The following statement must be signed at the time of the loan application by both the borrower and lender on loans that are insured or guaranteed by the United States veterans' administration:

 

I understand that the veterans' administration may attempt to hold me liable for the

guarantee it offers the lending institution on this mortgage. I understand that it may be

alleged that I may remain liable for the amount guaranteed by the veterans'

administration if this mortgage is foreclosed or if the property is sold by me without first

obtaining an approved release of liability from the veterans' administration. I also

understand that it may be alleged that North Dakota law governing deficiency judgments

may not apply to the collection of loans guaranteed by the veterans' administration. By

signing this statement, I am indicating that the contents of this statement have been

explained to me by a loan officer representing the lending institution offering this

mortgage loan.

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