Subdivision mortgage with release clause based on ratio of payment and value.
This purchase money mortgage, made on _________[date], between _________, _________ and _________("mortgagors"), and _________ Development Company, Inc., a body corporate of the State of _________("mortgagee").
The mortgagors stand bona fide and justly indebted unto the mortgagee in the full and just sum of $_____, being cash money this day loaned and advanced by the mortgagee to the mortgagor, which loan or advancement is further represented by the mortgagors' certain promissory note bearing today's date and for the same total amount, and payable $_____ principal, plus interest at _________ percent per year on _________[date], and after that, the remaining principal balance due and owing, according to standard amortization charts, payable in _________[semi]annual installments, commencing _________[date], of $_____ on principal plus interest at _________ percent per year with the right and privilege to the mortgagors to pay the principal of the mortgage debt in whole or in part on any date, and the better to secure the payment of the principal and interest in the manner and at the times above set out, this mortgage is executed and delivered.
Now, therefore, this mortgage witness: that in consideration of the premises and the sum of one dollar in hand paid, the receipt of which is here acknowledged, the mortgagors do here grant, convey and assign unto the mortgagee, its successors and assigns, forever in fee simple, all those lots, tracts or parcels of land situated in _________ County, containing _________ acres more or less, and more particularly described as follows: _________; and the mortgagors do also grant, assign and convey all of the equipment and machinery now located on the above described premises, as follows: _________.
Release and Subordination Clauses.
The mortgagee here covenants and agrees that this mortgage and the accompanying note shall be subordinate, junior, and inferior to any construction mortgage contracted and executed by the mortgagors for the sole purpose of erecting a maximum of _________ one-family residential (sample house) dwellings on _________ subdivided lots, not to exceed _________ dollars per building unit, provided, however, the lots shall be applied to the appropriate release clauses as set out below no later than _________ months from the date of subordination. Mortgagee further agrees, upon the submission of bona fide contracts of sale for lots and buildings units to be constructed by mortgagors, to subordinate the lien and effect of this mortgage to any construction loan made by mortgagors in order to complete the contract, the period to run no longer than _________ days, and upon completion of settlement or expiration of the period, whichever occurs first, the lots or lot shall be applied to the appropriate release clauses as set out below.
(a). By virtue of mortgagors' down payment of $_____ on the mortgaged premises, they shall be entitled to releases without further consideration, upon their request, to any lots or parcels of land up to the total value of $_____ as such values are indicated on a certain plat entitled "lands of _________ development corporation made by _________, consulting engineers," _________, _________, dated _________, revised _________[date], revised _________[date], and initialed by all parties to this agreement, excluding any improvements.
(b). Mortgagee further agrees that after the release values are used up as set out in paragraph (a) above, that it will release from the lien of this mortgage such other lots or parcels of land on the basis of _________ to one; that is, $_____, as such values are indicated on the above-mentioned plat, upon the request of mortgagors and the payment of mortgagors of $_____ against the principal and interest of the mortgage and note.
Together with the buildings and improvements upon them, and all and singular the rights, alleys, roads, ways, waters, privileges, easements, profits, appurtenances and advantages belonging to them, or in any way appertaining.
To have and to hold the above-described lot or lots of ground with the improvements upon them, and all the rights and appurtenances described above, unto the mortgagee, its successors and assigns, forever in fee simple.
Provided, that if the mortgagors, their heirs, personal representatives, successors or assigns, shall pay the mortgage indebtedness and accrued interest from the date of this agreement, and shall on their part perform all of the covenants and agreements contained in this agreement, then this mortgage shall be void.
The mortgagors here covenant as follows:
A. To pay the mortgage debt and interest on it in accordance with the terms and conditions of this agreement and of any note and any substitution, extension or renewal of it, and to pay, when due, all water rents, ground rents, taxes, assessments, public and other dues and charges levied or assessed or which may be levied or assessed on the property here mortgaged and on the mortgage debt and interest, and the mortgagors covenant, upon payment of those bills, to exhibit to the mortgagee the receipts for the payments, at the place of business of the mortgagee and to pay all claims which can become a lien superior to the lien of this mortgage.
B. To keep all buildings, roads, and property line markers subject to this agreement, in good and substantial repair and not permit any waste of them.
C. To keep the improvements upon the mortgaged property insured from loss by fire or other hazard.
D. To comply promptly with all laws, ordinances and regulations affecting the premises or their use.
E. To warrant specially the premises here mortgaged and to execute such further assurances as may be requisite.
The parties further covenant and agree as follows:
1. That, in the event of any default in any covenant of this mortgage, which shall continue for more than _________ days, or in the event a receiver or trustee is appointed for the property of the mortgagors, or any of them, either in bankruptcy or in equity or in any other court or in case the mortgagors, or any of them, execute a deed of trust of their property for the benefit of creditors, then the whole mortgage indebtedness shall, at the option of the mortgagee, be and become due and payable, and whether or not this option is exercised, interest shall run from that time at the rate of _________ percent per year, at the option of the mortgagee.
2. That the mortgagor, in accordance with the provisions of _________[statutory citation], or of any other general or local laws of the State of _________ relating to mortgages including any amendments or additions to those laws that do not materially change or impair the remedy, does here (a) assent to the passage of a decree by the equity court having jurisdiction for the sale of the property here mortgaged, and (b) does here authorize, in the event of any default in any of the covenants of this mortgage, which shall continue for more than _________ days, the mortgagee, h— personal representatives, successors and assigns, or _________, mortgagee's attorney, to sell the mortgaged property. Any such sale, whether under the consent to a decree or power of sale, may be made by the person or persons authorized to sell, either as an entirety or in such separate parcels and on such terms and at such places and in such manner as may be deemed advisable.
3. That, upon any sale of the premises under this mortgage whether under the assent to a decree, the power of sale or by equitable foreclosure, the proceeds of the sale shall be applied as follows: first, to the payment of all expenses incident to the sale, including a counsel fee of $_____ for conducting the proceedings if without contest, but if legal services be rendered to the mortgagee or to the party selling under the power of sale in connection with any contested matter in the proceedings, then such other counsel fees and expenses shall be allowed out of the proceeds of sale as the court may deem proper, and also a commission to the party making the sale equal to the commission allowed trustees for making sales of property under decrees of the equity courts of the county in which the property is located; second, to the payment of all claims of the mortgagee under this agreement; and third, the balance, if any, to the mortgagors, or to any persons entitled to it.
4. That, immediately upon the first insertion of the advertisement or notice of sale, there shall be and become due and owing by the mortgagors, and each of them, to the party inserting the advertisement or notice, all expenses incident to the advertisement or notice, all court costs and all expenses incident to the foreclosure proceedings under this mortgage and a commission on the total amount of the mortgage indebtedness, principal and interest, equal to one-half the percentage allowed as commission to trustees making sale under orders or decrees of the equity courts in the county in which the property is located, and that party shall not be required to receive the principal and interest only of the mortgage debt in satisfaction, of, unless it be accompanied by a tender of the expenses, costs and commissions.
5. That, should the mortgagors fail or neglect to pay any water rents, ground rents, taxes, assessments, public and other dues or charges levied or assessed or which may be levied or assessed on the property here mortgaged or on the mortgage debt and interest, when due, or permit any lien on the property here mortgaged superior to the lien of this mortgage, or keep the premises insured against loss by fire or other hazard, the mortgagee may make such payments, pay such lien or insure the premises against loss by fire or other hazard in such an amount as may be necessary to secure the mortgage indebtedness, and such sum or sums so paid shall be added to the principal of the mortgage indebtedness, with interest at the rate of _________ percent per year, at the option of the mortgagee.
6. That, should all or any part of the property here mortgaged be condemned or taken through eminent domain proceedings, all or such part of any award or proceeds as the mortgagee in its sole discretion may determine, in writing, shall be paid to the mortgagee and applied to the payment of the mortgage indebtedness.
7. That, the mortgagee may at any time renew this mortgage, extend the time for payment of the mortgage indebtedness or any part of it or interest on it and waive any of the covenants or conditions of this mortgage in whole or in part, either at the request of any one or more of the mortgagors or of any person having an interest in the property here mortgaged, take or release other security, release any party primarily or secondarily liable on this mortgage or such other security, grant extensions, renewals or indulgences in the mortgage, or apply to the payment of principal and interest of the mortgage indebtedness any part or all of the proceeds obtained from the proceeds of insurance, or proceeds obtained by sale, foreclosure or receivership or otherwise as here provided, without resort or regard to other security, all without in any way releasing the mortgagors, or any of them, from any of the covenants or conditions of this mortgage.
8. That, until default is made in any covenant or condition of this mortgage, which shall continue for more than _________ days (but not after that time), the mortgagors shall have possession of the property here mortgaged. Upon default in any of the covenants or conditions of this mortgage, the mortgagee shall be entitled without notice to the mortgagors, or any of them, to the immediate appointment of a receiver of the property here mortgaged to operate it, and upon any default, whether or not a receiver be appointed, the rents and profits of the property here mortgaged are here assigned to the mortgagee as additional security.
9. That, the rights, powers, privileges and discretions specifically granted to the mortgagee under this mortgage are not in limitation of but in addition to those to which the mortgagee is entitled under any general or local law relating to mortgages in the State of _________, existing now or in the future.
10. The _________ day default clause as set out in paragraphs 1, 2 and 8 of this agreement shall apply to all payments except the first payment on the mortgage due on _________[date].
The covenants, agreements, conditions and limitations of or imposed upon the mortgagors shall be binding upon their respective heirs, personal representatives, successors or assigns, or in the event the mortgagor is a corporation upon its successors and assigns.
The rights, powers, privileges and discretions to which the mortgagee may be entitled under this agreement shall inure to the mortgagee's heirs, personal representatives, successors and assigns, or in the event the mortgagee is a corporation to its successors and assigns.
Whenever used, the singular number shall include the plural, and the plural the singular.
[Signatures and attestations]
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