This Mortgage Agreement is made and entered into on the date of ______________________________ (“Effective Date”), by and between the following parties:
______________________________ with a mailing address of ____________________________________________________________ (“Borrower”) and
______________________________ with a mailing address of ____________________________________________________________ (“Lender”) In consideration of the premises and the mutual covenants and agreements contained herein, the parties hereby agree as follows:
Prepayments will first be applied to any accrued interest calculated at the Interest Rate, and second to the Principal Amount.
If the Borrower fails to maintain any of the coverage described above, then Lender may obtain insurance coverage, at Lender's discretion and Borrower's expense. 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. However, any amounts paid by 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 Lender to Borrower requesting payment.
All insurance policies must include a standard mortgage and/or trust clause and will name Lender as mortgagee and/or as an additional loss payee, stating that any loss is payable to the Lender. Borrower further agrees to generally assign rights to insurance proceeds to the Lender up to the amount of the outstanding loan balance. If, at the request of the Lender, Borrower will provide Lender a copy of the insurance policy and all receipts of paid premiums and renewal notices.
In the event of loss, the Borrower must give prompt notice to the insurance carrier and to the Lender. Unless Lender and 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.
The Borrower shall purchase and maintain mortgage insurance protecting the Lender against the nonpayment of, or default on, the Laon as required by the Lender.
Nothing in this Section shall affect the Borrower's obligation to make payments on the Principal Amountand any accrued interest as required under the Agreement.
(a) The failure by Borrower to pay when due any installment of principal of, or interest on, the Note or any other sum due under this Mortgage Agreement;
(b) The failure by Borrower to observe or perform any other covenant or agreement contained in this Mortgage Agreement;
(c) The making by Borrower of any assignment for the benefit of creditors or the application by Borrower for the appointment of a receiver or trustee for it or for all or any substantial part of its property;
(d) The filing by Borrower of a petition in bankruptcy or any petition or application seeking reorganization, arrangement, adjustment or composition of or in respect of Borrower under the Bankruptcy Code or under any other insolvency law now or hereafter in effect;
(e) The issuance of execution or attachment against a substantial part of the property of Borrower which is not discharged within thirty (30) days;
(f) The occurrence of any event which results in the appointment of a receiver or trustee for a substantial part of the property of Borrower;
(g) The making by Borrower of any false representation or warranty under this Mortgage Agreement;
(h) The making by Borrower of any false representation or warranty under the Note; or (i) The occurrence of any event which results in a material adverse change in the financial condition of Borrower.
(a) Foreclosure of the Mortgage by judicial proceeding or by nonjudicial foreclosure in accordance with the provisions of the Uniform Commercial Code as now in effect, or as the same may be amended from time to time, in which event Lender may also recover all reasonable costs and expenses of such foreclosure, including, without limitation, reasonable attorneys' fees and costs;
(b) Enter upon and take possession of the Property or any part thereof, and for such purpose Lender, or any of its agents or employees, may enter upon the Property or any part thereof at any time without notice or demand, and may exclude or eject therefrom Borrower, or any other person claiming through or under it, and Borrower and all other persons claiming through or under it shall forthwith deliver up to Lender possession of the Property or any part thereof;
(c) Collect and receive all rents, issues and profits arising from the ownership or possession of the Property, and may give notice to the lessees, if any, of Borrower to make all future rent payments to Lender;
(d) Make such repairs, improvements, alterations or additions to the Property as Lender, in its sole discretion, may deem necessary or desirable, and charge and collect from Borrower the cost thereof;
(e) Make application to a court of competent jurisdiction for the appointment of a receiver or trustee to take charge of the Property or any part thereof, for the purpose of making repairs, improvements, alterations or additions thereto and collecting the rents, issues and profits therefrom; or
(f) Pursue any other remedy provided by law.
The exercise by Lender of any one or more of the foregoing remedies shall not be construed as an election to forego the pursuit of any other remedy. The remedies provided in this Mortgage Agreement are cumulative and not exclusive. No delay on the part of Lender in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any waiver on the part of Lender of any right, power or remedy occur, except in the specific instance for which such waiver is given.
The Borrower must notify the Lender of all amounts to be paid under this Section. If the Lender requires, the Borrower must provide receipts evidencing such payments to the Lender. If the Borrower does not make timely payments, the Lender can, at their discretion, make any and all past due payments for Escrow Items and the Borrower will be obligated to repay the Lender for any such amount. The Lender may waive the Borrower's obligation to pay the Lender for any and all Escrow Items at any time by providing written notice to the Borrower. If such waiver occurs, the Borrower may pay directly, when and where payable, the amounts due for any and all Escrow Items. If the Borrower is obligated to pay Escrow Items directly, and the Borrower fails to make payments on time, then the Lender may exercise its rights under this Section and pay for any such amounts and Borrower will be obligated to repay Lender for any such amount.
The Borrower will collect and hold the Funds in accordance with the Real Estate Settlement Procedures Act (the "RESPA"). The Lender will estimate the amount of Funds due in accordance with Applicable Law. If there is a surplus of Funds held in escrow, as defined under RESPA, the Lender must provide to Borrower the excess funds in accordance with RESPA. If there is a shortage or deficiency of Funds held in escrow, as defined under RESPA, Lender must notify Borrower in writing and Borrower must pay to Lender the amount necessary to make up for the shortage or deficiency.
Upon payment in full of all Funds relating to Escrow Items, the Lender will promptly refund to the Borrower any excess Funds held by the Lender.
The Borrower will give the Lender a reasonable time after payment in which to prepare and issue the discharge.
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 begin foreclosure proceedings.
The Lender will at all times retain the right to required 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 to enforce acceleration upon default.
Any delay in the exercising of this right will not constitute a waiver to exercise this right at a later date should the Borrower remain in default or subsequently default again in the future.
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.
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.
This Agreement supersedes any prior written or oral agreements between the Parties.
If a court finds that any provision of this Agreement 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.
IN WITNESS WHEREOF, the Parties hereto, individually, or by their duly authorized representatives, have executed this Agreement as of the first date written above.