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Unformatted text preview: d. Interest Rate- Usury and ARM (adjusted rate mortgage) B. Deed of Trust- an instrument serving the same function as a mortgage, where borrower places title to property in trust to secure repayment of a loan owed to the beneficiary of the trust. Mortgagor (borrower) and mortgagee (bank/lender) 1. Included in Deed of Trust a. Description of Collateral b. Require Borrower to maintain insurance c. Assignment of Rents (additional collateral), for commercial 2. Page 294 J. Duong 1 Real Estate Chapter 9 C. Loan Agreement 1. Only applies if it is a Commercial loan 2. Includes: a. Loan amount b. Purpose c. Security interest 3. Warranties 4. If you default, bank puts in “receiver” to deal with normal operations and run the commercial property, the owner loose rights to property even without foreclosure J. Duong 2...
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- Fall '07