CONSOLIDATION, EXTENSION AND MODIFICATION
AGREEMENT WORDS USED OFTEN IN THIS DOCUMENT
A) "Agreement." This document, which is dated FEBRUARY 18, 1998, and exhibits
and riders attached to this document will be called the "Agreement".
B) "Borrower." XXXXX X. XXXXXXXX and XXXXXX X. XXXXXXXX, will be called
"Borrower" and sometimes "I" or "me". Borrower's address is 000 XXXXX XXXXXX,
XXXXXXXXX, XXX XXXX 00000.
C) "Lender." FIRST NATIONAL BANK OF ROCHESTER will be called "Lender" and
sometimes "Note Holder". Lender is a corporation or association which exists
under the laws of United States of America. Lender's address is 00 Xxxxx Xxxxxx,
Xxxxxxxxx, Xxx Xxxx 00000.
D) "Mortgages." The mortgages, deeds of trust or other security instruments
identified below and any additional security instruments and related agreements
identified in Exhibit A to this agreement will be called the "Mortgages".
1) The Mortgage given by XXXXX X. XXXXXXXX and XXXXXX X. XXXXXXXX, and dated MAY
30, 1997 in favor of FIRST NATIONAL BANK OF ROCHESTER securing the original
principal amount of U.S. $166,250.00. This Mortgage is on a Xxxxxx Mae/Xxxxxxx
Mac Security Instrument and [was recorded on MAY 30, 1997, in the Office of the
Clerk of the County of MONROE, State of New York, at LIBER 13335 OF MORTGAGES,
PAGE 315. [will be recorded together with this Agreement.] (Strike and complete
as appropriate.] At this date, the unpaid principal balance secured by this
Mortgage is U.S. $165,109.80. (Strike if not applicable.]
2) The mortgage given by XXXXX X. XXXXXXXX and XXXXXX X. XXXXXXXX and dated
OCTOBER 27, 1997 in favor of NORMANDY CORPORATION securing the original
principal amount of U.S. $100,000.00. This Mortgage was recorded on OCTOBER 31,
1997, in the office of the Clerk of the County of MONROE, State of NEW YORK, at
Liber 13512 of Mortgages, page 294. At this date, the unpaid principal balance
secured by this Mortgage is U.S. $59,890.20
(E) "Note Holder." Lender or anyone who succeeds to Lender's rights under this
Agreement and who is entitled to receive the payments I agree to make under this
Agreement may be called the "Note Holder".
(F) "Notes." The Notes identified below and any additional Notes and related
obligations identified in Exhibit A to this Agreement will be called the
"Notes": (1) The Note secured by the Mortgage identified in Section (D) (1)
above and dated MAY 30, 1997. (2) The Note secured by the Mortgage identified in
Section (D) (2) above and dated OCTOBER 27, 1997. (3) The Note secured by the
Mortgage identified in Section (D) (3) above and dated _________.
(G) "Property." The property which is described in the Mortgage (s) and in
Exhibit B to this Agreement, will be called the "Property". [Strike italics if
not applicable.] The property is located at:
000 XXXXX XXXXXX, XXXXXXXXX, XXX XXXX 00000
(Street] [city]
MONROE NEW YORK
[County] [State and zip code]
Xxxxxx Xxx/Xxxxxxx Mac CONSOLIDATION, EXTENSION AND MODIFICATION AGREEMENT -
Single Family Form 3172 7/86
I. BORROWER'S AGREEMENT ABOUT OBLIGATIONS UNDER THE NOTES AND MORTGAGES
I agree to take over all of the obligations under the Notes and Mortgages as
consolidated and modified by this Agreement as Borrower. This means that I will
keep all of the promises and agreements made in the Notes and Mortgages even if
some other person made those promises and agreements before me. The total unpaid
principal balance of the Notes is U.S. $225,000.00. Of this amount, U.S. $0.00
was advanced to me (or for my account) immediately prior to this consolidation.
II. AGREEMENT TO COMBINE NOTES AND MORTGAGES
By signing this Agreement, Lender and I are combining into one set of rights and
obligations all of the promises and agreements stated in the Notes and Mortgages
including any earlier agreements which combined or extended rights and
obligations under any of the Notes and Mortgages. This means that all of
Lender's rights in the Property are combined so that under the law Lender has
one mortgage and I have one loan obligation which I will pay as provided in this
Agreement.
III. THE CONSOLIDATED NOTE AND THE CONSOLIDATED MORTGAGE
This combining of notes and mortgages is known as "consolidation". The Notes
together will be called the "Consolidated Note". The Mortgages together will be
called the "Consolidated Mortgage". The Consolidated Mortgage secures the
Consolidated Note and is a single lien upon the Property. I have no right of
set-off or counterclaim or defense to the obligations of the Consolidated Note
or the Consolidated Mortgage.
IV. AGREEMENT TO CHANGE TERMS OF THE CONSOLIDATED NOTE
Lender and I agree to change the terms of the Consolidated Note. The new terms
are:
1. Borrower's Promise to Pay Principal and Interest
I promise to pay the principal that has not yet been paid under the Consolidated
Note, plus interest, to the order of Lender. That principal amount is U.S.
$225,000.00. Interest will be charged on unpaid principal as provided in this
Agreement beginning on the date of this Agreement until the full amount of
principal has been paid.
2. Payments
(A) Time and Place of Payments
I will pay principal and interest by making payments each month.
I will make my monthly payments on the first day of each month beginning on
APRIL 1, 1998. I will make these payments every month until I have paid all of
the principal and interest and any other charges that I may owe under this
Agreement and the Consolidated Note. My monthly payments will be applied to
interest before principal. If on MARCH 1, 2028, I still owe amounts under this
Agreement or the Consolidated Note, I will pay those amounts in full on that
date, which is called the "maturity date". I will make my monthly payments at 00
Xxxxx Xxxxxx, Xxxxxxxxx, Xxx Xxxx 00000 or at place if required by the Note
Holder. Interest Rate I will pay interest at a yearly rate of 7.125%. The
interest rate required by this Section 2(B) is the rate I will pay both before
and after any default described in Section 3 (B) of this Consolidated Note. An
Adjustable Rate Rider is recorded with this Agreement as Exhibit C and is a term
of this Agreement. The interest rate I will pay will change in accordance with
the rider. [Strike italics if not applicable.] (C) Monthly payments Each of my
monthly payments will be in the amount of U.S. $1,515,87. An Adjustable Rate or
Graduated Payment of ________________ Rider is recorded with this Agreement as
Exhibit C and is a term of this Agreement. My monthly payment amount may change
in accordance with that Rider. (Strike italics is not applicable.]
3. Borrower's Failure to Pay as Required
(A) Late Charge for Overdue Payments If the Note Holder has not received the
full amount of any monthly payment by the end of 15 calendar days after the date
it is due, I will pay a late charge to the Note Holder. The amount of the charge
will be 2.0% of my overdue payment of principal and interest. I will pay this
late charge promptly but only once on each late payment.
(B) Default
If I do not pay the full amount of each monthly payment on the date it is due, I
will be in default. I will also be in default if I do not keep my promises and
agreements under this Agreement and the Consolidated Mortgage.
(C) Notice of Default If I am in default, the Note Holder may send me a written
notice telling me that if I do not pay the overdue amount by a certain date, the
Note Holder may require me to pay immediately the full amount of principal which
has not been paid and all the interest that I owe on that amount. That date must
be at least 30 days after the date on which the notice is delivered or mailed to
me.
(D) No Waiver by Note Holder Even if, at a time when I am in default, the Note
Holder does not require me to pay immediately in full as described above, the
Note Holder will still have the right to do so if I am in default at a later
time.
(E) Payment of Note Holder's Costs and Expenses
If the Note Holder has required me to pay immediately in full as described
above, the Note Holder will have the right to be paid back by me for all of its
costs and expenses in enforcing this Note to the extent not prohibited by
applicable law. Those expenses include, for example, reasonable attorneys' fees.
4. Borrower's Right to Prepay
(A) Borrower's Right to Make Prepayments
I have the right to make payments of principal at any time before they are due.
A payment of principal only is known as a "prepayment". When I make a
prepayment, I will tell the Note Holder in writing that I am doing so. I will
make full prepayment or partial prepayments without paying any prepayment
charge. The Note Holder will use all of my prepayments to reduce the amount of
principal that I owe under this Note. If I make a partial prepayment, there will
be no changes in the due dates or in the amount of my monthly payment unless the
Note Holder agrees in writing to those changes.
(B) Cancellation of Other Prepayment Terms
Any terms contained in the Consolidated Note about my right to make prepayments
which do not agree with this Section 4 are canceled by this Agreement. My right
to make prepayments under the Consolidated Note is governed only by the terms
contained in this Section 4.
5. Loan Charges
If a law, which applies to this loan and which set maximum loan charges, is
finally interpreted so that the interest or other loan charges collected or to
be collected in connection with this loan exceed the permitted limits, then: (i)
any such loan charges shall be reduced by the amount necessary to reduce the
charge to the permitted limit; and (ii) any sums already collected from me which
exceeded permitted limits will be refunded to me. The Lender may choose to make
this refund by reducing the principal I owe under this Consolidated Note or by
making a direct payment to me. If a refund reduces principal, the reduction will
be treated as a partial prepayment.
6. Giving of Notices
Any notice that must be give to me under this Consolidated Note will be given as
provided in the Consolidated Mortgage.
7. Waivers
I and any other person who has obligations under this Consolidated Note waive
the rights of presentment and notice of dishonor. "Presentment" means the right
to require the Lender to demand payment of amounts due. "Notice of dishonor"
means the right to require the Lender to give notice to other persons that
amounts due have not been paid.
8. Unchanged Terms of Consolidated Note in Full Effect
All of the terms of the Consolidated Note that are not changed in this Agreement
remain in full effect as if there were stated in this Agreement.
V. AGREEMENT ON TERMS OF THE CONSOLIDATED MORTGAGE
Lender and I agree to change the terms of the Consolidated Mortgage. The new
terms of this Consolidated Mortgage are the security instrument terms that are
set out in Exhibit D to this Agreement. However, the terms of the Consolidated
mortgage prior to this change that are not inconsistent with the security
instrument terms set out in Exhibit D shall also continue in effect.
VI. BORROWER'S INTEREST IN THE PROPERTY
I promise that I am the lawful owner occupying the Property. I promise that I am
a lawful tenant occupying the Property. [Strike inapplicable sentence.)
VII. WRITTEN TERMINATION CHANGE OF THIS AGREEMENT
This Agreement may not be terminated, changed, or amended except by a written
agreement signed by the party whose rights or obligations are being changes by
that agreement.
VIII. OBLIGATIONS OF BORROWERS AND OF PERSONS TAKING OVER BORROWER'S OR LENDER'S
RIGHTS OR OBLIGATIONS
If more than one person signs this Agreement as Borrower, each of us is fully
and personally obligated to keep all of Borrower's promises and obligations
contained in this Agreement. The Note Holder may enforce its rights under this
Agreement against each of us individually or against all of us together. Lender
and I agree that any person who takes over my rights or obligations under this
Agreement will have all of my rights and will be obligated to keep all of my
promises and agreements made in this Agreement. Similarly, any person who takes
over Lender's rights or obligations under this Agreement will have all of
Lender's rights and will be obligated to keep all of Lender's agreements made in
this Agreement. By signing this Agreement, Lender and I agree to all of the
above.
First National Bank of Rochester
(Lender ) s\ XXXXX X. XXXXXXXX (Borrower)
s\ XXXXXX X. XXXXXXXX (Borrower)
------------- [Space Below This Line for Acknowledgments -----------------
STATE OF NEW YORK, COUNTY OF MONROE, ss.:
On FEBRUARY 18, 1998, before me personally came MELODY XXX XXXXXX, to me known,
who by me duly sworn, did depose and that the deponent is the VICE PRESIDENT of
First National Bank of Rochester, the corporation described in the foregoing
Agreement, and (s)he signed his(her) name by order of the Board of the
corporation
s\ Xxxxxxxx X. Xxxxxxx
---------------------------
XXXXXXXX X. XXXXXXX
Notary Public, State of New York
Qualified in Monroe County
My Commission Expires Feb.13 0000
XXXXX XX XXX XXXX, XXXXXX XX XXXXXX, ss.:
On FEBRUARY 18, 1998, before me personally came XXXXX X. XXXXXXXX and XXXXXX X.
XXXXXXXX, to me known and known to me to be the individuals described in, and
who executed the foregoing Agreement, and duly acknowledged to me that they
executed the same.
s\ W. Xxxxxxx Xxxxxxx
-------------------------
W. XXXXXXX XXXXXXX
Notary Public, State of New York
Oualified in Monroe County
Commission Expires Feb. 28, 1998
SCHEDULE A
Premises: 000 Xxxxx Xxxxxx Boat Xxxx 00-00
Xxxxxx Xxxx/Xxxx Xxxxxxxx Xxx Xxxxx Lot
Monroe Rochester Rochester 047.21 1 31
ALL THAT TRACT OR PARCEL OF LAND situate in the City of Rochester, County of
Monroe and State of New York, known and described as follows: Commencing at a
point on the north line of Beach Avenue as now laid out and forty (40) feet east
from the intersection of said north line with the east line of what was formerly
Oak Street; thence westerly along the north line of Beach Avenue sixty-five (65)
feet to the center of what was formerly Oak Street; thence northerly along said
center line extended northerly to the north line of the "Terrace" as shown on a
map of "Guilford Bluff" filed in Monroe County Clerk's Office in Liber 7 of Maps
at page 12; thence easterly along the north line of said "Terrace" sixty-five
(65) feet more or less; thence southerly to the place of beginning.
Also boat lots numbers 82, 83, 84, 86, 87, 88 and 89 as shown on said map of
"Guilford Bluff
ALL THAT TRACT OR PARCEL OF LAND, situate in the City of Rochester, County of
Monroe, State of New York, known and distinguished as Bath or Boat House Lot
Number Eighty-Five (85) as shown on a map of Guilford Bluff, so called, made by
X. X. Xxxxx, Surveyor, and filed in Monroe County Clerk's Office in Liber 7 of
Maps, at page 12. - 7
Said Bath or Boat House Lot Eighty-Five (85) located on the north side of the
Terrace, on said Guilford Bluff, reference had to said Map, and each lot extends
to a point eight (8) feet from the north line of the Protection Dock, and is ten
(10) feet wide front and rear and about twenty (20) feet
Together with a right of way in common with other parties over a strip of land
twenty feet in width taken from the west end of Lots 58 and 59 of the Guilford
Bluff Tract which was conveyed by Xxxxxxx X. Xxxxxxxxx and wife to the Village
of Charlotte by Deed dated August 29, 1901 and recorded June 3, 1902 in Monroe
County Clerk's Office in Liber 651 of Deeds at page 429.
Together with all the right, title and interest of said Xxx X. Xxxxx, and
Xxxxxxxxx X. Xxxxx, his wife, in the strip of land described in an instrument
recorded in said Clerk's Office in Liber 599 of Deeds at page 280, lying north
of Beach Avenue and south of the Bath or Boat House Lots in said tract.
For Conveyancing Only
Together with all right, title and interest of, in and to any streets and roads
abutting the above described premises.
MORTGAGE
WORDS USED OFTEN IN THIS DOCUMENT
(A) "Security Instrument". This document, which is dated May 30, 1997, will be
called the "Security Instrument".
(B) "Borrower". XXXXX X. XXXXXXXX and XXXXXX X. XXXXXXXX
sometimes will be called "Borrower" and sometimes simply "I" or "me".
(C) "Lender". First National Bank of Rochester
will be called "Lender". Lender is a corporation or association which exists
under the laws of the United States of America.
Lender's address is 00 Xxxxx Xxxxxx, Xxxxxxxxx, Xxx Xxxx 00000
(D) "Note". The note signed by Borrower and dated May 30, 1997, will be called
the "Note." The Note shows that I owe Lender ONE HUNDRED SIXTY-SIX THOUSAND TWO
HUNDRED FIFTY and 00/100 Dollars (U.S. $166,250.00) plus interest. I have
promised to pay this debt in monthly payments and to pay the debt in full by
June 1, 2027.
(E) "Property". The property that is described below in the section titled
"Description of the Property", will be called the "Property".
(F) "Sums Secured". The amounts described below in the section titled
"Borrower's Transfer to Lender of Rights in the Property" sometimes will be
called the "Sums Secured".
BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY I mortgage, grant and
convey the Property to Lender subject to the terms of this Security Instrument.
This means that, by signing this Security Instrument, I am giving Lender those
rights that are stated in this Security Instrument and also those rights that
the law gives to Lenders who hold mortgages on real property. I am giving Lender
these rights to protect Lender from possible losses that might result if I fail
to: (A) Pay all the amounts that I owe Lender as stated in this Note; (B) Pay,
with interest, any amounts that Lender spends under Paragraphs 2 and 7 of this
Security Instrument to protect the value of the Property and Lender's rights in
the Property; and (C) Keep all of my other promises and agreements under this
Security Instrument;
NEW YORK--Single Family-- Xxxxxx Xxx/Xxxxxxx Mac UNIFORM INSTRUMENT form 3033
10/91 I Item 1930 (9111) (Page 1 of 12 pages)
Initials:_________
DESCRIPTION OF PROPERTY
I give Lender rights in the Property described in (A) through (G) below:
(A) The Property which is located at 000 Xxxxx Xxxxxx
[Xxxxxx]
Xxxxxxxxx, Xxx Xxxx 00000 This property is in
[City] [Zip Code]
MONROE County. It has the following legal description:
SEE SCHEDULE "A" ATTACHED HERETO AND MADE A PART HEREOF.
Mortgagors covenant that the within described premises is a dwelling or
residence for not more than two families.
(B) All buildings and other improvements that are located on the Property
described in subparagraph (A) of this section;
(C) All rights in other property that I have as owner of the Property described
in subparagraph (A) of this section. These rights are known as "easements and
appurtenances attached to the Property";
(D) All rights that I have in the land which lies in the streets or roads in
front of, or next to, the Property described in subparagraph (A) of this
section;
(E) All fixtures that are now or in the future will be on the Property described
in subparagraph (A) and (B) of this section;
(F) All of the rights and property described in subparagraphs (B) through (E) of
this section that I acquire in the future; and (G) All replacements of or
additions to the Property described in subparagraphs (B) through (F) of this
section.
BORROWERS' RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S OBLIGATION TO DEFEND
OWNERSHIP OF THE PROPERTY
I promise that: (A) I lawfully own the Property; (B) I have the right to
mortgage, grant and convey the Property to Lender; and (C) there are not
outstanding claims or charges against the Property, except for those which are
of public record.
I give a general warranty of title to Lender. This means that I will be fully
responsible for any losses which Lender suffers because someone other than
myself has some of the rights in the Property which I promise that I have. I
promise that I will defend my ownership of the Property against any claims of
such rights.
PLAIN LANGUAGE SECURITY INSTRUMENT
This Security Instrument contains promises and agreements that are used in real
property security instruments all over the country. It also contains other
promises and agreements that vary, to a limited extent, in different parts of
the country. My promises and agreements are stated in "plain language".
initials: ______ (Page 2 of 11 pages) Form 3033 10/91
COVENANTS
I promise and I agree with Lender as follows:
1. BORROWER'S PROMISE TO PAY
I will pay to Lender on time principal and interest due under the Note and any
prepayment and late charges due under the Note.
2. MONTHLY PAYMENTS FOR TAXES AND INSURANCE
(A) Borrower's Obligation
I will pay to Lender all amounts necessary to pay for taxes, assessments, water
frontage charges and other similar charges, sewer rents, leasehold payments or
ground rents (if any), hazard or property insurance covering the Property, and
flood insurance (if any). If Lender required mortgage insurance as a condition
of making the loan that I promise to pay under the Note, (i) I also will pay to
Lender all amounts necessary to pay for mortgage insurance, and (ii) if, under
Paragraph 8 below, instead of paying for mortgage insurance I am required to pay
Lender an amount equal to the cost of mortgage insurance, I will pay this amount
to Lender. I will pay all of these amounts to Lender unless Lender tells me, in
writing, that I do not have to do so, or unless the law required otherwise. I
will make these payments on the same day that my monthly payments of principal
and interest are due under the Note.
My payments under this Paragraph 2 will be for the items listed in (i) through
(iv) below, which are called "Escrow Items":
(i) The estimated yearly taxes, assessments, water frontage charges and other
similar charges, and sewer rents on the Property which under the law may be
superior to this Security Instrument as a lien on the Property. Any claim,
demand or charge that is made against Property because an obligation has not
been fulfilled is known as a "lien".
(ii) The estimated yearly leasehold payments or ground rents on the Property (if
any);
(iii) The estimated yearly premium for hazard or property insurance covering the
Property:
(iv) The estimated yearly premium for flood insurance covering the Property (if
any);
(v) The estimated yearly premium for mortgage insurance (if any); and
(vi) The estimated yearly amount I may be required to pay Lender under Paragraph
8 below instead of the payment of the estimated yearly premium for mortgage
insurance (if any).
Lender will estimate from time to time the amount I will have to pay for Escrow
Items by using existing assessments and bills and reasonable estimates of the
amount I will have to pay for Escrow Items in the future, unless the law
requires Lender to use another method for determining the amount I am to pay.
The amounts that I pay to Lender for Escrow Items under this Paragraph 2 will be
called the "Funds". The Funds are pledged as additional security for all Sums
Secured.
The law puts limits on the total amount of Funds Lender can at any time collect
and hold. This total amount cannot be more than the maximum amount a lender for
a "federally related mortgage loan" could require me to place in an "escrow
account" under the federal law called the "Real Estate Settlement Procedures Act
of 1974", as that law may be amended from time to time. If there is another law
that imposes a lower limit on the total amount of Funds Lender can collect and
hold, Lender will be limited to the lower amount.
(B) Lender's Obligation
Lender will keep the Funds in a savings or banking institution which has its
deposits insured by a federal agency, instrumentality, or entity, or in any
Federal Home Loan Bank. If Lender is such a savings or banking institution,
Lender may hold the Funds. Except as described in this Paragraph 2, Lender will
use the Funds to pay the Escrow Items. Lender will give to me, without charge,
an annual accounting of the Funds. That accounting must show all additions to
and deductions from the Funds and the reason for each deduction.
Lender may not charge me for holding or keeping the Funds, for using the Funds
to pay Escrow Items, for making a yearly analysis of my payment of Funds or for
receiving, verifying and totaling assessments and making a yearly analysis of my
payments of Funds or fore receg assessments and bills. However, Lender may
charge me for the services if Lender pays me interest on the Funds and if the
law permits Lender to make such a charge. Lender also may require me to pay a
one-time charge for an independent real estate tax reporting service used by
Lender in connection with my loan, unless the law does not permit Lender to make
such a charge. Lender will not be required to pay me any interest or earnings on
the Funds unless either (i) Lender and I agree in writing, at the time I sign
this Security Instrument, that Lender will pay interest on the Funds; or (ii)
the law requires Lender to pay interest on the Funds.
(C) Adjustments to the Funds
Under the law, there is a limit on the amount of Funds Lender may hold. If the
amount of Funds held by Lender exceeds this limit, then the law requires Lender
to account to me in a special manner for the excess amount of Funds. There will
be an excess amount if, at any time, the amount of Funds which Lender is holding
or keeping is greater than the amount of Funds Lender is allowed to hold under
the law.
If, at any time, Lender has not received enough Funds to make the payments of
Escrow Items when the payments are due, Lender may tell me in writing that an
additional amount is necessary. I will pay to Lender whatever additional amount
is necessary to pay the Escrow Items in full. Lender will determine the number
of monthly payments I have in which to pay that additional amount, but the
number of payments will not be more than twelve.
When I have paid all of the Sums Secured, Lender will promptly refund to me any
Funds that are then being held by Lender. If under Paragraph 21 below, Lender
either acquires or sells the Property, then before the acquisition or sale,
Lender will use any Funds which Lender is holding at the time of the acquisition
or sale to reduce the Sums Secured.
3. APPLICATION OF BORROWER'S PAYMENTS
Unless the law requires otherwise, Lender will apply each of my payments under
the Note and under Paragraphs 1 and 2 above in the following order and for the
following purposes: First, to pay any prepayment charges due under the Note;
Next, to pay amounts due to Lender under Paragraph 2 above; Next, to pay
interest due; Next, to pay principal d late charges due under the Note.
4. BORROWER'S OBLIGATION TO PAY CHARGES, ASSESSMENTS AND CLAIMS
I will pay taxes, assessments, water frontage charges and other similar charges,
sewer rents, and any other charges and fines that may be imposed on the Property
and that may be superior to this Security Instrument. I will also make payments
due under my lease if I am a tenant on the Property and I will pay ground rents
(if any) due on the Property. I will do this either by making the payments to
Lender that are described in Paragraph 2 above or, if I am not required to make
payments under Paragraph 2, by making the payments on time to the person owned
them. (In this Security Instrument, the word "person" means any person,
organization, governmental authority or other party). If I make direct payments,
then promptly after making any of those payments I will give Lender a receipt
which shows that I have done so. If I make payment to Lender under Paragraph 2,
I will give Lender all notices or bills that I receive for the amounts due under
this Paragraph 4.
I will promptly pay or satisfy all liens against the Property that may be
superior to this Security Instrument. However, this Security Instrument does not
require me to satisfy a superior lien if: (A) I agree, in writing, to pay the
obligation which gave rise to the superior lien and Lender approves the way in
which I agree to pay that obligation; or (B) in good faith, I argue or defend
against the superior lien in a lawsuit so that, during the lawsuit , the
superior lien may not be enforced; or (C) I secure from the holder of that other
lien an agreement, approved in writing by Lender, that the lien of this Security
Instrument is superior to the lien held by that person. If Lender determines
that any part of the Property is subject to a superior lien, Lender may give
Borrower a notice identifying the superior lien. Borrower shall pay or satisfy
the superior lien or take one or more of the actions set forth above within 10
days of the
5. BORROWER'S OBLIGATION TO MAINTAIN HAZARD INSURANCE OR PROPERTY INSURANCE
I will obtain hazard or property insurance to cover all buildings and other
improvements that now are or in the future will be located on the Property. The
insurance must cover loss or damage caused by fire, hazards normally covered by
"extended coverage" hazard insurance policies and other hazards for which Lender
requires coverage, including floods and flooding. The insurance must be in the
amounts and for the periods of time required by Lender. I may choose the
insurance company, but my choice is subject to Lender's approval. Lender may not
refuse to approve my choice unless the refusal is reasonable. If I do not
maintain the insurance coverage described above, Lender may obtain insurance
coverage to protect Lender's rights in the property in accordance with paragraph
7 below.
All of the insurance policies and renewals of those policies must include what
is known as a "standard mortgage clause" to protect Lender. The form of all
policies and renewals must be acceptable to Lender. Lender will have the right
to hold the policies and renewals. if Lender requires, I will promptly give
Lender all receipts of paid premiums and renewals notices that I receive.
If there is a loss or damage to the Property, I will promptly notify the
insurance company and Lender. If I do not promptly prove to the insurance
company that the loss or damage occurred, then Lender may do so. The amount paid
by the insurance company is called "proceeds". The proceeds will be used to
repair or to restore the damages Property unless: (A) if is not economically
feasible to make the repairs or to restoration; or (B) the use of the proceeds
for that purpose would lessen the protection given to Lender by this Security
Instrument; or (C) Lender and I have agreed in writing not to use the proceeds
for that purpose. If the repair or restoration is not economically feasible or
if it would lessen Lender's protection under this Security Instrument, then the
proceeds will be used to reduce the amount that I owe to Lender under the Note
and under this Security Instrument. If any of the proceeds remain after the
amount that I owe to Lender has been paid in full, the remaining proceeds will
be paid to me.
If I abandon the Property, or if I do not answer, within 10 days, a notice from
Lender stating that the insurance company has offered to settle a claim, Lender
may collect the proceeds. Lender may use the proceeds to repair or restore the
Property or to pay the Sums Secured. The 3-day period will begin when the notice
is given.
If any proceeds are used to reduce the amount of principal which I owe to Lender
under the Note, that use will not delay the due date or change the amount of any
of my monthly payments under the Note and under Paragraphs 1 and 2 above.
However, Lender and I may agree in writing to those delays or changes.
If Lender acquires the Property under Paragraph 21 below, all of my rights in
the insurance policies will belong to Lender. Also, all of my rights in any
proceeds which are paid because of damage occurred before the property is
acquired by Lender or sold will belong to Lender. However, Lender's rights in
those proceeds will not be greater than the Sums Secured immediately before the
Property is acquired by Lender or sold.
6. BORROWER'S OBLIGATION TO OCCUPY THE PROPERTY, TO MAINTAIN AND PROTECT THE
PROPERTY, AND TO FULFILL ANY LEASE OBLIGATIONS; BORROWER'S LOAN APPLICATION
(A) Borrower's Obligations to Occupy the Property
I will occupy the Property and use the Property as my principal residence within
sixty days after I sign this Security Instrument. I will continue to occupy the
Property and to use the Property as my principal residence for at least one
year. The one-year period will begin when I first occupy the Property. However,
I will not have to occupy the Property and use the Property as my principal
residence within the time frames set forth above if Lender agrees in writing
that I do not have to do so. Lender may not refuse to agree unless the refusal
is reasonable. I also will not have to occupy the Property and use the Property
as my principal residence within the time set forth above if extenuating
circumstances exist which are beyond by control.
(B) Borrower's Obligations to Maintain and Protect the Property]
I will keep the Property in good repair. I will not destroy, damage or harm the
Property, and
I will not allow the Property to deteriorate.
I will be "in default" under this Security Instrument if I fail to keep any
promise or ruling agreement made in this Security Instrument. I also will be in
default under this Security Instrument if any civil or criminal action or
proceeding for "forfeiture" (that is, a legal action or proceeding to require
the Property, or any part of the Property, to be given up) is begun and Lender
determines, in good faith, that this action or proceeding could result in a
court ruling (i) that would require forfeiture of the Property or (ii) that
would materially impair the lien of the Security Instrument or Lender's rights
in the Property. I may correct the default by obtaining a court ruling that
dismisses the legal action or proceeding, if Lender determines, in good faith,
that this court ruling prevents forfeiture of my interests in the Property and
also prevents any material impairment of (i) the lien created by this Security
Instrument or (ii) Lender's rights in the Property. If I correct the default, I
will have the right to have enforcement of this Security Instrument
discontinued, as provided in Paragraph 18 below, even if Lender has required
immediate payment in full.
Borrower's Obligation to Fulfill Any Lease Obligations
If I do not own but am a tenant on the Property, I will fulfill all my
obligations under my lease. I also agree that, if I acquire the fee title to the
Property, my lease interest and the fee title will not merge unless Lender
agrees to the merger in writing.
(D) Borrower's Loan Application
If, during the application process for the loan that I promise to pay under the
Note, I made false or inaccurate statements to Lender about information
important to Lender in determining my eligibility for the loan, Lender will
treat my actions as a default under this Security Instrument. False or
inaccurate statements about information important to the Lender would include a
misrepresentation of my intentions to occupy the Property as a principal
residence. This is just one example of a false or inaccurate statement of
important information. Also, if during the loan application process I failed to
provide Lender with information important to Lender in determining my
eligibility for the loan, Lender will treat this as a default under this
Security Instrument.
7. LENDER'S RIGHT TO PROTECT ITS RIGHTS IN THE PROPERTY
If: (A) I do not keep my promises and agreements made in this Security
Instrument, or (B) someone, including me, brings an legal proceeding that m may
significantly affect Lender's rights in the property (such as a legal proceeding
in bankruptcy, in probate, for condensation or forfeiture, or to enforce laws or
regulations), Lender may do and pay for whatever is necessary to protect the
value of the Property and Lender's rights in the Property. Lender's actions may
include appearing in court, paying reasonable attorneys' fees and entering on
the Property to make repairs. Although Lender may take action under this
Paragraph 7, Lender does not have to do so.
I will pay to Lender any amounts, with interest, which Lender spends under this
Paragraph 7. I will pay those amounts to Lender when Lender sends me a notice
requesting that I do so. I will also pay interest on those amounts at the Note
rate. Interest on each amount will begin on the date that the amount is spent by
Lender. However, Lender and I may agree in writing to terms of payment that are
different from those in this paragraph. This Security Instrument will protect
Lender in case I do not keep this promise to pay those amounts with interest.
8. MORTGAGE INSURANCE
If Lender required mortgage insurance as a condition of making the loan I
promise to pay under the Note, I will pay the premiums for the mortgage
insurance. If, for any reason, the mortgage insurance coverage lapses or ceases
to be in effect, I will pay the premiums for substantially equivalent mortgage
insurance coverage. However, the cost of this mortgage insurance coverage must
be substantially equivalent to the cost to me of the previous mortgage insurance
coverage, and the alternate mortgage insurer must be approved by Lender.
If substantially equivalent mortgage coverage is not available, Lender will
establish a "loss reserve" as a substitute for the mortgage insurance coverage.
I will pay to Lender each month an amount equal to one-twelfth of the yearly
mortgage insurance premium (as of the time the coverage lapsed or ceased to be
in effect). Lender will retain these payments, and will use these payments to
pay for losses that the mortgage insurance would have covered. Lender may choose
to no longer require loss reserve payments, if mortgage insurance coverage again
becomes available and is obtained. The mortgage insurance coverage must be in
the amount and for the period of time required by Lender. The Lender must
approve the insurance company providing coverage.
I will pay the mortgage insurance premiums, or the loss reserve payments, until
the requirement for mortgage insurance ends according to my written agreement
with Lender or according to law. Lender may require me to pay the premiums, or
the loss reserve payments, in the manner described in Paragraph 2 above.
9. LENDER'S RIGHT TO INSPECT THE PROPERTY
Lender, and others authorized by Lender, may enter on and inspect the Property.
They must do so in a reasonable manner and at reasonable times. Before or at the
time an inspection is made, Lender must give me notice stating a reasonable
purpose for the inspection.
Initials: ________ (Page 6 of 11 pages)
10. AGREEMENTS ABOUT CONDEMNATION OF THE PROPERTY
A taking of property by any governmental authority by eminent domain is known as
"condemnation". I give to Lender my right: (A) to proceeds of all awards or
claims for damages resulting from condemnation or other governmental taking of
the Property; and (B) to proceeds from a sale of the Property that is made to
avoid condemnation. All of those proceeds will be paid to Lender.
If all of the Property is taken, the proceeds will be used to reduce the Sums
Secured. If any of the proceeds remain after the amount that I owe to Lender has
been paid in full, the remaining proceeds will be paid to me.
Unless Lender and I agree otherwise in writing, if only a part of the Property
is taken, and the fair market value of the Property immediately before the
taking either is equal to, or greater than, the amount of the Sums Secured
immediately before the taking, the amount that I owe the Lender will be reduced
only by the amount of proceeds multiplied by a fraction; That fraction is as
follows: (A) the total amount of the Sums Secured immediately before the taking,
divided by (B) the fair market value of the Property immediately before the
taking. The remainder of the proceeds will be paid to me.
Unless Lender and I agree otherwise in writing or unless the law requires
otherwise, if only a part of the Property is taken, and the fair market value of
the Property immediately before the taking is less than the amount of the Sums
Secured immediately before the taking, the proceeds will be used to reduce the
Sums Secured.
If I abandon the Property, or is I do not answer, within 30 days, a notice from
Lender stating that a governmental authority has offered to make a payment or to
settle a claim for damages, Lender has the authority to collect the proceeds.
Lender may then use the proceeds to repair or restore the Property or to reduce
the Sums Secured. The 30-day period will begin when the notice is given.
If any proceeds are used to reduce the amount of principal which I owe to Lender
under the Note, that use will not delay the due date or change the amount of any
of my monthly payments under the Note and under Paragraphs 1 and 2 above.
However, Lender and I may agree in writing to those delays or changes.
11. CONTINUATION OF BORROWER'S OBLIGATION AND OF LENDER'S RIGHTS
(A) Borrower's Obligation
Lender may allow a person who takes over my rights and obligations to delay or
to change the amount of the monthly payments of principal and interest due under
the Note or under this Security Instrument. Even if Lender does this, however,
that person and I will both still be fully obligated under the Note and under
this Security Instrument.
Lender may allow those delays or changes for a person who takes over my rights
and obligations, even if Lender is required not to do so. Lender will not be
required to bring a lawsuit against such a person for not fulfilling obligations
under the Note or under this Security Instrument, even if Lender is requested to
do so.
(B) Lender's Rights
Even if Lender does not exercise or enforce any right of Lender under this
Security Instrument or under the law, Lender will still have all those rights
and may exercise and enforce them in the future. Even if Lender obtains
insurance, pays taxes, or pays other claims, charges or liens against the
Property, Lender will have the right under Paragraph 21 below to demand that I
make immediate payment in full of the amount that I owe to Lender under the Note
and under this Security Instrument.
12. OBLIGATIONS OF BORROWER AND OF PERSONS TAKING OVER BORROWER'S RIGHTS OR
OBLIGATIONS
Any person who takes over my rights or obligations under this Security
Instrument will have all of my rights and will be obligated to keep all of my
promises and agreements made in this Security Instrument. Similarly, any person
who takes over Lender's rights or obligations under this Security Instrument
will have all of Lender's rights and will be obligated to keep all of Lender's
agreements made in this Security Instrument.
If more than one person signs this Security Instrument as Borrower, each of us
is fully obligated to keep all of Borrower's promises and obligations contained
in this Security Instrument. Lender may enforce Lender's rights under this
Security Instrument against each of us individually or against all of us
together. This means that any one of us may be required to pay all of the Sums
Secured. However, if one of us does not sign the Note: (A) that person is
signing this Security Instrument only to give that person's rights in the
Property to Lender under the terms of this Security Instrument; and (B) that
person is not personally obligated to pay the Sums Secured; and (C) that person
agrees that Lender may agree with the other Borrowers to delay enforcing any of
Lender's rights or to modify or make any accommodations with regard to the terms
of this Security Instrument or the Note without the person's consent.
Initials: _______ (Page 7 of 11 pages)
13. LOAN CHARGES
If the loan secured by this Security Instrument is subject to a law which sets
maximum loan charges, and that law is finally interpreted so that the interest
or other loan charges collected or to be collected in connection with the loan
exceed permitted limits: (A) any such loan charge shall be reduced by the amount
necessary to reduce the charge to the permitted limit; and (B) any sums already
collected from Borrower which exceeded permitted limits will be refunded to
Borrower. Lender may choose to make this refund by reducing the principal owned
under the Note or by making a direct payment to Borrower. If a refund reduces
principal, the reduction will be treated as a partial prepayment without any
prepayment charge under the Note.
14. NOTICES REQUIRED UNDER THIS SECURITY INSTRUMENT
A notice that must be given tome under this Security Instrument will be given by
delivering it or by mailing it by first class mail unless applicable law
requires use of another method. The notice will be addressed to me at the
address stated in the section above titled "Description of Property". A notice
will be given to me at a different address if I give Lender a notice of my
different address. Any notice that must be given to Lender under this Security
Instrument will be given by mailing it to Lender's address stated in
subparagraph (C) of the section above titled "Words Used Often In This
Document". A notice will be mailed to Lender at a different address if Lender
gives me a notice of a different address. A notice required by this Security
Instrument is given when it is mailed or when it is delivered according to the
requirements of this Paragraph 14 or of applicable law.
15. LAW THAT GOVERNS THIS SECURITY INSTRUMENT
This Security Instrument is governed by federal law and the law that applies in
the place where the property is located. If any terms of this Security
Instrument or of the Note conflicts with the law, all other terms of this
Security Instrument and of the Note will still remain in effect if they can be
given effect without the conflicting term. This means that any terms of this
Security Instrument and of the Note which conflicts with the law can be
separated from the remaining terms, and the remaining terms will still be
enforced.
16. BORROWER'S COPY
I will be given one conformed copy of the Note and of this Security Instrument.
17. AGREEMENTS ABOUT LENDER'S RIGHTS IF THE PROPERTY IS SOLD OR
TRANSFERRED
Lender may require immediate payment in full of ail Sums Secured by this
Security Instrument if all or any part of the Property, or if any right in the
Property, is sold or transferred without Lender's prior written permission.
Lender also may require immediate payment in full if a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural person. However,
Lender shall not require immediate payment in full if this is prohibited by
federal law on the date of this Security Instrument. If Lender requires
immediate payment in full under this Paragraph 17, Lender will give me a notice
which states this requirement. The notice will give me at least 30 days to make
the required payment during that period, Lender may act to enforce its rights
under this Security Instrument without giving me any further notice or demand
for payment.
18. BORROWER'S RIGHT TO HAVE LENDER'S ENFORCEMENT OF THIS SECURITY INSTRUMENT
DISCONTINUED
Even if Lender has required immediate payment in full, I may have the right to
have enforcement of this Security Instrument discontinued. I will have this
right at any time before sale of the Property under any power of sale granted by
this Security Instrument or any time before a judgment has been entered
enforcing this Security Instrument if I meet the following conditions: (A) I pay
to Lender the full amount that then would be due under this Security Instrument
and the note as if immediate payment is full had never been required; and
(B) I correct my failure to keep any of other promises or agreements made in
this Security Instrument; and
(C) I pay all of Lender's reasonable expenses in enforcing this Security
Instrument including, for example, reasonable attorneys's fees; and
(D) I do whatever Lender reasonably requires to assure that Lender's rights in
the Property, Lender's rights under this Security Instrument, and my obligations
under the Note and under this Security Instrument continue unchanged. If I
fulfill all of the conditions of this Paragraph 18, then the Note and this
Security Instrument will remain in full effect as if immediate payment in full
had never been required. However, I will not have the right to have Lender's
enforcement of this Security Instrument discontinued if Lender has required
immediate payment in full under paragraph 17 above.
19. NOTE HOLDER'S RIGHT TO SELL THE NOTE OR AN INTEREST IN THE NOTE; BORROWER'S
RIGHT TO NOTICE OF CHANGE OF LOAN SERVICER
The Note, or an interest in the Note, together with this Security Instrument,
may be sold one or more times. I may not receive any prior notices of these
sales. The entity that collects my monthly payments due under the Note and this
Security Instrument is called the "Loan Servicer". There may be a change of the
Loan Servicer as a result of the sale of the Note; there also may be one or more
changes of the Loan Servicer unrelated to a sale of the Note. The law requires
that I be given written notice of any change of the Loan Servicer. The written
notice must be given in the manner required under Paragraph 14 above and under
applicable law. The notice will state the name and address of the new Loan
Servicer, and also tell me the address to which I should make my payments. The
notice also will contain any other information required by the law.
20. CONTINUATION OF BORROWER'S OBLIGATIONS TO MAINTAIN AND PROTECT THE PROPERTY
The federal laws and the laws of the jurisdiction where the Property is located
that relate to health, safety or environmental protection are called
"Environmental Laws". I will not do anything affecting the Property that
violates Environmental Laws, and I will not allow anyone else to do so.
Environmental Laws classify certain substances considered hazardous for purposes
of this Paragraph 20. These are gasoline, kerosene, other flammable or toxic
petroleum products, toxic pesticides and herbicides, volatile solvents,
materials containing asbestos or formaldehyde, and radioactive materials. The
substances defined as toxic or hazardous by Environmental Laws and the
substances considered hazardous for purposes of this Paragraph 20 are called
"Hazardous Substances".
I will not permit Hazardous Substances to be present on the Property. I will not
use or store Hazardous Substances on the Property, and I will not allow anyone
else to do so. I also will not dispose of Hazardous Substances on the Property,
or release any Hazardous Substance on the Property, and I will not allow anyone
else to do so. However, I may permit the presence on the Property of small
quantities of Hazardous Substances that are generally recognized as appropriate
for normal residential use and maintenance of the Property, and I may use or
store these small quantities on the Property. In addition, unless law requires
removal or other action. the buildings, the improvements and the fixtures on the
Property are permitted to contain asbestos and asbestos-containing materials if
the asbestos and asbestos-containing materials are undisturbed and "non-friable"
(that is, not easily crumbled by hand pressure).
If I know of any investigation, claim, demand, lawsuit or other action by the
government or by a private party involving in the Property and any Hazardous
Substance or Environmental Laws, I will promptly notify the Lender in writing.
If the government notifies me (or I otherwise learn) that it is necessary to
remove a Hazardous Substance affecting the Property or to take other remedial
actions, I will promptly take all necessary remedial actions as required by
Environmental Laws.
21. LENDER'S RIGHTS IF BORROWER FAILS TO KEEP PROMISES AND AGREEMENTS
Except as provided in Paragraph 17 above, if all of the conditions stated in
subparagraphs (A), (B) and (C) of the Paragraph 21 are met, Lender may require
that I pay the entire amount remaining unpaid under the Note and under this
Security Instrument. Lender may do this without making any further demand for
payment. This requirement is called "immediate payment in full".
If Lender requires immediate payment in full, Lender may bring a lawsuit to take
away all of my remaining rights in the Property and have the Property sold. At
this sale Lender or another person may acquire the Property. This is known as
"foreclosure and sale". In any lawsuit for foreclosure and sale, Lender will
have the right to collect all costs and disbursements and additional allowances
allowed by law and will have the right to add all reasonable attorneys' fees to
the amount I owe Lender, which fees shall become part of the Sums Secured.
Lender may require immediate payment in full under this Paragraph 21 only if all
of the following conditions are met:
(A) I fail to keep any promise or agreement made in this Security Instrument,
including the promise to pay when due the Sums Secured.
Initials: _____ (Page 9 of 11 pages)
(B) Lender sends to me, in the manner described in Paragraph 14 above, a notice
that states:
(i) The promise or agreement that I failed to keep;
(ii) The action that I must take to correct that default;
(iii) The date by which I must correct the default. That date must be at least
30 days from the date on which the notice is given;
(iv) That if I do not correct the default by the date stated in the notice,
Lender may require immediate payment in full, and Lender or another person may
acquire the Property by means of foreclosure and sale;
(v) That if I meet the conditions stated in Paragraph 18 above, I will have the
right to have Lender's enforcement of this Security Instrument discontinued and
to have the Note and Security Instrument remain fully effective as if immediate
payment in full had never been required; and (vi) That I have the right in any
lawsuit for foreclosure and sale to argue that I did keep my promises and
agreements under the Note and under this Security Instrument, and to present any
other defense that I may have.
(C) I do not correct the default stated in the notice from Lender by the date
stated in that notice.
22. LENDER'S OBLIGATION TO DISCHARGE THIS SECURITY INSTRUMENT
When Lender has been paid all amounts due under the Note and Under this Security
Instrument, Lender will discharge this Security Instrument by delivering a
certificate stating that this Security Instrument has been satisfied. I will not
be required to pay Lender for the discharge, but I will pay all costs of
recording the discharge in the proper official records.
23. AGREEMENTS ABOUT NEW YORK LIEN LAW
I will receive all amounts lent to me by Lender subject to the trust fund
provisions of Section 13 of the New York Lien Law. This means that if, on the
date this Security Instrument is recorded, construction or other work on any
buildings or other improvements located on the Property has not been completed
for at least four months, I will: (A) hold all amounts which I receive and which
I have a right to receive from Lender under the Note as a "trust fund"; and (B)
use those amounts to pay for that construction or work before I use them for any
other purpose. The fact that I am holding those amounts as a "trust fund" means
that for any building or other improvement located on the Property I have a
special responsibility under the law to use the amount in the manner described
in this Paragraph 23.
24. RIDERS TO THIS SECURITY INSTRUNENT
If one or more riders are signed by Borrower and recorded together with this
Security Instrument, the promises and agreements of each rider are incorporated
as a part of this Security Instrument. [Check applicable box (es)]
X-Adjustable Rate Rider -Condominium Rider -1-4 Family
Rider
-Graduated Payment Rider -Planned Unit Development Rider -Biweekly Payment
Rider
-Balloon Rider -Rate Improvement Rider -Second Home
Rider
X Other(s) [Specify -VA Rider X Due-on-Transfer X Mortgage Rider
Schedule "A"
BY SIGNING BELOW, I accept and agree to the promises and agreements contained in
pages 1 through 12 of this Security Instrument and in any rider(s) signed by me
and recorded with it.
s\ Xxxxx X. Xxxxxxxx
_______________________| (Seal)
XXXXX X. XXXXXXXX Borrower
Initials: ________ (Page 10 of 11 pages)
s\ Xxxxxx X. Xxxxxxxx (Seal)
________________________
XXXXXX X. XXXXXXXX Borrower
Initials :________ (Page 11 of 11 pages) Form 3033 10/91
MORTGAGE RIDER
I further agree with the Lender as follows:
1. RIDER NOT APPLICABLE IF MORTGAGE IS ASSIGNED TO GOVERNMENT AGENCY
That this Rider shall replace those clauses in the Note and in the Mortgage
executed by me which are inconsistent with this Rider unless the Mortgage is
assigned to the Federal Home Loan Mortgage Corporation, the Government National
Mortgage Association or the Federal National Mortgage Association, or any other
federal or state governmental agency, in which event this Rider shall be
inapplicable and unenforceable.
2. REIMBURSEMENT FOR UNPAID INSURANCE PREMIUMS
That I will reimburse the Lender for any premiums paid for insurance by the
Lender after my failure to do so.
3. ADDITIONAL EVENTS CAUSING POSSIBLE IMMEDIATE PAYMENT IN FULL
That the Lender may require Immediate Payment in Full, at the option of the
Lender, a. upon my failure to pay any installment of principal or of interest
for thirty (30) days, or
b. upon my failure to pay any tax, water rates, or assessment for thirty (30)
days after a notice and demand has been mailed or delivered to me by the Lender,
or
c. after my failure to reimburse the Lender for premiums paid for fire or flood
insurance, or
d. after my failure, when requested by the Lender, to furnish a statement of the
amount due on the mortgage and whether I have any offsets or defenses against
the amounts that I owe this Lender under the Note, Mortgage, or this Rider.
4. INTEREST RATE AFTER FORECLOSURE IS BEGUN
That in the event the Lender requires Immediate Payment in Full and then
commences an action to foreclose the Mortgage, I shall pay interest thereafter
at the rate set forth in the Note or at the highest legal rate permitted by law,
whichever is higher.
5. AMOUNT OF "FUNDS" NEEDED AND REPAID ON DEMAND
That I will pay to the Lender at the time I sign this Mortgage a lump sum in the
amount of "Funds" due each month for taxes and insurance times the number of
months that have gone by since the last due date of the taxes or insurance
premiums; that I also agree that any excess amount of "Funds" on deposit that
shall be repaid or credited to me on demand shall be that amount shown as an
excess as of the last annual accounting of the "Funds".
6. ATTORNEY FEES AFTER FORECLOSURE IS BEGUN
That if the Lender commences an auction to foreclose the Mortgage, the Lender
may recover reasonable attorney fees in the amount up to five percent (5%) of
the balance due on the Mortgage, and these fees shall be secured by the
Mortgage.
7. ADDITIONAL EVENTS CAUSING POSSIBLE IMMEDIATE PAYMENT IN FULL AFTER NOTICE
That the Lender may require Immediate Payment in Full, at the option of the
Lender upon thirty (30) days notice to me.,
a. if any structure or fixture on the Property shall be removed, demolished, or
substantially altered;
b. if I shall convey the Property or any part thereof;
c. if I fail to comply with any requirements of federal, state or municipal
authorities (the Lender, however, may comply and add the expense to the mortgage
debt); or
d. if the Property becomes vacant or non-owner occupied.
8. RETENTION OF INSURANCE PROCEEDS
That the Lender may retain proceeds received from an insurance company following
a loss or damage to the Property and may apply them to reduce the mortgage debt,
or, at the Lender's option, it may pay the proceeds, in whole or part, to me for
the repair or replacement of the loss or damage.
9. APPOINTMENT OF A RECEIVER
That the Lender shall be entitled to the appointment of a court-appointed
receiver without notice to me and without regard to whether the Property itself
is adequate security for the mortgage debt.
10. OPTIONAL DISCONTINUANCE OF FORECLOSURE AFTER PAYMENT OF AMOUNT DUE
That in the event the Lender requires Immediate Payment in Full, the Lender may
discontinue any lawsuit brought for foreclosure and sale, but it does not have
to do so. The Lender may elect to continue to judgment despite an offer on my
part to pay the full amount that would have been due (any attempted payment by
me would be returned) and despite my correction of a failure to keep any of my
other promises or agreements made in the Mortgage.
11. LATE CHARGE ON TOTAL MONTHLY PAYMENT
Any late charge owing under the terms of the Note and Mortgage shall be computed
at the rate of two cents ($.02) for each dollar ($1.00) to the total monthly
payment that is overdue.
Date: May 30, 1997
s\ Xxxxx X. Xxxxxxxx
________________________
Xxxxx X. Xxxxxxxx
s\ Xxxxxx X. Xxxxxxxx
_________________________
Xxxxxx X. Xxxxxxxx
ADJUSTABLE RATE RIDER
(3 Year Treasury Index-Rate Caps)
THIS ADJUSTABLE RATE RIDER is made this day of May, 1997, and is incorporated
into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or
Security Deed (the "Security Instrument") of the same date given by the
undersigned (the "Borrower") to secure Borrower's Adjustable Rate Note (the
"Note") to First National Bank of Rochester (the "Lender") of the same date and
covering the property described in the Security Instrument and located at:
000 XXXXX XXXXXX, XXXXXXXXX, XXX XXXX 00000
(Property Address)
THE NOTE CONTAINS PROVISIONS ALLOWING FOR CHANGES IN THE INTEREST RATE AND THE
MONTHLY PAYMENT. THE NOTE LIMITS THE AMOUNT THE BORROWER'S INTEREST RATE CAN
CHANGE AT ANY ONE TIME AND THE MAXIMUM RATE THE BORROWER'S MUST PAY.
ADDITIONAL COVENANTS. In addition to the covenants and agreements made in the
Security Instrument, Borrower and Lender further covenant and agree as follows:
A. INTEREST RATE AND MONTHLY PAYMENT CHANGES
The Note provides for an initial interest rate of 6.875%. The Note provides for
changes in the interest rate and the monthly payments, as follows:
4. INTEREST RATE AND MONTHLY PAYMENT CHANGES
(A) Change Dates
The interest rate I will pay may change on the first day of JUNE, 2000, and on
that day every 36th month thereafter. Each date on which my interest rate could
change is called a "Change Date."
(B) The Index
Beginning with the first Change Date, my interest rate will be based on an
Index. The "Index" is the weekly average yield on United States Treasury
securities adjusted to a constant maturity of 3 years, as made availability 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".
If the Index is no longer available, the Note Holder will choose a new index
that is based upon comparable information. The Note Holder will give me notice
of this choice.
(C) Calculation of Changes
Before each Change Date, the Note Holder will calculate my new interest rate by
adding two and eight hundred seventy five thousandths percentage points (2.875%)
to the Current Index. The Note Holder will then round the result of this
addition to the nearest one-eighth of one percentage point (0.125%). Subject to
the limits stated in Section 4 (D) below, this rounded amount will be my new
interest rate until the next Change Date.
The Note Holder will then determine the amount of the monthly payment that would
be sufficient to repay the unpaid principal that I am expected to owe at the
Change Date in full on the maturity date at my new interest rate in
substantially equal payments. The result of this calculation will be the new
amount of my monthly payment.
(D) Limits on Interest Rate Changes
The Interest rate I am required to pay at the first Change Date will not be
greater than 8.875% or less than 4.875%. Thereafter, my interest rate will never
be increased or decreased on any single Change Date by more than two percentage
points (2.0%) from the rate of interest I have been paying for the preceding 36
months. My interest rate will never be greater than 11.875%.
(E) Effective Date of Change
My new interest rate will become effective on each Change Date. I will pay the
new amount of my new monthly payment beginning on the first monthly payment date
after the change date until the amount of my monthly payment changes again.
(F) Notice of Changes
The Note Holder will deliver or mail to me a notice of any changes in my
interest rate and the amount of my monthly payment before the effective date of
any change. The notice will include information required by law to be given me
and also the title and telephone number of a person who will answer any
questions I may have regarding the notice.
B. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN BORROWER
Uniform Covenant 17 of the Security Instrument is amended to read as follows:
Transfer of the Property or a Beneficial Interest in Borrower. If all or any
part of the Property or any interest in it is sold or transferred (or if a
beneficial interest in Borrower is sold or transferred and Borrower is not a
natural person) without Lender's prior written consent, Lender may, at its
option, require immediate payment in full of all sums secured by this Security
Instrument. However, this option shall not be exercised by Lender if exercise is
prohibited by federal law as of the date of this Security Instrument. Lender
also shall not exercise this option if: (a) Borrower causes to be submitted to
Lender information required by Lender to evaluate the intended transferee as if
a new loan were being made to the transferee; and (b) Lender reasonably
determines that Lender's security will not be impaired by the loan assumption
and that the risk of a breach of any covenant or agreement in this Security
Instrument is acceptable to Lender.
To the extent permitted by applicable law, Lender may charge a reasonable fee as
a condition to Lender's consent to the loan assumption. Lender may also require
the transferee to sign an assumption agreement that is acceptable to Lender and
that obligates the transferee to keep all the promises and agreements made in
the Note and in this Security Instrument unless Lender releases Borrower in
writing.
If Lender exercises the option to require immediate payment in full, Lender
shall give Borrower notice of acceleration. The notice shall provide a period of
not less than 30 days from the date the notice is delivered or mailed within
which Borrower must pay all sums secured by this Security Instrument. If
Borrower fails to pay these sums prior to the expiration of this period, Lender
may invoke any remedies permitted by this Security Instrument without further
notice or demand on Borrower.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants
contained in this Adjustable Rate Rider.
s\ Xxxxx X. Xxxxxxxx (Seal)
__________________________
XXXXX X. XXXXXXXX Borrower
s\ Xxxxxx X. Xxxxxxxx (Seal)
__________________________
XXXXXX X. XXXXXXXX Borrower
MULTISTATE ADJUSTABLE RATE RIDER - 3 YEAR ARM Single Family - Xxxxxx Xxx/Xxxxxxx
Mac Form 3114
DUE ON TRANSFER RIDER
This rider, is dated May 30, 1997, and is a part of and changes the Mortgage of
same date which I have given to secure my Note of this date (the "Note") to
FIRST NATIONAL BANK OF ROCHESTER (the "Lender") . The Mortgage covers the
property described in the Mortgage and located at:
000 Xxxxx Xxxxxx, Xxxxxxxxx, Xxx Xxxx 00000
(Address)
NOTICE: This Rider adds a provision to the Mortgage allowing the Lender to
require repayment of the Note in full upon the sale or transfer of the property.
AMENDED PROMISE.
Lender and I agree that Uniform Promise 17 of the Mortgage is changed to read as
follows:
17. AGREEMENTS ABOUT LENDER'S RIGHTS IF THE PROPERTY IS SOLD OR TRANSFERRED.
Lender may require Immediate Payment in Full, as that phrase is defined in
Paragraph 18 below, if all or any part of the Property, or if any right in the
property, is sold or transferred without Lender's prior written permission.
Lender also may require Immediate Payment in Full is a beneficial interest in
Borrower is sold or transferred and Borrower is not a natural person. However,
Lender shall not require Payment in Full if it is not authorized by Federal Law
to do so.
If Lender chooses to require immediate Payment in Full under this Paragraph 17,
Lender will send me a notice, in the manner described in Paragraph 14 above,
which states this requirement. The notice will give me at least 30 days to make
the required payment. The 30 day grace period will begin on the date the notice
is mailed or delivered. If I do not make the payment during that period, Lender
may bring a lawsuit for "foreclosure and sale" under Paragraph 19 below without
giving me any further notice or demand for payment.
I will continue to be responsible for all of my promises and agreements under
the Note and Mortgage even if I sell or transfer the Property to someone else,
unless the Lender releases me in writing from my promises and agreements.
By signing this Rider, I agree to all of the above.
s| Xxxxx X. Xxxxxxxx
______________________
XXXXX X. XXXXXXXX
s\ Xxxxxx X. Xxxxxxxx
_______________________
XXXXXX X. XXXXXXXX
DUE-ON-TRANSFER RIDER - New York - 1-4 Family 3/83 FNMA/FHLMC Plain Language
SCHEDULE A
Premises: 000 Xxxxx Xxxxxx Boat Xxxx 00-00
Xxxxxx Xxxx/Xxxx Xxxxxxxx Xxx Xxxxx Lot
Monroe Rochester Rochester 047.21 1 31
ALL THAT TRACT OR PARCEL OF LAND situate in the City of Rochester, County of
Monroe and State of New York, known and described as follows: Commencing at a
point on the north line of Beach Avenue as now laid out and forty (40) feet east
from the intersection of said north line with the east line of what was formerly
Oak Street; thence westerly along the north line of Beach Avenue sixty-five (65)
feet to the center of what was formerly Oak Street; thence northerly along said
center line extended northerly to the north line of the "Terrace" as shown on a
map of "Guilford Bluff" filed in Monroe County Clerk's Office in Liber 7 of Maps
at page 12; thence easterly along the north line of said "Terrace" sixty-five
(65) feet more or less; thence southerly to the place of beginning.
Also boat lots numbers 82, 83, 84, 86, 87, 88 and 89 as shown on said map of
"Guilford Bluff
ALL THAT TRACT OR PARCEL OF LAND, situate in the City of Rochester, County of
Monroe, State of New York, known and distinguished as Bath or Boat House Lot
Number Eighty-Five (85) as shown on a map of Guilford Bluff, so called, made by
X. X. Xxxxx, Surveyor, and filed in Monroe County Clerk's Office in Liber 7 of
Maps, at page 12. - 7
Said Bath or Boat House Lot Eighty-Five (85) located on the north side of the
Terrace, on said Guilford Bluff, reference had to said Map, and each lot extends
to a point eight (8) feet from the north line of the Protection Dock, and is ten
(10) feet wide front and rear and about twenty (20) feet
Together with a right of way in common with other parties over a strip of land
twenty feet in width taken from the west end of Lots 58 and 59 of the Guilford
Bluff Tract which was conveyed by Xxxxxxx X. Xxxxxxxxx and wife to the Village
of Charlotte by Deed dated August 29, 1901 and recorded June 3, 1902 in Monroe
County Clerk's Office in Liber 651 of Deeds at page 429.
Together with all the right, title and interest of said Xxx X. Xxxxx, and
Xxxxxxxxx X. Xxxxx, his wife, in the strip of land described in an instrument
recorded in said Clerk's Office in Liber 599 of Deeds at page 280, lying north
of Beach Avenue and south of the Bath or Boat House Lots in said tract.
For Conveyancing Only
Together with all right, title and interest of, in and to any streets and roads
abutting the above described premises.
Our policies of title insurance include such buildings and improvements thereon
which by law constitutes real property, unless specifically excepted therein.
Now is the time to determine whether we have examined all of the property and
easements which you desire to be insured: if there are appurtenant easements to
be insured, please request such insurance. In some cases, our rate manual
provides for an additional charge for such insurance.
