3. INTEREST DUE IN THE EVENT OF DEFAULT: In the event that the Borrower
fails to pay the note in full on the due date or has failed to make an installment
payment due within 15 days of the due date, unpaid principal shall accrue
interest at the rate of _______________ percent (___%) per annum OR the
maximum rate allowed by law, whichever is less, until the Borrower is no longer
4. ALLOCATION OF PAYMENTS: Payments shall be first credited any late fees
due, then to interest due and any remainder will be credited to principal.
5. PREPAYMENT: Borrower may pre-pay this Note without penalty.
6. LATE FEES: If the Lender receives any installment payment more than
_________________ days after the date that it is due, then a late payment fee of
_________________, shall be payable with the scheduled installment payment
along with any default interest due.
7. DUE ON SALE: This Note is secured by a security instrument described in
Section 17 securing repayment of this Note, the property described in such
security instrument may not be sold or transferred without the Lender’s consent.
If Borrower breaches this provision, Lender may declare all sums due under this
Note immediately due and payable, unless prohibited by applicable law.
8. ACCELERATION: If the Borrower is in default under this Note or is in default
under the security instrument securing repayment of this Note, and such default
is not cured within ____ days after written notice of such default, then Lender
may, at its option, declare all outstanding sums owed on this Note to be
immediately due and payable, in addition to any other rights or remedies that
Lender may have under the security instrument or state and federal law.
9. ATTORNEYS’ FEES AND COSTS: Borrower shall pay all costs incurred by
Lender in collecting sums due under this Note after a default, including
reasonable attorneys’ fees. If Lender or Borrower sues to enforce this Note or
obtain a declaration of its rights hereunder, the prevailing party in any such
proceeding shall be entitled to recover its reasonable attorneys’ fees and costs
incurred in the proceeding (including those incurred in any bankruptcy
proceeding or appeal) from the non-prevailing party.
10. WAIVER OF PRESENTMENTS: Borrower waives presentment for payment,
notice of dishonor, protest and notice of protest.
11. NON-WAIVER: No failure or delay by Lender in exercising Lender’s rights under
this Note shall be considered a waiver of such rights.