Closed End Credit Clause Samples

Closed End Credit. You and I agree that I may borrow in aggregate an amount not to exceed the principal sum shown above. Amounts I repay under this Note may not be re-borrowed later. My right to borrow is subject to all other conditions and expires on . |X| INTEREST: I agree to pay interest on the outstanding principal balance from: May 05, 2006 at the rate of 7.750000% per year until the index rate changes. Variable Rate: This rate may then change as stated below. |X| Index rate: The future rate will be 0.000% ABOVE the following index rate: LENDER'S PRIME, WHICH IS THE BASE RATE USED BY LENDER TO SET INTEREST RATE AT WHICH LOANS ARE MADE TO VARIOUS CUSTOMERS. LOANS MAY NOT BE MADE AT, ABOVE OR BELOW SAID PRIME RATE. |_| No Index: The future rate will not be subject to any internal or external ________ it will be entirely in your control. |X| Frequency and Timing: The rate on this note may change as often as DAILY. A change in the interest rate will take effect WHEN THE INDEX RATE CHANGES. |X| Limitations: During the term of this loan, the applicable annual interest rate will not be more than ______% or less than 6.00% The rate may not change more than _____% each___________. Effect of Variable Rate: A change in the Interest rate will have the following effect on the payments: |X| The amount of each scheduled payment will change. |_| The amount of the final payment will change. |_| ----------------------------------------------------------------------- ACCRUAL METHOD: Interest will be calculated on a ACTUAL # DAYS/360 - DAY YEAR basis. POST MATURITY RATE: I agree to pay Interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below: |X| on the same fixed or variable rate basis in effect before maturity (as indicated above). |_| at a rate equal to ___________________________________________________. |X| LATE CHARGE: I agree to pay a late charge on the portion of any payment not made within 10 days after it is due equal to 5% OF THE UNPAID AMOUNT WITH A MINIMUM OF $25.00. |X| ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which |_| are |X| are not included in the principal amount above: ---------------------------------------------------------------------------- $250.00 BANK PROCESSING FEE, ---------------------------------------------------------------------------- PAYMENTS: I agree to pay this note as follows: |X| Interest: I agree to pay accrued Interest MONTHLY Beginning June 20, 2006 ----------...

Closed End Credit. In an oral re- sponse to a consumer’s inquiry about the cost of closed-end credit, only the annual percentage rate shall be stated, except that a simple annual rate or periodic rate also may be stated if it is applied to an unpaid balance. If the an- nual percentage rate cannot be deter- mined in advance, the annual percent- age rate for a sample transaction shall be stated, and other cost information for the consumer’s specific transaction may be given.

Closed End Credit. You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions). INTEREST: I agree to pay interest on the outstanding principal balance from NOV. 12, 1996 at the rate of 9.250% per year until FIRST CHANGE DATE. XX VARIABLE RATE: This rate may then change as stated below. X INDEX RATE: The future rate will be 1.000% OVER the following index rate: WALL STREET JOURNAL BASE RATE AS ESTABLISHED BY THE MINIMUM PRIME LENDING RATE FOR LARGE U.S. MONEY CENTER COMM. BANKS AS PUBLISHED IN MONEY RATES SEC. OF W.S.J. X CEILING RATE: The interest rate ceiling for this note is the QUARTERLY ceiling rate announced by the Credit Commissioner from time to time. X FREQUENCY AND TIMING: The rate on this note may change as often as DAILY. A change in the interest rate will take effect ON THE SAME DAY LIMITATIONS: During the term of this loan, the applicable annual interest rate will not be more than ________________% or less than ___%.

Closed End Credit. You and I agree that I may borrow up to the maximum only one time (and subject to all other conditions). INTEREST: Interest accrues on a Actual/360 Day basis. o Fixed Rate: I agree to pay interest at the fixed, simple rate of % per year, from until paid in full. x Variable Rate: I agree to pay interest from 08/30/2006 at the initial simple rate of 7.600% per year. This rate may change as stated below. Post-Maturity Interest Interest will accrue after maturity on the unpaid balance of this note on the same basis as interest accrues prior to maturity, unless a specific post-maturity interest rate is agreed to in the next sentence. o If checked, interest will accrue at the rate of % per year on the balance of this note not paid at maturity, including maturity by acceleration. o If checked, I agree to pay a minimum FINANCE CHARGE of $ if I pay this loan before you have earned that much in FINANCE CHARGES.

Closed End Credit. You and I agree that I may borrow (subject to all other conditional up to the maximum principal sum only one time.

Closed End Credit. You and I agree that I may borrow (subject to all other conditional up to the maximum principal sum only one time. INTEREST: I agree to pay interest on the outstanding principal balance from 12-03-2001 at the rate of 7.500% per year until 06-01-2002. [X] VARIABLE RATE: This rate may change as stated below. [ ] INDEX RATE: The future rate will be ------ the following index rate: [ ] CEILING RATE: The interest rate ceiling for this note is the ___________ ceiling rate announced by the Credit Commissioner from time to time.

Closed End Credit. You and I agree that I may borrow (subject to all other conditions) up to the maximum principal sum only one time. INTEREST: I agree to pay interest on the outstanding principal balance from 11/15/2001 at the rate of 5.000% per year until the interest rate as provided for in this note. __X__Variable Rate: This rate may then change as stated below. __X__Index Rate: The future rate will be EQUAL TO the following index rate: _____No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control. __X__Frequency and Timing: The rate on this note may change as often as MONTHLY. A change in the interest rate will take effect 1ST DAY OF THE MONTH FOLLOWING CHANGE.

Closed End Credit. For closed-end loans, if after consummation a security interest is taken in real property, or in personal property used or expected to be used as the consumer’s principal dwelling, an exempt loan remains exempt under § 1026.3(b). (a) (1) and its commentary. In contrast, if a closed-end loan that is exempt under § 1026.3(b) is satisfied and replaced by a loan that is secured by real property, or by personal property used or expected to be used as the consumer’s principal dwelling, the new loan is not exempt under § 1026.3(b), and the creditor must comply with all of the applicable requirements of this part. See comment 3(b)– 5. 7. Application to extensions secured by mobile homes. Because a mobile home can be a dwelling under § 1026.2(a)(19), the exemption in § 1026.3(b) does not apply to a credit extension secured by a mobile home that is used or expected to be used as the principal dwelling of the consumer. See comment 3(b)–6. 8. Transition rule for open-end accounts exempt prior to July 21, 2011. Section 1026.3(b)(2) applies only to open-end accounts opened prior to July 21, 2011. Section 1026.3(b)(2) does not apply if a security interest is taken by the creditor in real property, or in personal property used or expected to be used as the consumer’s principal dwelling. If, on July 20, 2011, an open-end account is exempt under § 1026.3(b) based on a firm commitment to extend credit in excess of $25,000, the account remains exempt under § 1026.3(b)(2) until December 31, 2011 (unless the firm commitment is reduced to $25,000 or less). If the firm commitment is increased on or before December 31, 2011 to an amount in excess of $50,000, the account remains exempt under § 1026.3(b)(1) regardless of subsequent increases in the threshold amount as a result of increases in the CPI–

Closed End Credit. For closed-end loans, if, after consummation, a security interest is taken in any real property, or in personal property used or expected to be used as the consumer’s principal dwelling, an exempt loan remains exempt under § 226.3(b). However, the addition of a security interest in the consumer’s principal dwelling is a transaction for purposes of § 226.23, and the creditor must give the consumer the right to rescind the security interest consistent with that section. See § 226.23 (a) (1) and the accompanying commentary. In contrast, if a closed-end loan that is exempt under § 226.3(b) is satisfied and replaced by a loan that is secured by any real property, or by personal property used or expected to be used as the consumer’s principal dwelling, the new loan is not exempt under § 226.3(b) and the creditor must comply with all of the applicable requirements of this part. See comment 3(b)–5.