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NOTE
December
31, 2002
Frederick, Maryland
123
ABC Street, Frederick, Maryland 21702
1. BORROWER’S PROMISE TO PAY
In return for a loan that I
have received, I promise to pay U.S.
$ 99,500.00 (this amount is called
"principal"), plus interest, to the order of the Lender. The
Lender is Cash Flow Mortgage Co. 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 interest at a yearly rate of 8.0000%. The interest rate
required by this Section 2 is the rate I will pay both before and after
any default described in Section 6(B) of this Note.
3. PAYMENTS
(A)
Time and Place of Payments I
will make my monthly payments on the 1st day of each month
beginning on . I will make these payments every month until I have paid
all of the interest and any other charges described below that I may owe
under this Note. My monthly payments will be applied to interest before
charges described below that I may owe under this Note. My monthly
payments will be applied to interest only before principal. If, on , 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 4321 Broadway Street, New York, NY 12485, or at a
different place if required by the Note Holder.
(B)
Monthly payments in the amount of $856.80
4. BORROWER’S RIGHT TO PREPAY
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 may make full prepayment or
partial prepayment 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 date or in the amount of my monthly payment unless the
Note Holder agrees in writing to those changes.
5. LOAN CHARGES
If a law, which applies to
this loan and which sets 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 charge 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 Note Holder may
choose to make this refund by reducing the principal I owe under this Note
or by making a direct payment to me. If a refund reduces principal, the
reduction will be treated as a partial prepayment.
6. 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 (fifteen) 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 5% of
my overdue payment of principal and interest. I will pay this late charge
promptly, but only once 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.
(C)
Notice of Default Upon
my failure to make any payment when such a payment is due, or upon the
occurrences of a default under the Dee of Trust which I executed in
connection with the undertaking of this obligation, the Note Holder may,
at its option, accelerate the maturity of this Note and declare the entire
unpaid balance of the principal amount hereunder then outstanding,
together with interest accrued and unpaid thereon, to be immediately due
and payable.
(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 Cost 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 attorney’s fees.
7. GIVING OF NOTICE
Unless
applicable law requires a different method, any notice that must be given
to me under this Note will be given by delivering it or by mailing it by
first class mail to me at the Property Address above or at a different
address if I give the Note Holder a notice of my different address.
Any
notice that must be given to the Note Holder under this Note will be given
by mailing it by first class mail to the Note Holder at the address stated
in Section 3 (A) above or at a different address if I am given a notice of
that different address.
8. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If
more than one person signs this Note, each person is fully and personally
obligated to keep all of the premises made in this Note, is also obligated
to keep all of the promises made in this Note. The Note Holder may enforce
its rights under this Note against each person individually or against all
of us together. This means that any one of us may be required to pay all
of the amounts owed under this Note.
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