The mortgagee clause is a provision in a mortgage agreement that protects the lender's interest in the property by ensuring they are named as a beneficiary of insurance policies on the property. This clause guarantees that the lender will receive compensation for damages or losses to the property in cases covered by insurance, even if the homeowner commits fraud or other offenses.
The Mortgagor hereby irrevocably agrees: It will provide mortgage guarantee for the Debtor’s repayment of its debts under the master contract for the Mortgagee with the property under mortgage (hereinafter referred to as “the collateral”) as agreed in Article 9.
WITH RESPECT to any portion of the Mortgaged Property which is not real estate under the laws of the State of Connecticut, Mortgagor hereby grants, transfers, assigns, bargains, sells and conveys a security interest in the same to Mortgagee for the purposes set forth hereunder and Mortgagee shall be vested with all rights, power and authority granted hereunder or by law to Mortgagee with respect thereto.
All Leases executed after the date of this Mortgage shall provide that such Leases are subordinate to this Mortgage and that the lessees thereunder agree to attorn to Mortgagee; provided, however, that nothing herein shall affect Mortgagee's right to designate from time to time any one or more Leases as being superior to this Mortgage, and Mortgagor shall execute and deliver to Mortgagee, and shall cause to be executed and delivered to Mortgagee from each tenant under such Lease, any instrument or agreement as Mortgagee may deem necessary to make such Lease superior to this Mortgage. Upon request, Mortgagor shall promptly furnish Mortgagee with executed copies of all Leases.
This Mortgage is upon the STATUTORY CONDITION, upon the breach of which or any covenant, agreement, or condition of Mortgagor under any of the Loan Documents or Hedging Contract, Mortgagee shall have the STATUTORY POWER OF SALE.
LIENS. Except for liens and encumbrances, if any, listed on Exhibit B attached hereto or otherwise consented to in writing by or granted to the Mortgagee (“Permitted Encumbrances”), the Mortgagor will keep the Mortgaged Property free from all liens (other than liens for taxes and assessments not yet due and payable) and encumbrances of every nature whatsoever heretofore or hereafter arising and, upon written demand of the Mortgagee, the Mortgagor will pay and procure the release of any such lien or encumbrance. The consent of the Mortgagee to any lien or encumbrance not listed on Exhibit B shall not be unreasonably withheld.
Mortgagee and its agents and representatives shall have the right at any reasonable time, after giving reasonable notice to Mortgagor, to enter and visit the Property for the purposes of performing appraisals, observing the Property, taking and removing environmental samples, and conducting tests on any part of the Property. Mortgagor shall reimburse Mortgagee on demand for the costs of any such environmental investigation and testing. Mortgagee will make reasonable efforts during any site visit, observation or testing conducted pursuant this Paragraph to avoid interfering with Mortgagor's use of the Property. Mortgagee is under no duty, however, to visit or observe the Property or to conduct tests, and any such acts by Mortgagee will be solely for the purposes of protecting Mortgagee's security and preserving Mortgagee's rights under this Mortgage.
The Mortgagor shall carry insurance against such risks, with such companies, and in such amounts as shall be satisfactory to Mortgagee (including but not limited to, hazard insurance and flood insurance, if the Mortgaged Property is located within a flood hazard area, and wind storm insurance); each policy shall be in a form satisfactory to Mortgagee with standard mortgagee clauses making all loss payable to Mortgagee. The Mortgagor shall promptly pay all premiums therefor and deliver to Mortgagee all such policies of insurance. All insurance policies shall provide that notice of non-renewal or cancellation must be given to Mortgagee at least thirty (30) days before such non-renewal or cancellation.
Payment due dates and late charge assessments are based upon the payment being received by the date prescribed in the note and/or mortgage at the Mortgagee’s address provided in the Note and/or Mortgage, or such other address as may be specified. Mortgagor may remit payment to Mortgagee in any reasonable manner in accordance with normal industry practices which may include first class mail or overnight carrier. However, Mortgagor assumes all responsibility for delivery of said documents to Mortgagee. Mortgagor expressly agrees that payment is not deemed made until such time as payment is actually received by the Mortgagee. The entity making delivery is expressly deemed an agent of Mortgagor and is not an agent of Mortgagee.
Rights of Mortgagee. If Mortgagor fails to pay when due any Impositions when so required by this Mortgage, or if an Event of Default occurs under this Mortgage, Mortgagee may at its option (but shall not be obligated to) pay such Impositions or cure such default. If Mortgagor fails to pay or perform any of its obligations under this Mortgage with respect to the Property, Mortgagee at its option may (but shall not be obligated to) pay or perform any such obligations of Mortgagor. Mortgagee may enter upon the Property for the purpose of performing any such act, or to inspect the Property. All Impositions paid by Mortgagee and all monies expended by Mortgagee in paying or performing any such obligations of Mortgagor, or curing any Event of Default (including legal expenses and disbursements), shall bear interest at a floating rate per annum equal to six percent (6%) in excess of the Prime Rate of Fifth Third Bank then in effect, and such interest shall be paid by Mortgagor upon demand by Mortgagee and shall be additional Indebtedness secured by this Mortgage.
As of this date, Mortgagor and made and delivered a Promissory Note (the “Note”) to Mortgagee in the initial principal amount of [$]. As security for repayment of all sums due under the Note, Mortgagee has required and Mortgagor has agreed to grant to Mortgagee this mortgage on a parcel of property located in Grand Traverse County, Michigan as more particularly described on the attached Exhibit A.
Mortgagee shall be entitled to declare the whole amount of the Secured Indebtedness immediately due and payable without notice, and Mortgagee may then proceed by suit or suits in equity or at law to foreclosure this Mortgage pursuant to the laws of the State of New Mexico. If this Mortgage is foreclosed, the redemption period after judicial sale shall be one (1) month in lieu of nine (9) months. In the event of a judicial sale hereunder, Mortgagee may become the purchaser of the Mortgaged Property, or any part thereof. In the event of foreclosure, Mortgagee shall be entitled to the appointment of a receiver without regard to the solvency of Mortgagor or the value of the Mortgaged Property.
Mortgagor, as debtor, grants to Mortgagee, as secured party, a security interest in any and all personal property, including all goods, equipment, intangibles and other portions of the Real Property that may be construed to be personal property whether now existing or hereafter acquired, now or at any time hereafter attached to, erected upon, situated in or upon, forming a part of, appurtenant to, used or useful in the construction or operation of, or in connection with, or arising from the use or enjoyment of all or any portion of, or from any Lease or other agreement pertaining to, the Real Property...
When the Mortgagee disposes of the collaterals according to this contract, the Mortgagor shall not set any obstacles or take any actions that may hinder or delay the Mortgagee’s disposal of the collaterals. The Mortgagor undertakes to actively assist the Mortgagee upon the Mortgagee’s request to enable the Mortgagee to realize its mortgage rights as soon as possible.
To the extent permitted by applicable law, each right, power and remedy herein conferred upon Mortgagee is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter provided by law or in equity, and each and every right, power, and remedy herein set forth or otherwise so existing may be exercised from time to time concurrently or independently and as often and in such order as may be deemed expedient by Mortgagee.
If the Mortgagor falls under any of the following circumstances, it shall make full compensation for any economic losses incurred by the Mortgagee therefrom: 1. The Mortgagor conceals any fact that the collaterals are co-owned, disputed, attached, supervised, detained, repeatedly mortgaged, leased, have delinquent taxes, or project payment in arrears, etc. 2. The Mortgagor disposes of the collaterals without the written consent of the Mortgagee. 3. Establishing the right of residence on the mortgaged property without the consent of the Mortgagee. 4. The Mortgagor commits any other acts that adversely affect the exercise of the mortgage rights by the Mortgagee.
This Mortgage shall also be considered to be and shall be construed as a security agreement and a fixture filing with respect to any and all of the items and types of the Collateral herein described or referenced which may be subject to a security interest as a fixture pursuant to the Alabama Uniform Commercial Code, and Mortgagor hereby grants and pledges to Mortgagee a first and prior continuing security interest in and to Collateral, including the fixtures attached to and used exclusively in the operation and maintenance of the Mortgaged Premises (including all proceeds and products thereof), whether now owned or hereafter acquired but excluding personal property or fixtures used in the manufacturing business conducted on the Mortgaged Premises. Mortgagee shall be entitled to exercise any and all rights that it may have hereunder, under the Alabama Uniform Commercial Code with respect to the Collateral.
Mortgagor warrants and represents to Mortgagee that all financial statements and other information concerning Mortgagor, the premises, and any guarantor of the Indebtedness, heretofore or hereafter furnished to Mortgagee, are and shall be true and correct in all material respects; that the execution, delivery, and performance of this Mortgage by Mortgagor will not violate any law, rule, judgment, order, agreement or instrument binding upon Mortgagor nor require the approval of any public authority or any third party; and that this Mortgage constitutes the valid and binding obligation of Mortgagor, enforceable in accordance with its terms.
Mortgagor agrees to permit Mortgagee and its agents, representatives and employees, at all reasonable times, upon reasonable notice and subject to the rights of tenants, to go upon, examine, inspect and remain on the Mortgaged Property, to assist and cooperate, and require Mortgagor’s employees, agents and contractors to cooperate, with Mortgagee and to furnish to Mortgagee on reasonable request all pertinent information concerning the physical and economic condition, development and operation of the Mortgaged Property. Mortgagee may discuss the Mortgaged Property directly with any of Mortgagor’s officers and managers.
Mortgagor, immediately upon obtaining knowledge of the institution of any proceedings for the condemnation or taking by eminent domain of any of the Mortgaged Property, shall notify Mortgagee of the pendency of such proceedings. Mortgagee may participate in any such proceedings and Mortgagor shall deliver to Mortgagee all instruments requested by it to permit such participation. Any award or compensation for property taken or for damage to property not taken, whether as a result of such proceedings or in lieu thereof, is hereby assigned to and shall be received and collected directly by Mortgagee, and any award or compensation shall be applied, at Mortgagor's sole option (or, if an Event of Default has occurred and is continuing, Mortgagee's sole option), to all or any part of the Secured Obligations and in any order (notwithstanding that such Secured Obligations may not then otherwise be due and payable) or to the repair and restoration of any of the Mortgaged Property under such terms and conditions as Mortgagee may reasonably impose, provided that such proceeds may be applied to repair and restoration if Mortgagor demonstrates to Mortgagee's reasonable satisfaction that repair and restoration of the affected portion of the Mortgaged Property is feasible and Mortgagor has deposited with Mortgagee any amounts required in addition to such proceeds to complete such repair and restoration. Mortgagor shall not be deemed to have elected such option until such option is elected specifically in writing. Until so elected, Mortgagor shall not in any circumstances be deemed to have waived its right to make such election.
In the event of the passage of any state, federal, municipal or other governmental law, order, rule or regulation, subsequent to the date hereof, in any manner changing or modifying the laws now in force governing the taxation of debts secured by mortgages or the manner of collecting taxes so as to affect adversely the Mortgagee, the Mortgagor will promptly pay any such tax; if the Mortgagor fails to make such prompt payment or if any such state, federal, municipal or other governmental law, order, rule or regulation prohibits the Mortgagor from making such payment or would penalize the Mortgagee from making such payment or would penalize the Mortgagee if the Mortgagor makes such payment, then the entire balance of the principal sum secured by this Mortgage and all interest accrued thereon shall, without notice, immediately become due and payable at the option of the Mortgagee.
A mortgagee is the lender or financial institution that provides a borrower (known as the mortgagor) with funds secured by a mortgage loan. The mortgagee holds legal rights over the property serving as collateral for the loan until the full repayment is made by the borrower. Essentially, the mortgagee is the party that provides the credit and gains security in the form of a lien on the real estate.
You should refer to a mortgagee in situations involving a mortgage agreement or discussions regarding home financing. Particularly, the term is used when analyzing or setting up the terms of a mortgage between a borrower and a lender. It’s crucial in understanding roles and responsibilities in financial transactions related to real estate.
When writing “mortgagee,” ensure correct spelling and capitalization in your documents. The term should be consistently used to indicate the lending party in financial and legal documents concerning mortgages. For example:
“The mortgagee will retain the lien on the property until the mortgage has been paid in full by the mortgagor.”
Contracts that typically contain references to a mortgagee include:
Mortgage Agreements: Detailed contracts stating the terms of the mortgage loan, including interest rates, repayment schedules, and the rights and obligations of both the mortgagee and mortgagor.
Deed of Trust: Some states use this alternative to mortgages, which involves a trustee holding the property title until the loan is paid off; however, the mortgagee is still a key party.
Promissory Notes: Legal documents affirming the borrower’s promise to pay back the loan under specified terms, often reference the mortgagee as the issuer of funds.
Loan Commitment Letters: Official letters from the mortgagee that outline the provision of a mortgage loan, pending conditions such as appraisal and title search.
These contracts clearly define the mortgagee’s interests and conditions, protecting their investments and outlining their rights relative to the property and borrower.
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
A "most favored customer" clause is a contractual provision ensuring that the customer receives terms as favorable as those granted to any other customer. This clause typically requires the seller to extend the same benefits or prices to the favored customer whenever offering better terms to others.
The "Most Favored Nation" clause is a contractual provision that ensures a party receives terms that are at least as favorable as those given to any other party in similar agreements. This clause is commonly used to prevent discrimination and to maintain competitive equal footing among contracting parties.
A mutual agreement clause specifies that certain actions, changes, or decisions within a contract require the consent of all involved parties before implementation. This clause ensures that all parties have equal input and acknowledge any modifications to the original terms, promoting collaboration and fairness in the contractual relationship.
Try our AI contract analysis and extract important clauses and information from existing contracts.
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