Assignment Of Mortgage As Security
Assignment of Mortgage as Security
This Assignment dated ____________ is between _______________, the Mortgage Holder, of _________________________________ (“Assignor”) and ______________ of _______________________ Person Receiving Assignment of Mortgage, of __________________ (“Assignee”).
Whereas:
(A) By a mortgage dated ______________ (“Mortgage”), and recorded on _______
with Registration/Recordal Number ___________, Borrower under Mortgage, ____________ (“Mortgagor”), mortgaged the property described the property more fully described in Exhibit 1, in favor of Assignor to secure payment of the principal sum of Original Amount of Indebtedness from Mortgage Borrower to Assignor of $__________ with interest as therein set out upon the terms therein mentioned;(B) There is now owing upon the Mortgage for principal the sum of $_____________ now owing to Assignor together with interest thereon from the date hereof;
(C) Assignor has agreed to assign the Mortgage to Assignee as continuing collateral security for payment by Assignor of all indebtedness of Assignor to Assignee;
In consideration of these premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:
1. Assignor hereby assigns, transfers and sets over to Assignee Assignor’s interest as mortgagee in the Mortgage and also the sum $______________ now owing from Mortgage Borrower to Assignor, together with all monies that may hereafter become due or owing in respect of the Mortgage, the charge upon the Property and the full benefit of all powers and of all covenants contained in the Mortgage, and also the full power and authority to use the name or names of Assignor for enforcing the performance of the covenants and other matters and things contained in the Mortgage, as a general and continuing collateral security for payment of all existing and future indebtedness and liability of Assignor to Assignee wheresoever and howsoever incurred and any ultimate unpaid balance thereof, and as a first and prior claim upon the Mortgage.
2. Assignor hereby covenants with Assignee that the Mortgage is a good and valid security and the sum now owing from Mortgage Borrower to Assignor, $_________, is now owing and unpaid and that Assignor has not done or permitted any act, matter or thing whereby the Mortgage has been released or discharged either partly or in its entirety.
3. Assignee may collect, realize, sell or otherwise deal with the Assigned Accounts or any part thereof in such manner, upon such terms and conditions and at such time or times as may seem to it advisable and without notice to Assignor (except as otherwise required by any applicable law), and may charge on its own behalf and pay to others reasonable sums for expenses incurred and for services rendered (expressly including legal advice and services) in or in connection with collecting, realizing, selling or obtaining payment of the Assigned Accounts and may add the amount of such sums to the indebtedness of Assignor.
4. Assignee shall not be liable or accountable for any failure to collect, realize, sell or obtain payment of the Assigned Accounts or any part thereof and shall not be bound to institute proceedings for the purpose of collecting, realizing or obtaining payment of the same or for the purpose of preserving any rights of Assignee, Assignor or any other person, firm or corporation in respect of the same.
5. Assignee may grant extensions of time and other indulgences, take and give up securities, accept compositions, grant releases and discharges and otherwise deal with Mortgagor and the Mortgage without prejudice to the liability of Assignor or Assignee’s right to hold and realize this security.
6. All moneys collected or received by the Assignor in respect of the Mortgage shall be received as trustee for Assignee and shall be forthwith paid to Assignee.
7. All moneys collected or received by Assignee in respect of the Mortgage (whether by virtue of paragraph 6 or otherwise) may be applied on account of such parts of the indebtedness and liability of Assignor as to Assignee seems best or in the discretion of Assignee may be released to Assignor, all without prejudice to Assignee’s claims upon Assignor.
8. Assignor shall from time to time forthwith on Assignee’s request do, make and execute all such further assignments, documents, acts, matters and things as may be required by Assignee of or with respect to the Mortgage as may be required to give effect to these presents, including, but not limited to obtaining waivers and subordinations of interests in the Mortgage from any persons having a prior claim or interest thereto. Assignor hereby constitutes and appoints Assignee the true and lawful attorney of Assignor irrevocable with full power or substitution to do, make and execute all such statements, assignments, documents, acts, matters or things with the right to use the name of Assignor whenever and wherever it may be deemed necessary or expedient.
10. The provisions hereof shall inure to the benefit of the successors and assigns of the Assignee and shall be binding upon the respective heirs, executors, administrators, successors and assigns of the Assignor.
11. This is the entirety of the agreement between the parties. Any changes must be made in writing and signed by both parties. Any dispute must be brought in the state of ___________________.
Date:
_______________ ________________
Assignor Assignee_______________ ________________
Witness WitnessAssignment of Mortgage as Security
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This is a complex document that you would be well advised to seek both financial expertise and legal advice prior to enacting.
1. Make multiple copies. Give one to each signatory. Keep one with the transaction file.
Frequently Asked Questions
What is an assignment of mortgage as security?
An assignment of mortgage as security is a legal document where the current mortgage holder (Assignor) transfers their rights in a mortgage to another party (Assignee) to serve as collateral for a debt owed by the Assignor to the Assignee. The assignment acts as continuing collateral security for the payment of all indebtedness of the Assignor to the Assignee. This means the Assignee holds the mortgage as security until the Assignor's debt is repaid.
Who are the parties involved in an assignment of mortgage as security?
The parties are the Assignor, who is the current mortgage holder and is assigning the mortgage, and the Assignee, who is the person or entity receiving the assignment of the mortgage. The original borrower under the mortgage, known as the Mortgagor, is also referenced but is not a party to the assignment agreement. The Assignor assigns the mortgage to the Assignee as security for the Assignor's indebtedness.
What information is required in an assignment of mortgage as security?
The assignment must include the date of the assignment, the names and addresses of the Assignor and Assignee, and details about the original mortgage such as its date, recording information, and the original principal amount. It also states the current amount owing on the mortgage and the fact that the assignment is made as continuing collateral security. The property description is typically attached as an exhibit.
Why would a mortgage holder assign a mortgage as security?
A mortgage holder (Assignor) would assign the mortgage as security to provide collateral for a debt they owe to the Assignee. This means the Assignee can hold the mortgage as security until the Assignor's debt is repaid. The assignment serves as continuing collateral security for all indebtedness of the Assignor to the Assignee.
What does 'continuing collateral security' mean in this context?
In this context, 'continuing collateral security' means that the assigned mortgage serves as security for the payment of all indebtedness of the Assignor to the Assignee, not just a specific debt. It remains in effect until the Assignor's obligations to the Assignee are fully satisfied. This provides the Assignee with ongoing security for the Assignor's debts.
Is the original borrower's consent required for an assignment of mortgage as security?
The article does not mention that the original borrower's (Mortgagor's) consent is required for the assignment. The assignment is an agreement between the Assignor and Assignee, and the Mortgagor is not a party to it. Therefore, based on the provided text, the Mortgagor's consent is not addressed.
What happens to the mortgage after the Assignor's debt is repaid?
The article does not specify what happens to the mortgage after the Assignor's debt is repaid. However, since the assignment is made as continuing collateral security, it would typically be released or reassigned back to the Assignor once the indebtedness is paid. The document itself does not include provisions for release or reassignment.
How is the property described in an assignment of mortgage as security?
The property is described in an exhibit attached to the assignment, referred to as Exhibit 1. The article states that the property is 'more fully described in Exhibit 1'. The actual description is not included in the provided text.
What is the consideration for an assignment of mortgage as security?
The consideration for the assignment is stated as 'these premises and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged'. This is a standard legal phrase indicating that something of value is exchanged, but the specific amount is not mentioned. The article does not provide a specific monetary consideration.
Does an assignment of mortgage as security need to be recorded?
The article does not explicitly state whether the assignment itself must be recorded. However, it mentions that the original mortgage was recorded with a Registration/Recordal Number. It is common practice to record assignments to provide public notice, but the text does not confirm this requirement.
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