Common use of Notice of Grievance Clause in Contracts

Notice of Grievance. Until Borrower or Lender has notified the other party (in accordance with Section 14) of an alleged breach and afforded the other party a reasonable period after the giving of such notice to take corrective action, neither Borrower nor Lender may commence, join, or be joined to any judicial action (either as an individual litigant or a member of a class) that (a) arises from the other party’s actions pursuant to this Security Instrument or the Note, or (b) alleges that the other party has breached any provision of this Security Instrument or the Note. If Applicable Law provides a time period that must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes of this Section 21. For example, Section 50(a)(6)(Q)(x), Article XVI of the Texas Constitution, generally provides that a Lender has 60 days to comply with its obligations under the Extension of Credit after being notified by a Borrower of a failure to comply with any such obligation. The notice of Default given to Borrower pursuant to Section 23(a) and the notice of acceleration given to Borrower pursuant to Section 17 will be deemed to satisfy the notice and opportunity to take corrective action provisions of this Section 21. It is Xxxxxx’s and Xxxxxxxx’s intention to conform strictly to provisions of the Texas Constitution applicable to Extensions of Credit as defined by Section 50(a)(6), Article XVI of the Texas Constitution. All agreements between Lender and Borrower are expressly limited so that in no event will any agreement between Lender and Borrower, or between either of them and any third party, be construed to limit Lender’s right or time period to correct any failure to comply with the provisions of Section 50(a)(6), Article XVI of the Texas Constitution to the fullest extent allowed by Applicable Law. As a precondition to taking any action premised on a failure of Lender to comply with its obligations under the Extension of Credit, Borrower will advise Lender of the noncompliance by a notice given as required by Section 14, and will give Lender at least 60 days after such notice has been received by Lender to comply. Except as otherwise required by Applicable Law, Lender will forfeit all principal and interest of the Extension of Credit only if: (a) Xxxxxx receives said notice, the failure to comply may be corrected by one of the methods set forth in Section 50(a)(6)(Q)(x), Article XVI of the Texas Constitution, and Lender fails to correct the failure to comply within 60 days after it receives said notice; (b) the Extension of Credit is made by a person other than a person described under Section 50(a)(6)(P), Article XVI of the Texas Constitution; or (c) each owner of the Property and each owner’s spouse has not consented to the lien established by this Security Instrument and each owner and each owner’s spouse who did not initially consent does not subsequently consent. Borrower will cooperate in reasonable efforts to correct any failure by Xxxxxx to comply with Section 50(a)(6), Article XVI of the Texas Constitution, including in reasonable efforts to obtain the subsequent consent of any owner or owner’s spouse who does not initially consent to the lien established by this Security Instrument. In the event that, for any reason whatsoever, any obligation of Borrower or of Lender pursuant to the terms or requirements hereof or of any other loan document will be construed to violate any of the provisions of the Texas Constitution applicable to Extensions of Credit as defined by Section 50(a)(6), Article XVI of the Texas Constitution, then any such obligation will be subject to the provisions of this Section 21, and the document may be reformed, by written notice or written acknowledgment from Lender, without the necessity of the execution of any amendment or new document by Xxxxxxxx, so that Borrower’s or Lender’s obligation will be modified to conform to the Texas Constitution, and in no event will Borrower or Lender be obligated to perform any act, or be bound by any requirement which would conflict therewith. It is the express intention of Lender and Borrower to structure this Extension of Credit to conform to Applicable Law and, specifically, to the provisions of the Texas Constitution applicable to Extensions of Credit as defined by Section 50(a)(6), Article XVI of the Texas Constitution. If, from any circumstance whatsoever, any promise, payment, obligation or provision of the Note, this Security Instrument or any other loan document involving this Extension of Credit transcends the limit of validity prescribed by Applicable Law or does not comply with Section 50(a)(6), Article XVI of the Texas Constitution, then any such promise, payment, obligation or provision is hereby reduced to the limit of such validity, eliminated as a requirement if necessary for compliance with such law, or reformed if necessary to comply with such law without the necessity of the execution of any amendment or the delivery of any other document by Borrower or Lender. Xxxxxx’s right-to-comply as provided in this Section 21 will survive the payoff of the Extension of Credit. The provision of this Section 21 will supersede any inconsistent provision of the Note or this Security Instrument.