(GENERIC) ADJ RATE HELOC (PRIME LESS .25%)

This disclosure contains important information about our (GENERIC) Adj Rate HELOC (Prime less .25%). You should read it carefully and keep a copy for your records.

1. 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.

2. 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.

3. 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, and charge you certain fees;
• Refuse to make additional extensions of credit; and
• Reduce your credit limit.

4. MINIMUM PAYMENT REQUIREMENTS . You can obtain credit advances for 10 years (the draw period). When you open your line of credit you can choose to make monthly payments. Under either payment option, your minimum payment will equal the following:

• * The amount of accrued finance charges on the last day of the billing cycle.

The minimum payment amount will be rounded to the nearest $.01. Under the monthly payment options, the minimum payments during the draw period will not reduce the principal that is outstanding on your line of credit.

After the draw period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance on your line of credit (the "repayment period.") The length of the repayment period is 15 years. During the repayment period, payments will be due monthly. Under either payment option, your minimum payment will equal the following:

• * An amortized payment of the loan account balance on the last day of the draw period. This balance will be amortized over 180 months.

The minimum payment will change whenever the annual percentage rate changes. The minimum payment amount will be rounded to the nearest $.01. Under the monthly payment option, the minimum payments may not be sufficient to fully repay the principal that is outstanding on your line of credit by the end of the repayment period. If they are not, you will then be required to pay the entire balance in a single payment.

Balances less than $100.00 must be paid in full.

5. MINIMUM PAYMENT EXAMPLE . If you made only the minimum monthly payment and took no other credit advances, it would take 25 years to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 8.00%. During that period, you would make 120 payments of $66.67 followed by 179 payments of $95.57, with a final payment of $93.99.

6. FEES AND CHARGES . To open and maintain a line of credit, you must pay the following fees to us:

• NY State Mtg Tax: $100.00 (due at closing)
• Filing Fees: $75.00 (due at closing)
• NY State Mtg Tax: $25.00 (pd by lender)
• Credit Report: $20.00 (due at closing)
• Appraisal Fee: $250.00 (due at closing)
• Flood Certificate: $25.00 (due at closing)
• Bank Attorney : $250.00 (due at closing)
• Title Insurance: $125.00 (due at closing)

The cost of any title insurance and mortgage recording tax will be based on the maximum amount of credit available to you, whether it has been advanced or not.

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

8. MINIMUM DRAW REQUIREMENTS . The minimum credit advance that you can receive is $200.00. The minimum initial credit advance must be at least $200.00.

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

10. 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 HIGHEST RATE on corporate loans posted by at least 75% of the USA's thirty largest banks known as the Wall Street Journal Prime Rate and is published in the Wall Street Journal. 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 .125 percent. Ask us for the current index value, margin, discount and annual percentage rate. After you open a line of credit, rate information will be provided on periodic statements that we send you.

11. RATE CHANGES. There is no limit on the amount by which the rate can change in any one year period. The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 14.5000 percent. The minimum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 4.500 percent.

12. MAXIMUM RATE AND PAYMENT EXAMPLES . If you had an outstanding balance of $10,000.00 at the beginning of the draw period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 14.500 percent would be $120.83. The maximum annual percentage rate could be reached in the 1 st month (1 month) following an initial hold of 1 month.

Under the monthly payment option, if you had an outstanding balance of $10,000.00 at the beginning of the repayment period, the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 14.500 percent would be $136.55. The maximum annual percentage rate during the repayment period could be reached in the 2 nd month (2 months).

13. ADDITIONAL TERMS . A Prepayment Penalty equal to the sum of the Bank paid fees associated with the processing and closing of the loan will be assessed if the credit is paid in full and satisfied/terminated within 36 months from the effective date of the line of credit.

• HISTORICAL EXAMPLES . The following table shows 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 July. While only one payment amount per year is shown, payments would have varied during each year. The table assumes that no additional credit advances were taken, that only the minimum payment was 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.
  
  

  Year	Index (%)	Margin* (%)	Annual Percentage Rate (%)	Minimum Monthly Payment ($)
  1996	8.500	-0.250	8.250	68.75
  1997	8.250	-0.250	8.000	66.67
  1998	8.500	-0.250	8.250	68.75
  1999	7.750	-0.250	7.500	62.50
  2000	8.500	-0.250	8.250	68.75
  2001	9.500	-0.250	9.250	77.08
  2002	4.750	-0.250	4.500	37.50
  2003	4.250	-0.250	4.500 (K)	37.50
  2004	4.000	-0.250	4.500 (K)	76.50
  2005	5.250	-0.250	5.000	78.93
  2006	7.250	-0.250	7.000	88.42
  2007	8.250	-0.250	8.000	93.07
  2008	5.000	-0.250	4.750	79.42
  2009	3.250	-0.250	4.500	76.50
  2010	3.250	-0.250	4.500 (K)	78.93
  * This is a margin we have used recently; your margin may be different. (K) This reflects a lifetime floor of 4.500 percent. (O) The repayment period begins in this year.

SERVICING DISCLOSURE STATEMENT
NOTICE TO FIRST LIEN MORTGAGE LOAN APPLICANTS:
THE RIGHT TO COLLECT YOUR MORTGAGE LOAN PAYMENTS MAY BE TRANSFERRED.

You are applying for a mortgage loan covered by the Real Estate Settlement
Procedures Act (RESPA) (12 U.S.C. 2601 et seq.). RESPA gives you certain rights
under Federal law. This statement describes whether the servicing for this loan
may be transferred to a different loan servicer. “Servicing” refers to collecting your
principal, interest, and escrow payments, if any, as well as sending any monthly or
annual statements, tracking account balances, and handling other aspects of your
loan. You will be given advance notice before a transfer occurs.

Servicing Transfer Information

A. We may assign, sell, or transfer the servicing of your loan while the loan
is outstanding.

B. We do not service mortgage loans of the type for which you applied. We
intend to assign, sell, or transfer the servicing of your mortgage loan before the
first payment is due.

C. The loan for which you have applied will be serviced at this financial
institution and we do not intend to sell, transfer, or assign the servicing of the loan.

Acknowledgement of mortgage loan applicant

I/We have read this disclosure form, and understand it contents, as evidenced by my acceptance of this agreement.

I/We understand that this acknowledgement is a required part of the mortgage loan application.

APPRAISAL DISCLOSURE

You have the right to a copy of the appraisal report obtained in connection with your application for credit provided that, if required, you have paid for or are willing to pay for the appraisal. You can get a copy of this report by writing to us at the address listed below. We must hear from you no later than 90 days after you are notified about the action taken on your credit application. (If you withdraw your application, you must make your request for an appraisal report within 90 days of the withdrawal.) You can telephone us, instead of writing, but by doing so you are not assured of preserving your rights.

Contact Us:

Kinderhook Bank
Attn: Loan Department
One Hudson Street
Kinderhook , NY 12106 

Phone: 518.758.7101
Toll free: 1.888.747.8138