Marvin Mandel, Governor                          1069

property paid by the vendor; (4) interest on unpaid balance owed
by the vendee at a rate not to exceed 6% per annum; (5) principal
balance owed by vendee.

(c)    Right to accelerate installments.—Every land installment
contract shall contain a provision that the vendee shall have the
right to accelerate any and all installment payments.

(d)    Collateral security; repairs or improvements to be made.—
Every land installment contract shall contain provisions stating
clearly (1) any collateral security taken for the vendee's obligation
under the contract, and (2) stating whether or not the vendor has
received any written notice from any public agency requiring any
repairs or improvements to be made to the property described in
any such contract.

(5) (E) Notice to buyer.—Every land installment contract shall
contain the following notice in 12-point bold type or larger, typewrit-
ing or in legible handwriting directly above the space reserved in
the contract for the signature of the buyer:

Notice to Buyer

You are entitled to a copy of this contract at the
time you sign it.

(f)    Same—Liability to default judgment.—Every land install-
ment contract shall contain the following notice in 12-point bold
type or larger, typewriting or in legible handwriting, directly be-
low the space reserved in the contract for the signature of the buyer
acknowledging the receipt of a copy of the contract: In the event of
default, the purchaser may be liable to a default judgment.

(g)    Amount of mortgage and payments when land is sold.—No
vendor shall place or hold any mortgage on any property sold under
a land installment contract in any amount greater than the balance
due under such contract, nor shall any mortgage thereon require
payments in excess of the periodic payments required under said
contract.

(h) Purchase money mortgage when forty percent of original cash
price is paid.—When 40% or more of the original cash price of the
property shall have been paid, the vendee shall have the right (if
no earlier period be fixed by the contract) to demand a conveyance
of the premises mentioned in the contract, on the condition that he exe-
cute a purchase money mortgage to the vendor, or to a mortgagee
procured by the vendee. When any mortgage is executed in pur-
suance of the vendee's demand for conveyance under this subsection,
the vendee shall be liable for such expense as title search, drawing
deed and mortgage, one half of cost of federal and State revenue
stamps, notary fees, recording, reasonable building association fees,
judgment reports and tax Ken report. In any such mortgage the
required periodic principal and interest payments to be made by the
mortgagor shall not exceed the periodic principal and interest pay-
ments otherwise required by the land installment contract, except
with the consent of the mortgagor; such consent may be evidenced
by the execution of a mortgage. Such mortgage shall contain the
usual covenants by the mortgagor for the payment of the mortgage
debt, the taxes on the mortgaged property and the ground rent, if