WP Investment Company owns Lot 72 — a risky commercial property.
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When this scenario occurs, the original lender will not want to assign al l of its rights to the original security to the collateral lender.
The Pledgor will not create, assume or suffer to collatera any Lien on any of the Collateral except pursuant to this Agreement and the other Loan Documents. Most underwriters will allow either of the following:.
the Premises ("Mortgage"), (both the Note and Mortgage collectively referred to as "Loan Documents") dated even date herewith and intended to be recorded simultaneously herewith. As a condition to making such a loan to Assignor, Assignee requires Assignor to execute and deliver this Collateral Assignment of.– Bruce, Anaheim, CA
the Premises ("Mortgage"), (both the Note and Mortgage collectively referred to as "Loan Documents") dated even date herewith and intended to be recorded simultaneously herewith. As a condition to making such a loan to Assignor, Assignee requires Assignor to execute and deliver this Collateral Assignment of.– Kimberly, Corpus Christi, TX
This ASSIGNMENT OF MORTGAGE AND PLEDGE AGREEMENT, dated as of June 17, (as amended, modified or supplemented from time to time, this . to the extent applicable to each item of the Collateral as determined by the Lender, each of which shall be in form and substance satisfactory to the Lender.– Sandra, Lexington, KY
One o to look at a collateral assignment is that the Note and Deed of Trust n ow have two beneficiaries, both of whom must be collateral assignment of mortgage form with if the Deed of Trust is to be foreclosed, released, or reconveyed. When a Note and Deed of Trust are created, they become a receivable, or asset, in the hands of the lender.
If the lender itself subsequently decides to raise cash, they can sell the asset to ano ther investor and assign the Note and Deed of Trust outright to that investor. S ometimes the sixth grade persuasive speech topics lender decides instead to raise cash by collateral assignment of mortgage form money fr om another lender.
As part of that transaction, they can pledge that asset as se curity or collateral for the loan they are receiving. The collateral assignment is the document that is recorded to show that the original lender used the asset as security to borrow money, rather than selling the asset outright to a new in vestor. T his is because the collateral they assibnment is the promissory note itself, as oppose d to the lien against real property created by the Deed of Trust.
Default by the original lender on the collateral loan does not directly entitle the collateral assignee to foreclose on the Deed of Trust. This makes sense if you consider th at the collatera owner should not be vulnerable to losing their property to forec losure unless the property owner itself has defaulted on the original Note and D eed of Trust.
By law, a promissory note is personal property, which is governed by the provisions of the Uniform Commercial Collateral assignment of mortgage form. If the original lender colllateral s on the collateral loan but the property owner has not defaulted on the origina l loan, the collateral assignee must assert its rights to the original promissor y note pursuant to the UCC.
See related azsignment, Uniform Commercial Code. Each Indemnitee agrees to promptly notify the Fomr of any such assertion of which such Indemnitee has knowledge. After the Termination Date as hereafter definedcollateral assignment of mortgage form Agreement shall terminate provided that all indemnities set forth herein including, without limitation, in Article VII hereof, shall survive any such termination and the Lender, at the request and expense of the Pledgor, will promptly execute and deliver to the Pledgor such proper instrument or instruments acknowledging the satisfaction and termination of this Agreement, and will duly assign, transfer and deliver to the Pledgor without recourse and without any representation or warranty such of the Collateral pledged to collaheral Lender hereunder as may be in the possession of the Lender and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement.
No amendment or waiver of any provision of this Agreement nor consent to any departure by collateral assignment of mortgage form Pledgor therefrom shall in any event be effective unless the same shall be in writing and signed by the Lender, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
Any notice and other communication required or permitted to be given to any Person under this Agreement shall be given by collateral assignment of mortgage form means and to the addresses for such Person as are specified in the Note.
No failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right. The rights in this Agreement are cumulative and are not exclusive of any other remedies provided by law.
This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed shall constitute an original but all such counterparts, when taken together, shall constitute one and the same instrument.
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, but frm without regard to conflict collateral assignment of mortgage form law principles.
Section headings in this Agreement are included for convenience of reference only and shall not constitute a part mmortgage this Agreement for any other purpose. Notwithstanding any provision contained herein or in any of the other Loan Documents, this Agreement and the other Loan Documents shall be construed without regard to any presumption or rule of law or equity collaterzl a construction against the party causing this Agreement and the other Loan Documents to be prepared.
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