IMPORTANT NOTICE
This template is provided solely for informational purposes to assist licensed attorneys in preparing an Oklahoma-law mortgage. It is not legal advice. Review, revise, and tailor every provision to the specific transaction and consult current Oklahoma statutes, local recording requirements, and professional judgment before use.
MORTGAGE (OKLAHOMA)
(With Power of Sale and Right of Redemption Provisions)
TABLE OF CONTENTS
- Document Header
- Definitions
- Grant of Mortgage and Secured Obligations
- Representations and Warranties
- Covenants
- Defaults and Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
1. DOCUMENT HEADER
This Mortgage (this “Security Instrument”) is made as of [EFFECTIVE DATE], by and between:
- [BORROWER LEGAL NAME], a [state and form of entity/natural person], whose mailing address is [Borrower Address] (“Borrower”); and
- [LENDER LEGAL NAME], a [state and form of entity], whose mailing address is [Lender Address] (“Lender”).
Recitals
A. Borrower is indebted to Lender under that certain Promissory Note dated [Note Date] in the original principal amount of $[Principal Amount] (the “Note”).
B. Borrower is the fee simple owner of certain real property located in [County], Oklahoma and more fully described in Exhibit A attached hereto (the “Property”).
C. Borrower desires to secure payment and performance of the Obligations (defined below) by granting Lender a first-priority mortgage lien upon the Property.
NOW, THEREFORE, in consideration of the indebtedness evidenced by the Note and other valuable consideration, the parties agree as follows:
2. DEFINITIONS
For purposes of this Security Instrument, the following terms shall have the meanings set forth below. All capitalized terms not defined herein shall have the meanings assigned in the Note.
“Applicable Law” means all federal, state, and local statutes, regulations, ordinances, and judicial decisions governing or affecting this Security Instrument or the Property, including, without limitation, Title 46 of the Oklahoma Statutes (Mortgages) and Title 12 of the Oklahoma Statutes (Judicial Foreclosure).
“Collateral” means collectively (a) the Property; (b) all buildings, fixtures, and improvements now or hereafter erected thereon; (c) all leases, rents, and income; and (d) all proceeds thereof.
“Default Rate” has the meaning given in the Note.
“Event of Default” has the meaning set forth in Section 6.1.
“Obligations” means (a) all principal, interest, fees, costs, and other amounts now or hereafter owing under the Note; (b) all obligations under this Security Instrument; and (c) all renewals, extensions, modifications, or substitutions thereof.
“Secured Debt Amount” means, at any time, the then-outstanding Obligations, not to exceed $[MAXIMUM SECURED AMOUNT].
3. GRANT OF MORTGAGE AND SECURED OBLIGATIONS
3.1 Grant. Borrower hereby grants, bargains, sells, conveys, mortgages, assigns, and warrants to Lender, with power of sale, all of Borrower’s right, title, and interest in and to the Collateral, to secure prompt payment and performance of the Obligations.
3.2 Fixture Filing. This Security Instrument constitutes a financing statement filed as a fixture filing under Article 9 of the Uniform Commercial Code.
3.3 Absolute Assignment of Rents. Borrower hereby absolutely assigns to Lender all present and future Leases and Rents of the Property as additional security. Lender grants to Borrower a revocable license to collect and retain Rents until an Event of Default.
3.4 Maximum Liability. Lender’s recourse shall be limited to the Collateral, and Borrower’s liability shall not exceed the Secured Debt Amount except as otherwise provided in Section 7.2 (Indemnification).
[// GUIDANCE: Insert legal description in Exhibit A using precise metes-and-bounds or recorded plat references. Attach survey if required by title insurer.]
4. REPRESENTATIONS AND WARRANTIES
Borrower represents and warrants to Lender, on the date hereof and continuing until the Obligations are paid in full:
4.1 Authority and Enforceability. Borrower has full power and authority to execute, deliver, and perform this Security Instrument, which constitutes the legal, valid, and binding obligation of Borrower.
4.2 Title. Borrower holds good and marketable fee simple title to the Property, free and clear of all liens except those shown in Schedule 1 attached hereto.
4.3 Compliance. The Property and its current use comply in all material respects with Applicable Law, including zoning, building code, and environmental regulations.
4.4 No Litigation. Except as disclosed in Schedule 2, no litigation or proceeding materially affecting the Property or Borrower’s ability to perform the Obligations is pending or threatened.
4.5 Taxes. All real property taxes and assessments on the Property due as of the date hereof have been paid or will be paid with proceeds of the initial loan advance.
Representations and warranties shall survive the recordation of this Security Instrument and any foreclosure.
5. COVENANTS
5.1 Payment and Performance. Borrower shall punctually pay and perform all Obligations.
5.2 Preservation of Property. Borrower shall (a) keep the Property in good repair; (b) not commit waste; (c) comply with all Applicable Law; and (d) keep the Property insured as required by Section 7.3.
5.3 Taxes and Assessments. Borrower shall pay, prior to delinquency, all taxes, assessments, and other governmental charges on or against the Property.
5.4 Further Assurances. Upon Lender’s request, Borrower shall execute and deliver such further instruments as may be necessary to perfect or continue the lien of this Security Instrument.
5.5 Negative Covenants. Without Lender’s prior written consent, Borrower shall not:
(a) create or permit any lien on the Property senior or pari passu to this Security Instrument;
(b) transfer any interest in the Property except as expressly permitted herein; or
(c) alter the Property in any manner that materially reduces its value.
5.6 Notice and Cure. Borrower shall promptly notify Lender of any Event of Default, casualty, or condemnation affecting the Property, and shall cure the same within the applicable period set forth in Section 6.2.
6. DEFAULTS AND REMEDIES
6.1 Events of Default. Each of the following constitutes an Event of Default:
(a) Failure to pay any sum due under the Note or this Security Instrument within [NUMBER] days after its due date;
(b) Breach of any covenant, representation, or warranty herein, if not cured within [30] days after written notice;
(c) Insolvency, bankruptcy, or assignment for the benefit of creditors by Borrower;
(d) Material impairment of the Collateral or Lender’s security.
6.2 Cure Periods. If a non-monetary default cannot reasonably be cured within 30 days, Borrower may have up to an additional 60 days to cure, provided Borrower commences cure within the initial 30-day period and diligently prosecutes the cure.
6.3 Remedies. Upon an Event of Default, Lender may, at its option and without further demand:
(a) Accelerate the Obligations;
(b) Enter and take possession of the Property;
(c) Collect rents directly;
(d) Commence judicial foreclosure in accordance with Oklahoma law;
(e) Exercise the power of sale after compliance with 12 O.S. §§ 686–688 foreclosure procedures;
(f) Seek appointment of a receiver;
(g) Pursue all other rights and remedies available at law or in equity.
6.4 Foreclosure Sale. Any foreclosure sale shall (i) be held in the county where the Property is located; (ii) be advertised and noticed as required by Oklahoma law; and (iii) permit Borrower’s statutory right of redemption, which shall not be waived.
6.5 Deficiency Judgment. If the foreclosure proceeds are insufficient to satisfy the Obligations, Lender may seek a deficiency judgment, provided such action is filed within the time permitted by Oklahoma law (currently 90 days after confirmation of sale).
6.6 Application of Proceeds. Sale proceeds shall be applied: (1) to costs of sale, including reasonable attorneys’ fees; (2) to the Obligations in such order as Lender may elect; and (3) the surplus, if any, to Borrower or as otherwise required by law.
6.7 Attorneys’ Fees and Costs. Borrower shall pay all reasonable attorneys’ fees and costs incurred by Lender in enforcing this Security Instrument.
[// GUIDANCE: Oklahoma is a judicial foreclosure state by default. Include power-of-sale language only if counsel confirms statutory compliance and title insurer acceptance.]
7. RISK ALLOCATION
7.1 Limitation of Liability. Borrower’s aggregate liability shall not exceed the Secured Debt Amount, except for (a) fraud or intentional misrepresentation; (b) waste; (c) misapplication of insurance or condemnation proceeds; (d) environmental indemnity under Section 7.2.
7.2 Indemnification. Borrower shall indemnify, defend, and hold harmless Lender and its affiliates from any loss, damage, or liability (including reasonable attorneys’ fees) arising out of:
(a) Borrower’s breach of this Security Instrument;
(b) Claims relating to the ownership, condition, or operation of the Property;
(c) Environmental contamination (regardless of fault).
7.3 Insurance. Borrower shall maintain (a) all-risk property insurance in an amount not less than the full replacement cost of the improvements; (b) public liability insurance with limits of no less than $[Amount] per occurrence; and (c) such additional coverages as Lender may reasonably require. Policies shall name Lender as mortgagee (loss payee) and provide at least 30 days’ prior written notice of cancellation.
7.4 Force Majeure. Performance deadlines (other than payment obligations) shall be extended to the extent delayed by events beyond the reasonable control of the affected party, including acts of God, war, governmental action, or natural disasters, provided such party gives prompt notice and resumes performance when possible.
8. DISPUTE RESOLUTION
8.1 Governing Law. This Security Instrument shall be governed by and construed in accordance with the laws of the State of Oklahoma, without regard to conflict-of-law rules.
8.2 Forum Selection. Borrower and Lender irrevocably submit to the exclusive jurisdiction of state courts located in [County], Oklahoma for any action arising out of or related to this Security Instrument.
8.3 Arbitration. The parties expressly exclude arbitration.
8.4 Jury Trial Waiver. [OPTIONAL] TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, THE PARTIES WAIVE TRIAL BY JURY IN ANY ACTION RELATING TO THIS SECURITY INSTRUMENT.
[// GUIDANCE: Oklahoma permits contractual jury waivers in commercial transactions; delete or retain based on client preference.]
8.5 Injunctive Relief. Notwithstanding any other provision, Lender may seek injunctive or equitable relief (including foreclosure) without posting bond as a condition precedent.
9. GENERAL PROVISIONS
9.1 Amendments; Waivers. No amendment or waiver shall be effective unless in writing signed by the party against whom enforcement is sought. A waiver on one occasion is not a waiver on any other occasion.
9.2 Assignment. Lender may assign this Security Instrument and the Obligations, in whole or in part, without Borrower’s consent. Borrower may not assign its rights or delegate its duties without Lender’s prior written consent.
9.3 Successors and Assigns. This Security Instrument binds and benefits the parties and their respective successors and permitted assigns.
9.4 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it valid.
9.5 Integration. This Security Instrument, the Note, and the other Loan Documents constitute the entire agreement between the parties concerning the subject matter and supersede all prior oral or written agreements.
9.6 Notices. All notices shall be in writing and deemed given when delivered (a) by hand, (b) by nationally recognized overnight courier, or (c) three business days after deposit in certified U.S. mail, return receipt requested, in each case addressed as set forth in the Document Header (or such other address as a party designates).
9.7 Counterparts; Electronic Signatures. This Security Instrument may be executed in counterparts, each of which is deemed an original, but all of which constitute one and the same instrument. Signatures transmitted electronically (e.g., PDF) or by electronic signature platform shall be deemed originals.
9.8 Recording. Borrower shall promptly cause this Security Instrument, and any related assignments or modifications, to be recorded in the appropriate land records of [County], Oklahoma and shall pay all recording fees and taxes.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, Borrower has executed this Security Instrument as of the date first written above.
BORROWER:
[Borrower Legal Name]
By: ____
Name: ____
Title (if applicable): __
LENDER:
[Lender Legal Name]
By: ____
Name: ____
Title: _________
NOTARY ACKNOWLEDGMENT
State of Oklahoma )
County of ____)
On this ___ day of ____, 20__, before me, the undersigned Notary Public, personally appeared [Name(s) of Signatory(ies)], to me known to be the person(s) who executed the foregoing Mortgage and acknowledged that they executed the same for the purposes therein contained.
Witness my hand and official seal.
Notary Public
My Commission Expires: __
Commission No.: ____
EXHIBIT A
(Legal Description of Property)
SCHEDULE 1
(Permitted Liens)
SCHEDULE 2
(Disclosed Litigation)
[// GUIDANCE: Attach additional schedules as necessary, e.g., environmental reports, insurance certificates, or rent rolls.]
End of Document