Allonge to Mortgage Note
(IL)

Summary

This allonge to mortgage note may be used by an existing Illinois lender to transfer and indorse a mortgage note to a new lender. This template includes practical guidance and drafting notes. An allonge is attached to the existing mortgage note to document its transfer and to include any necessary language or signatures without adding them to the note itself, which often lacks sufficient space. The key provision in the allonge to the mortgage note is the transfer language. The Illinois Appellate Court (1st District) considered the issue of what constitutes affixing an allonge to a promissory note for purposes of Illinois Uniform Commercial Code Section 3-204 and ruled that a paper clip is sufficient to affix an allonge to a mortgage note for purposes of the statute. See Olive Portfolio Alpha, LLC v. 116 W. Hubbard St., LLC, 2017 IL App (1st) 160357, and the Illinois Commercial Code § 3-204 (810 ILCS 5/3-204). For a template of a mortgage note in Illinois, see Mortgage Note (Acquisition Loan) (Pro-Lender) (IL). For information about acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance).