Allonge to Mortgage Note
(Commercial) (NJ)

Summary

This template is an allonge to a promissory note and may be used by an existing New Jersey lender to endorse and transfer a commercial promissory note to a new lender. This template includes practical guidance and drafting notes. Promissory notes are negotiable instruments under the New Jersey Uniform Commercial Code. See N.J. Stat. § 12A:3-104. A note should be assigned by endorsement, either to a named assignee or through an endorsement in blank in which the assignee of the note is whoever currently holds possession of the note. An allonge stating "pay to the order of" may be attached to a promissory note to achieve an endorsement. See N.J. Stat. § 12A:3-204. In addition, the mortgage should be assigned at the same time by an assignment instrument which is recorded in the real property records of the county in which the property is located. If the mortgage is validly assigned, the beneficiary under the mortgage may be able to enforce the note even absent a valid allonge. See Wells Fargo Bank, N.A. v. Ford, 15 A.3d 327, 418 N.J. Super. 592, 2011 N.J. Super. LEXIS 13. For a template of a New Jersey mortgage assignment, see Assignment of Mortgage and Note (Commercial) (NJ). For more on recording an assignment of mortgage in New Jersey, see Recording Procedures (NJ). For a template of a New Jersey note, see Promissory Note (Acquisition Loan) (Pro-Lender) (NJ). For additional New Jersey acquisition financing resources, see Commercial Real Estate Acquisition Loan Resource Kit (NJ). For further information on promissory notes, see Promissory Notes (Acquisition Loan).