Mortgage Clauses
(Commercial) (OH)

Summary

This is a template for clauses that may be inserted in a mortgage template where the real property securing the loan is located in the State of Ohio. This template includes practical guidance and drafting notes. In the State of Ohio, the security instrument securing a promissory note to be executed in connection with an acquisition loan transaction is a mortgage. See ORC Ann. 5302.12. A basic mortgage form is provided in ORC Ann. 5302.12. Under a mortgage the borrower, sometimes referred to as the grantor, gives the lender, sometimes referred to as the beneficiary, a lien on the real property as security for the loan until the promissory note is repaid. If the borrower defaults under a mortgage the lender may foreclose upon the property. Note that another method that may be used in Ohio to secure a debt is a land installment contract, whereby a seller agrees to convey title to real property to a purchaser and the purchaser agrees to pay the purchase price in installments to the seller while the seller retains title to the property as security for the purchaser's obligation. See ORC Ann. 5313.01. The mortgage should be prepared in accordance with the document requirements of ORC Ann. 317.114, including the following: • Legible print size no smaller than size 10 font • Minimum paper size of 8.5 inches by 11 inches • Maximum paper size of 8.5 inches by 14 inches • Black or blue ink only • No use of highlighting • Margins of one-inch width on each side of each page as well as the bottom of each page of the instrument • A three-inch margin of blank space across the top of the first page of each instrument to accommodate any certification or indorsement of the county engineer, auditor, or recorder, as may be required by law, with the right half of that margin being reserved for the indorsement of the county recorder required by ORC Ann 317.12 • A one-and-a-half inch margin of blank space across the top of each of the remaining pages of the instrument to accommodate any certification or indorsement of the county engineer, auditor, or recorder (as may be required by law) An Ohio mortgage should be recorded in the land records office of the county (or counties) where the property is located, to provide notice to third parties of the mortgage lien on the property. See ORC Ann. 317.08. Defined terms used throughout these mortgage clauses should be conformed to the applicable mortgage and related loan documents these clauses are being inserted in. For further information on commercial real estate financing transactions in Ohio, see Commercial Real Estate Financing Transactions (OH) and Foreclosure Resource Kit (OH).