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[Space Above This Line For Recording Data] MORTGAGE
THIS MORTGAGE ("Security Instrument") is given on , 20 The
Mortgagor is ("Borrower").
This Security Instrument is given to
which is organized and existing under the laws of , and
whose address is
("Lender"). Borrower owes Lender the principal sum of
Dollars (U.S. $ ). This debt is evidenced by Borrower's note dated the same date as this
Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and
payable on . This Security Instrument secures to Lender: (a) the
payment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower hereby mortgages, grants and conveys to Lender ([ ] the leasehold estate, created
pursuant to Homesite Lease No. , (Form [ ]200RL [ ]200UL) by and between the Navajo Nation, as
Lessor and Borrower, as Lessee, dated the day of , , in) ([ ] the freehold
estate in) [Check the applicable box] the following described property located in Chapter of the
Navajo Nation, (State of , County of ):
which has the address of
[Street] [City]
Chapter, Navajo Nation, (State of )
("Property Address").
[Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to mortgage, grant and convey the Property, and the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title of the Property against all claims and demands, subject to any encumbrances of record.
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01
(page 1 of 9 pages)
COVENANTS. Borrower and Lender covenant and agree as follows:
Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) all sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974, as amended from time to time, 12 U.S.C. 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and in such case, Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than 12 monthly payments, at Lender's sole discretion.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
Charges; Liens. Borrower shall pay all applicable taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 2 of 9 pages)
lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 15 days of receipt of notice.
Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval, which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with Paragraph 7.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible and Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within sixty (60) days of receipt of a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 60-day period will begin when the notice is deemed to have been received by Borrower in accordance with paragraph 14.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture action of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so.
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 3 of 9 pages)
Any amounts disbursed by Lender under this paragraph 7, shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment.
Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law.
Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, shall be assigned and paid to Lender, and shall be applied in the manner described below.
In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 60 days after the date the notice is deemed to have been received in accordance with paragraph 14, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments.
Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification or amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower and Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy.
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 4 of 9 pages)
Successors and Assign Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument, but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear, or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent.
Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the 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 Borrower which exceed permitted limits will be refunded to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note.
Notice. Any notice to Borrower provided for in this Security Instrument shall be in writing and shall be delivered personally to Borrower, unless Borrower elects to receive notice only by certified mail, return receipt requested, to the mailing address designated herein, by checking box (a) below. If Borrower does not elect to receive notice only by certified mail, Borrower may require that personal delivery of written notice be accompanied by an oral Navajo language translation, by checking box (b) below. In addition, regardless of whether written notice upon Borrower is to be made by personal delivery or by certified mail, Borrower may require that written notice also be given to a debt counseling entity and/or to another person and/or entity, by certified mail, return receipt requested, to the mailing address(es) designated herein, by checking box(es) (c) and/or (d) below. [Check applicable box(es).]
a. Only by certified mail, return receipt requested
b. Written personal delivery accompanied by oral Navajo language translation
c. Notice to the debt counseling entity selected by Borrower:
Name of entity:
Address:
Contact person:
Telephone:
d. Notice to other individual or entity:
Name:
Address:
Contact person (if any): Telephone:
Notice by personal delivery shall be deemed to have been received on the date delivered with proof of delivery thereof. Notice by certified mail shall be deemed to have been received on the date shown on the return receipt received by Lender, or, if no receipt is returned to Lender, 21 days after mailing. Notice to Borrower shall be deemed to have been received on the latest date that notice is made in accordance with each of the methods selected by Borrower in this Security Instrument.
Any notice to Lender shall be deemed to have been given to Lender by mailing it by first class mail to Lender's address designated herein.
Any party, debt counseling entity and/or other person may change the address to which notice shall be delivered or mailed by notice to the other party(ies), entity and/or person.
Governing Law; Severability. This Security Instrument shall be governed by the law of the Navajo Nation and applicable federal law. The courts of the Navajo Nation shall have sole and exclusive jurisdiction with respect to all controversies or claims relating to or arising out of this Mortgage or the Note. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable.
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01
(page 5 of 9 pages)
Borrower's Copy. Lender shall cause Borrower to be given one conformed copy of the Note and this Security Instrument.
Transfer of the Property or a Beneficial Interest in Borrower; Assumption. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is neither a natural person nor the Navajo Nation) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. Lender shall not exercise this option if such exercise by Lender is prohibited by federal law as of the date of this Security Instrument. Nor shall Lender exercise this option if (a) Borrower causes to be submitted to Lender information required by Lender to evaluate the intended transferee as if a new loan were being made to the transferee; (b) Lender reasonably determines that such person meets Lender's requirements for credit approval, that Lender's security will not be impaired by the loan assumption and that the risk of a breach of any covenant or agreement in this Security Instrument is acceptable to Lender; and (c) such person otherwise qualifies under Navajo law and Lessor consents to an assignment of the Homesite Lease described above. If the foregoing conditions (a) through (c) are met, and if Borrower's successor in interest has executed a written assumption agreement accepted in writing by Lender, then Lender shall release Borrower in writing from all obligations under this Mortgage and the Note.
To the extent permitted by applicable law, Lender may charge a reasonable fee as a condition to Lender's consent to the loan assumption. Lender also may require the transferee to sign an assumption agreement that is acceptable to Lender and that obligates the transferee to keep all the promises and agreements made in the Note and in this Security Instrument. Borrower will continue to be obligated under the Note and this Security Instrument unless Lender releases Borrower in writing.
If Lender exercises such option to require immediate payment in full, Lender shall give Borrower notice of acceleration in accordance with paragraph 14. Such notice shall provide a period of not less than 60 days from the date the notice is deemed to have been received in accordance with paragraph 14 within which Borrower must pay all sums secured by this Security Instrument and shall explain the remedies available to Lender if Borrower fails to pay such sums prior to the expiration of such period. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower; provided, however, Lender's right to invoke any remedies under this Security Instrument after the expiration of this period shall be subject to Navajo Nation's right of first refusal under paragraph 26 to acquire Borrower's interest in the Property.
Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) five days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses reasonably incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17.
Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law.
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 6 of 9 pages)
Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantifies of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property.
Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law.
As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the Navajo Nation that relate to health, safety or environmental protection.
Acceleration; Remedies. Lender shall give notice to Borrower, the Navajo Nation and the Bureau of Indian Affairs, prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 60 days from the date the notice is received by Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure proceeding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding; provided, however, prior to any sale of the Property subsequent to such foreclosure proceeding, Lender shall notify the Navajo Nation of the availability of the Property for sale and the Navajo Nation shall be entitled to exercise its right of first refusal to purchase the Property in accordance with paragraph 26 below and the terms of that certain Homesite Lease described above. Lender shall be entitled to seek all reasonable expenses incurred in pursuing the remedies provided in this paragraph 21, including, but not limited to, reasonable attorneys' fees, and costs of title evidence.
Ground Lease Default. A default by Borrower under the ground lease shall constitute a default under this Security Instrument.
Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument without charge to Borrower. Borrower shall pay any recordation costs.
Redemption Period. If this Security Instrument is foreclosed, the redemption period after judicial sale shall be two months.
Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument [Specify rider(s) below.]
Navajo Nation Right of First RefusaL Subsequent to Borrower's breach of any covenant or agreement in this Security Instrument, and upon the expiration of any applicable cure period provided Borrower under paragraph 21 above, pursuant to the terms of the Homesite Lease described above, the Navajo Nation, as Lessor thereunder, shall have the right of first refusal to acquire Borrower's Property (subject to all valid liens and encumbrances) upon either payment in full of all sums secured by this Security Instrument, assumption of the loan secured by this Security Instrument and execution of an assumption agreement acceptable in all respects to the Lender
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 7 of 9 pages)
or, prior to Lender's sale of the Property, upon execution of a new Note and Security Instrument for all amounts secured by this Security Instrument, including any and all unpaid interest due hereunder, and the payment to the Lender of any and all reasonable costs and expenses incurred by Lender in connection with its enforcement of this Security Instrument.
This right of first refusal shall be exercised by notice in writing from the Navajo Nation to Borrower and Lender within 60 days from the delivery of written notice from Lender of the availability of the Property. The right of first refusal shall be exercised solely for the purpose of providing a principal residence on the Property.
BY SIGNING BELOW, Borrower and Lender accept and agree to the terms and covenants contained in this Security Instrument, and in any rider(s) executed by Borrower and recorded with it.
Lender -Borrower
Attest -Borrower
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 8 of 9 pages)
The foregoing instrument was acknowledged before me this
[Date] by
[Borrower(s) acknowledging]
My Commission expires:
Notary Public USE ONLY FOR ENCUMBRANCES OF NAVAJO NATION OWNED LAND:
CERTIFICATE OF APPROVAL
Pursuant to 2 N.N.C. § 695(B)(4)(1) and the authority delegated to the Director of the Navajo Land Department by Resolution No. RCD-289-93 of the Resources Committee of the Navajo Nation Council, the foregoing mortgage of leasehold interest is hereby approved on behalf of the Navajo Nation.
Date Director, Navajo Land Department USE ONLY FOR ENCUMBRANCES OF TRUST OR RESTRICTED LAND: CERTIFICATE OF APPROVAL
Pursuant to Secretarial Redelegation Order 209 DM 8, 230 DM 1 and 3 IAM 4, the foregoing LEASEHOLD MORTGAGE is hereby approved subject to the terms and provisions of the lease described therein and the regulations of the Secretary of the Interior relating to the leasing of Tribal and individually owned trust or restricted lands and upon the condition that said Mortgage relates only to the leasehold estate and is not to be construed as an encumbrance or lien against the Tribe's or individual owners' beneficial interest in the land involved.
Date Regional Director, Navajo Region Bureau of Indian Affairs
[Space Below This Line For Acknowledgment]
FANNIE MAE/NAVAJO NATION--Single Family--MORTGAGE Form 3070 5/01 (page 9 of 9 pages)
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