Mortgage Deed - Template Form to Create Word & PDF Pro · US-law
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MORTGAGE DEED
State of ________
BACKGROUND.
A. This Mortgage Deed (the “Mortgage”) is made effective as of ________ (the “Effective Date”) by and between the following party borrowing the money (the “Borrower”):
________
of
________
and the following party lending the money (the “Lender”):
________
of
________
The Borrower and the Lender are referred to collectively as the “Parties” and individually as a “Party.”
B. WHEREAS, the Borrower, the Lender, and ________, acting as guarantor, entered into a Loan Agreement dated ________ in the sum of $________ (________) (the “Principal Amount”), together with interest at the rate of ________% per annum computed on the outstanding balance, along with any applicable fees (all together, the “Loan”);
C. WHEREAS, to secure the performance of all the terms, covenants, agreements, conditions, and obligations of the Loan and this Mortgage, the Borrower wishes to grant to the Lender its right, title, and interest in the real property located at the following address (the “Property”):
________
and identified by parcel/tax identification number:
________
Said Property is more fully described by the legal description as follows:
________
NOW THEREFORE, in consideration of the Loan made by the Lender to the Borrower, and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lender hereby agree as follows:
I. GRANT.
1. The Borrower hereby grants, conveys, mortgages, and warrants to the Lender all right, title, and interest in the Property described above, including all buildings, improvements, fixtures, easements, appurtenances, rents, and profits now or hereafter existing thereon, as security for the repayment of the Loan and the performance of the covenants and agreements set forth in this Mortgage.
II. PAYMENT.
2. The Borrower, for value received, promises to pay to the Lender the Principal Amount and the accrued interest and any applicable fees on the terms outlined in this Mortgage or in any amendment, extension, or renewal of this Mortgage, and any additional amounts secured by this Mortgage on the terms elsewhere provided for such debts and liabilities.
3. The Borrower agrees to pay the Principal Amount with interest before and after maturity and before and after default at the rate of ________% per annum (the “Interest Rate”). The Interest Rate shall be calculated from the Effective Date on ________ (the “Adjustment Date”) and accrues until the whole of the Principal Amount is paid to the Lender.
4. The Loan will be repaid on the following terms:
a. It is agreed that a payment in the amount of $________ (________) will be paid by the Borrower to the Lender annually on ________ of each year.
b. The Borrower will continue to make payments according to this schedule until ________ (the “Due Date”), at which point the Borrower will be required to pay a balloon payment of $________ (________), which constitutes the remaining balance of the Principal Amount and accrued interest due on the Principal Amount.
c. THE BORROWER UNDERSTANDS THAT THE PAYMENT OF THE ABOVE INSTALLMENT PAYMENTS MAY NOT FULLY AMORTIZE THE PRINCIPAL BALANCE OF THE LOAN, AND THEREFORE, A BALLOON PAYMENT MAY BE DUE ON THE DUE DATE.
5. Any unpaid Principal Amount after the Due Date listed above shall accrue interest at a rate of ________% per annum until paid in full, provided that in no event shall the rate of interest charged exceed the maximum rate permitted by Applicable Law.
6. All payments shall be applied first to payment of accrued interest and any remainder shall be applied to payment of the Principal Amount.
III. PREPAYMENT.
7. When not in default, the Borrower may prepay, without penalty, all or a portion of the Principal Amount and any accrued interest earlier than it is due (i.e., make payment prior to the time that it is due).
8. Partial prepayment will not postpone the due date of any subsequent payment or change the payment amount unless the Lender otherwise agrees in writing.
9. Prepayments will first be applied to any accrued interest calculated at the Interest Rate, and second to the Principal Amount.
IV. FUNDS FOR ESCROW ITEMS.
10. The Borrower will pay the Lender, on the day payment is due under this Mortgage, until the Principal Amount is paid in full, a sum (the “Funds”) to provide for payment of: (a) any taxes, assessments, or other items which can take priority over this Mortgage as a lien or encumbrance on the Property; (b) lease payments on the Property, if any; and (c) premiums for any and all insurance, including Mortgage Insurance required by the Lender. These items will be called “Escrow Items.”
13. Upon payment in full of all sums secured by this Mortgage, the Lender will promptly refund to the Borrower any excess Funds held by the Lender.
V. ADDITIONAL CHARGES AND ENCUMBRANCES.
14. The Borrower must pay all taxes, assessments, charges, fines, and all other impositions attributable to the Property, and all trusts, liens, and other encumbrances on the Property.
15. To the extent that these items are Escrow Items, the Borrower will pay them in the manner provided in the Section titled “FUNDS FOR ESCROW ITEMS.”
VI. DISCHARGE.
16. When the Borrower pays the Principal Amount, any accrued interest, and all other amounts secured by this Mortgage in full and notifies the Lender in writing and requests a discharge of this Mortgage, the Lender will discharge this Mortgage and execute and record, at the Borrower’s expense, a satisfaction or release of this Mortgage as required by Applicable Law.
17. The Borrower will give the Lender a reasonable time after payment in which to prepare and issue the discharge.
VII. USE OF PROPERTY.
18. The Borrower will occupy, establish, and use the Property in accordance with all applicable laws, ordinances, regulations, and requirements of any governmental authority having jurisdiction over the Property.
19. The Borrower will not make any change in the use of the Property, nor permit any change to be made, without the prior written consent of the Lender.
20. The Borrower will comply with all laws, ordinances, regulations, covenants, conditions, and restrictions affecting the Property and will not commit, suffer, or permit any act to be done in or upon the Property in violation of any such laws, ordinances, regulations, covenants, conditions, or restrictions.
VIII. PROPERTY INSURANCE.
21. The Borrower must keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term “extended coverage,” and any other hazards including, but not limited to, earthquakes and floods, for which the Lender requires insurance. The insurance carrier providing the insurance will be chosen by the Borrower; however, the Lender will have the right to disapprove the Borrower’s choice, which right may not be exercised unreasonably.
22. If the Borrower fails to maintain any of the coverage described above, then the Lender may obtain insurance coverage, at the Lender’s discretion and the Borrower’s expense. The Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the cost of the insurance that the Borrower could have obtained. Any amounts paid by the Lender will become additional debt of the Borrower and secured by this Mortgage. The amounts paid by the Lender will bear interest at the Interest Rate from the date of payment and will be payable, with such interest, upon notice from the Lender to the Borrower requesting payment.
23. All insurance policies must include a standard mortgage and/or trust clause and will name the Lender as mortgagee and/or as an additional loss payee, stating that any loss is payable to the Lender. The Borrower further agrees to assign rights to insurance proceeds to the Lender up to the amount of the outstanding Loan balance. At the request of the Lender, the Borrower will provide the Lender a copy of the insurance policy and all receipts of paid premiums and renewal notices.
24. In the event of loss, the Borrower must give prompt notice to the insurance carrier and to the Lender. Unless the Lender and the Borrower otherwise agree in writing, any insurance proceeds must be applied to restoration or repair of the Property, if the restoration or repair is economically feasible. If the restoration or repair is not economically feasible, the insurance proceeds will be applied to the remainder of this Mortgage, whether or not the balance of the Mortgage is then due, with the excess, if any, paid to the Borrower.
IX. MORTGAGE INSURANCE.
25. The Borrower shall purchase and maintain mortgage insurance protecting the Lender against the nonpayment of, or default on, the Loan as required by the Lender.
26. Nothing in this Section shall affect the Borrower’s obligation to make payments on the Principal Amount and any accrued interest as required under this Mortgage and the Loan.
X. REPAIR AND MAINTENANCE OF THE PROPERTY.
27. The Borrower will maintain the Property in good order and condition and will promptly make all necessary repairs, replacements, and improvements.
28. The Borrower will not allow any part of the Property to become or remain vacant without the written consent of the Lender.
29. The Borrower will not commit waste and will not remove, demolish, or materially alter the Property or any part of it without prior written consent from the Lender.
30. If the Borrower, or anyone claiming under the Borrower, neglects to keep the Property in good condition and repair, commits any act of waste on the Property, or does anything by which the value of the Property is thereby diminished, of all of which the Lender will be the sole reasonable judge, the Lender may, but is not obligated to, enter the Property and effect such repairs or work as it considers necessary.
XI. HAZARDOUS SUBSTANCES.
31. The Borrower will not use, store, release, deposit, recycle, or permit the presence of hazardous substances on the Property, generally accepted items for residential use excepted, which includes but is not limited to asbestos, PCBs, radioactive materials, gasoline, kerosene, or other flammable petroleum products (the “Hazardous Substances”), as such substances are defined under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. § 9601 et seq., and other applicable federal, state, and local environmental laws.
32. The Borrower is prohibited from performing any acts on the Property involving any Hazardous Substances that would materially affect the value of the Property or would require clean-up or remedial action under federal, state, or local law and codes.
XII. DEFAULT.
33. The following events constitute a default of this Mortgage:
a. The Borrower’s failure to pay the Principal Amount or any accrued interest when such payments are due;
b. The Borrower’s failure to perform or comply with any of the terms and conditions or any obligations or responsibilities due under this Mortgage;
c. The Borrower has given or made, at any time during the loan process, any materially false, misleading, or inaccurate information or statements to the Lender or any other party under this Mortgage in connection with the Loan;
d. If any action or proceeding, whether civil or criminal, is begun that, in the Lender’s reasonable judgment, could result in forfeiture of the Property, or any other material impairment of the Lender’s interest in the Property or rights under this Mortgage;
e. If a lien is registered against the Property, or if default occurs under any other lien or encumbrance existing against the Property;
f. The Borrower abandons or fails to occupy the Property;
g. The Property or any material part of the Property is expropriated or condemned.
XIII. ACCELERATION.
34. If at any time the Borrower should be in default under this Mortgage, the Lender must give notice to the Borrower. The notice must specify: (a) the default; (b) the action required to cure the default (if allowable); (c) a date, not less than 30 days from the date of the notice, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Mortgage and sale of the Property.
35. If the default is not cured on or before the date specified in the notice, the Lender at its option may require immediate payment in full of all sums, including the Principal Amount, interest, and all other amounts secured by this Mortgage. If the default is cured, the Mortgage will be reinstated. If the default is not cured, the Lender may invoke the power of sale and/or begin foreclosure proceedings, subject to any right of reinstatement or redemption afforded the Borrower under Applicable Law.
36. The Lender will at all times retain the right to require immediate payment in full in the event of default. Any forbearance on the part of the Lender upon default, which includes but is not limited to acceptance of late payment, acceptance of payment from third parties, or acceptance of payments less than the amount due, will not constitute a waiver of the right to enforce acceleration upon default.
XIV. POWER OF SALE.
37. To the extent permitted by Applicable Law, in the event of default under this Mortgage, the Lender may at its option foreclose and force a sale of the Property by exercise of the power of sale herein granted, without a judicial proceeding. Where non-judicial foreclosure is not permitted by Applicable Law, the Lender shall foreclose by judicial proceeding.
38. Any delay in the exercising of this right will not constitute a waiver of the right to exercise this right at a later date should the Borrower remain in default or subsequently default again in the future.
XV. REMEDIES ON DEFAULT.
39. The Lender will have the right to invoke all remedies permitted under Applicable Law, whether or not such remedies are expressly granted in this Mortgage, including but not limited to any foreclosure proceedings.
40. If the Lender invokes the power of sale, the Lender or its agent will execute a written notice of the event of default and the Lender’s election to sell the Property. The Lender or its agent will mail copies of the notice as prescribed by Applicable Law to the Borrower and other persons required by Applicable Law.
41. The Lender or its agent will give public notice of sale in the manner provided by Applicable Law.
42. After the time required by Applicable Law, the Lender or its agent, without demand on the Borrower, will sell the Property at public auction to the highest bidder, at the time and place and subject to the terms indicated in the notice of sale. The proceeds of the sale shall be applied in the order required by Applicable Law, including to the costs and expenses of sale, reasonable attorney’s fees, the sums secured by this Mortgage, and any excess to the person or persons legally entitled to it.
43. The Lender or its agent may postpone the sale of the Property by public announcement at the time and place of any scheduled sale.
XVI. PROTECTION OF LENDER’S INTEREST.
44. If at any time the Borrower fails to perform the covenants and agreements under this Mortgage, or if there is a legal proceeding that significantly affects the Lender’s interest in the Property, or if the Borrower has abandoned the Property, then the Lender may do and pay for whatever is reasonable or appropriate to protect the Lender’s interest in the Property and/or rights under this Mortgage, which includes, but is not limited to:
(a) Paying any sums secured by a lien which has priority over this Mortgage;
(b) Appearing in court;
(c) Paying reasonable attorney’s fees to protect its interest in the Property and/or rights under this Mortgage; and
(d) Paying for reasonable costs to repair and maintain the Property.
45. The Lender will at all times retain the right to take action under this Section. However, the Lender does not have to do so and is not under any duty or obligation to do so. It is agreed that the Lender will not incur any liability for not taking any or all actions to perform such tasks. Furthermore, any amounts paid by the Lender will become additional debt of the Borrower secured by this Mortgage and will bear interest at the Interest Rate from the date of disbursement.
XVII. ASSIGNMENT.
46. No Party shall have the right to transfer or assign, in whole or in part, any or all of their obligations and rights hereunder without the prior written consent of the other Party.
47. Subject to the above, the rights and obligations of the Parties shall inure to the benefit of and be binding upon their respective successors in interest, heirs, and assigns.
XVIII. ENTIRE AGREEMENT.
48. This Mortgage contains the entire agreement of the Parties with respect to the subject matter hereof, and there are no other promises or conditions in any other agreement, whether oral or written, concerning the subject matter of this Mortgage, except for the Loan Agreement referenced herein.
49. This Mortgage supersedes any prior written or oral agreements between the Parties concerning the subject matter hereof.
XIX. SEVERABILITY.
50. If any provision of this Mortgage will be held to be invalid or unenforceable for any reason, the remaining provisions will continue to be valid and enforceable.
51. If a court finds that any provision of this Mortgage is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision will be deemed to be written, construed, and enforced as so limited.
XX. AMENDMENT.
52. This Mortgage may be modified or amended in writing only if the writing is signed by the Party obligated under the amendment.
XXI. GOVERNING LAW.
53. This Mortgage shall be construed in accordance with the laws of the State of ________, without regard to its conflict of laws principles, except to the extent governed by applicable federal law.
XXII. NOTICE.
54. Any notice or communication required or permitted under this Mortgage shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraphs of this Mortgage or to such other address as one Party may have furnished to the other in writing.
XXIII. WAIVER OF CONTRACTUAL RIGHTS.
55. The failure of either Party to enforce any provision of this Mortgage shall not be construed as a waiver or limitation of that Party’s right to subsequently enforce and compel strict compliance with every provision of this Mortgage.
IN WITNESS WHEREOF, the Parties hereto, individually or by their duly authorized representatives, have executed this Mortgage as of the Effective Date first written above.
EXECUTION:
_________________________________
________, Borrower
_________________
Date
_________________________________
________, Lender
_________________
Date
BORROWER ACKNOWLEDGEMENT
State of ________
County of ________
On ________ before me, ________, Notary Public, personally
appeared ________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
__________________________________ (notary seal)
Notary Public
__________________________________
My Commission Expires
LENDER ACKNOWLEDGEMENT
State of ________
County of ________
On ________ before me, ________, Notary Public, personally
appeared ________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signature on the instrument the person, or the entity on behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
__________________________________ (notary seal)
Notary Public
__________________________________
My Commission Expires
PREPARED BY / RETURN TO
This instrument was prepared by: ________, ________.
After recording, return to: ________, ________.
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