Preview
FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024
SUPREME COURT
STATE OF NEW YORK COUNTY OF NASSAU
CITIZENS BANK, N.A.,
CERTIFICATE OF
MERIT PURSUANT TO
Plaintiff '
CPLR 3012-b
-against-
Index No.
DONOVAN A. WELSH;
Mortgaged Premises
DONNA MARIE WELSH; and
#1" Address
"JOHN DOE through "JOHN DOE #12", the last twelve
8 Stirrup Lane, City of
names being fictitious and unknown to plaintiffs, the persons or
Glen Cove, County of
parties intended being the tenants, occupants, persons or
. Nassau, State of New York
corporations, if any, having or claiming an interest in or hen
11542
upon the premises described in the complaint,
Defendants.
1. I am an attorney at law duly licensed to practice in the State of New York, and am
affiliated with the law firm of Cooper Erving & Savage LLP, attorneys for plaintiff
Citizens Bank, N.A. in this action.
2. This residential foreclosure action involves a home loan, as such term is defined
in Real Property Actions and Proceedings Law §1304. Upon information and belief,
defendants DONOVAN A. WELSH and DONNA MARIE WELSH reside in the
property subject to foreclosure.
3. I have reviewed the facts of this case and reviewed pertinent documents,
including the mortgage, security agreement and note or bond underlying the mortgage
executed by defendant, all instruments of assignment (if any), and all other instruments of
indebtedness including any modification, extension, and consolidation.
4. I have consulted about the facts of this case with the following representative of
plaintiff:
Name Title
Brandi White Foreclosure Specialist
5. Upon this review and consultation, to the best of my knowledge, information, and
belief, I certify that there is a reasonable basis for the commencement of this action, and
that plaintiff is the creditor entitled to enforce rights under these documents.
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6. Listed in Exhibit A and attached hereto are copies of the following documents not
otherwise included as attachments to the summons and complaint: the mortgage, security
agreement and note or bond underlying the mortgage executed by the defendant; all
instruments of assignment (if any); and any other instrument of indebtedness, including
any modification, extension, and consolidation. (Check box if m documents are attached
in Exhibit A: O.)
7. Listed in Exhibit B and attached hereto are supplemental affidavits attesting that
certain documents as described in paragraph 5 supra are lost, whether by destruction,
theft, or otherwise. (Check box if m documents are attached in Exhibit B: CE.)
8. I am aware of my obligation under New York Rules of Professional Conduct (22
NYCRR Part 1200) and 22 NYCRR Part 130.
Dated: February 2, 2024 COOPER ERVING & SAVAGE LLP
Albany, New York
By:
Matt ew E. Minni fie , sq.
Attorneys for Plaintiff
20 Corporate Woods Boulevard, Suite 501
Albany, New York 12211
(518) 449-3900
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"A"
Exhibit
Home Equity Line of Credit Agreement in the amount of $38,000.00 dated July 10, 2019, from
DONOVAN A. WELSH to Citizens Bank, N.A.
Credit Line Mortgage in the amount of $38,000.00 July 10, 2019, from DONOVAN A. WELSH
and DONNA MARIE WELSH to Citizens Bank, N.A. and recorded in the Office of the Clerk of
the County of Nassau on August 12, 2019, in Book M Vl-43596 at page 165 as Instrument No.
2019-67025.
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ND note
HOME EQUITY LINE OF CREDIT AGREEMENT
Borrower(s): DoNOVMrA Wr,SH
Leader-
Citizens Bank, N.A.
1Citizens Plaza
*
Providence,R102903
Date of Agreement: o7/10/2019
This HOME EQUITY LINE OF CREDIT AGREEMENT ("Agreement") contains the terms which
Line" or Citizens'
govern your line of credit (the "Credit the "Credit Line Account") issued through Bank,
N.A. and hereafter referred to as Citizens Bank The Agreement sets fodh the t nns under
which Citizens Bank extends credit advances against your Credit Line Account. Each person who
signs this Agreement will be bound by its terms and conditions and will be responsible for paying 11
"Borrower," "you," "your," and "Applicant" mean each and
amounts owed. In this Agreement, the words
. "we," " s,"
every person who signs this Agreement, including all Borrowers named above. The words
"our," and "Londer" Citizens Bank mean as identified above. You agree to the following terms
and conditionst
L Promise to Pay. You promise to pay Citizens Bank the total of all credit advances mad .by us
under the terms of this Agreement, any other charges, and FINANCE CHARGES due, together with all
"Mortgage" w<1ich
costs and expenses for which you are responsible under this Agreement or under the
secures this Agreement. You will pay your Credit Line according to the payment terms set forth be ow.
2. Term. The term of your Credit Line will begin as of the date of the Agreement ("Opening Dat ")
and will continue until termination of your Credit Line Account. All indebtedness under this Agreekent,
ifnot already paid pursuant to the payment provisions below, will be due and payable upon termim tion.
. Period" of your
The "Draw Credit Agreement will begin on a date, after the Opening Date, when th;e
Agreement is secepted by us in the State of Rhode island, following the expiration of the right to cáncel,
and the meeting of all of our other conditions and will continue for a period of ten (10) ·
years;
subject to the terms and conditions of this Agreement. You may obtain credit advances during the "Draw
Period" not 000.00
to exceed, at any time, the credit limit of your line of credit, which is $ 38. | and
more fully described in paragraph 5, "Credit Limit". After the Draw Period ends, the Repayment P,eriod
will begin; and you will no longer be able to obtain credit advances. The length of the Repayment Period
is Fifteen (15) Years. The end of the Fifteen (15) Years is known as the "Maturity Date".
3. Payments.
a) Draw Period
You can obtain advances of credit for ten (10) years (the "Draw Period"). You have chdsen
the payment option checked below. The option checked below is based on the option that was
indicated on your home equity application. If no option was indicated on your application, the
loan will default to Option One (Interest Only). i
Option One: Monthly interest-only payments- Under this option, your payments will be d,ue
monthly and will equal the finance charges that accrued on the outstanding principal balance
during the preceding billing period, plus insurance premiums (if any), all other charges and'any
amount past due. The Minimum Payment will not reduce the principal that is outstanding on your
Credit Line Account. This option will result in greater expensesever the life of the Credit Line
Account
O Option Two: 2% of the balance - Under this option, your payments will be due monthly and will
equal 2% of the New Total Balance (which includes the principal balance and outstanding
FINANCE CHARGES as of the end of the billing period plus insurance premiums [if any], and
all other charges), plus late fees and any amount past due. The Minimurn Payment will equal
$20.00 or the outstanding balance on your Credit Line Account, whichever is less.
b) Changing Your Draw Period Payment Option
You may change your Draw Period Payment Option from Option I to Option 2, or from Option 2
to Option l. You must ask us in writing at least 15 days before the stan of the billing cycle in
which you want to change your Draw Period Payment Option.
gelFloorPPP_F
Rev1tha 07/02/2019
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. We do not have to let you change your Draw Period Payment Option if; (i) any of your payments
under this agreement are past due at the time you make your request, (ii) your account balance is
higher than your credit line at the time wlien you ask.us to change your Draw Period Payment .
Option, or (iii) we, in our sole discretion, believe that your account is not in good standing.
c) Repayment Period
After the draw period ends, you will no longer be able to obtain credit advances and must pay
the outstanding balance over 15 years (the "repayment period"). During the repayment period,
payments will be due monthly. Your minimun monthly payment will equal 1/180th of the
balance that was outstanding at the end of the draw period plus the FINANCE CHARGES that
have accrued on the remaining balance, plus any amount past due and all other charges or
$20.00; whichever is greater.
d) -Payments
All payments must be made by a cheek, money order, or other instrument in U.S. dollars and
must be received by us at the remittance address shown on your periodic billing statement.
Payments received at that addr.esson any business day will be credited to your Credit Line as of
the date received so that finance and other charges will not accrue. However, the Lende.r
may delay for a reasonable time the availability of the funds until Leader has had an
opportunity to confirm the validity of the payment. Payments may also be made at any of
our branch offices. You may also make payments by authorizing us to debit your
Citizens Bank checking account each month in the amount.of the Minimum Payment.
Payments sent by mail must be mailed early enough to insure receipt by us on the Payment Due
Date.
4. Application of Payments. Unless otherwise agreed or required by applicable law, during the Draw
Period, payments and other credits will be applied in the following order: to the oldest unpaid billings
first, and then sequentially to any other unpaid billings from the oldest to th-emost current. Payments in
excess of billed amounts will be credited to your account. During the Repayment Period, your payments
will be applied in the following order. assuming that it is made by the Payment Due Date: (a) The interest
portion of the unpaid Minimum Payment; and (b) any additional amount paid that exceeds interest d ue
will next be applied to the principal portion of the unpaid Minimum Payment. If you make a payment
greater than the Minimum Payment, but less than the Total Due shown on your periodic statement you
will.still be required to make the Minimum Payments in the months that follow. We will refund to you
any credit balance upon request if there is a credit balance on the date we receive the refund request.
5. Credit Limit. This Agreement covers a revolving line of credit for $ 38,000.00 which will be
Limit" under this Agreement. This is the
your "Credit maximum credit that is to be extended to you. If the
Credit Limit is exceeded, you will be in default of a material obligation under this Agreement and the
provisions of paragraph 7, "Limitations on Use of Checks" will apply. You may borrow against the
Credit Line, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit
Limit. You agree not to attempt, request, or obtain a credit advance that will make your Credit Line
Account balance exceed your Credit Limit. Your Credit Limit will not be increased should you overdraw
your Credit Line Account. If you exceed your Credit Limit, you agree to repay immediately the amount
by which your Credit Line Account exceeds your Credit Limit, even if we have not yet biHed you.
6. How to Use the Credit ,ine. You may obtain credit advances under your Credit Line by writing a
preprinted ?check" that we will supply to you. Credit Line checks are specially designated checks which
can be completed just like any other check. Each check written and negotiated will create a check
advance from us to you. Checks drawn on the Account on forms other than those forms supplied by us
for that purpose will not be honored. Each check you write will be paid with a check advance from your
Account unless you are in default under this Agreement, as described in paragraph 22, "Termination and
Checks."
Acceleration", or in those circHnstances described in paragraph 7, "Limitations on Use of
Your.use of a check will be reflected on your periodic statement as a check advance. Credit Line checks
will not be certified by us and you agree that we may retain the actual checks written by you, and need
not return the original checks to you. We may also provide additional ways of using your Account from
tirne to time.
If there is more than one person authorized to use this Credit Line Account, each of you agree not to give
us conflicting instructions, such as one of you telling us not to give check advances to the other.
Any such instructions will not be followed by us. However, any one of you may cancel your Credit Line
under paragraph 29 "Cancellation by You".
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Page 3
7. Limitations on Use of Checks. We reserve the right not to honor Credit Line checks in the following
circumstances:
(a) Your Credit Limit has been. or would be, exceeded by paying the check.
(b) Your check is post-dated. If a post-dated check is paid and as a result any other check is returned
or nol paid. we are not responsible. subject to any applicable law.
(c) Your checks have been reported lost or stolen.
Signer"
(d) Your check is not signed by an "Authorized as defined below,
(e) Your Credit Line has been terminated or suspended as provided in this Agreement or could be if
we paid the check.
·
(0 You are in violation of any other transaction requirement or would be if we paid the check. |
If we pay any check under these circumstances, you must repay us, subject to applicable laws, for the
amount of the check. The check itself will be evidence of your debt to us together with this Agreement.
Our liability, if any, for wrongful dishonor of a check is limited to your actual damages. Disbonor for any
reason as provided in this Agreement is not wrongful dishonor.
Signer"
8, Authorized Signers. The words "Authorized on checks as used in this Agreement mead and
include cach person who (a) signs the application for this Credit Line, and (b) signs this Agreement -
9. Stop Payments. We do not honor stop payment orders for checks drawn against your Credit Line
Account. You therefore should not use your Credit Line Account if you anticipate the need to stop
payment. You agree that we will have no liability to you or to any other pany because we do not honor
stop payment orders.
10. Lost Checks. If you lose your checks or someone is using them without your pennission, you·agree
to notify us immediately. The fastest way to notify us is by calling us at (800) 922-9999. You also can
notify us at Citizens Bank . , Consumer Loan Servicing, One Citizens Bank Way, Johnston, RI
02919
1l. Charges to Your Credit Line. We may charge your Credit Line to pay other fees and costs that you
are obligated to pay under this Agreement, under the Mortgage or ander any other document related to
your Credit Line. In addition, we may charge your Credit Line for funds required for continuing
insurance coverage as described in the pa ragraph 13 (a), "Insurance" or as described in the Mortgage.
We may also. at our option, charge your Credit Line to pay any costs or expenses to protect or perf®ct our
security interest in your dwelling. These costs or expenses include, without limitation. payments to;cure
defaults under any existing liens on your dwelling. If you do not pay your property taxes, we may ,
charge your Credit Line and pay the delinquent taxes. Any amount so charged to your Credit Line will be
a credit advance and will decrease the funds avallable, if any, under the Credit Line. However, we have
no obligation to provide any of the credit advances referred to in this paragraph.
12. Collateral. This Agreement is secured by a Mortgage dated 07/10/2019 to us On property located
in NASSAU County, State or Commonwealth of NY , (the "Property"). We
have the right. but are not required to take such action as is necessary to protect our Security Interest
described in this paragraph. Any amounts we may pay in exercising our right to protect our Security .
Interest must be paid by you on demand, and will bear interest at the ANNUAL PERCENTAGE RATE
then applicable to your account.
IMPORTANT NOTICE ABOUT YOUR REAL PROPERTY COLLATERAL If the deed to the
property you are pledging as security for this loan includes more than one parcel of land, the mortgage
you are requesting will be secured by ALL parcels described in your deed. If your deed contains more
than one parcel of land and you do not want to pledge all of them as security for your loan you sh'ould
contact your legal representative.
13 (a). Insurance. You must obtain insurance on the Property securing this Agreement through an
company of your choice that is reasonably satisfactory to us. With respect to hazard (non-flood)
insurance, the insurance shall be for the replacement cost of the buildings or appurtenances on the
Property, You must name Citizens Bank, N.A. as its interests may appear as mortgagee on all required
insurance policies. The insurance you maintain must provide for Ten (10) days notice of cancellation to
us. If the Property is located in a designated Flood Zone, you must also maintain flood insurance on the
Propeny in an amount we disclosed to you in writing before you entered into this Agreement. Subject to
applicable law. if you fail to obtain or maintain insurance as required herein or in the Mortgage, we-may
purchase insurance to protect our own interest, add the premium to your balance, pursue any other
remedies available to us, or do any one or more of these things.
In the event the Barrower fails to obtain and maintain any insurance on the Property required by the
Lender, the Borrower understands and agrees thal the Lender may, at its option (unless required to do so
by applicable law), obtain and maintain the required insurance and pay the premium(s) for such
insurance, and either: (i) add the cost of the insurance to the unpaid principal balance owed under tlie
Agreement (in which case the Borrower agrees lo repay the cost of the insurance in accordance with the
repayment tenns of the Agreement). (ii) bill the Borrower separately (in which case the Barrower agrees
to pay the bill immediately) or we will (iii) establish escrow pursuant to Section 13 (b) "Escrow". The
Borrower agrees to pay interest on any such amounts at the imerest rate provided in the Agreement until
such amounts are repaid in full The Borrower understands and acknowledges that any insurance "
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obtained and maintained by the Lender may (i) only protect the interests of the Lender and any other
creditor with a prior mortgage on the Property, and (ii) be more expensive than insurance obtained and
maintained by the Borrower.
13 (b). Escrow. If lender determines that borrower has not paid property taxes or community associates
"Insurance"
dues/fees/assessments, or has not established insurance as required by Section 13 (a) Lender
may establish an escrow account pursuant to the Real Estate Settlement Procedures Act, and require
borrower to pay monthly amounts into said escrow account. Borrower agrees that the escrow account
payment will be in addition to the payment amounts otherwise agreed to in this Agreement.
14. Right of Setoff, We have the right under the law to transfer funds heldin any deposit account that .
any person who signs this Agreement has with us or an affiliated bank, to pay or reduce your obligations
if you are in default under this Agreement or we terminate or accelerate your Credit Line Account You
grant to us a contractual possessory security interest in, and hereby assign, convey, deliver, pledge, and
transfer to us all right, title and interest in and to, your accounts with us (whether checking, savings, or
some other account), including without limitation all accounts held-jointly with someone else and all
accounts you may open in the future, excluding however all IRA, Keogh, and trust accounts. You
authorize us, to the extent permitted by applicable law, to charge or set off all sums owing under this
Agreement against any and all such accounts.
15. Periodic Statements. We will send you a periodic statement for all check advances made under this
Agreement during the Draw Period and for all monthly payments due during the Repayment Period. The
statement will show, among other things, payments and credits, check advances, FINANCE CHARGES,
insurance, and other charges, your Previous Total Balance, and your New Total Balance. Your statement
also will identify the Minimum Payment you must make for that billing period and the Payment Due
Date. All periodic statements shall conclusively be considered to be correct and accepted by you unless
we are notified in writing of any alleged errors within 60 days after receipt.
16. FINANCE CHARGES. You will pay a FINANCE CHARGE on the outstanding amount of the
principal balance under your Credit Line, once each billing cycle during the Draw Period and the
Repayment Period. The FINANCE CHARGE will begin to accrue on the date advances are posted to
your Credit Line Account. There is no "grace period" which would allow you to avoid a FINANCE
CHARGE on your Credit Line advances. FINANCE CHARGES do not accrue on any undisbursed
proceeds. . .
17. Method Used to Determine the Balance on.Which the FINANCE CHARGE Will Be Computed.
We figure the FINANCE CHARGE on your account by applying the daily periodic rate to the average
daily balance of your Credit Line Account and then multiply by the number of days in the billing cycle.
To get the average daily balance, we take the total beginning balance of your Credit Line Account cach
day and add new advances and subtract the principal portion of any payn.1entsand credits. The beginning
balance for the period is the New Principal Balance amount from your previous statement. To determine
the principal portion of a payment, subtract any unpaid FINANCE CHARGES then insurance premiums
(if any) and membership fees and other charges (if applicable). This gives us the daily principal balance
each day. Then we add up all the daily principal balances for Ihe billing cycle and divide the total by the
number of days in the billing cycle (the number of days since your last statement). This gives us the
average daily balance. The average daily balance does not include FINANCE CHARGES, insurance
premiums, membership fees or other charges.
18. How You May Compute the FINANCE CHARGES On Your Line of Credit Account. When the
average daily balance has been computed, you multiply the average daily balance by the daily periodic
rate which is arrived at by dividing the ANNUAL PERCENTAGE RATE by the number of days in the
year. The result is multiplied by the number of days in the billing cycle. This figure is the FINANCE
CHARGE assessedfor the billing cycle.
19. Periodic Rate and Corresponding ANNUAL PERCENTAGE RATE. We will determine the
Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE as follows. We start with an
independent index, (the "Index"), which is The Wall Street Journal Prime Rate, published daily in the
Rates."
listing of "Money We will use the Index value published on the last business day of each month
for any ANNUAL PERCENTAGE RATE adjustment.If the Index is no longer available, we will
choose a new Index and margin. The new Index will have an historical movement similar to the original
(ndex and margin, and the new Index and margin will result in an ANNUAL PERCENTAGE RATE
that is substantially similar to the rate in effect at the time the original index becomes unavailable. The
index is not necessarily the lowest rate charged by us on our loans. To determine the Periodic Rate that
will apply to your Credit Line Account, we add a margin to the value of the Index, then divide the value
by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE, we multiply
the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE
RATE. The ANNUAL PERCENTAGE RATE includes only interest and no other costs.
The Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Line will
increase or decrease as the Index increases or decreases from time to time. Any increase in the Periodic .
Rate will take the form of higher payment amounts. Adjustments to the Periodic Rate and the
corresponding ANNUAL PERCENTAGE RATE resulting from changes in the Index will take effect on
the first day of the next billing cycle. The maximum ANNUAL PERCENTAGE RATI$ during the
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Draw Period of your Credit Line will be 2 l.000 . The maximum ANNUAL PERCENTAGE RATE
during the Repayment Period of your Credit Line will be 21.000 or the maximum rate allowed by
applicable law. In no event will the ANNUAL PERCENTAGE RATE be less than 2.500% during the
life of your Credit Line. As of the last business day of the calendar month before the date of this
Agreement, the index was 5.50 % per annum. Based on that Index value, we estimate that the initial
Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Line for the first
billing cycle will be as stated below: The initial Periodic Rate·and corresponding ANNUAL
PERCENTAGE RATE actually in effect during the first billing cycle, which will be disclosed on your
first periodic statement. may differ from these estimates if the Index changes between the date this
Agreement was printed and the date you sign this Agreement.
Margin Added ANNUAL Daily Periodic
to Index PERCENTAGE RATE Rate
4.340 9.8400 0.0269
20. Annual Fee. There is no Annual Fee for the first year. Thereafter, a non-refundable Annual Fee of
550 will be charged to your Credit Line Account on each anniversary of your Credit Line, during th'e
Draw Period.
21 (a). Late Charges. Depending on the state or commonwealth identified above. your late fee wil be
calculated as follows:
Date"
Your payment will be late if it is not received by us within IS days of the "Payment Due
shown on your periodic statement. If your payment is late. we may charge you 5.000% of the
payment or $20.00, whichever is less.
i
21 (b). PREPAY M ENT: If you pay off the entire balance and close your line of credit account before
the·due date, you may be charged a fee as follows:
If you pay off and close your line of credil account within three (3) years after the date of the
Agreement. we may charge you, and you agree to pay us, a fee of 5350.00.
2 t (c). RETURNED CIIECK FEE: We may charge and you agree to pay a fee of $25.00 for each
return of a dishonored check or other payment instrument
21 (d). Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point
interest rate reduction on their Citizens Bank Home Equity Line of Credit if, at origination, borrower
clects to have payments automatically deducted each month from a Citizens Bank checking account the
borrower designates. If we are unable to successfully withdraw the automatic deductions from the
designated account two or more times within any 12 - month period, Citizens Bank reserves the right to
remove eligibility.
21 (c). Recording Fee. Upon termination and full payment of all obligations on your Credit Line ,
Account, we will charge you the fee required by the registry of deeds to record the discharge of the
Mortgage. If the Property is located in Connecticut, then you are responsible for paying the recording fee
directly to the registry ordeeds.
22. Termination and Acceleration. The entire unpaid balance of your Credit Line Account, including
unpaid fees and FINANCE CHARGES, shall at our option become immediately due and payable and we
can terminate your Credit Line Account by sending you notice, if any of the following occur: .
(a) You have at any time in connection with this Credit Line Account, including your application
for same. commined fraud or have made, or make at anytime, any material misrepresentation; .
(b) Failure to make any payment under this Agreement;
(c) Your action or inaction adversely affects the collateral for the Credit Line Account or our
rights in the collateral. This can include, for example, failure to maintain required insurance,
waste or destructive use of the Property, failure to pay taxes, failure to maintain adequate
insurance for the Security, death of all persons liable on the Credit Line Account or the death of
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any of the Borrowers if the collateral is adveSsely affected by such death, transfer of title or sale
of the Property, the Property is taken through eminent domain, creation of a senior lien on the
Property without our permission, foreclosure by the holder of a prior lien or the use of the
dwelling for prohibited purposes if it subjects the Property to seizure.
23. Suspension or Reduction. In addition to any other rights we may have, (neither notice nor your
agreement is required), we can suspend additional extensions of credit or reduce your Credit Limit during
any period in which any of the following are in effect:
(a) The value of the Property declines significantly below the Property's appraised value for
purposes of this Credit Line Account. This includes, for example, a decline such that the initial
difference between the credit limit and the available equity is reduced by fifty percent and may
include a smaller decline depending on the individual circumstances;
(b) We reasonably believe that you will be unable to fulfdi your payment obligations under your
Credit Line Account due to a material change in your financial circumstances;
(c) You are in default under any material obligations of this Credit Line Account. We consider
all of your obligations to be material. Categories of material obligations include the events
described above under paragraph 22, "Tennination and Acceleration", ob[igations to pay fees
and charges, obligations and limitations on the receipt of credit advances, obligations conceming
maintenance or use of the Property, obligations to pay and perform the terms of any other deed of
trust, mortgage or lease of the Property, obligations to notify us and to provide documents or.
infonnation to us (such as updated financial infonnation), obligations to comply with applicable
laws (such as zoning restrictions), and obligations of any comaker. No default will occur until we
mail or deliver a notice of default to you, so you can restore your right to credit advances;
(d) Govemment action prevents us from imposing the ANNUAL PERCENTAGE RATE
provided for under this Agreement, or impairs our security interest such that the value of ghe
Property is less than I20 percent of the credit line;
(e) We have been notified by govemmental authority that continued advances may constitute an .
unsafe and unsound business practice. We may charge your account for appraisal and Credit
Report fees we incur in investigating whether any condition pennitting us to suspend your credit
privileges or reduce your credit limit continues to exist
(f) The maximum ANNUAL PERCENTAGE RATE is reached.
if your Credit Line is suspended or terminated, you must immediately destroy all Credil Line
checks and any other access devices. Any use of checks or other access devices following
suspension or tennination may be considered fraudulent. You will also remain liable for any
further use of such checks or other Credit Line access devices not returned to us.
24. Change in Terms. We may make changes to the terms of this Agreement if you agree to the change
in writing at that time, if the change will unequivocally benefit you throughout the remainder of your
Credit Line Account, or if the change is insignificant (such as changes relating to our data processing
systems).
25. Collection Costs. If you fail to abide by any terms of this Agreement, and if we are permitted to do
so by applicable law, we may hire or pay someone else to help collect your Credit Line Account. You
will pay af1reasonable collections costs, including reasonable attorney's fees incurred by us in the
collection of amounts due under this Agreement to the extent not prohibited by applicable law. This
includes, subject to any limits under applicable law, our legal expenses whether or not there is a lawsuit
and legal expenses for bankruptcy proceedings (including effons to modify or vacate any automatic stay
of injunction), appeals, and any anticipated post-judgment collection services.
26. Delay in Enforcement. Failure at any time by us to exercise any of our rights hereunder shall not
constitute a waiver of our right to exercise the same at a later time.
27. Default. You will be in defauh under this Agreement if any of the following occurs, each of which
constitutes a breach of a material obligation of yours under this Agreement:
(a) You fail to make any payment when due or to pay any charge or fee when due;
(b) Your action or failure to act adversely affects our security for your Credit Line Account
or a right we have in the security;
. .
(c) A court determines th
Preview
FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 SUPREME COURT STATE OF NEW YORK COUNTY OF NASSAU CITIZENS BANK, N.A., CERTIFICATE OF MERIT PURSUANT TO Plaintiff ' CPLR 3012-b -against- Index No. DONOVAN A. WELSH; Mortgaged Premises DONNA MARIE WELSH; and #1" Address "JOHN DOE through "JOHN DOE #12", the last twelve 8 Stirrup Lane, City of names being fictitious and unknown to plaintiffs, the persons or Glen Cove, County of parties intended being the tenants, occupants, persons or . Nassau, State of New York corporations, if any, having or claiming an interest in or hen 11542 upon the premises described in the complaint, Defendants. 1. I am an attorney at law duly licensed to practice in the State of New York, and am affiliated with the law firm of Cooper Erving & Savage LLP, attorneys for plaintiff Citizens Bank, N.A. in this action. 2. This residential foreclosure action involves a home loan, as such term is defined in Real Property Actions and Proceedings Law §1304. Upon information and belief, defendants DONOVAN A. WELSH and DONNA MARIE WELSH reside in the property subject to foreclosure. 3. I have reviewed the facts of this case and reviewed pertinent documents, including the mortgage, security agreement and note or bond underlying the mortgage executed by defendant, all instruments of assignment (if any), and all other instruments of indebtedness including any modification, extension, and consolidation. 4. I have consulted about the facts of this case with the following representative of plaintiff: Name Title Brandi White Foreclosure Specialist 5. Upon this review and consultation, to the best of my knowledge, information, and belief, I certify that there is a reasonable basis for the commencement of this action, and that plaintiff is the creditor entitled to enforce rights under these documents. 1 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 6. Listed in Exhibit A and attached hereto are copies of the following documents not otherwise included as attachments to the summons and complaint: the mortgage, security agreement and note or bond underlying the mortgage executed by the defendant; all instruments of assignment (if any); and any other instrument of indebtedness, including any modification, extension, and consolidation. (Check box if m documents are attached in Exhibit A: O.) 7. Listed in Exhibit B and attached hereto are supplemental affidavits attesting that certain documents as described in paragraph 5 supra are lost, whether by destruction, theft, or otherwise. (Check box if m documents are attached in Exhibit B: CE.) 8. I am aware of my obligation under New York Rules of Professional Conduct (22 NYCRR Part 1200) and 22 NYCRR Part 130. Dated: February 2, 2024 COOPER ERVING & SAVAGE LLP Albany, New York By: Matt ew E. Minni fie , sq. Attorneys for Plaintiff 20 Corporate Woods Boulevard, Suite 501 Albany, New York 12211 (518) 449-3900 2 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 "A" Exhibit Home Equity Line of Credit Agreement in the amount of $38,000.00 dated July 10, 2019, from DONOVAN A. WELSH to Citizens Bank, N.A. Credit Line Mortgage in the amount of $38,000.00 July 10, 2019, from DONOVAN A. WELSH and DONNA MARIE WELSH to Citizens Bank, N.A. and recorded in the Office of the Clerk of the County of Nassau on August 12, 2019, in Book M Vl-43596 at page 165 as Instrument No. 2019-67025. 3 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 ND note HOME EQUITY LINE OF CREDIT AGREEMENT Borrower(s): DoNOVMrA Wr,SH Leader- Citizens Bank, N.A. 1Citizens Plaza * Providence,R102903 Date of Agreement: o7/10/2019 This HOME EQUITY LINE OF CREDIT AGREEMENT ("Agreement") contains the terms which Line" or Citizens' govern your line of credit (the "Credit the "Credit Line Account") issued through Bank, N.A. and hereafter referred to as Citizens Bank The Agreement sets fodh the t nns under which Citizens Bank extends credit advances against your Credit Line Account. Each person who signs this Agreement will be bound by its terms and conditions and will be responsible for paying 11 "Borrower," "you," "your," and "Applicant" mean each and amounts owed. In this Agreement, the words . "we," " s," every person who signs this Agreement, including all Borrowers named above. The words "our," and "Londer" Citizens Bank mean as identified above. You agree to the following terms and conditionst L Promise to Pay. You promise to pay Citizens Bank the total of all credit advances mad .by us under the terms of this Agreement, any other charges, and FINANCE CHARGES due, together with all "Mortgage" w<1ich costs and expenses for which you are responsible under this Agreement or under the secures this Agreement. You will pay your Credit Line according to the payment terms set forth be ow. 2. Term. The term of your Credit Line will begin as of the date of the Agreement ("Opening Dat ") and will continue until termination of your Credit Line Account. All indebtedness under this Agreekent, ifnot already paid pursuant to the payment provisions below, will be due and payable upon termim tion. . Period" of your The "Draw Credit Agreement will begin on a date, after the Opening Date, when th;e Agreement is secepted by us in the State of Rhode island, following the expiration of the right to cáncel, and the meeting of all of our other conditions and will continue for a period of ten (10) · years; subject to the terms and conditions of this Agreement. You may obtain credit advances during the "Draw Period" not 000.00 to exceed, at any time, the credit limit of your line of credit, which is $ 38. | and more fully described in paragraph 5, "Credit Limit". After the Draw Period ends, the Repayment P,eriod will begin; and you will no longer be able to obtain credit advances. The length of the Repayment Period is Fifteen (15) Years. The end of the Fifteen (15) Years is known as the "Maturity Date". 3. Payments. a) Draw Period You can obtain advances of credit for ten (10) years (the "Draw Period"). You have chdsen the payment option checked below. The option checked below is based on the option that was indicated on your home equity application. If no option was indicated on your application, the loan will default to Option One (Interest Only). i Option One: Monthly interest-only payments- Under this option, your payments will be d,ue monthly and will equal the finance charges that accrued on the outstanding principal balance during the preceding billing period, plus insurance premiums (if any), all other charges and'any amount past due. The Minimum Payment will not reduce the principal that is outstanding on your Credit Line Account. This option will result in greater expensesever the life of the Credit Line Account O Option Two: 2% of the balance - Under this option, your payments will be due monthly and will equal 2% of the New Total Balance (which includes the principal balance and outstanding FINANCE CHARGES as of the end of the billing period plus insurance premiums [if any], and all other charges), plus late fees and any amount past due. The Minimurn Payment will equal $20.00 or the outstanding balance on your Credit Line Account, whichever is less. b) Changing Your Draw Period Payment Option You may change your Draw Period Payment Option from Option I to Option 2, or from Option 2 to Option l. You must ask us in writing at least 15 days before the stan of the billing cycle in which you want to change your Draw Period Payment Option. gelFloorPPP_F Rev1tha 07/02/2019 4 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 Page 2 . We do not have to let you change your Draw Period Payment Option if; (i) any of your payments under this agreement are past due at the time you make your request, (ii) your account balance is higher than your credit line at the time wlien you ask.us to change your Draw Period Payment . Option, or (iii) we, in our sole discretion, believe that your account is not in good standing. c) Repayment Period After the draw period ends, you will no longer be able to obtain credit advances and must pay the outstanding balance over 15 years (the "repayment period"). During the repayment period, payments will be due monthly. Your minimun monthly payment will equal 1/180th of the balance that was outstanding at the end of the draw period plus the FINANCE CHARGES that have accrued on the remaining balance, plus any amount past due and all other charges or $20.00; whichever is greater. d) -Payments All payments must be made by a cheek, money order, or other instrument in U.S. dollars and must be received by us at the remittance address shown on your periodic billing statement. Payments received at that addr.esson any business day will be credited to your Credit Line as of the date received so that finance and other charges will not accrue. However, the Lende.r may delay for a reasonable time the availability of the funds until Leader has had an opportunity to confirm the validity of the payment. Payments may also be made at any of our branch offices. You may also make payments by authorizing us to debit your Citizens Bank checking account each month in the amount.of the Minimum Payment. Payments sent by mail must be mailed early enough to insure receipt by us on the Payment Due Date. 4. Application of Payments. Unless otherwise agreed or required by applicable law, during the Draw Period, payments and other credits will be applied in the following order: to the oldest unpaid billings first, and then sequentially to any other unpaid billings from the oldest to th-emost current. Payments in excess of billed amounts will be credited to your account. During the Repayment Period, your payments will be applied in the following order. assuming that it is made by the Payment Due Date: (a) The interest portion of the unpaid Minimum Payment; and (b) any additional amount paid that exceeds interest d ue will next be applied to the principal portion of the unpaid Minimum Payment. If you make a payment greater than the Minimum Payment, but less than the Total Due shown on your periodic statement you will.still be required to make the Minimum Payments in the months that follow. We will refund to you any credit balance upon request if there is a credit balance on the date we receive the refund request. 5. Credit Limit. This Agreement covers a revolving line of credit for $ 38,000.00 which will be Limit" under this Agreement. This is the your "Credit maximum credit that is to be extended to you. If the Credit Limit is exceeded, you will be in default of a material obligation under this Agreement and the provisions of paragraph 7, "Limitations on Use of Checks" will apply. You may borrow against the Credit Line, repay any portion of the amount borrowed, and re-borrow up to the amount of the Credit Limit. You agree not to attempt, request, or obtain a credit advance that will make your Credit Line Account balance exceed your Credit Limit. Your Credit Limit will not be increased should you overdraw your Credit Line Account. If you exceed your Credit Limit, you agree to repay immediately the amount by which your Credit Line Account exceeds your Credit Limit, even if we have not yet biHed you. 6. How to Use the Credit ,ine. You may obtain credit advances under your Credit Line by writing a preprinted ?check" that we will supply to you. Credit Line checks are specially designated checks which can be completed just like any other check. Each check written and negotiated will create a check advance from us to you. Checks drawn on the Account on forms other than those forms supplied by us for that purpose will not be honored. Each check you write will be paid with a check advance from your Account unless you are in default under this Agreement, as described in paragraph 22, "Termination and Checks." Acceleration", or in those circHnstances described in paragraph 7, "Limitations on Use of Your.use of a check will be reflected on your periodic statement as a check advance. Credit Line checks will not be certified by us and you agree that we may retain the actual checks written by you, and need not return the original checks to you. We may also provide additional ways of using your Account from tirne to time. If there is more than one person authorized to use this Credit Line Account, each of you agree not to give us conflicting instructions, such as one of you telling us not to give check advances to the other. Any such instructions will not be followed by us. However, any one of you may cancel your Credit Line under paragraph 29 "Cancellation by You". 5 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 Page 3 7. Limitations on Use of Checks. We reserve the right not to honor Credit Line checks in the following circumstances: (a) Your Credit Limit has been. or would be, exceeded by paying the check. (b) Your check is post-dated. If a post-dated check is paid and as a result any other check is returned or nol paid. we are not responsible. subject to any applicable law. (c) Your checks have been reported lost or stolen. Signer" (d) Your check is not signed by an "Authorized as defined below, (e) Your Credit Line has been terminated or suspended as provided in this Agreement or could be if we paid the check. · (0 You are in violation of any other transaction requirement or would be if we paid the check. | If we pay any check under these circumstances, you must repay us, subject to applicable laws, for the amount of the check. The check itself will be evidence of your debt to us together with this Agreement. Our liability, if any, for wrongful dishonor of a check is limited to your actual damages. Disbonor for any reason as provided in this Agreement is not wrongful dishonor. Signer" 8, Authorized Signers. The words "Authorized on checks as used in this Agreement mead and include cach person who (a) signs the application for this Credit Line, and (b) signs this Agreement - 9. Stop Payments. We do not honor stop payment orders for checks drawn against your Credit Line Account. You therefore should not use your Credit Line Account if you anticipate the need to stop payment. You agree that we will have no liability to you or to any other pany because we do not honor stop payment orders. 10. Lost Checks. If you lose your checks or someone is using them without your pennission, you·agree to notify us immediately. The fastest way to notify us is by calling us at (800) 922-9999. You also can notify us at Citizens Bank . , Consumer Loan Servicing, One Citizens Bank Way, Johnston, RI 02919 1l. Charges to Your Credit Line. We may charge your Credit Line to pay other fees and costs that you are obligated to pay under this Agreement, under the Mortgage or ander any other document related to your Credit Line. In addition, we may charge your Credit Line for funds required for continuing insurance coverage as described in the pa ragraph 13 (a), "Insurance" or as described in the Mortgage. We may also. at our option, charge your Credit Line to pay any costs or expenses to protect or perf®ct our security interest in your dwelling. These costs or expenses include, without limitation. payments to;cure defaults under any existing liens on your dwelling. If you do not pay your property taxes, we may , charge your Credit Line and pay the delinquent taxes. Any amount so charged to your Credit Line will be a credit advance and will decrease the funds avallable, if any, under the Credit Line. However, we have no obligation to provide any of the credit advances referred to in this paragraph. 12. Collateral. This Agreement is secured by a Mortgage dated 07/10/2019 to us On property located in NASSAU County, State or Commonwealth of NY , (the "Property"). We have the right. but are not required to take such action as is necessary to protect our Security Interest described in this paragraph. Any amounts we may pay in exercising our right to protect our Security . Interest must be paid by you on demand, and will bear interest at the ANNUAL PERCENTAGE RATE then applicable to your account. IMPORTANT NOTICE ABOUT YOUR REAL PROPERTY COLLATERAL If the deed to the property you are pledging as security for this loan includes more than one parcel of land, the mortgage you are requesting will be secured by ALL parcels described in your deed. If your deed contains more than one parcel of land and you do not want to pledge all of them as security for your loan you sh'ould contact your legal representative. 13 (a). Insurance. You must obtain insurance on the Property securing this Agreement through an company of your choice that is reasonably satisfactory to us. With respect to hazard (non-flood) insurance, the insurance shall be for the replacement cost of the buildings or appurtenances on the Property, You must name Citizens Bank, N.A. as its interests may appear as mortgagee on all required insurance policies. The insurance you maintain must provide for Ten (10) days notice of cancellation to us. If the Property is located in a designated Flood Zone, you must also maintain flood insurance on the Propeny in an amount we disclosed to you in writing before you entered into this Agreement. Subject to applicable law. if you fail to obtain or maintain insurance as required herein or in the Mortgage, we-may purchase insurance to protect our own interest, add the premium to your balance, pursue any other remedies available to us, or do any one or more of these things. In the event the Barrower fails to obtain and maintain any insurance on the Property required by the Lender, the Borrower understands and agrees thal the Lender may, at its option (unless required to do so by applicable law), obtain and maintain the required insurance and pay the premium(s) for such insurance, and either: (i) add the cost of the insurance to the unpaid principal balance owed under tlie Agreement (in which case the Borrower agrees lo repay the cost of the insurance in accordance with the repayment tenns of the Agreement). (ii) bill the Borrower separately (in which case the Barrower agrees to pay the bill immediately) or we will (iii) establish escrow pursuant to Section 13 (b) "Escrow". The Borrower agrees to pay interest on any such amounts at the imerest rate provided in the Agreement until such amounts are repaid in full The Borrower understands and acknowledges that any insurance " 6 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 - - Page 4 RECEIVED NYSCEF: 02/02/2024 obtained and maintained by the Lender may (i) only protect the interests of the Lender and any other creditor with a prior mortgage on the Property, and (ii) be more expensive than insurance obtained and maintained by the Borrower. 13 (b). Escrow. If lender determines that borrower has not paid property taxes or community associates "Insurance" dues/fees/assessments, or has not established insurance as required by Section 13 (a) Lender may establish an escrow account pursuant to the Real Estate Settlement Procedures Act, and require borrower to pay monthly amounts into said escrow account. Borrower agrees that the escrow account payment will be in addition to the payment amounts otherwise agreed to in this Agreement. 14. Right of Setoff, We have the right under the law to transfer funds heldin any deposit account that . any person who signs this Agreement has with us or an affiliated bank, to pay or reduce your obligations if you are in default under this Agreement or we terminate or accelerate your Credit Line Account You grant to us a contractual possessory security interest in, and hereby assign, convey, deliver, pledge, and transfer to us all right, title and interest in and to, your accounts with us (whether checking, savings, or some other account), including without limitation all accounts held-jointly with someone else and all accounts you may open in the future, excluding however all IRA, Keogh, and trust accounts. You authorize us, to the extent permitted by applicable law, to charge or set off all sums owing under this Agreement against any and all such accounts. 15. Periodic Statements. We will send you a periodic statement for all check advances made under this Agreement during the Draw Period and for all monthly payments due during the Repayment Period. The statement will show, among other things, payments and credits, check advances, FINANCE CHARGES, insurance, and other charges, your Previous Total Balance, and your New Total Balance. Your statement also will identify the Minimum Payment you must make for that billing period and the Payment Due Date. All periodic statements shall conclusively be considered to be correct and accepted by you unless we are notified in writing of any alleged errors within 60 days after receipt. 16. FINANCE CHARGES. You will pay a FINANCE CHARGE on the outstanding amount of the principal balance under your Credit Line, once each billing cycle during the Draw Period and the Repayment Period. The FINANCE CHARGE will begin to accrue on the date advances are posted to your Credit Line Account. There is no "grace period" which would allow you to avoid a FINANCE CHARGE on your Credit Line advances. FINANCE CHARGES do not accrue on any undisbursed proceeds. . . 17. Method Used to Determine the Balance on.Which the FINANCE CHARGE Will Be Computed. We figure the FINANCE CHARGE on your account by applying the daily periodic rate to the average daily balance of your Credit Line Account and then multiply by the number of days in the billing cycle. To get the average daily balance, we take the total beginning balance of your Credit Line Account cach day and add new advances and subtract the principal portion of any payn.1entsand credits. The beginning balance for the period is the New Principal Balance amount from your previous statement. To determine the principal portion of a payment, subtract any unpaid FINANCE CHARGES then insurance premiums (if any) and membership fees and other charges (if applicable). This gives us the daily principal balance each day. Then we add up all the daily principal balances for Ihe billing cycle and divide the total by the number of days in the billing cycle (the number of days since your last statement). This gives us the average daily balance. The average daily balance does not include FINANCE CHARGES, insurance premiums, membership fees or other charges. 18. How You May Compute the FINANCE CHARGES On Your Line of Credit Account. When the average daily balance has been computed, you multiply the average daily balance by the daily periodic rate which is arrived at by dividing the ANNUAL PERCENTAGE RATE by the number of days in the year. The result is multiplied by the number of days in the billing cycle. This figure is the FINANCE CHARGE assessedfor the billing cycle. 19. Periodic Rate and Corresponding ANNUAL PERCENTAGE RATE. We will determine the Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE as follows. We start with an independent index, (the "Index"), which is The Wall Street Journal Prime Rate, published daily in the Rates." listing of "Money We will use the Index value published on the last business day of each month for any ANNUAL PERCENTAGE RATE adjustment.If the Index is no longer available, we will choose a new Index and margin. The new Index will have an historical movement similar to the original (ndex and margin, and the new Index and margin will result in an ANNUAL PERCENTAGE RATE that is substantially similar to the rate in effect at the time the original index becomes unavailable. The index is not necessarily the lowest rate charged by us on our loans. To determine the Periodic Rate that will apply to your Credit Line Account, we add a margin to the value of the Index, then divide the value by the number of days in a year (daily). To obtain the ANNUAL PERCENTAGE RATE, we multiply the Periodic Rate by the number of days in a year (daily). This result is the ANNUAL PERCENTAGE RATE. The ANNUAL PERCENTAGE RATE includes only interest and no other costs. The Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Line will increase or decrease as the Index increases or decreases from time to time. Any increase in the Periodic . Rate will take the form of higher payment amounts. Adjustments to the Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE resulting from changes in the Index will take effect on the first day of the next billing cycle. The maximum ANNUAL PERCENTAGE RATI$ during the 7 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 02/02/2024 Page 5 Draw Period of your Credit Line will be 2 l.000 . The maximum ANNUAL PERCENTAGE RATE during the Repayment Period of your Credit Line will be 21.000 or the maximum rate allowed by applicable law. In no event will the ANNUAL PERCENTAGE RATE be less than 2.500% during the life of your Credit Line. As of the last business day of the calendar month before the date of this Agreement, the index was 5.50 % per annum. Based on that Index value, we estimate that the initial Periodic Rate and the corresponding ANNUAL PERCENTAGE RATE on your Credit Line for the first billing cycle will be as stated below: The initial Periodic Rate·and corresponding ANNUAL PERCENTAGE RATE actually in effect during the first billing cycle, which will be disclosed on your first periodic statement. may differ from these estimates if the Index changes between the date this Agreement was printed and the date you sign this Agreement. Margin Added ANNUAL Daily Periodic to Index PERCENTAGE RATE Rate 4.340 9.8400 0.0269 20. Annual Fee. There is no Annual Fee for the first year. Thereafter, a non-refundable Annual Fee of 550 will be charged to your Credit Line Account on each anniversary of your Credit Line, during th'e Draw Period. 21 (a). Late Charges. Depending on the state or commonwealth identified above. your late fee wil be calculated as follows: Date" Your payment will be late if it is not received by us within IS days of the "Payment Due shown on your periodic statement. If your payment is late. we may charge you 5.000% of the payment or $20.00, whichever is less. i 21 (b). PREPAY M ENT: If you pay off the entire balance and close your line of credit account before the·due date, you may be charged a fee as follows: If you pay off and close your line of credil account within three (3) years after the date of the Agreement. we may charge you, and you agree to pay us, a fee of 5350.00. 2 t (c). RETURNED CIIECK FEE: We may charge and you agree to pay a fee of $25.00 for each return of a dishonored check or other payment instrument 21 (d). Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Home Equity Line of Credit if, at origination, borrower clects to have payments automatically deducted each month from a Citizens Bank checking account the borrower designates. If we are unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12 - month period, Citizens Bank reserves the right to remove eligibility. 21 (c). Recording Fee. Upon termination and full payment of all obligations on your Credit Line , Account, we will charge you the fee required by the registry of deeds to record the discharge of the Mortgage. If the Property is located in Connecticut, then you are responsible for paying the recording fee directly to the registry ordeeds. 22. Termination and Acceleration. The entire unpaid balance of your Credit Line Account, including unpaid fees and FINANCE CHARGES, shall at our option become immediately due and payable and we can terminate your Credit Line Account by sending you notice, if any of the following occur: . (a) You have at any time in connection with this Credit Line Account, including your application for same. commined fraud or have made, or make at anytime, any material misrepresentation; . (b) Failure to make any payment under this Agreement; (c) Your action or inaction adversely affects the collateral for the Credit Line Account or our rights in the collateral. This can include, for example, failure to maintain required insurance, waste or destructive use of the Property, failure to pay taxes, failure to maintain adequate insurance for the Security, death of all persons liable on the Credit Line Account or the death of 8 of 22 FILED: NASSAU COUNTY CLERK 02/02/2024 01:32 PM INDEX NO. 601995/2024 NYSCEF DOC. NO. 3 Page 6 RECEIVED NYSCEF: 02/02/2024 any of the Borrowers if the collateral is adveSsely affected by such death, transfer of title or sale of the Property, the Property is taken through eminent domain, creation of a senior lien on the Property without our permission, foreclosure by the holder of a prior lien or the use of the dwelling for prohibited purposes if it subjects the Property to seizure. 23. Suspension or Reduction. In addition to any other rights we may have, (neither notice nor your agreement is required), we can suspend additional extensions of credit or reduce your Credit Limit during any period in which any of the following are in effect: (a) The value of the Property declines significantly below the Property's appraised value for purposes of this Credit Line Account. This includes, for example, a decline such that the initial difference between the credit limit and the available equity is reduced by fifty percent and may include a smaller decline depending on the individual circumstances; (b) We reasonably believe that you will be unable to fulfdi your payment obligations under your Credit Line Account due to a material change in your financial circumstances; (c) You are in default under any material obligations of this Credit Line Account. We consider all of your obligations to be material. Categories of material obligations include the events described above under paragraph 22, "Tennination and Acceleration", ob[igations to pay fees and charges, obligations and limitations on the receipt of credit advances, obligations conceming maintenance or use of the Property, obligations to pay and perform the terms of any other deed of trust, mortgage or lease of the Property, obligations to notify us and to provide documents or. infonnation to us (such as updated financial infonnation), obligations to comply with applicable laws (such as zoning restrictions), and obligations of any comaker. No default will occur until we mail or deliver a notice of default to you, so you can restore your right to credit advances; (d) Govemment action prevents us from imposing the ANNUAL PERCENTAGE RATE provided for under this Agreement, or impairs our security interest such that the value of ghe Property is less than I20 percent of the credit line; (e) We have been notified by govemmental authority that continued advances may constitute an . unsafe and unsound business practice. We may charge your account for appraisal and Credit Report fees we incur in investigating whether any condition pennitting us to suspend your credit privileges or reduce your credit limit continues to exist (f) The maximum ANNUAL PERCENTAGE RATE is reached. if your Credit Line is suspended or terminated, you must immediately destroy all Credil Line checks and any other access devices. Any use of checks or other access devices following suspension or tennination may be considered fraudulent. You will also remain liable for any further use of such checks or other Credit Line access devices not returned to us. 24. Change in Terms. We may make changes to the terms of this Agreement if you agree to the change in writing at that time, if the change will unequivocally benefit you throughout the remainder of your Credit Line Account, or if the change is insignificant (such as changes relating to our data processing systems). 25. Collection Costs. If you fail to abide by any terms of this Agreement, and if we are permitted to do so by applicable law, we may hire or pay someone else to help collect your Credit Line Account. You will pay af1reasonable collections costs, including reasonable attorney's fees incurred by us in the collection of amounts due under this Agreement to the extent not prohibited by applicable law. This includes, subject to any limits under applicable law, our legal expenses whether or not there is a lawsuit and legal expenses for bankruptcy proceedings (including effons to modify or vacate any automatic stay of injunction), appeals, and any anticipated post-judgment collection services. 26. Delay in Enforcement. Failure at any time by us to exercise any of our rights hereunder shall not constitute a waiver of our right to exercise the same at a later time. 27. Default. You will be in defauh under this Agreement if any of the following occurs, each of which constitutes a breach of a material obligation of yours under this Agreement: (a) You fail to make any payment when due or to pay any charge or fee when due; (b) Your action or failure to act adversely affects our security for your Credit Line Account or a right we have in the security; . . (c) A court determines th