MORTGAGE AGREEMENT
(Iowa – Single-Family / Non-Agricultural Real Property)
[// GUIDANCE: This template is drafted for a conventional, money-secured, first-priority real estate mortgage governed by the laws of the State of Iowa. Customize bracketed items and consult local counsel before use or recording.]
TABLE OF CONTENTS
I. Document Header
II. Definitions
III. Grant of Mortgage & Secured Obligations
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution & Acknowledgment
I. DOCUMENT HEADER
MORTGAGE (WITH POWER OF SALE WAIVED RIGHT OF REDEMPTION)
This Mortgage (“Mortgage”) is made as of [EFFECTIVE DATE] (“Effective Date”) by and between:
• Borrower / Mortgagor: [BORROWER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE OR “individual”], having an address at [BORROWER ADDRESS] (“Borrower”); and
• Lender / Mortgagee: [LENDER LEGAL NAME], a [STATE OF FORMATION] [BANK / LENDER TYPE], having an address at [LENDER ADDRESS] (“Lender”).
RECITALS
A. Borrower is indebted to Lender under that certain Promissory Note dated the Effective Date in the original principal amount of $[PRINCIPAL AMOUNT] (together with all extensions, renewals, amendments, modifications, and replacements, the “Note”).
B. Borrower desires to secure repayment and performance of the Note and all other Secured Obligations (defined below) with a first-priority lien on the Property (defined below).
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are acknowledged, Borrower irrevocably grants, bargains, sells, conveys, mortgages, and warrants to Lender the Property, upon the terms set forth herein.
[// GUIDANCE: In Iowa, the instrument must clearly state that it is a “Mortgage” and identify consideration. Include legal description and parcel number in Exhibit A for recording.]
II. DEFINITIONS
For ease of reference, the following capitalized terms have the meanings set forth below. Defined terms appear in alphabetical order and apply throughout this Mortgage:
“Advance” – Any disbursement made by Lender under the Note or this Mortgage.
“Applicable Law” – All federal, state, and local constitutions, statutes, regulations, and ordinances governing this Mortgage, including, without limitation, Iowa Code Chapters 615, 626, 628, 654, and the Iowa Uniform Commercial Code, as each may be amended.
“Collateral” – Collectively, (a) the Property, (b) all buildings, fixtures, and improvements now or later located thereon, (c) all easements, rights-of-way, and appurtenances, (d) all proceeds thereof, and (e) all Rents.
“Event of Default” – Any event described in Section VI.A.
“Indemnified Parties” – Lender, its successors, assigns, officers, directors, employees, and agents.
“Property” – The real property located in [COUNTY], State of Iowa, more particularly described in Exhibit A attached hereto, together with all Collateral.
“Rents” – All present and future rents, issues, profits, income, and royalties of the Property.
“Secured Obligations” – (i) the Debt evidenced by the Note, (ii) all obligations under this Mortgage, (iii) all obligations under any other Loan Documents, and (iv) all renewals, extensions, future advances (whether obligatory or discretionary), and expenses Lender incurs to protect the Collateral.
III. OPERATIVE PROVISIONS
3.1 Grant of Mortgage & Assignment of Rents
(a) As security for the full and punctual payment and performance of the Secured Obligations, Borrower hereby mortgages, conveys, and warrants the Property to Lender, with power of sale subject to judicial foreclosure procedures required by Iowa law.
(b) Borrower absolutely and presently assigns to Lender all Rents; provided, Lender grants Borrower a revocable license to collect and use Rents until an Event of Default.
3.2 Maximum Secured Amount
The total indebtedness secured shall not exceed $[SECURED DEBT AMOUNT], plus interest, fees, costs, and protective advances as permitted by Applicable Law.
3.3 Future Advances
This Mortgage shall secure all future advances made by Lender up to the Maximum Secured Amount, whether or not evidenced by a promissory note at the time of advance.
3.4 Conditions Precedent
Lender’s obligation to fund any Advance is conditioned upon (a) no existing Event of Default, (b) truth and accuracy of Borrower’s representations, and (c) satisfaction of all conditions in the Loan Documents.
3.5 Payments; Application
Payments shall be made in lawful money of the United States at the place and manner specified in the Note. Lender may apply payments and proceeds in such order as Lender determines, subject to Applicable Law.
IV. REPRESENTATIONS & WARRANTIES
Borrower represents and warrants on the Effective Date and continuing so long as any Secured Obligation remains outstanding:
4.1 Authority & Enforceability. Borrower has full power and authority to execute and deliver the Loan Documents and to mortgage the Property.
4.2 Title. Borrower holds fee simple title to the Property free of all liens except those approved by Lender in writing.
4.3 Compliance. The Property and its current use comply in all material respects with Applicable Law, including zoning, environmental, and building codes.
4.4 No Litigation. No pending or threatened litigation could materially and adversely affect the Property or Borrower’s ability to perform.
4.5 Financial Information. All financial statements delivered to Lender are accurate and complete in all material respects.
4.6 Survival. All representations and warranties survive closing and each Advance.
V. COVENANTS & RESTRICTIONS
Borrower covenants and agrees:
5.1 Payment & Performance. Borrower shall pay the Secured Obligations when due and comply with the Loan Documents.
5.2 Taxes & Assessments. Borrower shall pay prior to delinquency all taxes, assessments, and charges on the Property.
5.3 Insurance. Borrower shall keep the Property insured at all times against loss or damage by fire and other hazards in form and amount satisfactory to Lender, naming Lender as mortgagee and loss payee.
5.4 Maintenance. Borrower shall maintain the Property in good repair, make no waste, and comply with all Applicable Law.
5.5 Prohibition on Transfers. Borrower shall not sell, lease (except bona fide arms-length leases), convey, or further encumber the Property without Lender’s prior written consent.
5.6 Financial Reporting. Borrower shall deliver to Lender [ANNUAL / QUARTERLY] financial statements and other reports reasonably requested.
5.7 Notice of Material Events. Borrower shall promptly notify Lender of (a) any Event of Default, (b) material damage to the Property, or (c) any governmental or legal action affecting the Property.
VI. DEFAULT & REMEDIES
6.1 Events of Default
Each of the following constitutes an “Event of Default”:
(a) Non-payment of any amount due under the Secured Obligations within [GRACE PERIOD] days of due date;
(b) Breach of any covenant, representation, or warranty hereunder or under any Loan Document, not cured within [CURE PERIOD] days after notice;
(c) Insolvency, bankruptcy, or assignment for benefit of creditors by Borrower;
(d) Waste or deterioration of the Property;
(e) Any transfer or encumbrance in violation of Section 5.5.
6.2 Notice & Cure
Except for payment defaults, Lender shall give Borrower written notice of default and opportunity to cure within the applicable cure period before exercising remedies, unless acceleration is mandated by Applicable Law.
6.3 Remedies
Upon an Event of Default and expiration of any required cure period, Lender may, subject to Applicable Law:
(a) Accelerate the Secured Obligations and declare all sums immediately due and payable;
(b) Initiate a judicial foreclosure action pursuant to Iowa Code Chapter 654;
(c) Seek appointment of a receiver for the Property;
(d) Enter and take possession, collect Rents, and apply such Rents to the Secured Obligations;
(e) Exercise all rights and remedies available at law or in equity, including specific performance.
6.4 Foreclosure & Waiver of Redemption Rights
Borrower waives the right of redemption provided in Iowa Code §628.3 to the fullest extent permitted by law, except that for property classified as “agricultural land” (as defined by Iowa law), redemption rights may not be waived and shall remain as provided by statute.
[// GUIDANCE: Iowa permits contractual waiver to shorten the redemption period for non-agricultural property. If waiver or reduction is desired, insert specific statutory language authorized by Iowa Code §628.26.]
6.5 Deficiency Judgment
If foreclosure sale proceeds are insufficient to satisfy the Secured Obligations, Borrower shall remain liable for the deficiency, subject to any limitations imposed by Applicable Law (including Iowa’s consumer mortgage protections).
6.6 Attorneys’ Fees & Costs
Borrower shall pay all reasonable attorneys’ fees, court costs, and expenses incurred by Lender in enforcing the Loan Documents, whether or not litigation is commenced, to the maximum extent allowed by Iowa Code §625.22 et seq.
VII. RISK ALLOCATION
7.1 Indemnification
Borrower shall indemnify, defend, and hold harmless the Indemnified Parties from and against all claims, liabilities, losses, damages, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to (a) the Loan Documents, (b) the ownership, condition, or operation of the Property, or (c) any breach by Borrower, except to the extent caused by the gross negligence or willful misconduct of an Indemnified Party.
7.2 Limitation of Liability
Notwithstanding anything herein to the contrary, Lender’s liability to Borrower for any claim arising out of the Loan Documents shall in no event exceed the then-outstanding principal balance of the Secured Obligations, and Lender shall under no circumstances be liable for consequential, punitive, or special damages.
7.3 Environmental Matters
Borrower shall comply with all Environmental Laws and shall not use, generate, store, or dispose of hazardous materials on the Property, except in compliance with law. Borrower’s environmental indemnity survives release or satisfaction of this Mortgage.
7.4 Force Majeure
Neither party shall be liable for failure to perform non-monetary obligations caused by acts of God, war, pandemic, or other events beyond their reasonable control; provided, monetary obligations are never excused.
VIII. DISPUTE RESOLUTION
8.1 Governing Law. This Mortgage and the Secured Obligations shall be governed by and construed in accordance with the laws of the State of Iowa, without regard to conflict-of-law principles.
8.2 Forum Selection. Borrower irrevocably submits to the exclusive jurisdiction of the Iowa state courts located in [COUNTY] County.
8.3 Arbitration. The parties expressly exclude arbitration.
8.4 Jury Waiver. [OPTION 1 – Include if desired and enforceable: BORROWER AND LENDER HEREBY WAIVE THEIR RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING OUT OF THE LOAN DOCUMENTS.]
[// GUIDANCE: Include only after confirming enforceability under Iowa law and any consumer credit restrictions.]
8.5 Injunctive Relief. Nothing herein shall limit Lender’s right to seek equitable relief, including injunction or specific performance.
IX. GENERAL PROVISIONS
9.1 Amendments & Waivers. No amendment or waiver of any provision shall be effective unless in writing and signed by the party against whom enforcement is sought.
9.2 Assignment. Lender may assign the Loan Documents without Borrower’s consent; Borrower may not assign without Lender’s prior written consent.
9.3 Successors & Assigns. The Loan Documents bind and benefit the parties and their respective successors and permitted assigns.
9.4 Severability. If any provision is invalid or unenforceable, the remaining provisions shall remain in full force and effect, and the invalid provision shall be reformed to the minimum extent required.
9.5 Integration. The Loan Documents constitute the entire agreement between the parties concerning the subject matter and supersede all prior agreements.
9.6 Counterparts; Electronic Signatures. This Mortgage may be executed in counterparts (including by electronic means), each of which is deemed an original and all of which together constitute one instrument.
9.7 Recording. This Mortgage shall be recorded in the land records of [COUNTY] County, Iowa. Recording taxes and fees shall be paid by Borrower.
9.8 Further Assurances. Borrower shall execute and deliver any further documents or instruments reasonably requested by Lender to carry out the intent of the Loan Documents.
X. EXECUTION & ACKNOWLEDGMENT
IN WITNESS WHEREOF, the parties have executed this Mortgage as of the Effective Date.
BORROWER / MORTGAGOR:
[BORROWER LEGAL NAME]
By: _________
Name: [NAME]
Title: [IF APPLICABLE]
LENDER / MORTGAGEE:
[LENDER LEGAL NAME]
By: _________
Name: [NAME]
Title: [TITLE]
ACKNOWLEDGMENT (Individual)
State of Iowa )
County of [_] ) ss:
On this ___ day of ____, 20__, before me, the undersigned, a Notary Public in and for said State, personally appeared [BORROWER NAME], personally known to me (or proven on the basis of satisfactory evidence) to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he/she executed the same for the purposes therein contained.
Notary Public in and for the State of Iowa
My commission expires: ______
[// GUIDANCE: Modify acknowledgment for entities, include corporate authority statement, and add witness lines if local recording office requires.]
EXHIBIT A
Legal Description of Property
[INSERT FULL METES-AND-BOUNDS OR LOT-BLOCK-PLAT DESCRIPTION]
Parcel ID No.: [__]
[// GUIDANCE:
1. Attach Exhibit B for insurance requirements or disclosure schedules if needed.
2. For open-end mortgages securing future advances, include proper Iowa “maximum amount” notice on first page margin per recording guidelines.
3. Verify compliance with federal consumer disclosure laws (e.g., RESPA, TILA) for owner-occupied dwellings.]