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Prepayment (Make Whole) Rate Option

Loans with this option are not available to be prepaid or converted during the initial fixed rate period without the potential of the customer being assessed premiums. The assurance that the loan will not be prepaid for the entire fixed rate period allows GreenStone to fund these loans with the lowest cost debt available and pass the savings on to the customer. This option is available for 5, 7 and 10 year adjustable rate real estate loans and 10 year fixed rate real estate loans.

This option may be appropriate in the following circumstances:

• If you are sure you will not need or wish to prepay your principal on your loan during the pricing period.
• If you want to have the lower rate associated with the prepayment penalty product.
• If you understand the significance of the penalty should you need, or want, to prepay your loan during the pricing period.

Prepayment Premium

The prepayment premium is based on a formula to compute the economic loss resulting from prepayment or conversion prior to the end of the fixed rate period. These loans are match funded with bonds that must be held to scheduled maturity; therefore, funds prepaid must be reinvested at the current Federal Farm Credit Bond rate until scheduled maturity. The prepayment premium is calculated based on the present value of the difference between the loan's bill rate and the Bond rate times the amount prepaid. GreenStone will calculate the amount of the premium at the time of prepayment. FOr information on how the penalty is calculated, please contact GreenStone's Chief Financial Officer.

Minimum Premium

There is a minimum premium charge for prepayments to cover administrative expense in handling the prepayment. This amount is set by GreenStone.

Funds Held Limit

Customers with the Prepayment (Make Whole) Rate Option are limited to a maximum of 10% of their original loan balance in funds held at any time.

Repricing of Adjustable Rate Loans

When Prepayment (Make Whole) Rate Option adjustable rate loans reprice, they automatically reprice to a no prepayment penalty option. If you would like to reprice to another prepayment premium option, you must request it by endorsing an appropriate conversion agreement. This is to ensure that you are always aware of the prepayment premium covenants.

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