| (9) 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 you and I agree in
writing that it is economically unreasonable. I will be responsible
for repairing or restoring the Property only if you release the insurance
or condemnation proceeds for the damage to or the taking of the Property.
You 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 Security
Document 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. You or your agent may inspect the
Property. You may inspect the interior of the Property with reasonable
cause. You will give me notice stating reasonable cause when or before
the interior inspection occurs."
(10) Protection of lender's interest in property and
rights under security document. The model provision regarding the
protection of the lender's interest in the property and rights under
the security document reads:
Attached Graphic
(11) Assignment of miscellaneous proceeds and forfeiture.
The model provision regarding the assignment of miscellaneous proceeds
and forfeiture reads:
Attached Graphic
(12) Forbearance not a waiver. The model provision
specifying that the borrower is not released from liability if the
licensee modifies the payment schedule reads: "My successors and I
will not be released from liability if you extend the time for payment
or modify the payment schedule. If I pay late, you will not have to
sue me or my successor to require timely future payments. You may
refuse to extend time for payment or modify this Loan Agreement even
if I request it. If you do not enforce your rights every time, you
may enforce them later."
(13) Joint and several liability, security document
execution, successors obligated. The model provision regarding joint
and several liability and specifying that the person who signs the
contract grants his ownership in the property and binds his successors
and assigns reads:
Attached Graphic
(14) Extension of credit charges. The model provision
for the extension of credit charges reads:
Attached Graphic
(15) Delivery of notices. The model provision regarding
the delivery of notices reads: "Under the Loan Agreement, you and
I will give notices to each other in writing. Any notice under the
Loan Agreement will be considered given to me when it is mailed by
first class mail or when actually delivered to me at my address if
given by another means. You will give notice to the Property address
unless I provide you a different address. I will notify you promptly
of any change of address. I will comply with any reasonable procedure
for giving a change of address that you provide. There will only be
one address for notice under the Loan Agreement. Notice to me will
be considered notice to all persons who are obligated under the Loan
Agreement unless Applicable Law requires a separate notice. I may
give you notice by delivering or mailing it by first class mail to
the address provided by you, unless you require a different procedure.
You, however, will not receive notice under the Loan Agreement until
you actually receive it. Legal requirements governing notices subject
to the Loan Agreement will prevail over conditions in the Loan Agreement."
(16) Governing law and severability. The model provision
regarding the law governing the contract, stating that if any part
of the contract is invalid, the rest of the contract remains valid
reads: "The Loan Agreement will be governed by Texas law and federal
law. If any provision in the Loan Agreement conflicts with any legal
requirement, all non-conflicting provisions will remain effective."
(17) Rules of construction. The model provision regarding
rules of clause construction reads:
Attached Graphic
(18) 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, you will give me copies of all documents I sign."
(19) Transfer of interest in property. The model provision
regarding a transfer of interest in the property reads: "Interest
in the Property" means any legal or beneficial interest. This term
includes those beneficial interests transferred in a bond for deed,
contract for deed, installment sales contract or escrow agreement
(the intent of which is the transfer of title by me at a future date
to a purchaser). If any part of the Property is sold or transferred
without your prior written permission, you may require immediate payment
of all I owe. You will not exercise this option if disallowed by Applicable
Law. If you accelerate, you will give me notice. The notice of acceleration
will allow me at least 21 days from the date the notice is given to
pay all I owe. If I fail to timely pay all I owe, you may pursue any
remedy allowed by the Loan Agreement without further notice or demand.
(20) Borrower's right to reinstate after acceleration.
The model provision regarding the borrower's right to reinstate after
acceleration reads:
Attached Graphic
(21) Sale of note, 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 you and me or any
third party will limit your ability to comply with your duties under
the Loan Agreement and the Applicable Law. You 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. You 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. Your right to correct any violation
will survive my paying off the Loan Agreement. My right to correct
will override any conflicting provision of the Loan Agreement. Your
right to comply as provided in this Section will survive the payoff
of the Loan Agreement. The provisions of this Section will supersede
any inconsistent provision of the Loan Agreement."
(22) Hazardous substances. The model provision regarding
hazardous substances reads:
Attached Graphic
(23) Acceleration and remedies. The model provision
regarding acceleration and remedies reads:
Attached Graphic
(24) Assignment of rents, appointment of receiver,
and lender in possession. The model provision regarding 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 I 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 costs 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 Security Document. You and the
receiver will be liable to account only for rents received."
Cont'd... |
