Fillable Printable Building Loan Contract
Fillable Printable Building Loan Contract
Building Loan Contract
Page 1
— Building Loan Contract
CONSULT YOUR LAWYER BEFORE SIGNING THI S INSTRUMENT—THIS INSTRUMENT SHOULD BE USED BY LAWYERS ONLY.
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THIS AGREEMENT, made the day of in the year
BETWEEN
hereinafter referred to as the borrower, and
hereinafter referred to as the lender,
WHEREAS, the borrower has applied to the lender for a loan of
Dollars,
to be advanced as hereinafter provided and to be evidenced by the bond or note of the borrower for the payment
of said sum, or so much thereof as shall at any time be advanced thereon, on
with interest upon each amount so advanced from the date of such advance at the rate of
per centum per annum to be paid on the day of in the year and
thereafter; said bond or note to be secured by a mortgage on the
premises described as follows:
ALL that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate,
lying and being in the
TOGETHER with all right, title and interest of the mortgagor in and to the land lying in th e streets and roads in front
of and adjoining said premises;
TOGETHER with all fixtures, chattels and articles of personal property now or hereafter attached to or used
in connection with said premises, including but not limited to furnaces, boilers, oil burners, radiators and piping,
coal stokers, plumbing and bathroom fixtures, refrigeration, air conditioning and sprinkler systems, wash-tubs, sinks,
gas and electric fixtures, stoves, ranges, awnings, screens, window shades, elevators, motors, dynamos, refrigerators,
kitchen cabinets, incinerators, plants and shrubbery and all other equipment and machinery, appliances, fittings, and
fixtures of every kind in or used in the operation of the buildings standing on said premises, together with any and all
replacements thereof and additions thereto;
WHEREAS, the lender agrees to make said loan upon the terms, covenants and conditions hereinafter set forth, and the
borrower agrees to take said loan and expressly covenants to comply with and perform all of the terms, covenants and
conditions of this agreement,
NOW, THEREFORE, it is agreed between the parties as follows:
1. The borrower expressly covenants to make on said premises the improvement described below in accordance
with the plans and specifications therefor which, before the making of the first advance hereunder, the borrower agrees
to file with all governmental authorities having jurisdiction and to obtain all necessary approvals of said plans and
specifications and all necessary building permits from said authorities. The said plans and specifications shall first be
submitted to and approved by the lender in writing; and no changes or amendments thereto shall be made without
first obtaining the written approval of the lend er. The said improvement to be made shall be as follows:
2. With the approval of the lender, the loan may be evidenced by more than one bond or note aggregating the
amount of said loan and be secured by more than one mortgage each covering a portion of the said premises;
in that case reference herein made to the bond, note or mortgage shall be deemed to include all of the said bonds,
notes or mortgages.
3. With the approval of the lender, the bond or note and mortgage may, for the convenience of the borrower, be
written for a sum larger than the amount of the loan above specified, but in no case will the lender be obligated
to advance more than the amount of the loan so specified.
4. The said bond or note and mortgage shall be upon the standard forms promulgated by the former NEW YORK
BOARD OF TITLE UNDERWRITERS or, at the option of the lender, upon such other forms and containing such
clauses as the lender shall determine are needed for the lender’s protection, and the mortgage shall be executed and
acknowledged by all parties necessary to make it, as determined by the lender’s attorney, a valid lien on a good and
marketable title in fee to said premises and on th e said fixtures and personal property to be covered thereby for all sums
that may be advanced, free and clear of all liens, encumbrances and defects, except those, if any, to which the lender
has expressly agreed herein to take subject or which the lender may hereafter waive. The said bond or note and
mortgage are to be delivered on the day of in the year
at , at the office of
5. The borrower at the time of the execution of this agreement or, at the option of the lender, at the time fixed for
the delivery of the mortgage, shall pay all fees and charges agreed to be paid including the fees, if any, for the
procuring and making of said loan and the charges for the examination of the title to said premises, surveys,
appraisals, inspections and drawing of papers, and shall also pay the recording fees and mortgage recording tax and
cost of revenue stamps, if any, and architects’, engineers’ and building loan service fees.
6. The said loan is to be advanced at such times and in such amounts as the lender shall determine, but
tentatively in installments in accordance with the following schedule:
SCHEDULE OF PAYMENTS
The lender may, as provided in Paragraph 7 of this agreement, advance parts or the whole of any installments
before they become due in accordance with this schedule.
7. No advance shall be due unless, in the judgment of the lender, all work usually done at the stage of construction
when the advance is made payable be done in a good and workmanlike manner, and all materials and fixtures usually
furnished and installed at that time are furnished and installed, and unless all construction be approved by an engineer
or architect satisfactory to the lender, but the lender may advance parts or the whole of any installments before they
become due, if the lender believes it advisable so to do, and all such advances or payments shall be deemed to have
been made in pursuance of this agreement and not to be modifications thereof. The making of any advance or any part
of an advance shall not be deemed an approval or acceptance by the lender of the work theretofore done. Any advance
or installment of any part or parts thereof may be postponed or deferred by mutual consent of the borrower and the
lender, and any such postponement or postponements shall be deemed to be in pursuance of this agreement and not in
modification thereof. A receipt for any advance shall be binding on the borrower although signed by any one of the
individual parties constitu ting the borrower, any on e partner, if the borrower is a partn ership, and any one officer, if the
borrower is a corporation.
8. The lender may require five days’ notice in writing from the borrower before an advance shall be called for. All
advances are to be made at the office of the lender or at such other place as the lender shall designate.
9. The lender may at any time release portions of the mortgaged premises from the provisions of this agree ment and
from the mortgage executed and delivered pursuant thereto upon such terms and cond itions as the lender shall deem fit.
10. The lender may at any time extend the payment of the principal secured by said bond or note and mortgage, and
any extensions so granted shall be deemed made in pursuance of this agreement and not to be modifications thereof.
11. The borrower shall furnish to the lender, on or before the making of the final advance, the final certificates of
approval, including certificate of occupancy, of the various governmental authorities having jurisdiction and the
certificate of the Board of Fire Underwriters acting in and for the locality in which the said premises are situated.
12. The borrower shall furnish to the lender, or the lender may procure at the expense of the borrower, surveys made
by a surveyor satisfactory to th e lend er whenever required by the lender.
13. The borrower shall furnish to the lender, premiums prepaid, or the lender may procure at the expense of the
borrower, insurance policies in companies, forms and amounts satisfactory to such lender insuring the premises against
loss or damage by fire, with the usual extended coverage endorsement, and other hazards as may reasonably be required
by the lender.
14. The lender may at the expense of the borrower employ a watchman to protect the buildings and their contents from
depredation or injury.
15. If the construction of said buildings be at any time discontinued or not carried on with reasonable dispatch in the
judgment of lender, said lender may purchase materials and employ workmen to protect said buildings so that the same
will not suffer from depredation or the weather, o r to co mplete said bu ildin gs, so that th ey may be u sed for the pu rpos es
for which they are designed under the said plans and specifications.
16. All sums paid or expended in accordance with any of the foregoing provisions shall be deemed advances to the
borrower and secured by said bond or note and mortgage and may be applied, at the option of the lender, to any
advances thereafter becoming due.
17. The lender may deduct from any payment to be made under this agreement any amount necessary for the payment
of any fees and expenses relating to the examination of the title to said premises, including cost of surveys, ch arges for
appraisals, inspections, drawing of papers, mortgage recording tax, revenue stamps, if any, and architects’, engineers’
and building loan service fees, and any expenses incurred in the procuring or the making of the said loan, and in the
payment of any insurance premiums, mortgages, tax, assessment, water rate, sewer rents and other charges, liens and
encumbrances upon the said premises whether before or after the making of said loan and any other amounts necessary
for the payment of the cost of improvement as defined by the Lien Law, and apply such amounts in making said
payments, and all sums so applied shall be deemed advances under this agreement and secured by said bond or note and
mortgage.
18. The lender may cause said loan to be made by some other person or corporation. The bond or note and mortgage
shall then run to said person or corporation. The provisions of this agreement shall apply to such bond or note and
mortgage, and if the loan be so made, it shall be deemed a compliance by the lender with this agreement. The lender
may assign this agreement and the bond or note and mortgage and cause the assignee or any subsequent assignee to
make any advances not made at the time of the assignment, and all the provisions of this agreement shall continue to
apply to said loan and bond or note and mortgage. In case the loan is made in accordance with any of the methods
mentioned in this paragraph 18, it shall be deemed a compliance by the lender with this agreement and to have been
made pursuant thereto and not to be a modification thereof, and the advances so made shall be secured by said bond or
note and mortgage.
19. In the event of the death of the borrower while still holding title to the mortgaged premises, the lender may, at the
option of the lender, in case the work upon the said improvement is continued as provided in this ag reement, continue to
make advances under this agreement and subject to all its terms and conditions to the borrower’s executors or
administrators; and all sums so advanced by the lender shall be deemed advances under this agreement, and not to be
modifications thereof, as if made to the borrower in his lifetime, and shall be secured by said bond or note and
mortgage.
20. The borrower will not assign this contract or the moneys due thereunder or convey or encumber the property
without the written consent of the lender, but in such event the lender may nevertheless at the option of the lender
continue to make advances under this agreement to the borrower or to those who succeed to the borrower’s title; and all
sums so advanced by the lender shall be deemed advances under this agreement, and not to be modifications thereof,
and shall be secured by said bond or note and mortgage.
21. The borrower further agrees: (i) where stairs are required, to erect the permanent stairs with temporary treads as
rapidly as the framework erected will permit; (ii) to submit to the lender, for the lender’s approval the details of the
floor construction and framing plans befo re the contract therefor is let; (iii) to g ive the lender sufficient notice (a) when
tests of the plumbing and heating systems and structural work are to be made; any further tests required by the lender
are to be made by the contractors for such work under the direction of the lender at the expense of the borrower; (b) to
permit an examination of all bottoms before any foundation materials are placed or used; and (c) to make an inspection
after floor filling is completed and before the wood flooring is laid in each story.
22. In case city sewers have not been installed or the street or streets adjacent to the said premises have not been paved,
the borrower shall install and properly connect sewers of city specifications as to size and quality and shall pave such
street or streets so as to have the same conform to the established city grade thereof; and the borrower shall, upon
demand, furnish eviden ce satisfactory to the lender of co mpliance with the provisions hereof.
23. The borrower covenants and agrees not to do any act or thing prohibited by the terms of this agreement, and it is
expressly agreed that in any of the following ev ents all oblig ation on the part of the lender to make said lo an or to make
any further advance shall, if the lender so elect, cease and terminate, and the said bond or note and mortgage shall, at
the option of the lender, become immediately due and payable, but the lender may make any advances or parts of
advances after the happening of any of the following events without thereby waiving the right to demand payment of
the mortgage debt and without becoming liable to make any other or further advances:
(a) If the mortgage offered by the borrower does not give to the lender a good and sufficient lien for the
indebtedness to be secured thereby on said premises satisfactory to the lender’s attorney.
(b) If at the time any payment is due to the borrower th e title is not satisfactory to the lend er’s attorney, regardless
of whether the lien, encumbrance or other question existed at the time of any prior advance.
(c) If the borrower assigns this contract or any of said advances or any interest therein, or if said premises are
conveyed or encumbered in any way without the written consent of the lender, or if the borrower dies before
receiving the final advance hereunder.
(d) If a survey shows that the improvement on said premises encroaches upon the street or upon adjoining
property, or any adjoining structure encroaches upon said premises to an extent deemed material by the
lender’s attorney.
(e) If the borrower does not take the loan or the advances within thirty days after they are made pay able, or in
case where the payment of advances is dependent upon the erection of a new building, the building be not fully
enclosed within months from date hereof or in any event if the improvement be not fully
complete d and ready fo r occupancy within months from date hereof.
(f) If the improvement on said premises is, in the judgment of the lender, materially injured or destroyed by fire or
otherwise.
(g) If a petition in bankruptcy is filed by or against the borrower or a receiver or trustee of the property of the
borrower is appointed; or if the borrower files a petition for reorganization under any of the provisions of the
Bankruptcy Act or of any other law, state or federal, or makes an assignment for the benefit of creditors or is
adjudged insolvent by any state or federal court of competent Jurisdiction.
(h) If the borrower does not make said improvement in accordance with plans and specifications which are
previously furnished to and approved in writing by the lender and which have been filed with and approved by
all governmental authorities having jurisdiction, and in accordance with all laws, rules, regulations and
requirements of such governmental authorities existing at the commencement of the improvement and any
amendments thereof and additions thereto made with the written appro val of th e lender during th e construction
of the improvement or fails to file amended or supplemental plans and specifications, if required because of
such amendments and additions after first obtaining the written approval thereof by the fender and the approval
of such governmental authorities; o r if the borrower fails to furnish the lender with a written certificate issued
by the department of the governmental authority in the locality in which the property is situated having
jurisdiction thereof approving said plans and specifications and any amended and supplemented plans and
specifications whe re such departme nt has jurisdiction.
(i) If the owner of said premises does not permit the lender, or representatives of the lender to enter upon said
premises and inspect the improvement thereon at all reasonable times and examine all detailed plans, shop
drawings and specifications which are kept at the work, or fails to furnish to them, when requested, copies of
such plans, drawings and specifications.
(j) If for any cause whatever the construction of said improvement is at any time discontinued or not carried on
with reasonable dispatch in the judgment of the lender.
(k) If the borrower executes any chattel mortgage on any materials, fixtures or articles used in the con struction or
operation of the improvement or appurtenant thereto, or articles of personal property placed in said premises,
or if any such materials, fixtures or articles are not satisfactory to the lender or are purchased on conditional
bill of sale or otherwise so that the ownership thereo f will not vest uncond itionally in the borrower, free from
encumbrance, on delivery at the premises; and if the borrower does not furnish to the lender, if requested, the
contracts, bills of sale, statements, receipted vouchers and agreements, or any of them, under which the
borrower claims title to such materials, fixtures and articles.
(l) If the borrower fails to comply with any requirement of any governmental authority having jurisdiction within
thirty days after notice in writing of such requirement shall have been given to said borrower; or fails to
furnish to the lender, when requested, official searches made by the governmental authorities having
jurisdiction.
(m) If the borrower does not disclose to the lender, upon demand, the names of all persons with whom the
borrower contracted or intends to contract for the construction of said improvement or the furnishing of labor
or materials therefor.
(n) If the borrower permits any purchaser or prospective purchaser to occupy the premises before this agreement
shall have been fully performed and the final advance made thereunder.
(o) If the borrower fails to keep, observe or perform any of the conditions, stipulations, agreements or covenants
contained in this agreement or in the said bond or note or mortgage.
24. In the event that more than one mo rtgage is executed pursuant to this agreement and there should be any default by
the borrower in the performance of any of the conditions, stipulations, agreements and covenants contained in this
agreement or in any of the bonds or notes and mortgages given in connection therewith, then, at the option of the lender,
the principal indebtedness secured by all or any of such bonds or notes and mortgages shall immediately become due
and payable and all or any such mortgages may be foreclosed in either one or more actions, and any judgment of
foreclosure and sale obtained therein may direct that the mortgaged premises covered by all the mortgages sought to be
foreclosed in such action be sold in one parcel.
25. The borrower, in compliance with Section 13 of the Lien Law, covenants that the borrower will receive the
advances to be made hereunder and to be secured by the mortgage executed pursuant hereto and will hold the right to
receive such advances as a trust fund to be applied first for the purpose of paying the cost of improvement, and will
apply the same first to the payment of the cost of improvement before using any part of the total of the same for any
purpose.
26. And it is mutually understood and agreed by and between the parties hereto on behalf of themselves and their
respective personal representatives or successors in interest that the bond or note and mortgage contemplated to be
executed, acknowledged and delivered pursuant to this agreement shall be made subject to all the conditions,
stipulations, agreements and covenants contained in this agreement, to the same extent and effect as they would be if
fully set forth in and made part of said bond or note and mo rtgage, until this agreement is ter minated by the completion
of the improvement described herein and the making of the final advance hereunder as provided for herein; and it is
further expressly understood and agreed that this agreement is made subject to all the conditions, stipulations,
agreements and covenants contained in said bond or note and mortgage, to the same extent and effect as they would be
if fully set forth herein and made part hereof.
A true statement under oath, verified by the borrower as required by Section 22 of the Lien Law, is attached hereto
and made part of this agreement.
This agreement may not be changed or terminated orally. Wherever the word “lender” is used herein it shall be
deemed to include also the personal representatives, successors and assigns of the lender.
IN WITNESS WHEREOF, the parties hereto have duly execu ted this agreement the day and year first above written.
I
N PRESENCE OF:
STATE OF NEW YORK, COUNTY OF ss.:
being duly sworn, deposes and says:
I reside at No.
I am the of
the borrower mentioned in the within building loan contract.
The consideration paid, or to be paid, by the borrower to the lender for the loan described therein is
Dollars
($ ), and that all other expenses incurred, or to be incurred, in connection with said
loan are as follows:
Broker’s commission, $
Examination and insurance of
title and recording fees, $
Mortgage tax, Architect’s,
engineer’s and surveyor’s fees, $
Internal revenue stamp taxes, $
Inspections, $
Appraisals, $
Conveyancing, $
Building loan service fees, $
Sums paid to take by assignment
prior existing mortgages which are
consolidated with building loan
mortgages and also the interest
charges on such mortgages, $
Sums paid to discharge or reduce the
indebtedness under mortgages and
accrued interest thereon and other
prior existing encumbrances, $
Sums paid to discharge building loan
mortgages whenever recorded, $
Taxes, assessments, water rents and
sewer rents paid (existing prior to
commencement of improvement). $
and that the net sum available to the said borrower for the improvement is
Dollars,
($ ), less such amounts as may become due or payable for insurance premiums, interest on
building loan mortgages, ground rent, taxes, assessments, water rents and sewer rents accruing during the making of the
improvement.
This statement is made pursuant to Section 22 of the Lien Law of the State of New York.
The facts herein stated are true to the knowledge of the deponent.
________________________________
Sworn to before me this
day of in the year
ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year , before
me, the undersigned, personally appeared
, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or
the person upon behalf of which the individual(s) acted, executed the
instrument.
ACKNOWLEDGEMENT BY SUBSCRIBING WITNESS
TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year , before
me, the undersigned, a Notary Public in and for said State, personally
appeared , the
subscribing witness to the foregoing instrument, with whom I am
personally acquainted, who, being by me duly sworn, did depose and
say that he/she/they reside(s) in
(if the place of residence is in a city, include the street and street number if any, thereof);
that he/she/they know(s)
to be the individual described in and who executed the foregoing
instrument; that said subscribing witness was present and saw said
execute the same; and that said witness at the same time subscribed
his/her/their name(s) as a witness thereto
ACKNOWLEDGEMENT TAKEN IN NEW YORK STATE
State of New York, County of , ss:
On the day of in the year , before
me, the undersigned, personally appeared
, personally known to me or proved to me on the basis of
satisfactory evidence to be the individual(s) whose name(s) is (are)
subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or
the person upon behalf of which the individual(s) acted, executed the
instrument.
ACKNOWLEDGEMENT TAKEN OUTSIDE NEW YORK
STATE
*State of , County of , ss:
*(Or insert District of Columbia, Territory, Possession or Foreign
County)
On the day of in the year
,before me the undersigned personally appeared
Personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to
the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their capacity(ies), that by his/her/their
signature(s) on the instrument, the individual(s) or the person upon
behalf of which the individual(s) acted, executed the instrument, and
that such individual make such appearance before the undersigned in
the
(add the city or political subdivision and the state or country or other
place the acknowledgement was taken).
Title No.
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Building Loan Contract
