COMMON SECURITY CERTIFICATE

         THIS COMMON SECURITY HAS NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE "SECURITIES  ACT"), OR ANY STATE SECURITIES LAWS OR ANY
OTHER  APPLICABLE  SECURITIES LAW. NEITHER THIS COMMON SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,  PLEDGED,
ENCUMBERED  OR  OTHERWISE  DISPOSED  OF IN THE ABSENCE OF SUCH  REGISTRATION  OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.



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This Certificate is not transferable except in compliance with Section 9.1(c) of
the Declaration.

                    Certificate Evidencing Common Securities

                                       of

                             Cascade Capital Trust I

                             ____% Common Securities
                 (liquidation amount $1,000 per Common Security)

     Cascade Capital Trust I, a statutory  business trust created under the laws
of the State of Delaware (the "Trust"),  hereby certifies that Cascade Financial
Corporation (the "Holder") is the registered  owner of 619 common  securities of
the Trust representing undivided beneficial interests in the assets of the Trust
designated  the ____% Common  Securities  (liquidation  amount $1,000 per Common
Security) (the "Common  Securities").  Subject to the terms of Section 9.1(c) of
the Declaration (as defined below),  the Common Securities are not transferable.
The designation, rights, privileges,  restrictions,  preferences and other terms
and provisions of the Common Securities  represented hereby are issued and shall
in all  respects  be subject  to the  provisions  of the  Amended  and  Restated
Declaration  of the Trust  dated as of  February  18,  2000,  as the same may be
amended from time to time (the "Declaration"),  including the designation of the
terms of the  Common  Securities  as set  forth  in Annex I to the  Declaration.
Capitalized  terms used but not defined herein shall have the meaning given them
in the  Declaration.  The Sponsor  will provide a copy of the  Declaration,  the
Common  Securities  Guarantee  and the  Indenture  (including  any  supplemental
indenture) to a Holder without  charge upon written  request to the Trust at its
principal place of business.

     Upon receipt of this  Certificate,  the Holder is bound by the  Declaration
and is entitled to the  benefits  thereunder  and to the  benefits of the Common
Securities Guarantee to the extent provided therein.

     By acceptance hereof, the Holder agrees to treat, for United States federal
income tax purposes, the Debentures as indebtedness and the Common Securities as
evidence of indirect beneficial ownership in the Debentures.

     IN WITNESS WHEREOF,  the Trust has executed this certificate this ___th day
of February, 2000.

                                                     CASCADE CAPITAL TRUST I


                                                     By:   _____________________
                                                           C.F. Safstrom
                                                          Administrative Trustee





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         Distributions  on each  Common  Security  will be  payable at a rate of
11.00%  per annum (the  "Coupon  Rate") of the  liquidation  amount of $1000 per
Common Security,  such rate being the rate of interest payable on the Debentures
to be held by the Property  Trustee.  Distributions in arrears for more than one
semi-annual  period will bear interest thereon  compounded  semi-annually at the
Coupon  Rate (to the  extent  permitted  by  applicable  law).  Pursuant  to the
Registration  Rights Agreement,  in certain limited  circumstances the Debenture
Issuer  will  be  required  to  pay  Liquidated   Damages  (as  defined  in  the
Registration  Rights  Agreement)  with  respect  to  the  Debentures.  The  term
"Distributions",  as used herein,  includes such cash  distributions and any and
all such interest and  Liquidated  Damages,  if any,  payable  unless  otherwise
stated.  A Distribution  is payable only to the extent that payments are made in
respect of the  Debentures  held by the  Property  Trustee and to the extent the
Property Trustee has funds legally available therefor.

         Distributions on the Common Securities will be cumulative,  will accrue
from the most  recent  date to which  Distributions  have  been  paid or,  if no
Distributions   have  been  paid,  from  March  1,  2000  and  will  be  payable
semi-annually  in  arrears,  on  March  1st  and  September  1st of  each  year,
commencing September 1, 2000, except as otherwise described below. Distributions
will be computed on the basis of a 360-day year of twelve 30-day months. As long
as no Event of Default has occurred and is continuing  under the Indenture,  the
Debenture Issuer has the right under the Indenture to defer payments of interest
by extending  the interest  payment  period at any time and from time to time on
the Debentures for a period not exceeding ten consecutive  calendar  semi-annual
periods,  including  the first such  semi-annual  period  during such  extension
period (each an "Extension Period"), provided that no Extension Period shall end
on a date other  than an  Interest  Payment  Date for the  Debentures  or extend
beyond the Maturity Date of the  Debentures.  As a consequence of such deferral,
Distributions will also be deferred.  Notwithstanding such deferral, semi-annual
Distributions  will continue to accumulate with interest  thereon (to the extent
permitted by  applicable  law, but not at a rate  exceeding the rate of interest
then accruing on the  Debentures)  at the Coupon Rate  compounded  semi-annually
during any such  Extension  Period.  Prior to the  termination  of any Extension
Period,  the Debenture  Issuer may further defer payments of interest by further
extending such Extension Period;  provided that such Extension Period,  together
with all such previous and further  extensions within such Extension Period, may
not (i)  exceed to ten  consecutive  semi-annual  periods,  including  the first
semi-annual  period during such Extension Period,  (ii) end on a date other than
an Interest  Payment Date for the Debentures or (iii) extend beyond the Maturity
Date of the  Debentures.  Payments of accrued  Distributions  will be payable to
Holders as they  appear on the books and records of the Trust on the record date
immediately  preceding the end of the Extension Period.  Upon the termination of
any  Extension  Period and the payment of all amounts  then due,  the  Debenture
Issuer may commence a new Extension Period, subject to the above requirements.

         Subject  to  the  receipt  by  the  Sponsor  of any  and  all  required
regulatory   approvals  and  to  certain  other  conditions  set  forth  in  the
Declaration and the Indenture, the Property Trustee may, at the direction of the
Sponsor,  at any  time  dissolve  the  Trust  and  cause  the  Debentures  to be
distributed  to the Holders of the  Securities in  liquidation  of the Trust or,
simultaneously with any redemption of the Debentures, cause a Like Amount of the
Securities to be redeemed by the Trust.

         The  Common   Securities   shall  be  redeemable  as  provided  in  the
Declaration.

         Under  certain  circumstances,  the rights of the holders of the Common
Securities  shall be  subordinate  to the rights of the  holders of the  Capital
Securities, as provided in the Declaration.