Discount Mortgage Backed Security Clause Samples

Discount Mortgage Backed Security. The original stated principal amount of this Note shall be funded by the issuance of a discount mortgage backed security in the face amount of this Note (the "DMBS"). The original stated principal amount of this Note shall be equal to the sum of (i) the price (the "Price") of the initial DMBS and (ii) the discount (the "Discount") of the initial DMBS. The Price is equal to the proceeds of the sale of the DMBS and the Discount is an amount equal to the difference between (i) the face amount of the DMBS and (ii) the Price of the DMBS. Except as provided in Section 4(a), the proceeds made available by ▇▇▇▇▇▇ to Borrower shall equal the Price of the DMBS. Except for the initial DMBS which shall be issued for the period from January 3, 2005 to February 1, 2005, and subject to the last sentence of Section l2(b)(1), each DMBS shall be issued for a three month period. Except for the initial DMBS, the issuance date for each DMBS shall be the first day of a month and the maturity date for each DMBS shall be the first day of the month following such three month period. For example, the maturity date for a DMBS issued on December 1 is March 1. Provided, however, that Borrower may request the issuance of a DMBS with a maturity date shorter or longer than three months (but in no event shorter than one month or longer than nine months) in accordance with the terms and conditions of Section 12. The entire unpaid principal of the Note will be due and payable by the Borrower to the Lender on the maturity date of the outstanding DMBS unless the outstanding DMBS is renewed with a new DMBS or converted to a fixed rate to take effect on the maturity date of the outstanding DMBS.