21. PREPAYMENT - Open Mortgage
If your Mortgage is an Open Mortgage and provided that that Default has not occurred with respect to the Mortgage and:
a. If the Mortgage has an initial Term of six (6) months or less then you may repay all or a portion of the Outstanding Mortgage Amount at any time without interest or penalty; or
b. If your Mortgage is for an initial Term of more than six (6) months, then, at any time, after the first 90 days from the Mortgage Advance Date, you may repay all ora portion of the Outstanding Mortgage Balance, without penalty or interest.
22. CLOSED MORTGAGE - No Prepayment Without Penalty
If your Mortgage is a Closed Mortgage, then regardless of there being no occurrence of a Default in your Mortgage, you have no entitlement to pay all or a portion of the Outstanding Mortgage Amount, without interest or
penalty.
22. CLOSED MORTGAGE - No Prepayment Without Penalty
If your Mortgage is a Closed Mortgage, then regardless of there being no occurrence of a Default in your Mortgage, you have no entitlement to pay all or a portion of the Outstanding Mortgage Amount, without interest or
penalty.
23. PREPAYMENT WITH PENALTY
Provided there is no Default in the Mortgage, and provided that you pay to us an amount equal to three months interest on the amount of the Outstanding Mortgage Amount, that is being paid, calculated at the Annual Fixed
Interest Rate, you may, at any time, repay all or a portion of the Outstanding Mortgage Amount.
24. LENDING FEE AND COMMISSION
The Lending Fee is earned and kept by us once you receive the Mortgage Amount. When applicable, any commission or referral fee paid to a third party who assisted with the Mortgage application will be paid by us from the
Lending Fee. A commission or referral fee will be paid by us based on a percentage of the Mortgage Amount. We will not pay a contingent, volume or incentive commission.
25. ADMINISTRATION AND PROCESSING FEES
You agree to pay us, as incurred, our then current administration and processing Fees in connection with servicing any aspect of the Mortgage whether requested by you or initiated by any other person, including without
limitation for:
i. the preparation of any Mortgage statement for assumption, information, arrears, discharge or other purpose,
ii. the processing of each application for a change, approval or consent required by the Mortgage, whether or not granted or completed,
iii. an amending, conversion, renewal or other agreement,
iv. a transfer of the Mortgage, if approved by us in writing, to another party or property,
v. any payment that is dishonoured, any stop payment, any hold payment request or other payment matter,
vi. administering payment of taxes and/or other fees and payments with respect to the Property,
vii. any services of an administrative or clerical nature requested by you, such as requesting a payout statement, account histories or explanations, copies of documents from your file or duplicate document and courier charges,
viii. investigating and administering any property insurance matters and processing any insurance claims,
ix. registering a financing statement or financing change statement dealing with any personal property security information required or acknowledgment and conducting required searches, and
x. generally, any matter connected with the administration of the Mortgage and the Property, including inquiring into compliance, and dealing with or enforcing any Obligations.
We shall be entitled to prepare or have our agent or solicitor prepare a charge or assignment of Mortgage and any other documents necessary to assign any security held by us. The legal fees, in addition to all other charges
and Costs in connection with the preparation, review, execution and delivery of such documents and repayment of the Outstanding Mortgage Balance shall by paid by you to us. We shall be entitled to prepare or have our agent or solicitor prepare
a discharge or assignment of Mortgage and any other documents necessary to assign any security held by us and shall have reasonable time after the payment of the Outstanding Mortgage Balance in full within which to prepare, execute and deliver
such documents. We will charge a minimum of
$999.00 in administrative and processing Fees in connection with discharging our security interest in the Property. Charges paid to discharge documents or obtain information from a public registry about security interests related to Property
will be additional.
26. ASSIGNMENT OF RENTS
You hereby assign to us all rents payable to you from time to time under any lease of the whole or any part of the Property, whether existing or arising at any time in future, together with the benefit of all covenants,
agreements and provisos contained in any such lease. We will not be construed to be a mortgagee in possession of the Property by reason of our exercising this assignment of rents including the collection of rents.
27. EXTENSION & RENEWALS
If the Amortization Term is longer than the Repayment Term, we have the option, upon sixty (60) days prior written notice to you, to offer to renew this Mortgage at the end of the Mortgage Term on the same Standard Mortgage
Charge Terms as set out herein. If we choose to offer to renew your Mortgage, we will provide you with (1) the final date of the existing Repayment Term, (2) new Mortgage Loan Disclosure Statement providing, among other things, the cost of
borrowing of the Mortgage, as renewed (3) the new Total Amount Financed, (4) the new Repayment Term, (5) the new Amortization Term, (6) the new Annual Fixed Interest Rate, (7) the new Annual Percentage Rate as set out in the Mortgage Loan
Disclosure Statement to be executed by you, (8) the new Total Twice Monthly Payment, (9) the new Mortgage Balance Owing at end of the Repayment Term, (10) the new Total Obligation as set out in the Mortgage Loan Disclosure Statement to be
executed by you, (11) the new Total Cost of Borrowing set out in the Mortgage Loan Disclosure Statement executed by you for the new Repayment Term, and (12) the new Twice Monthly Administrative Fee set out in the Mortgage Loan Disclosure
Statement to be executed by you.
An offer to renew Mortgage may be requested by you at any time or made by us to you, as aforesaid, with 60 days advance notice prior to the Maturity Date.
If we send you an offer to renew, you continue to have the right to repay the remaining Outstanding Mortgage Balance at the end of the Repayment Term.
If we send you the notice and you have not paid the Outstanding Mortgage Balance owing at the end of the Repayment Term, then unless such offer of renewal has been withdrawn by us, you agree that you have accepted our offer to extend and you
agree to pay a renewal fee as disclosed in the notice. The renewal fee will be added to the Outstanding Mortgage Balance and will be, in our absolute discretion, up to $99.00 plus two and ninety-fifth of one (2.95) percent of the Outstanding
Mortgage Balance. The new Maturity Date and the new Accrued Interest Rate will be at our absolute discretion and will not be materially different from our posted interest rate for loans of a similar Term, nature and risk as exist at that time
and the new Accrued Interest Rate will be in accordance with our interest rates to Borrowers for loans of a similar nature and risk as they exist at that time and in any event will not exceed the annual 10 year Government of Canada Bond Yield
plus the Annual Fixed Interest Rate, and not less that the Annual Fixed Interest per annum. The Annual Fixed Interest is calculated and payable monthly as disclosed on the Mortgage Loan Disclosure Statement.
28. STATUTORY COVENANTS EXCLUDED
The covenants to be included in a mortgage or charge under subsection 7(1) of the Land Registration Reform Act, 1984, and shown currently as clauses 1 and 2 of subsection 7(1) are excluded from this Mortgage and are replaced
by this set of Standard Charge Terms which are covenants by you with us.
29. OUR RIGHTS AND REMEDIES - DEFAULT AND ACCELERATION
Should a Default in the Mortgage occur, then the Outstanding Mortgage Balance or any portion thereof, at our option, will become due and immediately payable upon written notice to you from us. Default in the Mortgage incudes:
i. should you discontinue occupying the Property or sell the Property;
ii. you fail to keep the Property free from any encumbrances, mortgages, charges and liens, save and except those as registered at the Mortgage Advance Date including and not limited to municipal property tax liens, unpaid condominium or
strata fees, judgments, construction or builder’s liens and any security interest,
iii. you breach any term or condition of this Mortgage or a related agreement with us or any mortgage associated or registered against the Property,
iv. you fail to fulfil your Obligations to us,
v. without our written consent, you may not give, assign or transfer to any third party, related or unrelated to you, a mortgage or charge or similar loan and security interest with respect to the Property that is subsequent in priority to the
Mortgage. You acknowledge that there is no obligation whatsoever for us to consent to any of the foregoing.
vi. you increase the mortgage balance of any mortgage associated with the Property without our prior consent,
vii. the Property is damaged, destroyed or lost or the Property is abandoned or is not visibly and consistently occupied,
viii. a petition in bankruptcy or consumer proposal is filed against you, you make a general assignment for the benefit of your creditors, a receiver or a similar person is placed or is threatened to be placed in control of your affairs or
your Property, or in our opinion, you become insolvent, and
ix. you do not pay to us the Outstanding Mortgage Balance by making each of the Twice Monthly Payments on the 1st and 15th day of each month during the Repayment Term.
x. you provide us with untrue, inaccurate, incorrect or misleading information,
xi. you fail to pay taxes charged against the Property when they are due. Not to limit the foregoing, if you do not pay such taxes we may pay them and such payment of the same is an additional amount secured under the Mortgage and may be added
to the Outstanding Mortgage Amount.
Any of the foregoing are herein sometimes referred to as a “Default”.
Default Fees
If during the Term, there is an event of Default in the Mortgage, we may give you notice of such Default and you agree to pay us a fee in an amount as determined by us in our sole discretion to a maximum amount of $599.00. If
you fail to remedy such Default to our satisfaction and we provide you with further notice of such Default (a “Subsequent Default Notice”) then you agree to pay a further fee with respect to each Subsequent Default Notice that we provide to you
with respect to such Default. The fee with respect to each Subsequent Default Notice will be in an amount as determined by us in our discretion but to a maximum of $199.00. The total maximum cumulative amount of the aforesaid fees in any
calendar year will be no greater than $3,980.00.
Notwithstanding the foregoing, if at the time of the event of Default, the Outstanding Mortgage Balance is greater than $75,000.00 then the fee for any Subsequent Default Notice will be in an amount as determined by us in our
discretion to a maximum of $399.00. The total maximum cumulative amount of the aforesaid fees in any calendar year will not exceed $9,576.00.
Not to limit anything contained herein, we may charge you all reasonable costs we incur (including but not limited to legal costs, collection agency costs, applicable taxes and incremental internal and administrative costs) in
collecting or attempting to collect a payment you owe under this Mortgage and/or to enforce our security under this Mortgage or to protect the Property taken in security if you are in default.
Enforcement
If Default occurs in the Mortgage, we have the right to exercise one or more of the following rights and remedies at the same time or in any order we choose:
i. We may, at our option, demand the entire Outstanding Mortgage Balance be paid to us immediately
ii. We may take whatever legal action is necessary to collect all or part of the Outstanding Mortgage Balance from you and make you perform any of the Obligations. This legal action may include suing you for the Outstanding Mortgage Balance.
iii. We may take court proceedings to take and keep possession of the Property including the Property or any part of it. Prior to us taking possession of the Property, we can ask you to leave the Property with all your belongings and if you do
not do so the court may order you to leave. If you refuse to do so the court may have you forcibly removed. If you have not removed your personal belongings from the Property before we take possession, you authorize us to remove and dispose of
your belongings in any reasonable manner that we, in our absolute discretion, deem appropriate, without notice to you. We will have no liability for moving, disposing or storing those belongings. You will be responsible for all costs incurred
by us in dealing with those belongings. These costs will be added to the Outstanding Mortgage Balance.
iv. We may without taking possession of the Property immediately collect and receive the rents and other amounts payable under any leases or other agreements for use or occupation of all or any part of the Property.
v. We may lease the Property or any part of it on any terms that we choose, without notice to you and with or without taking possession. We may apply the net proceeds of any lease to reduce the Outstanding Mortgage Balance.
vi. We may take court proceedings to foreclose your interest in the Property. If we obtain a final order of foreclosure, your interest in the Property will belong to us and you will have no further interest in the Property.
vii. We may ask the court to order a sale of the Property, under the court's supervision. If the amount we receive from the sale of the Property is less than the Outstanding Mortgage Balance, you must immediately pay us the difference.
viii. We may, where permitted by law and on the minimum period of written notice to you required by law, sell the Property or any part of the Property. We may sell the Property for cash or on credit, or partly for cash and partly on credit. We
may sell the Property by private sale or public auction and for whatever terms we can obtain. If we think it is reasonable to do so, we may cancel or amend any contract of sale, or postpone any sale, without being responsible for any resulting
loss. We may apply the money from any sale, after paying all costs and expenses, to reduce any part of the Outstanding Mortgage Balance. We will only be responsible to account to you when we actually receive proceeds of realization from the
Property.
ix. We may, at your expense, choose to cure any of your defaults under any mortgage that provides a security interest to any part in the Property. You will immediately reimburse us for any of these expenses connected with these activities. The
expense to cure the defaults may be added to the Outstanding Mortgage Balance.
x. In addition to the rights specified here, we also have all rights, remedies and powers of a secured party under the Personal Property Security Act, and under other relevant legislation.
xi. We may also choose to take any other steps or proceedings against you or the Property as permitted by the laws of the province in which the Property is located and the laws of Canada.
All remedies are cumulative and not alternative.
If we delay enforcing any of our rights, the delay will not affect, in any manner, any of our other rights under the Mortgage or at law.
If Default occurs in the Mortgage, we may also appoint a receiver to collect any income from the Property or take any other action (which we are allowed) with respect to the Property. The receiver will be your agent, not ours,
and you alone will be responsible for all of the receiver's acts or omissions. We will not be accountable for any money received by the receiver, except to the extent that we actually receive the money. The receiver may exercise any rights that
we have under the Mortgage, including:
i. collecting income from the Property,
ii. taking possession of all or part of the Property,
iii. managing the Property,
iv. keeping the Property in good condition,
v. insuring and protecting the Property as applicable,
vi. finishing any buildings or structures under construction on the Property, and/ or
vii. leasing the Property and selling the Property.
From the income collected from the Property, or the proceeds of the sale of the Property, the Receiver will pay:
i. all rents, taxes, insurance premiums and other expenses required to keep the Property in good condition,
ii. all amounts required to keep any outstanding liens, claims or charges against the Property, which rank in priority to the Mortgage in good standing,
iii. its own compensation and expenses as receiver,
iv. all costs associated with the leasing or sale of the Property, and
v. any part of (or all of) the Outstanding Mortgage Balance of the Mortgage, whether it is due or not.
We may ask the court to appoint a receiver or confirm the appointment of a receiver of the Property. The terms of the appointment of this receiver will be as the Court chooses. Our right to appoint or have appointed a receiver
is in addition to, or may be exercised together with, any of our other rights and remedies. If we choose to commence power of sale, foreclosure proceedings as a result or to take other court action as a result of your default, you agree that we
may select the judicial district or centre to undertake such proceedings or other court action.
If we obtain a court order or judgement against you to enforce our rights, the judgement will not prevent us from exercising our other remedies or rights to enforce the Obligations, including our right to receive interest and
Costs due. Interest will be compounded at the current Interest Rate in effect at the time, in the same manner as set out in the Mortgage until the judgement is paid. If we take any court action or proceeding or otherwise become involved in any
court action or proceeding by reason of the Mortgage, you agree to pay all expense we incur in connection with such action or proceeding including legal expense on a full indemnity basis. You further agree to indemnify us on a full indemnity
basis, for any expense which we incur including legal expense in defending your agreement to pay the Outstanding Mortgage Amount and defending or otherwise dealing with any action or proceeding regarding the Property in which we are made a
party or are otherwise interested including any construction lien or similar matter, any seizure or prosecution by police or other authority, any power of sale, any foreclosure, sale, redemption, assessment or other action or proceeding by any
other encumbrancer or any certificate of pending litigation or other title matter.
In the event a home inspection is ordered by us, the cost of the home inspection will be added to the Outstanding Mortgage Balance which cost is estimated to be $799.00.
30. PENALTY OR BONUS ON DEFAULT
In the event of a Default in the Mortgage, regardless of whether we make a demand for payment from you of the entire Outstanding Mortgage Amount or a portion thereof, regardless whether we have taken any steps or proceedings to enforce payment of the aforesaid Outstanding Mortgage Amount, or a portion thereof, or take steps or proceedings to realize on this Mortgage, or receive payment of the Outstanding Mortgage Amount by reason of any other party realizing on its security or by payment through a distribution from a Court appointed receiver, we shall not be obliged to accept payment from you of the Outstanding Mortgage Amount or any portion thereof without payment of a penalty or bonus, equal to three additional months interest, calculated at the Annual Fixed Interest Rate, on the Outstanding Mortgage Amount as at the date we receive payment.
