CREDIT LINE ACCOUNT AGREEMENT AND FEDERAL DISCLOSURE STATEMENT THIS IS YOUR CREDIT LINE ACCOUNT AGREEMENT AND IT INCLUDES NECESSARY FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENTS, AND ANY OTHER ACCOUNT ACCESS DEVICE. PLEASE BE CERTAIN TO READ THIS AGREEMENT CAREFULLY AND NOTIFY US AT ONCE IF ANY PARTS ARE UNCLEAR.

“Agreement” means this Credit Line Account Agreement And Federal Disclosure Statement. In this Agreement the reference to “We”, Us, “Our” and “Credit Union” mean Franklin Mint Federal Credit Union, whereas the words “You”, “Your” and “Member” mean each person who signs a credit application, any Credit Line Account Advance Request and Security Agreement (“Advance Request”) or loans proceeds check, or otherwise accepts the terms of this Agreement. The word (“Account”) means the multi-feature open end credit plan established under this Agreement. The operation of and terms applicable to Your Account are governed by: (i) this Agreement; (ii) any document labeled “Additional Disclosure – Federal Truth-In-Lending Act” accompanying this Agreement or provided in the future; (iii) any Advance Request provided concurrently with an advance under this Agreement; and (iv) each loan proceeds check We issue to You or on Your behalf, all of which are collectively incorporated into and integrated as part of this Agreement. Oral agreements are not enforceable and any oral statement by a Credit Union officer or employee is not to be construed as part of this Agreement. This Agreement may only be modified in writing. If this is a joint Account, read singular pronouns in the plural.

You, as the Member, under a Credit Line Account ("Account"), understand that the following Federal Disclosure Statement and the terms and conditions found herein constitute Our Agreement with You. Your Account may be accessible through a variety of means which could include advance request forms, vouchers, checks, charge slips,  ATM Cards, wire transfers, direct transfers and/or wire transfers to specific payees identified by You, direct transfers to Your Share/Share Draft or other Credit Union account and the like. Regardless of the access means, You promise to pay Us all amounts charged to Your Account by You or by any user who has access to Your Account, with actual, apparent or implied authority for use of Your Account, including Finance Charges and other fees or charges described herein.

FEATURE CATEGORIES. Your Account has Feature Categories which may include Personal Line of Credit (including Overdraft Protection), Personal and Personal Property Secured (a label to reference certain Feature Categories secured by personal property described below and/or on the separate Advance Request).

* The Daily Periodic Rates and corresponding Annual Percentage Rates set forth above reflect a range of rates that may apply, subject to Our underwriting guidelines. The specific Daily Periodic Rate and corresponding Annual Percentage Rate that will apply to each related Feature Category of Your Account will be based on Your credit experience, and will be disclosed to You on the separate Advance Request, provided to You at the time You establish such Feature Category. If You receive the Advance Request after the time of Your initial advance, You may cancel or otherwise rescind, the Feature Category evidenced by such Advance Request, by providing Us with written notice of Your intent to do so along with the return of all funds advanced within three calendar days of the advance. Your negotiation of any loan proceeds check or use of the funds advanced constitutes Your acceptance of the terms, and waiver of Your right to cancel or rescind.

ADVANCES.  Whenever You request a transaction, We may require You to prove Your identity. Advances made on Your Account will be processed according to the instructions You give Us (such as by wire transfer, direct transfer to Your Credit Union account or by other such means) and You authorize Us to do this, or We may draw a draft or check made payable to You and mail it to You. When the amount advanced appears on a subsequent statement, that will be conclusive evidence of Your advance request unless You notify Us that You disagree with any such item appearing on Your periodic statement according to the provision of this Agreement titled "YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE - THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT YOUR RIGHTS AND OUR RESPONSIBILITIES UNDER THE FAIR CREDIT BILLING ACT - NOTIFY US IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR STATEMENT". You understand that all advances are subject to Our prior approval and, in particular, whether or not any specific secured advance request is approved may be, in part, determined by how much equity You have or will have in the shares and/or Collateral offered
as security.

SECURITY.  For valuable consideration, You grant Us a security interest under the Uniform Commercial Code in all Collateral (other than household goods or any dwelling) given as security under this Agreement and described in any particular Advance Request, and acknowledge that such Collateral will secure all amounts You owe Us under this Agreement and any other obligations You may owe Us, both now and in the future. You further acknowledge that such security interest is intended to cover all of Your liabilities owed to the Credit Union, whether they have arisen in the past or may arise in the future, and regardless of form. That such liabilities include, but are not strictly limited to, loans for consumer purposes, purchase money or non-purchase money credit, liability created under any promissory notes, credit card accounts, open-end or revolving accounts, and overdrafts, whether such liability is individual or joint, absolute or contingent, primary or secondary. Collateral securing this Agreement will secure any and all advances, extensions, renewals, or modifications thereof including any other obligations You owe Us.

Whether additional security will be required depends on the type of advance You request. If You request an advance under a Feature Category which describes personal property, that property, including the proceeds of the sale of such property, must also be given as Collateral. For example, a Feature Category called "New Car Advances" means the security will be a new car. The fact that we are acquiring a security interest in certain Collateral or Shares will be disclosed in the Advance Request form related to any initial secured advance. You will be provided a copy of that form at the time You receive the initial advance for any secured Feature Category.

Except for Our security interest, any Collateral pledged as security for Your Account is owned free and clear from any liens, adverse claims, security interests or encumbrances. Without Our express written consent, no other liens, security interests or encumbrances will be allowed to attach to the Collateral. You agree to inform Us immediately if the Collateral is to be moved from the address We have on file for You or at such other address at which You have informed the Credit Union the Collateral is now located. The Collateral will not be sold or otherwise transferred and at all times the Collateral will be kept in good repair. The Collateral shall not be used for any unlawful purpose. We shall receive Your full cooperation in obtaining everything that We require to place and/or maintain Our security interest and/or lien in the Collateral. The Credit Union may examine and inspect the Collateral at any time wherever located. All taxes or assessments on the Collateral shall be paid as they come due, and if not paid, the Credit Union may pay them and shall be entitled to reimbursement or, alternatively, to add any amount so paid to the unpaid balance of the Feature Category of Your Account under which such Collateral is pledged, subject to the applicable Daily Periodic Rate, (and increase Your Minimum Monthly Payment to the amount necessary to repay such amount(s) by the end of the scheduled payoff period).

You acknowledge that You own any shares and/or Collateral pledged as security and that there are no other liens against them other than Ours. You agree to perform all acts which are necessary to make Our security interest in the shares and/or Collateral being pledged enforceable.

STATUTORY LIEN ON SHARES. To secure all transactions under this Agreement in either joint or individual Accounts, We have the right to impress and enforce a statutory lien against Your shares on deposit with Us (other than those deposits established under a governmental approved tax deferral plan such as an IRA or KEOGH Account), and any dividends or interest due or to become due to You from Us to the extent that You owe on any unpaid balance on Your Account and We may enforce Our right to do so without further notice to You. Additionally, You agree that We may set-off any mutual indebtedness.

LINE OF CREDIT LIMITS. You will be notified of each specific Credit Limit for each Feature Category for which You are approved. Unless You are in default, any Credit Limits established for You will generally be self-replenishing as You make payments.

You will keep Your unpaid balance within Your Credit Limit set by Us, and You will pay any amount over Your Credit Limit on Our demand whether or not We authorize the advances which caused You to exceed Your Credit Limit. Even if Your unpaid balance is less than Your Credit Limit, You will have no credit available during any time that any aspect of Your Account is in default.

JOINT ACCOUNTS. Each Member will be responsible, jointly and severally, for the repayment of any amounts owed. If any Account access device, such as a Personal Identification Number (PIN) is requested and approved, You understand that any such Account access device(s) will be mailed only to the primary Member at the address that We have on file for You. We may refuse to follow any instructions which run counter to this provision.

MINIMUM MONTHLY PAYMENTS (PAYMENT SCHEDULE).   Though You need only pay the Minimum Monthly Payments, You understand that You have the right to repay at any time without penalty. You also understand that You will only be charged periodic Finance Charges to the date You repay Your entire balance. You may make larger payments without penalty. Any partial payment or prepayment will not delay

Your next scheduled payment. All payments to Us must be in lawful money of the United States. We may apply each payment to whichever Feature Category We wish. For all Feature Categories, payments will be applied first to any Late Charges owing, then to the Finance Charge due, then to the outstanding principal balance.

Any unpaid portion of the Finance Charge will be paid by subsequent payments and will not be added to Your principal balance. You understand that any delay in the repayment of Your unpaid balance will increase Your periodic Finance Charges and any acceleration in the repayment of Your unpaid balance will decrease Your periodic Finance Charges.

Personal Line of Credit Minimum Monthly Payments will be due on the 15th day of each month in which a payment is due. You understand that for: (a) advances taken during periods in which no balance is outstanding, Your first payment will be due in the month immediately following the date of Your advance; and (b) subsequent advance(s) which result in a change to Your Minimum Monthly Payment amount, such change will be effective immediately. Your Minimum Monthly Payments will be established at the time of each change in Your unpaid principal balance at an amount equal to 2.00% of Your then unpaid balance, subject to a minimum of $40.00 or Your balance.

Personal Property Secured and Personal Minimum Monthly Payments will be disclosed to You at the time of each advance on a separate page titled "Credit Line Account Advance Request and Security Agreement".

LATE CHARGE.  If Your payment is more than 15 days late, You will be charged 5.00% of the payment due.

FINANCE CHARGES. A Finance Charge will be assessed on any unpaid principal balance for each Feature Category of Your Account for the period such balance is outstanding. Balances change each time advances are made, payments are made or credits given under any Feature Category. The Finance Charge begins to accrue on the date of each advance and there is no grace period.

ANNUAL PERCENTAGE RATE (NON-PERFECTION OF SECURITY INTEREST).   If, for any reason, We are unable to perfect Our security interest in any Collateral pledged under this Agreement the Daily Periodic Rate applicable to Your entire balance existing at that time and in the future will increase to the rate in effect for personal loans (and Your Minimum Monthly Payment will increase to the amount necessary to repay such amount(s) by the end of the scheduled payoff period), subject to the notice requirements of the Federal Truth-In-Lending Act.

DEFAULT ANNUAL PERCENTAGE RATE.  If any Feature Category Account is ever in default, the Daily Periodic Rate applicable to Your entire balance existing at time and in the future will immediately increase to .0493% (corresponding ANNUAL PERCENTAGE RATE 18.00%).

HOW TO DETERMINE THE FINANCE CHARGE.   For all Feature Categories, the Finance Charge is determined by multiplying Your unpaid balance at the close of each day in the billing cycle being accounted for by the applicable Daily Periodic Rate. The unpaid balance is the balance each day after payments, credits, and unpaid Finance Charges to that balance have been subtracted and any new advances, insurance premiums or other charges have been added to Your unpaid balance. These daily Finance Charges are then added together and the sum is the amount of the Finance Charge owed for the Feature Category being accounted for. The total Finance Charge You owe on Your Account for each billing cycle is the sum of all the Finance Charges due for all applicable Feature Categories.

PERSONAL LINE OF CREDIT VARIABLE RATE.   Personal Line of Credit advances are subject to a Variable Rate which is based on the highest Prime Rate, as published in the Money Rates section of The Wall Street Journal, in effect on the last day of each month ("Index") plus Our Margin. The Index plus the Margin equals the Interest Rate. Changes in the Index will cause changes in the Interest Rate on the first day of the month immediately following any such change in the Index. Increases or decreases in the Interest Rate will cause like increases or decreases in the Finance Charge and will affect the number of Your regularly scheduled payments. Your Interest Rate will never be greater than 18.00% nor less than an amount equal to Your Margin and will apply to Your remaining principal balance.

OVERDRAFT PROTECTION. We may transfer funds in the amount necessary (or in such increments as We may from time to time determine) to Your share draft account by an advance on Your Personal Line of Credit Feature Category, subject to this provision, to clear any Overdraft on Your share draft account. Whether or not such transfers occur will be controlled by this Agreement. In any event, You hold Us harmless for any and all liability which might otherwise arise if the transfer does not occur. Overdraft Protection automatically ceases if this Agreement is ever cancelled or terminated or Your Account is in default.

PERIODIC STATEMENTS. On a regular basis, You will receive a statement showing all transactions on Your Account including amounts paid and borrowed since Your last statement. We will provide You a statement each month in which there is a debit or credit balance or when a Finance Charge is imposed. We need not send You a statement if We feel Your Account is uncollectible or if We have started collection proceedings against You because You defaulted. EACH STATEMENT IS DEEMED TO BE A CORRECT STATEMENT OF ACCOUNT UNLESS YOU ESTABLISH A BILLING ERROR PURSUANT TO THE FEDERAL TRUTH-IN-LENDING ACT.

DEFAULT.  You will be in default if:
(a) You do not make any payment or perform any obligation under this Agreement, or any other agreement that You may have with Us; or
(b) You should die, become involved in any insolvency, receivership or custodial proceeding brought by or against You; or
(c) You have made a false or misleading statement in Your credit application and/or in Your representations to Us while You owe money on Your Account; or
(d) A judgment or tax lien should be filed against You or any attachment or garnishment should be issued against any of Your property or rights, specifically including anyone starting an action or proceeding to seize any of Your funds on deposit with Us; and/or
(e) We should, in good faith, believe Your ability to repay Your indebtedness hereunder is or soon will be impaired, time being of the very essence.

Upon any occurrence of default, We may, to the extent permitted by law, cancel Your rights under this Agreement, require the return of all access devices, declare the entire balance of every Feature Category of Your Account immediately due and payable, and set-off any money owed Us in accordance with the terms of this Agreement, without prior notice or demand. If Your entire Account balance is not then paid immediately upon default, and if permitted by law, the Collateral shall be voluntarily surrendered to the Credit Union at a time and place acceptable to it. If this is not done, to the extent permitted by law, the Credit Union may enter the premises where the Collateral is located and take possession of it and the Credit Union may assert the defense of a superior right of possession as the holder of a security interest to any offense of alleged wrongful taking and conversion. The Credit Union may sell or dispose of the Collateral in any manner permitted by law, and any resulting deficiency on Your Account shall be immediately paid to the Credit Union.

COLLECTION COSTS. In the event collection efforts are required to obtain payment on this Account, to the extent permitted by law, You agree to pay all court costs, private process server fees, investigation fees or other costs incurred in collection and reasonable attorney fees incurred in the course of collecting any amounts owed under this Agreement or in the recovery of any Collateral.

ENFORCEMENT.  We do not lose Our rights under this or any related agreement if We delay enforcing them. We can accept late payments, partial payments or any other payments, even if they are marked "paid in full" without losing any of Our rights under this Agreement. If any provision of this or any related agreement is determined to be unenforceable or invalid, all other provisions remain in full force and effect.

NOTIFICATION OF ADDRESS CHANGE.   You will notify Us promptly if You move or otherwise have a change of address.

CHANGE IN TERMS. We may change the terms of this Agreement by mailing or delivering to You written notice of the changes as prescribed by the Federal Truth-In-Lending Act. To the extent permitted by law, the right to change the terms of this Agreement includes, but is not limited to, the right to change the periodic rate applicable to Your unpaid balance and/or future advances.

PROPERTY INSURANCE. You agree to insure the Collateral described in any Credit Line Account Advance Request and Security Agreement against fire and other hazards, with a policy as specified by Us, in the amount and for the period required by Us, with Us named as loss payee for Our protection. You may purchase the insurance from any insurer You want, but We have the right not to accept the insurer for reasonable cause. If You do not get or keep such insurance, We may (but are under no obligation to do so) obtain it and add the costs to the principal balance of the related Feature Category of Your Account and You agree to pay for it by increasing Your Minimum Monthly Payment to the amount necessary to repay such amount not later than the earlier of 12 months from the date such insurance is obtained, or the end of the payoff period, or We may declare Your Account in default.

You agree to deliver satisfactory evidence of the insurance policy to Us within any time period specified in any notice from Us or on Our behalf.

CREDIT INSURANCE. Credit insurance is not required for any extension of credit under this Agreement. However, You may purchase any credit insurance available through Us and have the premiums added to Your outstanding balance. If You elect to do so, You will be given the necessary disclosures and documents separately.

CONSENT TO AGREEMENT. You acknowledge receipt of a copy of this Agreement. By signing the application; or by using Your Account or any Account access device; or by authorizing another to use Your Account, You agree to and accept its terms.

UPDATING AND DISCLOSING FINANCIAL INFORMATION.   You will provide facts to up-date information contained in Your original Account application or other financial information related to You, at Our request. You also agree that We may, from time to time, as We deem necessary, make inquiries pertaining to Your employment, credit standing and financial responsibility in accordance with applicable laws and regulations. You further agree that We may give information about the status and payment history of Your Account to consumer credit reporting agencies, a prospective employer or insurer, or a state or federal licensing agency having any apparent legitimate business need for such information.

TERMINATION.  Either You or We may cancel Your Account or any particular Feature Category of Your Account, at any time, whether or not You are in default. You will, in any case, remain liable to pay any unpaid balances according to the terms of Your Account.

GOVERNING LAW.  This Agreement is controlled and governed by the laws of the Commonwealth of Pennsylvania except to the extent that such laws are inconsistent with controlling federal law.

This notice contains important information about Your rights and Our responsibilities under the Fair Credit Billing Act.

If You think Your statement is wrong, or if You need more information about a transaction on Your statement, write Us on a separate sheet, at Our address shown in this Agreement. Write to Us as soon as possible. We must hear from You no later than 60 days after We sent You the first statement on which the error or problem appeared. You can telephone Us, but doing so will not preserve Your rights.
In Your letter, give Us the following information:
-Your Name and Account number.
-Dollar amount of the suspected error.
-Describe the error and explain, if You can, why You believe there is an error. If You need more information, describe the item You are not sure about.

If You have authorized Us to pay Your bill automatically from Your share or share draft account, You can stop the payment on any amount You think is wrong. To stop the payment, Your letter must reach Us 3 business days before the automatic payment is scheduled to occur.

We must acknowledge Your letter within 30 days, unless We have corrected the error by then. Within 90 days, We must either correct the error or explain why We believe the statement is correct.

After We receive Your letter, We cannot try to collect any amount You question, or report You as delinquent. We can continue to bill You for the amount You question, including Finance Charges, and We can apply any unpaid amount against Your Credit Limit. You do not have to pay any questioned amount while We are investigating, but You are still obligated to pay the parts of Your statement that are not in question.

If We find that We made a mistake on Your statement, You will not have to pay any Finance Charges related to any questioned amount. If We didn't make a mistake, You may have to pay Finance Charges, and You will have to make up any missed payments on the questioned amount. In either case, We will send You a statement of the amount You owe and the date that it is due.

If You fail to pay the amount that We think You owe, We may report You as delinquent. However, if Our explanation does not satisfy You and You write to Us within 10 days telling Us that You still refuse to pay, We must tell anyone We reported You to that You have a question about Your statement and, We must tell You the name of anyone We reported You to. We must tell anyone We reported You to that the matter has been settled between Us when it finally is.

If We don't follow these rules, We can't collect the first $50 of the questioned amount, even if Your statement is correct.

Copyright Oak Tree Business Systems, Inc., 2002-2006.      All Rights Reserved.         OTBS 016 WebFRAK (8/06)