a

USAA FEDERAL SAVINGS BANK

Home Equity Loan Servicing

1 0750 McDermott Freeway

San Antonio, TX 78288-0589

Telephone: (800) 531 -8065

Loan Number 231994

CAROLYN R. DONGES

WILLIAM R. DONGES

5514 N CRESCENT RIDGE DR

TUCSON, AZ 85718

Agreement Psls APril 9, 20O4

Credit Limit $ 50.000.oo

Lender Bottower Maturity a61s Aqril 9,.2024

HOME EqUtTy LINE OF CREDTT AGREEMENT

meanlngs' A. accrue immediately when you make an advance to me. T:o figur; the Pronouns. The pronouns "1," "me" and "my" refer to all finance charge tor'eacn eitti'ng Cycte. " auifv p"iioOic rate is .uftlpfi"o Ov Borrowers signing this Agreement, jointly and individually, and each the Daily Baiance eacr, oiv. irreir atthe e;d';f ihe Billing Cycle we add other person or legal entity that agrees to pay this Agreement. "You" all the daily finance "rriig" ,rnornts for the Billing cycle together. To and "your" refer to the Lender, 

-or 

any person or iegal entity that figure the fiaity SaianJe, you first take the unpaid principal balance of my

B' Agreement. Agreement refers to this Home Equity Line of Credit subtract 

"ny 

puyrn"it" or'credits that apply to debt repaymenr. Agreement, and any extensions, renewals, modifications or

substitutions of it. 8. PERIODIC RATE AND ANNUAL PERCENTAGE RATE. The periodic C. Billing Cvcle. Billing Cycle means the interval between the days or rate used in calcutating the Finance Charge ;s 0.00958g04 y" 3.6 dates of regular periodic statements.

D. Credit Limit. credit Limit means the maximum amount of principat the correspondlng Annual Percentage Rate is 3.500000o0 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' Mv credit Limit is stated at the top of this Agreement' E. Line of Credit. Line of Credit 9. VARTABLE RATE. The annuar percentage rate may change. rt wiil be refers to this transaction generally,

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

documents prepared or submitted for this transaction such as

applications, security agreements, disclosures, and this Agreement. posted by at least 75o/o of the USA's 30 largest banks and known as The

F. Loan Account Balance. Loan Account Balance meanJthe sum of Wall Street Journal Prime Rate, plus - 0.5000 % 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 rny peri-odic

Line of Credit. Minimum Payment. A decrease in the lndex rate will hive the G. Property. Property means any real or personal property that opposite eJfect as an increase. An lndex rate increase or decrease

secures my obligations under this Line of Credit. will take effect on the first day of the following Billing Cycle. The

annual percentage rate can increase or decrease monthly after

Other important terms are defined throughout this Agreement. remaining fixed for j daV . lf the

2. pRoMrsE ro pAy. I promise to pay to you or your order, at your [f;ll?t",:ifl:ti"ie"Rj'i"t:?+]*:x'i^y;.?TJ;EJtrillt:";j:i address, or at such other location as you may designate, so much of the percentage rate to determine the new unnr"i-per""ntage rate. ln such C.redit Limit as may be advanced under this Agreement, plus finance h case, iou will ignore any changes in thd lndex rate that occur charges, fees, charges, costs, and expenses as described in this Line of between annual peicentage iate adj"ustments. Credit. 8.. .Rate Cfrangg Limitations. Annual percentage rate changes are subject to the following limitation: 3. AGREEMENT TERM. This Agreement begins on the Agreement Date Lifetime Cap. The maximum Annual Percentage Rate that

and continues unrl the Maturity Date. I may request advances ror ;'*ffif} XTlln",tX""J"":*JJ"tnJi"''Tf;SJ"t';'"";o?"0"'(1"",,S: 240 Months (Draw Period) beginning on the Agreement Date. whichever is less.

4. ADVANCES. I may request advances by the following methods: 10' FEES AND CHARGES: l.1sjgg.-tg- pay, or have paid, the fees and

A. I write a Convenience Check thai you h;;; ;ir;n".-"-ior tr,ut charges listed in the FEES APPENDIX that appears at the end of this

purpose. Agreement'

B' lrequest a withdrawal in person' by phone' or by mail' 

You will make the advance by advancing the amount 11. PAYMENT DATE. During the term of this Agreement, a Minimum

depositing 

directly to me, payment will be due on or before the payment Date indicated on my it in my transaction account, or by paying a designated third periodic statement for any Billing cycle in which there is an outstanding person or account. You will record the amount as an advance and bafanie on ,V aiCount. 

'lrly 

Minimum payments will be due monthly, increase my Loan Account Balance.

5. ADVANCE LrMrrAiloNs. you do not have to make_any advances l,liY1IlY,)iH"XXYY,=,tl;,?,i-",;,,i,'.1",H Fff[j"?*"XJDate' I asree to

guring any period in which.l have a right to cancel. Subject to the A.. Minimum Payment emouni. if,e lliriimrm Fayment will equal the limitations contained in this Agreement, when I request an advance you following:

will advance exactly the amount I request' (1) X option 1, The amount of accrued finance charges on the

6. CREDIT LIMIT. Subject to the terms and conditions of this last day of the Billing Cycle.

Agreement' I may borrow on this Line of credit up to the credit Limit' I 

agree not er E option 2. 1.5 percent of the Dairy Barance on the rast day to request or obtain an advance that will cause the unpaid

principal of my Loan Account Balance to exceed the Credit Limit. I of the Billing Cycle or $100.00, whichever is greater.

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

would cause the unpaid principal othy loan'Account Balance to be B. Payment At Maturity. On.the Maturity Date I must pay the entire

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

ii;:?fil#f[""'#lJ',t"XT$ ffiffiilT lfl"oi;JJ?;?;rtit:til? "*r""??fl|J 

13. pRrNcrpAL REDUciloN. Under option 1 the Minimum payment wiil

credit Limit. rasree to pay the amount by which ';; my 

ilit.p'iIIIp","'"! B:L,fs:ix#oEiiifi'?"'.r3"iftil:ir|;lrF:iil*f.1 ;:yTx, i,?,fii,s?"u"iilJ Loan Account Balance exceeds the Credit Limit immediately, even if orincipal balance outstanding on my Loan Account Balance. you have not yet billed me, Any sums in excess of the Credit Limit will

not be secured by the Prop€rty, unless they are for accrued but unpaid 14. FINAL PAYMENT" At maturity under Option 1, lwill repay the entire interesl or expenditures made pursuant to the security instrument o_utstanding Loan AcCount B;it;;e i" .1i"etG'pivment. At riatuiitv ,"J"i securins the Propertv' 

8fil::",,;l "iL1,i"[X1".::.repav 

the "nti'" l,i'ii"dins Loan Account

HOME EOUITY VARIABLE DRAW AGREEMENT

(page 1 of 5)
At that ti-me 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. 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 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 otherwise agreed

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

first to any eharges 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 Jees 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

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. E 16-22-308l, court costs,

and other legal expenses. lJ 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 $5O, 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 default 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 ,l 5

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 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 |imited 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 {ees

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

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.

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 effect as provided in the terms of this

Agreement.

dated April 9, 2OO4 ) 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 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 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 a{ter 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 reJunds 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

Agreement, Unless the Pr0perty is loOated in New Hampshire, to the

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

HOME EOUITY VARIABLE DRAW AGREEMENT

ffiAFEi o 2ooo Bankers Systems, Inc., St. cloud, MN Form usAA-HE 9/5/2003 lpage 2 of 5)
Missouri:.Expenses include, but are not limited to, attorneys, fees, not in

exeess of 15 percent of the amount due and payabre, it'reterreo io'an attorney who is not your salaried employee, toleiher witn any assesseJ court costs.

N.ew Hampshire: Expenses include, but are not limited to, reasonable attorneys.'fees, court cost-s and other legal expenses. I will recovei reaso.nable attorneys'fees if rprevair in an iction brought nv eitneioi-us

on this Agreement. lf I am partially successful in such a"n action, il,e cou.t may withhold from you an amount for attorneys, tees coniia-JreO- eq.uitable by the court. This provision also shall appty it t tile a pitrtlon ir other claim for relief under any bankruptcy rule'or law or t'rre uniteo States, or if such petition or other claim'foi relief is tited againsl ;e 

-by

another.

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

Oklahoma: Expenses include, but are not limited to, court costs, and other.legal expenses..Expenses do not include attorneys, tees eiiepiai awarded by a court in accordance with other (non 0CCC) statuiSs oi Oklahoma.

South_Dakota: Expenses include, but are not limited to, court costs and other legal expenses, including any reasonable attorneys, tees il ifliweJ by law.

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

21. SUSPENSION OF CREDIT AND REDUCTTON OF CREDIT LtMtT. you

may temporarily prohibit me from obtaining additional advances or reduce

my Credit Limit during any period in whiih any of the following aie 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 o{ 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 consider material include, nui aie 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 Credit; my obligation to not adversely affect th,e Property or your rights in the prbperty; my obligation to pay

fees and-charges; my advance obligations; my obliiation to Iulfill th; terms of the instrument securing this Agreemenl, and any other

security instruments on the Property; my obligation 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 Inierest 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.

In order to reinstate my credit privileges under the original terms of this Agreement, I must send you a written request to thaieffect. 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 privileg.es were suspended at my request, th6y

need not be reinstated unless all Borrowers request reinstaiement.

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. Foi example, your rigiit of sei-ofi

does not apply to an lndividual Retirement Account or othei 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 c-ure.

23. DUE ON SALE. You may. at your option, declare the entire balance of this.Agreementto be immediately due and payable upon the creation of,

or the contract for the creation of. a transfe; or sale df the property, This

right is subject to the restrictions imposed by lederat taw (12 C.F.R. ft. 591), as applicable.

24. AMENDMENTS. Generally, the terms of this Agreement cannot be changed. You may, however. make the lollowing changes:

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

!. Io, may make changes that will unequivocally benefit me. 9. Yo, may make insignificant changes. D. You may change the lndex an"d margin if the oriqinal lndex becomes unavaitable. Any new index iluilt h;;;;;"hi"t;;;; movement substantially similar to the.original lndex, and tog"th"i with the new margin, produce an annual peicentaqe rate substantiallv similar to the rate in effect at the time the ori[inai iil;;-i;";;;

unavailable.

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

25. TERMINATION. r may terminate this Line of credit at any time upon written-notice-to you. Termination by one Borrower terminates the Li;;;f Credit for all Borrowers. Termination will not affect my oblioation to reDav advances made prior to the termination, nor wiil it'arteimv orlilr"t6 perform under the terms of an instrument securing *ris agre;ment-uniir such 

remaining 

instrument is released. Upon termination I irill *tri"-t" V"ri"V convenience checks in my possession that were islued o'r used in connection with the Line of Cr6dii.

26. WAIVERS AND CONSENT. To the extent not prohibited by taw and except for any required notice of right to cure for'the fairure tb mate i

required payment, I waive protest,-presentment for payment;-d;;;;d; notice of acceleration, notice of intent to accelerate' und'n;i;; ;i dishonor. To the extent not prohibited by !aw, I and any .tt"i piity t" this Line of Credit, also consent to the iollowing actionl ih.i \ir -;;y

take, and waive defenses that may be available 5ased on *rese'actioni,

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.

9. Yo,.l 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 o{ 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 su6h sales or

repurchases.

F.. l-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, renewils, 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, o, tri sdcure, 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'apfily 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, u-nless such waiv6r 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 seni me a periodic

statement at the end of each Billing cycle. This periodic statement will reflect, among other things, credii advances, finance charges. other charges, payments made, other credits, my previous account bllance and

my new account balance. The periodic statement will also identify my Minimum Payment for the cycle and the date it is due (payment Ori"i.

29. JOINT AND INDIV|DUAL LtABILtTy AND SUGCESSORS. My obligation to pay this Line of credit is independent of the obligation ot any other person who has also agreed to pay it, you may sue ite alone, or anyole else who is obligated on this Line of Credit, oi any number oi us together, to collect on this Line of credit. Extending this Line of credit or

ne.w obligatio_ns under this Line of Credit, will not affect rV OutV-rni"i 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 witt bino and benefit the

successors and assigns of you and me.

30. INTEGBATION AND SEVERABILITY. This Agreement is the comptete

and final expression of the agreement. lf any pr6vision of this Agreement is unenforceable, then the unenforceable p'rovision 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 seition headings are for convenience only and are not to be used to interpret or defind the terms of this Agreement.

HOME EOUITY VARIABLE DRAW AGREEMENT

lpage 3 ol 5)
32. NOTICE, FINANCIAL REPORTS, AND ADDITIONAL DOCUMENTS. unless..otherwise required by raw, any notice wiil be given ov oJireiinqli

or mailing it by first class mail to the appropriate paity,s aO'OreiJ iUo"ue,

or to any other.address designated in writing. Notice to one Borrower wili be deemed to be notice to all Borrowers. iwill inform your:n *iiii"q'"i

any change in my name. address or other application information. t"w.ti provide. you any financial statement or iniormation you ,"qu".t. Aii financial statements and information I give you will ' be coireci anJ complete. I agree to sign, deliver, and file any additional documents or certifications th.?t ygu 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: 1f. the Property is located in California, as required by law, I am

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

m-ay be submitted to a credit reporting agency if I fail to fulfill the terms of my credit obligations.

Utah: Notig,e of Negative Credit Fleport. As required by Utah law, I am hereby notified that a negative credit report reflecting ori my credit iecord

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 bf 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 refer6nced.

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 ol 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.,l70 through 09.45.r2:O.

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

execution, I may, at my option. pay Maryland recordation iax 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_closin_g, my total tax liability 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 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

{9l1l""rl de.bt, or I may be penatiz-ed by a fine of up to $800.00 or rmpnsonment lor uo to 6 months for failing to do sb as provideA in 514-1012 of the Tai-property AriiCte ot t" A"nnoi.t.o coo" oi'M'uiiInj.

North Dakota: lF PERMITTED BY APPLTCABLE LAW, TH|S OBLIGAT|ON MAY BE THE BAS]S FOR A PERSONAL ACTION ACAIUbf"iHE PROMISOR OR PROMISORS IN ADDITION TO OTHER NEMCOT'E5 ALLOWED BY LAW.

lep1ey'r1a_1i.a; NQTICE TQ_ BQBBOWER: THIS DOCUMENT QeNl-ArNs pRovrstoNs FOR-A-VeHlAil_tr-rNiERESt RATE.

lpWA: lmportant: Read before signing. The terms of this Agreement should be reaij -car:ef"uiiv %eiause- onlv-irriii" terms rn wnttng are entorceable. No other terms'or oral promises Dot cbntained in this written contraCt-mav-bd l^egally enlorced.. You . may change the terms of 'thia

Agreement onty Dy anotner wiltten agreement.

37. ADDITIONAL TERMS.

36. OTHER TERMS. lf checked, the

and made a part of this Agreement:

A. E Automatic Withdrawal

B. E Credit lnsurance

C. n Discounted Rate

D.tr

following addenda are attached to

lvrlsqo_uril ORAL AGR_EEI/IENI$ OR COMMTTMENTS TO

Lg4lr_tyr g"ryEy. ExrE N_D_ c R EDt r oR ro 

-Fci 

ii6-EER' F-R cj,fi

ENE,oFCING REpAy_MENr oF A DEBi tr\ididDrNc PROMISES TO EXTEND OR RENEW SUCH OEES ARE NqT ENFORCEABLE, _T_O- PROTECT YOU IEONTOWERI a!!q__ug (LENDER) FROM M|SUNDERSTANDiNG-dii

Qr^q4!-!lqryr]v{E_ryr, ANy AGREEMENTS wE i*ncii COVERING SUCH MATTERS ARE CONTAINED IN ti{IS wj,lll!_g. wHrcH rs rHE coMpLErE AND ExCLUsivE STATEMENT OF THE AGREEMENT EETWEEN--U-S, EXCEPT AS WE MAY LATER AGREE Iru WNMNIE T-Ci MODIFY IT,

: NOTICE TO

(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 plper. 3. You may prepay the unpaid balance at any time without penalty and may be entitled to receive a refund of unearned charges in accorAance with law. 4. lf you prepay the unpaid balance, you may have to pay a minimum charge not greater than ieven dollars and fifty cents.

SIGNATURES. I understand that terms following a E

receipt of a copy of this Agreement.

BORROWER:

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

X x

HOME EOUITY VARIABLE DRAW AGREEMENT

ffifu o 2ooo Bankers Systems, tnc., Sr. Ctoud, MN Form USAA-HE gt5l2o13 (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 Biil 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 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. If 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.

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 CHARGES. I agree to pay, or have paid, the fotlowing ADDtTtoNAL FINANCE CHARGES:

. I 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:

r XRecordingFee. $ 11.OOPOC

E Appraisal Fee.

M riu" Search Fee.

n Tu*"..

E mt" Insurance.

I Annual Fee. A fee of

Account Balance

$

$

I

$

$

a

a

a

a

a

52.50 POC

0.00

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

r K Returned Check Charge. A charge not to exceed g 1 5.00 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.

o E Ftood Determination Fee. $

tr

tr

a

a

a

a

a

T

tr

n

HOME EOUITY VARIABLE DRAW AGREEMENT

g<-fuli @ 2ooo Bankers Systems, tnc., St. cloud, MN Form usAA-HE 9/5/2oo3 (page 5 of 5)
USAA FEDERAL SAVINGS BANK

Home Equity Loan Servicing

1 075O McDermott Freeway

San Antonio, TX 78288-0S89

Telephone: (800) 531-8068

Loan Number 231994

CAROLYN R. DONGES

WILLIAM R. DONGES

5514 N CRESCENT RIDGE DR

TUCSON, AZ A5718

Agreement 9"1s April 9, 2Q04

Lender Borrower

Credit Limit $ 5O,OOO.O0

Maturity P61s April 9, 2024

HOME EqUtTy L|NE OF CREDTT AGREEMENT

meanings' accrue immediately when you make an advance to me. To fioure the Ilrealrrlrgs' 

^,^^^..^^ tr,, A' accrue immediately when you make an advance to me. TYo figui6 the Pronouns' The pronouns "1," "me" and "my" refer to all finance charge for!""f, aitting 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

B. Agreement. Agreement refers to this Home Equity Line of Credit subtract uny puyreit, oi'credits that apply to debt repayment. Agreement, and any extensions, renewals, modifications or substitutions of it. PERloDlc 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 O.OOg5ggO4 yo 366 dates of regular periodic statements.

D. Credit Limit. Credit Limit means the maximum amount of principat the corresponding Annual Percentage Rate is 3'50000000 v,.

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.

EI"ri['"?'E1i6|-i]Xi:""T'3Hlt[1J:J;tl|f fgl::HJI generary. s. vARTABLE RArE. rhe annuar percentase rate may chanse. rt wir be

including obligations and duties arising from the termi of all the value of the lndex described as the highest rate on corporate loans documents prepared or submitted for this transaction such as

applications, security agreements, disclosures, and this Aqreement. posted by at least 75olo of the USA's 30 largest banks and known as The

F. Loan Account Balance. Loan Account Balance means-the sum of Wall StreetJournal Prime Rate. plus - O.5000 %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, {inance charges, fees, and other charges that are due, lndex rate increases. An lndex rate incfuase will result in a highei and other amounts advanced to me or others under the terms of this finance charge and it may have the effect of increasing my peri"ooic

Line of Credit. Minimum Payment. A decrease in the lndex rate rilill hdve the G, Property. Property means any real or personal property that opposite effect as an increase. An lndex rate increase or decrease

secures my obligations under this Line of Credit. will take effect on the first day of the following Billing Cycle. The annual percentage rate can increase or decrease mont'hly alter

Other important terms are defined throughout this Agreement. remaining fixed for 1 day . lf th"

2.PRoM|sEToPAY.lpromisetopaytoyoUoryourorder,atyourI.11i,?.,"":ix?'i"',&.I:,j':"o:?i:x1m:#J?

address, or at such other location as you may designate, so much oJ the percentage rate.to determine 1lre new 

"nnu"i 

plr""ntage rate. ln such c-redit Limit as may be advanced under this Agreement, plus finance b case, lou wili ignore any changes in irrjlnoex rate that occur charges, fees, charges, costs, and expenses as described in this Line of between'annual peibentage iate adj"ustments. Credit. B...Rate Cfran-gg Limitat"'rons. an,iuar percLntage rate changes are

subject to the Jollowing limitation:

and continues until

240 Months

3. AGREEMENT TERM. This Agreement begins on the Agreement Date Lifetime. Cap. The maximum Annual Percentage Rate that

can apply during the term of this Line of Credit is-1 6.0% 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 APPEND|X that appears 

'at t'he end oJ thii Agreement.

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

Payment will be due on or .b_efore the payment Date indicated on my periodic statement for any Bilting Cycle in which there is an outstandin[

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 Batance 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. PBINCIPAL REDUCTION. Under Option 't the Minimum payment will not reduce the principal balance outstanding on my Loan Account Balance. Under Option 2 the Minimum paymenl may not fully repay the

principal balance outstanding on mV 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 maiurity under Option 2, I may have to repay the entiie ouistanding Loan Account

Balance in a single payment.

the Maturity Date. lmay request advances for

(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 amouni 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 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 they are for accrued but unpaid

interest or expenditures made pursuant to the security instrument

securing the Property.

HOME EOUITY VARIABLE DRAW AGREEMENT

E{G'E @ 2OOO Bankers Systems, tnc., St. Cloud, MN Form USAA-HE 9/5/2003 (page 1 of 5l
dated April 9,2OO4

At that tjme you may, but are not obligated to, refinance this Line of

Credit. lf you do refinance this Line of eredit at maturity, I understand that I may have to pay some or all of the closing Costs normally

associated with a new loan.

I5.ADDIT|ONAL PAYMENT TERMS. lf my Loan Account Balance on a

Payment Date is less than the Minimum payment amount, t must pay onty the amount necessary to reduce my Loan Account Balance to ,ero. tf 'l

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

are not required to. advance money to me to make tne payinent. Ait tfre

terms of this Agreement will apply to such an advance.'l can pay off all

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

Minimum Payment so Jong as I owe any amount. Unless otherwiie agreed

or required by applicable law, payments and other credits will be afplied first to any charges I owe. other than principal and finance charges, ihen to any finance charges that are due. and finally to principall No late

charge will be assessed on any payment when ihe 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

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 additionar terms, if the property is rocated 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, oi Washington: Expenses include, bui

are not limited to, attorneys'fees, court cost; and other legal e*p"ns'"r.

Arkansas: Expenses include, but are not limited to, reasonable attornevs, fees (as determined under Ark. Code Ann. E 16-22_30gl, court coiii, and other legal expenses. lf not paid immediately, these expen""i *ifi bear interest from the date of payment until paid in full ai 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, cosis ol postponement not to exceed $50, litigatlon or trustee sale fees, and attorneys' fees allowed by law.

Colorado or South Carolina: Expenses include, but are not limited to, reasonabie attorneys' fees.not in excess of 1 E percent of the unpaid debi 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 1E percent of the entered judgement so long as the Jees arise irom 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 b percent of the outstanding balance of this Agreement.

Florida: Expenses include, but are not limited to, 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 b 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 expenseJ up to .l 5

pe.rcent of the unpaid amount due and payable lf 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 15 percent of the unpaid debt aftei 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.

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 effect as provided in the terms of this

Agreement.

) 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. Iwill insure or retain insurance coverage on the Property and abide by the insurance requirements of any se6urity

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 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. BEMEDIES. After I default. and afrer you give any legally required

notice_ and opportunity to cure, you may at your option d-o 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 remeciies under

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

Unle$o the Property is l0cated in Arkansas 0r Minnesota these expenses

are due and payable immediately, and if the expenses are ndt paid

im_mediately, 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 Agreemenr. Untess the property is located in New Hampshire, to the

extent permitted by the united states Bankruptcy code, I agree to pay

HOME EOUITY VARIABLE DRAW AGREEMENT

e<l@ @ 2OOO Bankers systems, lnc., st. Ctoud, MN Form USAA-HE 9/S/2OO3 lpage 2 o{ 5)
Missouri:,-Expenses include, but are not limited to, attorneys, fees, not in

excess of 15 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 recovei reasonable attorneys' fees if I prevail in an a=ction brought by either oi us

on this Agreement. lf I am partially successful in such a-n action, the couri may withhold from you an amount for attorneys, tees consiOered equitable.by the court. This provision also shall appty it lfile a petition oi other claim for relief under any bankruptcy rule or law of t'he United States, or if such petition or other claim foi reliel is filed againsl me-by another.

Ohio or Virginia: Expenses include (unless prohiblted by law) reasonable attorneys' fees. court costs and other legal 6xpenses.

Oklahoma: Expenses include, but are not limited to, court costs, and other.lega.l expenses..Expenses do not include attorneys, fees except ai 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 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 REDUGT|ON OF CREDTT LtMtT. 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 ol 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 oblioations to be material.

Categories of obligations that you consider miterial include. but are not limited to: my obligation to not commit fraud or misrepresentation in connection with this Line of Crediu my obligation io meet the

repayment terms of this Line of Credit; my obtigation to not adversely

afJect the Property or your rights in the propertt; my obligation to pay

fees and,charges; my advance obligations; my obligation to fulfill th6 terms of the instrument securing this Agreemenl, and any other

security instruments on the Property; my obligation to notify ybu; 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 yo.ur 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 praciice; or H, Any Borrower requests a suspension of credit privileges.

In order to reinstate my credit privileges under the original terms of this Agreement, I must send you a written request to thaieffect. My credii privileges will only be reinstated if you determine that the condition whictr

caused you to prohibit additional extensions and/or reduce the Credit Limit no.longer exists. If appraisal or credit report fees are incurred in making.this determination, you may (if allowed 6y applicable law) charge

me such .fees. lf credit privilege-s were suspended at my request, they need not be reinstated unless all Borrowers rdquest reinstaiemdnt.

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. Foi example, your right of sei-ofi

does not apply to an lndividual Retirement Account or othe; 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 dure.

23. DUE ON SALE. You may, at your option, declare the entire balance of this.Agreement to be immediately due and payable upon the creation of,

or the contract for the creation of. a transfei 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:

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

E. Yo, may make changes that will unequivocally benefit me.

9. Yo, may make insignificant changes. D. You may change the lndex and margin if the original lndex becomes unavailabre. Any new index iarirr rrave an" rii"t"iL"i movement substantially similar to the.original lndex, and togeth;; with the new margin, produce an annual peicentaqe rate substa;ttallv similar to the rate in effect at the tme the ori[inai il;;-i;;;;;

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

yrit-tgn-notice-to you. Termination by one Borrower terminates the Line oi credit for all Borrowers. Termination'will not a{fect my obrigation to repav adv_ances made prior to the termination, nor will it'alter"my dilies'i6 perform under the terms of an instrument securing this Agreement until such instrument is released. Upon termination I ;ill ,"tur"n to t", ;", remaining Convenience Checks in my possession that were isiued oi 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 mate i

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 !aw, I and any .th", p;;ty i; this Line of Credit, also consent to the iollowing acrionl that y;u ;;y take, and waive defenses that may be available 6ased 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.

9. Yoq 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.. l.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, modificationi,

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: lf the Property is located in lndiana, I give up any rights I

may have under any valuation and appraisement laws whicfr'ap[ty 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 waiv6r is in writing and is signed by you.

27.TAX DEDUCTIBILITY. I should consulr 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 sen-d me a periodi6

statement at the end of each Billing cycle. This periodic statement will reflect, among other things, credii advances, finance charges, othei charges, payments made. other credits, my previous account bilance and

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

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 ire alone, or

anyone else who is obligated on this Line of Credit, oi any number oi us together, to collect on this Line of Credit. Extending this Line of Credit or new.obligations under this Line of Credit, will not afJect my duty under 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 witt bino and benefit the

successors and assigns of you and me.

30. INTEGRATION AND SEVERAB|L|TY. This Agreement is the comptete

and final expression of the agreement. If any pr6vision oJ this Agreement is unenforceable, then the unenforceable provision will be sev6red and the remaining provisions will still be enforceable.

3I.INTERPRETATION. Whenever used, the singular includes the plural

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

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

of this Agreement.

HOME EOUITY VARIABLE DRAW AGREEMENT

g('e O 2O0O Bankers Systems, Inc., Sr. Ctoud, MN Form USAA-HE g/S/2003 lpase 3 of 5)
32. NOTICE, FINANCIAL REPORTS, AND ADDITIONAL DOCUMENTS.

Unless..otherwise. required by l?w, any notice will be given Uy Oeiiveiing ii

or mailing it by first class mail to the appropriate paity,s address aboie,

or to any other address designated in writing. Notice to one Borrower wili be deemed to be notice to bll Borrowers. iwill inform vou in writino"oi

any change in my name, address or other application intormation. L"wili provide. you any financial statement or inidrmation Vo, i"qu"rt. 'Aii

financial statements and information I give you will ' b; c;-ii;; and complete.. I agree to sign, deliver. and file any additional a"*r""t" certifications th.at you may.consider necessary to perfect, aoniinuu,- "l

preserve my obligations under this Line of Credit arid to confirm t;r; "nA i;; status on any Property. Time is of the essence.

33, CREDIT INFORMATION, I agree to supply you with whatever information_y_ou reasonabry feer you need to oecibe wnetrer to coniin* this Line of credit. You will make requests for this intoimatibn wiirroui undue frequency, and will give me readonable time in which toirppiii t# information.

California: lf. the Property is located in California, as required by law, I am hereby notified that a negative credit report reflecting oh my credit record

m_ay be submitted to a credit reporting agency if I fail to Julfill the terms of my credit obligations.

Utah.: Notic-e of .Negative Credit Report. As required by Utah law, lam hereby notified that a negative credii report reflecting on my credit iecord

m-ay be submitted to a credit reporting agency if lfiil to tuttitt tl" t"r'ni of my credit obligations.

34. APPLICABLE LAW. You are a federal savings bank located in Texas. This Agreement's interest rate and related chari'es are made prr"rani io, and governed by, the laws of Texas and the United States bi nm"iica.

The law of the state where the Property is located will apply to tne exteni legally required.

State specific text applies to the extent specifically provided above, if the Property is located in the specific jurisdiction refer6nced.

Maryland: I a_gree that thjs Line of Credit is subject to the Revolving Credit Provisions of Maryland law, as amended (Md. Commercial Law'il Code Ann., Title 12, Subtitle 9).

35. STATE NOTICES. The following provisions apply to the extent the Property is located in the state refereni:ed:

Alaska: I am personally obligated and fully liable for the amount due under this Agreem.ent. You have the right to suil on the Agreement and oUtaini 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 S g 09.45.170 through Og.4S.i2b.

Maryland: lf the entire Credit Limit is not disbursed at this Agreement,s execution, I may, at my option, pay Maryland recordation tix 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 entiie credit Limit at-closin_g, my total tax liability will be satisfied, regardless of the amount.of any fulure advances that may subsequently bE made bv you to me. lf, however. I elect to pay the required Marytand recordatioi

tax as advances are made, I will have seven (7) days to file with the clerk of the court where the security instrument id 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 de_bt, or Imay-be penalized by a fine of up to $500.00 or rmprrsonment lor uo to 6 months. for failing to do so as provided in 514-1012 of the Tai-property Articre of tte A"nno-tai"o coo" o? rvr.irrr'ni.

N-OTth DAKOTA: IF PERMITTED BY APPLICABLE LAW, THIS OBLIGATION MAY BE THE BAsIs FoR A PERSoNAL ACrrbr,I AcAIrvbf..irrE PROMISOR OR PROMISORS IN ADDITION TO OTHER icIrirEOI'Es ALLOWED BY LAW.

H"f ilpXl?itE?6'9,=r,6ft s'P8fi oH=0oill'r'.r'o,frylfl 

EU+

l"O_W^4i L.poltanl:,flead before signing. The terms of this Aglggrnent shoutd be rgad caref-ulty'because- onlv-irrij65 terms tn wnttng are enforceable. Nb other terms'oi ora'l promtses not cbntained in this written contraCt-mav-bt lggally enforced. you may chanse--the "t;;ilil 'oT't6iE

A[redment only by anothei ivriiten "a[reeinent.

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. n Discounted Rate

D.tr

37. ADDITIONAL TERMS.

[vr1ss_o-uril 9RAL AGR_EEllENfg OR COMMITMENTS TO

!glI^y,g,uEy._EIIEN_D_-cf ED_rloRro'FoR6-EAn'FncjM

ENlgEq!ryG REPAY_MENI_-bF a'drei" ll\iciriDt-N'G pEqUsEs ro ExrEN_D_ oR ffENEW-sUcs 'ijeei-ARE

ryqI ENFORCEABLE. rO pROrEci vbu- teon-flowini Al{-q uS (LENDER} FRoM MlsuNDERsr'[NDiNt'--dii

Q rsAl,po I NrM ENr. AILY_ 

- 

AG CEevl Erv-iS wE -' irEndii

9 9_y_E E! N G s u c H'IUAII_E R s A R E 

'c 

o tit ih I nrE o r ru 

-fu] U

!vjll[!q. WH I cH I s. r_H E c oM pLErE Ar\iir- ExiLuaiVE STATEMENT OF THE AGREEMENT E-ETWiEiI--US

FXC_E?r AS wE MAy LArER AGREE lr[-fvdmiric 16 MODIFY IT.

. 

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

],:P:1:t:l9i,Uf.tlP"-19"-fg:,y:y read it. .2 You.areentitled to a copy.of _this"pipei. 3. you may prepay the unpaid

-balance at any time without penalty and may be entitled to receive a returia of uneirned charges in;";o-;;;; 4. "il;iffi. If you prepay the unpaid balance, you may have to pay a minimum charge not greater than ieven dollars and fifty cents.

SIGNATURES. I understand that terms following a E only apply if checked.

receipt of a copy of this Agreement.

BORROWER:

By signing, I agree to the terms of this Agreement and acknowledge

x

x

HOME EOUITY VARIABLE DRAW AGREEMENT

E(@]rE O2OOO Bankers Sysrems, rnc., St. Croud, MN Form USAA-HE gl5t2113 lpage 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 Questions 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 oJ 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. lJ 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.

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

o E Origination Fee. An origination fee of

o fl point".

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

r X Recording Fee. $ 11.00 POC .

E Appraisal Fee.

X ritu Search Fee.

E r"*"".

E ritt" lnsurance.

n Annual Fee. A fee of

Account Balance

$

$

$

$

t

a

a

a

a

a

52.50 POC

0.00

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

o Xl Returned Check Charge. A charge not to exceed $ 1 5.OO 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 RooA Determination Fee. $

n

a

a

t

a

o

a

tr

tr

T

I

HOME EOUITY VARIABLE DRAW AGREEMENT

E(fh, o2000 Bankers systems, lnc., sr. cloud, t\4N Form usAA-HE 9/5/2003 (page 5 of 5l