(1) Source of Funds
Lender will not knowingly make loans to, or accept property as collateral from an Applicant who purchases or satisfies other indebtedness secured by property using funds (for a down payment or other purpose) which are derived from in whole or in part from fraudulent or criminal activity, including, without limit, from the sale of a controlled substance. By signing this Application, you certify that all proceeds used to acquire, improve or otherwise invest in the secured property and any subsequent payments on your loan or other investment in the secured property were, or will be as the case may be, from legitimate sources and not derived in whole or in part from fraudulent or criminal activities, without limit, from the sale of controlled substances.
(2) Authorization for Credit Inquiries
Applicant authorizes Lender to make inquires and verifications deemed necessary to process the application. Applicant further acknowledges that Lender, its agents, successors and assigns will rely on the information contained in the application and herein, and that the Applicant has a continuing obligation to amend and/or supplement the information provided in the application and herein if any of the material facts which the applicant has represented herein or on the application should change prior to the close of the loan.
The undersigned specifically acknowledges and agrees that: (1) the loan requested by this application will be secured by a first mortgage or deed of trust on the property described herein; (2) the property will not be used for any illegal or prohibited purpose or use; (3) all statements made in this application are made for the purpose of obtaining the loan indicated herein. Undersigned understands that it is a federal crime punishable by fine or imprisonment, or both, to knowingly make any false statements concerning any of the facts contained in the referenced documents and/or forms as applicable under the provisions of Title 18, United States Code, Section 1014. As such, Undersigned hereby acknowledges that Undersigned or Undersigned’s representative has completed or will complete the required supporting documents and hereby certifies under penalty of perjury that the information contained in any and all of the required documents provided during the course of the Loan application process is true and correct, whether prepared by Undersigned representative. Undersigned further acknowledges that Lender’s receipt of a facsimile or photocopy signature from Undersigned is equivalent to an original signature by Undersigned; (4) occupation of the property will be as indicated; (5) in the event payments on the loan indicated in this application becomes delinquent, the Holder, it’s agents, successors and assigns, may, in addition to all their other rights and remedies, report account information to a credit reporting agency; (6) ownership of the loan may be transferred to successor or assignee of Lender without notice and any information provided or authorized may be delivered to a prospective purchaser at any time after the date of this application; in addition, the administration of the loan account may be transferred to an agent, successor or assignee of the Holder with prior notice; (7) the purchase of real property described herein, and any other transaction in respect thereto entered into by Applicant, is based solely on Applicant’s own inspection and opinion as to the value of the property and not upon any inspection, appraisal, representation or promise made by LENDER; (8) this loan request is made for the purpose of acquiring or carrying on the business of the Applicant and the proceeds of any loan made by the Lender to the Applicant will not be used for personal, household or consumer purposes.