f. On the Maturity Date, the fmal payment under this Modification Agreement will be an amount

equal to (i) the unpaid balance of the New Principal Balance, plus (ii) all accrued and unpaid

interest on the New Principal Balance, plus (iii) any other amounts owed under the Loan

Documents.

g. The interest rates applicable to the Interest Bearing Principal Balance as set forth in this

Section 2 may be higher than the interest rate that would have applied under the Agreement.

h. As used in this Modification Agreement, the term "Billing Cycle" means the days between the

closing date for the last monthly statement sent to Borrower and the closing date for the

Borrower's current statement. Interest charged under this Modification Agreement will be

computed on an "average daily balance" basis. The "average daily balance" is calculated by

adding all the "daily balances" during the Billing Cycle and then dividing the total by the total

number of days in the Billing Cycle. The "daily balance" is calculated by taking the beginning

balance of the Interest Bearing Principal Balance each day and subtracting any payments, unpaid

interest, late charges, Return Check Fees and returned payment fees. Interest owed under this

Modification Agreement will be computed:

~ i. by multiplying the "average daily balance" for the Billing Cycle by 1112thof the

applicable interest rate set forth in Section 2(d) or Section 2(e) above.

D ii. by multiplying the "average daily balance" for the Billing Cycle by the number of days

in the Billing Cycle and multiplying the product by 1/36S

th (or 1/366th in a leap year) of

the applicable interest rate set forth in Section 2( d) or Section 2( e) above.

i. Monthly payments will be applied first to all unpaid interest on the Interest Bearing Principal

Balance, then to any unpaid late charges, Return Check Fees and returned payment fees (if

applicable under the Agreement) and then to the Interest Bearing Principal Balance. If Borrower

makes a partial prepayment of principal, the Lender may apply that partial prepayment to any

unpaid late charges, Return Check Fees and returned payment fees (if applicable under the

Agreement) and then to the Interest Bearing Principal Balance. To the extent that the principal

prepayment is equal to or exceeds the Interest Bearing Principal Balance, the prepayment will be

applied to Deferred Interest. Prepayments will not change the due dates or amounts of monthly

payments.

j. If Borrower elected the Automatic Payment Plan under the Agreement or authorized automatic

payment of the Agreement from a deposit account ("Automatic Payment Program"), the Borrower

may be required to sign a new authorization to continue the Automatic Payment Program once the

monthly payment changes under Section 2(d) and Section 2(e). If the Automatic Payment

Program is cancelled, that cancellation will not affect the interest rate required to be paid under

this Modification Agreement.

k. Borrower will be in default under this Modification Agreement if: (i) Borrower fails to make any

payment under Section 2 of this Modification Agreement when due; (ii) Borrower fails to keep

any of Borrower's agreements under Sections 1, 2 or 3 of this Modification Agreement; (iii)

Borrower has provided false or misleading information to Lender; or (iv) Borrower's action or

inaction adversely affects the Property or Lender's rights in the Property.

1. In the event of a default under the Loan Documents, as modified by this Modification Agreement,

interest will accrue on the unpaid amount of the New Principal Balance, including after the entire

balance is declared to be due in full, at the rate set forth in Section 2(d) or Section 2(e) as

applicable when the default occurred.

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Case: 1:12-cv-03130 Document #: 1-7 Filed: 04/27/12 Page 1 of 4 PageID #:41
m. If Borrower is in default, in addition to any other rights and remedies Lender has under law and

subject to any right Borrower may have to cure the default under applicable law, Lender may do

any of the following to the extent permitted by law: (a) require immediate payment of the entire

unpaid New Principal Balance in full without demand or notice, unless otherwise required by

applicable law and (b) recover all expenses related to retaking, holding, preparing for sale and

selling the Property and reasonable collection costs, attorneys' fees and legal expenses as

permitted by 11 U.S.C. 506 and any other applicable law.

n. Borrower's ability to obtain loans or Advances under the Agreement is permanently terminated.

o. If Borrower purchased credit insurance or the Line of Credit Protection Plan under the Agreement,

such credit insurance or Line of Credit Protection Plan is cancelled.

p. The terms in Section 2 will supersede any provisions to the contrary in the Loan Documents,

including, but not limited to, the provisions for a variable interest rate or determination of the

amount of any finance charge.

3. Additional Agreements. Borrower understands and agrees to the following:

a. All persons who signed the Loan Documents, or their authorized representative(s) have signed this

Modification Agreement, unless: (i) a borrower or co-borrower is deceased; (ii) the borrower and

co-borrower are divorced and the Property has been transferred to one spouse in the divorce

decree, the spouse who no longer has an interest in the Property need not sign this Modification

Agreement (although the non-signing spouse may continue to be held liable for the obligation

under the Loan Documents); or (iii) the Lender has waived this requirement in writing. Any

Borrower who signs this Modification Agreement but did not sign the Agreement is not personally

obligated to pay the sums secured by the Security Instrument 'as modified by this Modification

Agreement.

b. This Modification Agreement supersedes the terms of any modification, forbearance or workout

plan that the Borrower has previously entered into with Lender.

c. Except as expressly modified by this Modification Agreement, Borrower will comply with and is

bound by all covenants, agreements, and requirements of the Loan Documents.

d. The Loan Documents as modified by this Modification Agreement are duly valid, binding

agreements, enforceable in accordance with their terms and are hereby reaffirmed and remain in

full force and effect. Lender's rights include, but are not limited to, the right to charge late

charges, Return Check Fees or returned payment fees if and to the extent provided under the

Agreement. If Borrower's monthly statement contains a "billing rights statement," Borrower

agrees and understands that such statement is no longer applicable, and the terms and conditions

set out in such billing rights statement do not apply to this Modification Agreement.

e. Nothing in this Modification Agreement will be understood or construed as a satisfaction or

release, in whole or in part, of the obligations in the Loan Documents, or to satisfy or release the

Security Instrument, in whole or in part.

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f As of the Modification Effective Date, notwithstanding any other provision of the Loan

Documents, if all or any part of the Property or any interest in it is sold or transferred without

Lender's prior written consent, Lender may, at its option, require immediate payment in full of all

sums secured by the Security Instrument. However, Lender shall not exercise this option if

applicable law, rules or regulations prohibit the exercise of such option as of the date of such sale

or transfer. If Lender exercises this option, Lender shall give Borrower notice that all sums

secured by the Security Instrument are due in full. The notice will provide a period of not less

than 30 days from the date the notice is delivered or mailed within which Borrower must pay such

amount. If Borrower fails to pay the amount owed prior to the expiration of this period, Lender

may exercise any remedies permitted by the Security Instrument.

g. As of the Modification Effective Date, Borrower understands that Lender will only allow the

transfer and assumption of the Loan Documents, including this Modification Agreement, to a

transferee of the Property as permitted under the Garn St. Germain Act, 12 V.S.C. Section 1701j3. A buyer or transferee of the Property will not be permitted, urider any other circumstance, to

assume the Loan Documents including this Modification Agreement. Except as noted in this

Section 3(g), this Modification Agreement may not be assigned to, or assumed by, a buyer or

transferee of the Property.

h. Borrower will cooperate fully with Lender in obtaining any title endorsement(s), title insurance

product(s) and/or subordination agreement(s) that are necessary or required by the Lender's

procedures to ensure that the Security Instrument, as modified, retains the same lien position that

is in effect prior to the Modification Effective Date and/or is fully enforceable upon modification.

1. Borrower will execute and deliver such other documents as may be reasonably necessary to either:

(i) put into effect the terms and conditions of this Modification Agreement or (ii) correct the terms

and conditions of this Modification Agreement if an error is detected after the Modification

Effective Date. Borrower understands that a corrected Modification Agreement or letter agreement

containing the correction will be provided to Borrower for Borrower's signature. At Lender's

option, this Modification Agreement will be void and of no legal effect upon notice of such error.

If Borrower elects not to sign any such corrected Modification Agreement or letter agreement, the

terms of the original Loan Documents shall continue in full force and effect and such terms will

not be modified by this Modification Agreement.

j. Borrower is solely responsible for the payment of any federal, state and/or local taxes with respect

to any principal forgiveness, if provided in Section 10). Borrower understands, agrees and

acknowledges that Lender has not made any representations to the Borrower concerning the

taxability and/or non-taxable status of the any such principal forgiveness.

k. If any document related to the Loan Documents and/or this Modification Agreement is lost,

misplaced, misstated, inaccurately reflects the true terms and conditions of the loan as modified, or

is otherwise missing, Borrower will comply with the Lender's request to acknowledge, initial and

deliver to the Lender any documentation the Lender deems necessary (all such documents are the

"Documents"). Borrower agrees to deliver the Documents within ten (10) days after Borrower

receives the Lender's written request for such replacement.

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1. If Borrower consents to receiving calls as described in this section, please sign below:

Borrower consents to receiving calls, including calls using an automatic telephone dialing system

and/or an artificial or prerecorded voice, and text messages from Lender or any of its affiliates,

agents or third party representatives at any and all of Borrower's telephone numbers, including,

but not limited to, Borrower's wireless (mobile/cellular) number, or any cell phone number

Borrower may provide to Lender, for any purpose related to the Borrower's Account, including

servicing purposes and debt collection purposes, with respect to this Modification Agreement and

the Loan Documents, the Account related to the Loan Documents and any other account at Lender

or any of its affiliates. These calls and messages may incur access fees from Borrower's cellular

provider. Lender may monitor telephone calls with Borrower to assure quality service.

Borrower signature

Borrower signature

[SIGNATURE PAGES TO FOLLOW]

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