ss: 45 46 47 Borrower The foregoing instrument was acknowledged before me this, (Date) Form of Organization (if applicable) by (Person Acknowledging) Agreed to by or on behalf of above Borrower(s): (Person Acknowledging) By: X (Seal) (Person Acknowledging) Printed Name: Title: Date: (Person Acknowledging) 48 My Commission expires: By: X (Seal) Printed Name: Notary Public, State of Wisconsin Title: Date: Name By: X (Seal) Printed Name: Title: Date: This instrument was prepared by. By: X (Seal) Printed Name: Title: Date: WISCONSIN (page 11 of 12) RXWI11-e WISCONSIN (page 12 of 12) RXWI11-e 59 Business Real Estate Secured Lending Documents User Guide

Chapter 6 Page eleven and twelve instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 42. Read disclosure. The borrower accepts and agrees to the promises and agreements described in the security instrument. 43. Record name of borrower. This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 44. Record form of organization. This section provides a place to record the form of the organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 45. Record signature of borrower. This line provides a place to record the signature of the borrower. The signature of the person printed above or the person representing the business above is required here. 46. Print or type name. This section provides a place to record the person s printed name. In addition to the signature, the name must also appear printed / typed. 47. Record title / date. This line provides a place to record both the signatory s business title and the date the document was signed. The person signing must also fill in the date manually. 48. Record notary information. This section provides a place for the notary public to acknowledge the borrower s identity and signatures. 60 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Business Real Estate 1-4 Family Rider The Business Real Estate 1-4 Family Rider is used to amend the mortgage / deed of trust to accommodate the origination of a 1-4 family, non-conforming real estate secured loan. These documents should be used with the Business Real Estate Notes found in Chapters 2, 3 and 4 and the Business Real Estate Mortgage / Deed of Trust. For purposes of business lending, this document will be non-conforming and can only be used for 1-4 family real estate secured loans. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The Business Real Estate 1-4 Family Rider must be used for a mortgage that is secured by a 1-4 family property. The Business Real Estate 1-4 Family Riders are recorded along with the Business Real Estate Mortgage / Deed of Trust. These documents provide the flexibility needed to create a 1-4 family business loans. These documents amend the Business Real Estate Mortgage / Deed of Trust to properly secure the loan. RXB10* or RXBMI* (Michigan) The credit union retains the original security instrument for recording with the appropriate recording agency in the county where the property is located. No imprinting available. Three Michigan *Indicates spaceholder for version number 61 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. BUSINESS REAL ESTATE Assignment of Rents THIS ASSIGNMENT OF RENTS 1 day of,, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to 2 (the Lender") of the same date and covering the Property described in the Security Instrument and located at: 3 [Property Address] COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. ADDITIONAL PROPERTY SUBJECT TO THE SECURITY INSTRUMENT. In addition to the Property described in Security Instrument, the following items now or hereafter attached to the Property to the extent they are fixtures are added to the Property description, and shall also constitute the Property covered by the Security Instrument: building materials, appliances and goods of every nature whatsoever now or hereafter located in, on, or used, or intended to be used in connection with the Property, including, but not limited to, those for the purposes of supplying or distributing heating, cooling, electricity, gas, water, air and light, fire prevention and extinguishing apparatus, security and access control apparatus, plumbing, bath tubs, water heaters, water closets, sinks, ranges, stoves, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, attached mirrors, cabinets, paneling and attached floor coverings, all of which, including replacements and additions thereto, shall be deemed to be and remain a part of the Property covered by the Security Instrument. All of the foregoing together with the Property described in the Security Instrument (or the leasehold estate if the Security Instrument is on a leasehold) are referred to in this Assignment of Rents and the Security Instrument as the "Property." B. USE OF PROPERTY; COMPLIANCE WITH LAW. Borrower shall not seek, agree to or make a change in the use of the Property or its zoning classification, unless Lender has agreed in writing to the change. Borrower shall comply with all laws, ordinances, regulations and requirements of any governmental body applicable to the Property. C. SUBORDINATE LIENS. Except as permitted by federal law, Borrower shall not allow any lien inferior to the Security Instrument to be perfected against the Property without Lender's prior written permission. D. RENT LOSS INSURANCE. Borrower shall maintain insurance against rent loss in addition to the other hazards for which insurance is required by Section 5. E. "BORROWER'S RIGHT TO REINSTATE" DELETED. Section 19 is deleted. F. BORROWER'S OCCUPANCY. Unless Lender and Borrower otherwise agree in writing, Section 6 concerning Borrower's occupancy of the Property is deleted. 4 MULTISTATE ASSIGNMENT OF RENTS RXB104-e 62 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 1. Insert day, month and year. The Business Real Estate 1-4 Family Rider should use the same date as the Business Real Estate Mortgage / Deed of Trust. 2. Record name of lender. This section provides a place to record the credit union s name. 3. Record property address. This section provides a place to record the address of the property described in the Business Real Estate Mortgage / Deed of Trust. 4. Read rider covenants. This section contains covenants for the borrower to read that are specific to 1-4 family dwellings. Topics include: Additional property subject to the security instrument Use of property compliance with law Rent loss insurance Borrower s right to reinstate deleted Borrower s occupancy 63 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 4 G. ASSIGNMENT OF LEASES. Upon Lender's request after default, Borrower shall assign to Lender all leases of the Property and all security deposits made in connection with leases of the Property. Upon the assignment, Lender shall have the right to modify, extend or terminate the existing leases and to execute new leases, in Lender's sole discretion. As used in this paragraph G, the word "lease" shall mean "sublease" if the Security Instrument is on a leasehold. H. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. Borrower absolutely and unconditionally assigns and transfers to Lender all the rents and revenues ("Rents") of the Property, regardless of to whom the Rents of the Property are payable. Borrower authorizes Lender or Lender's agents to collect the Rents, and agrees that each tenant of the Property shall pay the Rents to Lender or Lender's agents. However, Borrower shall receive the Rents until: (i) Lender has given Borrower notice of default pursuant to Section 22 of the Security Instrument, and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender's agent. This assignment of Rents constitutes an absolute assignment and not an assignment for additional security only. If Lender gives notice of default to Borrower: (i) all Rents received by Borrower shall be held by Borrower as trustee for the benefit of Lender only, to be applied to the sums secured by the Security Instrument; (ii) Lender shall be entitled to collect and receive all of the Rents of the Property; (iii) Borrower agrees that each tenant of the Property shall pay all Rents due and unpaid to Lender or Lender's agents upon Lender's written demand to the tenant; (iv) unless applicable law provides otherwise, all Rents collected by Lender or Lender's agents shall be applied first to the costs of taking control of and managing the Property and collecting the Rents, including, but not limited to, attorney's fees, receiver's fees, premiums on receiver's bonds, repair and maintenance costs, insurance premiums, taxes, assessments and other charges on the Property, and then to the sums secured by the Security Instrument; (v) Lender, Lender's agents or any judicially appointed receiver shall be liable to account for only those Rents actually received; and (vi) Lender shall be entitled to have a receiver appointed to take possession of and manage the Property and collect the Rents and profits derived from the Property without any showing as to the inadequacy of the Property as security. If the Rents of the Property are not sufficient to cover the costs of taking control of and managing the Property and of collecting the Rents any funds expended by Lender for such purposes shall become indebtedness of Borrower to Lender secured by the Security Instrument pursuant to Section 9. Borrower represents and warrants that Borrower has not executed any prior assignment of the Rents and has not performed, and will not perform, any act that would prevent Lender from exercising its rights under this paragraph. Lender, or Lender's agents or a judicially appointed receiver, shall not be required to enter upon, take control of or maintain the Property before or after giving notice of default to Borrower. However, Lender, or Lender's agents or a judicially appointed receiver, may do so at any time when a default occurs. Any application of Rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment of Rents of the Property shall terminate when all the sums secured by the Security Instrument are paid in full. MULTISTATE ASSIGNMENT OF RENTS RXB104-e 64 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Read rider covenants (cont.). This section contains covenants for the borrower to read that are specific to 1-4 family dwellings. Topics include: Assignment of rents, appointment of receiver, lender in possession 65 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. I. CROSS-DEFAULT PROVISION. Borrower's default or breach under any note or agreement in which Lender has an interest shall be a breach under the Security Instrument and Lender may invoke any of the remedies permitted by the Security Instrument. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Assignment of Rents. 5 6 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Agreed to by or on behalf of above Borrower(s): 7 8 9 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: MULTISTATE ASSIGNMENT OF RENTS RXB104-e 66 Business Real Estate Secured Lending Documents User Guide

Chapter 7 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Read rider covenants (cont.). This section contains covenants for the borrower to read that are specific to 1-4 family dwellings. Topics include: Cross-default provisions 5. Record name of borrower(s). This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 6. Record form of organization. This section provides a place to record the form of organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 7. Record signature(s) of borrower(s). This section provides a place for each borrower to sign the Business Real Estate 1-4 Family Rider. 8. Print or type name. This section provides a place to record the borrower s printed name. In addition to the signature, the name must also appear printed or typed. 9. Record title / date. This line provides a place to record both the borrower s business title and the date the document was signed. The person signing must manually fill in date. 67 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Business Real Estate Adjustable Rate Rider The Business Real Estate Adjustable Rate Rider is a document that secures the Adjustable Rate Note to the security instrument. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The Business Real Estate Adjustable Rate Rider must be used for amending the mortgage / deed of trust. The Business Real Estate Adjustable Rate Rider secures the Adjustable Rate Note to the security instrument (mortgage / deed of trust). RXB40* The credit union retains the original security agreement for recording with the appropriate recording agency in the county where the property is located. No imprinting available Three None *Indicates spaceholder for version number 68 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. 4 BUSINESS REAL ESTATE ADJUSTABLE RATE RIDER 1 THIS ADJUSTABLE RATE RIDER is made this day of,, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the "Note") to 2 (the "Lender") of the same date and covering the property described in the Security Instrument and located at: 3 [Property Address] THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER MUST PAY. ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. INTEREST RATE AND MONTHLY PAYMENT CHANGES The Note provides for an initial interest rate of %. The Note provides for changes in the interest rate and the monthly payments as follows: 4. INTEREST RATE AND MONTHLY PAYMENT CHANGES (A) Change Dates The interest rate I will pay may change on the first day of, and on that day every month thereafter. Each date on which my interest rate could change is called a "Change Date." (B) The Index Beginning with the first Change Date, my interest rate will be based on an Index. The "Index" is the. The most recent Index figure available as of the date 45 days before each Change Date is called the "Current Index." If the Index is no longer available, the Note Holder will choose a new index which is based upon comparable information. The Note Holder will give me notice of this choice. (C) Calculation of Changes Before each Change Date, the Note Holder will calculate my new interest rate by adding percentage points ( %) to the Current Index. The Note Holder will then round the result of this addition to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section 4(D) below, this rounded amount will be my new interest rate until the next Change Date. MULTISTATE ADJUSTABLE RATE RIDER (PAGE 1 OF 2) RXB402 (LASER) 69 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 1. Insert date, month and year. The Business Real Estate 1-4 Family Rider should use the same date as the Business Real Estate Mortgage / Deed of Trust. 2. Record name of lender. This section provides a place to record the credit union s name. 3. Record property address. This section provides a place to record the address of the property described in the Business Real Estate Mortgage / Deed of Trust. 4. Read rider covenants. This section contains covenants for the borrower to read that are specific to the Adjustable Rate Note and security instrument. Interest rate and monthly payment changes Interest change dates Index Calculation of changes 70 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 4 The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the maturity date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment. (D) Limits on Interest Rate Changes The interest rate I am required to pay at the first Change Date will not be greater than % or less than %. Thereafter, my interest rate will never be increased or decreased on any single Change Date by more than percentage points ( %) from the rate of interest I have been paying for the preceding months. My interest rate will never be greater than %. (E) Effective Date of Changes My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again. (F) Notice of Changes The Note Holder will deliver or mail to me a notice of any changes in my interest rate and the amount of my monthly payment before the effective date of any change. The notice will include information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice. B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER Section 18 of the Security Instrument is amended to read as follows: Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of title by Borrower at a future date to a purchaser. If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if such exercise is prohibited by Applicable Law. Lender also shall not exercise this option if: (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; and (b) Lender reasonably determines that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender. To the extent permitted by Applicable Law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender may also require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing. MULTISTATE ADJUSTABLE RATE RIDER (PAGE 2 OF 2) RXB402 (LASER) 71 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Read rider covenants (cont.). Limits on interest rate changes Effective date of changes Notice of changes Transfer of the property or a beneficial interest in borrower 72 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page three sample Use the numbers provided to locate the corresponding instructions on the next page. If Lender exercises the option to require immediate payment in full, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Adjustable Rate Rider. 5 6 Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) Borrower Form of Organization (if applicable) 7 8 9 Agreed to by or on behalf of above Borrower(s): By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: MULTISTATE ADJUSTABLE RATE RIDER (PAGE 3 OF 3) RXB402 (LASER) 73 Business Real Estate Secured Lending Documents User Guide

Chapter 8 Page three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 5. Record name of borrower(s). This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 6. Record form of organization. This section provides a place to record the form of organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 7. Record signature of borrower. This section provides a place for each borrower to sign the Business Real Estate 1-4 Family Rider. 8. Print or type name. This section provides a place to record the borrower s printed name. In addition to the signature, the name must also appear printed or typed. 9. Record title / date. This line provides a place to record both the borrower s business title and the date the document was signed. The person signing must manually fill in date. 74 Business Real Estate Secured Lending Documents User Guide

Chapter 9 Business Real Estate Condo Rider The Business Real Estate Condo Rider is a document that supplements the security instrument. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: The Business Real Estate Condo Rider may be used for amending the mortgage / deed of trust. Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The Business Real Estate Condo Rider supplements the security instrument (mortgage / deed of trust). RXB50* The credit union retains the original security agreement for recording with the appropriate recording agency in the county where the property is located. No imprinting available Three Texas *Indicates spaceholder for version number 75 Business Real Estate Secured Lending Documents User Guide

Chapter 9 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. 4 BUSINESS REAL ESTATE CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this day of,, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to 2 (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 3 [Property Address] The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: [Name of Condominium Project] (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, from which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. 1 MULTISTATE CONDOMINIUM RIDER (page 1 of 3 pages) RXB500 (LASER) 76 Business Real Estate Secured Lending Documents User Guide

Chapter 9 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 1. Insert date, month and year. The Business Real Estate Condo Rider should use the same date as the Business Real Estate Mortgage / Deed of Trust. 2. Record name of lender. This section provides a place to record the credit union s name. 3. Record property address. This section provides a place to record the address of the property and condominium name described in the Business Real Estate Mortgage / Deed of Trust. 4. Read rider covenants. This section contains covenants for the borrower to read that are specific for a Condominium Rider. Condominium Obligations Property Insurance Public Liability Insurance Condemnation Lenders Prior Consent Remedies 77 Business Real Estate Secured Lending Documents User Guide

Chapter 9 Page two and three sample Use the numbers provided to locate the corresponding instructions on the next page. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11. E. Lender's Prior Consent. Borrower BY SIGNING shall not, BELOW, except Borrower after notice accepts to Lender and agrees and to the terms and covenants contained with Lender's prior written consent, in this either Condominium partition Rider. or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by 5 fire or other casualty or in the case Borrower of a taking by condemnation or eminent domain; (ii) any amendment to any provision 6 Form of the of Organization Constituent Documents (if applicable) if the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self-management of the Borrower Owners Association; or (iv) any action which would have the effect of rendering Form the public of Organization liability insurance (if applicable) coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not Borrower pay condominium dues and assessments when due, then Lender may pay them. Form Anyof amounts Organization disbursed (if applicable) by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Borrower Lender agree to other terms of payment, these amounts shall bear interest from theform date of disbursement Organization (if atapplicable) the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. Agreed to by or on behalf of above Borrower(s): 7 8 9 By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: MULTISTATE CONDOMINIUM RIDER By: X (Seal) Printed Name: Title: Date: (page 2 of 3 pages) RXB500 (LASER) MULTISTATE CONDOMINIUM RIDER (page 3 of 3 pages) RXB500 (LASER) 78 Business Real Estate Secured Lending Documents User Guide

Chapter 9 Page two and three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 5. Record name of borrower(s). This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 6. Record form of organization. This section provides a place to record the form of organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 7. Record signature of borrower. This section provides a place for each borrower to sign the Business Real Estate Condo Rider. 8. Print or type name. This section provides a place to record the borrower s printed name. In addition to the signature, the name must also appear printed or typed. 9. Record title / date. This line provides a place to record both the borrower s business title and the date the document was signed. The person signing must manually fill in date. 79 Business Real Estate Secured Lending Documents User Guide

Chapter 10 Business Real Estate PUD Rider The Business Real Estate PUD Rider is a document that supplements the security instrument. If your credit union wants to make conforming loans, you should follow your existing real estate processes or contact your real estate processor for assistance. Document Description When used: The Business Real Estate PUD Rider may be used for amending the mortgage / deed of trust. Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The Business Real Estate PUD Rider supplements the security instrument (mortgage / deed of trust). RXB60* The credit union retains the original security agreement for recording with the appropriate recording agency in the county where the property is located. No imprinting available Three Texas *Indicates spaceholder for version number 80 Business Real Estate Secured Lending Documents User Guide

Chapter 10 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. 4 BUSINESS REAL ESTATE PLANNED UNIT DEVELOPMENT RIDER THIS PLANNED UNIT DEVELOPMENT RIDER is made this day of,, and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the "Security Instrument") of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to 2 (the "Lender") of the same date and covering the Property described in the Security Instrument and located at: 3 [Property Address] The Property includes, but is not limited to, a parcel of land improved with a dwelling, together with other such parcels and certain common areas and facilities, as described in (the "Declaration"). The Property is a part of a planned unit development known as [Name of Planned Unit Development] (the "PUD"). The Property also includes Borrower's interest in the homeowners association or equivalent entity owning or managing the common areas and facilities of the PUD (the "Owners Association") and the uses, benefits and proceeds of Borrower's interest. PUD COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further covenant and agree as follows: A. PUD Obligations. Borrower shall perform all of Borrower's obligations under the PUD's Constituent Documents. The "Constituent Documents" are the (i) Declaration; (ii) articles of incorporation, trust instrument or any equivalent document which creates the Owners Association; and (iii) any by-laws or other rules or regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or "blanket" policy insuring the Property which is satisfactory to Lender and which provides insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards included within the term "extended coverage," and any other hazards, including, but not limited to, earthquakes and floods, for which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. What Lender requires as a condition of this waiver can change during the term of the loan. 1 MULTISTATE PUD RIDER (page 1 of 3 pages) RXB600 (LASER) 81 Business Real Estate Secured Lending Documents User Guide

Chapter 10 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 1. Insert date, month and year. The Business Real Estate PUD Rider should use the same date as the Business Real Estate Mortgage / Deed of Trust. 2. Record name of lender. This section provides a place to record the credit union s name. 3. Record property address. This section provides a place to record the address of the property and planned unit development (PUD) name described in the Business Real Estate Mortgage / Deed of Trust. 4. Read rider covenants. This section contains covenants for the borrower to read that are specific for the planned unit development (PUD). PUD Obligations Property Insurance Public Liability Insurance Condemnation Lenders Prior Consent Remedies 82 Business Real Estate Secured Lending Documents User Guide

Chapter 10 Page two and three sample Use the numbers provided to locate the corresponding instructions on the next page. Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the master or blanket policy. In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to the Property, or to common areas and facilities of the PUD, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender. Lender shall apply the proceeds to the sums secured by the Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section BY SIGNING 11. BELOW, Borrower accepts and agrees to the terms and covenants contained E. Lender's Prior Consent. in Borrower this PUD shall Rider. not, except after notice to Lender and with Lender's prior written consent, 5 Borrower either partition or subdivide the Property or consent to: (i) the abandonment or termination of the PUD, except for abandonment 6 Form of Organization (if applicable) or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking Borrower by condemnation or eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the provision is for the express benefit of Lender; (iii) termination Form of of Organization professional (if management applicable) and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public Borrower liability insurance coverage maintained by the Owners Association unacceptable toform Lender. of Organization (if applicable) F. Remedies. If Borrower does not pay PUD dues and assessments when due, then Lender may pay them. Any amounts Borrower disbursed by Lender under this paragraph F shall become additional debt of Borrower Form of secured Organization by the(if Security applicable) Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender toagreed Borrower to by requesting or on behalf payment. of above Borrower(s): 7 By: X (Seal) 8 Printed Name: 9 Title: Date: By: X (Seal) Printed Name: Title: Date: By: X (Seal) Printed Name: Title: Date: MULTISTATE PUD RIDER By: X (Seal) Printed Name: (page Title: 2 of 3 pages) RXB600 (LASER) Date: MULTISTATE PUD RIDER (page 3 of 3 pages) RXB600 (LASER) 83 Business Real Estate Secured Lending Documents User Guide

Chapter 10 Page two and three instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 5. Record name of borrower(s). This section provides a place to record each borrower s name. The name of the borrower (person or business) must be printed / typed in this area. 6. Record form of organization. This section provides a place to record the form of organization. Examples of organization forms include: Individual Sole Proprietorship Partnership Corporation LLC Association 7. Record signature of borrower. This section provides a place for each borrower to sign the Business Real Estate PUD Rider. 8. Print or type name. This section provides a place to record the borrower s printed name. In addition to the signature, the name must also appear printed or typed. 9. Record title / date. This line provides a place to record both the borrower s business title and the date the document was signed. The person signing must manually fill in date. 84 Business Real Estate Secured Lending Documents User Guide

Chapter 11 FEMA Standard Flood Zone Determination For every loan which is secured by a building or mobile home, the credit union must use a FEMA Standard Flood Hazard Determination to document whether the secured property is or will be located in a special flood hazard area (SFHA). Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: This document is used when either the credit union or a third party makes the flood hazard determination. It documents the status of real estate that will secure the loan with regard to areas determined to be flood hazard areas. For every loan made by a credit union which is secured by a building or mobile home, the credit union must use a standard Flood Hazard Determination Form to determine whether the secured property is or will be located in an SFHA. EST88* A copy of the completed form must be retained by the credit union for the period of time the credit union owns the loan. (Copy may be electronic or hardcopy.) No imprinting available One None *Indicates spaceholder for version number 85 Business Real Estate Secured Lending Documents User Guide

Chapter 11 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. DEPARTMENT OF HOMELAND SECURITY FEDERAL EMERGENCY MANAGEMENT AGENCY STANDARD FLOOD HAZARD DETERMINATION FORM (SFHDF) O.M.B. No. 1660-0040 Expires May 30, 2015 1 1. LENDER NAME AND ADDRESS SECTION I -- LOAN INFORMATION 2. COLLATERAL (Building/Mobile Home/Property) PROPERTY ADDRESS AND PARCEL NUMBER 2 3. LENDER ID NO. 4. LOAN IDENTIFIER SECTION II A. NATIONAL FLOOD INSURANCE PROGRAM (NFIP) COMMUNITY JURISDICTION 1. NFIP Community Name 2. County(ies) 3. State 5. AMOUNT OF FLOOD INSURANCE REQUIRED 4. NFIP Community Number B. NATIONAL FLOOD INSURANCE PROGRAM (NFIP) DATA AFFECTING BUILDING/MOBILE HOME 1. NFIP Map Number or Community-Panel Number 2. NFIP Map Panel 3. LOMA/LOMR 4. Flood Zone 5. No NFIP Map (Community name, if not the same as "A") Effective/Revised Date Number C. FEDERAL FLOOD INSURANCE AVAILABILITY (Check all that apply) 1. Federal flood insurance is available (community participates in the NFIP). Regular Program Emergency Program of NFIP 2. Federal flood insurance is not available because community is not participating in the NFIP. 3. Building/Mobile Home is in a Coastal Barrier Resources Area (CBRA) or Otherwise Protected Area (OPA). Federal Flood Insurance may not be available. CBRA/OPA Designation Date: D. DETERMINATION IS BUILDING/MOBILE HOME IN SPECIAL FLOOD HAZARD AREA (ZONES CONTAINING THE LETTERS "A" OR "V")? YES NO If yes, flood insurance is required by the Flood Disaster Protection Act of 1973. If no, flood insurance is not required by the Flood Disaster Protection Act of 1973. Please note, the risk of flooding in this area is only reduced, not removed. E. COMMENTS (Optional): This determination is based on examining the NFIP map, any Federal Emergency Management Agency revisions to it, and any other information needed to locate the building/mobile home on the NFIP map. F. PREPARER'S INFORMATION NAME, ADDRESS, TELEPHONE NUMBER (If other than Lender) DATE OF DETERMINATION PREVIOUSLY FEMA Form 81-93 FEMA Form 086-0-32, (4/12) EST887-e 86 Business Real Estate Secured Lending Documents User Guide

Chapter 11 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 1. Section I: Loan Information. This section provides a place to record the following loan information: Credit union name and address Collateral description Credit union ID number Loan identifier Amount of flood insurance required 2. Section II: This section provides a place to record the following flood hazard information: National Flood Insurance Program (NFIP) Jurisdiction including NFIP Community Name, County, State and NFIP Community Number NFIP data affecting building / mobile home including NFIP map number, NFIP map panel effective / revised date, LOMA / LOMR, Flood zone, and No NFIP Map Federal Flood Insurance Availability (Check all that apply) Determination (Check yes or no indicating that the building / mobile home is or is not located in a special flood hazard area as indicated by zones containing the letters A or V on the NFIP map) Comments (Optional) Preparer s information including name, address, telephone number and the date of determination 87 Business Real Estate Secured Lending Documents User Guide

Chapter 12 Flood Insurance Notice The Flood Insurance Notice is used to notify the borrower that the property used to secure the business loan is located in a special flood hazard area. If the property is located in a community that participates in the National Flood Insurance Program (NFIP), the borrower must purchase flood insurance or provide proof of flood insurance (the borrower may have already had to purchase the flood insurance if they have a purchase money mortgage loan on the property) prior to closing on the loan. If the property is located in a community which does not participate in the NFIP, the credit union will need to decide if it wants to proceed with the loan transaction. Document Description When used: Purpose: Document number: How distributed: Imprinting: Number of pages: State-specific versions: The Flood Insurance Notice is used when a determination has been made that the building or mobile home securing the loan is located in a special flood hazard area. The purpose of this notice is to communicate to the borrower that the property is located in a special flood hazard area. If the property is located in a community that participates in the NFIP, then the borrower must purchase flood insurance prior to closing the loan. The credit union may not close the loan until the borrower presents proof that flood insurance was purchased. If the property is located in a community which does not participate in the NFIP, the credit union may close the loan without flood insurance or cancel the transaction. EST89* A copy of this form must be given to the borrower and the loan servicer. (The servicer copy is only used if the servicer is not the credit union.) The notice must be given to the borrower within a reasonable time before closing. Ten days is considered reasonable but is not required. You must allow the borrower enough time to purchase the flood insurance before closing on the loan. This document allows an imprint of your credit union s name, address, phone number and logo. Two (Page is repeated three times to provide multiple copies for borrower, credit union, and servicer.) None *Indicates spaceholder for version number 88 Business Real Estate Secured Lending Documents User Guide

Chapter 12 Page one sample Use the numbers provided to locate the corresponding instructions on the next page. LOAN NUMBER NAME OF SERVICER IF OTHER THAN CREDIT UNION Flood Insurance Notice BORROWER(S) NAME(S) AND ADDRESS(ES): 1 PROPERTY ADDRESS: We are giving you this notice to inform you that: Notice of Special Flood Hazards and Availability of Federal Disaster Relief Assistance The building or mobile home securing the loan for which you have applied is or will be located in an area prone to high flood risks that we call a Special Flood Hazard Area (SFHA). The area has been identified by the Federal Emergency Management Agency (FEMA) as an SFHA using the Flood Insurance Rate Map (FIRM) or the Flood Hazard Boundary Map (FHBM) for the following community number:. 2 FIRMs are prepared by FEMA in cooperation with the applicable community to identify high flood risk and low-to-moderate flood risk areas. The SFHA in which your building or mobile home is or will be located has at least a one percent (1%) chance of a flood equal to or exceeding the base flood elevation (a 100-year flood) in any given year. During the life of a 30-year mortgage loan, the risk of flooding in a SFHA is 26 percent. Federal law allows a lender and borrower jointly to request the Administrator of FEMA to review the determination of whether the property securing the loan is located in an SFHA. If you would like to make such a request, please contact us for further information. Borrowers may also call a FEMA mapping specialist at (877) 336-2627 to discuss their concerns. 3 PARTICIPATING COMMUNITIES Federal financial assistance, including FEMA disaster assistance, flood mitigation grants and federally backed mortgage lending is available in the NFIP participating communities. Mandatory flood insurance requirements are applicable to all Federal financial assistance. The mandatory flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973 are applicable to Federally regulated lenders making loans in SFHAs. We will not make you the loan that you have applied for if you do not purchase flood insurance. If you fail to renew flood insurance on the property, federal law authorizes and requires us to purchase the flood insurance for you at your expense. The flood insurance must be maintained for the life of your loan. Flood insurance coverage under the NFIP may be purchased through an insurance agent who will obtain the policy either directly through the NFIP or through a Write Your Own (WYO) company that has agreed to write and service NFIP policies on behalf of FEMA. Flood insurance also may be available from private insurers that are not Federally backed. At a minimum, flood insurance purchased must cover the lowest of: (1) the outstanding principal balance of the loan(s); or (2) the maximum amount of coverage allowed for the type of property under the NFIP; or (3) the full replacement cost value (RCV) of the building and/or contents securing the loan. The market value or land value on which the building is located has no bearing on the RCV of the building. Federal disaster relief assistance, the majority of which is in the form of a low-interest disaster assistance loan from the Small Business Administration (SBA), may be available for losses not covered by your flood insurance policy. Flood insurance requirements apply to recipients of Federal disaster assistance grants and SBA disaster assistance loans. If you are planning to build a structure or make repairs, contact the local community's chief executive official to determine building standards for structures within an SFHA. CUNA MUTUAL GROUP, 1997, 2000, 07, 11 ALL RIGHTS RESERVED CREDIT UNION COPY EST895-e 89 Business Real Estate Secured Lending Documents User Guide

Chapter 12 Page one instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. Note: After this document is completed, each of the multiple copies will be distributed to the corresponding party indicated at the bottom of each copy. (Credit Union, Borrower, Servicer) 1. Record loan information. This section provides space to record the following information regarding the borrower s loan. Loan number Name of servicer if other than credit union Borrower s name and address Property address 2. Insert NFIP community name. This blank provides space to insert the National Flood Insurance Program (NFIP) community name. (The name can be found on the Standard Flood Hazard Determination document under A1.) 3. Check if property is in a Participating Community. This blank is checked if the community is covered by NFIP. (Determination is indicated on the Standard Flood Hazard Determination document under C1.) 90 Business Real Estate Secured Lending Documents User Guide

Chapter 12 Page two sample Use the numbers provided to locate the corresponding instructions on the next page. 4 NON-PARTICIPATING COMMUNITIES The community in which the property securing the loan is located does not participate in the National Flood Insurance Program (NFIP). Federal flood insurance is not available. However, private flood insurance may be available on a limited basis in the SFHAs of non-participating communities. Federal financial assistance including disaster assistance grants or loans and flood mitigation grants are not available in SFHAs of non-participating communities. For example, if the non-participating community has been identified for at least one (1) year as containing an SFHA, properties located in the community will not be eligible for Federal disaster relief assistance in the event of a federally declared flood disaster. Conventional loans, loans that are not Federally backed can be made on buildings in the SFHAs of non-participating communities, if authorized by the regulatory authority of the lending institution. However, government guaranteed or insured loans (e.g., SBA, VA, and FHA loans) are not permitted to be made in non-participating communities, if secured by structures in SFHAs. A non-participating community can join the NFIP -- contact your local chief executive official for additional information. ACKNOWLEDGMENT 5 I/We acknowledge receipt of this Notice. X BORROWER SIGNATURE DATE X BORROWER SIGNATURE DATE X SERVICER SIGNATURE DATE X CREDIT UNION OFFICIAL DATE MAILED OR DELIVERED CUNA MUTUAL GROUP, 1997, 2000, 07, 11 ALL RIGHTS RESERVED CREDIT UNION COPY EST895-e 91 Business Real Estate Secured Lending Documents User Guide

Chapter 12 Page two instructions Instructions are given for each section of the document. Please refer to the corresponding number on the sample document to determine each section s relative position on the document. 4. Check if property is not a Participating Community. This blank is checked if the community does not participate in the NFIP. (Determination is indicated on the Standard Flood Hazard Determination document under C2.) 5. Record signature(s). This section provides blanks for the signatures of the borrower(s), servicer, and credit union official and the date of the document. 92 Business Real Estate Secured Lending Documents User Guide