This addendum is incorporated into and becomes part of your LOANLINER Credit Agreement.  Please keep this attached to your LOANLINER Credit Agreement.  Rates are Based on individual credit worthiness.

Rates Effective June 30th, 2008

Variable Rate Home Equity Line of Credit Loans
Variable Rate	Min Rate	Index	Margin	Interest Rate	Term	Points	Cap
80% LTV	5.75% APR	8.25% APR	0%	5.75%  APR 0.015753% Daily Periodic Rate	15 Yr	None	12.00% APR
Maximum Line of Credit $250,000				Prime Rate + Margin = APR Change in January, April, July and October
Minimum Line of Credit $    5,000				No Annual Renewal Fees.  Please ask about closing costs.
Minimum Subsequent Advances $ 250				Minimum APR 5.75%  Maximum APR 12.00%
Fixed Rate Loans - 80% ltv
10 year 6.50% APR				15 year 6.75% APR		30 year 7.00% APR
Payment example: APR = Annual Percentage Rate.  Pay $11.36 per month, per $1,000 borrowed at 6.50% for 120 months.

Returned Check Fee:  On all subaccounts, if a check or share draft is returned unpaid, you agree to pay a fee of $25.00 Late Charges:  For balances less than $15,000, if your payment is 10 or more days late, you will pay a late charge of 3.00% of the past due payment or $20.00, whichever is greater.  Late payments on balances over $15,000 or more have a late charge equal to the greater of 6.00% of the past due payment or $20.00.  There is a ten (10) day grace period for the overdraft protection subaccount. Collection Costs:  You agree to pay all costs of collecting the amount you owe under the Agreement, including court costs and reasonable attorney fees. Rates are based on individual credit worthiness. Rates listed are the lowest rates available. The actual rate will be disclosed before you become obligated. Financing of collaterized loans based on the manufacturer's suggested retail (MSRP) and Kelly Blue Book Guide on used collateral. All loans and terms are subject to approval. All rates and terms are subject to change without notice. Ask about rate discounts available Refinancing existing Valley Oak loans to get the lower rate requires a minimum of $1,000 increase in loan proceeds, or a fee of $100.00 will be assessed.