| (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 property described in the loan agreement is subject to the
lien of the security document reads: "In addition to the protections
given to the Note Holder under this Note, a Security Document, dated
______________, protects the Note Holder from possible losses that
might result if I do not keep the promises that I make in this Note.
The Security Document describes how and under what conditions I may
be required to make immediate payment in full of any amounts that
I owe under this Note."
(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."
(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 collateral 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 a security document for a Chapter
342, Subchapter G second lien purchase money 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 made a loan 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 Purchase Money 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) "Property" means the real estate that is described
below under the heading "Transfer of Rights in the Property."
(H) "Riders" means all Riders to this Security Document
that I execute.
Attached Graphic
(I) "Applicable Law" means all controlling applicable
federal, Texas and state 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.
(J) "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.
(K) "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.
(L) "Escrow Items" means those items that are described
in Section ___ of this Security Document.
(M) "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.
(N) "Periodic Payment" means the regularly scheduled
amount due for principal and interest under the Note plus any amounts
under this Security Document.
(O) "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.
(P) "Successor in Interest of me" means any party that
has taken title to the Property, whether or not that party has assumed
my obligations under the Loan Agreement.
(Q) "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 Agreement,
I give you a security interest in the Property including existing
and future improvements, easements, fixtures, attachments, replacements
and additions to the Property, insurance refunds, and proceeds."
(3) Transfer of rights in property. The model provision
regarding a transfer of rights in the property reads:
Attached Graphic
(4) Borrower and Lender's promise. The model provision
regarding the borrower and lender's promise to comply with the terms
of the security document reads: "YOU AND I PROMISE:".
(5) Late charges and prepayment. The model provision
regarding late charges and prepayment of principal and interest reads:
Attached Graphic
(6) Funds for escrow items. The model provision regarding
the funds for escrow items reads:
Attached Graphic
(7) Charges and liens. The model provision regarding
charges and liens reads:
Attached Graphic
(8) Property insurance. The model provision regarding
property insurance reads:
Attached Graphic
Cont'd... |
