FILED: SUFFOLK COUNTY CLERK 01/29/2016 02:50 PM
`FILED: SUFFOLK COUNTY CLERK 01m2016 02:50 PM
`
`NYSCEF DOC. NO.
`1
`NYSCEF DOC. NO. 1
`
`601339/2016
`INDEX NO. 601339/2016
`
`INDEX NO~
`
`
`
`
`RaCaIVaD uYSCEF:
`01/29/2016
`RECEIVED NYSCEF: 01/29/2016
`
`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF SUFFOLK
`
`
`DITECH FINANCIAL LLC F/K/A GREEN TREE
`
`SERVICING LLC,
`
`Plaintiff,
`
`_VS_
`
`SUMMONS
`Index No.
`
`STUART FREDERICK; BANK OF AMERICA,
`N.A.;"JOHN DOE #1-5" and "JANE DOE #1-5" said names
`being fictitious, it being the intention of Plaintiff to designate
`any and all occupants, tenants, persons or corporations, if
`any, having or claimng an interest in or lien upon the
`premises being foreclosed herein,
`
`Defendants.
`
`Mortgaged Premises:
`
`77 EAST MORICHES BOULEVARD
`
`EASTPORT, NY 11941
`
`TO THE ABOVE NAMED DEFENDANT(S):
`
`YOU ARE HEREBY SUMMONED to answer the Complaint in the above entitled action
`and to serve a copy of your Answer on the plaintiff‘s attorney within twenty (20) days of the
`service of this Summons, exclusive of the day of service, or within thirty (30) days after service of
`the same is complete where service is made in any manner other than by personal delivery within
`the State. The United States of America, if designated as a defendant in this action, may answer
`or appear within sixty (60) days of service. Your failure to appear or to answer will result in a
`judgment against you by default for the relief demanded in the Complaint. In the event that a
`deficiency balance remains from the sale proceeds, a judgment may be entered against you, unless
`the Defendant obtained a bankruptcy discharge and such other or further relief as may be just and
`equitable.
`
`YOU ARE IN DANGER OF LOSING YOUR HOME
`
`NOTICE
`
`If you do not respond to this summons and complaint by serving a copy of the"
`answer on the attorney for the mortgage company who filed this foreclosure proceeding
`against you and filing an answer with the court, a default judgment may be entered and
`you can lose your home.
`
`Speak to an attorney or go to the court where your case is pending for further
`information on how to answer the summons and protect your property.
`
`

`

`Sending a payment to your mortgage company will not stop this foreclosure action.
`
`YOU MUST RESPOND BY SERVING A COPY OF THE ANSWER ON THE
`ATTORNEY FOR THE PLAINTIFF (MORTGAGE COMPANY) AND FILING THE
`ANSWER WITH THE COURT.
`
`SUFFOLK County is designated as the place of trial. The basis of venue is the location of
`the mortgaged premises.
`
`Dated: Decemberpgg, 2015
`
`ELLI, ESQ.
`VICTOR S
`FEIN, SUC & CRANE, LLP
`Attorneys for Plaintiff
`1400 OLD COUNTRY ROAD STE C103
`
`WESTBURY, NY 11590
`
`Telephone No. 516/394-6921
`YGRMN452
`
`

`

`NATURE AND OBJECT OF ACTION
`
`The object of the above action is to foreclose a Purchase Money Mortgage held by the
`Plaintiff and recorded in the County of SUFFOLK, State ofNew York as more particularly
`described in the Complaint herein.
`
`TO THE DEFENDANT(S), except STUART FREDERICK; the plaintiff makes no
`personal claim against you in this action.
`
`TO THE DEFENDANT(S), except STUART FREDERICK;
`
`IF, AND ONLY IF, you have received or will receive a Bankruptcy Discharge Order
`which includes this debt, the plaintifi‘ is solely attempting to enforce its mortgage lien rights in the
`subject real property and makes no personal claim against you. In that event, nothing contained in
`these or any papers served or filed or to be served or filed in this action will be an attempt to
`collect from you or to find you personally liable for the discharged debt.
`
`

`

`SUPREME COURT OF THE STATE OF NEW YORK
`COUNTY OF SUFFOLK
`———_______________
`
`DITECH FINANCIAL LLC F/K/A GREEN TREE
`
`SERVICING LLC,
`
`Plaintiff,
`
`—VS_
`
`COMPLAINT
`Index No.
`
`STUART FREDERICK; BANK OF AMERICA, N.A.;
`"JOHN DOE #1-5" and "JANE DOE #1-5" said names being
`fictitious, it being the intention of Plaintiff to designate any
`and all occupants, tenants, persons or corporations, if any,
`having or claiming an interest in or lien upon the premises
`being foreclosed herein,
`
`Defendants.
`—*_____—_—
`
`The plaintiff herein, by FEIN, SUCH & CRANE, LLP, its attorneys, complains of the
`
`defendants above named, and for its cause of action, alleges:
`
`First: The plaintiff is a limited liability company duly licensed, organized and existing
`
`pursuant to the laws of the United States of America.
`
`Second: Upon information and belief, at all times hereinafter mentioned, the defendant(s)
`
`reside or conduct business at the address set forth in "Schedule A" annexed hereto (any that are
`
`corporations being organized and existing under the laws of the State set forth therein), and are
`
`made defendants in this action in the capacities and for the reasons alleged therein.
`
`Third: That the United States of America, the People of the State of New York, the
`
`State Tax Commission of the State of New York, the Industrial Commissioner of the State of
`
`New York, and all other agencies or instrumentalities of the Federal, State or local government,
`
`however designated, if named as defendants, are made parties solely by reason of the facts set
`
`forth in the annexed "Schedule B."
`
`Fourth: That heretofore, to secure a sum of money to the stated Lender, its successor
`
`

`

`and assigns, the defendants duly executed, acknowledged and delivered to the stated Lender, a
`
`certain bond(s) or n0te(s) whereby they bound their successors or heirs, executors, administrators
`
`and assigns, jointly and severally, in the amount of said sum, as more fully described in the
`
`annexed "Schedule C," said schedule being a copy of the bond(s) or n0te(s), or accurate reference
`
`to the assumption agreement(s) evidencing indebtedness to plaintiff, together with the terms of
`
`repayment of said sum and rights of the plaintiff.
`
`Fifth: Plaintiff is the holder of the Note referenced in paragraph FOURTH and entitled to
`
`enforce the Note. The Note was payable to Plaintiff or indorsed (specifically or in blank) and
`
`negotiated to Plaintiff. A copy of the Note with the indorsement(s) and/or allonge(s) is annexed
`
`hereto as Schedule "C".
`
`Sixth: That as security for the payment of said indebtedness, a Purchase Money
`
`Mortgage(s) was executed as annexed hereto in "Schedule D," acknowledged and delivered to the
`
`stated Lender/Mortgagee, its successors and assigns, wherein the named mortgagor or
`
`mortgagors bargained, granted and sold to the mortgagee named therein, its successors and
`
`assigns, the premises more particularly described therein (hereinafter, the "Mortgaged Premises")
`
`under certain conditions with rights, duties and privileges between the parties as described therein.
`
`Seventh: Plaintiff is current holder of the Mortgage securing the Note. The original
`
`Note is in Plaintiffs possession and control, and Plaintiff is otherwise entitled to enforce the
`
`subject Mortgage and Note pursuant to law.
`
`Eighth: That said mortgage(s) was duly recorded and the mortgage tax(es) due thereon
`
`was duly paid in the County Clerk's Office at the place and time that appears therein.
`
`Ninth: That Plaintifl" has complied with all applicable provisions of the RPAPL Section
`
`1304 and Banking Law, and specifically with Banking Law § 595-21 and 6-1 and 6—m if applicable,
`
`

`

`in securing the aforementioned indebtedness and at all times thereafter. In accordance with
`
`RPAPL Section 1304, a 90 day notice was sent to the borrower at least 90 days ago but within
`
`the last 12 months. The 90 day notice was sent at least 90 days before the commencement of this
`
`foreclosure action. Further, the notice under RPAPL Section 1304 was in 14-point type,
`
`contained the statutorily dictated language and the addresses and phone numbers of at least five
`
`US Department of Housing and Urban Development approved housing counseling agencies in the
`
`region where the borrower resides and was mailed by registered or certified mail and first class
`
`mail to the last known address of the borrower. Plaintiff has fillly and completely complied with
`
`the RPAPL Section 1304. Further, Plaintiff has complied fully with RPAPL Section 1306 filing
`
`requirements in that the filing with the superintendent was completed within three (3) business
`
`days of the mailing.
`
`Tenth: That the defendant, STUART FREDERICK, has failed to comply with the
`
`conditions of the mortgage(s) or bond(s)/note(s) by failing to pay portions of principal, interest or
`
`taxes, assessments, water rates, insurance premiums, escrow and/or other charges, all as more
`
`fully described in "Schedule E".
`
`Eleventh: That plaintiff elects herein to call due the entire amount secured by the
`
`mortgage(s) as more than thirty (30) days have elapsed since the date of default.
`
`Twelfth: That "Schedule E" sets forth the principal balance due, the default date and rate
`
`at which interest accrues and is owing since defendant(s) default.
`
`Thirteenth: That in order to protect its security, the plaintiff has paid, if set forth in
`
`"Schedule E", or may be compelled to pay during the pendency of this action, local taxes, assess-
`
`ments, water rates, insurance premiums and other charges assessed to the Mortgaged Premises,
`
`and hereby requests that any sums paid by it for said purposes, with interest thereon, be added to
`
`

`

`the sum otherwise due, be deemed secured by the mortgage(s) and be adjudged a valid lien on the
`
`Mortgaged Premises.
`
`Fourteenth: That the defendants herein have or claim to have some interest in, or lien
`
`upon, the Mortgaged Premises or some part thereof, which interest or lien, if any, accrued
`
`subsequent to the lien of the plaintiff's mortgage(s).
`
`Fifteenth: That the plaintiff is now the true and lawful holder of the said bond(s)/note(s)
`
`and is mortgagee of record or has been delegated the authority to institute a mortgage foreclosure
`
`action by the owner and holder of the subject mortgage and note; and there have been no prior
`
`proceedings, at law or otherwise, to collect or enforce the bond(s)/note(s) or mortgage(s) and no
`
`such proceedings are currently pending.
`
`Sixteenth: That Schedules "A", "B", "C", "D", and ”E", be incorporated and made part
`
`of the Complaint with the same force and effect as if they were completely and fully set forth
`
`wherever reference is made to them herein.
`
`Seventeenth: The plaintiff shall not be deemed to have waived, altered, released or
`
`changed its election herein by reason of any payment after the commencement of this action of
`
`any or all of the defaults mentioned herein and such election shall continue to be effective.
`
`WHEREFORE, plaintiff demands judgment adjudging and decreeing the amounts due it
`
`for principal, interest, costs and reasonable attorneys', fees ifprovided for in the bond(s), note(s)
`
`or mortgage(s), and that the defendants, and any persons claiming by, through or under them
`
`subsequent to the commencement of this action, and every other person or corporation whose
`
`right, title, conveyance or encumbrance of the Mortgaged Premises is subsequent or recorded
`
`subsequent to the plaintiff‘s interest, be forever barred and foreclosed of all right, claim, lien,
`
`interest or equity of redemption in and to the Mortgaged Premises; that the Mortgaged Premises,
`
`

`

`or part thereof, be decreed to be sold according to law as may be necessary to raise the amounts
`
`due for principal, interest, costs, allowances and disbursements, together with any monies
`
`advanced and paid by the plaintiff; that the plaintiff be paid the amounts due on said bond(s),
`
`note(s) and mortgage(s), and any sums paid by the plaintiff to protect the lien of its mortgage(s)
`
`out of the proceeds from the sale thereof, with interest thereon from the respective dates of
`
`payment thereof, costs and expenses of this action and reasonable attorneys' fees, if provided for
`
`in the bond(s), note(s) or mortgage(s), provided the amount of the sale proceeds permits said
`
`payment; that any of the parties hereto may purchase the Mortgaged Premises at sale; that this
`
`Court, if requested, forthwith appoint a Receiver of the rents and profits of the Mortgaged
`
`Premises with the usual powers and duties associated therewith; that the defendants STUART
`
`FREDERICK; be adjudged to pay any remaining deficiency unless the Defendant obtained a
`
`bankruptcy discharge; and such other or further relief as may be just and equitable. The plaintiff
`
`hereby reserves its right to share in surplus monies from the sale by virtue of its position as a
`
`judgment or other lien creditor, excluding the mortgage(s) foreclosed herein.
`
`Dated: December L7», 2015
`
` VICTOR SP ELLI, ESQ.
`
`FEIN, SUCH & CRANE, LLP
`Attorneys for Plaintiff
`1400 OLD COUNTRY ROAD STE C103
`
`WESTBURY, NY 11590
`
`Telephone: 516/394-6921
`YGRMN452
`
`

`

`SCHEDULE "A" - DEFENDANTS
`
`DEFENDANTS
`
`CAPACITY
`
`STUART FREDERICK
`77 EAST MORICHES BOULEVARD
`EASTPORT, NY 1 1941
`
`142 MINEOLA AVENUE SUITE 3B
`ROSLYN HEIGHTS NY 11577-2022
`
`3 MAGNOLIA DRIVE
`
`GREAT NECK, NY 1102i
`
`BANK OF AMERICA, NA.
`1800 TAPO CANYON ROAD
`SIMI VALLEY, CA 93063
`
`Defendant, who executed a certain Purchase Money Mortgage to MORTGAGE
`ELECTRONIC REGISTRATION SYSTEMS, INC. AS NOMINEE FOR
`COUNTRYWIDE HOME LOANS, INC. to secure the sum of $312,000.00, which
`was recorded in the SUFFOLK County Clerk's Office on July 19, 2005, in Liber
`M00021088 of Mortgages, at Page 425, et seq. Said Mortgage was assigned by
`MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC., AS
`NOMINEE FOR COUNTRYWIDE HOME LOANS, INC. to BANK OF
`AMERICA, N.A., SUCCESSOR BY MERGER TO BAC HQMELQANS
`SERVICING, LP, FKA COUNTRYWIDE HOME LOANS SERVICING, LP by
`Assignment dated September 7, 2011 and recorded on October 4, 2011 in Liber
`M00022122 Page 006, et seq. BAC HOME LOANS SERVICING, LP merged
`with and into BANK OF AMERICA, NATIONAL ASSOCIATION by virtue of
`Certificate of Merger attached hereto. Said Mortgage was further assigned by
`BANK OF AMERICA, N.A. to GREEN TREE SERVICING, LLC by Assignment
`dated May 13, 2013 and recorded on June 8, 2013 in Liber M00022348 Page 330,
`et seq. GREEN TREE SERVICING LLC merged with and into DITECH
`FINANCIAL LLC by virtue of Certificate of Merger attached hereto.
`
`Subordinate mortgagee by virtue of mortgage to MORTGAGE ELECTRONIC
`REGISTRATION SYSTEMS, INC. AS NOMINEE FOR COUNTRYWIDE
`HOME LOANS, INC. to secure the sum of $39,000.00, dated June 21, 2005 and
`recorded on July 19, 2005 in Liber M00021088, Page 426. Said Mortgage was
`assigned by MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC.
`AS NOMINEE FOR COUNTRYWIDE HOME LOANS, INC. to BANK OF
`AMERICA, N.A. by Assignment dated August 13, 2013 and recorded on
`December 10, 2013 in Liber M00022433 Page 440, et seq.
`
`JOHN DOE # 1-5
`and JANE DOE # 1-5
`77 EAST MORICHES BOULEVARD
`EASTPORT, NY 1 1941
`
`Said names being fictitious, it being the intention of Plaintiff to designate any and
`all occupants, tenants, persons or corporations, if any, having or claiming an
`interest in or lien upon the premises being foreclosed herein.
`
`

`

`Edda/are
`
`
`
`1
`
`Qfie first State
`
`I,
`
`JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
`
`DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT
`
`COPY OF THE CERTIFICATE OF MERGER, WHICH MERGES:
`
`"DITECH MORTGAGE CORP ", A CALIFORNIA CORPORATION,
`
`"DT HOLDINGS LLC", A DELAWARE LIMITED LIABILITY COMPANY,
`
`WITH AND INTO "GREEN TREE SERVICING LLC" UNDER THE NAI'E OF
`
`"GREEN TREE SERVICING LLC", A LIMITED LIABILITY COMPANY
`
`ORGANIZED AND EXISTING UNDER THE LAWS OF THE STATE OF DELAWARE,
`
`AS RECEIVED AND FILED IN THIS OFFICE THE THIRTEENTH DAY OF
`
`AUGUST, A.D. 2015, AT 1:35 O’CLOCK P.M.
`
`AND I DO HEREBY FURTHER CERTIFY THAT THE EFFECTIVE DATE OF
`
`THE AFORESAID CERTIFICATE OF MERGER IS THE THIRTY-FIRST DAY OF
`
`AUGUST, A.D- 2015, AT 12:05 O’CLOCK A.M.
`
` 151168309
`
`You may verify this certificate online
`at corp. delawara. gov/authver. shtml
`
`2458190
`
`8100M
`
`
`
`Jeffrey W. Bullock, Secretary of State
`AUTHEN C TION: 2641973
`
`DATE: 08-13-15
`
`

`

`State of Delaware
`Secre
`of State
`Division 0 Cor
`rations
`Delivered 01:35 P 08/13/2015
`FILED 01:35 PM 08/13/2015
`SRV 151168309 - 2458190 FILE
`
`STATE OF DELAWARE
`
`CERTIFICATE OF MERGER
`
`to Title 6, Section 18-209 of the Delaware Limited Liability Company Act,
`Pursuant
`undersigned hereby executes the following Certificate of Merger:
`
`the
`
`FIRST: The surviving limited liability company is Green Tree Servicing LLC, a Delaware
`limited liability company, and the corporation and limited liability company being merged into
`this surviving limited liability company are:
`
`DT Hoidings LLC, a Delaware limited liability company, and
`Ditech Mortgage Corp, a California corporation.
`
`SECOND: The Agreement and Plan of Merger has been approved, adopted, certified, executed
`and acknowledged by each of the constituent corporations and limited liability companies
`pursuant to Title 6, Section 18-209 of the Delaware Limited Liability Company Act.
`
`THIRD: The name of the surviving limited liability company is hereby amended to Ditech
`Financial LLC, a Delaware limited liability company (as such surviving entity, the “Surviving
`Limited Liability Company").
`
`FOURTH: The mergers are to become effective as of 12:05 AM EDT on August 31, 2015.
`
`FIFTH: The Agreement and Plan of Merger is on file at 3000 Baypon Drive, Suite 880, Tampa,
`FL 33607, the principal place of business ofthe Surviving Limited Liability Company.
`
`SIXTH: A copy of the Agreement and Plan of Merger will be furnished by the Surviving
`Limited Liability Company on request, without cost,
`to any stockholder or member of the
`constituent corporations or limited liability companies, as applicable.
`
`[The remainder of page intentionally left blank.]
`
`

`

`IN WITNESS WHEREOF, said Surviving Limited Liability Company has caused this
`certificate to be signed by an authorized officer, the 39:day of August, 2015.
`
`GREEN TREE SERVICING LLC
`
`gmwéew»
`
`Name: Wanda LambcLindow
`Title: Assistant Secretary
`
`[Certificate ofMerger]
`
`

`

`Cmporafioss Section
`Rflfinx 13597
`Austin, Tcxas 737! 13:59?
`
`Hope Andrade
`Secretary ofState
`
`
`
`Office of the Secretary 0f State
`
`CERTIFECATE 0F MERGER
`
`'“E'he undersigned, as Secretary of Stats of fins, hereby certifies that a filing instrument merging
`
`BAC E‘Iomc Loans Servicing, LP
`Domestic Limited Pannership (LP)
`{File Number 13186910]
`
`Into
`
`Bank of Amarica, National Associatien
`03m Bmiw/Organizafion
`USA
`
`[Entity not (sf Renard, Fiiing Number; Not AvailabEe]
`
`has been received in this office and has been found to canfom: to law
`
`Accordingly, the undcrsigned, as Smretary of State, and by the virtue of the auzhan'ty vested in the
`secretary by law, hereby issues this certificate evidencing the acceptance and filing of the merger on
`the date shown below
`
`Dmd: 06/281201 1
`
`Effective: OWN/'30}!
`
`Sammy of State
`
`
`
`Hope Andmde
`
`Meme: {512) 4634555
`Preparw by” Jean Marchione
`
`Came ms: m cm the imam: a: htsz/W.xm,szam.zx W
`Fax: {E E2} 4636709
`TED: £0343
`
`mm: 74»! f9! Relay Sex-vices
`Documemr “403463 6902
`
`Fubv . U...
`
`

`

`
`Comptroller of the Currency
`Administrator of National Banks
`
`Washington, DC 20219
`
`July 5, 2011
`
`Ms. Radhj Thayu
`Assistant General Counsel
`Bank of Americat NYB-l {4-09-02
`1 14 West 47th Street
`New York, NY £0036
`
`Re:
`
`Application to merge BAC Home Loans Servicing, LP. Plano, Texas, into
`Bank of America. N .A., Charlotte. North Carolina
`Application Control Number: 20] loML-12—0037
`
`Dear Ms. 'i‘hayu:
`
`This letter is the official unification from the Office of the Comptroller ofthe Currency of the
`merger of BAC llama: Loans Servicing, LP, Plano. Texas, into Bank ofAmerica, N.A.,
`Charlotte, North Carolina, effective July I, 2011.
`
`Sincerely, &%
`
`David Milly
`Large Bank Licensing Lead Expert
`
`Page 2 of 2
`
`

`

`SCHEDULE “B”
`
`-NONE—
`
`

`

`SCHEDULE ”C"
`
`

`

`Prepared by: SHARON DELEON
`
`
`lnterestOnlySM ADJUSTABLE RATE NOTE
`(One-Year LIBOR Index (As Published in The Wall Street Journal) — Rate Caps)
`
`THIS NOTE CONTAINS PROVISIONS ALLOWING FOR A CHANGE IN MY FIXED INTEREST RATE
`TO AN ADJUSTABLE INTEREST RATE AND FOR CHANGES IN MY MONTHLY PAYMENT. THIS
`NOTE LIMITS THE AMOUNT MY ADJUSTABLE INTEREST RATE CAN CHANGE AT ANY ONE
`TIME AND THE MAXIMUM RATE I MUST PAY.
`
`JUNE 21, 2005
`[Date]
`
`FOREST HILLS
`{City}
`
`NEW YORK
`[Stale]
`
`77 EAST MORICHES BOULEVARD, EASTPORT, NY 3.1941
`[Properly Address]
`
`1. BORROWER'S PROD/USE TO PAY
`
`In return for a loan that I have received, I promise to pay US. 3 312 , D U 0 . 0 0
`plus interest, to the order of Lender. Lender is
`COUNTRYWIDE HOME LOANS ,
`INC .
`I= will make all payments under this Note in the form of cash, check or money order.
`I understand that Lender may transfer this Note. Lender or anyone who takes this Note by transfer and who is entitled to
`receive payments under this Note is called the "Note Holder."
`
`(this amount is called "Principal"),
`
`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
`5 . 87 5 %. The interest rate I will pay may change in accordance with Section 4 of this Note.
`The interest rate required by this Section 2 and Section 4 of this Note is the rate I will pay both before and after any default
`described in Section 703) of this Note.
`
`3. PAYMENTS
`(A) Time and Place ol'Pnymcnts
`.
`AUGUST 01, 2005
`day of every month, beginning on
`I will make a payment on the first
`Before the First Principal and Interest Payment Due Date as described in Section 4 of this Note, my payment will consist only of
`the interest due on the unpaid principal balance of this Note. Thereafter, 1 will pay principal and interest by making a payment
`every month as provided below.
`I will make my monthly payments of principal and interest beginning on the First Principal and Interest Payment Due Date
`as described in Section 4 of this Note. 1 will make these payments every month until I have paid all of the principal and interest
`and any other charges described below that I may owe under this Note. Each monthly payment will be applied as of its
`scheduled due date, and if the payment includes both principal and interest, it will be applied to interest before Principal. If, on
`JULY 0 1 , 2035
`, I still owe amounts under this Note, I will pay those amounts in full on that date, which is called
`the "Maturity Date."
`1 will make my monthly payments at
`P .O. Box 660694, Dallas, TX 75266-0694
`or at a different place if required by the Note Holder.
`(B) Amount: of My Initial Monthly Payments
`Interest
`and
`the First Principal
`before
`My monthly payment will be in the amount of 0.8. 133 1 , 527 . 50
`,
`Payment Due Date, and thereafter will be in an amount sufficient to repay the principal and interest at the rate determined as
`described in Section 4 of this Note in substantially equal installments by the Maturity Date. The Note Holder will notify me
`prior to the date of change in monthly payment.
`(C) Monthly Payment Changes
`Changes in my monthly payment will reflect changes in the unpaid principal of my loan and in the interest rate that i must
`pay. The Note Holder will detemiine my new interest rate and the changed amt} 'nt of my monthly payment in accordance with
`Section 4 or 5 of this Note.
`
`CONV
`
`3’ MULTISTATE Interest Only ADJUSTABLE RATE NOTE * ONE YEAR LIBOR INDEX
`ZONE-XX (04/03Hd)
`Page 1 01‘4
`
`Initials:
`
`S.‘
`
`
`
`

`

`~
`
`‘
`
`x
`
`I
`
`4. ADJUSTABLE INTEREST RATE AND MONTHLY PAYluENT CHANGES
`(A) Change Dates
`day of
`The initial fixed interest rate I will pay will change to an adjustable interest rate on the first
`JULY, 2012
`, and the adjustable interest rate I will pay may change on that day every 12th month thereafter. The
`date on which my initial fixed interest rate changes to an adjustable interest rate, and each date on which my adjustable interest
`rate could change, is called a ”Change Date.“
`(B) The Index
`
`
`
`Beginning with the first Change Date. my adjustable interest rate will be based on an Index. The ”Index" is the average of
`interbank offered rates for one-year U.S. dollar—denominated deposits in the London market (LIBOR), as published in The ‘Wall
`Street Journal. 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 & ONE-QUARTER
`percentage points(
`2 . 250 %) 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(1)) 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 are expected to owe at the Charge 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
`10 . 875 % or less than
`The interest rate I am required to pay at the first Change Date will not be greater than
`2 . 2 50 %. Thereafter, my adjustable interest rate will never be increased or decreased on any single Change Date by more
`than two percentage points from the rate of interest I have been paying for the preceding 12 months. My interest rate will never
`be greater than
`10 . 87 5 %.
`(133) Effective Date of Changes
`My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment
`beginning on the first monthly payment date after the Change Date until the amount 01‘ my monthly payment changes again.
`(F) Notice of Changes
`Before the effective date of any change in my interest rate and/or monthly payment, the Note Holder will deliver or mail to
`me a notice of such change. The notice wilI include information required by law to be given to me and also the title and
`telephone number of a person who will answer any question I may have regarding the notice.
`(G) Date of First Principal and Interest Payment
`The date of my first payment consisting of both principal and interest on this Note (the "First Principal and Interest
`Payment Due Date") shall be the first monthly payment date after the first Change Date.
`5. 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 this Note.
`1 may make a full Prepayment or partial Prepayments without paying any 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 of my monthly payments
`unless the Note Holder agrees in writing to those changes. If the partial Prepayment is made during the period when my monthly
`payments consist only of interest, the amount of the monthly payment will decrease for the remainder of the term when my
`payments consist of only interest. If the partial Prepayment is made during the period when my payments consist of principal
`and interest, my partial Prepayment may reduce the amount of my monthly payments after the first Change Date following my
`partial Prepayment. However, any reduction due to my partial Prepayment may be offset by an interest rate increase.
`6; 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 charge
`shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from
`me that exceeded pennitted 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.
`
`7. BORROWER'S FAILURE TO PAY AS REQUIRED
`(A) Late Charges for Overdue Payments
`calendar
`FIFTEEN
`If the Note Holder has not received the full amount of any monthly payment by the end of
`2 . 000 % of my
`days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be
`overdue payment of interest. during the period when my payment is interest only, and of principal and interest thereafter. 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.
`
`CONV
`
`O" MULTJSTATE Interest Only ADJUSTABLE RATE NOTE - ONE YEAR LIEOR INDEX
`ZDBDS-XX (04/03)
`Page 2 of 4
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`Initials;
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`(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 that 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 mailed to me Or
`delivered by other means.
`{10) N0 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]: 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 atrorneys’ fees.
`
`8. GIVING OF NOTICES
`
`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 ifI give the Note
`Holder a notice of my different address.
`Unless the Note Holder requires a different method, 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
`ifI amgiven auction ofdiatdifferentaddress.
`
`9. 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 promises made in
`this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is
`also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety
`or endorser of 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.
`
`10. V‘VAIVERS
`
`I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor.
`"Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the
`right to require the Note Holder to give notice to other persons that amounts due have not been paid.
`n1. UNIFORM SECURED NOTE
`
`This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the
`Note Holder under this Note, a Mortgage, Deed of Trust, or Security Deed (the "Security Instrument"), dated the same date as
`this Note, protects the Note Holder from possible losses that might result if I do not keep the promises that I make in this Note.
`That Security Instrument describes how and under what conditions '1 may be required to make immediate payment in full of all
`amounts I owe under this Note. Some of those conditions read as follows:
`'
`
`(A) Until my initial fixed interest rate changes to an adjustable interest rate under the terms stated in Section 4 above,
`Uniform Covenant 18 of the Security Instrument shall read as follows:
`
`Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest