THIS IS A SAMPLE DOCUMENT ONLY USED BY US AS LENDERS IN FLORIDA. IT IS NOT INTENDED FOR
USE. WE ARE NOT LICENSED TO PRACTICE LAW. We always use this along with the mortgage even
if the property is NOT rented, because one day it might be.
Rented Property Addendum.
This addendum is made this __________ of ________, 19___ and is
incorporated into and shall be deemed to amend and supplement the Note and Mortgage of the
same date given to you, the undersigned Borrower to _____________ the "Lender"
covering the property described in the mortgage located at ____________________________.
BOOKS AND RECORDS.
Borrower shall keep and maintain at all times at Borrower's address
stated below, or such other place as Lender may approve in writing, complete and accurate
books of accounts and records adequate to reflect correctly the results of the operation
of the Property and copies of all written contracts, leases and other instruments which
affect the Property. Such books, records, contracts, leases and other instruments shall be
subject to examination and inspection at any reasonable time by Lender. Upon Lender's
request, Borrower shall furnish to Lender, within one hundred and twenty days after the
end of each fiscal yearof Borrower, a balance sheet, a statement of income and expenses of
the Property and a statement of changes in financial position, each in reasonable detail
and certified by Borrower and a rent schedule for the Property, certified by Borrower,
showing the name of each tenant, and for each tenant, the space occupied, the lease
expiration date, the rent payable and the rent paid.
LEASES OF THE PROPERTY.
Borrower shall comply with and observe Borrower's obligations as
landlord under all leases of the Property or any part thereof. Borrower will not lease any
portion of the Property for non-residential use except with the prior written approval of
Lender. Borrower, at Lender's request, shall furnish Lender with executed copies of all
leases now existing or hereafter made of all or any part of the Property, and all leases
now or hereafter entered into will be in form and substance subject to the approval of
Lender. All leases of the Property shall specifically provide that such leases are
subordinate to this Instrument; that the tenant attorns to Lender, such attornment to be
effective upon Lender's acquisition of title to the Property; that the tenant agrees to
execute such further evidences of attornment as Lender may from time to time request; that
the attornment of the tenant shall not be terminated by foreclosure; and that Lender may,
at Lender's option, accept or reject such attornments. Borrower shall not, without
Lender's written consent, execute, modify, surrender or terminate, either orally or in
writing, any lease now existing or hereafter made of all or any part of the Property
providing for a term of three years or more, permit an assignment or sublease of such a
lease without Lender's written consent, or request or consent to the subordination of any
lease of all or any part of the Property to any lien subordinate to this Instrument. If
Borrower becomes aware that any tenant proposes to do, or is doing, any act or thing which
may give rise to any right of set-off against rent, Borrower shall (i) take such steps as
shall be reasonably calculated to prevent the accrual of any right to a set-off against
rent, (ii) notify Lender thereof and of the amount of said set-offs, and (iii) within ten
days after such accrual, reimburse the tenant who shall have acquired such right to
set-off or take such other steps as shall effectively discharge such set-off and as shall
assure that rents thereafter due shall continue to be payable without set-off or
deduction.
ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. As
part of the consideration for the indebtedness evidenced by the Note, Borrower hereby
absolutely and unconditionally assigns and transfers to Lender all the rents and revenues
of the Property, including those now due, past due, or to become due by virtue of any
lease or other agreement for the occupancy or use of all or any part of the Property,
regardless of to whom the rents and revenues of the Property are payable. Borrower hereby
authorizes Lender or Lender's agents to collect the aforesaid rents and revenues and
hereby directs each tenant of the Property to pay such rents to Lender or Lender's agents;
provided, however, that prior to written notice given by Lender to Borrower of the breach
by Borrower of any covenant or agreement of Borrower in this Instrument, Borrower shall
collect and receive all rents and revenues of the Property as trustee for the benefit of
Lender and Borrower, to apply the rents and revenues so collected to the sums secured by
this Instrument in the order provided in paragraph 3 hereof with the balance, so long as
no such breach has occurred, to the account of Borrower, it being intended by Borrower and
Lender that this assignment of rents constitutes an absolute assignment and not an
assignment for additional security only. Upon delivery of written notice by Lender to
Borrower of the breach by Borrower of any covenant or agreement of Borrower in this
Instrument, and without the necessity of Lender entering upon and taking and maintaining
full control of the Property in person, by agent or by a court-appointed receiver, Lender
shall immediately be entitled to possession of all rents and revenues of the Property as
specified in this paragraph 26 as the same become due and payable, including but not
limited to rents then due and unpaid, and all such rents shall immediately upon delivery
of such notice be held by Borrower as trustee for the benefit of Lender only; provided,
however, that the written notice by Lender to Borrower of the breach by Borrower shall
contain a statement that Lender exercises its rights to such rents. Borrower agrees that
commencing upon delivery of such written notice of Borrower's breach by Lender to
Borrower, each tenant of the Property shall make such rents payable to and pay such rents
to Lender or Lender's agents on Lender's written demand to each tenant therefor, delivered
to each tenant personally, by mail or by delivering such demand to each rental unit,
without any liability on the part of said tenant to inquire further as to the existence of
a default by Borrower.
Borrower hereby covenants that Borrower has not executed any prior
assignment of said rents, that Borrower has not performed, and will not perform, any acts
or has not executed, and will not execute, any instrument which would prevent Lender from
exercising its rights under this paragraph 26, and that at the time of execution of this
Instrument there has been no anticipation or prepayment of any of the rents of the
Property for more than two months prior to the due dates of such rents. Borrower covenants
that Borrower will not hereafter collect or accept payment of any rents of the Property
more than two months prior to the due dates of such rents. Borrower further covenants that
Borrower will execute and deliver to Lender such further assignments of rents and revenues
of the Property as Lender may from time to time request.
Upon Borrower's breach of any covenant or agreement of Borrower in this
Instrument, Lender may in person, by agent or by a court-appointed receiver, regardless of
the adequacy of Lender's security, enter upon and take and maintain full control of the
Property in order to perform all acts necessary and appropriate for the operation and
maintenance thereof including, but not limited to, the execution, cancellation or
modification of leases, the collection of all rents and revenues of the Property, the
making of repairs to the Property and the execution or termination of contracts providing
for the management or maintenance of the Property, all on such terms as are deemed best to
protect the security of this Instrument. In the event Lender elects to seek the
appointment of a receiver for the Property upon Borrower's breach of any covenant or
agreement of Borrower in this Instrument, Borrower hereby expressly consents to the
appointment of such receiver. Lender or the receiver shall be entitled to receive a
reasonable fee for so managing the Property.
All rents and revenues collected subsequent to delivery of written
notice by Lender to Borrower of the breach by Borrower of any covenant or agreement of
Borrower in this Instrument shall be applied first to the costs, if any, of taking control
of and managing the Property and collecting the rents, including, but not limited to,
attorney's fees, receiver's fees, premiums on receiver's bonds, costs of repairs to the
Property, premiums on insurance policies, taxes, assessments and other charges on the
Property, and the costs of discharging any obligation or liability of Borrower as lessor
or landlord of the Property and then to the sums secured by this Instrument. Lender or the
receiver shall have access to the books and records used in the operation and maintenance
of the Property and shall be liable to account only for those rents actually received.
Lender shall not be liable to Borrower, anyone claiming under or through Borrower or
anyone having an interest in the Property by reason of anything done or left undone by
Lender under this paragraph 26.
If the rents of the Property are not sufficient to meet the costs, if
any, of taking control of and managing the Property and collecting the rents, any funds
expended by Lender for such purposes shall become indebtedness of Borrower to Lender
secured by this Instrument pursuant to paragraph 8 hereof. Unless Lender and Borrower
agree in writing to other terms of payment, such amounts shall be payable upon notice from
Lender to Borrower requesting payment thereof and shall bear interest from the date of
disbursement at the rate stated in the Note unless payment of interest at such rate would
be contrary to applicable law, in which event such amounts shall bear interest at the
highest rate which may be collected from Borrower under applicable law.
Any entering upon and taking and maintaining of control of the Property
by Lender or the receiver and any application of rents as provided herein shall not cure
or waive any default hereunder or invalidate any other right or remedy of Lender under
applicable law or provided herein. This assignment of rents of the Property shall
terminate at such time as this Instrument ceases to secure indebtedness held by Lender.
IN WITNESS THEREOF, BORROWER has executed this addendum to the Note and
Mortgage.
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