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Constant Payment Mortgage Note
1. Promise to Pay. [Name], residing at [address] (Maker), FOR VALUE RECEIVED, promises to pay to the order of [bank], a [state] banking corporation, having principal place of business at [address] (Payee), at principal place of business in [address] or at such other place as may be designated in writing by the holder of this Note, the principal sum of ---------- dollars ($----------), with interest thereon to be computed from the date hereof at the rate of ---------- percent (----------%) per annum, which principal and interest Maker promises to pay as follows:
2. Constant Payment. Interest only payable on the first day of [month and year]. Thereafter, commencing on the first day of [month and year], installments of interest and principal shall be paid in the sum of ---------- dollars ($----------) each, such payments to continue monthly thereafter on the first day of each succeeding month until the entire indebtedness has been paid, In any event, the balance of principal, if any, remaining unpaid, plus accrued interest, shall be due and payable on [date]. The installments of interest and principal shall be applied first to interest at the rate set forth above, namely ----------.. percent (----------%) per annum upon the unpaid principal balance of the mortgage indebtedness from time to time outstanding, and the balance of the installments of principal and interest shall be applied in reduction of principal.
3. Partial Prepayment. In addition to the regular installments of principal and interest required to be made by Maker, the privilege is given to Maker or to the then owner of the mortgaged premises to make additional payments in reduction of the principal indebtedness in multiples of the next succeeding regular payments of principal called for, on any regular payment date, upon the giving of at least [number] days prior written notice to Payee of intention to make such payment, and provided the total payments of principal in any loan year do not exceed ---------- percent (----------%) of the original principal sum of this Note.
4. Full Prepayment. The privilege is also given to Maker or to the then-owner of the mortgaged premises to prepay the entire unpaid principal balance of the mortgage indebtedness on any regular payment date after the expiration of the seventh loan year, upon the giving of at least [number] days prior written notice to Payee of intention to do so. Maker shall pay the unpaid principal balance of the mortgage indebtedness together with accrued interest and, in addition, a prepayment privilege charge of a sum equivalent to ---------- percent (----------%) of the unpaid principal balance if paid during the eighth loan year; the prepayment privilege charge shall decrease at the rate of one half of one percent per annum during each subsequent loan year. The term "first loan year" shall be deemed to commence on the date of this Note, and "subsequent loan years" shall be deemed to commence on the anniversaries of the date of this Note.
5. No Undisclosed Principals. This Note is delivered and accepted upon the condition that Payee agrees to look solely to Maker for payment of the indebtedness and not to any disclosed or undisclosed principal.
6. Presentment Waived. Presentment for payment, notice of dishonor, and protest and notice of protest are hereby waived by the undersigned and any and all others who may at any time become liable for the payment of all or any part of this Obligation.
7. Acceleration of Principal. It is expressly agreed that the principal sum secured by this Note shall become due at the option of the holder on the happening of any default or event by which, under the terms of the mortgage or mortgages securing this Note, the principal sum may or shall become due and payable; also, that all of the covenants, conditions, and agreements contained in the mortgage or mortgages are made part of this Instrument.
8. Modification. This Note may not be changed orally, but only by an agreement in writing and signed by the party against whom enforcement of any waiver, change, modification, or discharge is sought.
9. Mortgage. This Obligation is secured by the mortgage or mortgages enumerated upon the real estate described.
[description of underlying mortgage] [description of premises]
*** If Required By State Law ***
This Section for Notary:
State of _________
County of ________ [County]
On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
My commission expires: _____