N.Y. Real Property Law 273 – What form of mortgage on lease of real property
§ 273. What form of mortgage on lease of real property. The use of the following form of instrument for mortgages on leases of real property is lawful, but this section does not prevent or invalidate the use of other forms.
Terms Used In N.Y. Real Property Law 273
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
SCHEDULE D.
MORTGAGE ON LEASE OF REAL PROPERTY. This indenture, made the ……. day of …….., in the year one thousand ……. hundred and ………., between …………. of (insert residence) of the first part and ……….. of (insert residence) of the second part; whereas ……….. did, by a certain indenture of lease, bearing date the ……. day of …….., in the year one thousand nine hundred and ………., demise, lease and to farm let unto ………… and to ………… executors, administrators and assigns, all and singular the premises hereinafter mentioned and described, together with their appurtenances; to have and to hold the same unto the said ……….. and to ……….. executors, administrators and assigns, for and during and until the full end and term of ……. years, from the ……. day of …….., one thousand nine hundred and …….., fully to be complete and ended, yielding and paying therefor unto the said ……. and to ……. or assigns, the yearly rent or sum of …………… .
And whereas, the said part ……. of the first part justly indebted to the said part ……. of the second part, in the sum of ……. lawful money of the United States of America, secured to be paid by …….. certain bond or obligation, bearing even date herewith, conditioned for the payment of the said sum of ……. on the ……. day of …….., nineteen hundred and ……. and the interest thereon to be computed from ……. at the rate of ……. per centum per annum and to be paid …… .
It being thereby expressly agreed that the whole of the said principal sum shall become due at the option of the mortgagee or obligee after default in the payment of interest, taxes or assessments or rents as hereinafter provided.
Now this indenture witnesseth that the said part ……. of the first part, for the better securing the payment of the said sum of money mentioned in the condition of the said bond or obligation, with interest thereon, and also for and in consideration of the sum of one dollar, paid by the said part ……. of the second part, the receipt whereof is hereby acknowledged, doth grant and release, assign, transfer and set over unto said part ……. of the second part, and to his heirs (or successors) and assigns forever.
(Description.)
Together with the appurtenances and all the estate and rights of the part …….. of the first part of, in and to said premises under and by virtue of the aforesaid indenture of lease.
To have and hold the said indenture of lease and renewal, and the above granted premises, unto the said part ……. of the second part, his heirs and assigns, for and during all the rest, residue and remainder of the said term of years yet to come and unexpired, in said indenture of lease and in the renewals therein provided for; subject, nevertheless, to the rents, covenants, conditions and provisions in the said indenture of lease mentioned.
Provided always that if the said part ……. of the first part shall pay unto the said part ……. of the second part, the said sum of money mentioned in the condition of the said bond or obligation, and the interest thereon, at the time and in the manner mentioned in the said condition, that then these presents and the estate hereby granted, shall cease, determine and be void.
And the said part ……. of the first part covenant ……. with the said part ……. of the second part as follows:
First. That the part ……. of the first part will pay the indebtedness as hereinbefore provided.
And if default shall be made in the payment of any part thereof the said part ……. of the second part shall have power to sell the premises therein described according to law.
Second. That the said premises now are free and clear of all incumbrances whatsoever, and that ……. ha ……. good right and lawful authority to convey the same in manner and form hereby conveyed.
Third. That the part ……. of the first part will keep the buildings on the said premises insured against loss by fire, for the benefit of the mortgagee.
Fourth. That the part ……. of the first part will pay the rents and other charges mentioned in and made payable by said indenture of lease within ……. days after said rent or charges are payable.
Fifth. And it is hereby expressly agreed that the whole of the said principal sum shall become due at the option of the said mortgagee or obligee after default in the payment of any instalment of principal, or after default in the payment of interest for ……. days, or after default in the payment of any rent or other charge made payable by said indenture of lease for ……. days, or after default in the payment of any tax or assessment for ……. days after notice and demand.
In witness whereof, the said part ……. of the first part to these presents ha ……. hereunto set ……. hand ……. and seal ……. the day and year first above written. Sealed and delivered } in the presence of }