Form 20-2

Mechanic’s Lien Note

Basic Information

Date:

Maker:

Maker’s Mailing Address:

Payee:

Payee’s Mailing Address:

Place for Payment:

Principal Amount:

Annual Interest Rate on Unpaid Principal from Date of Funding:

Annual Interest Rate on Matured, Unpaid Amounts:

Terms of Payment (principal and interest): [insert applicable clause from form 20-5 in this chapter]

Security for Payment

Liens created in mechanic’s lien contract between Maker and Payee

Date:

Trustee:

Contractor:

Property: [include legal description]

Deed of trust renewing liens

Date:

Grantor:

Beneficiary:

Trustee:

This note incorporates and is subject to the mechanic’s lien contract.

Promise to Pay

Maker promises to pay to the order of Payee the Principal Amount plus interest at the Annual Interest Rate. This note is payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts are due by the final scheduled payment date. If any amount is not paid either when due under the Terms of Payment or on acceleration of matu­rity, Maker promises to pay the unpaid amount plus interest from the date the payment was due to the date of payment at the Annual Interest Rate on Matured, Unpaid Amounts.

Default and Remedies

If Maker defaults in the payment of this note or in the performance of any obligation in any instrument securing or collateral to this note, Payee may declare the unpaid principal bal­ance and earned interest on the note immediately due. Maker and each surety, endorser, and guarantor waive all demand for payment, presentation for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, protest, and notice of protest, to the extent permitted by law.

Prepayment

Maker may at any time make full or partial prepayments on the principal without pay­ing any penalty, in addition to making regularly scheduled payments. Unless Payee agrees otherwise in writing, the making of partial prepayments will not alter the dates or amounts of regularly scheduled payments. Payee may require that any partial prepayments be in the same amount as regularly scheduled payments.

Attorney’s Fees

If any party retains an attorney to enforce this note, the party prevailing in litigation is entitled to recover reasonable attorney’s fees and court and other costs.

Usury Savings

Interest on the debt evidenced by this note will not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepay­ment, any excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited to the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt.

Other Clauses

Each Maker is responsible for all obligations represented by this note.

When the context requires, singular nouns and pronouns include the plural.

NOTICE

Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained pursuant hereto or with the proceeds hereof. Recovery hereunder by the debtor shall not exceed amounts paid by the debtor here­under.

   
[Name of maker]