USAA FEDERAL SAVINGS BANK

Home Equity Loan Servicing

1 0750 McDermott Freeway

San Antonio, TX 78288-0899

Telephone: (800) 531-806S

Loan Number 821 1 1 055

WILLIAM DONGES

CAROLYN DONGES

5514 CRESCENT RIDGE DR N

TUCSON, AZ 85718

Application Number 326637

Agreement g31s March 25, 2005

Credit Limit $ 50,000.00

Lender Borrower Maturity g31s March 26 2024

H_OME EOUtTy LINE OF CREDTT AGREEMENT

meanings' -. 

a.ccrue immediately when you make an advance io-ru,-rt- tis'rr"J",r;"

Borrowers signing this Agreement, jointly and individually, and each the Daily Bai-ance each day. ineir ai the erid'of the Billing Cycte we a-o other..person or legal e.ntity that agrees to pay this Agreement. "You" all the daily finance charge amounts for the Billing CycL tbgether. To and "your" refer to the Lender, or any person or iegal entity that figure the Daily Balance, yiu first take the unpaid princiial Uatjnce ot my acquires an interest in the Line of Credit. aicount at ttr'e beginnin! of each day, add any new advances, and B. Agreement. Agreement refers to this Home Equity Line of Credit subtract any paymeit" or-credits that apply to debi repayment. Agreement, and any extensions, renewals. modifications or

substitutions of it. I' PERIODIC RATE AND ANNUAL PERCENTAGE RATE. The periodic

C. Billing Cycle. Billing Cycle means the interval between the days or rate used in calculating the FinanCe Charge;s 0.01438356 o7o sn6 dates of regular periodic statements.

D. credit aimit.'credit Limit means the maximum amount of principal the corresponding Annual Percentage Rate is 5'25000000 7".

you will permit me to owe you under this Line of Credit, at any one The annual percentage rate includes interest and not other costs. time' E. 

My credit Limit is stated at the top of this Agreement' g. VARTABLE RATE. The annuar percentage rate may change. lt will be Line of Credit. Line of Credit refers to this transaction generally,

including obligations and duties arising from the termi of dll the value of the lndex described as the highest rate on corporate loans

documents prepared or submitted for this transaction such as posted by at least 75o/o of the USA's 30 largest banks and known as The applications. security agreements, disclosures. and this Agreement, F,' Loan Account gitance, Loan Account Balance meanJthe sum of Wall StreetJournal Prime Rate, plus - O.5OO0 o/o percentage points.

the unpaid principal balance advanced under the terms of this A' Rate Changes. The annual percentage rate may increase if the

Agreement, finance charges, fees. and other charges that are due, lndex rate increases. An lndex rate increase will result in a higher

and other amounts advanced to me or others under the terms of this finance charge and it may have the effect of increasing my periodic

Line of Credit, Minimum Payment. A decrease in the Index 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 day . 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. ln such

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

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

subject to the following 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 A,mount. 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 [ 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 entir:e

outstanding Loan Account Balance.

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

n0t redu0e Ine principal Dalance 0utslanding 0n my L0an Acc0unt

Balanoe, 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.

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

228 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

a 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 exoess of the Credit Limit will

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

interest or expenditures made pursuant to the security instrument

securing the Property.

HOIV{E EOUITY VARIABLE DRAW AGREEMENT

Edeli o2ooo Bankers Systems, lnc., St. cloud, MN Form USAA-HE 9i5l2o03 lpage I of 5)
At that time you may, but are not obligated to, refinance this Line o{ 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.

IS.ADDIT|ONAL PAYMENT TERMS. If 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 iero. lf 

'l

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

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

terms of -this Agreement will apply to such an advance. I ian pay off all

or part of what I owe at any time. I must continue to make my i:eriodic Minimum Payment so long as I owe any amount. Unless otherwiie agreed

or required by applicable law, payments and other credits will be a[plied first to any charges I owe other than principal and finance charges. ihen 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 ihe 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

661s6 March 25, 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 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 fail to make a payment as required by this

Agreement. If 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 A,TTORNEYS' FEES. On or after

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

collection, enforcement or Drotection of vour riohts and remedies under

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

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

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

the reasonable attorneys' 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, bui

are not limited to. attorneys' fees, court 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 wili

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 1S

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 to, attorneys' fees of 10

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, lndiana, 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 bv 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 pereent 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- Iegal expenses and other reasonable costs incurred in

realizing on the Property securing the Agreement.

Minnesota: 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 effeot as provided in the terms of this

Agreement.

HOME EOUIry VARIABLE DRAW AGREEMENT

E(f,efu e2OOO Bankers Systems, lnc., St. Cloud, MN Ferm USAA-HE 9,/5/2003 (page 2 of 5)
Missouri:-Expen"ua lnslr'_de., but are not limited to, attorneys. fees, not in excess.of '1 5 percent of the amount dLre and payable, if'refe;red 6'a; attorney who is not your sararied emproyee, toieiher with any urr.i."J court costs.

New Hampshire: Expenses include, but are not limited to, reasonable attorneys.' fees, court costs. and other legal expenses. t witt iecovei reasonable attorneys'.fees if lprevail in an iction brought by;iihea;i';;

on this Agreement. If I am partiaily successfur in such a-n action, tnl corrt may withhold from you an amount for attorneys; i"eJ equrtabre by "onJio-ere,i the court. This provision also shall apply it I file a petition or other claim for relief under'any bankruptcy rute'or raw of tile unit;d states, or if such petition or other craim'foi reiiet ii tirea .gai;st;e-Ei another.

Ohio or Virginia: Expenses include (unless prohibited by law) reasonable attorneys'fees, court costs and other legal ixpenses.

Oklahoma: Expenses include, but are not limited to, court costs, and other.lega.l expenses. Expenses do not include attorneys, i;s-;i;pi;;

aw.arded by a court in accordance with other (non UCCC) statutes oi Oklahoma.

South Dakota: Expenses include, but are not limited to, court costs and other legal expenses, including any reasonable aftorneys, fees if aiowed by law.

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

21. SUSPENSION OF CREDIT AND REDUCTTON OF CREDIT L|MIT. you

may temporarily prohibit me from obtaining additional advances or reduce

my Credit Limit during any period in whiih any of the following are in effect.

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

s.lgnificantly 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, I am in default 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 ionsider rnaterial include, but are

not limited to: my obligation to not commit fraud or misrepresentation in connection with this Line of Credit; my obligation io meet the

repayment terms of this Line of Crediu my obligation to not adversely

affect th,e 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 oitligation to notify y6u; and

my obligation to provide you with information; D. Government action prevents you from imposing the annual

percentage rate provided for in this Agreement; E. The priority of your security interest is adversely affected by

government action to the extent that the value of the security interesi

is less than 120 percent of my Credit Limit; F, The maximum annual percentage rate allowed under this

Agreement 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 thaf effect. My credit privileges will only be reinstated if you determine that the condition which

caused 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 such _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 mbney from you.

unless prohibited by applicable law. For example, your right of sei-off

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

retirement account.

Maine: lf.l 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 thio Agreement to be immediately due and payable upon the creation ofr

or the contract for the creation of, a trans{er or sale of the Property. This

lght 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:

4, You may make changes that I agree to in writing at the time of the change.

E, Yo, 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 iruill have an- nistori""i

movement substantially similar to the original lndex, and together with. the new margin, produce an annual peicentage rate substa-ntiailv similar to the rate in effect at the time the ori[inar tnoei-oecam6

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 terminated the Lin; ;f credit for all Borrowers. Termination will not affect mv obliqation to reDav

adv-ances made prior to the termination, nor will it' atter" my dllies'i6 perform under the terms of an instrument securing this Agrelment until such instrument is released. Upon termination I ;ill retuin to Vo, lnv remaining Convenience Checks in my possession that were isiued o'r 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 failure io make a

required payment, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate' and notice oi dishonor. To the extent not prohibited by law, I and any other party to this Line of Credit. also consent to the iollowing 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. Yo.u may. renew or extend payments on this Agreement

regardless of the number of such renewals or extensions.

F. Yo,.t 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 iecuring, or to s6cure,

this Agreement. L lndiana: If 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 de.lay 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.f AX 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 periodii

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 bilance and

my new account balance. The periodic statement will also identify my Minimum Paymentforthe cycle and the date it is due (payment Datei,

29. JOINT AND INDIVIDUAL LIAB|L|TY 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 atone. oi

anyone else who is obligated on this Line of Credit, oi 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 OutV-unOer

this Line of Credit and I will still be obligated to pay this Lihe 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 io unenforoeable, then tho unenforoeablo provision will be sevEred and

the remaining provisions will still be en{orceable.

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 EQUITY VARIABLE DRAW AGREEMENT

E<6fu @ 2000 Bankers Systems, tnc., St. Cloud. MN Form USAA-HE 9/5/2003 [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 address above,

or to any other address designated in writing. Notice to one Borrower will

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

any change in my name, address or other application information. I will provide you any financial statement or information you request. All

financial statements and information I give you will be coirect and

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

certifications that 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: lf the Property is located in California, as reguired by 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.

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

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

may be submifted 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 specifically provided above, if the

Property is located in the specific jurisdiction referenced.

Maryland: I agree 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 Agreement. You have the right to sue on the Agreement and obtain a

personal judgment against me for satisfaction of the amount due under

the Agreement either before or after a judicial foreclosure of the mortgage

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

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

execution, 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

each such advance, lf I pay the Maryland recordation tax on the entire

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

the amount of any future advances that may subsequently be made by

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

tax 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 verified

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

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

514-l012 of the Tax-Property Article of the Ahnotated Code oi Maryland.

Missouri: ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM

ENFORGING 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 CONTATNED !N THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE 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 OBLtcATtON MAY BE THE BASIS FOR A PERSONAL ACTION AGAINST THE

PROMISOR OR PROMISORS IN ADDITION TO OTHER REMEDIES

ALLOWED BY LAW.

Pennsylvania: NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS FOR A VARIABLE INTEREST

RATE.

IOWA: lmportant: Read before siqnino. The terms of this Aqreement should be read careflllv'because onlv those

terms in writing are enforceable. Nb other terms'or oral

oromises not cbntained in this written contract mav be l.egally enforced.. You .may change the terms of 'this

Agreement only by another wfltten agreement.

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

and made a part of this Agreement:

A, E Automatic Withdrawal

B. E Credit lnsurance

C, E Discounted Rate

D.n

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

receipt of a copy of this Agreement.

BORROWER:

XXX

WILLIAM DONGES CAROLYN DONGES

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.

rr vou think vour bi, is wrons. ", ,, r}o"ti:y,.t,"s*t'}S3;'f,""lr5Jl:T,lJ.Sl"";l'ff:r+TH,: Y:.1'rn?t'.'oo.ess ,sted on your bir, 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 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 tell 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.

It 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

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

r 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:

o K Recording Fee.

o E Appraisal Fee.

o E lu" Search Fee.

o E Taxes,

r E Titte lnsurance.

$ 15.00 POC .

$

$

$

$

0.o0

r 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 K Returned Check Charge. A charge not to exceed $ 15'00

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

for each check or negotiable order of withdrawal I issue in

E Rood Determination Fee. $

n

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HOME EOUITV VARIABLE DRAW AGREEMENT

g<6e @2OOO Bankers Systems, lnc., St. Cloud, MN Form USAA-HE 91512003 (page 5 of 5)
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

WILLIAM DONGES

CAROLYN DONGES

5514 CRESCENT RIDGE DR N

TUCSON, AZ 85718

Application Number 326637

Agreement P31s March 25,2OO5

Credit Limit $

Maturity Date

50.000.00

Lender Botrower March 26,2024

H_OME EqUtTy LINE OF CREDTT AGREEMENT

- _ _._.._.__ - . . _ IOWA: This is a Consumer Credit fransaction

1. DEFINITIONS' ln this Agreement, these terms have the following 7. COMPUTATTON OF FINANCE CHARGES. Finance charges begin to

'"tlinS::^-^..-- TL^ -_^--_.__ n, n a.ccrue immediately whsn you make an lUuance-to me. To figure the meanings. A. Pronouns' .The pronouns "1." and "my" refer to all finance charge for each aif f ihg Cycle. a oaify pirioOiirui."ir'irrit"nili.O'ilv Borrowers signing this Agreement, jointly and individually. and each the Daily Baiance eacn oiy. ineh at the end'of the Billing Cycfe welJi other.,person or legal entity that agrees to pay this Agreement. "You" all the daily Jinance charje amounts for the eirring iycYell;;d;;,";; and "your" refer to the Lender, or any person or legal entity that figure the daily Balance, yLu first take the unpaid prlnciiat Uaia"ncJ ot my

ail rhe datty ttnance charge amounts for the Billing cycle together. To

figure the Daily Balance, you first take the unpaid prlncipal balance of my

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

?'__1s-l::T".t. Agreement refers to this Home Equity Line of credit subtraci ""y p;y;;;i" oiiruoit" tnrtiiiprv * aJii repiayment, Agreement, and any extensions, renewals, modifications or

substitutions of it. 8. PERIODIC RATE AND ANNUAL PERCENTAGE RATE, The periodic

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

228 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 LlMlT. 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

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

Limit will not be increased if loverdraw the Line o{ Credit. lf lexceed 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 they are for accrued but unpaid

interest or expenditures made pursuant to the security instrument

securing the Property.

C. Billing Cycle. Billing Cycle means the interval between the days or rate used in calculating the FinanCe Chafge;s 0.01438356 o7o 3p6 dates of regular periodic statements.

D. Credit iimit.'credit Limit means the maximum amount of principal the corresponding Annual Percentage Rate is 5.25000000 7o.

you will permit me to owe you under this Line of Credit. at any one The annual percentage rate includes interest and not other costs.

E:";*'"?'81[rii:l|:""T',s[:it[",J:J;tfl,',:f3l::[?JI'oenera,v. e. vARTABLERATE. rhe annuar percentase rate may change. rt wil be

including obligations and duties arising from the term-s of ;li the value of the Index described as the highest rate on corporate loans

documents prepared or submitted for this transaction such as posted by at least 75o/o of the uSA's 30 largest banks and known as The applications, security agreements, disclosures, and this Aqreement. .-..-. F. Loan Account Balance. Loan Account Balance means-the sum of Wall Street Journal Prime Rate, plus - 0,500O % 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 Eilling Cycle, The

annual percentage rate can increase or decrease monthly after

remainino fixed for 1 dav t{ tha

lndex rate changes.more frequently than the annual percentage rate,

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

percentage rate.to determine the new annual percentage rate. ln such

a case, you will ignore any changes in the lndex iate that occur

between annual percentage rate adjustments.

B...Rate Clangq Limitations. Annual percentage rate changes are

subject to the following limitation:

Lifetime. Cap. The-maximum Annual Percentage Rate that

can apply during can apply during apply the term of term of this Line of Credit is-l 16.0% 6.0% or the

maximum annual oercentaoe rate allowed hv annlieahlc Iarnr

whichever is less.

percentage rate allowed by applicable Iaw,

pay, or have paid, the fees and

that appears at the end of this

10. FEES AND CHARGES. I agree to

charges listed in the FEES APPENDIX

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 outstandinat

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

12, MINIMUM PAYMENT. O.n 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.

(2) n 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 princlpal 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, lwill repay the entire

outstanding Loan Account Balance in a single payment. AI maturity under Option 2, I may have te repay the entire gutstanding Lgan Aooount

Balance in a single payment.

HOME EOUITY VARIABLE DRAW AGREEMENT

EdE @ 2OOO Bankers Systems. lnc., St. Cloud, MN Form USAA-HE 9/5/2003 (page 1 of 5)
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.

15, A,DDITIONAL PAYMENT TERMS. lf my Loan Account Batance 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 may, but

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

terms of 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 otherwiie 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, ihen 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 paymeni 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

631s6 March 25, 2005 ) in the following Property:

5514 N CRESCENT RIDGE DR

TUCSON, AZ 85718

Property securing any other loans that I have with you may atso 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 fail 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 paymentwithin 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, Iowa, 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 oJ

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

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

additional advances. C. Credit Limit. You may temporarlly 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 Property.

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

AgrcemEnt. UnIESS the Property is located in New Hampshire, to the

extent permitted by the United States Bankruptcy Code. I agree to pay

the reasonable attorneys' 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, court 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 cosis.

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, Iitigation 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 ref erral 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 to, attorneys' fees of 10

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, lndiana, 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' Jees 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 6xp6ns6s and other reasonatrle costs incurred in

realizing on the Property securing the Agreement.

Minnesota: Expenses inelude, but a,re 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.

HOI\4E EOUITY VARIABLE DRAW AGREEMENT

EGE6 @ 2OoO Bankers Systems, lnc., St cloud, MN Form usAA-HE 9/s/2oo3 lpage 2 of 5)
Missouri: Expenses include, but are not limited to. attorneys' 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. court costs and other legal expenses. I will recover

reasonable attorneys' fees lf 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

equitable 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 petition 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 wlth other (non UCCC) statutes of

Oklahoma.

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

other legal expenses. 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 Limit 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, I am in default of a material obligation under this Line of Credit, I

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

Categories o{ obligations that you consider material include. but are

not limited to: my obligation 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

affect 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. Government action prevents you from imposing the annual

percentage rate provided for in this Agreemenu E, The priority of your security interest is adversely affected by

government action to the extent that the value of the securlty interest

is less than 120 percent of my Credit Limit; F. The maximum annual percentage rate allowed under this

Agreement 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

privileges will only be reinstated if you determine that the condition which

caused 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 such 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 set-off

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

retirement account.

Maine: lf 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

tnis Agreement to De immeoiately oue and payaole upon the creation oI,

or the contract 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 failure 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 oJ 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. I. 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 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 unenforoeable, then the unenforoeable provieion will be severed and

the remaining provisions will still be en{orceable.

3I.|NTERPRETATION- Whenever used. the singular includes the plural

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

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

gf this Agreement,

HOME EOUITY VARIABLE DRAW AGREEMENT

O<6fu @ 2oOO Bankers Systems, lnc,, St. cloud. MN Form USAA-HE 9/5l2oo3 (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 address above,

or to any other address designated in writing. Notice to one Borrower will

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

any change in my name. address or other application information. I will

provide you any financial statement or information you request. All

financial statements and information I give you will be correct and

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

certifications that 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 wharever

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

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

may be submified to a credit 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 specifically provided above, if the

Property is located in the specific jurisdiction referenced.

Maryland: I agree 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:

additional debt, or lmay 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 EXCLUSIVE

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 BEMEDIES

ALLOWED BY LAW.

Pennsvlvania: NOTICE TO BORROWER: THIS DOCUMENT CONTAINS PROVISIONS FOR A VARIABLE INTEREST

RATE.

IOWA: lmportant: Read before siqninq. The terms of this

Aqreement should be read careftllv'because onlv those

teYms in writinq are enforceable. Nb other terms'or oral promises not c-ontained in this written contract mav be leoallv enforced. You mav chanqe the terms of 'this

A[redment only by another fi/ritten Egreement.

36. OTHER TERMS. If checked, the following addenda are attached to

and made a part of this Agreement:

Automatic Withdrawal

Credit lnsurance

Discounted Rate

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D.E

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

thisAgreement.YouhavetherighttosueontheAgreementandobtain u 37'ADDITIoNALTERMS'

personal judgment against me for satisfaction of the amount due under

the Agreement either before or after a judicial foreclosure of the mortgage

or deed of trust under Alaska Statutes 5 5 09.45.170 through 09.45,22O,

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

execution, 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

each 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 future advances that may subsequently be made by

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

tax 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 verified

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

IOWA: NOTICE TO CONSUMER

(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 any 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.

BORROWER:

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

CAROLYN DONGES

HOME EOUITY VARIABLE DRAW AGREEMENT

Edehl; O 2ooo Bankers Svstems, lnc., s1. cloud, MN Form usAA-HE 9/5/2003 (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 Ouestions About Your Bill

lf you think your bill is wrong, or if you need more information about a transaction o.n 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 ls an error. lf you need more information, describe the item you are not sure about.

lf you have authorized us to pay your bilt 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 9O 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, In 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 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

ADDITIONAL FINANCE CHABGES. 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 n Appraisal Fee.

o E fitte Search Fee.

o E Taxes,

o E Title lnsurance.

$

$

$

$

o E Annual Fee, A fee of $

Account Balance

$ 15.00 POC .

0.o0

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

o E Returned Check Charge. A charge not to exceed $ 15.00 for each check or negotiable order of withdrawal I issue in

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

E nood Determination Fee. $

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HOME EOUITY VARIABLE DRAW AGREEMENT

E<6 O 2OOO Bankers Systems, lnc., St. Cloud, MN Form USAA-HE gl5l2oo3 (page 5 of 5)