Common use of Additional Advances Clause in Contracts

Additional Advances. Upon repayment to the Lender of the Principal Amount in whole or in part, the Borrower may from time to time, at the Lender’s option, borrow Additional Principal Amounts, in which event, this Mortgage will remain as security for the Outstanding Principal Amount, interest and other monies from time to time owing by the Borrower to the Lender whether the same is from time to time reduced and thereafter increased or entirely extinguished and thereafter incurred again, provided that this Mortgage at any one time secures only that portion of the Outstanding Principal Amount not exceeding the Principal Amount, together with any interest or compound interest accrued on the Outstanding Principal Amount at the Interest Rate and other amounts secured hereby. This Mortgage will be general and continuing security and is made to secure a current or running account. For greater certainty, this Mortgage shall not be deemed to have been redeemed by reason only that: (a) advances made under it are repaid; or (b) the account of the Borrower with the Lender ceases to be in debit. Notwithstanding anything contained in this Mortgage, the Lender may, at its option and without notice to the Borrower, or at the Borrower’s request, provide a discharge of this Mortgage at any time when there are no monies owing or liabilities outstanding to the Lender from the Borrower.