USAA FEDERAL SAVINGS BANK

Home EquitY Loan Servicing

1 0750 McDermott FreewaY

San Antonio, fX 78288-0589

Telephone: (800) 531 -8065

CAROLYN R. DONGES

WILLIAM R. DONGES

5514 N CRESCENT RIDGE DR

TUCSON, AZ 85714

Loan Number 821 1 1055

ApplicationNumber 431534

Y Llt'lE OF CRE-DIT-A-GREEMENT

tu'llniionouns. The pronouns "1," 'meu and "my".refer to all

A;tr;;;;t ;ignins tnis 

*Ai;-emeni' 

lointlv and individuallv' and"each

;th;;;;;;";;i rEgir ""iit"v 

f'"itgtd"" to pav this Asreement' "You"

and "your" refer to the Lender, or any person or legal entity that

acquitls an interest in the Line of Credit'

B. Agreement' ngreeme:ni't"t"it i" this Home Equity -Line 

of Credit

I;r;;il;;i;- ano 

- 

anv 

- extensions' renewals' modifications or

substitutions of it.

A:--BilililCy;le. Billing Cvcle means the interval between the davs or

dates of iegulgr periodic statements'

D. credit r-irrlit. crealiii.ii "'"ini the maximum amount of principal

iou wift permit me to owe you under this.Line of Credit' at any one

iii,L. rvrvtt"oit Limit is stated at the top of this Aoreement'

E. Line of credit. Lin"e;i;;;it-;"l.rs to this trlnsaction generally,

including obligations"ii; -;;ii;" arising 

. 

from the terms of all

documents pr"purui or submitted for -this transaction such as

;;;li;;ii";t,'.eiuritv agreements, disclosures' and this Agreement'

FI'r-oan Account gariice-' Loan'Account Balance means the sum of

in, -r-npuia prin"ipui'-tuianie advanced under the terms of this

Ajreement, iinance "i,*g".. fees, and other charges till'-:r.:-d-'"::

arid other amounts advanced to me or others under the terms or rnls

t. OeflftftONS. ln this Agreement. these terms have the following

and continues until the Maturity Date. lmay request advances for

220 \4p4!:- (Draw Period) beginning on the Agreement Date'

7' COnnpUfnTlON OF FINANCE CHARGES' Finance charges-.begin to

;;.;;'i;;;;liieLv *he"'vou make an advance to me' To fisure the

;il;;"t;h;ts.l;;;..rr eirrihs-cvcre, a dailY,period'rcJ,?,P]t T:l:l?]::d^:I iilf'o?rr'[.i*;;'";; J;v. ir'"h uithe end or the Billing cvcle we add

,ritt""i"lrv linince cnaige amounts for the Billing Cvcle together' To

iorit tfit fjuify Balance, t7"o, tirst take the unpaid principal balance of mv

;X;;;"i'"";1;'"-nllir"i"6-"t each dav, add anv new advances' and

subtract any payments oriredits that apply to debt repayment'

8. PERIODIC RATE AND ANNUAL PERCENTAGE RATE' The periodic

rate used in calculating the Finance Charge is 0'01 84931 5 yo ano

the corresponding Annual Percentage Rate is 6'75000O00 y"'

The annual percentage rate includes interest and not other costs'

9. VARIABLE RATE. The annual percentage rate may change' lt will be

the value of the lndex described as the highest rate on corporate loans

postedbyatleastTSo/ooftheUSA's30largestbanksandknownasThe

Wall Street Journal Prime Rate, plus - 0'5000 % percentage points'

A, Bate Changes. The annual percentage rate may increase if the

index rate incr-eases' An lndex rate increase will result in a higher

il;;;;;h";s;ina it tnav have the effect.of increasing.mv periodic

Vrinin1um Piyment. A d'ecrease in the lndex rate will have the

opposite effect aS an increase, An lndex rate increase or decrease

,niii tare effect on the first day of the following Billing cycle. The

annual percentage rate can increase or decrease monthly after

Line of Credit'

C, 

-piop"*V. Property means .any real or .personal property that

secures my'obligations under this Line of Credit'

Other important terms are defined throughout this Agreement'

2. PROMISE TO PAY. I promise to pay to you or your order' .at yo.ur

.ioi"rJ,'"iit such other iocation as you may designate, so much..of the

ciuoii [i.it as may be advanced under this Agreement, ptus finance

.niig"i fees, chardes, costs, and expenses as described in this Line of

Credit.

3. AGREEMENT TERM. This Agreement begins on the Agreement Date

remaining fixed for

lndex rate changes more fr the

vo, *ilf ,"J tf,ilndex rate in'effeci on the day you adjust lhe,9nnl{ ii*""i"g"1"t" to d"t"t-ine the new annual peicentage rate' in suc!

5-"r"", -you will ignore any changes in the lndex rate that occur

between'annual between annual percentage percentage rate adjustments.

B- Rate Chanoe Limitations. /

4. ADVANCES, I may request advances by the following methods:

A. I write a Convenience Check that you have given me for that

purpose.

b. 'lrequest 

a withdrawal in person, by phone, or by mail.

You will mike the advance by advancing the amount directly to me,

depositing it in my transaction account. or by paying a designated third

peiron or account. You will record the amount as an advance and

increase my Loan Account Balance'

5. ADVANCE LIMITATIONS. You do not have to make any advances

during any period in which I have a right to cancel. Subject to the

limitaiions-contained in this Agreement, when I request an advance you

will advance exactly the amount I request.

6. CREDIT LlMlT. Subject to the terms and conditions of this

Agreement, I may borrow on this Line of Credit up to the Credit Limit. I

aglee not to request or obtain an advance that will cause the unpaid

piincipal of my Loan Account Balance to exceed the Credit Limit' I

understand thai you will not ordinarily grant a request for an advance that

would cause the unpaid principal of my Loan Account Balance to be

greater than the Credit Limit. but that you may, at.your option, grant such

I request without obligating yourselves to do so in the future. My Credit

Limit will not be increased if I overdraw the Line of Credit' lf I exceed the

Credit Limit, I agree to pay the amount by which the unpaid principal of

mv Loan Account Balance exceeds ihe Credit Limit imme4iately, even if

you have not yet billed me. Any sums in excess of the Creclit Limit will

not be secured Uy tne Property, unless they are for accrued but unpaid

interest or expenditures made pursuant to the security instrument

securing the Property.

u9lvvEctl orttruqr Perevrrlsvv IsLv qvJvv!'i'v'|irvr

B. Rate Changi Limitations. Annual percentage rate changes are

subject to the following limitation:

iititr-ii -crp.-ft""r"*irm Annual Percentage- Rate that

can apply during the term of this Line of Credit is 16.0% or the

maximum annu-al percentage rate allowed by applicable law,

whichever is less.

10. FEES AND CHARGES. I agree to pay, or have paid, the fees

charges listed in the FEES APPENDIX that appears at the end of

Agreement.

11. PAYMENT DATE. During the term of this Agreement, a Minimum

Payment will be due on or before the Payment Date indicated on .my peiiodic statement for any Billing Cycle in which there is an outstanding

balance on my account. My Minimum Payments will be due monthly.

12. MINIMUM PAYMENT. On or before each Payment Date, I agree to

make a payment of at least the Minimum Payment amount.

A. Minimum Payment Amount. The Minimum Payment will equal the

following:

(1) K Option 1. The amount of accrued finance charges on the

last day of the Billing Cycle.

(21 E Option 2. 1.5 percent of the Daily Balance on the last day

of the Billing Cycle or $1O0.0O, whichever is greater.

B. Payment At Maturity. On the Maturity Date I must pay the entire

outstanding Loan Account Balance.

13, PRINCIPAL REDUCTION. Under Option 1 the Minimum Payment will

not reduce the principal balance outstanding on my Loan Account

Balance. Under Obtion 2 the Minimum Payment may not fully repay the

principal balance outstanding on my Loan Account Balance.

14. FINAL PAYMENT. At maturity under Option 1, I will repay the entire

outstanding Loan Account Balance in a single Davment- At maturilv under

Option 2, -l may have to repay the entire outstanding Loan Account

Balance in a single payment'

and

this

HOME EOUITY VARIABLE DRAW AGBEEMENT

gffeBr; o 20oo Bankers Svstems, lnc., st. cl0ud, MN Form usAA-HE 9i5i2003 lpage 7 of 5)
At that time you may, but are not obliqated to' refinance this Line of

e*iii'ri'vor'ao retininci'tii. r-inl ol Lredit at maturity, Iunderstand

that I may have to puy *rn- or all of the closing costs normally

associated with a new loan.

l5.ADDlTloNALPAYMENTTERMS.lfmyLoanAccountBalanceona P;6;ri D;6ltl"""trtun tn" Minimum Pavment amount' I must pav only

the amount necessary to i"J,"t my Loan'Account Balance to zero' lf I

;il";G irii to trttv puv tn" Miniti.lum Pavment. amount' vou mav'. b'ut

.ii, n"i' ,"qrit"o to, ioruh.! rnon"y to me io make the payment' All the

terms of this Agreement'*itl ,ppfy'to such an-advance' I can pay off all

or oart of what I owe at any tirite. I must continue to make my periodic

i,ri,{ili'i'pJvilL;]itiir"ig ,i r-";" anv amount.' Unless otherwise agreed

;;';il;i;;;;y ippricaure jaw, p'v'"nis und other credits will be applied

fi;=ii; ;;y "hitst"t t owe-otir6i inan principal and finance charges' then

rn anv finance charqes if,ii ir. due, and finally to princip.al. No late

c-naige wiff be asses-sed on any payment when.the only. clellnquency ls

;r; "t" late fees assessed on baitier payments and the payment ls

otherwise a full PaYment.

16. SECURITY. You have secured my obligations under this Line of Credit

the reasonable attorneys' fees you incur to c{lllect this debt as awarded

;;."y ;;r;i;reicising iurisdiction under the Bankruptcv Code'

lagreetotheseadditionalterms,ifthePropertyislocatedinthestate

referenced:

Alabama or lowal Expenses include, but are not limited to, court costs

and other legal exPenses.

Alaska, Arizona, Michigan, Mississippi, Nebraska, New Mexico' Nevada'

oE;;,' i;;;iir""ni", -v"i-ont, oi washington: Expenses. include' but

are-not'limited io, attorneys' fees. court costs and other legal expenses.

Arkansas: Expenses include, but are not- limited -to, rea-sonable attorneys'

;;;;'i;;-iJ;;mined under Ark. Code Ann' 5 16-22-308l' court costs.'

.nJ ,itl.,". iegal expenseJ. lf not paid immediately, these expenses will

U""r 

-int"r""i from the date of piyment until -paid in full at the same

int.i"ii iat" ln effect as provided in the terms of this Agreement'

California: Expenses are limited to the costs actually incurred for

il;;,ii;s, ,;iii;g; publishing, and p^ostjng lesallv required notices' costs

of oostoonement not to excf,ed $50, litigation or trustee sale fees, and

attorneys' fees allowed bY law.

colorado or south carolina: Expenses include, but are not limited to,

i"i"'J"""6f" "tt-neys' fees not in excess of 15 percent of the unpaid. debt

;fi; ;;i;rh ina' reteriat to an attornev who is not vour salaried

employee.

Connecticut: Expenses include, but are not limited to, your- reaso-nable

attornevs, fees arising after the commencement ot a lawsult, up Io I c

ili..'"i "t ine enter6O judgement so. long as the fees arise from an

Stto*"v who is not youi sa'iaried employee, court costs and other legal

expenses.

DistlictofColumbiaorNorthCarolina:Expensesinclude,butarenot

fm-ii,iO-t". reaionaUle attorneys' fees not dxceeding 15 percent of the

outstanding balance of this Agreement.

Florida: Expenses include, but are not limited to, attorneys' fees.of. 10

t"r""nt oi'the orincipal sum due or a larger amount as the court judges

as reasonable ahd just, court costs, and other legal expenses'

Georgial Expenses include, but are not limited to, attorneys' fees, court

c-o-sti ina dther legal expenses. lf this debt is collected by or through an

itttiri"v after matlrity, I agree to pay 1 5 percent of the principal and

interest owing as attorneYs'fees.

Hawaii, Massachusetts, Montana, Rhode lsland, Tennessee, or Utah:

Expenses include, but are not limited to, reasonable attorneys'fees, court

costs, and other legal expenses.

ldaho, lndiana, or Wyoming: Expenses include. but are not limited to,

reasonable attorneys' iees atter default and referral to an attorney who is

not your salaried employee.

lllinois: Expenses include reasonable attorneys' fees.

Kansas: Expenses include. but are not limited to, collection agency fees

or attorney's' fees and other court costs and legal expenses up to 1 5

percent of the unpaid amount due and payable if referred to someone

other than a salaried employee.

Kentucky: Expenses include. but are not limited to, reasonable attorneys'

{ees as provided by law, and court costs. This amount does not include

attorneys' fees for your salarled employee.

Louisiana: Expenses include attorneys'fees not in excess of 25 percent

of.the unpald debt after default and referral to an attorney for collection.

Maryland: Expenses include, but are not limited to, reasonable attorneys'

fees (if not paid to your salaried employee), court costs and other legal

expenses.

Maine: Expenses include. but are not limited to, your attorneys' fees not

in excess of 1 5 percent of the unpaid debt after referral to an attorney

who is not a salaried employee of yours (unless this loan constitutes a

supervised loan under the Maine Consumer Credit Code), and reasonable

attorneys' fees, legal expenses and other reasonable costs incurred in

realizing on the Property securing the Agreement.

Minnesgta; Expenses include, but are not limited to, attorneys' feesr court

costs and other legal expenses. lf not paid immediately, these expenses

will bear interest from the date of payment until paid in full at the

contract interest rate in effect as provided in the terms of this

Agreement.

by taking a security interest (by way of a separate security instrument

dated December 20, 2005 ) in the following Property:

5514 N CRESCENT RIDGE DR

TUCSON, AZ 85718

Property securing any other loans that I have with you may also secure

this Agreement,

17, PROPERTY INSURANCE. I will insure or retain insurance coverage on

th. ir**d and abide by-th" int,t'nce requirements of any security

instrumi:nt securing this Line of Credit'

18. DEFAULT. I will be in default if any of the following occur' 

. .

'-' A:'F"y*"nts. I fail to make a payment ,as .,,r?cuy-ed,-P-Y.,-'lli:

Agreement. lf the Property is lo-cated in- !9w9 I will be rn delaulr rT I

faii to make a paymeni wiinin t0 days of its.due date'

b-.' irrop",tv. My'action or inaction adversely affects the Property or

your rights in the ProPertY

b. rru"ra. t engag6 in fraud or material misrepresentation in

"onn""tion 

witn irrl-s Line of credit. This will not be an event of

O"f"rft lt the Property is located in ldaho, lowa, Kansas' Maine'

Missouri. or South Carolina.

19. REMEDIES. After I default. and after you give any legally required

noii"" ""0 opportunity to cure, you may at your option do any of the

f ollowing: '-"-4. i"r-ination and Acceleration. You may terminate this Line of

Credit and make all or any part of the amount owing by the terms of

this Agreement immediatelY due.

B. Airan"rs. You may temporarily or permanently prohibit any

additional advances.

C. Credit Limit. You may temporarily or permanently reduce the

Credit Limit.

D. Additional Security. You may demand additional security or

additional parties to be obligated to pay this Agreement'

E. lnsurance Benefits. You may make a claim for any and all

insurance benefits or refunds that may be available on my default.

F. Payments Made On My Behalf. You may make amounts advanced

on my behalf immediately due. and you may add these amounts to

the Loan Account Balance.

G, Sources. You may use any and all remedies you have under

applicable law or any agreement securing this Agreement'

Except as otherwise required by law, by choosing a remedy you do .not

give up your right to use another remedy. You do not waive a default if

lou ctio6se noi to use a remedy. By electing not to use any remedy you

do not waive your right to later consider the event a default and to use

any remedies if the default continues or occurs again.

20. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after

default, to the extent permitted by law, I agree to pay all expenses .of

collection, enforcemeni or protection of your rights and remedies under

this Agreement. All fees and expenses will be secured by the Property'

Unlesithe Property is located in Arkansas or Minnesota these expenses

are due and ilayable immediately, and if the expenses are not paid

immediately, they will bear interest from the date of payment until paid. in

full at the'highdst rate in effe6t as provided for in the terms of this

Agreement. Ul-nless the Property is loc-ated in New Hampshire, to the

ex"tent permitted by the Uniled States Bankruptcy Code, I agree to pay

HOME EOUITY VARIABLE DRAW AGREEMENT

A@ @ 2ooo Bankers Systems, lno., St' Cloud, MN Form USAA-HE Sl5/2003 (page 2 of 5)
Missouri: Expenses include, but are not limited to, attorneys,.fees,. not in

L1i'iiIJ'iii-i5";;;;.;t ;iifr;i.o,nt due and pavabre' if referred to an

attorney who is not vout "ui.ii"o u'pioy""' toieiher with any assessed

court costs,

New Hampshire: Expenses include, but are .not limited to' reasonable

attornevs, fees, court coits inA other 1egal. expenses. I will recover

:"':".i;;;;r" ;ti;;";;;' i"L"-iir prevail in an iction brousht bv either or us

;il;;;;-,;;;""t1 rt r am partiallv successful in such an action' the court

mav withhold from you ? irho,nt for attorneys' fees considered

lji'i.rlilr''[v i'r.'"'""ogt.'itir]iouiri6n ir.J.hitr appry if I fite a petition or

"ifi.'ii:f-"i, ioi i"ri"t unj"r-un,-Uinlruptcy ruli- or law of the United

Ei';i;";';;'if 

"*u"r.l 

p"tition o|, oiti"ictaim'foi relief is filed against me by

another.

Ohio or Virginia: Expenses include (unless prohibited by law) reasonable

ittoi*v.' fEes, couit costs and other legal expenses'

Oklahoma: Expenses include, but are not limited to' court costs' and

;ih-;i"k s;i ;fi;t;. .E*oensb" do not include attornevs'^fees except as

i*irOeO" by d court in 'accordance with other (non UCCC) statutes ot

Oklahoma.

South Dakota: Expenses include, but are not limited to' court c-osts and

JtI."*'rigli-;ii*J"i,-incrirb-tng ;ny ;r.onabte attorneys' fees if allowed

by law.

West Virginia: Expenses include all costs and fees authorized by law'

21. SUSPENSION OF CREDIT AND REDUCTION OF CREDIT LIMIT' You

;;;;;p;;irv-pror'iuit -" irom obtaining.additional advances or reduce

il.v,iidii-t"Llii er;i;s ""v p"rro ln wniin any of the followins are in

effect.

A. The value of the Property securing this Line of Credit declines

"igniii"antiy 

betow its rpbirii"o valuJfor purposes of this Line of

Credit; ;:-Y;, reasonably believe that I will not be able to meet the

i.ouvrnunt requirementi under my Line of Credit due to a material

cl'ian.qe in my financial circumstances;

c.-ilrn in,i"fault oi Jmaterial obligation under this Line of credit, I

understana that you consider all of my. obligations .to. be material'

categories of obligations that you consider material include, but are

noiii"-itea to: my-obiigation to not commit fraud or misrepresentation

in trnni"tion with tliis Line of Crediu my obligation to meet the

iepayment terms of this Line of CrediU my obligation to..not.adversely

afi"it if," Property or your rights in the Property; my obligatio.n.to pay

iees and charges; my'advan6e obligations; my obligation ro fulfill-the

terms of the instrument securing this Agreement, and any otner

iicurity instruments on the Proper-ty-; my obligation to notify you; and

my obligation to provide you with information'

D. Governme.t ";il; ';;";;it";;; liinl i'po"ins the annual

percentage rate provided for in this Agreemenq

E, ffl" -priority of your security inierest.is adversely affected by

oor"rnn.,'"nt aciion to the extent fhat the value of the security interest

is less than 120 percent of my Credit Limit;

F. The maximum annual percentage rate allowed under this

Aoreement is reached;

G] You are notified by a regulatory agency that continued advances

constitute an unsafe and unsound practice; or

H. Any Borrower requests a suspension of credit privileges'

ln order to reinstate my credit privileges under the original terms of this

Agreement, I must send you a written request to that effect.. My credit

prTvileges will only be reinitated if you determine that the condition which

baused you to prohibit additional extensions and/or reduce the Credit

Limit no longer 'exists, lf appraisal or credit report fees are incurred in

making this determination, you may (if allowed by applicable law) charge

me sulh fees. lf credit privileges were suspended at my request, they

need not be reinstated unless all Borrowers request reinstatement.

22. SET-OFF. You may set-off any amount due and payable under the

terms of this Agreement against my right to receive money from you.

unless prohibited by applicable law. For example. your right of s-et-off

does not apply to an lndividual Retirernent Account or other tax-deferred

retirement account.

Maine: tf I am in default, you may exercise your right of set-off after you

give any legally required notice and opportunity to cure.

23. DUE ON SALE, You may, at your option. declare the entire balance of

this Agreement to be immediately due and payable up-ol.l th:e creation o{r

or the-contract for the creation oi. a transfer or sale of the Property. This

right is subject to the restrictions imposed by federal law (12 C.F.R. Pt'

591), as applicable.

24. AMENDMENTS. Generally, the terms of this Agreement cannot be

changed. You may, however, make the following changes:

A. You may make changes that I agree to in writing at the time of

the change.

e.- Vo, ;'liv make changes that will unequivocally benefit me'

C. You may make insignificant changes'

O. Y", may cfrange -the lndex ant margin, if the origina.l lndex

o""orn", Jriavaitabie. Any new index will. have an historical

*-"*.*tsubstantiallysimilartotheoriginallndex,andtogeth.er

*it616" new margin, produce an annual peicentage rate substantially

iirliui 1o 16u rat; i;'efiect at the time the original lndex became

unavailable.

E.'-Vou-*uv make changes that are described elsewhere in this

Agreement.

25. TERMINATION. I may terminate this Line of Credit at any time.upon

ilift;;;i';; to vor. Teimination by one Borrower terminates the Line of

C'i.Jit i"i"tt go,ro*"rs. Termination will not affect my obligation Io.repay

;;;;";" maOe prior to the termination, nor will it alter my duties to

oerform under the terms of an instrument securing .this Agreement until

Ir.ti instrur"nt is released. Upon termination .l will return to you any

i".ri"i,id Convenience Checks' in my possession that were issued or

used in c-onnection with the Line of Credit'

25'WAIVERSANDcoNsENT.Totheextentnotprohibitedbylaw,and !*..0i'ioiinv required notice of right to cure for the failure to make a

;;;;i;;i;";"iuni]l *iir" protest, presentment for pavment, demand'

;;ii;;;i;";eieiation, notice of intent to accelerate and notice of

Ji"honor. To the extent not prohibited by law, I and any other party to

;hi;1i;; of Credit, also conient to the following actions that vou mav

ilL", i"o waive defenses rhat may gg available^based on these actions,

oi uir"o on the status of a party to this Line of Credit'

A. You may renew or extend payments on this Agreement

regardless of the number of such renewals or extensions'

g-," You may release any Borrower or other person who may be liable

for the indebtedness under this Agreement'

C-, Vo, miv release, substitute 6r impair any Property securing this

Agreement.

OI You may invoke your right of set-off '

E- Vo, may enter inio any-sales or repurchases of this Agreement to

uny p"tton'in any amounts and I waive notice of such sales or

repurchases. f,- r igree that any Borrower is authorized to modify the terms of

this Ag-reement or any other Line of Credit document'

A. Vi, may inform any party who guarantees this Line of Credit of

any loan accommodaiions, renewals. extensions, modifications.

substitutions, or future advances.

H. Georgia: lf the Property is located in Georgia, I waive my right to

the beneiit of exemption as to my Property securing, or to secure,

this Agreement. I. lniiana: lf the Property is located in lndiana, lgive up any rights I

may have under any valuation and appraisement laws which apply to

me.

No delay or forbearance on your part in exercising any of your rights or

remedies will be construed as a waiver by you, unless such waiver is in

writing and is signed by you.

27.IAX DEDUCTIBILITY. I should consult a tax advisor regarding the

deductibility of interest and charges under this Line of Credit.

28. PERIODIC STATEMENTS. lf I have an outstanding balance on my

account or have any account activity, you will send me a periodic

statement at the end of each Billing Cycle. This periodic statement will

reflect, among other things. credit advances, finance charges. other

charges, payments made. other credits, my previous account balance and

my new account balance. The periodic statement will also identify my

Minimum Payment for the cycle and the date it is due (Payment Date).

29. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My

obligation to pay this Line of Credit is independent of the obligation of any

other person who has also agreed to pay it. You may sue me alone, or

anyone else who is obligated on this Line of Credit, or any number of us

together, to collect on this Line of Credit. Extending this Line of Credit or

new obligations under this Line of Credit, will not affect my duty under

this Line of Credit and I will still be obligated to pay this Line of Credit.

The duties and benefits of this Line of Credit will bind and benefit the

successors and assigns of you and me.

30. INTEGRATION AND SEVERABILITY. This Agreement is the complete

and final expression of the agreement. lf any provision of this Agreement

is unenforceable, then the unenforceable provision will be severed and

the remaining provisions will still be enforceable.

3I.INTERPRETAT|ON. Whenever used, the singular includes the plural

and the plural includes the singular, The section headings are for

convenience only and are not to be used to interpret or define the terms

of this Agreement.

HOME EOUITY VARIABLE DRAW AGREEMENT

E4GE O 2O0o Bankers Systems, lnc., St. Cloud, l\4N Form USAA-HE 9/5/2003 (page 3 of 5)
32, NOTICE, FINANCIAL REPOHTS, AND ADDTTIONAL DOCUMENTS'

il;i;;;;fi;;*lie'r"qltrea Lv-'ru*,'u"v-"otice will be siven by.deliverins it

Ji ',i-r"iri".it it uy ii,st'"tur" mair to the appropriate. partv's address above,

or to anv other address ol.ii,ilt"o'iii*ifing. Notiie to one Borrower will

il';##";'i;' ;"-;;;" i; "uri-eoito*"tt' l-will. inform vou in writins ol

;;y;h;"g" in my name,-iddreis or other application information. I will

provide you any t,nrn.,ui-it"-t-.-."nt or inidrmation you request. AII

financial statements anJ inf;i;ation l--give you will be correct and

;;;;l;;.-i;gr"" to sign. deliver.. and file anv-additional documents or

I"iii?i""iton, [h"t you riay tonslder necessary'.to perfect, continue, and

;;;;;;; oul',s"iions ,i,ia", i[iJ LinJ oi creolt arid to confirm vour lien

status on any Property. Time is of the essence'

33. CREDIT INFORMATION. I agree to supplv. vou with. *!?l-"-Y:l

i";;*;ti"; yJu reasonably feel you need to decide whether to contrnue

ihi;'ii;;-;f 'creait. you rniiti marie requests fo.r this information without

;;;r; +;d;";lv] -r"a *iri give me readonable time in which to supplv the

information.

California: lf the Property is located in California, as required by law' I am

["i.Uv notiti"d that a negalivt-reOit report reflectlng on my.credit record

;;;i" ;,;#itted to " ci"oit reporting agency if I fail to fulfill the terms

of my credit obligations.

Utah: Notice of Negative Credit Report' As required bv Utah law' I am

hereby notified that a "";"i;;;t;i-iiefoii-'ette.9tlns.on 

mv.credit record

;;; tj" submirted to a c"redit reporting agency if I fail to fulfill the terms

of rhy credit obligations.

34. APPLICABLE LAW' You are a federal .savings bank located in Texas'

ii." A;;"-;"-"t,"lnt"rest rate and related charges are made pursuant.to,

;;;;;"";;;J by-, the raws-6t rexas and the United states of America'

ih" E* "t the siate where the property is located will apply to the extent

legally required.

State soecific text applies to the extent specific_ally provided above, if the

F;;;;rt;l; i;ated in the specific jurisdiction referenced'

Maryland:lagreethatthisLineofCreditissubjecttotheRevolvingCred.it i;;;;i;i;;. oJ'Marvland ii*, jt amended (Md' Commercial Law ll code

Ann., Title 12, Subtitle 9).

35. STATE NOTICES. The following provisions apply to the extent the

Property is located in the state referenced:

Alaska: I am personally obligated and fully liable for the amount due under

inl. Aor"J*"ii. you har" tfle right to su6 on the Agreement and obtain a

"..r*."iiiraoment aqainst me f-or satisfaction of the amount due under

ine Agie,i.dnt either-before or after a judicial foreclosure of the,mortgag-e

Ji O",r",f of trust under Alaska Statutes-!5 09'45.170 through 09'45'22O'

Maryland: lf the entire credit Limit is not disbursed at.this Agreement's

exeiution, I may. at my option, pay Maryland recordation tax on the

entire Credit Limit at closing, or I may pay Maryland recordation tax on

anv initial advance at closing, and on any future advance at the tlme ol

"r6fr ir"n advance. lf I pay-the Maryland recordation tax on the entire

Credit Limit at closing, my tbtal tax liability will be satisfied, regardless.of

the amount of any f-uture advances that may subse-quently .be made .by

you to me. lf, hovirever, I elect to pay the required Maryland recordation

iax as advances are made, I will have seven (7) days to file with the clerk

of the court where the security instrument is recorded a verif ied

statement of the amount of the additional debt incurred as each advance

is made, and I must pay the applicable Maryland recordation tax on that

additional debt, or lmay be penalized by a fine of up to $500'00. or

imorisonment for up to 6-mintfrs for failing to do so as pro.vided in

'i'i?jioi'i;;ir,E'rul-propuriv Articre of the A-nnotated code of Maryland.

North Dakota: lF PERMITTED BY APPLICABLE !4ry,,IH19-q9-U-GlTI9.ry iiliV' BE 

-i-rie riri'iS roR A PERSoNAL AcrloN AGAlNsr rHE

i;iiijnrSon "on inorvrrsoRs lN ADDlrloN To orHER REMEDIES

ALLOWED BY LAW.

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t $i [,['tt=' ?,$fIAEUT

RATE.

ho#"t,l.Xxp"Jfr xtil*o"3o,,J#o[3,'3ffi !li%"I53.:",.sir"{nHA ilYH;'lii' *ritih"ri"irdlniorce-a6le. -Nb other terms' or oral

pJ""51l'"B"?st"r:ft q'35d"i]r'nli"HU:."?n3"?:ifl.,"J['i',r13

AEredment bnly by another iruritten agreement'

36'oTHERTERMS.lfchecked,thefollowingaddendaareattachedto

and made a Part of this Agreement:

A. fl Automatic withdrawal

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Credit lnsurance

Discounted Rate

37. ADDITIONAL TERMS.

M''rr*"i' ORAL AGREEME\II$ -OECO-MMITMENTS TO

ldxN.'ivr ohiLY, Exier,tD cREDlr oR r-o-FoRB.EAB 

. 8.9.U

Eru'rondrr,re hepAYrvlervr oF A .D-EBr INcLUDINE

F'CbliiisEi-rci-ExreuD oR RENEIM s-ucH DEBr ARE

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-Y-o-u -( F-o. RE -o^\,v EEl lNb uii -il-ErrtoEnt FRoM MI9U-NP-EFSTANDING oR

ijisapFolrvrMetur.- ANY AGBE-El\4El-u.Ts wE REAcH

6tivEnrttc 50EH'MATTERS ARE co-NTAINED lN rHls

ivtirrruc, WHIcH ts rHE cqryE-L-ETE AND ExcLUsIy-E

SIaiEiTI'Eruf OT THE AGREEMENT BETWEEN US-,

Eidipi'-n5 wE MAY LArER AGREE lN wRlrlNG ro

MODIFY !T.

IOWA:

(For purposes of this Notice, "You" means Mortgagor)

1. Do not sign this paper before you read it. 2. You are entitled to a copy of this paper. 3. You may prepay the unpaid

balance at an| time without penalty and may be entitled to receive a refund of unearned charges in accordance with law.

4. lf you prepay the unpaid balance, you may have to pay a minimum charge not greater than seven dollars and fifty cents.

SIGNATURES. I understand that terms following a

receipt of a copy of this Agreement.

BORBOWER:

X

CAROLYN R. DONGES

E only apply if checked. By signing, I agree to the terms of this Agreement and acknowledge

X

HOME EOUITY VARIABLE DRAW AGREEMENT

(page 4 of 5)
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 ln Case of Errors or O.uestions About Your Bill

lf you think your bill is wrong, or if you need more information about a transaction on your bill, write us at the address listed on.your bill. Write to us

as soon as possible. We must hear from you no later than 60 days after we dent you the first bill on which the error or problem appeared. You can

telephone us. but doing so will not preserve your rights.

ln your letter, give us the following information: (a) Your name and account number, (b) The dollar amount of the suspected error. (c) Describe the

error and explain, if you can, why you believe there is an error. lf you need more information, describe the item you are not sure about.

lf you have authorized us to pay your bill automatically from your savings, checking or other account, you can stop the payment on any amount you

think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur,

Your Rights and Our Responsibilities After We Receive Your Written Notice

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 bill was 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 bill that are not in question

lf we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. lf 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. ln either case. we will

send you a statement of the amount you owe and the date that it is due.

lf 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 ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill, And. we

must telt you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it

finally is.

lf we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct.

FEES APPENDIX

ADDTTTONAL FINANCE CHARGES. I agree to pay, or have paid, the following ADDITIONAL FINANCE CHARGES:

o E Origination Fee. An origination fee of

r E Points.

OTHER FEES AND CHARGES. I agree to pay, or have paid, the following additional fees and charges:

o K Recording Fee.

o E Appraisal Fee.

o E Titt" Search Fee.

o n T"*"".

e n Titt" lnsurance.

$

I

$

$ 11.00 POC .

$

o.oo

o E Annual Fee. A fee of $ due annually in order to continue this Line of Credit. You will add this amount to my Loan

Account Balance

r E Returned Check Charge. A charge not to exceed $ 1 5'00

connection with this Line of Credit that is returned because it has been dishonored.

X rlooa Determination Fee. $

for each check or negotiable order of withdrawal I issue in

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HOME EOUITY VARIABLE DRAW AGREEMENT

lpage 5 of 5)
ADDENDUM TO HOME EQUTTY LINE OF CREDIT AGREEMENT

Dated December 20,2005

This Addendum to Home Equity Line of Credit Agreement (the "Addendum") is incorporated into

and amends and supplements theHome Equity Line of Credit Agreement/Texas Home Equity Line

of Credit/Equity Line of Credit Agreement and Disclosure dated December 20, 2005 between

usAA Federal Savings Bank and GAROLYN R. DONGES and wILLIAM R. DONGES

evidencing a home equrty mortgage loan to CAROLYN R. DONGES and WILLIAM R'

D9NGES (the "Credit Agreement"). Terms defined in the Credit Agreement shall have the same

meaning in this Addendum unless expressly stated to the contrary. Notwithstanding afiy contrary

languagi in the Credit Agreement, the following terms shail apply'

Upon my request and at my option, and with your consent, I may convert all or a portion of my

Loan Account Balance to a segment within my Loan Account Balance (a "Fixed Segment") that

will bear a fixed rate of interest for a certain period of time and require me to repay it at a fixed

monthly payment in addition to my Minimum Payment (my "Fixed Segment Payment"; the sum of

my Minimum palmrent and my Fixed Segment Payrnent being my "Total Palnnent"). I may choose

the length of the Fixed Segment as a certain number of months, subject to a minimum length of

twelve months and a maximum length of 180 months, and the rnaturity date of any Fixed Segment

may not extend beyond the Maturity Date of my Credit Agreement. You will determine the fixed

rate of interest for a particular Fixed Segment as the value of the Index on the date of my request

plus a margln in accordance with the following schedule:

Length of Fixed Segment

12 months to 36 months

37 months to 48 months

49 months to 60 months

61 months to 72 months

73 months to 180 months

Margrn

3.50 percentage points

3.75 percentage points

4.00 percentage points

4.25 percentage points

4.50 percentage points

The Index for the Fixed Segment will be the Three-year Treasury Weekly Average Annualized

Interest Rate as published in the Wall Street Journal Key Interest Rate section on the third Tuesday

of the month previous to my request or the third Wednesday of the month previous to my request if

the third Tuesday follows a Federal Reserve Board Monday holiday. However, from time to time

you may offer lower rates or other features.

The minimum amount that I can convert is $4,000. I may not obtain more than five Fixed Segments

in any year, and I may not have more than frve Fixed Segments outstanding on my Loan Account

Balance at orry one time. Once I have established a particular Fixed Segment, I cannot add

subsequent converted amounts to it. The aggregate principal amount of a1i Fixed Segments and my

remaining Loan Account Balance outstandin g at any time during the term of my Line of Credit wiil

not excoed my Crodit Limit.
payments on any Fixed Segment will be due monthly as part of my Total Pa5rment, and repayment of

each Fixed Segment must occur by the maturity date of the appiicable Fixed Segment. The a:nount

of each -orrthly Fixed Segment Payment will be based on an amortization of the amount of the

Fixed Segment over the number of months of the Fixed Segment's length, which you will set in

accordance with my instructions, subject to the limitations described herein. The Total Payment due

on my account will be the sum of the Fixed Segment Payment(s) and the required Minimum

payrnlnt on the variable rate credit line portion of my Loan Acoount Balance (my "Li:re Balance"), if

any, as indicated on my periodic statement.

If I have estabiished one or more Fixed Segments, each Total Paylent I make will be allocated first

to my required Minimum Payment due on my Line Balance, if any, then to payrnents due on all

Fixei Segments in the order of age of the Fixed Sbgments, with the oldest Fixed Segment first.

Unless otlerwise required by applicable law, each payment I make will be applied within each Fixed

Segment and within the remainder of my Loan Account Balance fust to any charges (other than late

charges) I owe other than principal and interest, then to interest that is due and finaily to principal.

Late charges will not be deducted from my Total Payment, but will be collected separately. If I remit

an amount in excess of the required Totai Payment for any month, the excess willbe allocated f,rst to

any late charges owing, then to the Line Balance, if any, then to the principal balances of the Fixed

Segments in the order of age of the Fixed Segments, with the oldest Fixed Segment first.

I may direct you in writing to allocate the excess amount to one or more specified Fixed Segments if

you ieceive my direction no later than the day you receive my payment amount. My Total Paynent

ior the succeeding month will not be delayed because of any excess payment. As and when the

amounts I pay are allocated to the principal balance of any Fixed Segment, the available credit on my

variable rate credit line will increase in an equivalent amount, not to exceed the Credit Limit.

Lines of Credit Secured by Texas Properties. Notwithstanding the foregoing, if my Credit

Agreement is a Texas Home Equrty Line of Credit, I may only obtain a Fixed Segment conversion

audng my Draw Period, and the maturity date of any Fixed Segment will not extend beyond the

expiration of the Draw Period.

I will contact you by telephone or in writing to request a Fixed Segment or accept a promotional offer

for a Fixed Segment. I agree that the confirmation notice noting the terms of my Fixed Segment that

you mail me following your receipt of my Request will constitute the controlling record of my

Request and of our agreement for the Fixed Segment.

Except to the extent that this Addendum modifies the terms of the Credit Agreement, ail terms of the

Credit Agreement and the MortgagelDeed of TrustlDeed to Secure Debt ("Seourity Instrument") aro

ratified and confirrned and shall remain in full force and effect. The Security Instrument will continue

to secure each Fixed Segment and the Line Balance as each exists from time to time, and in the event

of defauit, you may exercise your rights as described in the Security Instrument against any and all

Fixed Segments and the Line Balance. To the extent of any conflict between the Credit Agreement

and this Addendum, this Addendum controls.

CAROLYN R. DONGES Date WILLIAMR.DONGES Date
USAA FEDERAL SAVINGS BANK

Home Equity Loan Servicing

1 0750 McDermott Freeway

San Antonio, TX 78288-0589

Telephone: (800) 531-8065

Loan Number 821 1 1055

CAROLYN R. DONGES

WILLIAM R. DONGES

5514 N CRESCENT RIDGE DR

TUCSON. AZ 85718

ApplicationNumber 431534

Agreement Date December 20, 2005

Lender Borrower

credit Limit $ 183,800.00

Maturity P61g April 9, 2024

HOME EOUITY LINE OF CREDIT AGREEMENT

meanings. accrue immediately when you make an advance to me. To figure the

A. Pronouns. The pronouns "1." 'meu and "my" refer to all finance charge for each Billing Cycle. a daily periodic rate is multiplied by

Borrowers signing this Agreement. jointly and individually. and each the Daily Balance each day. Then at the end of the Billing Cycle we add

other person or legal entity that agrees to pay this Agreement. "You" all the daily finance charge amounts for the Billing Cycle together. To

and "your" refer to the Lender, or any person or legal entity that figure the Daily Balance, you first take the unpaid principal balance of my

acquires an interest in the Line of Credit. account at the beginning of each day, add any new advances. and

B. Agreement. Agreement refers to this Home Equity Line of Credit subtract any payments or credits that apply to debt repayment.

Agreement, and any extensions, renewals. modifications or

substitutions of it.

C, Billing Cycle. Billing Cycle means the interval between the days or

dates of regular periodic statements.

D. Credit Limit. Credit Limit means the maximum amount of principal

you will permit me to owe you under this Line of Credit, at any one

time. My Credit Limit is stated at the top of this Agreement.

E. Line of Credit. Line of Credit refers to this transaction generally,

including obligations and duties arising f rom the terms of all

documents prepared or submitted for this transaction such as

applications, security agreements, disclosures, and this Agreement.

F. Loan Account Balance, Loan Account Balance means the sum of

the unpaid principal balance advanced under the terms of this

Agreement. finance charges, fees. and other charges that are due.

and other amounts advanced to me or others under the terms of this

Line of Credit.

G. Property. Property means any real or personal property that

secures my obligations under this Line of Credit.

Other important terms are defined throughout this Agreement.

2, PROMISE TO PAY. I promise to pay to you or your order, at your

address, or at such other location as you may designate, so much of the

Credit Limit as may be advanced under this Agreement, plus finance

charges, fees, charges, costs, and expenses as described in this Line of

Credit.

3. AGREEMENT TERM. This Agreement begins on the Agreement Date

and continues until the Maturity Date. I may request advances for

220 Months (Draw Period) beginning on the Agreement Date,

4, ADVANCES, I may request advances by the following methods:

A, I write a Convenience Check that you have given me for that

purpose.

B. I request a withdrawal in person, by phone, or by mail.

You will make the advance by advancing the amount directly to me.

depositing it in my transaction account. or by paying a designated third

person or account. You will record the amount as an advance and

increase my Loan Account Balance,

5. ADVANCE LIMITATIONS, You do not have to make any advances

during any period in which I have a right to cancel. Subject to the

limitations contained in this Agreement, when I request an advance you

will advance exactly the amount I request.

6. CREDIT LIMIT. Subject to the terms and conditions of this

Agreement. I may borrow on this Line of Credit up to the Credit Limit. I

agree not to request or obtain an advance that will cause the unpaid

principal of my Loan Account Balance to exceed the Credit Limit. I

understand that you will not ordinarily grant a request for an advance that

would cause the unpaid principal of my Loan Account Balance to be

greater than the Credit Limit, but that you may, at your option, grant such

i request without obligating yourselves to do so in the future. My Credit

Limit will not be increased if I overdraw the Line of Credit. lf I exceed the

Credit Limit, I agree to pay the amount by which the unpaid principal of

my Loan Account Balance exceeds the Credit Limit immediately, even if

you have not yet billed me. Any sums in excess of the Credit Limit will

not be secured by the Property, unless thev are for accrued but unpaid

interest or expenditures made pursuant to the security instrument

securing the Property.

8. PERIODIC BATE AND ANNUAL PERCENTAGE RATE. The periodic

rate used in calculating the Finance Charge is 0.0184931! o7" 6n6

the corresponding Annual Percentage Rate is 6.75000000 y".

The annual percentage rate includes interest and not other costs.

9. VARIABLE RATE. The annual percentage rate may change. lt will be

the value of the lndex described as the highest rate on corporate loans

posted by at least 75a/o of the USA's 30 largest banks and known as The

Wall Street Journal Prime Rate, plus - 0.5000 0/o percentage points.

A, Rate Changes. The annual percentage rate may increase if the

lndex rate increases. An lndex rate increase will result in a higher

finance charge and it may have the effect of increasing my periodic

Minimum Payment. A decrease in the lndex rate will have the

opposite effect as an increase. An lndex rate increase or decrease

will take effect on the first day of the following Billing Cycle. The

annual percentage rate can increase or decrease monthly after

remaining fixed for 1 dav . lf the

lndex rate changes more frequently than the annual percentage rate,

you will use the lndex rate in effect on the day you adjust the annual

percentage rate to determine the new annual percentage rate, In such

a case, you will ignore any changes in the Index rate that occur

between annual percentage rate adjustments. B, Rate Change Limitations. Annual percentage rate changes are

subject to the followinq limitation: 'Lifetime Cap. The-maximum Annual Percentage Rate that

can apply during the term of this Line of Credit is 16.0% or the

maximum annual percentage rate allowed by applicable law,

whichever is less.

10. FEES AND CHARGES. I agree to pay, or have paid, the fees and

charges listed in the FEES APPENDIX that appears at the end of this

Agreement.

11. PAYMENT DATE. During the term of this Agreement. a Minimum

Payment will be due on or before the Payment Date indicated on my

periodic statement for any Billing Cycle in which there is an outstanding

balance on my account. My Minimum Payments will be due monthly.

12. MINIMUM PAYMENT. On or before each Payment Date. I agree to

make a payment of at least the Minimum Payment amount. A. Minimum Payment Amount. The Minimum Payment will equal the

following:

(1) X Option 1. The amount of accrued finance charges on the

last day of the Billing Cycle.

(2) E Option 2. 1.5 percent of the Daily Balance on the last day

of the Billing Cycle or $100.00, whichever is greater.

B. Payment At Maturity. On the Maturity Date I must pay the entire

outstanding Loan Account Balance.

13. PRINCIPAL REDUCTION. Under Option 1 the Minimum Payment will

not reduce the principal balance outstanding on my Loan Account

Balance. Under Option 2 the Minimum Payment may not fully repay the

principal balance outstanding on my Loan Account Balance.

14. FINAL PAYMENT. At maturity under Option 1, I will repay the entire

outstanding Loan Account Balance in a single payment. At maturity under

Option 2, I may have to repay the entire outstanding Loan Account

Balance in a single payment.

HOME EOUITY VARIABLE DRAW AGREEMENT

EdE O 2ooo Bankers Systems. lnc., St. Cloud, MN Form USAA-HE 9i5i2003 base I of 5l
At that time you may, but are not obligated to, refinance this Line of

Credit. lf you do refinance this Line of Credit at maturity, I understand

that I may have to pay some or all of the closing costs normally

associated with a new loan.

I5,ADDITIONAL PAYMENT TERMS. lf my Loan Account Balance on a

Payment Date is less than the Minimum Payment amount, I must pay only

the amount necessary to reduce my Loan Account Balance to zero. lf I

otherwise fail to fully pay the Minimum Payment amount, you rnay, but

are not required to, advance money to me to make the payment, All the

terms o{ this Agreement will apply to such an advance. I can pay off all

or part of what I owe at any time. I must continue to make my periodic

Minimum Payment so long as I owe any amount, Unless otherwise agreed

or required by applicable law, payments and other credits will be applied

first to any charges I owe other than principal and finance charges, then

to any finance charges that are due, and finally to principal. No late

charge will be assessed on any payment when the only delinquency is

due to late fees assessed on earlier payments and the payment is

otherwise a full payment.

16. SECURITY. You have secured my obligations under this Line of Credit

by taking a security interest (by way of a separate security instrument

dated December 20, 2005 ) in the following Property:

5514 N CRESCENT RIDGE DR

TUCSON, AZ 85718

Property securing any other loans that I have with you may also secure

this Agreement.

17. PROPERTY INSURANCE. lwill insure or retain insurance coverage on

the Property and abide by the insurance requirements of any security

instrument securing this Line of Credit.

18. DEFAULT, I will be in default if any of the following occur.

A, Payments, I Jail to make a payment as required by this

Agreement. lf the Property is located in lowa I will be in default if I

fail to make a payment within 10 days of its due date.

B. Property. My action or inaction adversely affects the Property or

your rights in the Property.

C. Fraud. I engage in fraud or material misrepresentation in

connection with this Line of Credit. This will not be an event of

default if the Property is located in ldaho, lowa, Kansas, Maine,

Missouri, or South Carolina.

19. REMEDIES. After I default, and after you give any legally required

notice and opportunity to cure, you may at your option do any of the

following: A. Termination and Acceleration, You may terminate this Line of

Credit and make all or any part of the amount owing by the terms of

this Agreement immediately due. B, Advances. You may temporarily or permanently prohibit any

additional advances.

C. Credit Limit. You may temporarily or permanently reduce the

Credit Limit.

D, Additional Security. You may demand additional security or

additional parties to be obligated to pay this Agreement.

E. lnsurance Benefits, You may make a claim for any and all

insurance benefits or refunds that may be available on my default.

F. Payments Made On My Behalf. You may make amounts advanced

on my behalf immediately due, and you may add these amounts to

the Loan Account Balance.

G. Sources. You may use any and all remedies you have under

applicable law or any agreement securing this Agreement.

Except as otherwise required by law, by choosing a remedy you do not

give up your right to use another remedy. You do not waive a default if

you choose not to use a remedy, By electing not to use any remedy you

do not waive your right to later consider the event a default and to use

any remedies if the default continues or occurs again.

20. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after

default, to the extent permitted by law. I agree to pay all expenses of

collection, enforcement or protection of your rights and remedies under

this Agreement. All fees and expenses will be secured by the Propertv.

Unless the Property is located in Arkansas or Minnesota these expenses

are due and payable immediately, and if the expenses are not paid

immediately, they will bear interest from the date of payment until paid in

full at the highest rate in effect as provided for in the terms of this

Agreement. Unless the Property is located in New Hampshire, to the

exlent permitted by the United States Bankruptcy Code, I agree to pay

the reasonable aftorneys' fees you incur to collect this debt as awarded

by any court exercising jurisdiction under the Bankruptcy Code.

I agree to these additional terms. if the Property is located in the state

referenced:

Alabama or lowa: Expenses include, but are not limited to, court costs

and other legal expenses.

Alaska, Arizona. Michigan, Mississippi, Nebraska, New Mexico, Nevada,

Oregon, Pennsylvania, Vermont, or Washington: Expenses include, but

are not limited to, attorneys'fees, eourt costs and other legal expenses.

Arkansas: Expenses include, but are not limited to, reasonable attorneys,

fees (as determined under Ark. Code Ann. 5 16-22-308), court costs,

and other legal expenses. lf not paid immediately, these expenses will

bear interest from the date of payment until paid in full at the same

interest rate in effect as provided in the terms of this Agreement,

California: Expenses are limited to the costs actually incurred for

recording, mailing. publishing, and posting legally required notices. costs

of postponement not to exceed $50, litigation or trustee sale fees, and

attorneys'fees allowed by law.

Colorado or South Carolina: Expenses include, but are not limited to,

reasonable attorneys' fees not in excess of 1 5 percent of the unpaid debt

after def ault and referral to an attorney who is not your salaried

employee.

Connecticut: Expenses include, but are not limited to, your reasonable

attorneys' fees arising after the commencement of a lawsuit. up to 15

percent of the entered judgement so long as the fees arise from an

attorney who is not your salaried employee, court costs and other legal

expenses.

District of Columbia or North Carolina: Expenses include, but are not

limited to, reasonable attorneys' fees not exceeding 1 5 percent of the

outstanding balance of this Agreement.

Florida: Expenses include, but are not limited tor attorneys'fees of 1O

percent of the principal sum due or a larger amount as the court judges

as reasonable and just, court costs, and other legal expenses.

Georgia: Expenses include, but are not limited to, attorneys' fees, court

costs, and other legal expenses. lf this debt is collected by or through an

attorney after maturity, I agree to pay 1 5 percent of the principal and

interest owing as attorneys' fees.

Hawaii. Massachusetts, Montana, Rhode lsland, Tennessee, or Utah:

Expenses include, but are not limited to, reasonable attorneys' fees, court

costs, and other legal expenses.

ldaho, Indiana, or Wyoming: Expenses include. but are not limited to.

reasonable attorneys' fees after default and referral to an attorney who is

not your salaried employee.

lllinois: Expenses include reasonable attorneys' fees.

Kansas: Expenses include, but are not limited to, collection agency fees

or attorneys' fees and other court costs and legal expenses up to 1 5

percent of the unpaid amount due and payable if referred to someone

other than a salaried employee,

Kentucky: Expenses include, but are not limited to. reasonable attorneys'

fees as provided by law, and court costs. This amount does not include

attorneys' fees for your salaried employee.

Louisiana: Expenses include attorneys' fees not in excess of 25 percent

of the unpaid debt after default and referral to an attorney for collection.

Maryland: Expenses include, but are not limited to, reasonable attorneys'

fees (if not paid to your salaried employee). court costs and other legal

expenses.

Maine: Expenses include, but are not limited to, your attorneys' fees not

in excess of 1 5 percent of the unpaid debt after referral to an attorney

who is not a salaried employee of yours (unless this loan constitutes a

supervised loan under the Maine Consumer Credit Code), and reasonable

attorneys'fees, legal expenses and other reasonable costs incurred in

realizing on the Property securing the Agreement.

Minnesotar Expenses include, but are not limited to, attorneys' fees, court

costs and other legal expenses. lf not paid immediately, these expenses

will bear interest from the date of payment until paid in full at the

contract interest rate in effect as provided in the terms of this

Agreement.

HOME EOUITV VARIABLE DRAW AGREEMENT

ffifu o 2ooo Bankers Systems, lnc., St. Cloud, MN Form USAA-HE 9l5l2oo3 (page 2 of 5)
Missouri: Expenses include, but are not limited to, attorngys'-fees, not in

excess of 1 5 percent of the amount due and payable, if referred to an

attorney who is not your salaried employee, together with any assessed

court costs.

New Hampshire: Expenses include. but are not limited to, reasonable

attorneys''fees, cor"irt costs and other legal expenses. I will recover

reasonable attorneys' fees if I prevail in an action brought by either of us

on this Agreement. lf I am partially successful in such an action. the court

may withhold from you an amount for attorneys' fees considered

eqriitable by the court. This provision also shall apply if I file a petition or

other claim for relief under any bankruptcy rule or law of the United

States, or if such petltion or other claim for relief is filed against me by

another.

Ohio or Virginia: Expenses include (unless prohibited by law) reasonable

attorneys' fees, court costs and other legal expenses.

Oklahoma: Expenses include, but are not limited to. court costs, and

other legal expenses. Expenses do not include attorneys'fees except as_

awarded by a court in accordance with other (non UCCC) statutes of

Oklahoma.

South Dakota: Expenses include, but are not limited to, court costs and

other legal expendes. including any reasonable attorneys'fees if allowed

by law.

West Virginia: Expenses include all costs and fees authorized by law.

21. SUSPENSION OF CREDIT AND REDUCTION OF CREDIT LIMIT' You

may temporarily prohibit me from obtaining additional advances or reduce

my Credit Limii during any period in which any of the following are in

effect.

A, The value of the Property securing this Line of Credit declines

significantly below its appraised value for purposes of this Line of

Credit; B. You reasonably believe that I will not be able to meet the

repayment requirements under my Line of Credit due to a material

change in my financial circumstances;

C. l-am in ciefault of a material obligation under this Line of Credit. I

understand that you consider all of my obligations to be material.

Categories of obligations that you consider material include, but are

not limited to: mybbligation to not commit fraud or misrepresentation

in connection with this Line of Credit; my obligation to meet the

repayment terms of this Line of Credit; my obligation to.not.adversely

afieit the Property or your rights in the Property; my obligation to pay

fees and charges; my advance obligations; my obligation to fulfill the

terms of the-instrument securing this Agreement. and any other

security instruments on the Property; my obligation to notify you; and

my obligation to provide you with information;

D. Gorlernment action prevents you from imposing the annual

percentage rate provided for in this Agreeme.nt;

E. fne priority of your security interest is adversely affected by

governm6nt aciion to the extent that the value of the security interest

ls less than 120 percent of my Credit LimiU

F. The maximum annual percentage rate allowed under this

Aqreement is reached;

GI You are notified by a regulatory agency that continued advances

constitute an unsafe and unsound practice; or

H. Any Borrower requests a suspension of credit privileges.

ln order to reinstate my credit privileges under the original terms of this

Agreement. I must send you a written request to that effect- My cre.dit

pri-vileges will only be reinstated if you determine that the condition which

baused you to prohibit additional extensions and/or reduce the Credit

Lirnit no longer 'exists. lf appraisal or credit report fees are incurred in

making this ietermination, you may (if allowed by applicable law) charge

me suih fees. lf credit privileges were suspended at my request. they

need not be reinstated unless all Borrowers request reinstatement.

22. SET-OFF, You may set-off any amount due and payable under the

terms of this Agreem6nt against my right to receive money from you,

unless prohibited oy applicSble law. Foi example. your.right of.s-et-off

does not apply to an lndividual Retirement Account or other tax-deferred

retirement account.

Maine: [f I am in default, you may exercise your right of set-off after you

give any legally required notice and opportunity to cure.

23. DUE ON SALE. You may, at your option, declare the entire balance of

this Agreement to be immediately due and payable up-0r.1 th-e creation 0f,

or thelontract for the creation of, a transfer or sale of the Property. This

right is subject to the restrictions imposed by federal law (12 C'F'R' Pt'

591), as applicable.

24. AMENDMENTS. Generally, the terms of this Agreement cannot be

changed. You may, however, make the following changes:

A. You may make changes that I agree to in writing at the time of

the change.

. B. You may make changes that will unequivocally benefit me.

C. You may make insignificant changes.

D. You may change the lndex and margin if the original lndex

becomes unavailable. Any new index will have an historical

movement substantially similar to the original lndex, and together

with the new margin, produce an annual percentage rate substantially

similar to the rate in effect at the time the original lndex became

unavailable. E. You may make changes that are described elsewhere in this

Agreement,

25. TERMINATION. I may terminate this Line of Credit at any time upon

written notice to you. Termination by one Borrower terminates the Line of

Credit for all Borrowers. Termination will not affect my obligation to repay

advances made prior to the termination, nor will it alter my duties to

perform under the terms of an instrument securing this Agreement until

such instrument is released. Upon termination I will return to you any

remaining Convenience Checks in my possession that were issued or

used in connection with the Line of Credit.

26. WAIVERS AND CONSENT. To the extent not prohibited by law and

except for any required notice of right to cure for the {ailure to make a

required payment, I waive protest, presentment for payment. demand,

notice of acceleration. notice of intent to accelerate and notice of

dishonor. To the extent not prohibited by law, I and any other party to

this Line of Credit. also consent to the following actions that you may

take, and waive defenses that may be available based on these actions,

or based on the status of a party to this Line of Credit. A. You may renew or extend payments on this Agreement

regardless of the number of such renewals or extensions.

B. You may release any Borrower or other person who may be liable

for the indebtedness under this Agreement.

C, You may release, substitute or impair any Property securing this

. Agreement.

D. You may invoke your right of set-off.

E, You may enter into any sales or repurchases of this Agreement to

any person in any amounts and I waive notice of such sales or

repurchases. F, I agree that any Borrower is authorized to modify the terms of

this Agreement or any other Line of Credit document.

G. You may inform any party who guarantees this Line of Credit of

any loan accommodations, renewals, extensions, modifications,

substitutions, or future advances.

H. Georgia: lf the Property is located in Georgia, I waive my right to

the benefit of exemption as to my Property securing, or to secure.

this Agreement. L lndiana: lf the Property is located in lndiana, I give up any rights I

may have under any valuation and appraisement laws which apply to

me,

No delay or forbearance on your part in exercising any of your rights or

remedies will be construed as a waiver by you, unless such waiver is in

writing and is signed by you.

27.TAX DEDUCTIBILITY. I should consult a tax advisor regarding the

deductibility of interest and charges under this Line of Credit.

28. PERIODIC STATEMENTS. lf I have an outstanding balance on my

account or have any account activity, you will send me a periodic

statement at the end of each Billing Cycle. This periodic statement will

reflect, among other things, credit advances, finance charges, other

charges. payments made, other credits, my previous account balanie and

my new account balance. The periodic statement will also identify my

Minimum Payment for the cycle and the date it is due {Payment Date).

29. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS' My

obligation to pay this Line of Credit is independent of the obligation of any

other person who has also agreed to pay it. You may sue me alone, or

anyone else who is obligated on this Line of Credit, or any number of us

together, to collect on this Line of Credit. Extending this Line of Credit or

new obligations under this Line of Credit, will not affect my duty under

this Line of Credit and I will still be obligated to pay this Line of Credit.

The duties and benefits of this Line of Credit will bind and benefit the

successors and assigns of you and me.

30. INTEGRATION AND SEVERABILITY. This Agreement is the complete

and final expression of the agreement. lf any provision of this Agreement

is unenforceable, then the unenforceable provision will be severed and

the remaining provisions will still be enforceable'

31.INTERPRETATION. Whenever used, the singular includes the plural

and the plural includes the singular. The section headings are for

convenience only and are not to be used to interpret or define the terms

of this Agreement.

HOME EOUITY VARIABLE DRAW AGREEMENT

ffiAig. o2ooo Bankers Systems, Inc, St. cloud, MN Form usAA-HE 91512003

(page 3 of 5)
32, NOTICE, FINANCIAL REPORTS, AND ADDITIONAL DOCUMENTS.

Unless otherwise required by law, any notice will be given by delivering it

or mailing it by first class mail to the appropriate. party's ad-dress above..

or to any-othei address designated in writing' No-tice to one Borrower will

be deenied to be notice to all Borrowers. I will inform you in writing of

anv chanqe in my name, address or other application information. I will

ordvide v:ou anv financial statement or information you request. All

f inancial statemirnts and information I give you will be correct and

complete. I agree to sign. deliver, and file any additional documents or

certiiications ihat you may consider necessary to perfect. continue, and

preserve my obligations under this Line of Credit and to confirm your lien

status on any Property. Time is of the essence.

33. CREDIT INFORMATION. I agree to supply you with whatever

information you reasonably feel you need to decide whether to continue

this Line of 'Credit, You will make requests for this information without

undue frequency. and will give me reasonable time in which to supply the

information.

California: If the Property is located in California, as required by Iaw, I am

hereby notified that a negative credit report reflectin_g on my.credit record

may 6e submitted to a ciedit reporting agency if I fail to fulfill the terms

of my credit obligations.

Utah: Notice of Negative Credit Report. As required by Utah law, I am

hereby notified that a negative credit report reflecting on my credit record

may be submitted to a credit reporting agency if I fail to fulfill the terms

of my credit obligations.

34. APPLICABLE LAW. You are a federal savings bank located in Texas.

This Agreement's interest rate and related charges are-made pursuant.to.

and governed by, the laws of Texas and the United States of America.

The law of the state where the Property is located will apply to the extent

legally required.

State specific text applies to the extent specific-ally provided above, if the

Property is located in the specific jurisdiction referenced.

Marvland: I aqree that this Line of Credit is subject to the Revolving Credit

Provisions of-Maryland law, as amended (Md. Commercial Law ll Code

Ann., Title 12. Subtitle 9).

35. STATE NOTICES. The following provisions apply to the extent the

Property is located in the state referenced:

Alaska: I am personally obligated and fully liable for the amount due under

this Agreemeht. You have the right to sue on the Agreement and obtain a

personal iudgment against me for satisfaction of the amount due under

the Agredment either before or after a judicial foreclosure of the,mortgag_e

or deeid of trust under Alaska Statutes 5 5 09.45.170 through 09.45.22O.

Maryland: If the entire Credit Limit is not disbursed at.this Agreement's

exeiution, I may. at my option, pay Maryland recordation tax on the

entire Credit Limit at closing. or I may pay Maryland recordation tax on

any initial advance at closing, and on any future .advance at the time of

eaih such advance. lf I pay the Maryland recordation tax on the entire

Credit Limit at closing, my total tax liability will be satisfied, regardless.of

the amount of any futurd advances that may subsequently be made.by

you to me. lf, however, I elect to pay the required Maryland.recordation

iax as advances are made, I will have seven (7) days to file with the clerk

of the court where the security instrument is recorded a verif ied

statement of the amount of the additional debt incurred as each advance

is made, and I must pay the applicable Maryland recordation tax on that

additional debt, or I may be penalized by a fine of up to $500.00 or

imprisonment for up to 6 months for failing to do so as provided in

514-1012 of the Tax-Property Article of the Annotated Code of Maryland.

Missouri: ORAL AGREEMENTS OR COMMITMENTS TO

LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM

ENFORCING REPAYMENT OF A DEBT INCLUDING

PROMISES TO EXTEND OR RENEW SUCH DEBT ARE

NOT ENFORCEABLE. TO PROTECT YOU (BORROWER)

AND US (LENDER) FROM MISUNDERSTANDING OR

DISAPPOINTMENT, ANY AGREEMENTS WE REACH

COVERING SUCH MATTERS ARE CONTAINED IN THIS

WRITING, WHICH IS THE COMPLETE AND EXGLUSIVE

STATEMENT OF THE AGREEMENT BETWEEN US,

EXCEPT AS WE MAY LATER AGREE IN WRITING TO

MODIFY IT.

North Dakota: lF PERMITTED BY APPLICABLE LAW, THIS OBLIGATION

MAY BE THE BASIS FOR A PERSONAL ACTION AGAINST THE

PROMISOR OR PROMISORS IN ADDITION TO OTHER REMEDIES

ALLOWED BY LAW,

Pennsvlvania: NOTICE TO BORROWER: THIS DOCUMENT

CONTAINS PROVISIONS FOR A VARIABLE INTEREST

RATE.

IOWA: lmoortantr Read before sionino. The terms

Agreement Aoreement should be rgade carefullv caref-ullv because because onlyl

teYms in writino are enforceable. Nb other terms

oromises oromises not cbntained c"ontained in this written written contract contract

lggally leoallv enforced. enforced,. You.,may You mav ghange cqthe termsr

A[redment only by another 'larritten -agreernent.

36, OTHER TERMS. lf checked, the following addenda are attached

and made a part of this Agreement:

A. E Automatic Withdrawal

of this

those

or oral

nav be )f 'this m

o

B.n

c.n

D.tr

Credit lnsurance

Discounted Rate

37. ADDITIONAL TERMS.

(For purposes of this Notice, "You" means Mortgagor)

1. Do not sign this paper before you read it. 2. You are entitled to a copy of this paper. 3. You may prepay the unpaid

balance at an! time wit'hout penalty and may be entitled to receive a refund of unearned charges in accordance with law.

4. lf you prepay the unpaid balance, you may have to pay a minimum charge not greater than seven dollars and fifty cents.

SIGNATURES. I understand that terms following a E only apply if checked. By signing, I agree to the terms of this Agreement and acknowledge

receipt of a copy of this Agreement.

BORROWER:

XXX

WILLIAM R. DONGES

HOME EOUITY VARIABLE DRAW AGBEEMENT

E6;E O 2000 Bankers Systems, lnc.. St. Cloud, MN Form USAA'HE 9/5/2003

(Page 4 of 5l
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 ln Case of Errors or Ouestions About Your Bill

lf you think your bill is wrong, or if you need more information about a transaction on your bill, write us at the address listed on your bill' Write to us

as soon as possible. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You can

telephone us, but doing so will not preserve your rights.

ln your letter, give us the following information: (a) Your name and account number, (b) The dollar amount of the suspected error, (c) Describe the

error and explain, if you can. why you believe there is an error. lf you need more information, describe the item you are not sure about.

lf you have authorized us to pay your bill automatically from your savings, checking or other account. you can stop the payment on any amount you

think is wrong. To stop the payment your letter must reach us three business days before the automatic payment is scheduled to occur.

Your Rights and Our Responsibilities After We Receive Your Written Notice

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 bill was correct.

After we receive your lefter, 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 bill that are not in question.

If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. lf 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. ln either case, we will

send you a statement of the amount you owe and the date that it is due.

lf 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 ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we

must tell you the name of anyone we reported you to, We must tell anyone we report you to that the matter has been settled betwean us when it

finally is.

lf we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct.

FEES APPENDIX

ADDTTTONAL FTNANCE CHARGES. I asree to pay, or have paid, the following ADDITIONAL FINANCE CHARGES:

o E Origination Fee. An origination fee of

o n Points.

OTHER FEES AND CHARGES. I agree to pay, or have paid, the following additional fees and charges:

a

o

a

a

o

a

K Recording Fee.

fl Appraisal Fee.

I ltt" search Fee.

E r"r"".

n titt" lnsurance.

n Annual Fee. A fee of

Account Balance

s 11.00 POC .

$

t

$

I

$

0.00 .

due annually in order to continue this Line of Credit. You will add this amount to my Loan

o E R"trrn"d Check Charge. A charge not to exceed S 1 5'00

connection with this Line of Credit that is returned because it has been dishonored.

E Rooa Determination Fee. $

for each check or negotiable order of withdrawal I issue in

tr

a

e

a

a

o

a

tr

tr

tr

tr

HOME EOUITY VARIABLE DRAW AGREEMENT

ffifu o 2ooo Bankers systems, lnc.. St. cloud, MN Form usAA-HE 9/5/2003 (page 5 of 5)
ADDENDUM TO HOME EQUTTY LII{E OF CREDIT AGREEMENT

Dated Decembei 20,2005

This Addendum to Home Equity Line of Credit Agreement (the "Addendum") is incorporated into

and amends and supplements the Home Equity Line of Credit Agreement/Texas Home Equity Line

of Credit/Equity Line of Credit Agreement and Disclosure dated December 20r 2005 between

USAA Federal Savings Bank and CAROLYN R. DONGES and WILLIAM R- DONGES

evidencing a home equity mortgage loan to CAROLYN R. DONGES and WILLIAM R

DONGES (the "Credit Agreement"). Terms defined in the Credit Agreement shall have the same

meaning in this Addendum unless expressly stated to the contrary. Notwithstanding any contrary

ianguage in the Credit Agreement, the following terms shall apply.

Upon my request and at my option, and with your consent, I may convert all or a portion of my

Loan Account Balance to a segment within my Loan Account Balance (a "Fixed Segment") that

will bear a fixed rate of interest for a certain period of time and require me to repay it at a fixed

monthiy payment in addition to my Minimum Paynent (my "Fixed Segment Payment"; the sum of

my Minimum Pal.rnent and my Fixed Segment Payment being my "Total Payment"). I may choose

thl length of the Fixed Segment as a certain number of months, subject to a minimum length of

twelve months and a maximum length of 180 months, and the maturity date of any Fixed Segment

may not extend beyond the Maturity Date of my Credit Agreement. You will determine the fixed

rate of interest for a particular Fixed Segment as the value of the Index on the date of my request

plus a margin in accordance with the foliowing scheduie:

Lenglh of Fixed Segment

12 months to 36 months

37 months to 48 months

49 months to 60 months

61 months to 72 months

73 months to 180 months

Margin

3.50 percentage points

3.75 percentage points

4.00 percentage points

4.25 percentage points

4,50 percentage points

The Index for the Fixed Segment will be the Three-year Treasury Weekly Average Annualized

Interest Rate as published in the WalI Street Joumal Key Interest Rate section on the third Tuesday

of the month previous to my request or the third Wednesday of the month previous to my request if

the third Tuesday follows a Federal Reserve Board Monday holiday. However, from time to time

you may offer lower rates or other features.

The minimum amount that I can convert is $4,000. I may not obtain more than five Fixed Segments

in any year, and I may not have more than frve Fixed Segments outstanding on my Loan Account

Balance at any one time. Once I have established a particular Fixed Segment, I cannot add

subsequent converted amounts to it. The aggregate principal amount of all Fixed Segments and my

remaining Loan Account Balance outstanding at any time during the tenl of my Line of Credit will

not exceed my Credit Limit.
Payrnents on any Fixed Segment will be due monthly as part of my Total Payment, and repayrrent of

each Fixed Segment must occur by the maturity date of the applicable Fixed Segment. The amount

of each monthly Fixed Segment Payment wiil be based on an amortization of the amount of the

Fixed Segment over the number of months of the Fixed Segrrent's length, which you will set in

accordance with my instructions, subject to the limitations described herein. The Total Payrnent due

on my account will be the sum of the Fixed Segment Payment(s) and the required Minimum

Payment on the variabie rate credit line portion of my Loan Account Balance (my "Line Balance"), if

any, as indicated on my periodic statement.

If I have established one or more Fixed Segments, each Total Payment I make will be allocated first

to my required Minimum Payment due on my Line Balance, if any, then to payments due on all

Fixed Segments in the order of age of the Fixed Segments, with the oldest Fixed Segment first.

Unless otherwise required by applicable law, each payment I make will be appiied within each Fixed

Segment and within the remainder of my Loan Account Balance flrst to any charges (other than late

charges) I owe other than principal and interest, then to interest that is due and finally to principal.

Late charges will not be deducted from my Total Payment, but will be collected separately. If I remit

an amount in excess of the required Total Payrnent for any month, the excess willbe allocated fust to

any late charges owing, then to the Line Balance, if any, then to the principal balances of the Fixed

Segments in the order of age of the Fixed Segments, with the oldest Fixed Segment first.

I may direct you in writing to allocate the excess amount to one or more specified Fixed Segments if

you receive my direction no later than the day you receive my payment arnount. My Total Paynent

for the succeeding month will not be deiayed because of any excess paln:rent. As and when the

amounts I pay are allocated to the principal balance of any Fixed Segment, the availabie credit on my

variable rate credit line will increase in an equivalent amount, not to exceed the Credit Limit.

Lines of Credit Secured by Texas Properties. Notwithstanding the foregoing, if my Credit

Agreement is a Texas Ilome Equrty Line of Credit, I may only obtain a Fixed Segment conversion

during my Draw Period, and the maturity date of any Fixed Segment will not extend beyond the

expiration of the Draw Period.

I will contact you by telephone or in writing to request a Fixed Segment or accept a promotional offer

for a Fixed Segment. I agree that the confirmation notice noting the terms of my Fixed Segment that

you mail me following your receipt of my Request will constitute the controltng record of my

Request and of our agreement for the Fixed Segment.

Except to the extent that this Addendum modifies the tenns of the Credit Agreement, all terms of the

Credit Agreement and the Mortgage/Deed of Trust/Deed to Secure Debt ("Security Instrument") are

ratified and confirmed and shall remain in full force and effect. The Security Instrument will continue

to secure each Fixed Segment and the Line Balance as each exists from time to time, and in the event

of default, you may exercise your rights as described in the Security Instrument against any and all

Fixed Segments and the Line Balance. To the extent of any conflict between the Credit Agreement

and this Addendum, this Addendum controls.

CAROIJYN R. DONGES Date WILLIAM R. DONGES Date