1. Finance
Lesson One

2. Learning Objectives
Understand the theory of relationship of a mortgage and promissory note.
Know the elements of a mortgage.

3. Evidence of Debt Negotiable Instrument Recorded When Paid Off
Promissory Note
Evidence of Debt
Negotiable Instrument
Recorded When Paid Off

4. Features of Promissory Note
Prepayment Clause
Acceleration Clause

5. Usury

6. FHA and VA Type Loans are EXEMPT from State Usury Laws.
Penalty
Forfeiture of All Interest
FHA and VA Type Loans are EXEMPT from State Usury Laws.

7. Mortgage Voluntary Specific Liens Recorded at Act of Sale
Title is Always in the Mortgagor’s Name .

8. Title Theory . . . . . Lender Lien Theory . . . . . Borrower
Hypothecation .

9. Parties to a Mortgage Mortgagor - Borrower Mortgagee - Lender

10. Granting Clause Acceleration Clause Defeasance Clause
Elements to a Mortgage
Granting Clause
Acceleration Clause
Defeasance Clause

11. Alienation Clause (due on sale clause) Recording of the Mortgage
Constructive Notice
Vendor Lien (privilege)
Recorded against the mortgage