CITIZENS BANK OF CANADA
SCHEDULE “B”


Additional Provisions


1.   PROVIDED the Charge is in good standing, the Mortgage is assumable with qualification (except in the Province of Alberta).

2. PROVIDED that the Chargor, when not in default hereunder, shall have the privilege of making one extra payment equal to the monthly payment amount shown in the Charge/Mortgage of Land once per mortgage year*.  This privilege is non-cumulative.

3. PROVIDED that the Chargor, when not in default hereunder, shall have the privilege of increasing the monthly payment shown in the Charge/Mortgage of Land by up to twenty percent (20%) once per mortgage year*.  This privilege is non-cumulative.

4. PROVIDED that the Chargor, when not in default hereunder, shall have the privilege of prepaying once per mortgage year*, up to twenty percent (20%) of the Principal Amount shown in the Charge/Mortgage of Land without notice or bonus.  This privilege is non-cumulative. 

*       The Mortgage year begins from the interest adjustment date on the loan.

5. PROVIDED the Charge is in good standing, the Chargor shall have the privilege of prepaying the loan in full, upon payment of the greater of:

Three (3) months interest at the interest rate set out in the Charge; or, the interest rate set out in any subsequent renewal agreement(s) to the Charge;

and

The interest rate differential based on the difference between the interest rate shown in the Charge; or, the interest rate set out in any subsequent renewal agreement(s) relating to the Charge and the current rate applicable for the term remaining on the Charge, all as determined by Citizens Bank of Canada in its sole discretion.

N. B. For prepayment privileges on C.M.H.C. insured mortgage loans, please refer to the Standard Charge Terms registered for C.M.H.C. loans in your Province.
6.
a) If the Property is the principal residence of the Chargor; the Chargor is not in default; there are no subsequent encumbrances on the title to the Property; and the Chargor completes a new mortgage loan application which is approved by the Bank and satisfies the Bank’s lending requirements, the Chargor may do one of the following:

(ii) transfer the outstanding principal amount and interest rate set out in this Charge to a new property purchased by the Chargor and to be used as his principal residence;

(iii) transfer the outstanding principal amount and interest rate set out in this Charge to a new property purchased by the Chargor and to be used as his principal residence and increase the principal amount of this Charge.

(b) The interest rate set out in this Charge (“Current Rate”) will continue to apply to the Principal Amount outstanding as of the date of the written approval to the foregoing from the Bank.  Any increase in the Principal Amount will bear interest at the Prevailing Rate as defined in subsection 1(e) below. 

(c) For the purposes of subsections 1(a)(i) and (ii), a new Charge (“New Charge”) must be registered against title to the New Lands.  The New Charge will secure the outstanding balance and the increased Principal Amount at a rate which will blend the Current Rate and the Prevailing Rate (the “New Interest Rate”), for a term commencing on the date set out in the Bank’s written approval and expiring on the Balance Due Date of this Charge.  The New Interest Rate will be set out in the Bank’s written approval.

(d) The Chargor will pay all costs, charges and expenses of and incidental to the approval, taking, preparation, execution and registration of the New Charge.

(e) The “Prevailing Rate” at the time of prepayment means the rate at which the Bank would then lend to the Chargor on the security of a first Charge on the Property charged, or, if applicable, on the security of a first Charge on the “New Lands” for a term commencing on the date of prepayment and expiring on the Balance Due Date of this Charge.




The undersigned acknowledges receiving a copy of this Schedule

Date_________________


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Borrower(s)

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Guarantor(s)
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