Lightning Docs System Update 6.5.26
We have issued an update to the system that modified the following:
- As part of ongoing outside counsel reviews, we have made the following amendments that apply to Pennsylvania loans:
- “State of Pennsylvania” changed to “Commonwealth of Pennsylvania” throughout loan documents to conform to local practice.
- Reference in documents titled as “Cognovit [Insert Document Name]” changed to provide that the documents contain a “Warrant of Attorney to Confess Judgment.” These updates have been made to conform to local practice for the following documents: Security Instrument, Note, and Guaranty.
- Security Instrument
- Notice on top of page 1 updated to include “Fees, Costs” in amounts secured by future advances.
- New section added regarding future advances. Provides that Borrower may send written notice to Lender to limit certain future advances in accordance with local practice.
- Added reference in Future Advances to the Pennsylvania statute that provides lenders with greater protection for lien priority.
- Confession of Judgment – added that a Writ of Possession may be issued not only without a prior writ or proceeding, but also “without the necessity of filing a bond” which conforms to local practice. and allows for a more immediate issuance of a writ.
- Guaranty – Confession of Judgment section has been expanded to conform to local practice and provide lender greater protection.
- Addition of Acceleration Language in the Security Instrument: As part of our continued dedication to incorporate best practices to protect lenders in our documents, we have added a provision to the Uniform Covenants section of the Security Instrument providing a general statement that the Lender may accelerate the Loan during a continuing Event of Default.
- Indiana Notary Acknowledgment: We have removed the affirmation statement regarding Social Security Numbers from the Indiana notary acknowledgment for documents that provide an Indiana acknowledgment but are not recorded.
