Home Equity Disclosure Booklet - Liberty Bank

6. Our Fees and Charges: In order to openand maintain an account, you must pay uscertain fees and charges.(a) Annual Fee: 50.00 due each year of theDraw Period beginning with the 12th billingcycle.(b) If, at your request, we terminate theAccount and release the Mortgage on orbefore the second anniversary of the Date ofthis Agreement, you agree to pay us an earlytermination fee equal to Five Hundred Dollars( 500). This early termination fee does notapply to the HELOC up to 24,999 program orthe Good Neighbor Home Equity Line of Credit(c) Homeowner’s and/or Flood Insurance: Youmust carry insurance on the property thatsecures the account.7. Tax Deductibility: You should consult a taxadvisor regarding the deductibility of interestand charges under the account.8. Variable-Rate Feature: The account has avariable-rate feature, and the annualpercentage rate (corresponding to theperiodic rate) and the minimum monthlypayment can change as a result.Page 8 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDERThe annual percentage rate includes onlyinterest and no other costs.The annual percentage rate is based on thevalue of an index. The index is the ratepublished in the Wall Street Journal, EasternEdition, under the heading “Money Rates” andshown as “prime rate” or “base rate” on“corporate loans posted by at least 75% of thenation’s 30 largest banks,” or similar languageused by the Journal for that index. If morethan one rate is shown, we use the highestrate.Ask us for the current index value andannual percentage rate. After you open anaccount, rate information will be provided onperiodic billing statements that we send you.Please see the accompanying Supplementto these Important Terms for importantadditional information about our Home EquityLine of Credit Account.9. Definitions: “We,” “us” and “our” refer toLiberty Bank. “You” and “your” refer to eachperson who signs the “agreement.” The“agreement” is the document that creates theaccount. “Your home” refers to the dwellingsecuring the account without regard to whoowns it.

Supplement to Important Terms of our Home Equity CreditLine AccountThis supplement contains important information about our Home Equity Credit Line Accounts. Pleaseread this supplement carefully and keep a copy for your records.1. Variable-Rate Feature: Liberty Bank offersthree different types of Home Equity Credit LineAccounts, as follows: HELOC up to 24,999 Program: We offercredit limits from 10,000 to 24,999 with amonthly variable-rate feature where the AnnualPercentage Rate is adjusted each Billing Cycleto equal the index described in theaccompanying “Important Terms of ourHomeEquityCreditLineAccount”(“Important Terms”) plus a margin. Ask usfor the amount of our current margin.We sometimes refer to this Home Equity CreditLine program in this Supplement as the“HELOC up to 24,999 Program.” Under thisHELOC up to 24,999 Program, your AnnualPercentage Rate (corresponding to the periodicrate) and minimum monthly payment maychange once each Billing Cycle, as the value ofthe index changes. Liberty Home Equity Line Program: Weoffer credit limits from 25,000 to 500,000with a monthly variable-rate feature where theAnnual Percentage Rate is adjusted each BillingCycle to equal the index described in theaccompanying “Important Terms” minus amargin. We sometimes refer to this HomeEquity Credit Line program in this Supplementas the “Liberty Home Equity Line Program.”Ask us for the amount of the margin that wecurrently deduct from the index under thisLiberty Home Equity Line program. Under thisLiberty Home Equity Line program, your AnnualPercentage Rate (corresponding to the periodicrate) and minimum monthly payment maychange once each Billing Cycle, as the value ofthe index changes. Good Neighbor Home Equity Line ofCredit: We offer credit limits from 1,000 to 10,000 with a monthly variable-rate featurewhere the Annual Percentage Rate is adjustedeach Billing Cycle to equal the index describedin the accompanying “Important Terms” withno added margin. We sometimes refer to thisHome Equity Credit Line program in thisSupplement as the “Good Neighbor HomeEquity Line of Credit Program.” Under thisLiberty Home Equity Line of Credit program,your Annual Percentage Rate (corresponding toPage 9 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDERthe periodic rate) and minimum monthlypayment may change once each Billing Cycle,as the value of the index changes.2. Minimum Interest Rate for all programs:Under each of the three Home Equity Credit Lineprograms described above, the ANNUALPERCENTAGE RATE cannot decrease to lessthan 3.00%. (We call this the “lifetime floor.”) Maximum interest rate for all programs:Under each of the three Home Equity Credit Lineprograms described above, the ANNUALPERCENTAGE RATE cannot increase to morethan 18%. (We call this the “lifetime cap.”)Apart from this “lifetime cap,” and apart fromthe “lifetime floor”, there is no limit on theamount by which the rate can change duringany one-billing cycle.3. Additional Information about theCombined Loan-to-Value: Under the HELOCup to 24,999 Program and the Liberty HomeEquity Line Program described above, the totalmaximum combined loan-to-value (“CLTV”)based on the estimated market value of yourhome as of the date we open the account(taking into account any mortgage loan thatmay be ahead of our Home Equity Line ofCredit mortgage and also the Home Equity Lineof Credit limit) is as follows: Owner Occupied Primary Residence - CLTVbetween 80% to 65% dependent on totaloutstanding liens and FICO score. Ask usfor more details.Owner Occupied Seasonal/Second Home –CLTV between 80% - to 60% dependent ontotal outstanding liens and FICO score.Ask us for more details.Under the Good Neighbor Home Equity LineProgram described above, the total maximumcombined loan-to-value (“CLTV”) based on theestimated market value of your home as of thedate we open the account (taking into accountany mortgage loan that may be ahead of ourGood Neighbor Home Equity Line of Credit) is105%.

Maximum CLTV’s will apply based upon if thefirst lien is with another lender and the totalcombined First Mortgage balance and proposedHome Equity Line of Credit limit. Ask us formore details.4. Minimum Payment Examples:HELOC up to 24,999 Program If you tookone single 10,000 advance at the beginning ofthe Draw Period, at an ANNUAL PERCENTAGERATE of4.50% (the index value as of September 1,2021 plus a margin of 1.25 percentage point1),you would make:118 minimum payments of 36.99 eachduring the Draw Period; and242 minimum payments ranging from 78.31 to 41.47 during the Final Period.Minimum Payment Examples:Liberty Home Equity Line program: Ifyou took one single 10,000 advance at thebeginning of the Draw Period, at an ANNUALPERCENTAGE RATE of 2.75% (the index valueas of September 1, 2021 minus a margin of .50percentage points3 you would make:118 minimum payments of 22.60 each duringthe Draw Period; and242 minimum payments ranging from 63.92 to 41.41 during the Final PeriodGood Neighbor Home Equity Line Program:If you took one single 10,000 advance at thebeginning of the Draw Period, at an ANNUALPERCENTAGE RATE of3.25% (the index value as of September 1,2021 plus a margin of 0), you would make:118 minimum payments of 26.71 eachduring the Draw Period; and242 minimum payments ranging from 68.03 to 41.43 during the Final PeriodPage 10 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDER5. Maximum Payment Examples: If you took one single 10,000 advance at thebeginning of the Draw Period, at the maximum18% ANNUAL PERCENTAGE RATE, theminimum monthly payment would be 147.95during the Draw Period. If you had anoutstanding balance of 10,000 at thebeginning of the Final Period, at the maximum18% ANNUAL PERCENTAGE RATE, theminimum monthly payment at the beginning ofthe Final Period would be 189.27.Themaximum18%ANNUALPERCENTAGE RATE could be reached as earlyas the start of the second Billing Cycle of theDraw Period and could also be reached as earlyas the start of the Final Period.6. Historical Example: The table on thefollowing page shows how the AnnualPercentage Rate and minimum monthlypayments would have changed based onchanges in the index over the last 15 years, foreach of our three different Home Equity CreditLine programs. The index values are from theWall Street Journal most recently published onthe last business day of June of each year. Whileonly one payment amount per year is shown,payments would have varied slightly duringeach year of the Final Period. Years 2007through 2016 show the Annual Percentage Rateand the minimum monthly payments during theDraw Period. Years 2017 through 2021 show theAnnual Percentage Rate and one of theminimum monthly payments during the first fiveyears of the Final Period.For the three loan programs, the tableassumes one single 10,000 advance takenat the beginning of the Draw Period and thatthrough 2016 the balance remained at exactly 10,000. The table also assumes that noadditional loan advances were taken, that onlythe minimum payments were made, and thatthe index and Annual Percentage Rate remainedconstant during each year. The table does notnecessarily indicate how the index or yourpayments will change in the future.

FinalPeriod (a)HELOC up to 24,999ProgramMinimumAnnualMonthlyPercentag Paymente Rate4(a)Liberty Home EquityLine ProgramMinimumAnnualMonthlyPercentag Paymene Rate5t (a)Good NeighborHome Equity LineProgramMinimumAnnualMonthlyPercentag Paymene Rate6t 259.506.254.504.504.50 78.08 51.37 36.99 36.99 36.998.004.753.003.003.00 65.75 39.04 24.66 24.66 24.668.255.003.253.253.25 67.81 41.10 26.71 26.71 26.7120123.254.50 36.993.00 24.663.25 26.7120133.254.50 36.993.00 24.663.25 26.7120143.254.50 36.993.00 24.663.25 26.71201520163.253.504.504.75 36.99 39.043.003.25 24.66 26.713.253.50 26.71 28.7720174.255.50 85.974.00 73.794.25 75.8220185.005.506.256.75 89.514.755.25 77.945.005.50 79.873.253.254.504.50201920202021 90.61 72.35 70.513.003.00 79.66 62.01 60.783.253.25 81.48 63.73 62.40(a)This table does not show the remaining payments over the last 15 years of the term of theaccount which would result in the repayment of the entire principal balance.This is a margin we have used recently in the HELOC up to 24,999 program. Ask us for the amountof our current margin.2This is a regular Liberty Home Equity Line margin we have used recently in the Liberty Home EquityLine program. Ask us for the amount of the margin we currently deduct from the Index under the LibertyHome Equity Line program.3This margin reflects the lower margin that may be available with this product. Ask us for the Amountof the current margin.4This reflects a 1.25% margin we have used recently in the HELOC up to 24,999 Program. Ask us forthe amount of our current margin.5This reflects a (-.25%) regular Liberty Home Equity Line margin we have used recently in the LibertyHome Equity Line program. Ask us for the amount of the margin we currently deduct from the indexunder the Liberty Home Equity Line program.6This is a margin we have used recently in the Good Neighbor Home Equity Line Program. Ask us forthe amount of our current margin.1Page 11 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDER

Important Terms of our SoLo Home Equity Credit LineAccount(Including the accompanying Supplement to these Important Terms)This disclosure contains important informationabout our SoLo Home Equity Credit LineAccount. (For definitions of some of the termsused, see paragraph 10 below.) You should readthis disclosure carefully and keep a copy foryour records.1. Availability of Terms: All of the termsdescribed below are subject to change by us.If any of these terms change (other than theannual percentage rate) and you decide, as aresult, not to enter into an agreement with us,you are entitled to a refund of any fees youpaid to us or anyone else in connection withyour application for the account.2. Security Interest: We will take a mortgageon your home. You could lose your home ifyou do not meet the obligations in youragreement with us.3. Possible Actions:(a) We can terminate your account, andrequire you to pay us the entire outstandingbalance in one payment (“accelerate”), andcharge you certain fees if:Youengageinfraudormaterialmisrepresentation in connection with theaccount.You do not meet the repayment terms.Your action or inaction adversely affects thecollateral for the account or our rights in thecollateral.Each of these is called an “event of default.”(b) We can refuse to make additionalextensions of credit or reduce your credit limitif:The value of your home securing theaccount declines significantly below itsappraised value for purposes of the account.We reasonably believe you will not be ableto meet the repayment requirements, due toa material change in your financialcircumstances.You are in default of a material obligation inthe agreement or an “event of default” exists.Government action prevents us fromimposing the annual percentage rate providedfor, or impairs our security interest such thatthe value of the interest is less than 120percent of the credit limit.Page 12 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDERA regulatory agency has notified us thatcontinued advances would constitute anunsafe and unsound business practice.The maximum annual percentage rate isreached.(c) The initial agreement also permits us tomake certain changes to the terms of theagreement upon the occurrence of specifiedevents.4. Draw Period: You can obtain creditadvances for 9 years and 10 months. This iscalled the “Draw Period.” The “Draw Period”does not include the “Final Period” describedin paragraph 5 below.5. Payments: Payments will be due monthlyunder your agreement. The way we calculateyour minimum payment will depend on howlong you have had the account as describedbelow. We calculate how long you have had theaccount based on the number of Billing Cyclesthat have occurred. A “Billing Cycle” is theregular time period during which we look at youraccount activity for billing purposes (generallythis is approximately one month).(a) Draw Period. Beginning with your firstBilling Cycle and ending with your onehundred eighteenth (118th) Billing Cycle (the“Draw Period’) (approximately the first 10years of the account) the minimum paymenteach month will equal interest and fees shownon the billing statement, plus any unpaidminimum payments from prior billingstatements. This minimum payment will notrepay any principal that is outstanding onyour account.(b) Final Period. Beginning with your onehundred-nineteenth (119th) Billing Cycle andfor approximately 20 years and 2 monthsafter that (the “Final Period’), the minimumpayment each month will equal (i) one twohundred-forty-second (1/242nd) of theprincipal at the close of the one-hundredeighteenth (118th) Billing Cycle, (ii) plusinterest and fees shown on the billingstatement, plus (iii) any unpaid minimumpayments from prior billing statements.Because no advances are allowed during thisFinal Period, this minimum payment will repaythe principal that is outstanding on youraccount by the end of the Final Period.

6. Our Fees and Charges: In order to openand maintain an account, you must pay uscertain fees and charges.(a) Annual Fee: 50.00 due each year of theDraw Period beginning with the 12th billingcycle.(b) If, at your request, we terminate theAccount and release the Mortgage on orbefore the second anniversary of the Date ofthis Agreement, you agree to pay us an earlytermination fee equal to Five Hundred Dollars( 500).(c) Homeowner’s and/or Flood Insurance: Youmust carry insurance on the property thatsecures the account.The ANNUAL PERCENTAGE RATE for thefirst 12 full billing cycles is 2.49% and is notbased on the index and margin used to makelater rate adjustments.7. Tax Deductibility: You should consult a taxadvisor regarding the deductibility of interestand charges under the account.Ask us for the current index value andannual percentage rate. After you open anaccount, rate information will be provided onperiodic billing statements that we send you.8. Variable-Rate Feature: The account has avariable-rate feature, and the annualpercentage rate (corresponding to theperiodic rate) and the minimum monthlypayment can change as a result.The annual percentage rate includes onlyinterest and no other costs.Page 13 of 24NMLS #459028Publication Date 6/1/22MEMBER FDICEQUAL HOUSING LENDERThe annual percentage rate after the 12month introductory rate, is based on the valueof an index. The index is the rate published inthe Wall Street Journal, Eastern Edition, underthe heading “Money Rates” and shown as“prime rate” or “base rate” on “corporateloans posted by at least 75% of the nation’s30 largest banks,” or similar language used bythe Journal for that index. If more than onerate is shown, we use the highest rate.Please see the accompanying Supplementto these Important Terms for importantadditional information about our SoLo HomeEquity Credit Line Account.9. Definitions: “We,” “us” and “our” refer toLiberty Bank. “You” and “your” refer to eachperson who signs the “agreement.” The“agreement” is the document that creates theaccount. “Your home” refers to the dwellingsecuring the account without regard to whoowns it.

Supplement to Important Terms of our SoLo Home EquityCredit Line AccountThis supplement contains important information about our SoLo Home Equity Credit Line Account.Please read this supplement carefully and keep a copy for your records.1. Special program features:Rate Discount:ANNUAL PERCENTAGERATE for the first 12 full billing cycles will befixed at 2.49%.2. Variable-Rate Feature: SoLo HELOC Program: We offer creditlimits from 50,000 to 500,000 with a monthlyvariable-rate feature where the AnnualPercentage Rate is adjusted each Billing Cycleto equal the index described in theaccompanying “Important Terms” minus amargin.Ask us for the amount of themargin that we currently subtract from theindex under this program. Under thisprogram, your Annual Percentage Rate(corresponding to the periodic rate) andminimum monthly payment may change onceeach Billing Cycle, as the value of the ory rate discount the ANNUALPERCENTAGE RATE cannot decrease to lessthan 3.00%. (We call this the “lifetime floor.”)Maximum Interest Rate: The ANNUALPERCENTAGE RATE cannot increase to morethan 18%. (We call this the “lifetime cap.”)Apart from this “lifetime cap,” and apart fromthe “lifetime floor” there is no limit on theamount by which the rate can change duringany one billing cycle.3. Additional Information about theCombined Loan-to-Value:The total maximum combined loan-to-value(“CLTV”) based on the estimated market valueof your

Home Equity Line of Credit or your Fixed Rate Home Equity Loan before the second anniversary of the date of the loan note. The Early Termination Fee only applies to loan amounts of 25,000 or greater. Annual Fee of 50.00 due each year of the Draw Period beginning with the 12 th billing cycle applies to all our HELOC products including the .