The form of this note is the same as a promissory note, with substantially the following language added:

The undersigned having deposited as collateral security for the payment of this and any other liability of the undersigned to the holder hereof, due or to become due or that may be hereafter contracted, the following property, to wit: (here follows a description of the collateral) the market value of which is now........dollars, with authority to sell, transfer or re-hypothecate said collateral, it being understood that on payment or tender of the amount so due, the holder hereof may return to the undersigned an equal quantity of said securities instead of the securities deposited; with the further right to the holder to call for additional security in case there should be a decline in the market value of the securities deposited herewith, and upon the failure of the undersigned to comply with said demand and to deposit with the holder hereof additional security to be approved by said holder sufficient to cover said decline, this note shall become instantly due and payable as though it had actually matured, and all the rights hereby conferred to dispose of said collateral shall at once be exercisable at the risk of the undersigned in case of any deficiency in realizing proceeds.

Simple Form Of Collateral Note $............ Philadelphia, Pa.................... 192..

.......................................................... after date......promise to pay to the order of...............................................................

......................................................................... Dollars, without defalcation, for value received, having deposited herewith as collateral security

which............authorize the holder of this Note, upon the non-performance of this promise at maturity, to sell; either at the Broker's Board, or at public or private sale, without demanding payment of this Note, or the debt due thereon, and without further notice, and apply the proceeds, or as much thereof as may be necessary, to the payment of this Note, and all necessary expenses and charges, holding.................................responsible for any deficiency.

Full power and authority are hereby given the holder hereof to sell, assign and deliver the whole of the above-mentioned securities or any part thereof or any substitutes therefor or any additions thereto at the Broker's Board or at public or private sale, at the option of said holder or his assigns, on the non-performance of this promise or the non-payment of any of the liabilities above mentioned or at any time or times thereafter, without demand, advertisement or notice, and after deducting all legal or other costs and expenses of collection, sale and delivery, to apply the residue of the proceeds of such sale or sales so made to the payment of any or all of the liabilities above mentioned, as said holder or his assigns shall deem proper, returning the over-plus to the undersigned. It is also understood that upon any sales of any of said collateral securities, said holder may become the purchaser thereof absolutely free from any claim of the undersigned. The makers and indorsers hereof hereby waive the benefit of their Homestead exemption as to this debt and do further waive demand, presentment, protest and notice of dishonor.

The collateral deposited must be salable property, the value of the property, rather than the credit of the borrower, providing the security for the payment of the money. Such loans may be made payable "on time," or "on call.,, In the latter form they are payable at the will of the borrower and callable at the will of the bank. "Call loans" are frequently made at lower rates of interest since they provide a bank with a very liquid (easily converted into money) asset. As a matter of fact, call loans outside of New York City cannot always be readily converted into money, as the call loan market conditions in those places do not always permit the lender to enforce immediate collection.

Collateral Agreement

No...........

Institute National Bank

United States Depositary

Boise, Idaho......................

Agreement Upon Deposit of Collateral

The undersigned ha....this day deposited with the Institute National Bank, the following securities: to be held by said bank, its successors or assigns, as collateral for any and all checks, drafts, notes, indorsements or overdrafts made, or discounts obtained, or other indebtedness incurred by the undersigned or ........legal representatives or assigns, due, or to become due, to said Bank. Said Bank is authorized to sell or dispose of the same at public or private sale without notice, should any part of said indebtedness not be paid when due, and, if at public sale, to become the purchaser thereof.

.............................. ....................................

Receipt For Collateral

No..........

Institute National Bank

United States Depositary

Boise, Idaho......................

Receipt for Collateral

The Institute National Bank has this day received of....................................

the following securities: to be held by said bank, its successors or assigns, as collateral for any and all checks, drafts, notes, indorsements or overdrafts made, or discounts obtained, or other indebtedness incurred by the said..............

..........or........legal representatives or assigns, due, or to become due, to said Bank. Said Bank is authorized to sell or dispose of the same at public or private sale without notice, should any part of said indebtedness not be paid when due, and, if at public sale, to become the purchaser thereof.

Institute National Bank,

By............................Cashier.

Record Of Collateral

No..........

Institute National Bank

United States Depositary

Boise, Idaho......................

Record of Collateral

Security for indebtedness of....................

..............consisting of the following securities:

Agreement signed by: ............................

Receipt given:...................................

Remarks:.........................................

Date released:....................................

Receipt taken up:.................................

To whom and how delivered:......................

Remarks:.........................................