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Loan Disclosures

LOAN AGREEMENT

PROMISE TO PAY: You promise to pay to the Credit Union on its order, the amount financed plus the finance charge according to the payment schedule as each is set forth in the disclosure on the reverse side of this agreement.  Your payment amount includes interest computed and payable at the Annual Percentage Rate shown in the disclosure on the outstanding balance of the Amount Financed from the date the Finance Charge begins until repayment in full.  The amount of your final payment (as well as the total Finance Charge and the total of Payments) will be somewhat more or less than the amounts disclosed if payments are not received precisely on scheduled due dates.  If your loan is a variable rate loan, the interest is tied to the movements of the index shown in the disclosure on the side.  Therefore, either the amount of your periodic payments or the number of such payments are subject to change, and your final payment, finance charge, or total of payments will be different than disclosed.  When received, your payment will be applied in this order: collection costs, then to any late charges, the FINANCE CHARGE owing, and then to the unpaid principal balance.  Unpaid interest will be paid by later payments and will not be added to your unpaid principal balance.

VARIABLE RATE: If your loan is a variable rate loan as indicated by the box denoted variable rate on the reverse being checked, you understand that your contract interest rate may change (increase or decrease) from time to time during the life of your loan based upon movements of the Index shown in the disclosure.  If the index ceases to be made available by the publisher, or by any successor to the publisher, the Credit Union will set the interest rate by using a comparable index.  Any increase in the interest rate will not be more than the stated limit in the disclosure for any change date.

DEFAULT AND REPOSSESSION: You understand you will be in default (1) if you fail to make any payment on time; (2) in the event of your death; (3) in the event of your insolvency or the filing of any requests for relief under the bankruptcy code by or against you; (4) if you are the subject of any legal process which seeks to attach your Credit Union account, any of your property or rights; (5) if you have given the Credit Union false or inaccurate information in obtaining a loan or any other Credit Union services; (6) if you do any act or fail to do any act which the Credit Union believes endangers the collateral, if any, or your ability to repay what you owe, including but limited to, leaving your current employment; (7) if you break any promise you have made under this or any other agreement with the credit union; (8) if you use the collateral in any illegal activity.  In the event of default, you understand that the decision to take action is the sole discretion of the Credit Union and that the failure to act on one default will not stop action on another.  You further agree that the Credit Union does not have to provide you advance notice before taking action on any default, unless required to do so by applicable law.  You will be in default if you fail to obtain or maintain the required property insurance, or if you fail to pay all taxes when due.  If you are in default, the Credit Union may require that you deliver the collateral to it at a time and place of its choosing.  You agree that the Credit Union can take possession of the collateral without judicial process and you authorize a right of entry for that purpose and said repossession may occur without giving you advance notice except when notice is expressly required by applicable law.  This agreement, the Uniform Commercial Code, and other applicable law, authorize the Credit Union to take various actions; and the Credit Union may rely on any or all of those sources.

The Credit Union may also file suit to recover the collateral and/or collect what you owe.  If the Credit Union incurs any expenses in taking these actions, or in protecting its rights to the collateral, you promise to reimburse it and pay for all costs of collection, including court costs and reasonable attorney’s fees as well as any late charges that might be imposed or as allowed by applicable law.  If the Credit Union repossesses the collateral, you promise to also pay for actual and reasonable out-of-pocket expenses incurred by the Credit Union in connection with repossession or foreclosure, including costs of storing, reconditioning, and reselling the collateral.  Any disposition of the collateral will be in accordance with the standards of good faith and commercial reasonableness as well as the procedures set by the applicable state law.

ENTIRE BALANCE DUE: If you default, all of your obligations under this contract will immediately be due without you receiving any advance notice.  The undersigned individually and jointly waive presentment, demand, protest or notice of protest and any notice that the Credit Union is demanding payment in full of the entire outstanding balance under the contract because of default or for any other reason.  If the Credit Union accepts any payment of your debt under this contract after having demanded payment on the entire unpaid balance due or after the Credit Union has sued you, this won’t be considered a waiver or forgiveness of any default in payments or any other default on your part.  The Credit Union will apply any such payments to your unpaid balance.  The Credit Union can delay enforcing any of its rights without losing them.

LATE CHARGES: If any payment is made late, you may be charged a late charge.  You agree to pay the late charge if any is disclosed in the disclosure on the reverse.  In the event that applicable law is interpreted so that the interest or other charges collected in connection with this loan would exceed permitted limits, any such charge shall be reduced by the amount necessary to reduce the total charge to the permitted limit and sums already collected which exceeded permitted limits shall be credited to the principal amount of your loan or refunded all the discretion of the Credit Union.

CO-SIGNER OR GUARANTOR: If you are signing this agreement as co-signer or guarantor, you waive your right to require the Credit Union to attempt collection of this account from the principal borrower first.  You agree to be equally and severally responsible with the principal borrower for all advances and charges on this account.  You understand that the Credit Union may elect to collect on this account from you first in the event of any default.  You understand that all the terms of this agreement apply to you as well as the principal borrower and you waive any requirement that you be notified of changes in the terms of agreement.

ADDITIONAL PROVISIONS: Each provision of this agreement must be considered as part of the total agreement and cannot, in any way, be severed from it.  However, you also agree that should any part of the agreement be found invalid, it will in no way affect the remainder of the agreement.  The Credit Union’s rights, powers and remedies under this agreement shall be cumulative and in addition to all rights, powers and remedies provided by law.  No failure or delay by the Credit Union in exercising any such rights, power or remedy shall be deemed a waiver thereof; any such waiver must be in writing signed by the Credit Union.  You understand that the validity, construction and enforcement of this agreement shall be governed by the laws of the State of Indiana.  You authorize the use of electronic signatures, facsimile signatures and photocopied signatures for all purposes, said signatures to have the same force and effect as original signatures for all transactions, included in applications or agreements with the credit union.

DEBT CANCELLATION: The premiums for your Debt Cancellation are based on your outstanding loan balance and paid as a part of your periodic payment.  If you are late in paying or fail to make a periodic payment, the Credit Union may pay advance funds on your behalf to pay such premiums and may impose additional finance charges on the amount advanced.  If you elected voluntary debt protection, you understand that debt protection rates are not guaranteed, however you will be notified in advance if they are to be changed.

OTHER TERMS: We may delay taking any action to protect our rights as many times as we want as long as we want without losing them.  If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect.  All of our rights shall inure to the benefit of our successors and assigns and all of our obligations shall bind our heirs or legal representatives.

TREATMENT OF PAYMENTS: Payments must be received at any branch by closing on a business day to be credited to your account as of that same day.  If any payments made by you are less than the total payment due, the Credit Union may allocate such payment at its sole discretion.

NOTICE: You agree and attest that your name and address shown herein is your legal name and the place of your residence, and such address is the proper address for all notice(s) required by this Agreement, and you further understand that any changes in this address must be submitted to us in writing to be effective.

NEGATIVE INFORMATION NOTICE: We may report information about your account to credit bureaus.  Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

SECURITY AGREEMENT

SECURITY INTEREST: By signing this agreement and receiving the benefits of your loan described on the reverse side, you are giving the Credit Union a security interest in the property described on the reverse side, and all present and future shares you have in any account in the Credit Union in which you have an interest.  Under the Federal Credit Union Act, we have a statutory lien on your shares and other deposits.  This means we may place a lien on (freeze) your present and future shares, share certificates and dividends to the extent of that portion of your loan that is in default.  You are also giving a security interest in all present and future checking accounts you have with the Credit Union.  You authorize the Credit Union to take that money and apply it to what you owe if you are in default.  The Credit Union may, but does not have to, allow you to withdraw a portion of your shares or monies without affecting its security interest.  You are not giving a security interest in any shares or monies in any IRA, SEP, KEOGH, or any other account which, if pledged, would result in the loss of special tax treatment under the Internal Revenue Code.  This security interest covers not only that property but all proceeds, substitutions or replacements, accessions, improvements, all proceeds from insurance and all refunds of unearned premiums.  The security interest also includes any replacements for the property which you buy within 10 days of this loan or any extensions, renewals, or refinancing of the loan.  Any time this agreement refers to collateral, it means any or all of the property described on the reverse.  You are giving this interest to secure repayment of your loan as well as any other amounts you now owe or will owe the Credit Union.  If the collateral is household goods as defined in the Federal Trade Commission Fair Credit Practices Rule, it only secures obligations for the purchase money for that collateral or a refinancing or consolidation of such obligations.  However, cross collateralization does not extend to any dwelling.

CROSS COLLATERALIZATION: You hereby grant a security interest to the Credit Union in all assets and collateral separately pledged to the Credit Union as collateral for this, or any loan transaction.  You further agree that any security interest granted to secure this loan shall also collateralize any other indebtedness that you may now have or may have in the future with the Credit Union.  It is the intention of this grant to provide for cross-collateralization.  To further secure the payment of this loan and all other indebtedness to the Credit Union now owed or hereafter owed by you, whether or not said indebtedness was intended to be secured or personal, you grant a security interest to the Credit Union in all assets or whatever nature and kind that are pledged hereby as collateral for the within indebtedness.  This provision is intended to create cross-collateralization.

PROTECTION OF COLLATERAL: You promise that you will use the proceeds of the loan to buy the collateral or that you own the collateral and that no one else has any interest in it or claim against it.  If you do not make your payments as required, or if any other event described in the Default and Repossession paragraph occurs, the Credit Union can take the Collateral, without breach of the peace, and sell it to reduce your debt after giving you the proper notice or it can take advantage of any other rights and remedies given to secured parties under the Uniform Commercial Code or other applicable law.  You agree: (a) to maintain, protect and to preserve the Collateral; (b) not to use or permit any one to use the Collateral in violation of this agreement or any statute, regulation or ordinance or any policy of insurance covering the Collateral; (c) to pay promptly when due all taxes, charges, encumbrances or liens now or later imposed upon or affecting the Collateral; (d) to notify the Credit Union promptly of any change of your name or address on file; (e) to help the Credit Union do all that is necessary to protect the Credit Union’s security interest in the Collateral, including giving the Credit Union all endorsements, assignments, financing statements, or other writings which are necessary to protect the Credit Union’s security interest and its priority; (f) not to sell, encumber, lease, rent, otherwise dispose of, or give the Collateral to anyone else other than the Credit Union; (g) to promptly deliver to the Credit Union in the form received, all proceeds of the Collateral you receive; (h) at any reasonable time, upon the Credit Union’s demand, to exhibit to the Credit Union and all the Credit Union to inspect the Collateral.  You warrant that title to said collateral shall be registered in the name only of such borrower/borrowers signatory hereto.  You promise to have our security interest shown on any certificate of title that may issue.  You give us authorization to file a financing statement to protect our security interest from the claims of others.  Secured party may act on any direction or authorization of any undersigned borrower.

PROPERTY INSURANCE AND TAXES: You are required to fully insure the collateral against loss and damage and payroll taxes due.  You may obtain this insurance through any insurance company of your choice, unless the Credit Union, for good cause, refuses to accept it.  You agree that if the Credit Union does not receive a copy if your policy within 30 days, and in deductible amounts acceptable, it is authorized to obtain any type of insurance to protect the Credit Union from financial loss.  THE INSURANCE WILL NOT BE LIABILITY INSURANCE.  This could result in less protection for you and at a higher cost.  The Credit Union will add the premium for this insurance to the applicable loan account and charge you a FINANCE CHARGE at the applicable rate.  You agree that the Credit Union may increase your payment by an amount sufficient to repay any charges added by the Credit Union for property insurance and taxes in accordance with the originally scheduled term.  You promise to have any insurance policy payable to the Credit Union and, if asked, to deliver it to the Credit Union.  The policies for such insurance must say that the Credit Union is to be paid if there is a loss.  If the Collateral is lost or damaged, the Credit Union can use the insurance proceeds to replace or repair it, or to repay any amounts you owe the Credit Union.  You also promise to pay all taxes due on the collateral.  If you fail to do so, the Credit Union may, but does not have to pay the taxes and add the amount to the unpaid principal balance of the loan and charge you a FINANCE CHARGE at the same rate as your loan.

DEFAULT: You will be in default if you break any promise made under the security agreement or if you are in default on your loan.  If you are pledging property as an other owner of collateral, you will be in default if anyone who signed or otherwise authenticated the Note is in default.

DEFAULT REMEDIES: When you are in default and after expiration of any right you have under applicable state law to cure your default, we can require immediate payment of your outstanding balance.  You agree that we have the right to take possession of the property without judicial process, and you authorize a right of entry (other than to a dwelling) for repossession.  We will not be responsible for any personal property not covered by this Agreement that you leave inside the property of that is attached to the property.  We will try to return that property to you.  After we take repossession of the property, we can sell it and apply the money to what you owe us.  We will give you notice of any public sale or the date when a private sale will be held.  We will deduct our expenses for taking possession of the property and for any commercially reasonable preparation or processing, storage and reasonable attorney’s fees to the extent permitted under state law or awarded under Bankruptcy Code.  The rest of the sale money has been applied to the unpaid balance and what you owe.  You will pay interest on that amount at the loan interest rate until the amount has been repaid.

RELEASE OF COLLATERAL: If the Credit Union releases collateral for sale by you, proceeds will be applied to your loan.  You understand that if a balance remains owing after sale proceeds are applied to your loan, you are obligated to continue making scheduled periodic payments in accordance with the payment schedule of your loan with the Credit Union.

OTHER TERMS: We may delay taking any action to protect our rights as many times as we want as long as we want without losing them.  If any part of this Agreement is determined by a court to be unenforceable, the rest will remain in effect.  All of our rights shall inure to the benefit of our successors and assigns and all of our obligations shall bind our heirs or legal representatives.  We reserve the right to impose a charge for statements regarding an accounting of our security interest.

GENERAL: No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same default on a future occasion.  All rights Secured Party hereunder shall inure to the benefit of tis successors and assigns; and all obligations of Borrower shall bind his heirs, executors or administrators or his or its successors or assigns.  If there is more than one Borrower, their obligations hereunder shall be joint and several.  This agreement shall become effective when it is signed by Borrower.

NOTICE: You agree and attest that your name and address shown herein is your legal name and the place of your residence, and such address is the proper address for all notice(s) required by this Agreement, and you further understand that any changes in this address must be submitted to us in writing to be effective.