| (25) Power of sale. The licensee has the option to
choose wording to indicate that a Trustee's deed will convey good
title to the Property that cannot be defeated. The model provision
regarding the power of sale reads:
Attached Graphic
(26) Release. If the licensee cannot return the note
to the borrower, the licensee may provide the borrower with a discharge
and release of all obligations under the loan. The discharge must
meet the requirements of Texas Finance Code, §342.454. The model
provision regarding the release of the lien securing the loan agreement
reads: "Upon payment of all that I owe under this Loan Agreement,
you will cancel and return the Note to me and give me, in recordable
form, a release of lien securing the Loan Agreement or a copy of any
endorsement of the Note and assignment of the lien to a lender that
is refinancing the Loan Agreement. If you cannot, you will provide
me with a discharge and release of all obligations under the loan.
I will pay only the cost of recording the release of lien."
(27) Lender's rights and borrower's responsibilities.
The model provision specifying that each person who signs the document
is responsible for each promise and duty in the security document
reads:
Attached Graphic
(28) Trustees and trustee liability. The model provision
regarding trustees and trustee liability reads:
Attached Graphic
(29) Default. The model default provision reads: "Any
default of my agreements with you will be a default of this Security
Document."
(30) Subrogation. The model provision regarding subrogation
reads: "If I ask, you will use proceeds from the Loan Agreement to
pay off all valid outstanding liens against the Property. You will
then own all rights, superior titles, liens, and interests owned or
claimed by any owner or holder of an outstanding lien or debt. You
own these things whether the lien or debt is transferred to you or
whether it is released by the holder upon payment."
(31) Partial invalidity. The model provision regarding
what happens if the sums secured and other charges violate applicable
law reads: "If any portion of the sums secured by this Security Document
cannot be lawfully secured, payments minus those sums will be applied
first to the portions not secured. If any charge provided for in this
Loan Agreement, separately or together with other charges that are
considered part of this Loan Agreement, violates Applicable Law, the
charge is reduced to the extent necessary to eliminate the violation.
Lender will refund the amount of interest or other charges paid to
Lender in excess of the amount permitted by Applicable Law. At Lender's
option, the amount in excess will either be refunded directly to me
or will be applied to reduce the principal of the debt."
(32) Request for notice of default and foreclosure
under superior mortgages or security documents. The model provision
regarding the lender and borrower's request for notice of default
and foreclosure under superior mortgages or security documents reads:
Attached Graphic
(33) Signature blocks. The model provision regarding
signature blocks reads:
Attached Graphic
(34) Acknowledgment. The model provision regarding
the acknowledgment reads:
Attached Graphic
(35) Notice of confidentiality rights disclosure. The
security document must incorporate a "Notice of Confidentiality Rights"
disclosure. The disclosure or notice must:
(A) appear on the top of the first page of the security
document;
(B) be in at least 12-point boldfaced type or 12-point
uppercase lettering; and
(C) be substantially similar to the required notice
or disclosure under Texas Property Code, §11.008(b). The model
notice of confidentiality rights reads: "NOTICE OF CONFIDENTIALITY
RIGHTS: I MAY REMOVE OR STRIKE MY SOCIAL SECURITY NUMBER OR MY DRIVER'S
LICENSE NUMBER FROM THIS DOCUMENT BEFORE IT IS FILED IN THE PUBLIC
RECORDS."
|
| Source Note: The provisions of this §90.503 adopted to be effective August 31, 2006, 31 TexReg 6687; amended to be effective March 15, 2007, 32 TexReg 1239; amended to be effective September 6, 2007, 32 TexReg 5670; amended to be effective September 9, 2010, 35 TexReg 8104; amended to be effective November 5, 2015, 40 TexReg 7635 |
