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Figure 26.3DIRECT REDUCTIONMORTGAGE NOTEAccount No.$ 50,000.00 April 14, 20 --FOR VALUE RECEIVED we jointly and severally, promise to pay toPaul J. Kelleheror order the sum of Fifty Thousand ($50,000)––––––––––– Dollarsin or within twenty-five years from this date, with interest thereon at therate of 12 per cent per annum, payable in monthly installments of $ 526.62on the first day of each month hereafter, which payments shall first beapplied to interest then due and the balance thereof remaining applied to principal;the interest to be computed monthly in advance on the unpaid balance,together with such fines on interest in arrears as are provided.We reserve the right to make additional payments on account of saidprincipal sum on any payment date.Failure to pay any of said installments within thirty (30) days from the datewhen the same becomes due, notwithstanding any license or waiver of anyprior breach of conditions, shall make the whole of the balance of saidprincipal sum immediately due and payable at the option of the holder thereof.The makers, endorsers, and guarantors or other parties to this note, andeach of them, severally waive presentment, notice, and protest.Signed and sealed in the presence ofPROPER NOTICEThe holder of this note does not have to makeproper presentment or give proper notice tohold secondary parties liable. Why is this so?570 Unit 5: Using Your Purchasing PowerIf payment is made, the instrument must be handed over then andthere to the person paying the money. This is important because, if theparty paying does not get the instrument back, it might show up later inthe hands of a holder in due course, and the holder would have to payit again.Dishonor The party who presents a negotiable instrument is entitledto have the instrument paid or accepted. If the party to whom the instrumentis presented refuses to pay or to accept it, the instrument isdishonored . The instrument is also considered to be dishonored if the