Home Equity Line of Credit Early Disclosure

IMPORTANT—PLEASE READ CAREFULLY.
This disclosure contains important information about the Home Equity Line of Credit program at Cascade Bank. You should read it carefully and retain for your records.

AVAILABILITY OF TERMS. The application must be submitted by 6/30/2010 to obtain the terms disclosed. Also, all of the terms described below are subject to change without notice. If these terms change (other than the annual percentage rate) you may decide, as a result, not to enter into an agreement with the Bank. You are entitled to a refund of any fees that you pay in connection with your application if you decide not to enter the agreement because of such term changes.

SECURITY INTEREST. We will take a deed of trust on your property. You could lose your property if you do not meet the obligation in your agreement with us.

POSSIBLE ACTIONS. We can terminate the plan and require you to pay us the entire outstanding balance in one payment, and charge you certain fees if: (A) You commit fraud or make a material misrepresentation at any time in connection with this plan. This can include, for example, a false statement about your income, assets, liabilities, or any other aspect of your financial condition. (B) You do not meet the repayment terms of this plan. (C) Your action or inaction adversely affects the collateral for the plan or our rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the dwelling, failure to pay taxes, death of all persons liable on the account, transfer of title or sale of the dwelling, creation of a senior lien on the dwelling without our permission, foreclosure by the holder of another lien or the use of funds or the dwelling for illegal purposes.

We can refuse to make additional extensions of credit or reduce your credit limit if: (A) We reasonably determine that the value of your dwelling has declined signif?icantly below the dwelling’s appraised value for purposes of the plan. This includes, for example, a decline such that the initial difference between the credit limit and the available equity is reduced by fifty percent and may include a smaller decline, depending on the individual circumstances. (B) We reasonably believe that you will be unable to fulfill your payment obligations under the plan due to a material change in your financial circumstance. (C) You are in default under any material obligation of this plan. We consider all of your obligations to be material. Categories of material obligations include, but are not limited to, the events described above under “Possible Actions,” obligations to pay fees and charges, obligations and limitations on the receipt of credit advances, obligations concerning maintenance or use of the dwelling or proceeds, obligation to pay and perform the terms of any deed of trust of mortgage or lease of the dwelling, obligations to notify us and to provide documents or information to us (such as updated financial information), obligations to comply with applicable laws (such as zoning restrictions), and obligations of any guarantor or comaker. No default will occur until we mail or deliver a notice of default to you so you can restore your right to credit advances. (D) We are precluded by government action from imposing the annual percentage rate provided for under this plan. (E) The priority of our security interest is adversely affected by government action to the extent that the value of the security interest is less than 120 percent of the credit limit. (F) We have been notified by governmental authority that continued advances may constitute an unsafe and unsound business practice. (G) The maximum annual percentage rate under this plan is reached. (H) You or a guarantor or a comaker file bankruptcy, including reorganization, or a “wage earner plan,” or are subject to receivership or similar state action. (I) Index plus margin exceed the maximum interest rate under this plan.

You may receive, upon request, more specific information about the conditions under which the Bank may take the above actions.

CHANGE IN TERMS. Our agreement permits us to make certain changes to the terms of the line at specified times or upon the occurrence of specified events. We will implement the changes as specified in the agreement.

THIRD PARTY FEES AND CHARGES. Cascade Bank pays certain fees to third parties in order to process your application. These fees will generally range from $99 to $3,500, depending upon the loan or credit line and type of property securing this loan or credit line. If your application is withdrawn prior to signing the note and security agreement, you must pay the $99 loan fee if a drive-by appraisal was completed or the $99 loan fee plus appraisal cost if a full appraisal was completed. You must also carry insurance and ensure county property taxes are paid on the property securing the credit line. We will provide a more detailed itemization of the fees at the time you apply for your credit line. You may obtain a Good Faith estimate of all fees and costs upon request.

APPRAISAL DELIVERY. Cascade Bank will give you a copy of the appraisal report used in conjunction with this application for credit.

FEES PAYABLE TO THE BANK. There is no annual fee on the credit line; if there is no loan advance balance or activity on the line for a 12 month period, a $75 annual maintenance fee will be charged. If the Bank in good faith believes it is legally required to have the property securing your credit line reappraised, then your account will be charged for the cost of the reappraisal, which may vary based upon the location and type of property, but which will not exceed $1,000.

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

MINIMUM DRAW AND CREDIT LIMIT REQUIREMENTS. There is a $100 minimum draw requirement; you can draw on your credit line in any amount over $100, provided your request will not cause your credit limit to be exceeded and your credit line has not been reduced, suspended, terminated, or cancelled.

MINIMUM PAYMENT REQUIREMENTS. You can obtain funds from your credit line during a 120 month period (draw period). After the draw period ends, the Bank will no longer be obligated to allow the draws against your credit line. During the draw period and the repayment period, payments will be due monthly.

Your minimum monthly payment during the draw period will be interest only. The Bank will then change your minimum payment to an amount necessary to repay the loan within fifteen (15) years (repayment period). During the repayment period your minimum monthly payment will be the greater of $100 or 0.556 percent of the principal at the end of the draw period plus any FINANCE CHARGES. If your balance is less than $100, the full amount will be due. The minimum payment during the draw period and repayment period may also include credit life insurance premiums, late charges, past due amounts and amounts in excess of the established credit limit.

MINIMUM PAYMENT EXAMPLE. If you made only the minimum payment and took no other credit advances, it would take 25 years to pay off a balance of $10,000 at an annual percentage rate of 6.50%. During that period, you would make 120 payments FINANCE CHARGES ONLY and 180 payments of principal plus FINANCE CHARGES with only minimum payments during the entire repayment period.

VARIABLE RATE FEATURE. The credit line has a variable rate feature. The annual percentage rate (corresponding to the periodic rate), the amount of final payment, and the minimum payment amount can change as a result. The annual percentage rate does not include costs other than interest. The annual percentage rate is based on the value of an index. The index is the “Prime Rate” as published in the Wall Street Journal. To determine the annual percentage rate that will apply to your credit line, we add a margin to the value of the index as of the day the index changed. We will use the most recent index value available to us as of the date of any annual percentage rate adjustment. If the index is no longer available, we will choose a new index and margin. The new index will have a historical movement similar to the original index, and the new index and margin will result in an annual percentage rate that is substantially similar to the rate in effect at the time the original index becomes unavailable. Ask us for the current index value, margin, and annual percentage rate. After you open your credit line, rate information will be provided on the periodic statements that we send you. Your initial ANNUAL PERCENTAGE RATE may be “discounted” or at a “premium” and not based on the index plus margin used for later rate adjustments. The discounted or premium rate will be in effect through the promotion period advertised.

RATE CHANGES. The annual percentage rate can change daily. The maximum ANNUAL PERCENTAGE RATE that can apply during the term of the credit line is 13.00% or the maximum rate allowed by applicable law if less. The minimum ANNUAL PERCENTAGE RATE that can apply during the term of the credit line is 6.50% providing your combined loan-to-value ratio is less than or equal to 80%. The minimum ANNUAL PERCENTAGE RATE is 7.5% if the combined loan-to-value ratio exceeds 80%. There is no limit on the amount by which the annual percentage rate can change during any period.

AUTOMATIC PAYMENT RATE. The annual percentage rate under this credit line contains a .25% discount if payments are automatically withdrawn each month from a Cascade Bank checking or savings account. The annual percentage rate would be returned to the non-automatic interest rate if (A) The borrower revokes in writing the automatic payment option; (B) The automatic payment option becomes unavailable; (C) Borrower does not maintain sufficient funds in the deposit account to allow the automatic transfer payment to be completed.

MAXIMUM RATE AND PAYMENT EXAMPLES. The interest rate on your credit line may substantially increase or decrease. The following show a recent maximum interest rate and monthly payment on a credit line in the amount of $10,000. The minimum payment at the ANNUAL PERCENTAGE RATE of 13.00% would be $108.33 during the draw period and $163.89 during the repayment period. This ANNUAL PERCENTAGE RATE could be reached at the time of the first rate change after opening your credit line.

HISTORICAL EXAMPLE. The following example shows how the ANNUAL PERCENTAGE RATE and the minimum monthly payments for a single $10,000 draw would have changed based on changes in the index over the past fifteen years. The index values for the Prime Rates are from January of each year. While only one payment amount per year is shown in the minimum monthly payment column, payments would have varied during each year of the first fifteen years.

This example assumes interest only payments for the first 10 years and a 180 month amortization of the principal plus interest for the remaining period, that no additional draws were taken, that only the minimum monthly payment was made, and the ANNUAL PERCENTAGE RATE remained constant during each year. It does not necessarily indicate how the index or your payments would change in the future. See paragraph above.

HISTORICAL EXAMPLE: 80% LOAN TO VALUE

Year	Index(%)	Margin*(%)	Annual % Rate	Min. Mo. Pmt.	Principal Balance
DRAW PERIOD
Jan '95	8.50	0.00	8.50	70.83	$10,000.00
Jan '96	8.50	0.00	8.50	70.83	$10,000.00
Jan '97	8.25	0.00	8.25	68.75	$10,000.00
Jan '98	8.50	0.00	8.50	70.83	$10,000.00
Jan '99	7.75	0.00	7.75	64.58	$10,000.00
Jan '00	8.50	0.00	8.50	70.83	$10,000.00
Jan '01	9.50	0.00	9.50	79.17	$10,000.00
Jan '02	4.75	0.00	6.50***	54.17	$10,000.00
Jan '03	4.25	0.00	6.50***	54.17	$10,000.00
Jan '04	4.00	0.00	6.50***	109.72	$9,333.33
REPAYMENT PERIOD
Jan '05	5.25	0.00	6.50***	106.11	$8,666.67
Jan '06	7.25	0.00	7.25	107.92	$8,000.00
Jan '07	8.25	0.00	8.25	110.56	$7,333.33
Jan '08	7.25	0.00	7.25	100.00	$6,664.99
Jan '09	3.25	0.00	6.50***	95.26	$6,666.67

* This is a margin we have used recently. Your margin may be different.
**This is a different minimum rate we have used recently. Your minimum
rate may be different.
***The Annual Percentage Rate reflects the floor of 6.5%.

REPRESENTATIONS AND CONDITIONS. You agree: (A) That no part of the residence is or will be used for commercial purposes. (B) That if there is a lien or encumbrance prior to the lien of this Deed of Trust, the prior lien does not prohibit or require approval of the Deed of Trust. (C) That you will give us written notice of any material adverse change in your financial condition or the condition of the property within 60 days of the change.

JOINT OBLIGOR. If more than one person signs the credit agreement, each of you understands and agrees that all provisions of the agreement apply to each person.

This includes, but is not limited to your authorization for each of you to deal with the line of credit without consent of the other and your promise not to give us conflicting instructions; you further agree that you will not attempt to restrict the right of another person under the agreement without the person’s prior written consent (for example, one of you cannot unilaterally tell us that the other can no longer use the line of credit).

Because each of you has equal rights, none of you may cancel future advances unless you each agree in writing to cancellation; if one of you cancels your own rights, you will still be liable for advances made to anyone who has not cancelled. The fact that you may make separate agreements with each other (for example, enter into a dissolution decree) shall not affect your obligations to us under the agreement. The foregoing promises, and all other terms of the agreement, are part of your material obligations under the agreement.

Notice to first-lien mortgage loan Applicants

The right to collect your mortgage loan payments may be transferred. Federal law gives you certain related rights. If your loan is made, save this statement with your loan documents.

Because you are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. §2601 et seq.) you have certain rights under that federal law.
This statement tells you about those rights. It also tells you what the chances are that the servicing for this loan may transferred to a different loan servicer. “Servicing” refers to collecting your principal, interest and escrow account payments, if any. If your loan servicer changes, there are certain procedures that must be followed. This statement generally explains those procedures.

TRANSFER PRACTICES AND REQUIREMENTS. If the servicing of your loan is assigned, sold, or transferred to a new servicer, you must be given written notice of that transfer. The present loan servicer must send you notice in writing of the assignment, sale or transfer of the servicing not less than 15 days before the effective date of the transfer. The new loan servicer must also send you a notice within 15 days after the effective date of the transfer. The present servicer and the new servicer may combine this information in one notice, so long as the notice is sent to you 15 days before the effective date of transfer. The 15 day period is not applicable if a notice of prospective transfer is provided to you at settlement. The law allows a delay in the time (not more than 30 days after a transfer) for servicers to notify you, upon the occurrence of certain business emergencies.

Notices must contain certain information. They must contain the effective date of the transfer of the servicing of your loan to the new servicer, and the name, address, and toll-free or collect call telephone number of the new servicer, and toll-free or collect call telephone numbers of a person or department for both your present servicer and your new servicer to answer your questions. During the 60-day period following the effective date of the transfer of the loan servicing, a loan payment received by your old servicer before its due date may not be treated by the new loan servicer as late, and a late fee may not be imposed on you.

COMPLAINT RESOLUTION. Section 6 of RESPA (12 U.S.C. §2605) gives you certain consumer rights, whether or not your loan servicing is transferred. If you send a “qualified written request” to your servicer, your servicer must provide you with a written acknowledgment within 20 business days of receipt of your request. A “qualified written request” is a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, which includes your name and account number, and the information regarding your request. Not later than 60 business days after receiving your request, your servicer must make any appropriate corrections to your account, or must provide you with a written clarification regarding any dispute. During the 60 business day period, your servicer may not provide information to a consumer reporting agency concerning any overdue payment related to such period or qualified written request. A business day is any day in which the offices of the business entity are open to the public for carrying on substantially all of its business functions.

DAMAGES AND COSTS. Section 6 of RESPA also provides for damages and costs of individuals or classes of individuals in circumstances where servicers are shown to have violated the requirements of that Section.

SERVICING TRANSFER ESTIMATES.

1. The following is the best estimate of what will happen to the servicing of your mortgage loan: (A) We may assign, sell or transfer the servicing of your loan while the loan is outstanding. (B) We are able to service your loan, and we will service your loan.
2. For all the first lien loans that we make in the 12 month period after your mortgage loan is funded, we estimate the percentage of such loans for which we will transfer servicing is between 51–75%.

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 In Case Of Errors Or Questions About Your Bill. If you think your bill is wrong, or if you need more information about transactions on your bill, write us (separate from your billing statement) at 2828 Colby Avenue, Everett, WA 98201. Write 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.

In your letter, give us the following information:

• Your name and account number.
• The dollar amount of the suspected error.
• Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about.

If you have authorized us to pay your loan payment automatically from your checking or savings account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three (3) 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.

If 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. In either case, we will send you a statement of the amount you owe and the date that it is due.

the amount you owe and the date that it is due. If 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 (10) 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 settled.

If we don’t follow these rules, we can’t collect the first $50 of the questioned amount, even if your bill was correct.

What you should know about Home Equity Lines of Credit

If you are in the market for credit, a home equity plan is one of several options that might be right for you. Before making a decision, however, you should weigh carefully the costs of a home equity line against the benefits. Shop for the credit terms that best meet your borrowing needs without posing undue financial risks. And remember, failure to repay the amounts you've borrowed, plus interest, could mean the loss of your home.

What is a home equity line of credit?
What should you look for when shopping for a plan?
Costs of establishing and maintaining a home equity line
How will you repay your home equity plan?
Lines of credit vs. traditional second mortgage loans
What if the lender freezes or reduces your line of credit?

What is a home equity line of credit?

A home equity line of credit is a form of revolving credit in which your home serves as collateral. Because a home often is a consumer's most valuable asset, many homeowners use home equity credit lines only for major items, such as education, home improvements, or medical bills, and choose not to use them for day-to-day expenses.

With a home equity line, you will be approved for a specific amount of credit. Many lenders set the credit limit on a home equity line by taking a percentage (say, 75%) of the home's appraised value and subtracting from that the balance owed on the existing mortgage. For example:

In determining your actual credit limit, the lender will also consider your ability to repay the loan (principal and interest) by looking at your income, debts, and other financial obligations as well as your credit history.

Many home equity plans set a fixed period during which you can borrow money, such as 10 years. At the end of this "draw period," you may be allowed to renew the credit line. If your plan does not allow renewals, you will not be able to borrow additional money once the period has ended. Some plans may call for payment in full of any outstanding balance at the end of the period. Others may allow repayment over a fixed period (the "repayment period"), for example, 10 years.

Once approved for a home equity line of credit, you will most likely be able to borrow up to your credit limit whenever you want. Typically, you will use special checks to draw on your line. Under some plans, borrowers can use a credit card or other means to draw on the line.

There may be other limitations on how you use the line. Some plans may require you to borrow a minimum amount each time you draw on the line (for example, $300) or keep a minimum amount outstanding. Some plans may also require that you take an initial advance when the line is set up.

What should you look for when shopping for a plan?

If you decide to apply for a home equity line of credit, look for the plan that best meets your particular needs. Read the credit agreement carefully, and examine the terms and conditions of various plans, including the annual percentage rate (APR) and the costs of establishing the plan. Remember, though, that the APR for a home equity line is based on the interest rate alone and will not reflect closing costs and other fees and charges, so you’ll need to compare these costs, as well as the APRs, among lenders.

Variable interest rates

Home equity lines of credit typically involve variable rather than fixed interest rates. The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate). In such cases, the interest rate you pay for the line of credit will change, mirroring changes in the value of the index. Most lenders cite the interest rate you will pay as the value of the index at a particular time, plus a "margin," such as 2 percentage points. Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past. It is also important to note the amount of the margin.

Lenders sometimes offer a temporarily discounted interest rate for home equity lines -- an "introductory" rate that is unusually low for a short period, such as 6 months.

Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan. Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall if the index drops.

Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan, or let you convert all or a portion of your line to a fixed-term installment loan.

Costs of establishing and maintaining a home equity line

Many of the costs of setting up a home equity line of credit are similar to those you pay when you buy a home. For example:

• A fee for a property appraisal to estimate the value of your home;
• An application fee, which may not be refunded if you are turned down for credit;
• Up-front charges, such as one or more "points" (one point equals 1 percent of the credit limit); and
• Closing costs, including fees for attorneys, title search, mortgage preparation and filing, property and title insurance, and taxes.

In addition, you may be subject to certain fees during the plan period, such as annual membership or maintenance fees and a transaction fee every time you draw on the credit line.

You could find yourself paying hundreds of dollars to establish the plan. And if you were to draw only a small amount against your credit line, those initial charges would substantially increase the cost of the funds borrowed. On the other hand, because the lender's risk is lower than for other forms of credit, as your home serves as collateral, annual percentage rates for home equity lines are generally lower than rates for other types of credit. The interest you save could offset the costs of establishing and maintaining the line. Moreover, some lenders waive some or all of the closing costs.

How will you repay your home equity plan?

Before entering into a plan, consider how you will pay back the money you borrow. Some plans set a minimum monthly payment that includes a portion of the principal (the amount you borrow) plus accrued interest.

But, unlike with typical installment loan agreements, the portion of your payment that goes toward principal may not be enough to repay the principal by the end of the term. Other plans may allow payment of interest only during the life of the plan, which means that you pay nothing toward the principal. If you borrow $10,000, you will owe that amount when the payment plan ends.

Regardless of the minimum required payment on your home equity line, you may choose to pay more, and many lenders offer a choice of payment options. Many consumers choose to pay down the principal regularly as they do with other loans. For example, if you use your line to buy a boat, you may want to pay it off as you would a typical boat loan.

Whatever your payment arrangements during the life of the plan -- whether you pay some, a little, or none of the principal amount of the loan -- when the plan ends, you may have to pay the entire balance owed, all at once. You must be prepared to make this "balloon payment" by refinancing it with the lender, by obtaining a loan from another lender, or by some other means. If you are unable to make the balloon payment, you could lose your home.

If your plan has a variable interest rate, your monthly payments may change. Assume, for example, that you borrow $10,000 under a plan that calls for interest-only payments. At a 10% interest rate, your monthly payments would be $83. If the rate rises over time to 15%, your monthly payments will increase to $125. Similarly, if you are making payments that cover interest plus some portion of the principal, your monthly payments may increase, unless your agreement calls for keeping payments the same throughout the plan period.

If you sell your home, you will probably be required to pay off your home equity line in full immediately. If you are likely to sell your home in the near future, consider whether it makes sense to pay the up-front costs of setting up a line of credit. Also keep in mind that renting your home may be prohibited under the terms of your agreement.

Lines of credit vs. traditional second mortgage loans

If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. This type of loan provides you with a fixed amount of money, repayable over a fixed period. In most cases, the payment schedule calls for equal payments that pay off the entire loan within the loan period. You might consider a second mortgage instead of a home equity line if, for example, you need a set amount for a specific purpose, such as an addition to your home.

In deciding which type of loan best suits your needs, consider the costs under the two alternatives. Look at both the APR and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently:

The APR for a traditional second mortgage loan takes into account the interest rate charged plus points and other finance charges.

The APR for a home equity line of credit is based on the periodic interest rate alone. It does not include points or other charges.

Disclosures from lenders

The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information. You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened. If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

When you open a home equity line, the transaction puts your home at risk. If the home involved is your principal dwelling, the Truth in Lending Act gives you 3 days from the day the account was opened to cancel the credit line. This right allows you to change your mind for any reason. You simply inform the lender in writing within the 3-day period. The lender must then cancel its security interest in your home and return all fees -- including any application and appraisal fees -- paid to open the account.

What if the lender freezes or reduces your line of credit?

Plans generally permit lenders to freeze or reduce a credit line if the value of the home "declines significantly" or, when the lender "reasonably believes" that you will be unable to make your payments due to a "material change" in your financial circumstances. If this happens, you may want to:

Talk with your lender. Find out what caused the lender to freeze or reduce your credit line and what, if anything, you can do to restore it. You may be able to provide additional information to restore your line of credit, such as documentation showing that your house has retained its value or that there has not been a "material change" in your financial circumstances.

You may want to get copies of your credit reports (go to the Federal Trade Commission's website for information about free copies) to make sure all the information in them is correct. If your lender suggests getting a new appraisal, be sure you discuss appraisal firms in advance so that you know they will accept the new appraisal as valid.

Shop around for another line of credit. If your lender does not want to restore your line of credit, shop around to see what other lenders have to offer. You may be able to pay off your original line of credit and take out another one. Keep in mind, however, that you may need to pay some of the same application fees you paid for your original line of credit.

Privacy policy

CONFIDENTIALITY AND SECURITY

Cascade Bank takes the following measures to maintain the confidentiality and security of your information:

• All of our operational and data processing systems are in a secure environment to protect your account information from access by third parties.
• We maintain and grant access to customer information only in accordance with our internal security standards.
• Employees have access to personal customer information only when needed for business purposes.
• Employees are educated on the importance of maintaining the confidentiality of customer information and on these privacy principles.
• Employees who violate privacy policies are subject to disciplinary measures.

MAINTENANCE OF ACCURATE INFORMATION

We work hard to maintain complete and accurate information about you and your accounts. If you ever believe that our records contain inaccurate or incomplete information, please notify us. We’ll take care of any necessary corrections.

MAINTAINING CUSTOMER PRIVACY IN THIRD PARTY RELATIONSHIPS

We may disclose the following information to companies that perform marketing services on our behalf:

• Information we receive from you on applications or other forms, such as your name and address
• Information about your transactions with us such as your account number.

When we conduct business with third parties, we require our vendors and suppliers to maintain similar standards of conduct regarding the privacy of our customers’ information.

NON-PUBLIC PERSONAL INFORMATION

Cascade Bank collects non-public personal information about you from several sources. We receive information from you on your applications to the Bank, from your transactions with us, from consumer credit reporting agencies and from third party verification systems. This information allows us to process and service your accounts with Cascade Bank.

We do not disclose any non-public personal information about our customers or former customers to any affiliated companies (companies owned by or under the same corporate umbrella as Cascade Bank) or non-affiliated third parties (companies not related to Cascade Bank), except as allowed by law.

If you have any further questions on our privacy policy, please call our Compliance Officer at (800) 326-8787.

Important information about procedures for opening a new account

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means to you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

INFORMATION ABOUT CREDIT BUREAU REPORTING

We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

Glossary

• ANNUAL MEMBERSHIP OR PARTICIPATION FEE. An amount that is charged annually for having the line of credit available. It is charged regardless of whether or not you use the line.
• ANNUAL PERCENTAGE RATE (APR). The cost of credit on a yearly basis expressed as a percentage.
• APPLICATION FEE. Fees that are paid upon application. An application fee may include charges for property appraisal and a credit report.
• BALLOON PAYMENT. A lump-sum payment that you may be required to make under a plan when the plan ends.
• CAP. A limit on how much the variable-interest rate can increase during the life of the plan.
• CLOSING COSTS. Fees paid at closing, including fees for attorneys, preparing and filing a mortgage, taxes, title search and insurance.
• CREDIT LIMIT. The maximum amount that you can borrow under the home equity plan.
• EQUITY. The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance.
• FIXED RATE. An interest rate that remains the same for the term of the loan.
• FLOOR. The minimum that a variable interest rate can decrease to during the life of the plan.
• INDEX. The base for rate changes that the lender uses to decide how much the annual percentage rate will change over time.
• INTEREST RATE. The periodic charge, expressed as a percentage, for use of credit.
• MARGIN. The number of percentage points the lender adds to the index rate to determine the annual percentage rate to be charged.
• MINIMUM PAYMENT. The minimum amount that you must pay (usually monthly) on your account. In some plans, the minimum payment may include principal and interest.
• POINTS. A point is equal to one percent of the amount of your credit line. Points usually are collected at closing and are in addition to monthly interest.
• SECURITY INTEREST. An interest that a lender takes in the borrower’s property to assure repayment of a debt.
• TRANSACTION FEE. A fee charged each time you draw on the credit line.
• VARIABLE RATE. An interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.

Where to go for help

The following federal agencies are responsible for enforcing the federal Truth in Lending Act, the law that governs credit term disclosure for Home Equity Lines. Any questions concerning compliance with the act by a particular financial institution should be directed to its enforcement agency.

Federally Insured Non-Member State- Chartered Banks and Savings Banks
Office of Consumer Programs
Federal Deposit Insurance Corporation
550 Seventeenth Street N.W.
Washington, D.C. 20429
(800) 934-3342

Federally Insured Savings and Loan Institutions and Federally Chartered Savings Banks
Office of Thrift Supervision
1700 G Street N.W.
Washington, D.C. 20552
(202) 906-6000

Mortgage Companies
Division of Credit Practices, Bureau of Consumer
Protection, Federal Trade Commission
601 Pennsylvania Avenue N.W.
Washington, D.C. 20580
(202) 326-3224

State Member Banks of the Federal Reserve System
Division of Consumer and Community Affairs Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue N.W.
Washington, D.C. 20551
(202) 452-3000

National Banks
Consumer Activities Division
Office of the Comptroller of the Currency
490 L’Enfant Plaza S.W.
Washington, D.C. 20219
(202) 622-2000

Federal Credit Unions
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314
(703) 518-6300

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