Borrower'S Promise To Pay Form (Page 2 of 4) in pdf

Borrower'S Promise To Pay Form Page 2

(b)

Amount of Monthly Payments

My monthly payment will be in the amount of U.S. $ ________.

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 not designate a payment as a Prepayment if I have

not made all the monthly payments due under the Note.

I may make a full Prepayment or partial Prepayments without paying a Prepayment charge.

The Note Holder will use my Prepayments to reduce the amount of Principal that I owe under

this Note. However, the Note Holder may apply my Prepayment to the

accrued and unpaid interest on the Prepayment amount, before applying my Prepayment to

reduce the Principal amount of the 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: (a) any such loan chargeshall be

reduced bythe amount necessaryto reduce the charge to the permitted limit; and (b) 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 ________ 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 ________ % 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.

Borrower'S Promise To Pay Form Page 2