HAMILTON BANK OVERDRAFT LINE OF CREDIT AGREEMENT 1. This agreement will cover the Overdraft Line of Credit connected to your checking account. If your application for credit is approved by Hamilton Bank, “Bank”, you agree to be bound by the terms and conditions of this Agreement. If your checking account is subject to the order of more than one person, your liability under this agreement is joint and several and this Agreement covers each of you and your heirs and legal representatives. Your rights under this Agreement belong to you only and may not be transferred or assigned. The Bank may transfer or assign its rights under this Agreement. 2. The maximum amount of your Overdraft Line of Credit will appear on your periodic statement. You agree your unpaid principal balance will not exceed this amount and to pay promptly in accordance with this Agreement. The Bank reserves the right to increase or decrease the amount of your Overdraft Line of Credit and alter the terms and conditions of this agreement. All changes will apply to amounts you owe when this change goes into effect. The Bank will notify you of any changes in this agreement. However, if you close your Overdraft Line of Credit in accordance with paragraph 8 before the beginning of the billing cycle in which the change goes into effect, the old terms will still apply to your existing loan balance. 3. Your checking account Overdraft Line of Credit will be accessed if there are insufficient funds in your checking account to cover your checks, transactions at the ATM or point of sale transactions. Anytime you increase the amount of your overdraft, you consolidate your previous balance with the new amount of credit extended. 4. The current minimum monthly payment will be the greater of 5% of the amount borrowed plus finance charge or $25.00 plus finance charge, whichever is greater. The minimum payment due on each statement will include the current minimum payment and any amount that is past due. Unless the principal balance is less than twenty five dollars ($25.00), the current minimum payment will never be less than twenty five dollars ($25.00). 5. Payments will first be applied to the accrued FINANCE CHARGE and then to the outstanding principal balance of the loan. Payments must be received by the close of business hours on a business day at Hamilton Bank, 501Fairmount Avenue, Suite 200, Baltimore MD 21286-5469, or any convenient branch office, in order to be credited as of the date of receipt, except that mail payments will not be credited on Saturdays or legal holidays. 6. FINANCE CHARGES: Each credit advance that you receive will be charged immediately to your Overdraft Line of Credit. A finance charge accrues on the principal balance of your Overdraft Line of Credit from the date of each credit advance until your Overdraft Line of Credit is paid in full. The Finance Charge is calculated by multiplying the number of days in the monthly billing period times the Average Daily Balance (including current transactions) times the Daily Periodic Rate in effect during such monthly billing period. This initial Daily Periodic Rate is ________________ for which the corresponding ANNUAL PERCENTAGE RATE is 18%. The ANNUAL PERCENTAGE RATE includes only interest and no other costs. The Daily Periodic Rate is 1/365 of the ANNUAL PERCENTAGE RATE (1/366 in a leap year). To get the Average Daily Balance, the Bank takes the Beginning Balance of your Overdraft Line of Credit each day, adds any new credit advances, and subtracts any payments or credits. The Bank does not include unpaid Finance Charges, late charges or bad check fees. This gives the Bank the Average Daily Balance. Then, the Bank adds up all the Daily Balances for the billing cycle and divides the total by the number of days in the billing cycle. This gives the Bank the Average Daily Balance. 7. ALL DEPOSITS YOU MAKE IN YOUR CHECKING ACCOUNT WILL BE ADDED TO YOUR CHECKING ACCOUNT BALANCE AND WILL NOT BE TREATED AS LOAN PAYMENTS. Your checking account is just like any other checking account at the Bank that does not have overdraft protection, and all checking activity and other checking charges are governed by your depository agreement with the Bank, the rules and regulations of the Bank, and any applicable Federal, State, and Local laws. 8. If at any time you wish to terminate the Overdraft Line of Credit, you need only send the Bank a written statement to that effect including name, current mailing address and account number. Address this written statement to Hamilton Bank,501 Fairmount Avenue, Suite 200, Baltimore MD 21286-5469. The termination will be effective upon acknowledgment by the Bank that your request has been received. However, your obligation to repay amounts you already owe under the Agreement will continue. The Bank may, at its option, treat any check drawn by you before the effective date of termination as a request for a loan under this Agreement if it is for an amount in excess of your checking account balance. The Bank, at its option, may terminate your Overdraft Line of Credit as to future loans at any time by mailing to you a notice of termination. Termination is effective upon delivery of the notice by the post office. For termination rights in the event of a default, see paragraph 9. 9. You will be considered in default of this Agreement if: (a) any credit information you furnished to the bank, is materially incorrect in any respect, (b) you miss a payment due under the agreement, (c) you become insolvent or undergo any other adverse financial change, (d) your checking account is closed. Whenever you are in default as provided in this paragraph, the Bank at its option, may terminate your Overdraft Line of Credit and declare the entire balance of your Overdraft Line of Credit due and payable at once without further notice or demand. If you default in this Agreement, the Bank may offset your liability against deposits or other property held by the Bank. 10. If you close your checking account, the Overdraft Line of Credit will be terminated. Any outstanding balance will be billed to you during the next billing cycle and payment in full is due. 11. If more then one borrower signed the application for credit, each authorizes the other to engage in all activities permissible under this agreement and each borrower is fully responsible to the Bank for the actions of any other borrower. Notice given by the Bank to one borrower constitutes notice to all. 12. Any waiver, modification or other allowance regarding any rights of the Bank contained in this Agreement applies only to the specific instance involved and does not restrict or prevent the assertion by the Bank of those rights with regard to future acts, events or conditions. 13. Payments not received within 15 days of cycle due date will be assessed a late charge equal to the greater of $15.00 or 5% of the monthly payment amount. 14. An Annual Fee of $25.00 will be charged during the first billing cycle of the year. 15. The Bank reserves the right to request updated financial information on a periodic basis. Interest Rate and Interest Charges APR for Cash Advances 18.00% If you are charged interest, the charge will be no less than Minimum Interest Charge $1.50 Paying Interest You will be charged interest from the transaction date. Fees Annual Fees Penalty Fees Late Payment $25.00 $15.00 or 5% of the monthly payment How We Will Calculate Your Balance: We use a method called "average daily balance (including new purchases). *See your account agreement for more details. Billing Rights: Information on your rights to dispute transactions and how to exercise those rights is provided in your account agreement I/We hereby acknowledge receipt of this agreement provided by Hamilton Bank, (“The Bank”). _______________________________________ Applicant Date _____________________________________ Applicant Date