Construction Loan Agreement

Borrower _________

Builder _________

Building location _________

Loan amount $_____

Completion schedule _________

1. Lender has agreed to loan the borrowers the amount shown and set up the loan funds in a construction loan account secured by a first lien deed of trust or mortgage on a marketable title on the security property.

2. All work is to be done in accordance with the plans and specifications filed with the borrowers' loan application.

3. No work is to be performed and no materials are to be delivered to or placed upon the site until the loan deed of trust or mortgage has been executed and recorded. If the terms of this provision are violated, the builder shall save the lender harmless from any resulting claims.

4. Disbursements are to be made during the construction period based on the estimated percentage of completion and only after inspections have been made by a representative of lender. The amount to cover the incomplete percentage of construction will be retained. A hazard insurance policy must be filed with lender prior to the initial construction disbursement.

5. Final disbursement is to be made upon completion and acceptance of the construction and after the required lien waiver forms have been executed.

6. Any inspections done by lender are for determining the percentage of completion only, and no warranty as to type or quality of construction is made or to be inferred.

(Signature of lender and date)

(Signature of borrower)

(Signature of builder)