MORTGAGE AGREEMENT (KANSAS)

(Real Estate Mortgage & Security Instrument)

[// GUIDANCE: This template is drafted for Kansas real property secured transactions. Customize bracketed items and review all state-specific provisions (Articles VI-1, VI-2, VI-3) for compliance with current Kansas statutes and local practice before execution and recording.]

TABLE OF CONTENTS

1. Article I – Document Header
2. Article II – Definitions
3. Article III – Operative Provisions
   3.1 Grant of Mortgage
   3.2 Secured Obligations
   3.3 Conditions Precedent
4. Article IV – Representations and Warranties
5. Article V – Covenants and Restrictions
6. Article VI – Default and Remedies
   6.1 Events of Default
   6.2 Foreclosure Procedures (KS)
   6.3 Right of Redemption (KS)
   6.4 Deficiency Judgment Rules (KS)
7. Article VII – Risk Allocation
8. Article VIII – Dispute Resolution
9. Article IX – General Provisions
10. Article X – Execution Block

ARTICLE I – DOCUMENT HEADER

1.01 Parties

This Mortgage Agreement (“Mortgage”) is made and entered into as of [EFFECTIVE DATE] (the “Effective Date”) by and between:

a. [MORTGAGOR NAME], a [STATE] [ENTITY TYPE/INDIVIDUAL], having an address at [MORTGAGOR ADDRESS] (“Mortgagor” or “Borrower”); and
b. [MORTGAGEE NAME], a [STATE] [BANK/CORPORATION] with its principal place of business at [MORTGAGEE ADDRESS] (“Mortgagee” or “Lender”).

1.02 Recitals

A. Mortgagee has agreed to extend credit to Mortgagor in the original principal amount of [LOAN AMOUNT] (the “Loan”), evidenced by that certain Promissory Note dated as of the Effective Date (together with all renewals, modifications, and extensions, the “Note”).
B. As a condition precedent to the Loan, Mortgagor desires to grant to Mortgagee a first-priority mortgage lien on the Premises (defined below) to secure the Secured Obligations.
C. The parties intend this Mortgage to be governed by the laws of the State of Kansas and to be recorded in the [COUNTY] County Register of Deeds.

NOW, THEREFORE, in consideration of the mutual covenants herein and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

ARTICLE II – DEFINITIONS

For ease of reference, capitalized terms have the respective meanings set forth below. Any term not defined herein shall have the meaning given in the Uniform Commercial Code as adopted in Kansas (the “UCC”) unless the context otherwise requires.

“Affiliate,” “Business Day,” “Event of Default,” “Hazardous Materials,” “Indebtedness,” “Premises,” “Receiver,” “Secured Obligations,” and all additional defined terms are listed alphabetically below.

a. “Affiliate” – Any person or entity that directly or indirectly controls, is controlled by, or is under common control with the referenced party.
b. “Business Day” – Any day other than a Saturday, Sunday, or legal holiday in the State of Kansas.
c. “Event of Default” – Any of the occurrences described in Article VI, Section 6.1.
d. “Hazardous Materials” – Any substance regulated by federal or Kansas environmental law, including petroleum and petroleum-based products.
e. “Indebtedness” – The unpaid principal of, interest on, and all other amounts payable under the Note and any other Loan Documents.
f. “Premises” – The real property located at [PROPERTY ADDRESS], more particularly described in Exhibit A attached hereto (the “Land”), together with (i) all buildings, structures, fixtures, and improvements now or hereafter located thereon; (ii) all easements, rights-of-way, water rights, and hereditaments appurtenant thereto; and (iii) all rents, issues, profits, and proceeds thereof.
g. “Receiver” – A receiver appointed pursuant to applicable Kansas law.
h. “Secured Obligations” – All present and future Indebtedness and obligations of Mortgagor to Mortgagee, whether under the Note, this Mortgage, or any related agreement.

[// GUIDANCE: Add additional defined terms as needed for complex transactions.]

ARTICLE III – OPERATIVE PROVISIONS

3.1 Grant of Mortgage

For the purpose of securing the full and punctual payment and performance of the Secured Obligations, Mortgagor hereby grants, bargains, mortgages, and conveys to Mortgagee, with power of judicial foreclosure, a first and prior lien on and security interest in the Premises, TO HAVE AND TO HOLD the Premises unto Mortgagee, its successors and assigns, forever.

3.2 Secured Obligations

This Mortgage secures (i) payment of the Note; (ii) all modifications, renewals, and extensions thereof; (iii) all advances made by Mortgagee to protect or preserve the Premises or its lien position (including taxes, insurance, and maintenance); and (iv) all costs of enforcement, including reasonable attorneys’ fees.

3.3 Conditions Precedent

Mortgagee’s obligations to fund any portion of the Loan are subject to satisfaction (or waiver by Mortgagee) of all closing conditions in the Loan Documents, including delivery of (i) satisfactory title insurance, (ii) evidence of hazard insurance naming Mortgagee as mortgagee and loss payee, and (iii) duly executed originals of this Mortgage suitable for recording.

ARTICLE IV – REPRESENTATIONS AND WARRANTIES

Mortgagor represents and warrants to Mortgagee, as of the Effective Date and continuing thereafter:

4.1 Title. Mortgagor is the fee simple owner of the Premises and has full right to mortgage same; title is free of all liens except those listed on Schedule 4.1.
4.2 Authority. Mortgagor (and, if applicable, each entity comprising Mortgagor) is duly organized, validly existing, and authorized to execute and deliver this Mortgage.
4.3 Enforceability. This Mortgage constitutes a legal, valid, and binding obligation of Mortgagor, enforceable against Mortgagor in accordance with its terms.
4.4 Compliance. The Premises comply in all material respects with applicable zoning, building, fire, health, and environmental laws.
4.5 No Litigation. Except as disclosed on Schedule 4.5, there is no pending or threatened litigation affecting the Premises or Mortgagor that would materially impair Mortgagor’s performance hereunder.
4.6 Hazardous Materials. Mortgagor has no knowledge of any release or threatened release of Hazardous Materials on the Premises not previously disclosed to Mortgagee in writing.

All representations and warranties shall survive recordation and shall be deemed remade on each date any portion of the Loan remains outstanding.

ARTICLE V – COVENANTS AND RESTRICTIONS

Mortgagor covenants and agrees:

5.1 Payment and Performance. To pay when due all amounts under the Secured Obligations and perform all other obligations contained in the Loan Documents.
5.2 Taxes and Assessments. To pay prior to delinquency all real estate taxes, assessments, and other governmental charges affecting the Premises.
5.3 Insurance. To maintain insurance of such types and in such amounts as Mortgagee may reasonably require, naming Mortgagee as mortgagee and loss payee via a standard mortgagee endorsement.
5.4 Maintenance. To keep the Premises in good repair and condition, free from waste, and in compliance with all laws.
5.5 Financial Reporting. To furnish Mortgagee with annual financial statements and such other information as Mortgagee may reasonably request.
5.6 Transfer Restrictions. Not to sell, convey, lease (other than bona fide arms-length residential leases), or otherwise transfer any interest in the Premises or in Mortgagor without Mortgagee’s prior written consent, except as expressly permitted in Schedule 5.6.
5.7 Additional Liens. Not to create or permit any lien or encumbrance on the Premises other than Permitted Encumbrances.
5.8 Further Assurances. To execute, acknowledge, and deliver such further instruments as Mortgagee may reasonably require to carry out the intent of this Mortgage.

ARTICLE VI – DEFAULT AND REMEDIES

6.1 Events of Default

An “Event of Default” exists if any of the following occurs:
a. Non-payment of any amount under the Note or other Secured Obligations within [10] days after written notice;
b. Breach of any covenant, representation, or warranty contained herein or in any Loan Document and failure to cure within [30] days after notice;
c. Filing of bankruptcy, insolvency, or similar proceedings by or against Mortgagor;
d. Abandonment, waste, or material impairment of the Premises;
e. Entry of any judgment or levy against the Premises not bonded off within [30] days.

6.2 Foreclosure Procedures (Kansas Specific)

Upon any Event of Default, Mortgagee may accelerate the Note and exercise judicial foreclosure pursuant to Chapter 60, Article 24 of the Kansas Statutes Annotated. Mortgagee may request:
1. Entry of a judgment of foreclosure and sale of the Premises by the county sheriff;
2. Appointment of a Receiver to collect rents; and
3. Application of sale proceeds to the Secured Obligations, costs, and fees.

[// GUIDANCE: Kansas does not permit non-judicial “power of sale” foreclosure. Retain judicial language only.]

6.3 Right of Redemption (Kansas Specific)

Mortgagor acknowledges that, under Kansas law, a statutory right of redemption exists following foreclosure sale, typically lasting twelve (12) months, which the court may shorten to three (3) months in certain circumstances (e.g., when the sale price equals or exceeds two-thirds of the total debt). Mortgagor [select one]:
☐ retains all statutory redemption rights; – OR –
☐ WAIVES the statutory redemption period to the fullest extent permitted by K.S.A. § 60-2414, in exchange for independent consideration, receipt of which is acknowledged.

[// GUIDANCE: Kansas courts strictly scrutinize redemption waivers; ensure separate consideration and conspicuous text.]

6.4 Deficiency Judgment Rules (Kansas Specific)

If the foreclosure sale proceeds are insufficient to satisfy the Secured Obligations, Mortgagee may seek a deficiency judgment for the remaining balance, subject to Kansas procedural requirements (including valuation affidavits). Any deficiency judgment shall bear interest at the rate specified in the Note.

6.5 Additional Remedies

Mortgagee may, without waiver of any other remedy:
a. Enter and take possession of the Premises to protect its security;
b. Collect and apply rents, issues, and profits;
c. Offset any deposits or funds held by Mortgagee; and
d. Recover all expenses of enforcement, including reasonable attorneys’ fees and court costs, all of which shall be added to the Secured Obligations.

ARTICLE VII – RISK ALLOCATION

7.1 Indemnification (Borrower Obligations)

Mortgagor shall indemnify, defend, and hold harmless Mortgagee and its Affiliates, and their respective officers, directors, employees, and agents (each, an “Indemnified Party”), from and against any and all claims, losses, liabilities, damages, penalties, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to (i) Mortgagor’s ownership, operation, or use of the Premises, (ii) any breach of this Mortgage or the Loan Documents, or (iii) the presence or release of Hazardous Materials at the Premises, except to the extent caused by the gross negligence or willful misconduct of an Indemnified Party.

7.2 Limitation of Liability (Secured Debt Amount Cap)

Notwithstanding anything herein to the contrary, the aggregate liability of Mortgagor under the indemnities contained in this Article VII shall not exceed the Secured Debt Amount outstanding at the time the indemnity claim arises; provided, however, that the foregoing cap shall NOT apply to (a) loss or damage arising from fraud, intentional misrepresentation, or willful misconduct, or (b) environmental liabilities under Section 7.1(iii).

7.3 Insurance Requirements

Mortgagor shall maintain:
a. All-risk property insurance covering 100% replacement cost;
b. Commercial general liability insurance in an amount not less than [INSURANCE AMOUNT] per occurrence;
c. Flood insurance if the Premises is in a designated flood zone; and
d. Such additional coverage as Mortgagee may reasonably require.

7.4 Force Majeure

If Mortgagor is prevented from performing any non-monetary obligation due to events beyond its reasonable control (excluding financial inability), performance shall be excused for the period of delay, provided Mortgagor gives prompt written notice and diligently endeavors to resume performance.

ARTICLE VIII – DISPUTE RESOLUTION

8.1 Governing Law. This Mortgage and the Loan Documents shall be governed by and construed in accordance with the laws of the State of Kansas, without regard to conflict-of-laws principles.
8.2 Forum Selection. Each party submits to the exclusive jurisdiction of the state courts located in [COUNTY] County, Kansas, and waives any objection based on venue or forum non conveniens.
8.3 Arbitration. Arbitration is expressly excluded.
8.4 Jury Waiver. [OPTIONAL – INSERT IF PERMITTED BY COUNSEL] TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY WAIVES TRIAL BY JURY IN ANY ACTION ARISING OUT OF THIS MORTGAGE.
8.5 Injunctive Relief. Mortgagee’s right to foreclose or seek specific performance, appointment of a Receiver, or other equitable relief is preserved and shall not be impaired by any other remedy elected.

ARTICLE IX – GENERAL PROVISIONS

9.1 Amendments and Waivers. No amendment or waiver shall be effective unless in a writing signed by the party against whom enforcement is sought.
9.2 Assignment. Mortgagee may assign this Mortgage and the Loan Documents without Mortgagor’s consent. Mortgagor may not assign or delegate any rights or obligations without Mortgagee’s prior written consent.
9.3 Successors and Assigns. This Mortgage binds and benefits the parties and their respective successors and permitted assigns.
9.4 Severability. If any provision is held unenforceable, the remaining provisions shall remain in full force, and the court shall modify the unenforceable provision to the minimum extent necessary to render it valid.
9.5 Integration. The Loan Documents constitute the entire agreement between the parties regarding the subject matter and supersede all prior discussions and writings.
9.6 Counterparts; Electronic Signatures. This Mortgage may be executed in counterparts, each of which is deemed an original, and all of which constitute one instrument. Signatures transmitted by electronic means shall be deemed originals for all purposes.
9.7 Recording. Mortgagor shall pay all recording taxes, fees, and costs associated with recordation of this Mortgage.
9.8 Notices. All notices must be in writing and delivered (i) by personal delivery, (ii) by nationally-recognized overnight courier, or (iii) by certified mail, return receipt requested, to the addresses in Section 1.01, or such other address as a party designates by notice.

ARTICLE X – EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Mortgage as of the Effective Date.

MORTGAGOR:

[ENTITY/INDIVIDUAL NAME]
By: ____
Name: ____
Title: _________

MORTGAGEE:

[ENTITY NAME]
By: ____
Name: ____
Title: _________

ACKNOWLEDGMENTS

State of ___ )
County of ___ )

On this _ day of __, 20__, before me, a Notary Public in and for said State, personally appeared _______, known to me (or satisfactorily proven) to be the person(s) whose name(s) is/are subscribed to the foregoing Mortgage and acknowledged that he/she/they executed the same for the purposes therein contained.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written.

Notary Public
My Commission Expires: _______

[// GUIDANCE: Use separate acknowledgment blocks for each signatory if required by local recording office.]

EXHIBIT A

(Legal Description of the Premises)

[INSERT METES-AND-BOUNDS OR PLATTED DESCRIPTION]

SCHEDULES

Schedule 4.1 – Permitted Encumbrances
Schedule 4.5 – Litigation
Schedule 5.6 – Permitted Transfers

[// GUIDANCE: Record this Mortgage promptly after execution. Double-check legal description, names, and acknowledgment language to comply with Kansas recording standards. Consult local counsel regarding documentary tax, if applicable.]