PA Open-End Construction Mortgage Affidavit

STEWART TITLE GUARANTY COMPANY

Open-End Construction Mortgage Affidavit

 

Commonwealth of Pennsylvania                                             :                       No.    
                                                                                        : ss.

County of                                                                           :

Premises:

___________________, a Pennsylvania ___________________ (hereinafter “Borrower”) and ____________________, a _________________ banking institution, (hereinafter “Lender”) who, being duly sworn according to law, did depose and say:

Borrower has requested and Lender has approved an open-end construction loan to Borrower in the amount of $____________________, secured by the above described premises, which shall be closed and recorded within ten (10) days from the date of this Affidavit.

Reference is made to the above-captioned transaction in which Stewart Title Guaranty Company (hereinafter “Stewart”) has been requested to issue its Loan Policy of Title Insurance (hereinafter “Loan Policy”) to the Lender.  In connection therewith, Stewart has been requested to furnish said Loan Policy without exception for mechanics’ liens.  In consideration of the issuance of such Loan Policy by Stewart without exception for mechanics’ liens, and in order to induce Stewart to so insure, the Undersigned, agree and obligate themselves as follows:

Borrower and Lender both affirm that not less than sixty percent (60%) of the proceeds of the aforementioned open-end construction loan shall be used to pay all or part of the costs of construction [as “costs of construction” are defined in 49 P.S. § 1201 (15)], for structures on the Land.

By execution of this affidavit, the parties hereby acknowledge that Stewart has agreed to issue the Loan Policy, with no exception for mechanic’s liens, in reliance upon Borrower’s and Lender’s  above statements such that the mortgage to be insured will be an Open-End Mortgage  pursuant to 42 Pa.C.S. §8143(f); and, based upon the use of the proceeds of the mortgage. shall have lien priority pursuant to 49 P.S. § 1508(c) (2) of the Pennsylvania Mechanics’ Lien Law of 1963, as amended. 

Witness:                                                          (INSERT NAME OF BORROWER)                                                                                

                                                                                   

______________________________            By :_______________________________(SEAL)                                                                                                           Name:
                                                                      Its:

 

                                                                        (INSERT NAME OF LENDER

 

______________________________            By:_______________________________(SEAL)                                                                                                          Name:
                                                                     Its:

(USE APPROPRIATE ACKOWLEDGEMENT FOR BOTH BORROWER AND LENDER)

 

Acknowledgment by individual

COMMONWEALTH OF PENNSYLVANIA        

COUNTY OF                                                

            On this the                   day of                 , 2014, before me, the subscriber, a duly authorized Notary Public, personally appeared                                                    , who acknowledged that he/she executed the within instrument for the purposes therein contained .

IN WITNESS WHEREOF, I hereunto set my hand and official seal.           

                                                                        ______________________________                                                                                              Notary Public

                                                                        My Commission Expires:

 

Acknowledgment by LLC

COMMONWEALTH OF PENNSYLVANIA

COUNTY OF

ON THIS, the _______ day of _________________, 2014 before me, the undersigned officer, personally appeared____________________ the individual(s) named in the foregoing instrument as a Member of __________________________ a Limited Liability Company, and that he/she as such Member, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the Limited Liability Company by himself as a Member.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

___________________________________
Notary Public

 

Acknowledgment by Corporation

COMMONWEALTH OF PENNSYLVANIA

COUNTY OF

ON THIS, the _______ day of _________________, 2014 before me, the undersigned officer, personally appeared_________________________ who acknowledged he/she to be the ___________________ of, a Corporation and that he/she as such ________________________, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself/herself as _____________.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

___________________________________
Notary Public

 

Acknowledgment by Limited Partnership

COMMONWEALTH OF PENNSYLVANIA                       

COUNTY OF

ON THIS, the _______ day of _________________, 2014 before me, the undersigned officer, personally appeared______________________, the individual(s) named in the foregoing instrument as the General Partner(s) of________________________, a Limited Partnership, and that he/she as such General Partner, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the Limited Partnership by himself/herself as General Partner.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

___________________________________
Notary Public

 

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