Opinion ID: 1717493
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Heading Rank: 1

Heading: The Mortgagor's 15-Day Grace Period.

Text: Auto-Plaza asserts that foreclosure of the $250,000 mortgage by Central Bank was unwarranted because it was entitled to a 15-day grace period after the 16th of each month within which to make its monthly payment. We disagree. Auto-Plaza bases its grace period contention on the following language contained in the $250,000 mortgage. It is understood and agreed that a late charge of five cents ($.05) per dollar will be paid by the maker(s) on each installment more than 15 days in arrears. We fail to see how this provision affords the mortgagor a grace period. We interpret its terms as unambiguous; and we hold that this provision merely subjects Auto-Plaza to a late charge for any installment paid more than 15 days after the due date (i. e., the 16th of each month). In Kinmon v. J. P. King Auction Company, Inc., 290 Ala. 323, 276 So.2d 569, at 570 (1973), this Court stated: [I]t is elementary that it is the terms of the written contract, not the mental operations of one of the parties, that control its interpretation. Central Bank, while denying the existence of any grace period, submits the following provision, contained in the $250,000 mortgage, as affording propriety to its foreclosure of that mortgage: Upon failure to pay any installment of principal and/or interest when due or if any of the conditions and requirements in said mortgage be not complied with, the entire principal sum at the option of the holder, shall become due and payable. Failure to exercise this option shall not constitute a waiver of the right to exercise the same in the event of any subsequent default. (Emphasis added.) Central contends, and we agree, that the provision cited from the $250,000 mortgage gives it the right to foreclose that mortgage if any installment due on the note secured by the mortgage is not paid when it becomes due. Consequently, the mortgagee's action in foreclosing this mortgage was justified and was not subordinate to any 15-day grace period.