Fillable Printable Building Loan Contract - New York
Fillable Printable Building Loan Contract - New York
Building Loan Contract - New York
BUILDING LOAN CONTRACT
Date
The parties agree as follows:
Lender:
Address:
Borrower:
Address:
The word “Borrower” used in this Contract includes all borrowers,
1. Lender agrees to Lend to Borrower the sum of Dollars
($ ).
The purpose of the Loan is to pay for Improvements on the Property of the Borrower.
Borrower agrees to pay interest on money advanced at % per year from the date of the
advance, in equal monthly installments of $ , until
20 , when the entire amount is due.
2. The Property is more particularly described in the deed from
, as grantor
to , as grantee,
dated and recorded .
3. Borrower agrees to complete the Improvements described below. Borrower shall file Plans
and Specifications with the government departments having authority and shall obtain all
necessary approvals and building permits. The Plans and Specifications shall be approved by
Lender in writing. No changes shall be made without Lender’s written consent. All the
above shall be accomplished before payment of the first installment. The Improvements are
described as follows:
4. The Loan will be advanced according to Lender, determination at this time it is contemplated
that, installments shall be paid as follows:
Lender may advance all or any part of any installment before the due date. Lender shall be
given 5 days notice before any installment is due.
5. Borrower agrees to complete the Improvements according to the Plans and Specifications.
Work will begin within days after the date of this Contract. Borrower shall carry on
the work with reasonable diligence.
6. Simultaneously to the execution of this agreement, Borrower has signed a Bond or note for
the Loan. The payment of the Bond or Note is secured by a Mortgage on the Property
described made by the Borrower on this date. The Mortgage is to be recorded on the date
this Contract is filed. This Contract is subject to the terms of the Bond or Note and Mortgage.
7. No installment shall be due unless (a) work usually done at that stage of construction is done
in a good and workmanlike manner, and (b) all materials and fixtures usually installed and
furnished by that stage of construction are installed and furnished. Lender shall inspect the
work prior to making any installment. Work is to be done to Lender’s satisfaction. No
installment is to be paid unless construction is approved by an engineer, architect or other
satisfactory to Lender.
8. No installment is due and payable while there is any lien or other encumbrance on the
Property (except the Mortgage securing this Contract). The Borrower shall deliver to Lender
a certificate of the County Clerk or a title insurance company that no liens, orders or
assignment of contract have been filed against the Property after recording of the Mortgage.
9. If the work stops or does not proceed at reasonable speed, Lender may employ workmen and
purchase materials and do whatever necessary to complete or protect the work. If mechanics
liens or orders or assignments of contract are filed against the Property, Lender may pay and
satisfy them. If taxes, assessments, sewer rents or water rates charged against the Property
are not paid when due, Lender may pay them. Payments made by Lender under this
Paragraph are secured by the Bond or Note and Mortgage as if they were installments paid to
Borrower.
10. Borrower agrees to pay for and indemnify Lender for all claims or liens for materials, labor
or services furnished for the Improvements on the Property. Borrower shall defend any
action or proceeding brought against Lender on these liens or claims with an attorney of
Lender’s choice.
11. A. The following are defaults:
(1) Assignment of this Contract or any installment by Borrower without, written consent
of Lender.
(2) Death of Borrower before receipt of the last installment.
(3) If the Improvements on the Property are in the Judgment materially injured or
destroyed by fire or other event.
(4) If a petition in bankruptcy is filed by or against the Borrower. If a receiver or trustee
of the Property of the Borrower is appointed. If the Borrower files a petition for
reorganization under any of the provisions of the Bankruptcy Act or of any other law.
If the Borrower makes an assignment for the benefit of creditors or is judged
insolvent by any state or federal court.
(5) If Borrower does not make improvements as called for by the Plans and
Specifications.
(6) If the Plans and Specifications are not approved by the government departments
having authority to approve them.
(7) If the work stops or does not proceed at reasonable speed in the opinion of Lender.
(8) If Borrower gives a security interest in any materials, fixtures or articles used in the
work or placed in the Improvements.
(9) Failure by Borrower to produce on Lender’s demand documents proving Borrower’s
unconditional ownership of the materials, fixtures or articles used in the construction
or placed on the Improvements.
(10) If Borrower fails to make any payment of interest due on any mortgage on the
Property.
(11) If at the time any installment is due, title to the Property is not satisfactory to the
Lender’s attorney even though the same questions existed at the time of any prior
installment payment.
(12) If the Borrower fails to keep any other obligation in this Contract, or in the Bond
or Note and Mortgage.
B. In the event of a Default:
(1) Lender’s obligation to pay installments shall terminate.
(2) At Lender’s option, the Bond or Note and Mortgage shall become immediately due
and payable.
(3) Lender may continue to pay installments without giving up any of Lender’s rights or
waiving them.
12. Borrower will receive the advances secured by the Mortgage and will hold the right to
receive the advances as a trust fund, pursuant to Lien Law Section 13. The advances will be
applied first to pay the cost of the Improvements. Borrower will apply the advances first to
pay the cost of the improvements before using any part of the total of the advances for any
other purpose.
13. Borrower’s statement required by Section 22 of the Lien Law is annexed and made a part
hereof.
14. This Contract cannot be changed or terminated orally.
This Contract is dated as of the date at the top of the first page.
LENDER: BORROWER:
______________________________ ______________________________
Borrowers Statement Under
Section 22 of The Lien Law
STATE OF
COUNTY OF ss.:
being sworn, says:
I live at
I am the of
The Borrower(s) is the Building Loan Contract annexed.
The consideration paid, or to be paid, by Borrower(s) to Lender for the loan is
Dollars ($ ). All
other expenses incurred, or to be incurred, in connection with said loan are as follows:
Examination and insurance of title and recording fees………………….. $
NY State Mortage Tax…………………………………………………... $
Architect’s, engineer’s and surveyor’s fees……………………………... $
Inspections………………………………………………………………. $
Appraisals……………………………………………………………….. $
Conveyancing…………………………………………………………… $
The net sum available to Borrower(s) for the Improvements is
Dollars, ($ ), less
amounts due or payable for insurance premiums, interest on building loan mortgages, ground
rent, taxes, assessments, water rates and sewer rents accruing during the construction of the
Improvements.
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 my (our) knowledge.
Sworn to before me on
______________________________
______________________________
______________________________
NOTARY PUBLIC
STATE OF NEW YORK
COUNTY OF , ss:
On the day of , in the year 20 , 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(y)(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.
____________________________________
Notary Public
