Truth-in-Lending Disclosure

By submitting an online application, the applicant ("you" or "your") certifies the accuracy of the information, and promises to notify Southland Credit Union ("we," "us," "our," or "Credit Union") in writing immediately if there is any change in your financial condition. It is a violation of Section 1014, Title 18, U.S. Code, to make false statements or overvalue security for the purpose of influencing the action of any federally insured credit union. You authorize us to gather whatever credit and employment information we consider appropriate from time to time. This will assist, for example, in determining your eligibility for renewal of credit and additional extensions of credit. You authorize us to give information concerning your credit experience with us to others. You understand and agree that we may retain the application and you waive your right to confidentiality of records with the California Department of Motor Vehicles (DMV) and authorize us to obtain such information from the DMV. You agree that by using or authorizing another to use the Account, you will be bound by the terms and conditions of the applicable Credit Union disclosures.

You voluntarily grant Southland Credit Union a lien on any and all shares (except IRA accounts)now on deposit with the Credit Union or in the future and if you are in default of your loan(s), authorize the Credit Union to apply all shares (except IRA) then on deposit needed to repay such loans.

Disclosures Applicable to Variable Rate Loans

The Annual Percentage Rate may increase or decrease during the term of the note. Any such change will be based on an increase or decrease in the index. The Index is the current rolling three-month average of the Two Year Treasury Coupon Auction Rate as published on the day after the fourth Tuesday of each month in the Wall Street Journal. The Annual Percentage Rate is subject to change on the first day of each calendar quarter (January 1, April 1, July 1, and October 1). These dates are known as the Adjustment Dates. The Annual Percentage Rate is determined by adding a Margin (as specified in the rate schedule) to the Index as of each Adjustment Date. With the exception of discounted introductory rate Home Equity Lines of Credit (see below), the maximum Annual Percentage Rate during the term of the note shall not exceed 5% above the initial Annual Percentage Rate. There is no minimum Annual Percentage Rate. Increases in the Annual Percentage Rate will increase the number of scheduled payments required to pay the loan in full.

Additional Disclosures Applicable to Home Equity Lines of Credit

The discounted introductory rate is available for the first six months of the loan. After six months, the loan will be subject to the standard indexed (variable) annual percentage rate. The maximum annual percentage rate for the term of the loan is 5% above the initial indexed annual percentage rate.

If no initial minimum advance is taken, borrower is subject to an annual fee of $50 and agrees to not close HELOC for 3 years. If the line is closed prior to the third year, borrower may be required to reimburse closing costs up to $200. If the borrower takes an initial advance of $10,000 and agrees not to make more than the minimum monthly payment for the first 24 months, the borrower will not be required to make any such reimbursement. If no fees are assessed at the time of origination and if any monthly payment in excess of the minimum is made within the first 24 months, borrower may be required to reimburse closing costs up to $200.