Common use of Enforcing Security Clause in Contracts

Enforcing Security. 8.1 When we can enforce the security. We can enforce the security after any of the events listed below has occurred. We can do so even if the cause of the event is outside anyone’s control. We can do so without presentment, protest, demand or notice, all of which you waive. If you are more than one person, an event for each person is an event of default for both or all of you. The events are: 8.1.1 A payment, or part of a payment, under any of the payment obligations is not made when it is due. This applies whether the amount is due on demand or a fixed date and by acceleration or otherwise. 8.1.2 Any other obligation to us under the mortgage is not complied with. Or where you are to do or not to do something, on or to the property, or as to its use, another person does the thing. 8.1.3 Anything happens that impairs any of our security or any interest of yours in the property. 8.1.4 Any of the promises made, or information given, to us under or in connection with the mortgage is materially incorrect or incomplete. A promise or information may have been limited to what the person who made or gave it knew. However, we can enforce the security if we find that the matters in the promise or information are materially incorrect, even though the person making the promise or giving the information did not know that it was incorrect, or had done what was reasonable to verify it. 8.1.5 Any obligation to us under any other agreement that relates to payment obligations is not complied with, or an event of default occurs under such an agreement. 8.1.6 At any time during the mortgage the property or its use does not comply substantially with every law. Or a part of the real estate (including water) is composed of a hazardous substance which may be detrimental to the environment or human health. 8.1.7 You become insolvent (or, if you are more than one person, any of you does). Or anyone who is responsible for all or part of the payment obligations becomes insolvent, including a guarantor or indemnifier. A person becomes insolvent when any of the following happens. The person becomes a bankrupt or an insolvent, or is found in a legal process to be bankrupt or insolvent. The person makes an assignment for the benefit of creditors. Anyone enforces a judgment, distress or similar process against an asset of the person. A liquidator, receiver, trustee or similar officer is appointed for all or part of the person’s assets or income. The person or anyone else starts a bankruptcy, arrangement or readjustment of debt, dissolution, liquidation or similar proceeding relating to the person under any law, including a proposal. And the person admits in writing the person’s inability to pay the person’s debts as they become due. 8.1.8 Any other event occurs after which the mortgage says we can enforce the security. 8.2 We may require obligations to be paid immediately. When we can enforce the security, we may require immediate payment of all payment obligations (including obligations that have not become payable). The obligation to make the payment is however subject to any provision of a law which applies despite what you and we have agreed to in this section and which gives you a right to avoid the consequences of this requirement. 8.3 We may take action. We may take legal action to collect the payment obligations.