MGMT 3100 Chapter Notes - Chapter 23: Accrued Interest, Secured Creditor, Eviction
26 May 2016
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Document Summary
Mortgage = a loan contract that gives the lender an interest in the borrower"s land as security for a debt. Mortgagor = a borrower who gives his lender an interest in his land as security for repayment of a debt. Mortgagee = a lender who accepts an interest in land as security for a loan. Mortgage commitment = document in which parties to a mortgage initially agree to borrow and lend. Mortgage acceleration clause = states that upon default of any installment, the whole of the principal sum of the mortgage and accrued interest immediately falls due. Default accelerates the maturity date (basically the maturity date is now over looked and you must pay right away) ^ at that point the mortgagee may pursue all its remedies. Mortgagor signs the documents and the mortgagee just accepts doesn"t need to sign it. Acceptance of the document binds them to the mortgage terms.
