| (11) Joint and several liability, deed of trust execution,
successors obligated. The model provision regarding joint and several
liability and specifying that the person who signs the contract grants
ownership in the homestead and binds the person's successors and assigns
reads:
Attached Graphic
(12) Usury savings clause. The model usury savings
clause reads: "I do not have to pay interest or other amounts that
are more than Applicable Law allows."
(13) Mailing of notices to borrower. The duty to give
notice is satisfied when it is mailed by first class mail. The model
provision regarding the mailing of notices to the borrower reads:
"Lender or I may mail or deliver any notice to the address above.
Lender or I may change the notice address by giving written notice.
Lender's duty to give me notice will be satisfied when Lender mails
it."
(14) Application of law. The model clause specifying
that federal law and Texas law apply to the contract reads: "Federal
law and Texas law apply to this Loan Agreement."
(15) Rules of construction. The model provision regarding
rules of clause construction reads:
Attached Graphic
(16) Loan agreement copies. The model provision specifying
that the lender will give the borrower a copy of all signed documents
at the time the loan agreement is made reads: "At the time the Loan
Agreement is made, Lender will give me copies of all documents I sign."
(17) Due on sale clause, notice of intent to accelerate,
and notice of acceleration. The model provision regarding the due
on sale clause, notice of intent to accelerate and notice of acceleration
reads: "If all or any interest in the Property is sold or transferred
without Lender's prior written consent, Lender may require immediate
payment in full of all that I owe under this Loan Agreement. Lender
will not exercise this option if Applicable Law prohibits. If Lender
exercises this option, Lender will give me notice that Lender is demanding
payment of all that I owe. This notice will give me a period of not
less than 21 days from the date of the notice within which I must
pay all that I owe under this Loan Agreement. If I fail to pay all
that I owe before the end of this period, Lender may use any remedy
allowed by the Loan Agreement."
(18) Lender, contractor, and borrower's promises and
agreements. The model provision regarding the lender, contractor,
and borrower's promises and agreements reads: "LENDER, CONTRACTOR,
AND I PROMISE AND AGREE:".
(19) Acceleration and remedies. The model provision
regarding acceleration and remedies reads:
Attached Graphic
(20) Power of sale. The model provision regarding the
power of sale reads:
Attached Graphic
(21) Borrower's right to reinstate after acceleration.
The model provision regarding the borrower's right to reinstate after
acceleration reads:
Attached Graphic
(22) Assignment of rents, appointment of receiver,
and lender in possession. The model provision regarding the assignment
of rents, appointment of receiver, and the lender in possession reads:
"As additional security, I assign to you the rents of the Property,
provided that you have the right, prior to acceleration or abandonment
of the Property, to collect and retain the rents as they become due.
Upon acceleration or abandonment, you, by agent or by court-appointed
receiver, will be entitled to enter, take possession, manage the Property,
and collect due and past due rents. All rents you or the court-appointed
receiver collect will be applied first to payment of the cost of management
of the Property and collection of rents, including receiver's fees,
premiums on receiver's bonds, and reasonable attorneys' fees, and
then to the sums secured by this Deed of Trust. You and the receiver
will be liable to account only for rents received."
(23) Release. The model provision regarding the release
of the lien securing the loan agreement reads: "Lender 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. I will pay only the cost of recording the release
of lien."
(24) Trustees and trustee liability. The model provision
regarding trustees and trustee liability reads:
Attached Graphic
(25) Assignment of contractor's lien, and commencement
of work. The model provision regarding the assignment of the contractor's
lien and specifying that no work was commenced before the contract
was executed reads: "Contractor and I have entered into the Contract
for improvements to be made to the Property. I will perform my duties
under the Contract. Under the Contract, I gave Contractor a Lien on
the Property. Contractor permanently transfers the Lien and any other
interest Contractor has in the Property to Lender. As additional security,
Contractor also agrees that the lien created by this Deed of Trust
has priority over the Lien. The purpose of the Note is to pay in whole
or in part the improvements to be made to the Property by the Contractor.
Contractor and I agree that the Lien is for Lender's sole benefit.
Any other interest Contractor has in the Property will be merged with
the Lien, and may be enforced by Lender according to the terms of
this Deed of Trust. Contractor and I further agree that no Work was
performed or material delivered before the Contract was executed."
(26) Subrogation. The model provision regarding subrogation
reads: "If I ask, Lender will use proceeds from the Loan Agreement
to pay off all valid outstanding liens against the Property. Lender
will then own all rights, superior titles, liens, and interests owned
or claimed by any owner or holder of an outstanding lien or debt.
Lender owns these things whether the lien or debt is transferred to
Lender or whether it is released by the holder upon payment."
(27) 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 Deed of Trust
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."
(28) Renewal and extension. The model provision regarding
the renewal and extension of the note secured by the deed of trust
reads: "The Note secured by this Deed of Trust is renewed and extended,
but not in extinguishment of the debt under the Contract identified
in the paragraph entitled "Assignment of Contractor's Lien, Commencement
of Work" and the Note."
(29) Sale of loan, change of loan servicer, notice
of grievance, and lender's right to comply. The model provision regarding
the sale of the loan, change of loan servicer, notice of grievance,
and the lender's right to comply reads: "A full or partial interest
in the Loan Agreement can be sold one or more times without prior
notice to me. The sale may result in a change of the company servicing
or handling the Loan Agreement. The company servicing or handling
the Loan Agreement will collect my monthly payment and will comply
with other servicing conditions required by the Loan Agreement or
Applicable Law. In some cases, the company servicing or handling the
Loan Agreement may change even if the Loan Agreement is not sold.
If the company servicing or handling the Loan Agreement is changed,
I will be given written notice of the change. The notice will state
the name and address of the new company, the address to which my payments
should be made, and any other information required by RESPA. Any notice
of acceleration and opportunity to cure under the Loan Agreement will
satisfy the notice and opportunity to address the alleged violation
provisions of this Section. No agreement between Lender and me or
any third party will limit Lender's ability to comply with Lender's
duties under the Loan Agreement and Applicable Law. Lender and I are
limiting all agreements so that all current or future interest or
fees in connection with this Loan Agreement will not be greater than
the highest amount allowed by Applicable Law. Lender and I intend
to conform the Loan Agreement to the provisions of Applicable Law.
If any part of the Loan Agreement is in conflict with the Applicable
Law, then that part will be corrected or removed. This correction
will be automatic and will not require any amendment or new document.
Lender's right to cure any violation will survive my paying off the
Loan Agreement. My right to cure will override any conflicting provision
of the Loan Agreement. Lender's right to comply as provided in this
Section will survive the payoff of the Loan Agreement. The provisions
of this Section will Cont'd... |
