Home Equity Line of Credit Disclosure

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Introductory rate of Prime minus 1.01%, currently 5.74% APR as of October 11, 2005 is available for four months from the date the account is opened ("Introductory Period").  Introductory APR may vary monthly based on the Prime rate published in the Wall Street Journal .  On the first rate change after the introductory period, the APR will adjust to the regular variable rate.

Regular rate for approved lines of $50,000 or more is Prime + 0% (currently 6.75% APR), lines from $30,000 up to $49,999, Prime + 1.25% (currently 8.00% APR), and for lines from $10,000 up to $29,999, Prime + 2.25% (currently 9.00% APR) for the life of the loan. In MD, the regular rate for approved lines of $50,000 or more is Prime + .25% (currently 7.00% APR), lines from $30,000 up to $49,999, Prime + 1.50% (currently 8.25% APR), and lines from $10,000 up to $29,999, Prime + 2.50% (currently 9.25% APR) for life of loan. Rates apply to lines secured by your primary residence (excluding co-ops and 3-4 family property).  Higher rates may apply to lines secured by other types of ownership (i.e.: second homes and investment property), other product types (i.e.: Stated Income) or where borrower has 10% or less equity in the mortgaged property.  Regular rate may vary monthly.  Maximum APR is 15.9% or 5% over initial regular rate, whichever is greater.  Your home equity account will be secured by a mortgage on your home.  Property insurance is required.  Lines are subject to credit approval, satisfaction of title and appraisal requirements.  No closing costs are charged at account opening, but you may be required to reimburse us for certain fees to third parties if the account is closed within three years of opening.  These fees range from $635 to $14,300. In MD, if your credit line is closed within three years of opening, you may be required to reimburse us for certain fees paid to third parties, excluding the recordation tax.  Lines of credit close through HSBC Mortgage Corporation (USA). This offer does not apply to applications submitted through a mortgage broker.

See your tax advisor regarding tax deductibility of interest paid on loans secured by your home.