| (25) OCCC notice. Under §90.105 of this title
(relating to OCCC Notice), the following required notice must be given
by licensees to let consumers know how to file complaints: "For questions
or complaints about this loan, contact (insert name of lender) at
(insert lender's phone number and, at lender's option, one or more
of the following: mailing address, fax number, website, e-mail address).
The lender is licensed and examined under Texas law by the Office
of Consumer Credit Commissioner (OCCC), a state agency. If a complaint
or question cannot be resolved by contacting the lender, consumers
can contact the OCCC to file a complaint or ask a general credit-related
question. OCCC address: 2601 N. Lamar Blvd., Austin, Texas 78705.
Phone: (800) 538-1579. Fax: (512) 936-7610. Website: occc.texas.gov.
E-mail: consumer.complaints@occc.texas.gov."
(26) Collateral. The model clause regarding the collateral
reads: "The Property is subject to the Contract lien. I am responsible
for all obligations in this Note."
(27) Preservation of claims and defenses. The notice
regarding the preservation of claims and defenses reads: "NOTICE.
ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS
AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS
OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF.
RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY
THE DEBTOR HEREUNDER."
(28) Signature blocks. Documents for a home improvement
loan on a homestead must be signed at the office of the lender, an
attorney at law, or a title company. If this provision applies, the
model clause, "This document must be signed at the office of the Lender,
an attorney at law, or a title company" should appear above the signature
of the borrower. The licensee may also provide additional signature
lines for witness signatures. The model signature block reads:
Attached Graphic
(f) Model clauses for a Chapter 342, Subchapter G second
lien home improvement loan deed of trust for use in a transaction
that allows for withdrawals or multiple advances.
(1) Definitions. The model definitions section reads:
(A) "Borrower" is _________________. Borrower's address
is _____________________.
(B) "Contractor" is __________________. Contractor's
address is _______________________.
(C) "Lender" is ____________________. Lender's address
is ___________________________. Lender's NMLS ID is __________. The
loan originator's name is _______________________________. The loan
originator's NMLS ID is __________.
(D) "Trustee" is ____________________. Trustee's address
is _______________________.
(E) "I" or "me" means ________________________________,
the grantor under this Deed of Trust and the person who signed the
Note ("Borrower").
(F) "Loan Agreement" means the Contract, Note, Security
Document, Deed of Trust, any other related document, or any combination
of those documents, under which Lender has made a loan to me.
(G) "Deed of Trust" means this document, which is dated
________, together with all riders to this document.
(H) "Note" means the Texas Home Improvement Mechanic's
Lien Note signed by me and dated ______________ and includes all amounts
secured by this Contract. The Note states that the amount I owe Lender
is _________________ dollars (U.S. $_________) plus interest.
(I) "Property" means the property at (list address
of the Property), whose legal description is (list legal description
of the Property).
(J) "Applicable Law" means all controlling applicable
federal, state, and local law.
(K) "Community Association Dues, Fees, and Assessments"
means all dues, fees, assessments and other charges that are imposed
on me or the Property by a condominium association, homeowners association,
or similar organization.
(L) "Electronic Funds Transfer" means any transfer
of funds, other than a transaction originated by check, draft, or
similar paper instrument, which is initiated through an electronic
terminal, telephonic instrument, computer, or magnetic tape so as
to order, instruct, or authorize a financial institution to debit
or credit an account. The term includes point-of-sale transfers, automated
teller machine transactions, transfers initiated by telephone, wire
transfers, and automated clearinghouse transfers.
(M) "Escrow Items" means those items that are described
in Section ___ of this Deed of Trust.
(N) "Miscellaneous Proceeds" means any compensation,
settlement, award of damages, or proceeds paid by any third party
(other than proceeds paid under my insurance) for: damage or destruction
of the Property; condemnation or other taking of all or any part of
the Property; conveyance instead of condemnation; or misrepresentations
or omissions related to the value or condition of the Property.
(O) "Periodic Payment" means the regularly scheduled
amount due for principal and interest under the Note plus any amounts
under this Deed of Trust.
(P) "RESPA" means the Real Estate Settlement Procedures
Act (12 U.S.C. §§2601-2617) and Regulation X (12 C.F.R.
Part 1024), as amended, or any additional or successor legislation
or regulation that governs the same subject matter. As used in this
Deed of Trust, "RESPA" refers to all requirements and restrictions
that are imposed in regard to a "federally related mortgage loan"
even if the Loan Agreement does not qualify as a "federally related
mortgage loan" under RESPA.
(Q) "Successor in Interest" means any party that has
taken title to the Property.
(R) "Ground Rents" means amounts I owe if I rented
the real property under the buildings covered by this Deed of Trust.
Such an arrangement usually takes the form of a long-term "ground
lease."
(S) "Contract" means the Texas Home Improvement Mechanic's
Lien Contract for Improvement, Power of Sale, and Deed of Trust.
(T) "Lien" means the Mechanic's and Materialman's Lien
on the Property that results from the Contract and the Work performed.
The Lien includes all existing and future improvements, easements,
and rights in the Property.
(2) Transfer of rights in property. The model provision
regarding a transfer of rights in the property reads:
Attached Graphic
(3) Payment of late charges and prepayment. The model
provision regarding the payment of late charges and prepayment of
principal and interest reads:
Attached Graphic
(4) Funds for escrow items. The model provision regarding
the funds for escrow items reads:
Attached Graphic
(5) Charges and liens. The model provision regarding
charges and liens reads:
Attached Graphic
(6) Property insurance. The model provision regarding
property insurance reads:
Attached Graphic
(7) Preservation, maintenance, protection, and inspection
of property. The model provision regarding preservation, maintenance,
protection, and inspection of the property reads: "I will not destroy,
damage, or impair the Property, allow it to deteriorate, or commit
waste. Whether or not I live in the Property, I will maintain it in
order to prevent it from deteriorating or decreasing in value due
to its condition. I will promptly repair the damage to the Property
to avoid further deterioration or damage unless Lender and I agree
in writing that it is economically unreasonable. I will be responsible
for repairing or restoring the Property only if Lender releases the
insurance or condemnation proceeds for the damage to or the taking
of the Property. Lender may release proceeds for the repairs and restoration
in a single payment or in a series of payments as the Work is completed.
I still am obligated to complete repairs or restoration of the Property
even if there are not enough proceeds to complete the Work. If this
Deed of Trust secures a unit in a condominium or planned unit development,
I will perform all of my obligations under the declaration or covenants
creating or governing the condominium or planned unit development,
and any other relevant document. Lender or Lender's agent may inspect
the Property. Lender may inspect the interior of the Property with
reasonable cause. Lender will give me notice stating reasonable cause
when or before the interior inspection occurs."
(9) Assignment of miscellaneous proceeds and forfeiture.
The model provision regarding the assignment of miscellaneous proceeds
and forfeiture reads:
Attached Graphic
(10) Forbearance not a waiver. The model provision
specifying that the borrower is not released from liability if the
lender modifies the payment schedule reads: "If Lender doesn't enforce
Lender's rights every time, Lender can still enforce them later."
Cont'd... |
