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Mortgage And Security Agreement Template for New Zealand

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Key Requirements PROMPT example:

Mortgage And Security Agreement

"I need a Mortgage and Security Agreement for a residential property in Auckland, New Zealand, where the borrower is a first-time home buyer taking a loan of NZD 800,000 with completion planned for March 2025, including standard consumer protection clauses and a guarantor provision."

Document background
This Mortgage and Security Agreement is designed for use in New Zealand property financing transactions, whether residential or commercial. It complies with key legislation including the Property Law Act 2007, Land Transfer Act 2017, and where applicable, the Credit Contracts and Consumer Finance Act 2003. The document creates a registrable security interest over real property, securing the mortgagor's obligations to repay borrowed funds and perform related covenants. It includes provisions for property maintenance, insurance requirements, payment terms, default scenarios, and enforcement rights. The agreement can be customized for various lending scenarios, from simple residential mortgages to complex commercial property financing structures.
Suggested Sections

1. Parties: Identification of the mortgagor (borrower) and mortgagee (lender)

2. Background: Context of the mortgage arrangement, reference to facility agreement if separate, and property details

3. Definitions and Interpretation: Key terms used in the agreement, including property definitions, secured amounts, and relevant dates

4. Loan Amount and Interest: Details of the principal sum, interest rate calculations, and payment terms

5. Grant of Mortgage: Legal creation of the mortgage over the property

6. Security Interest: Creation of security interest and specification of secured property

7. Mortgagor's Covenants: Core obligations including property maintenance, insurance, rates payment, and compliance with laws

8. Representations and Warranties: Mortgagor's confirmations regarding property ownership, authority, and absence of encumbrances

9. Events of Default: Circumstances constituting default, including payment defaults, breach of covenants, and insolvency events

10. Enforcement Rights: Mortgagee's rights and powers upon default, including power of sale

11. Costs and Indemnities: Allocation of costs and mortgagor's indemnification obligations

12. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction

Optional Sections

1. Guarantee: Required when there is a guarantor securing the mortgage obligations

2. Cross-Collateralization: Used when multiple properties or securities are cross-securing multiple facilities

3. Property Development Provisions: Required for properties under development, including construction covenants and staged funding

4. Environmental Matters: Detailed environmental provisions for commercial properties or known environmental risks

5. Leasing Provisions: Required when the property is or may be leased, including restrictions and requirements

6. Unit Title Provisions: Specific provisions required for unit title properties under Unit Titles Act 2010

7. Farm Provisions: Specific provisions for rural properties including stock mortgage and farming covenants

8. Priority Arrangements: Required when there are multiple security holders requiring priority arrangements

Suggested Schedules

1. Property Schedule: Detailed description of the mortgaged property including title references

2. Payment Schedule: Repayment schedule including payment dates, amounts, and interest calculations

3. Insurance Requirements: Detailed insurance requirements including types, amounts, and named insureds

4. Fees Schedule: Schedule of fees and charges associated with the mortgage

5. Initial Disclosure Statement: CCCFA-compliant initial disclosure for consumer loans

6. Guarantor Schedule: Details of guarantors and guaranteed obligations if applicable

7. Existing Encumbrances: List of permitted existing encumbrances on the property

8. Special Conditions: Any special conditions or variations to standard terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































































Clauses






































Relevant Industries

Banking and Financial Services

Real Estate

Property Development

Residential Housing

Commercial Property

Agricultural and Rural

Construction

Legal Services

Property Investment

Retail Banking

Relevant Teams

Legal

Credit Risk

Retail Banking

Commercial Banking

Compliance

Property Finance

Mortgage Operations

Securities Administration

Documentation

Risk Management

Relationship Management

Settlement Operations

Credit Assessment

Property Services

Customer Service

Relevant Roles

Credit Manager

Lending Manager

Property Lawyer

Banking Lawyer

Risk Manager

Mortgage Broker

Property Manager

Commercial Banking Manager

Retail Banking Manager

Legal Counsel

Compliance Officer

Credit Risk Officer

Real Estate Agent

Property Developer

Financial Advisor

Loan Officer

Settlement Officer

Security Trustee Officer

Documentation Specialist

Relationship Manager

Industries










Teams

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