322
Appx. B FORECLOSURE PREVENTION COUNSELING
10. UNIFORM SECURED NOTE
This Note is a uniform instrument with limited
variations in some jurisdictions. In addition to the pro-
tections given to the Note Holder under this Note, a
Mortgage, Deed of Trust , or Security Deed (t he “Security
Instru ment”), dated the sa me date as this Note, protects
the Note Holder from possible losses which might result
if I do not keep the promises which I make in this Note.
That Secu rity Instru ment describes how and under what
conditions I may be required to make immediate pay-
ment in full of all amounts I owe under this Note. Some
of those conditions a re described as follows :
If all or any part of the Property or any Interest in
the Property is sold or transferred (or if Borrower is not
a natural person and a beneficial interest in Borrower is
sold or transferred) without Lender’s prior written con-
sent, Lender may require immediate payment in full of
all sums secured by this Security Instrument. However,
this option shall not be exercised by Lender if such exer-
cise is prohibited by Applicable Law.
If Lender exercises this option, Lender sha ll give Bor-
rower notice of acceleration. The notice shall provide a
period of not less than 30 days from the date the notice
is given in accordance with Section 15 within which Bor-
rower must pay all sums secured by this Security Instru-
ment. If Borrower fails to pay these sums prior to the
expirat ion of this per iod, Lender may i nvoke any remedies
permitted by this Security Instrument without further
notice or demand on Borrower.
WIT NESS THE HA ND(S) A ND SEAL(S) OF THE
UNDERSIGNED.
B.3 SAMPLE PROMISSORY NOTE
(ADJUSTABLE)
ADJUSTABLE RATE NOTE
(1 Year Treasury Index—Rate Caps)
THIS NOTE CONTAINS PROVISIONS ALLOW-
ING FOR CHANGES IN MY INTEREST RATE
AND MY MONTHLY PAYMENT. THIS NOTE
LIMITS THE AMOUNT MY INTEREST RATE
CAN CHANGE AT ANY ONE TIME AND THE
MAXIMUM R ATE I MU ST PAY.
1. BORROWER’S PROMISE TO PAY
In return for a loan that I have received, I promise to
pay U.S. $ __________________ (this amount is called
“Principal”), plus interest, to the order of the Lender.
The Lender is __________________. I will make all
payments under this Note in the form of cash, check or
money order.
I understand that the Lender may transfer this Note.
The Lender or anyone who takes this Note by transfer
and who is entitled to receive payments under this Note
is called the “Note Holder.”
2. INTEREST
Interest will be charged on unpaid principal until the
full amount of Principal has been paid. I will pay inter-
est at a yearly rate of ________________%. The interest
rate I will pay will change in accordance with Section 4 of
this Note. The interest rate required by this Section 2 and
Section 4 of th is Note is the rate I will pay bot h before and
after a ny default described in Section 7(B) of t his Note.
3. PAYMENTS
(A) Time and Place of Payments
I will pay principal and interest by ma king a payment
every month.
I will make my monthly payment on the first day of
each month beginning on ________, ________. I will
make these payment s every month until I have pa id all of
the principal and interest and any other charges described
below that I may owe under this Note. Each monthly
payment will be applied as of its scheduled due date
and will be applied to interest before Principal. If, on
____________, 20______, I still owe amounts under
this Note, I will pay those amounts in full on that date,
which is called the “Maturity Date.”
I will make my monthly payments at ______________
____________ or at a different place if required by the
Note Holder.
(B) Amount of My Initial Monthly Payments
Each of my initial monthly payments will be in the
amount of U.S. $______________________. This
amount may change.
(C) Monthly Payment Ch anges
Changes in my monthly payment will reflect changes
in the unpaid principal of my loan and in the interest
rate that I must pay. The Note Holder will determine my
new interest rate a nd the changed amount of my month ly
payment in accord ance with Section 4 of this Note.
4. INTEREST RATE AND MONTHLY PAYMENT
CHANGES
(A) Cha nge Dates
The interest rate I wi ll pay may change on the first day
of ____________, _________, and on that day every
12th month thereafter. Each date on which my interest
rate could cha nge is called a “Change Date.”
(B) The Index
Beg inning with t he first Change Date, my interest r ate
will be ba sed on an Index. The “I ndex” is the weekly aver-
age yield on United States Treasury securities adjusted
to a constant maturity of one year, as made available by
the Federal Reserve Board. The most recent Index figure
available as of the date 45 days before each Change Date
is called the “Current Index.”
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