The note is a document on which a borrower promises to repay a loan. In the ease of a home loan, the note is often referred to as a mortgage note. The note contains the following information:

• It identifies the "borrower" as the person signing the Note, as well as, the person’s successors and or assigns.

• It identifies the "lender" by name.

A Note always contains a clause declaring the borrower’s promise to pay interest an repay the principal sum of the note.

• It sets out the principal amount, rate of interest and term of the note.

• It says when and where payments are to be made.

• It gives the amount of each payment.

• It indicates the Note is secured by a mortgage, deed of trust, or similar security instrument that is dated the same date as the Note and called the "Security Instrument". The Security Instrument protects the lender’ legal interest in the property should the property be foreclosed.

• It indicates payment adjustments, if applicable.

• A Note declares a borrower’s right to repay the debt.

• A Note sets out the penalty if the borrower fails to make his/her payments. It sets out late charges, and default charges.

• The Note sets out waiver rights, obligations and proper notice requirements.

By signing the note, the borrower accepts and agrees to the terms and conditions contained in the note.

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