Aircraft Program Pricing Guidlines (effective for August 1, 2017)

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1 Aircraft Program Pricing Guidlines (effective for August 1, 2017) Advance / LTV < 75% 76% - 85% < 75% 76% - 85% Greater than $150, % 3.99% 4.74% 4.99% Specialized Lending: ext specializedlending@usallliance.org Program Manager: Alex Schmidt (W) x 1282 (C) (F) aschmidt@usalliance.org Tier 1 Tier 2 Tier 3 Score Greater than Max DTI 50% 45% 40% Max PTI 10% 10% 10% < 75% 76% - 85% 5.74% 5.99% $50,001 to $150, % 4.24% 4.99% 5.24% 5.99% 6.24% $50,000 or Less 4.49% 4.74% 5.49% 5.74% 6.49% 6.74% 2.0% Participation to a Maximum of $20,000 Rates Valid For 30 Days from Approval Notice Date Credit Approval Valid for 60 Days from Approval Notice Date New Aircraft Advance Rate is based upon Manufacturer's Invoice (new is the current or prior model year if the aircraft has never been titled) Used Aircraft Advance Rate will be based upon VREF Retail Value. NAAA can be accepted in place of VREF Retail. Loan is a Consumer loan - No Essential Business use, or commercial use of the aircraft. Title must be Clean and Clear with the FAA prior to closing Add 100 (1.0%) Basis Points to the calculated Rate for Aircrafts over 25 years old. Add 100 (1.0%) Basis Points to the calculated Rate for Aircrafts which are classified as Light-Sport or Experimental. Maximum advance or loan to value for this classification is 80% Minimum Term 60 months Primary Earner's Score will determine the credit tier used for pricing above, with a maximum of two borrowers per loan. Flight Club Loans are available, please call Alexander Schmidt for additional details and guidelines. All Exceptions to above guidelines will be priced on a case by case basis Borrower(s) must Qualify for USALLIANCE Membership, all rates include 25 basis points (0.25%) discount for establishment of automatic payment. Max Term for any Aircraft is 180 months. 120 months below $25, Transactions greater than $75,000 qualify for 240 month amortization with a 120 month balloon. All Aircraft Loans must meet USALLIANCE "Aircraft Loan Closing Requirements", "Insurance Requirements", and Valuation Requirements 100% Participation Charge-Back for any Payoff or Event of Default within 180 days of funding. No Participation is paid for refinances of existing USALLIANCE Loans.

2 USALLIANCE Specialized Underwriting Requirements All Applicants: Completed and signed Loan Application for all applicants and persons having ownership in the asset. Legible copies of each applicant s Driver s License or Passport Completed, signed and dated Personal Financial Statement (not older than 60 days) Bank and Brokerage Statements supporting liquid assets as disclosed on the PFS (not older than 30 days) Copies of recent Bank Statements and Brokerage Account (not older than 60 days). Two most recent Personal Tax Returns for each applicant (include all schedules: A through E and all K- 1 s) Two most recent Paystubs (not older than 30 days) Include most recent W2(s) where current year personal tax return has yet to be filed Self-Employed Applicants: Two (2) years Corporate Returns (1120, 1065 or 1120S - include all K1s where applicable) Current Balance Sheet and Profit and Loss Statement (not older than 90 days) Brief description and history of the business(s) Additional Items Required: Existing Vessel Survey (Pre-Owned) Aircraft VREF Reference Guide Valuation (Pre-Owned) Manufacturer s Invoice (New Vessels, New Aircraft and New RV s) Clearwater, Florida Location: US Highway 19 North, Suite 103 Clearwater, Florida Rye New York, Location (USALLIANCE Corporate Headquarters): 411 Theodore Fremd Ave Suite 350 Rye, New York Contact Information T: (800) Ext F: (813) E: SpecializedLending@USALLIANCE.org

3 AIRCRAFT LOAN CLOSING REQUIREMENTS Required for all USALLIANCE Aircraft Loans Signed and dated USALLIANCE Membership Application (Please ensure that the appropriate Membership Qualification for each borrower is selected) Signed and dated USALLIANCE Express Application Open an Escrow Account and Provide Title Search on chosen Aircraft. Aero-Space Reports, Inc. is a USALLIANCE approved Aircraft Title & Escrow Service Company. Call and ask for Lisa or Melissa Order a copy of the Accident/Incident Report for the Aircraft, from Title & Escrow Service Company Certificate of Insurance or Insurance Binder (see USALLIANCE Aircraft Insurance Requirement Form) Copies of the First Entry in the Airframe and Engine Log Books Copies of the Current Annual Inspection for the Airframe and Engine Aircraft Specification Sheet including Airframe and Engine Manufacturer and Model Numbers Copy of Valid Pilots License or Medical Certificate. Completed copy of the USALLIANCE Aircraft Member Information Form An enlarged legible copy of each borrower s Valid Driver License (required with underwriting) For Aircraft Purchases: Receipt of FAA Application for Registration (Form ) from USALLIANCE approved Title and Escrow Service Company Receipt of FAA Bill of Sale (Form ) from USALLIANCE approved Title and Escrow Service Company Fully Executed copy of Purchase and Sales Agreement Items to be Signed at Closing: Aircraft Security Agreement Loan Security Agreement/Disclosure, Closed End Agreement ACH form- complete with Banking information * Please validate Registration Number (N number), Serial Number and Model Numbers for the Aircraft. Loan must be closed through an approved Aircraft Title & Escrow Service Company. There is a required one-time $90.00 charge for LSI (Lenders Single Interest) Insurance Fee which is added to the approved loan amount at closing.

4 Aircraft Loan Insurance Requirements General Endorsements and Notice: Insurance shall be placed with companies, underwriters, associations, clubs or underwriting funds having an A.M. Best rating of not less than B. Lienholder with Loss Payee endorsement: USAlliance Federal Credit Union ISAOA PO Box 5517 Towson, MD USALLIANCE requires a minimum of 30 Days Cancellation notice with the policy. The Insurance Binder must start on or before the note date. The preferable form of evidence for property insurance is ACORD 27. Coverage(s): Property or Airframe coverage is required for the agreed value of the aircraft, not to be less than USALLIANCE loan amount. Actual Cash Value (ACV) is not acceptable. Deductibles may not exceed 2% of the Property or Hull and Machinery coverage. Breach of Warranty is required for all loans. Coverage must be equal to or greater than the note amount. Liability Coverage is required as per state statute where applicable. * These insurance requirements are for pleasure aircrafts only. All exceptions require USALLIANCE approval.

5 AIRCRAFT DESKTOP APPRAISAL REQUIREMENTS All appraisals must meet the following requirements: The appraiser must be an active member in good standing with either the National Aircraft Appraisers Association. (NAAA) or American Society of Appraisers (ASA), The Appraisal must be prepared for the benefit of USAlliance and/or the borrower(s), The Appraisal must include a description and specifications of the aircraft, including; Aircraft Model number, Serial Number, Registration Number, and current aircraft maintenance condition, The appraisal must include, current market value of the aircraft, this should be determined by a study of the current and historical market for the aircraft, The appraisal must include all engine serial numbers including the number of hours and horse power for each engine, The appraisal must be completed within 30 days of USALLIANCE loan approval letter date, The appraisal must include the appraiser s certifications.

6 AIRCRAFT MEMBER INFORMATION FORM Application Number: Primary Borrower Last Name: Additional Applicant Information: Home Phone Cell Phone Work Phone Borrower: Co-Borrower: Airport/Hanger Information: Airport Name: Address: City, State, Zip: 1st Personal Reference (not living with borrower(s)): Full Name: Phone Number: Address: Relationship: 2nd Personal Reference (not living with borrower(s)): Full Name: Phone Number: Address: Relationship: Prior Aircraft Experience: Year, Make, Model: Years Owned: Financed Institution: YES NO