United Trades FCU Consumer Loan Agreement

P.O. Box 2293

Tualatin, OR 97062

Ph: 503.283.5193

This Consumer Loan Agreement (“Agreement”) governs your Loan

accounts with United Trades Federal Credit Union. In this Agreement

the terms “you” and “your” mean each person who signs the Consumer

Loan Application, an Advance Disclosure or this Agreement as a

borrower or owner of collateral, as applicable. The term “Credit Union”

means United Trades Federal Credit Union.

1. Consumer Loan Documents

Under this Agreement you are establishing an ongoing Loan

relationship with the Credit Union. You may request and receive

Consumer Loans from time to time and you may establish a Personal

Line of Credit account.

a. Consumer Loans. Each Consumer Loan that you request, and we

approve from time to time will be considered a separate Loan

transaction that is consummated at the time a Loan Advance

Disclosure for each Loan is accepted by you. The terms applicable to

your Consumer Loans will be governed by: (i) the Consumer Loan

Application; (ii) this Agreement; (iii) the Loan Advance Disclosures

provided with each Loan; (iv) a Loan proceeds check endorsement;

and (v) other Loan documents required under this Agreement. These

Loan documents are incorporated in and integrated as part of this

Agreement.

b. Line of Credit. Upon your request and approval by the Credit Union,

your Line of Credit will be established as an open-end, revolving Line

of Credit. The terms applicable to your Line of Credit account will be

governed by: (i) the Consumer Loan Application; (ii) this Agreement;

(iii) the Line of Credit Account Disclosure provided at account opening;

(iv) a Loan proceeds check endorsement; and (v) other Loan

documents required under this Agreement. These Loan documents are

incorporated in and integrated as part of this Agreement.

2. Accessing Your Loans & Line of Credit

If more than one person signs this Agreement or one of the Loan

documents, your obligations under this Agreement, are joint and

several. You and any co-applicant, jointly or alone, may request and

receive Loan advances under this Agreement, to suspend further

advances, or terminate this Agreement. You may request Loan

advances in person, by mail, by telephone or electronic transfer

service, or Loan draft to the extent applicable. The Credit Union may

disburse Loan proceeds to you directly, to third parties, or to a deposit

or share account of yours or any co-applicant in accordance with your

instructions.

a. Consumer Loan Advances. You may request and obtain one or

more Consumer Loans from the Credit Union from time to time. You

will receive a Loan Advance Disclosure at the time of each Loan which

will contain specific disclosures regarding Loan amount, interest rate,

fees, and security related to the particular advance. You may decline

any Loan transaction after receiving the Advance Disclosure without

obligation by notifying us within three days after receiving the Advance

Disclosure and returning all Loan proceeds to us. However, once you

have consummated the Loan transaction by retaining or using the Loan

proceeds, you may no longer decline Loan the transaction.

b. Line of Credit Advances. You may request and obtain a Line of

Credit account from the Credit Union. You will receive Line of Credit

Account Disclosures at the time your account is opened which will

contain specific disclosures regarding interest charges, fees, and terms

related to the account. At the time of your initial Line of Credit advance,

you will receive Personal Line of Credit Advance Disclosures which will

contain specific disclosures regarding your approved credit limit,

payment terms, and security related to the account. For a Line of Credit

account, you may access credit on your account up to your approved

credit limit, prepay any portion of the balance, and request subsequent

advances from time to time without limitation, provided you are not in

default. The approved credit limit for a Line of Credit account is the

maximum amount you may draw upon at any time under that account

without getting specific approval for additional Line of Credit advances.

If you overdraw a deposit account of yours, you agree we may treat

that transaction as a request for an advance and your authorization to

transfer funds to cover such overdraft.

3. Payment Terms

a. Promise to Pay. You promise to pay the Credit Union all Loan or

Line of Credit advances, interest, fees and charges and other amounts

due in accordance with this Agreement.

b. Payment Methods. You may make payments on your Consumer

Loan or Line of Credit by automatic transfer from shares, payroll

deduction, or by direct payment, as applicable. If you make automatic

transfer payments, you are responsible for maintaining adequate funds

in your account to satisfy your payments. If the Credit Union does not

receive your payroll deduction, the Credit Union will not waive your

payment requirement and you remain responsible for making timely

payments. You may pay all or any portion of your account at any time

without penalty, but any such prepayment will not relieve you of your

obligation to make the required minimum payments. After your loans

are paid, the Credit Union may deposit payroll deduction amounts to

your share account unless otherwise notified.

c. Periodic Payments. For Consumer Loans, you agree to make the

Periodic Payment as specified on the Loan Advance Disclosure by the

due date specified by the Credit Union. In addition to the Periodic

Payment, you agree to pay all amounts past due, including any late

fees, immediately. For Line of Credit accounts, your Periodic Payment

will equal 3% of the outstanding balance after the most recent advance,

or $25, whichever is greater.

d. Crediting Payments. Payments received at any office of the Credit

Union prior to any posted transaction cutoff hours will be credited as of

the day they are received and processed. Payments received after a

transaction cutoff hour may not be credited until the next business day.

All payments will be credited first to fees and charges, then to accrued

interest, and finally to the outstanding principal balance of your Loan

or Line of Credit.

4. Interest Charges

a. When Interest Accrues. Each Consumer Loan or Line of Credit

advance will accrue interest beginning on the date the advance is

posted to your account. Interest will continue to accrue on your account

until the entire outstanding balance is paid in full. Loan advances

deposited to a deposit account will be subject to interest from the date

of deposit even if the funds are not withdrawn immediately.

b. How to Determine Interest. You will pay interest based on the

unpaid principal balance of your Loan or Line of Credit. The unpaid

principal balance is the outstanding account balance which remains

unpaid at the close of business each day after all transactions for the

day have been posted. The interest based on your unpaid principal

balance is computed by multiplying that balance by a Periodic Rate

and multiplying by the number of days since the last payment or credit.

To get the Periodic Rate, we divide the interest rate by 365.

c. Interest Rate. The interest rate for each Loan will be set forth on the

Loan Advance Disclosure. For Line of Credit accounts, the interest rate

will be set forth on the Line of Credit Advance Disclosure. The Credit

Union may change the rates it offers from time to time. If your loan is

40 days late or more we may increase the interest rate to 18% for as

long as you are in default or six months, whichever is longer. You may

request reduction of the rate after six months of timely payments. If

payments have been made on time, during the six months review

period, we may adjust the interest rate to its original rate or its original

variable rate terms.

5. Fees and Charges

You agree to pay the fees and costs as set forth on the Loan Advance

Disclosure provided with each Loan including any application fee. You

United Trades Federal Credit Union  Consumer Loan Agreement

agree to pay the fees and costs as set forth on the Line of Credit

Account Disclosures.

a. Late Fee. If any Loan payment is more than 15 days past due, you

agree to pay a late charge of 20% of the past due interest, with a

minimum of $25, and a maximum of $350.

b. Returned Payment Fee. If any Loan payment is returned unpaid for

any reason, you agree to pay a returned payment fee of $25.

c. Transfer Fee. If we make an overdraft advance and transfer funds

to a deposit account of yours, you agree to pay a $5 transfer fee.

d. Collection Costs and Attorney Fees. If you are in default under

the terms of this Agreement, you agree to pay the Credit Union’s costs

in enforcing this Agreement and collecting any amounts you owe. The

Credit Union’s costs include, to the extent permitted by applicable law,

reasonable attorney fees if the Credit Union hires an attorney, and legal

expenses incurred whether or not a lawsuit is commenced, plus any

court costs and all other reasonable sums allowed by law. Attorney

fees and legal expenses include those related to bankruptcy

proceedings (including efforts to modify or vacate any automatic stay),

trials, appeals, and any anticipated post-judgment collection actions.

You agree that all collection costs and attorney fees incurred by the

Credit Union are secured in accordance with this Agreement.

e. Voluntary Payment Protection. We may offer Voluntary Payment

Protection to you. Voluntary Payment Protection is not necessary to

obtain credit. If you purchase Voluntary Payment Protection from us,

you authorize us to add the fees or insurance charges monthly to your

Loan balance and charge you interest to the entire balance. The rate

used to determine the fees or insurance charges may change in the

future. If the rate changes, we will provide any notices required by

applicable law.

6. Events of Default

You will be in default if any of the following happen:

a. You fail to make any payment when due;

b. You break any promise you have made to the Credit Union in this

or any agreement with the Credit Union;

c. Any other creditor or governmental agency tries to take any of the

collateral, including a garnishment of your Credit Union shares;

d. The collateral is abandoned, lost, stolen, damaged, sold, borrowed

against, levied upon, seized, or attached;

e. There is any material adverse change in your financial condition;

f. You or any guarantor die, become insolvent, make an assignment

for the benefit of creditors, a receiver is appointed, or a petition for

bankruptcy is commenced by or against you;

g. Any information or representation you make on any application or

agreement with the Credit Union is not true; or

h. The Credit Union in good faith deems itself insecure.

7. Credit Union Actions

You agree the Credit Union may accept late payments and partial

payments and can delay enforcing any of its rights under this

Agreement without losing them. The Credit Union’s waiver of its rights

in one instance does not constitute a waiver of its rights in other

instances, or waiver of any other default. You agree the Credit Union

may permit a modification, extension, or renewal of any term under this

Agreement, or release or substitute collateral or any other person

obligated for repayment of this Agreement or any guaranty, and you

will remain liable for repayment of your Loan or Line of Credit. The

Credit Union may exercise any of its rights under the security

agreement and applicable law. In addition, the Credit Union may take

other actions as follows:

a. Suspension of Line of Credit Advances. The Credit Union may

suspend your ability to draw upon a Line of Credit or use any access

device or advance checks, without prior notice to you, under the

following conditions: (i) you are in default under this Agreement or any

other agreement with the Credit Union; (ii) any credit verification

indicates adverse information; (iii) any time the Credit Union

reasonably determines the value of the collateral has declined; or (iv)

you request a suspension of this account.

b. Acceleration of Loan Balance. Upon default, you waive demand

and any notice, including notice of intent to accelerate and notice of

acceleration. The Credit Union may declare the entire balance of your

loans immediately due, without prior notice.

c. Credit Union Lien/Security Interest. To the extent permitted by

applicable law and to the extent of your indebtedness to the Credit

Union, the Credit Union has a statutory lien on all your shares,

deposits, and accumulated dividends or interest in all of your accounts

at the Credit Union. In addition, you grant the Credit Union a security

interest in all shares, deposits, and accumulated dividends or interest

in all your accounts at the Credit Union, individual or joint, (except

Individual Retirement Accounts). In the event that you fail to make any

payments due to the Credit Union pursuant to the terms of this or any

other agreement with the Credit Union, you authorize the Credit Union

to immediately exercise its lien and apply the balance in these

accounts to pay any indebtedness to the Credit Union, without further

notice to you.

d. Credit Verification. You agree to provide the Credit Union upon

request at any time with current financial information, updated

employment and credit information, or a new appraisal or valuation of

collateral, as permitted by law. You understand that the Credit Union

may record such information in its files and rely on it to make decisions

about your account. You authorize the Credit Union at any time to

release information to any credit bureau, merchant or other financial

institution regarding the status and history of your account.

8. Security Agreement

a. Security Interest. You grant the Credit Union a security interest,

under the Uniform Commercial Code of the state in which the Credit

Union is located, in all collateral described on any Loan Advance

Disclosure or Line of Credit Account Disclosure received under this

Agreement to secure your loans and Line of Credit account under this

Agreement and all your other obligations (except those secured by a

dwelling or real property) to the Credit Union. Collateral granted under

this Agreement covers your past liabilities to the Credit Union and any

liabilities that may arise in the future, regardless of form. These include,

but are not limited to, loans for consumer purposes, liability which is

sole or joint, absolute or contingent, primary or secondary, purchase

money or non-purchase money, and liability under promissory notes,

credit cards, open accounts, or overdrafts (but not loans secured by a

dwelling or real property). The collateral includes accessions and

additions installed in or affixed to the collateral and any proceeds of the

collateral. All collateral securing this Loan will secure any extension,

renewal, or modification of this Loan and all your other obligations.

b. Maintenance. You agree that collateral securing this Loan will be

for personal use and will not be used as a dwelling. Except for our

security interest, you own the collateral free and clear. You will not

allow any other liens on the collateral, even if they are junior to ours.

You agree to maintain the collateral in good working order and repair

any damage that affects its value. Except for vehicles, you agree to

keep the collateral at your address of record, unless we tell you that

you can move it. If the collateral is a vehicle, you will keep it at your

present address, except for routine use, and you will not do anything

that requires registering the vehicle in another state. You may move

the collateral to your new address only if you give the Credit Union the

new address in advance. You agree the Credit Union may come upon

your premises and inspect the collateral at any reasonable time without

notice.

c. Insurance. You agree to keep the collateral insured with casualty

and fire coverage satisfactory to the Credit Union, including an

acceptable deductible. For vehicles, this means collision insurance and

comprehensive insurance with a deductible amount acceptable to the

United Trades Federal Credit Union  Consumer Loan Agreement

Credit Union. You may provide this insurance through an existing

policy or a new policy obtained from anyone you want that is

acceptable to the Credit Union, and you agree to provide the Credit

Union with proof of that coverage. You agree to name the Credit Union

as loss payee. If you fail to pay any liens, buy or maintain insurance,

or make repairs to the collateral, we may do so. You agree we may add

any insurance or maintenance costs to the amount you owe under this

Agreement and may adjust your monthly payments to pay the Loan

over its originally scheduled term. The added amounts will bear interest

at the rate charged under this Agreement. Insurance we purchase will

cover only the Credit Union’s interest in the collateral and will not be

liability insurance. This security provision also secures those amounts.

You understand that all benefits paid by insurance that you or the

Credit Union purchases, and any insurance refunds or rebates will be

applied first to pay the Loan balance.

WARNING - UNLESS YOU PROVIDE US WITH EVIDENCE OF THE

INSURANCE COVERAGE AS REQUIRED BY OUR LOAN

AGREEMENT, WE MAY PURCHASE INSURANCE AT YOUR

EXPENSE TO PROTECT OUR INTEREST. THIS INSURANCE MAY,

BUT NEED NOT, ALSO PROTECT YOUR INTEREST. IF THE

COLLATERAL BECOMES DAMAGED, THE COVERAGE WE

PURCHASE MAY NOT PAY ANY CLAIM YOU MAKE OR ANY CLAIM

MADE AGAINST YOU. YOU MAY LATER CANCEL THIS

COVERAGE BY PROVIDING EVIDENCE THAT YOU HAVE

OBTAINED PROPER COVERAGE ELSEWHERE. YOU ARE

RESPONSIBLE FOR THE COST OF ANY INSURANCE

PURCHASED BY US. THE COST OF THIS INSURANCE MAY BE

ADDED TO YOUR LOAN BALANCE. IF THE COST IS ADDED TO

THE LOAN BALANCE, THE INTEREST RATE ON THE

UNDERLYING LOAN WILL APPLY TO THIS ADDED AMOUNT. THE

EFFECTIVE DATE OF COVERAGE MAY BE THE DATE YOUR

PRIOR COVERAGE LAPSED OR THE DATE YOU FAILED TO

PROVIDE PROOF OF COVERAGE. THE COVERAGE WE

PURCHASE MAY BE CONSIDERABLY MORE EXPENSIVE THAN

INSURANCE YOU CAN OBTAIN ON YOUR OWN AND MAY NOT

SATISFY ANY NEED FOR PROPERTY DAMAGE COVERAGE OR

ANY APPLICABLE MANDATORY LIABILITY INSURANCE

REQUIREMENTS.

d. Sale of Collateral Upon Default. You may keep and use the

collateral while this Agreement is not in default. If you are in default, we

will have all of the rights of a secured party under the Uniform

Commercial Code of the state in which the Credit Union is located, in

addition to any other rights we may have. Upon request, you agree to

make the collateral available to us at a place we designate. You

authorize us to take possession of the collateral peaceably, with or

without legal process, and sell it. If you are entitled to any notice

required by applicable law, you agree that ten calendar days prior

notice is enough. Unless you ask us in writing to give you notice at a

different address, notice sent to you at your address of record will be

sufficient.

e. Additional Documents and Power of Attorney. You agree to sign

any other documents, such as financing statements, applications for

certificates of title, and certificates of title, to perfect our security

interest. You agree to give us an irrevocable power of attorney to sign

your name to title certificate(s) and to apply in your name for the

issuance of a certificate or title to any motor vehicle you have given as

collateral. To the extent permitted by applicable law, you agree we may

endorse any check payable to you, if you refuse, and you waive protest

of such action.

9. Amendments.

To the extent permitted by applicable law, you agree the Credit Union

may amend the terms of this Agreement from time to time. The Credit

Union will notify you of any changes as required by law. Any notice of

change in terms required by law will be sent to your address of record.

You agree to inform the Credit Union in writing of your current address

at all times. The Credit Union will consider this address your address

of record. Notices will be mailed to you at the most recent address you

have provided the Credit Union in writing. To the extent permitted by

law, you agree that notice to any one borrower will be considered as

giving notice to all borrowers. No oral statement by any Credit Union

officer or employee is included in this Agreement, which may be

modified only in writing. For Line of Credit Accounts, changes will apply

to existing accounts to the extent set forth in the change in terms notice.

For loans, changes will apply to new loans taken after the change

becomes effective.

10. Applicable Law

You agree this Agreement will be governed by and interpreted in

accordance with the laws of the State of Oregon. If any provision of this

Agreement is invalid, the rest of the provisions shall remain valid. If a

lawsuit is commenced, you agree to submit to jurisdiction of the courts

in the county where you reside.

Member

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Co-Borrower

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Grantor

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Grantor

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