SECOND TRUST DEED

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					       INTERNATIONAL RECTIFIER FEDERAL CREDIT UNION - 233 KANSAS STREET - EL SEGUNDO, CA 90245 - [310] 726-8600
           HOURS: TUESDAY THROUGH FRIDAY [EXCEPT HOLIDAYS] 9:30 A.M. TO 1:00 P.M. AND 2:15 P.M. TO 4:00 P.M.
                 Web Page: http://cu.irf.com            E-MAIL ADDRESS: cunion1@irf.com              FAX: 310-726-8637



                                    SECOND TRUST DEED
                                                LOAN POLICY
                                            EFFECTIVE June 1, 2007

OWNER OCCUPIED - 2 N D TRUST DEEDS
The Annual Percentage Rate is to be determined by the Board of Directors and may change from time to time. The rate
currently is:
      7.50% on loans from $10,000 to $150,000 with 80% of appraised value**
      7.75% on loans from $10,000 to $150,000 with 90% of appraised value**
All Owner Occupied 2nd Trust Deed loans maximum repayment period of 15 years.
**The First Trust Deed and the Second Trust Deed combined cannot exceed the percentage of the appraised value of the
property listed above.

INCOME PROPERTY - 2 N D TRUST DEEDS
The Annual Percentage Rate is to be determined by the Board of Directors and may change from time to time. The rate
currently is:
            8.00% from $10,000 to $50,000 with a maximum repayment period of 12 years.
The First Trust Deed and the Second Trust Deed combined cannot exceed 75% of the appraised value of the property.

1.     Loans will be on a five (5) year call option, at this time rates will be reviewed and adjusted (either up or down) to a
       maximum of 2.5 points.
2.     The property must be located within the State of California and will be granted for productive purposes.
3.     There will be no points in connection with Second Trust Deed loans.
4.     There is no pre-payment penalty or balloon payments on Second Trust Deed loans.
5.     Verification of employment and proof of income are required. Previous W2’s in addition to the most recent YTD pay stub.
6.     Second Trust Deed loans are not assumable.
7.     The minimum loan amount shall be $10,000.00. The maximum loan amount shall not exceed $150,000.00 per member.
8.     The property must be appraised by an appraiser approved by the Credit Union.
9.     Required Title Insurance must be provided.
10.    Hazard and Fire Insurance must be maintained for the term of the loan, in a sufficient amount to cover both the First Trust
       Deed and the Second Trust Deed.
11.    Flood Insurance may be required, if the property is located within a flood hazard area. Certification is required.
12.    Member [borrower] is to pay all charges incurred with the Appraisal, Title Insurance, Flood Certification, Credit Report no
       older than 90 days, Sub-Escrow Fee, if any and Recording Fees.
13.    Borrower’s Confidential Information Statement may be required. Borrower must also provide copies of Grant Deed and
       Last Tax Statement, Fire Insurance Policy, and verification of balance owed on First Trust Deed.
14.    THESE RATES APPLY TO NEW LOANS 06-01-07 AND DO NOT EFFECT EXISTING SECOND TRUST DEED LOANS.
15.    Limitation of Funds: Total funds available for Second Trust Deed loans cannot exceed 25% of Credit Union assets.
16.    The minimum advance for refinancing a current Second Trust Deed loan with the Credit Union is $5,000.00.
17.    Current appraisal of six (6) months or less is required for refinancing.
18.    Business loans are not available.
19.    Members may only have one Income Property 2nd Trust Deed
20.    A late payment charge of 5% of the loan payment will be assessed if payment is received after 10 days or more from due
       date.
21.    A processing fee of $300.00 will be refundable at the time of the five (5) year call option.




      Board approved May 24, 2007

              TEMECULA BRANCH: 41915 BUSINESS PARK DRIVE - TEMECULA, CA 92590 - [951] 375-4333
                        OPEN WEDNESDAY, THURSDAY AND FRIDAY - CALL FOR HOURS.