| (15) Joint liability. The model provision providing
for joint liability reads: "I understand that you may seek payment
from only me without first looking to any other Borrower. You can
enforce your rights under this Loan Agreement solely against the homestead.
This Loan Agreement is made without personal liability against each
owner of the homestead and the spouse of each owner unless the owner
or spouse obtained this loan by actual fraud. If this loan is obtained
by actual fraud, I will be personally liable for the debt, including
a judgment for any deficiency that results from your sale of the homestead
for an amount less than is owed under this Loan Agreement."
(16) Usury savings clause. The model usury savings
clause reads: "I do not have to pay interest or other amounts that
are more than the law allows."
(17) Savings clause. The model savings clause stating
that if any part of the contract is invalid, the rest remains valid
reads: "If any part of this Loan Agreement is declared invalid, the
rest of the Loan Agreement remains valid. If any part of this Loan
Agreement conflicts with any law, that law will control. The part
of the Loan Agreement that conflicts with any law will be modified
to comply with the law. The rest of the Loan Agreement remains valid."
(18) Contract supersedes prior agreements. For loan
agreements exceeding $50,000, this notice must be boldfaced, capitalized,
underlined, or otherwise set out from the surrounding written material
to be conspicuous. The model integration clause providing that the
contract supersedes prior agreements reads: "This written Loan Agreement
is the final agreement between you and me and may not be changed by
prior, current, or future oral agreements between you and me. There
are no oral agreements between you and me relating to this Loan Agreement.
Any change to this Loan Agreement must be in writing. Both you and
I have to sign written agreements."
(19) Security document. The model provision stating
that the homestead described in the loan agreement is subject to the
lien of the security document reads: "The homestead described above
by the property address is subject to the lien of the Security Document.
I will see the separate Security Document for more information about
my rights and responsibilities."
(20) 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. The Texas Constitution
will be applied to resolve any conflict between the Texas Constitution
and any other law."
(21) 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."
(22) Clause describing collateral. The model provision
describing the collateral reads: "The homestead described above by
the property address is subject to the lien of the Security Document."
(23) Signature blocks. The licensee may also provide
additional signature lines for witness signatures. The model provision
regarding signature blocks reads:
Attached Graphic
(c) Model clauses for the security document for a Chapter
342, Subchapter G second lien home equity loan contract.
(1) The model definitions section reads:
(A) "Loan Agreement" means the Note, Security Document,
deed of trust, any other related document, or any combination of those
documents, under which you have extended credit to me.
(B) "Security Document" means this document, which
is dated ________, together with all Riders to this document.
(C) "I" or "me" means _________________________________________,
the grantor under this Security Document and the person who signed
the Note ("Borrower").
(D) "You" means __________________________________________,
the Lender and any holder entitled to receive payments under the Note.
Your address is _________________________________________. Your NMLS
ID is __________. You are the beneficiary under this Security Document.
The loan originator's name is _________________________________________.
The loan originator's NMLS ID is __________.
(E) "Trustee" is ______________________________. Trustee's
address is ___________________________________.
(F) "Note" means the promissory Note signed by me and
dated ______________. The Note states that the amount I owe you is
_________________ dollars (U.S. $_______) plus interest. I have promised
to pay this debt in regular Periodic Payments and to pay the debt
in full not later than ______________________________ (maturity date).
(G) "My Homestead" means the property that is described
below under the heading "Transfer of Rights in the Property."
(H) "Extension of Credit" means the debt evidenced
by the Note, as defined by Section 50(a)(6), Article XVI of the Texas
Constitution and all the documents executed in connection with the
debt.
(I) "Riders" means all Riders to this Security Document
that I execute.
Attached Graphic
(J) "Applicable Law" means all controlling applicable
federal, Texas and local constitutions, statutes, regulations, administrative
rules, local ordinances, judicial and administrative orders (that
have the effect of law) as well as all applicable final, non-appealable
judicial opinions.
(K) "Community Association Dues, Fees, and Assessments"
means all dues, fees, assessments and other charges that are imposed
on me or My Homestead 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 Security Document.
(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 My Homestead; condemnation or other taking of all or any part of
My Homestead; conveyance instead of condemnation; or misrepresentations
or omissions related to the value or condition of My Homestead.
(O) "Periodic Payment" means the regularly scheduled
amount due for principal and interest under the Note plus any amounts
under this Security Document.
(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
Security Document, "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 of me" means any party that
has taken title to My Homestead, whether or not that party has assumed
my obligations under the Loan Agreement.
(R) "Ground Rents" means amounts I owe if I rented
the real property under the buildings covered by this Security Document.
Such an arrangement usually takes the form of a long-term "ground
lease."
(2) Secured agreement. The model provision regarding
the secured nature of the agreement reads: "To secure this loan, I
give you a security interest in My Homestead including existing and
future improvements, easements, fixtures, attachments, replacements
and additions to the property, insurance refunds, and proceeds. This
security interest is intended to be limited to the homestead property
and not other collateral, as required under the Texas Constitution."
(3) Transfer of rights in property. The model provision
regarding a transfer of rights in the property reads:
Attached Graphic
Cont'd... |
