shall be defeated when the debt is paid. It is executed, acknowledged and recorded like a deed. A piece of property may be subject to several mortgages and unless the mortgagees have actual notice of the existence of prior mortgages their liens have priority in the order in which the mortgages are recorded. Usually the debt secured by the mortgage is evidenced by a note or more formal instrument called a bond. The mortgage creates a lien against property while the bond creates a personal obligation. Bonds and mortgages may be assigned, but the assignment of mortgages should be recorded. When the mortgage debt is paid the instrument is returned and a formal discharge or satisfaction is executed by the mortgagee or his assignee and recorded by the mortgagor. If the mortgage debt is not paid when due, the mortgage may be foreclosed, and the land sold, to pay the debt with interest and the costs of the foreclosure proceedings and sale. A personal judgment, known as a deficiency judgment, may be entered against the mortgagor who has given a note or bond, or in some other way made himself personally liable, if the proceeds of the foreclosure sale are insufficient to pay the debt with interest and costs. Some mortgages give the mortgagee power to sell without requiring foreclosure through judicial proceedings. FORM OF MORTGAGE THIS INDENTURE, made the twentieth day of November, in the year nineteen hundred and seven, between Walter Pullman, of the Borough of Manhattan, City, County and State of New York, hereinafter described as party of the first part, and Norman Scott, of the Borough of Brooklyn, County of Kings, City and State of New York, hereinafter described as party of the second part. WHEREAS, the said party of the first part, by virtue of a certain bond or obligation bearing even date herewith, is justly indebted to the said party of the second part in the sum of four thousand ($4,000) dollars, lawful money of the United States, secured to be paid, together with the interest thereon, at the time and in the manner expressed in said bond or obligation. IT BEING THEREBY EXPRESSLY AGREED, that the whole of the principal sum shall become due after default in the payment of interest, taxes, or assessments, as hereinafter provided. NOW THIS INDENTURE WITNESSETH, that the party of the first part, for the better securing the payment of the sum of money mentioned in the said bond or obligation, with the interest thereon, and also for and in consideration of one dollar paid by the party of the second part, the receipt whereof is hereby acknowledged, does hereby grant and release unto the party of the second part, and to his heirs and assigns, forever, all that certain lot, piece, or parcel of land, with all buildings and improvements thereon made or erected, situate, lying and being in the Borough of Manhattan, City, County and State of New York, bounded and described as follows, to wit: Beginning at a certain point on the north side of Palmer Road distant one hundred feet east of that point known as the north-east corner formed by the intersection of Bailey Avenue and Palmer Road, running thence (1) forty feet due east on a line with the said Palmer Road; thence (2) onehundred feet due north on a line parallel with said Bailey Avenue; thence (3) forty feet due west on a line parallel with said Palmer Road; thence (4) one hundred feet due south on a line parallel with said Bailey Avenue, the place of Beginning. TOGETHER with all fixtures and articles of personal property attached to, or used in connection with said premises, all of which it is declared are to be covered by this mortgage. TOGETHER with the appurtenances, and all the estate and rights of the party of the first part, in and to said premises. TO HAVE AND TO HOLD the above granted premises unto the party of the second part, his heirs and assigns forever. PROVIDED ALWAYS, that if the party of the first part or the heirs, executors, or administrators of the party of the first part, shall pay unto the party of the second part, his heirs, administrators, executors or assigns, the said sum of money mentioned in the said bond or obligation, and the interest thereon, at the time and in the manner mentioned in the said bond or obligation, that then these presents and the estate hereby granted, shall cease, determine and be void. AND the party of the first part covenants with the party of the second part as follows: FIRST. That the party of the first part will pay the indebtedness as provided in this mortgage and if default be made in the payment of any part thereof, the party of the second part shall have power to sell the premises herein described, according to law. Said premises may be sold in one parcel, any provision of law to the contrary notwithstanding. SECOND. That the party of the first part will keep the buildings on the said premises insured against loss by fire for the benefit of the party of the second part. Should the party of the second part by reason of such insurance against loss by fire, as aforesaid, receive any sum or sums of money, such amount may be retained and applied by the party of the second part toward payment of the sum hereby secured, or the same may be paid over either wholly or in part to the party of the first part, his heirs, administrators, executors or assigns, to enable the party of the first part to repair said buildings or to erect new buildings in their place, or for any other purpose or object satisfactory to the party of the second part, without affecting the lien of this mortgage for the full amount secured thereby before such damage by fire, or such payment over, took place. THIRD. And it is hereby expressly agreed that the whole of the said principal sum shall become due at the option of the party of the second part after default in payment of interest for thirty days, or after default in the payment of any tax or assessment for thirty days after notice and demand; and also, that the whole of the said principal sum shall be come due at the option of the party of the second part upon any default in keeping the buildings on the premises insured against loss by fire as required by paragraph marked "second" above, or immediately upon the actual or threatened demolition or removal of any building erected upon said premises, or if after application by any holder of this mortgage to two or more fire insurance companies lawfully doing business in the State of New York, and issuing policies upon real property situate in the place where the mortgaged premises are situate, the companies to which such application has been made shall refuse to issue such policies. FOURTH.-That the holder of this mortgage, in any action to foreclose it, shall be entitled, without notice and without regard to the adequacy of any security for the debt, to the appointment of a receiver of the rents and profits of said premises; and in the event of any default or defaults in paying said principal or interest, such rents and profits are hereby assigned to the holder of this mortgage as further security for the payment of said indebtedness. FIFTH. That until the amount hereby secured is paid, the party of the first part will pay all taxes, assessments and water rates which may be assessed or become liens on said premises, and, in default thereof, the holder of this mortgage may pay the same, and the party of the first part will repay the same with interest, and the same shall be liens on said premises and secured by this mortgage. SIXTH. In the event of the passage after the date of this mortgage of any law of the State of New York, deducting from the value of land for the purposes of taxation any lien thereon, or changing in any way the laws for the taxation of mortgages or debts secured by mortgage for State or local purposes, or the manner of the collection of any such taxes, so as to affect this mortgage, the holder of this mortgage, and of the debt which it secures, shall have the right to give thirty days' written notice to the owner of said land requiring the payment of the mortgage debt, and it is hereby agreed that if such notice be given, the said debt shall become due, payable and collectible at the expiration of said thirty days. SEVENTH.-That the mailing of a written notice or demand by depositing it in any post-office, station or letter box, enclosed in a post-paid envelope addressed to the owner of record of said mortgaged premises and directed to such owner at the last address actually furnished to the holder of this mortgage, or, if no such address has been furnished, then to such record owner at the mortgaged premises, shall be sufficient notice and demand in any case arising under this instrument. EIGHTH. That the party of the first part will execute any further necessary assurance of the title to said premises, and will forever warrant said title. NINTH. The party of the first part, and any subsequent owner of the premises described herein upon request, made either personally or by mail, shall certify, by a writing duly acknowledged, to the party of the second part or to any proposed assignee of this mortgage, the amount of principal and interest then owing on this mortgage and whether any offsets or defences exist against the mortgage debt; upon failure to furnish such certificate after the expiration of six days in case the request is made personally, or after the expiration of thirty days after the mailing of such request in case the request is made by mail, this mortgage shall become due at the option of the holder thereof. TENTH. If any action or proceeding be commenced by any person other than the holder of this mortgage (except an action to foreclose this mortgage or to collect the debt secured hereby), to which action or proceeding the holder of this mortgage is made a party, or in which it becomes necessary to defend or uphold the lien of this mortgage, all sums paid by the holder of this mortgage for the expense of any litigation to prosecute or defend the rights and lien created by this mortgage (including reasonable counsel fees), shall be paid by the party of the first part, together with interest thereon at the rate of six per cent. per annum, and any such sum and the interest thereon shail be a lien on said premises, prior to any right or title to interest in or claim upon said premises attaching or accruing subsequent to the lien of this mortgage, and shall be deemed to be secured by this mortgage and by the bond which it secures. In any action or proceeding to foreclose this mortgage, or to recover or collect the debt secured thereby, the provisions of law respecting the recovery of costs, disbursements and allowances shall prevail unaffected by this cove nant. IN WITNESS WHEREOF, the said party of the first part has signed and sealed this instrument the day and year first above written. WALTER PULLMAN. [L. S.] In the presence of 490. Other liens.-When the title to real property is searched many other liens are looked for as incumbrances besides mortgages. In many states statutes give unpaid mechanics and material men a lien against property upon which they have performed labor or for which they have furnished material. These are usually known as mechanics' liens. In most states taxes and assessments remain a lien on property until paid. Judgments entered in state and federal courts constitute liens on the property of the judgment debtor for a certain period after their entry. In a number of states a person who innocently makes improvements on land which he believes to be his and is afterwards ejected by the true owner is given a lien for the value of the improvements. In many states where an action or special proceeding affecting the title to real estate is brought a paper called a lis pendens is filed which gives constructive notice of the claim and the suit. Should the plaintiff be successful, his claim will not be affected by the rights acquired by persons subsequent to the filing of the lis pendens. 491. Landlord and tenant: lease. The relation of landlord and tenant is created by a contract called a lease which conveys an estate for years to the tenant and a reversion to the landlord. Where the term of the ten ancy specified in the lease is more than one year the lease is required to be in writing by the statute of frauds. In some states, however, an express statutory provision permits oral leases for a year or more. Sometimes a lease for a given term, usually three years or longer, must be recorded. Usually a seal is not required. A lease may contain any legal contract in regard to the premises, their occupation and maintenance. The usual covenants contained in a lease are that the lessee will pay rent, that he will surrender the premises in good condition at the end of his term, that he will not assign or sublet without the consent of the landlord, that the lessor or lessee will pay the taxes and assessments on the property and repair the premises, and that the lessor will renew the lease if the lessee so desires. Every lease contains an implied covenant that the lessor has the right to make the lease and that the lessee shall not be disturbed in the quiet enjoyment of the premises by the lessor or any one claiming superior title. Lessor and Lessee FORM OF LEASE THIS AGREEMENT, made this 13th day of December, 1906, between W. L. DECHANT, attorney in fact, party of the first part, and OTTO C. MEYER, party of the second part, WITNESSETH, That the said party of the first part, as Landlord, doth hereby lease unto the said party of the second part and the said party of the second part does hereby hire and take from him, as Tenant, the Room numbered 209 in the second story of the building known as the "Downing Building" being Nos. 106-108 Fulton Street and 14 Dutch Street, in the Borough of Manhattan, City of New York, to be used and occupied as an office for the transaction of business of proprietary medicines and for no other purpose, for the term of four months to commence on the first day of January, 1907, and to end on the first day of May, 1907, at the annual rent of one hundred and fifty ($150) dollars, lawful money of the United States of America, payable in equal monthly payments, in advance, on the first day of each and every month in each year during the term of this lease, commencing January first, 1907, to the Landlord, or to the duly authorized Agent of the said Landlord, at his office. Occupation Term Rent The above letting is upon the following conditions, all and every one of which the said Tenant for himself, his representatives and assigns, covenants and agrees to and with the said Landlord, his representatives or assigns, to keep and perform: |