Common use of Agreement to mortgage land Clause in Contracts

Agreement to mortgage land. 16.1 The owner of the land specified in a disclosure statement agrees to grant a mortgage over that land on the following terms and conditions: a. you will, at our request, authorise and instruct a lawyer of our choice to act to register an “All Obligations” mortgage instrument as set out in clause 17.1, such authority and instruction to include a stated priority limit for the purposes of section 92(1) of the Property Law Xxx 0000 of such amount, together with interest and costs, as we may deem necessary to secure all amount owing or that we anticipate may become owning to us under all loans and guarantees that may be or become secured by the mortgage including such margin as we consider prudent; b. we may include in the priority sum a reference to a specified principal amount being the balance advanced to you as at the date of the registration of the mortgage or the balance agreed to be advanced to you as at that date. c. in addition, you irrevocably authorise your attorney, appointed under clause 14 of this agreement, to authorise and instruct a lawyer to register a mortgage on the terms set out above at any time and without the need to first request you to do so, such authority and instruction may include a stated priority limit as set out in clause 16.1(a); 16.2 We may lodge a caveat against any land that you own and have mortgaged in accordance with clause 16.1 to give notice of our interest under the agreement to mortgage specified in that clause.