Malvern Bank, National Association Home Equity Line of Credit Application

HOME EQUITY LINE OF CREDIT (This is neither a contract nor a commitment to lend)
This disclosure contains important information about our *Home Equity Line of Credit. It describes the Home Equity Line of Credit* you are considering. You should read it carefully and keep a copy for your records.
Creditor:	Malvern Bank, National Association 42 E LANCASTER AVENUE PAOLI, PA 19301	Date:

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:
     A. Terminate your line of credit and require you to pay us the entire outstanding balance in one payment;
     B. Refuse to make additional extensions of credit;
     C. Reduce your credit limit; and
     D. Make specific changes that are set forth in your agreement with us.
We can terminate your line of credit and require you to pay us the entire outstanding balance in one payment if:
     A. You engage in fraud or material misrepresentation in connection with the line of credit;
     B. You fail to make a payment as required by the agreement; or
     C. Your action or inaction adversely affects the collateral or our rights in the collateral.
We can refuse to make additional extensions of credit or reduce your credit limit if:
     A. The value of the dwelling securing the line of credit declines significantly below its appraised value for purposes of the line of credit;
     B. We reasonably believe you will not be able to meet the repayment requirements under the line of credit due to a material change in your financial circumstances;
     C. You are in default of a material obligation of the agreement;
     D. Government action prevents us from imposing the annual percentage rate provided for in the agreement, or impairs our security interest such that the value of the interest is less than 120 percent of the credit limit on the line of credit;
     E. A regulatory agency has notified us that continued advances would constitute an unsafe and unsound practice; or
     F. The maximum annual percentage rate is reached.
The initial agreement permits us to make certain changes in the terms of the line of credit at specified times or upon the occurrence of specified events.
4. HOW YOUR PAYMENT CAN CHANGE AND MINIMUM PAYMENT REQUIREMENTS. Your payment can change after the first 6 months, based on the changes in the interest rate. You can obtain credit advances indefinitely. Payments will be due monthly. Your minimum monthly payment will equal the greater of the following:
     · $50.00; or
     · The amount of accrued finance and other charges plus 1/180 of the principal balance outstanding on the last day of the billing cycle.
The minimum payment amount will be rounded to the nearest $.01. Whenever a flat dollar amount is used to determine the minimum payment however, the minimum payment will be rounded to the nearest $.01.
5. MINIMUM PAYMENT EXAMPLE. If you made only the minimum monthly payment and took no other credit advances, it would take 20 years and 10 months to pay off a credit advance of $10,000.00 at an ANNUAL PERCENTAGE RATE of 4.500%. During that period, you would make 249 payments varying between $93.10 and $50.00, with a final payment of $10.99.
6. FEES AND CHARGES. You must pay certain fees to third parties, such as appraisers, credit reporting firms, and government agencies. These fees generally total $75.00 to $200.00. If you ask, we will provide you with an itemization of the fees you will have to pay to third parties.
You must carry insurance on the property that secures the line of credit.
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 by check. The minimum credit advance by ATM is $300.00.
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 the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks known as the Wall Street Journal U.S. 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. The initial annual percentage rate is discounted - it is not based on the index and margin used for later rate adjustments. The initial rate will be in effect for 6 months. 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.
    · This Line of Credit has an introductory INTEREST RATE for the first 6 months.
    · After 6 months, The ANNUAL PERCENTAGE RATE can change monthly, but will never increase or decrease by more than 2.000 percentage point(s) per adjustment.
    · The maximum ANNUAL PERCENTAGE RATE that can apply during the line of credit is 18.000 percent.
This line of credit has a "preferred rate" provision. This means that if you terminate your automatic debit agreement with us, your annual percentage rate will increase. Your ANNUAL PERCENTAGE RATE will be determined by adding 1.250 percentage point(s) to the index value plus margin value normally used to calculate your annual percentage rate. This new annual percentage rate may be affected by rate caps.
12. MAXIMUM RATE AND PAYMENT EXAMPLES. If you had an outstanding balance of $10,000.00 the minimum monthly payment at the maximum ANNUAL PERCENTAGE RATE of 18.000 percent would be $205.60. The maximum annual percentage rate could be reached in the 85th month (7 years, 1 month) following an initial hold of 6 months.
13. 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 ($)
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014	9.500 6.750 4.750 4.000 4.250 6.250 8.250 8.250 5.000 3.250 3.250 3.250 3.250 3.250 3.250	1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250 1.250	9.200(L) 8.000 6.000 5.250 5.500 7.500 9.500 9.500 6.250 4.500 4.500 4.500 4.500 4.500 4.500	132.27 114.35 92.38 81.28 77.62 84.52 90.21 84.37 63.06 50.99 50.00 50.00 50.00 50.00 50.00

*This is a margin we have used recently; your margin may be different.
(L) This is a 1.550 percentage point discount that we have used recently, your line of credit may have a different discount amount.

Equity Plus II Line of Credit Application

Loan Information

Loan Amount: Purpose: Loan Type: Individual Joint

(If this is an application for joint credit, Borrower and Co-Borrower each agree that we intend to apply for joint credit.)

I/We desire automatic payment from Malvern Bank, National Association checking account number

Applicant (Income verification will be required)

First Name M.I. Last Name

Birth Date Social Security No. Number of dependents, excluding self

Home Street Address

City State Zip How long at this address? Yrs. Mos.

Home Phone (include area code)

Name of current mortgage holder

Balance owed $ Monthly payment $

Does mortgage payment include taxes & insurance? YesNo

If no, list annual amount for taxes & insurance $

Name of business/employer

Business phone (include area code) How long employed there? Yrs. Mos.

Position held Gross monthly salary $ Self-employed Retired

Other income (Applicant & Co-Applicant)
Alimony, child support or separate maintenance need not be revealed if Borrower or Co-Borrower does not choose to have it considered for repaying this loan.

Gross monthly amount $ Name & address of source

Co-Applicant (Income Verification will be required)

First Name M.I. Last Name

Birth Date Social Security No.

Home Street Address (if different from applicant’s)

City State Zip How long at this address? Yrs. Mos.

Home Phone (include area code)

Name of current mortgage holder or landlord

Name of business/employer

Business phone (include area code) How long employed there? Yrs. Mos.

Position held Gross monthly salary $ Self-employed Retired

Property Information (Copy of homeowner’s policy will be required)

Estimated value of home $ Purchase price $

Name of insurance agent Insurance agent phone
(include area code)

Customer Certification

Please read the following before signing and submitting your application:

This application is submitted to obtain credit. I/we agree that Malvern Bank, National Association may make inquiries and obtain credit
reports to verify information I/we provided. I/we also authorize Malvern Bank, National Association to provide credit and account information to and respond to requests for information from others. If this is a joint application, the applicant and co-applicant shall be jointly and severally liable for any and all credit extended from time to time. Lender or anyone authorized by lender may inspect the property for the sole purpose of determining value. The lender or anyone authorized by the lender may obtain or verify any employment, credit or other information relating to my/our application for a home equity installment loan. The lender may retain this application even if the loan is not granted.

By signing and submitting this application, I/we certify that all information herein is true and correct as of the date submitted and
acknowledge my/our understanding that nay intentional or negligent misrepresentation(s) of the information contained in this
application may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the
provisions of Title 18, United States Code, Section 1001, et seq. and liability for monetary damages to the Lender, its agents,
successors and assigns, insurers and any other person who may suffer any loss due to reliance upon any misrepresentation
which I/we have made on this application

Federal law requires financial institutions to obtain sufficient information to verify your identity. You may be asked several questions and to provide one or more forms of identification to fulfill this requirement. In some instances we may use outside sources to confirm this information. The information you provide is protected by our privacy policy and federal law.

Applicant Signature Date

Co-Applicant Signature Date