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**TABLE      OF CONTENTS**

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*bona fide*

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| Dated: | WILMINGTON                TRUST COMPANY, not in its individual capacity, but solely as Property                Trustee  By:           ________________________________Authorized                officer   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Harleysville                National Corporation,as                Depositor  By:           /s/                Paul D. Geraghty            Name:    Paul                D. GeraghtyTitle:       Chief                Executive Officer and President                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Wilmington                Trust Company, as Property Trustee  By:           /s/                W. Thomas Morris, II                                Name:    W. Thomas Morris, II                  Title:       Assistant Vice                President  | Wilmington                Trust Company, as Delaware Trustee   By:           /s/                W. Thomas Morris, II                                                                       Name:    W.                Thomas Morris, IITitle:       Assistant                Vice President  |
|    /s/                Paul D. Geraghty        Administrative                TrusteeName:                Paul D.                Geraghty                                                                                                                                                                                                                                                                            |    /s/                Michael B. High                                                                                   Administrative                TrusteeName:                Michael B.                High                                                                                                                                    |
|     /s/                George S. Rapp            Administrative                TrusteeName:                George S.                Rapp                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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| Certificate                Number  C-1  |   | 696                Common Securities  |
|--------------------------------------------------------|--------|--------------------------------------------|

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| Certificate                Number  P-1  |   | 22,500                Preferred Securities$22,500,000                Aggregate Liquidation Amount  |
|--------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|

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| Dated:  August                22, 2007  |   Wilmington                Trust Company, not in its individual capacity, but solely as Property                Trustee  By:        ____________________________Authorized                officer  |
|--------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Tier                1 Risk Weighted Assets                               |  %                               |
|--------------------------------------------------------------------------|---------------------------------------|
| Ratio                of Double Leverage                                  |  %                               |
| Non-Performing                Assets to Loans and OREO                   |  %                               |
| Tangible                Common Equity as a Percentage of Tangible Assets |  %                               |
| Ratio                of Reserves to Non-Performing Loans                 |  %                               |
| Ratio                of Net Charge-Offs to Loans                         |  %                               |
| Return                on Average Assets (annualized)                     |  %                               |
| Net                Interest Margin (annualized)                          |  %                               |
| Efficiency                Ratio                                          |  %                               |
| Ratio                of Loans to Assets                                  |  %                               |
| Ratio                of Loans to Deposits                                |  %                               |
| Double                Leverage (exclude trust preferred as equity)       |  %                               |
| Total                Assets                                              | $       |
| Year                to Date Income                                       | $       |

**FOR      FISCAL YEAR END**

**FOR      FISCAL QUARTER END**

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| Report                Item                                               | Corresponding                FRY-9C or LP Line Items with Line Item corresponding                Schedules       | Description                of Calculation                                                                                                                                                                                                                                                 |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Tier                1 RiskWeighted                Assets                 | BHCK7206Schedule                HC-R                                                                             | Tier                1 Risk Ratio: Core Capital (Tier 1)/ Risk-Adjusted                Assets                                                                                                                                                                                              |
| Ratio                of Double Leverage                                  | (BHCP0365)/(BCHCP3210)Schedule                PC in the LP                                                       | Total                equity investments in subsidiaries divided by the total equity capital.                This field is calculated at the parent company level. “Subsidiaries”                include bank, bank holding company, and non-bank                subsidiaries. |
| Non-Performing                Assets to Loans and OREO                   | (BHCK5525-BHCK3506+BHCK5526-BHCK3507+BHCK2744/(BHCK2122+BHCK2744)                Schedules HC-C, HC-M & HC-N | Total                Nonperforming Assets (NPLs+Foreclosed Real Estate+Other Nonaccrual&                Repossessed Assets)/Total Loans+Foreclosed Real Estate                                                                                                                        |
| Tangible                Common Equity as a Percentage of Tangible Assets | (BHDM3210-BHCK3163)/(BHCK2170-BHCK3163) Schedule                HC                                          | (Equity                Capital – Goodwill)/(Total Assets – Goodwill)                                                                                                                                                                                                          |
| Ratio                of Reserves to Non-Performing Loans                 | (BHCK3123+BHCK3128)/(BHCK5525-BHCK3506+BHCK5526-BHCK3507) Schedules                HC & HC-N & HC-R | Total                Loan Loss and Allocated Transfer Risk Reserves/ Total Nonperforming                Loans(Nonaccrual                + Restructured)                                                                                                                                   |
| Ratio                of Net Charge-Offs to Loans                         | (BHCK4635-BHCK4605)/(BHCK3516) Schedules                HI-B & HC-K                                     | Net                charge offs for the period as a percentage of average                loans.                                                                                                                                                                                            |
| Return                on Average Assets (annualized)                     | (BHCK4340/BHCK3368) Schedules                HI & HC-K                                                  | Net                Income as a percentage of Assets.                                                                                                                                                                                                                                      |
| Net                Interest Margin (annualized)                          | (BHCK4519/(BHCK3515+BHCK3365+BHCK3516+BHCK3401+BHCKB985) Schedules                HI Memorandum and HC-K    | (Net                Interest Income Fully Taxable Equivalent, if available/Average Earning                Assets)                                                                                                                                                                         |
| Efficiency                Ratio                                          | (BHCK4093)/(BHCK4519+BHCK4079) Schedule                HI                                                   | (Non-interest                Expense)/(Net Interest Income Fully Taxable Equivalent, if available,                plus                Non-interest Income)                                                                                                                                |
| Ratio                of Loans to Assets                                  | (BHCKB528+BHCK5369)/(BHCK2170) Schedule                HC                                                   | Total                Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total                Assets                                                                                                                                                                       |
| Ratio                of Loans to Deposits                                | (BHCKB528+BHCK5369)/(BHDM6631+BHDM6636+BHFN6631+BHFN6636) Schedule                HC                        | Total                Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total                Deposits (Includes Domestic and Foreign                Deposits)                                                                                                             |

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| Total                Assets | (BHCK2170) Schedule                HC | The                sum of total assets. Includes cash and balances due from depository                institutions; securities; federal funds sold and securities purchased                under agreements to resell; loans and lease financing receivables;                trading                assets; premises and fixed assets; other real estate owned; investments                in                unconsolidated subsidiaries and associated companies; customer’s liability                on acceptances outstanding; intangible assets; and other                assets. |
|-----------------------------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Net                Income   | (BHCK4300) Schedule                HI | The                sum of income (loss)before extraordinary items and other adjustments                and                extraordinary items; and other adjustments, net of income                taxes.                                                                                                                                                                                                                                                                                                                                                                                    |

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*specify each such default and the nature and      status thereof*

*signatures      appear on the next page*

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*Must      be the Chief Executive Officer, the*
*President, or an Executive Vice      President]*

*Must      be the Chief Financial Officer, the *

*Treasurer,      or an Assistant Treasurer]*

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*LIBOR Determination Date*