What is a Mortgage and Security Agreement?
The Mortgage and Security Agreement is a contract by which operating covenants are created by the Lender to secure the performance of the Loan. It gives the Lender or beneficiary certain rights by allowing or disallowing specific operations of the building by the Borrower. Common Lender covenants will prevent substantial building renovations or Lease modifications without the Lender's consent to ensure that the Loan risk is mitigated.