FIRST NATIONAL BANK COLORADO

NMLS #402960

Home Equity Line of Credit Plan Disclosure

1st and 2nd Lien Variable Rate Plans: Options I, II, and III

This disclosure contains important information about the features of the Home Equity Line of Credit (HELOC) plans currently offered by First National Bank Colorado (Lender). You should read it carefully and keep a copy for your records. The terms for all loan plans are the same except where otherwise indicated.

Availability of Terms

All of the terms described below are subject to change.

If these terms change (other than the ANNUAL PERCENTAGE RATE), and you decide, as a result, not to enter into an agreement with us, you are entitled to a refund of any fees that you have paid to us or anyone else in connection with your application.

Security Interest

We will take a security interest in your home. You could lose your home if you do not meet the obligations in your agreement with us. YOU SHOULD CHECK WITH YOUR LEGAL ADVISOR AND WITH OTHER MORTGAGE LIEN HOLDERS AS TO WHETHER ANY PRIOR LIENS CONTAIN ACCELERATION CLAUSES WHICH WOULD BE ACTIVATED BY A JUNIOR MORTGAGE LIEN.

Possible Actions

Under certain Circumstances, we can:

• Terminate your line of credit and require you to pay us the entire outstanding balance in one payment;
• Refuse to make additional extensions of credit; and
• Reduce your credit limit

We can terminate your line of credit and require you to pay us the entire outstanding balance in one payment if:

• You engage in fraud or material misrepresentation in connection with the line of credit;
• You fail to make a payment as required by the agreement; or
• Your action or inaction adversely affects the collateral or our rights in the collateral

We can refuse to make additional extensions of credit or reduce your credit limit if:

• The value of the dwelling securing the line of credit decline significantly below its appraised value for purposes of the line of credit;
• We reasonably believe you will not be able to meet the repayment requirements under the line of credit due to a material change in your financial circumstances;
• You are in default of a material obligation of the agreement;
• Government action prevents us from imposing the ANNUAL PERCENTAGE RATE provided for in the

agreement, or impairs our security interest such that the value of the interest is less than 120% of the credit limit on the line of credit;

• A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice;
• The maximum ANNUAL PERCENTAGE RATE is reached; or
• You request a suspension of credit privileges

Minimum Payment Requirements

You can obtain credit advances for 60 months. During this period, payments will be due monthly.

On or before each payment date, you agree to make a payment of at least the minimum payment amount. The minimum payment will equal the following:

Any amount past due, any fees and charges that are due, and the amount of accrued finance charges on the last day of the Billing Cycle. The Minimum Payment will change each time you make an advance and whenever the ANNUAL PERCENTAGE RATE changes. The minimum payment will be rounded to the nearest $0.01.

Minimum Payment Examples

1^st Lien – Option I – 65% Loan-to-Value – If you made only the minimum monthly payment and took no other credit advances, it would take 5 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 9.000%. During that period, you would make 59 payments of $75.00 with a final payment of $10,075.00.

2^nd Lien – Option II – 70% Loan-to-Value – If you made only the minimum monthly payment and took no other credit advances, it would take 5 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 9.500%. During that period, you would make 59 payments of $79.17 with a final payment of $10,079.17.

2^nd Lien – Option III – 80% Loan-to-Value – If you made only the minimum monthly payment and took no other credit advances, it would take 5 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 10.500%. During that period, you would make 59 payments of $87.50 with a final payment of $10,087.50.

Fees and Charges

To open and maintain a line of credit, you must pay the following fees to us:

• Processing Fee: $750.00.
• Late Charge: If I make a payment more than 10 days after it is due, I agree to pay a late charge of 5.000% of the overdue monthly payment; however, this charge will not be greater than $100.00.
• NSF Handling Fee: An amount of $18.50 is charged at the time a payment is returned to the Lender for non- sufficient funds.

Note: Some fees may only apply upon the occurrence of an event and have been provided for informational purposes only.

Insurance

You must maintain adequate hazard insurance (and flood insurance when required) on the property that secures the line of credit.

Refundability of Fees

If you decide not to enter into this plan within three days of receiving this disclosure and the Home Equity Brochure, you are entitled to a refund of any fee you may have already paid.

Tax Deductibility

You should consult a tax advisor regarding the deductibility of interest and charges for the line of credit.

Variable Rate Features

This line of credit has a variable rate feature and the ANNUAL PERCENTAGE RATE (corresponding to the periodic rate) and the minimum monthly payment can change as a result. The ANNUAL PERCENTAGE RATE includes only interest and not other costs. The ANNUAL PERCENTAGE RATE is based on the value of an index. The index is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. Prime Rate as stated in the Wall Street Journal, Money Rates. To determine the ANNUAL PERCENTAGE RATE that will apply to your line of credit, we add a margin to the value of the index and then round to the nearest 0.125%. Ask us for the current index value, margin, and ANNUAL PERCENTAGE RATE. After you open a line of credit, rate information will be provided on periodic statements that we send you.

Rate Changes

The ANNUAL PERCENTAGE RATE can change daily. There is no limit on the amount by which the rate can change in any one-year period.

1^st Lien – Option I – The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 18.000%. The minimum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 4.000%.

2^nd Lien – Option II – The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 18.000%. The minimum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 4.500%.

2^nd Lien – Option III – The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 18.000%. The minimum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 5.250%.

Maximum Rate and Payment Example

Variable Rate HELOC Options I, II, and III – If you made only the minimum monthly payment and took no other credit advances, it would take 5 years to pay off a credit advance of $10,000.00 at the maximum ANNUAL PERCENTAGE RATE of 18.000%. During that period, you would make 59 payments of $150.00 with a final balloon payment of $10,150.00. The maximum ANNUAL PERCENTAGE RATE could be reached at any time.

Historical Examples

The following tables show how the ANNUAL PERCENTAGE RATE and the minimum payments for a single $10,000.00 credit advance would have changed based on changes in the index over the last 15 years. The index values are from the first business day of January of each year.

The tables assume that no additional credit advances were taken, that only the minimum payments were made, and that the rate remained constant during each year. It does not necessarily indicate how the index or your payments would change in the future.

Acknowledgement

You hereby acknowledge receipt of this Home Equity Plan Disclosure and a copy of the Home Equity Brochure published by the Consumer Financial Protection Bureau on today’s date.

You further acknowledge that this is not a commitment to make a loan, that you must qualify for the proposed loan, and if you do not qualify for the proposed loan then your loan will not be approved to close.

Acknowledge & Apply