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Dear Credit Union Members:

The Board of Directors of the Bureau of Parole Employees Credit Union wishes to extend each Credit Union member a happy and healthy new year.

The Board of Directors are pleased to announce that, effective January 2, 2002, the Bureau of Employees Credit Union will begin using a Risk Based Lending System for all "unsecured personal loans'"

The Risk Based Lending System will utilize the multiple score card design of the Experian/Fair, lssac Risk Model. The quality of information and detailed analysis from this model will assist the Loan Officer and Board of Directors in making credit decisions . The credit risk score obtained from this model will also be categorized to identify those prospects more likely to result in serious delinquency. The Credit Union shall assign interest rates based on the Credit Risk Score Categories established by the Board of Directors. Accordingly, a Credit Union member with a good risk score will receive a better interest rate than a Credit Union member with an average risk score. The Board of Directord has established the following interest rates for the Corresponding risk score.

RATING

RISK SCORE

RATE

A

ABOVE 700

9.00%

B

600-699

11.00%

C

500-599

13.00%

D

499 or BELOW

15.00%

Interest rates shall be reviewed on a monthly basis and are subject to change due to economic indicators.

Credit Union members that have successfully paid off a prior loan with the redit Union may be eligible for an interest rate one level better than their risk score category. The lowest interest rate shall be the "A" category.

All loans are still subject to approval based on the applicant's debt ratio and credit history. If a loan application is rejected, the Board of Directors shall review the application at their next monthly meeting.

The risk based lending policy does not apply to "secured automobile loans".

Sincerely,

BOARD OF DIRECTORS

CURRENT LOAN RATES AS OF June 1, 2009 INVESTMENTS: 12 MONTH CERTIFICATE OF DEPOSIT: .50% 24 MONTH CERTIFICATE OF DEPOSIT: .75% NEW AUTO RATES: 36 MONTHS: 6.00% 48 MONTHS: 6.50% 60 MONTHS: 7.00% USED AUTO RATES: (OVER 25,000 MILES) 9.00%

PERSONAL LOAN RATES AS OF JANUARY 1, 2008 RISK BASED LENDING. PERSONAL LOANS RATING FICO SCORE RATE A ABOVE 700 9.00% B 600-699 11.00% C 500-599 13.00% D 499 or BELOW 15.00% ABOVE LOANS ARE BASED UPON A MINIMUM OF $500.00 AND A MAXIMIUM OF 5.OO% OF YOUR ANNUAL SALARY. CERTAIN RESTRICTIONS APPLY. SEELOAN POLICY FOR FURTHER DETAILS.