1

Fixed P/I Payment:

Selecting payment type 1 indicates that payments for this loan will be a fixed amount. The fixed amount will be entered in the PI Constant field on the Loans > Account Information > Account Detail screen. The Due Date field on that screen will be advanced each time this amount is collected after the billing date. Any amounts collected before the billing date will be treated as a curtailment (extra principal payment).

2

Interest Only/Fixed Principal:

Selecting payment type 2 indicates that payments for this loan will have the interest portion calculated to the next due date on each billing date, and a fixed principal portion will then be added to that interest calculation.

The PI Constant field on the Account Detail screen will contain that fixed principal portion that will be added to the calculated interest. The Next Payment Due amount, also on that screen, will contain the oldest billed interest amount that has not been completely paid.

The Billing Information tab gives a total of all unpaid billed interest and principal in the Total Amount Due field.

Payments will be based on the Payment Application code. The amount to principal, if it is called for by the payment application code for this payment, will be the amount found in the P-I Constant field. The total payment amount and interest only amount of the billing will be stored by the system, and the due date will advance after the interest only amount has been collected after the billing date. Any amounts collected prior to the billing date will be treated as a curtailment (extra principal payment). If the principal amount is not fully collected it will be rebilled on the next billing date as delinquent principal.

Special Feature

The system will calculate the principal portion of a payment based on a predetermined date.

Example: A loan is opened on 6-1-10 and is an interest-only line-of-credit for six months. On 12-1-10, the loan would convert to no longer advancing funds on the line-of-credit and then principal and interest payments would begin.

Details are as follows:

LNPBAL ÷ RTERM x LNFREQ

LNPBAL is the loan principal balance.

RTERM is the difference from the action date to the maturity date (LNMATD) in months.

LNFREQ is the loan payment frequency.

3

Min Pmt or % of Tot - Bills to Due Date:

Selecting payment type 3 indicates that the minimum payment due to roll the Due Date will be determined by the greater of the Payment Percent of Balance and Minimum Payment Due fields. To calculate this payment amount, the Principal Balance is added to the interest accrued up to the due date. This amount is then multiplied by the percentage in the Payment Percent of Balance field to arrive at the payment due. If the amount in Minimum Payment Due is larger than this calculated amount, it becomes the payment due.

You will be required to complete these two fields before leaving the screen. The greater of these two calculations will become the Next Payment Due on the Account Detail screen.

When the loan will be paid off with the calculated minimum payment due, or when the loan matures according to the Maturity Date field on the Account Detail screen, then the minimum payment will be calculated to be the total due on the loan.

The total amount billed will be stored, and the due date will be advanced when this amount is collected after the billing date. Any amounts collected prior to the billing date will be treated as a curtailment (extra principal payment).

As payments are posted, the system compares the amount paid to the billed amount. If the amount paid is greater than the first billing record (in the Billed Interest column) but less than the combination of the first two billing records, the first billing record is satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code.

If the amount paid is greater than the first billing record and the second billing record, but less than the third billing record, then the first two billing records are satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code. This process is continued until all billing records are satisfied. Processing payments in this manner will satisfy as many billing records as possible and will advance the due date before any additional funds are applied to the loan. This will eliminate small amounts remaining in the billing records because funds were used to pay late charges prior to making sure that as many payments were satisfied as possible.

4

Int Only with Min:

Selecting payment type 4 indicates that the payment due will be the greater of the amount of interest calculated as per payment type 2, or the minimum dollar amount in the Minimum Payment Due field.

5

Min Pmt or % of Bal - Bills Only to Billing Date:

Selecting payment type 5 indicates that the payment due will be determined by the Payment Percent of Balance field and Minimum Payment Due field. To calculate this payment amount, the principal balance is multiplied by the percentage in Payment Percent of Balance to arrive at the payment due. However, if the amount in Minimum Payment Due is greater, it becomes the payment due.

This payment type is like type 3, but it does not consider the accrued interest when making its calculation on the Payment Percent of Balance. It is different from type 3 in that the finance charge and the billing is from billing date to billing date.

When the loan will be paid off with the calculated minimum payment due, or when the loan matures, then the minimum payment will be calculated to be the total due on the loan. The total amount billed will be stored and the due date will advance when this amount is collected after the billing date. Any amounts collected prior to the billing date will be treated as a curtailment (extra principal payment).

As payments are posted, the system compares the amount paid to the billed amount. If the amount paid is greater than the first billing record (in the Billed Interest column) but less than the combination of the first two billing records, the first billing record is satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code.

If the amount paid is greater than the first billing record and the second billing record, but less than the third billing record, then the first two billing records are satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code. This process is continued until all billing records are satisfied.

Processing payments in this manner will satisfy as many billing records as possible and will advance the due date before any additional funds are applied to the loan. This will eliminate small amounts remaining in the billing records because funds were used to pay late charges prior to making sure that as many payments were satisfied as possible.

6

Min Pmt or % of Tot - Bills to Billing Date

Selecting payment type 6 indicates that the minimum payment due to roll the Due Date will be determined by the greater of the Payment Percent of Balance and Minimum Payment Due fields. To calculate this payment amount, the Principal Balance is added to the interest accrued up to, but not including the billing date. This amount is then multiplied by the percentage in the Payment Percent of Balance field to arrive at the minimum payment due. If the amount in Minimum Payment Due is larger than this calculated amount, it becomes the payment due.

Payment type 6 is the same as type 3, with one exception. The billing calculation and the finance charges are calculated from billing date to billing date. Type 3 calculates these charges from due date to due date.

As payments are posted, the system compares the amount paid to the billed amount. If the amount paid is greater than the first billing record (in the Billed Interest column) but less than the combination of the first two billing records, the first billing record is satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code.

If the amount paid is greater than the first billing record and the second billing record, but less than the third billing record, then the first two billing records are satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code. This process is continued until all billing records are satisfied.

Processing payments in this manner will satisfy as many billing records as possible and will advance the due date before any additional funds are applied to the loan. This will eliminate small amounts remaining in the billing records because funds were used to pay late charges prior to making sure that as many payments were satisfied as possible.

7

Min Pmt or Finance Charge Plus Percent of Principal Balance

Selecting payment type 7 indicates that the minimum payment due to roll the Due Date is determined by the greater of the Finance Charge plus a percent of Principal Balance and Minimum Payment. To calculate this payment amount, the accrued interest to the bill date is added to a percent of the principal balance. The percent of the principal balance is calculated by multiplying the Principal Balance by the percentage in the Payment Percent of Balance field. If the amount in Minimum Payment is greater than the calculated amount of finance charge plus a percent of the principal balance, then the Minimum Payment becomes the payment due.

As payments are posted, the system compares the amount paid to the billed amount. If the amount paid is greater than the first billing record (in the Billed Interest column) but less than the combination of the first two billing records, the first billing record is satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code.

If the amount paid is greater than the first billing record and the second billing record, but less than the third billing record, then the first two billing records are satisfied, and the remainder is applied first to interest and then to the loan, based on the payment application code. This process is continued until all billing records are satisfied.

Processing payments in this manner will satisfy as many billing records as possible and will advance the due date before any additional funds are applied to the loan. This will eliminate small amounts remaining in the billing records because funds were used to pay late charges prior to making sure that as many payments were satisfied as possible.