Preview
FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024
EXHIBIT B
FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216
CAT BK: 1472 PG: 231 08/06/2007 MORTGAGE Image: 1 of 7
NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024
y Aftel recording,return to:
CITIFINANCIAL COMPANY(DE) ll 1G72 PW 231
Address:
169 DELAWARE AVE
SIDNEY NY 13838
MORTGAGE
WORDS USED OFTEN IN THIS DOCUMENT
"
(A) "Mortgage This document, which is dated July 31st , 2007 , will be
called the "Mortgage."
(B) "Borrower."KENNETH HALLSTEAD AND JOYCE RHINEBECK 461 MARVIN HOLLOW ROAD
WALTON NY 13856 TAX MAP #274-1-16
will sometimesbe called the "Borrower" and sometimes simply "L "
"Lender."
(C) CITIFINANCIAL COMPANY(DE)
will be called the "Lender " Lender is a corporation organized and existing under the
laws of Delaware . Lender's address1s
169 DELAWARE AVE SIDNEY NY 13838
"Note."
(D) Thenote signed by Borrower and dated July 31st, 2007, and extensions and renewals
of that note, will be called the "Note." The Note shows that I owe Lender U.S. $ 23 , 106. 22 plus interest,
which I have promised to pay in full by 09/06/2022.
"Property." Property"
(E) The property that is described below in the section titled "Description of the will be
"Property."
called the
BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY
I mortgage, grant and convey the Property to Lender subject to the terms of this Mortgage. This means that, by
signing this Mortgage, I arn giving Lender those rights that are stated in this Mortgage and also those rights that
the law gives to lenders who hold mortgages on real property. I am giving Lender these rights to protect Lender
from possible lossesthat might result if I do not:
(A) Pay all the amounts that I owe Lender asstatedin the Note;
(B) Pay, with interest, any amounts that Leader spendsunder this Mortgage to protect the value of the Property
and Lender's rights in the Property; and
(C) Keep all of my promises and agreementsunder this Mortgage.
DESCRIPTION OF THE PROPERTY
I give Lender rights in the following Property:
(A) The property which is located at 4 61 MARVIN HOLLOW , WALTON ,
NY 13856 . This Property is in DELAWARE County in the Stateof New York. It has
the following legal description:
SEE EXHIBIT A
(B) All buildings, structures and other improvements that are located on the property described in paragraph (A)
of this section;
(C) All rights in other property that I have as owner of the property described in paragraph (A) of this section.
These rights are known as "easements,rights and appurtenancesattachedto the property";
(D) All rents or royalties from the property described in paragraph (A) of this section; and
(E) All of the property described in paragraphs(B) through (D) of this section that I acquire in the future, and all
rights described in paragraphs(B) through (D) of this section that I acquire in the future.
It may be that I do not own the Property but am a tenant under a lease. In that case, the rights I am giving to
Lender by this Mortgage are rights in my tenancy.
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BORROWER'S RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S OBLIGATION TO DEFEND
OWNERSEP OF THE PROPERTY
I promise that: (A) I lawfully own the Property; (B) I have the right to mortgage, grant and convey the Property
to Lender; and (C) there are no outstanding claims or charges against the Property other than claims and charges
of record.
I give a general warranty of title to Lender. This meansthat I am fully responsible for any losses which Lender
suffers becausesomeoneother than myself has some of the rights in the Property which I promise that I have. I
promise that I will defend my ownership of the Property against any claims of such rights.
UNIFORM PROMISES
I promise and I agreewith Lender as follows:
1. BORROWER'S PROMISE TO PAY PRINCIPAL AND INTEREST UNDER THE NOTE AND TO
FULFILL OTHER PAYMENT OBLIGATIONS
I will promptly pay to Lender when due principal and interest under the Note and late charges as stated in the
Note.
2. AGREEMENTS ABOUT MONTHLY PAYMENTS FOR TAXES AND INSURANCE
(A) Borrower's Obligation to Make Monthly Payments to Lender for Taxes and Insurance
I will pay to Lender all amounts necessary to pay for taxes, assessments,ground rents (if any), and hazard
insurance on the Property and mortgage insurance(if any). I will pay those amounts to Leader (i) unless Lender
tells me, in writing, that I do not have to do so or (ii) unless the law requires otherwise. Also, I will not have to
pay to Lender any amount for which I am already making monthly payments to the holder of any superior
mortgage or deed of trust, if it is a savings or banking institution. I will make those payments on the same day
that my monthly payments of principal and interest are due under the Note.
The amount of eachof my paymentsunder this Paragraph2 will be the sum of the following:
(i) One-twelfth of the estimated yearly taxes, assessments (including condominium and planned unit
development assessments,if any) and ground rents (if any) on the Property which under the law may be
superior to this Mortgage; plus
(ii) One-twelfth of the estimated yearly premium for hazard insurance covering the Property; plus
(iii) One-twelfth of the estimated yearly premium for mortgage insurance(if any).
Lender will determine from time to time my estimated yearly taxes, assessments,ground rents and insurance
premiums based upon existing assessmentsand bills, and reasonableestimates of future assessmentsand bills.
(Taxes, assessments,ground rents and insurancepremiums will be called "taxes and insurance.")
The amounts that I pay to Lender for taxes and insurance under this Paragraph2 will be called the "Funds." The
Funds are additional protection for Lender in case I do not fulfill my obligations under the Note and under this
Mortgage.
(B) Lender's Obligations Concerning Borrower's Monthly Payments for Taxes and Insurance
Leader will keep the Funds in a savings or banking institution the deposits or accounts of which are insured or
guaranteedby a Federal or stateagency. If Lender is such an institution then Lender may hold the Funds. Except
as described in this Paragraph 2, Lender will use the Funds to pay taxes and insurance. Lender will give to me,
without charge, an annual accounting of the Funds. That accounting must show all additions to and deductions
from the Funds, and the reasonfor eachdeduction.
Lender may not charge me for holding or keeping the Punds on deposit, for using the Funds to pay taxes and
insurance, for analyzing my payments of Funds, or for receiving, verifying and totalling assessmentsand bills.
However, lander may charge me for theseservicesif Lender pays me interest on the Funds and if the law permits
Lender to make such a charge. Iander will not be required to pay me any interest or earnings on the Funds unless
either (i) Lender and I agree in writing, at the time I sign this Mortgage, that Lender will pay interest on the
Funds; or (ii) the law requires Lender to pay interest on the Funds.
If Lender's estimates are too high or if taxes and insurance rates go down, the amounts that 1 pay under this
Paragraph 2 will be too lage. If this happensat a time when I am keeping all of my promises and agreements
made in this Mortgage, I will have the right to have the excessamount either promptly repaid to me as a direct
refund or credited to my future monthly payments of Funds. There will be excess amounts if, at any time, the
sum of (a) the amount of Funds which Leader is holding or keeping on deposit, plus (b) the amount of the
monthly payments of Funds which I still must pay between that time and the due dates of taxes and insurance, is
greater than the amount necessaryto pay the taxes and insurancewhen they are due.
If, when payments of taxes and insurance are due, Lender has not received enough Funds from me to make those
payments, I will pay to Lender whatever additional amount is necessaryto pay the taxes and insurance in full. I
must pay that additional amount in one or more payments as Leader may require.
When I have paid all of the amountsdue under the Note and under this Mortgage, Iander will promptly refund to
me any Funds that are then being held or kept on deposit by Lender. If, under Paragraph20 below, either Lender
acquires the Property or the Property is sold, then immediately before the acquisition or sale, Lender will use any
Funds which Leader is holding or has on deposit at that time to reducethe amount that I owe to Lender under the
Note and under this Mortgage.
3. APPLICATION OF BORROWER'S PAYMENTS
Unless the law requires otherwise, Lender will apply eachof my paymentsunder the Note and under Paragraphs 1
and 2 above in the following order and for the following purposes:
(A) First, to pay the amountsthen due to Lender under Paragraph2 above;
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'KENNETH D HALLSTEAD JOYCE A RHINEBECK
WRMW M3
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(B) Next, to pay interest then due under the Note: and
(C) Next, to pay principal then due under the Note.
4, BORROWER'S OBLIGATION TO PAY PRIOR MORTGAGES, CHARGES AND ASSESSMENTS AND
TO SATISFY CLAIMS AGAINST THE PROPERTY
I will keep all promises that I have made in any superior mortgage or deed of trust, including my promises to
make payments when due. I will pay all taxes, assessments,and any other chargesand fines that may be imposed
on the Pmperty and that may be superior to this Mortgage. I will see that any claim, demand or charge that is
made against the Property becausean obligation has not been fulfilled (known as a "lien") is promptly paid or
satisfied if the lien may be superior to this Mortgage. I will also make payments due under my lease if I am a
tenant on the Property and I will pay ground rents (if any) due on the Property.
5. BORROWER' S OBLIGATION TO OBTAIN AND TO KEEP HAZARD INSURANCE ON THE
PROPERTY
I will obtain hazard insurance to cover all buildings, structures and other itnprovements that now are or in the
future will be located on the Property. The insurancemust cover loss or damagecausedby fire, hazards normally
covered by "extended coverage" hazard insurance policies, and other hazardsfor which Lender requires coverage.
The insurancemust be in the amountsand for the periods of time required by lander.
I may choose the insurance company, but my choice is subject to Iander's approval. Lender may not refuse to
approve my choice unless the refusal is reasonable.All of the insurance policies and renewals of those policies
must include what is known as a "standard mortgage clause" to protect Lender. The form of all policies and the
form of all renewals must be acceptableto Lender. Lender will have the right to hold the policies and renewals,
subject to the terms of any superior mortgage or deedof trust.
If there is a loss or damageto the Property, I will promptly notify the insurance company and Lender. If I do not
promptly prove to the insurance company that the loss or damageoccurred, then Lender may do so.
If I abandon the Property, or if I do not answer, within 30 days, a notice from Lender stating that the insurance
company has offered to settle a claim for insurance benefits, then Lender has the authority to collect the proceeds.
Iander may then use the proceedsto repair or restore the Property or to reduce the amount that I owe to Lender
under the Note and under this Mortgage. The 30-day period will begin on the date the notice is mailed, or if it is
not mailed, on the date the notice is delivered.
6. BORROWER'S OBLIGATION TO MAINTAIN THE PROPERTY AND TO FULFILL OBLIGATIONS IN
LEASE AND CONDOMINIUM AND PUD DOCUMENTS
I will keep the Property in good repair. I will not destroy, damageor substantially changethe Property, and I will
not allow the Property to deteriorate. If I do not own but am a tenant on the Property, I will fulfill my obligations
under my lease. If the Property is a unit in a condominium or in a planned unit development, I will fulfill all of
my obligations under the declaration, by-laws, regulations and other documents that create or govern the
condominium or the planned unit development.
7. LENDER'S RIGHT TO TAKE ACTION TO PROTECT THE PROPERTY
If: (A) I do not keep my promises and agreementsmade in this Mortgage, or (B) someone,including me, begins a
legal proceeding that may significantly affect Lender's rights in the Property (such as, for example, a legal
proceeding in bankruptcy, in probate, for condemnation, or to enforce laws or regulations), then Lender may do
and pay for whatever is necessary to protect the value of the Property and Iander's rights in the Property.
Lender's actions under this Paragraph 7 may include, for example, appearing in court, paying reasonable
attorneys'
fees, and entering on the Property to make repairs. Lender must give me notice before Lender may take
any of theseactions. [
I will pay to Lender any amounts, with interest, which Lender spendsunder this Paragraph7. This Mortgage will
protect Lender in caseI do not keep this promise to pay those amounts with interest.
I will pay those amounts to Lender when Leader sendsme a notice requesting that I do so. I will also pay interest
on those amounts at the same rate stated in the Note. Interest on each amount will begin on the date that the
amount is spent by Lender. However, Lender and I may agree in writing to terms of payment that are different
from those in this paragraph.
.
Although Lender may take action under this Paragraph7, Leader doesnot have to do so.
8. LENDER'S RIGHT TO INSPECT THE PROPERTY
Lender, and others authorized by Lender, may enter on and inspect the Property. They must do so in a reasonable
manner and at reasonabletimes. However, before one of those inspections is made, Leader must give me notice
stating a reasonablepurpose for the inspection. That purpose must be related to lander's rights in the Property.
9. AGREEMENTS ABOUT CONDEMNATION OF THE PROPERTY
"condemnation."
A taking of property by any governmental authority by eminent domain is known as I give to
Leader my right: (A) to proceeds of all awards or claims for damages resulting from condemnation or other
governmental taking of the Property; and (B) to proceeds from a sale of the Property that is made to avoid
condemnation. All of those proceedswill be paid to Lender, subject to the terms of any superior mortgage or deed
of trust.
10. BORROWER'S OBLIGATIONS TO PAY MORTGAGE INSURANCE PREMIUMS
If Lender required mortgage insurance as a condition of making the loan that I promise to pay under the Note, I
will pay the premiums for that mortgage insurance. I will pay the premiums until the requirement for mortgage
insurance ends according to my written agreementwith lander or according to law. Lender may require me to
pay premiums in the manner described in Paragraph2 above.
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'KENNETH D HALLSTEAD JOYCE A RNINRBBCK 07/31/200'7
11. CONTINUATION OF BORROWER'S OBLIGATIONS
Lender may allow a person who takes over my rights and obligations to delay or to change the amount of the
monthly payments of principal and interest due under the Note or under this Mortgage. Even if IEnder does this,
however, that person and I will both still be fully obligated under the Note and under this Mortgage.
Lender may allow those delays or changesfor a person who takes over my rights and obligations, even if Lender
is requestednot to do so. Lender will not be required to bring a lawsuit against such a person for not fulfilling
obligations under the Note or under this Mortgage, even if Lender is requestedto do so.
12. CONTINUATION OF LENDER'S RIGHTS
Even if Lender does not exercise or enforce any right of Lender under this Mortgage or under the law, Lender
will still have an of those rights and may exercise and enforce them in the future. Even if Lender obtains
insurance, pays taxes, or pays other claims, chargesor liens againstthe Property, Lender will still have the right,
under Paragraph20 below, to demand that I male Immediate Payment in Full (see Paragraph 20 for a definition
of this phrase) of the amount that I owe to Lender under the Note and under this Mortgage.
13. LENDER'S ABILITY TO ENFORCE MORE THAN ONE OF LENDER's RIGHTS
Each of lander's rights under this Mottgage is separate. Leader may exercise and enforce one or more of those
rights, aswell as any of Lander's other rights under the law, one at a time or all at once.
14. OBLIGATIONS OF BORROWERS AND OF PERSONS TAKING OVER BORROWER'S RIGHTS OR
OBLIGATIONS
Subject to the terms of Paragraph 19 below, any person who takes over my rights or obligations under this
Mortgage will have all of my rights and will be obligated to keep all of my promises and agreementsmade in this
Mortgage. Similarly, any person who takes over Leader's rights or obligations under this Mortgage will have all
of Lender's rights and will be obligated to keep all of Lender's agreementsmade in this Mortgage. (In this
"person"
Mortgage, the word means any person, organization, governmental authority or any other party.)
If more than one person signs this Mortgage as Borrower, each of us is fully obligated to keep all of Borrower's
promises and obligations contained in this Mortgage. Lender may enforce Lender's rights under this Mortgage
against eachof us individually or against all of us together. This meansthat any one of us may be required to pay
all of the amounts owed under the Note and under this Mortgage. However, if one of us does not sign the Note,
then: (A) that person is signing this Mortgage only to give that person's rights in the Property to Lender under the
terms of this Mortgage; and (B) that person is not personally obligated to make payments or to act under the Note
or under this Mortgage. Any person signing this Mortgage but not signing the Note also agrees (i) that Lender
may allow any other Borrower to delay or to changepaymentsdue under the Note or under this Mortgage and (ii)
that Lender may make other accommodationsunder the Note or under this Mortgage. Lender may do this without
obtaining anyone's consentand without modifying the effect of this Mortgage.
15. AGREEMENT ABOUT GIVING NOTICES REQUIRED UNDER THIS MORTGAGE
Unless the law requires otherwise, any notice that must be given to me under this Mortgage will be given by
delivering it or by mailing it by certified mail addressedto me at the addressstated in the section above titled
Property."
"Description Of The A notice will be delivered or mailed to me at a different addressif I give Lender
a notice of my different address. Any notice that must be given to Lender under this Mortgage will be given by
mailing it by certified mail to Lender's addressstated in paragraph (C) of the section above titled "Words Used
Document."
Often In This A notice will be mailed to Lender at a different addressif Leader gives me a notice of
the different address. A notice required by this Mortgage is given when it is mailed or when it is delivered
according to the requirementsof this Paragraph15.
16. LAW THAT GOVERNS THIS MORTGAGE
The state and local law that applies in the place that the Property is located will govern this Mortgage. This will
not limit Federal law that applies to this Mortgage. If any term of this Mortgage or of the Note conflicts with the
law, all other terms of this Mortgage and of the Note will still remain in effect if they can be given effect without
the conflicting term. This meansthat any terms of this Mortgage and the Note which conflict with the law can be
separatedfrom the remaining terms, and the remaining terms will still be enforced.
"expenses" and "attorneys' fees" include all amounts not prohibited
As used in this Mortgage, the words "costs",
by applicable law or limited in this Mortgage.
17. BORROWER'S COPY OF THE NOTE AND OF THIS MORTGAGE
I wiH be given copies of the Note and of this Mortgage. Those copies must show that the original Note and
Mortgage have been signed. I will be given those copies either when I sign the Note and this Mortgage or after
this Mortgage has been recorded in the proper official records.
18. REHABILITATION LOAN AGREEMENT
I will comply with all of the terms and conditions of any home rehabilitation, improvement, repair,
modernization, remodeling or similar loan agreementI have with Lender. If Lender requests it, I will sign and
give to Lender an assignmentof any rights or claims I might have against persons who supply labor, materials or
services in connection with ùnproving the Property. This assignmentwill be in a form acceptableto Lender.
19. AGREEMENTS ABOUT LENDER's RIGHTS IF THE PROPERTY IS SOLD OR TRANSFERRED
Lender may require immediate payment in full of all sums secured by this Mortgage if all or any part of the
Property, or if any right in the Property, is sold or transferred without Lender's prior written permission. Lender
also may require immediate payment in full if a beneficial interest in Borrower is sold or transferred and Borrower
is not a natural person. However, Lender shall not require inunediate payment in fuH if this is prohibited by
federal law on the date of this Mortgage.
If Lender requires immediate payment in full under this Paragraph 19, Lender will give me a notice which states
this requirement. The notice will give me at least 30 days to make the required payment. The 30-day period will
begin on the date the notice is mailed or delivered. If I do not make the required payment during that period
Lender may act to enforce its rights under this Mortgage without giving me any further notice or demand for
payment.
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NON-UNIFORM PROMISES
I also promise and agreewith Lender as follows:
20. LENDER'S RIGHTS IF BORROWER FAILS TO KEEP PROMISES AND AGREEMENTS
If all of the conditions stated in subparagraphs (A), (B), and (C) of this Paragraph 20 are satisfied, Lender
may require that I pay immediately the entire amount then remaining unpaid under the Note and under
this Mortgage. Lender may do this without making any further demand for payment. This requirement
will be called "Immediate Payment In Full."
If Lender requires Immediate Payment in Full, Lender may bring a lawsuit to take away an of my
remaining rights in the Property and to have the Property sold. At this sale Lender or another person may
acquire the Property. This is known as "foreclosure and sale." If the proceeds of this sale are insufficient to
repay Lender the amounts due to Lender from me under the Note and under this Mortgage, Leader may
obtain a court judgment against me personally for the difference between all amounts due from me under
the Note and this Mortgage and the sale proceeds. In any lawsuit for foreclosure and sale, Lender will have
the right to collect all costs and expensesof the foreclosure and sale allowed by law.
Lender may require Immediate Payment In Full under this Paragraph 20 only if all of the following
conditions are satisfied:
(A) I fail to keep any promise or agreement made in this Mortgage, including the promises to pay when
due the amounts that I owe to Lender under the Note and under this Mortgage; and
(B) Lender gives to me, in the manner described in Paragraph 15 above, a notice that states:
(i) The promise or agreement that I failed to keep;
(ii) The action that I must take to correct that failure;
(iii) A date by which I must correct the failure. That date must be at least 10 days from the date on
which the notice is mailed to me;
(iv) That if I do not correct the failure by the date stated in the notice, I will be in default and
Lender may require Immediate Payment In Full, and Leader or another person may acquire
the Property by means of foreclosure and sale;
(v) That if I meet the conditions stated in Paragraph 21 below, I will have the right to have any
lawsuit for foreclosure and sale discontinued and to have the Note and this Mortgage remain in
full force and effect as if Immediate Payment In Full had never been required; and
(vi) That I have the right in any lawsuit for foreclosure and sale to argue that I did not fail to keep
any of my promises or agreements under the Note or under this Mortgage, and to present any
other defensesthat I may have; and
(C) I do not correct the failure stated in the notice from Lender by the date stated in that notice.
21. BORROWER'S RIGHT TO HAVE LENDER'S LAWSUIT FOR FORECLOSURE AND SALE
DISCONTIN0ED
Even if Lender has required Immediate Payment In Full, I may have the right to have discontinued any lawsuit
brought by Lender for foreclosure and sale or for other enforcement of this Mortgage. I will have this right at any
time before ajudgment has beenentered enforcing this Mortgage if I meet the following conditions:
(A) I pay to Lender the full amount that would have been due under this Mortgage and the Note if Lender had
not required Immediate Payment In Full; and
(B) I correct my failure to keep any of my other promises or agreementsmade in this Mortgage; and
(C) I pay all of Lender's reasonableexpensesin enforcing this Mortgage including, for example, reasonable
attorneys'
fees; and
(D) I do whatever Leader reasonably requires to assure that Lender's rights in the Property, Lender's rights
under this Mortgage, and my obligations under the Note and under this Mortgage continue unchanged.
If all of the conditions in this Paragraph21 are fulfilled, then the Note and this Mortgage will remain in full force
and effect as if Immediate Payment In Full had never been required.
22. LENDER'S RIGHTS TO RENTAL PAYMENTS FROM THE PROPERTY AND TO TAKE POSSESSION
OF THE PROPERTY
As additional protection for Leader, I give to Iander all of my rights to any rental payments from the Property.
However, until Lender requires hmnediate Payment In Full under Paragraphs 19 or 20 above, or until I abandon
the Propeny, I have the right to collect and keep those rental payments as they become due. I have not given any
of my rights to rental paymentsfrom the Property to anyoneother than the holder of the Superior Mortgage, and I
will not do so without Lender's consent in writing. If Lender requires hnmediate Payment In Full under
Paragraphs 19 or 20 above, or if I abandon the Property, then Lender, persons authorized by Lender, or a
receiver appointed by a court at Lender's request may: (A) collect the rental payments, including overdue rental
payments, directly from the tenants; (B) enter on and take possessionof the Property; (C) manage the Property;
and (D) sign, cancel and change leases. I agree that if Lender notifies the tenants that Lander has the right to
collect rental payments directly from them under this Paragraph 22, the tenants may make those rental payments
to Lender without having to ask whether I have failed to keep my promises and agreementsunder this Mortgage.
If there is a judgment for Lender in a lawsuit for foreclosure and sale, I will pay to Lender reasonablerent from
the date the judgment is entered for as long as I occupy the Property. However, this does not give me the right to
be a tenant on the Property.
All rental payments collected by Lender or by a receiver, other than the rent paid by me under this Paragraph 22,
will be used first to pay the costs of collecting rental payments and of managing the Property. If any part of the
rental payments remains after those costs have been paid in full, the remaining part will be used to reduce the
amount that I owe to Lender under the Note and under this Mortgage. The costs of managing the Property may
attorneys'
include the receiver's fees, reasonable fees, and the cost of any necessary bonds. Leader and the
receiver will be obligated to account only for those rental paymentsthat they actually receive.
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23. LENDER'S OBLIGATION TO DISCHARGE THIS MORTGAGE WHEN THE NOTE AND THIS
MORTGAGE ARE PAID IN FULL
When Leader has been paid all amounts due under the Note and under this Mortgage, Lender will discharge this
Mortgage by delivering a certificate stating that this Mortgage has been satisfied. I will not be required to pay
Leader for the discharge, but I will pay all costs of recording the discharge in the proper official records.
24. AGREEMENTS ABOUT NEW YORK LIEN LAW
I will receive all amounts lent to me by Lender subject to the trust fund provisions of Section 13 of the New York
Lien Law. This meansthat if, on the date this Mortgage is recorded in the proper official records, construction or
other work on any building or other improvement located on the Property has not been completed for at least four
months, I will: (A) hold all amounts which I receive and which I have a right to receive from Lender under the
Note as a "trust fund"; and (B) use those arnountsto pay for that construction or the work before I use them for
fund"
any other purpose. The fact that I am holding those amounts as a "trust means that I have a special
responsibility under the law to use the amountsin the manner describedin this Paragraph24.
25. CONTINUATION OF BORROWER'S OBLIGATIONS TO MAINTAIN AND PROTECT THE PROPERTY
The federal laws and the laws of the jurisdiction where the Property is located that relate to health, safety or
Laws."
environmental protection are called "Environmental I will not do anything affecting the Property that
violates Environmental Laws, and I will not allow anyone else to do so.
Environmental Laws classify certain substancesas toxic or hazardous. There are other substances that are
considered hazardous for purposes of this Paragraph25. These are gasoline, kerosene, other flammable or toxic
petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or
formaldehyde, and radioactive materials. The substancesdefined as toxic or hazardous by Environmental Laws
Substances."
and the substancesconsidered hazardousfor purposesof this Paragraph25 are called "Hazardous
I will not permit Hazardous Substancesto be present on the Property. I will not use or store Hazardous
Substanceson the Property, and I will not allow anyone else to do so. I also will not dispose of Hazardous
Substanceson the Property, or release any Hazardous Substanceon the Property, and I will not allow anyone else
to do so. However, I may permit the presenceon the Property of small quantities of Hazardous Substancesthat
are generally recognized as appropriate for normal residential use and maintenanceof the Property, and I may use
or store these small quantities on the Property. In addition, unless the law requires removal or other action, the
buildings, the improvements and the fixtures on the Property are permitted to contain asbestos and
"non-friable"
asbestos-containing materials if the asbestosand asbestos-containingrnaterials are undisturbed and
(that is, not easily crumbled by hand pressure).
If I know of any investigation, claim, demand, lawsuit or other action by the government or by a private party
involving the Property and any Hazardous Substanceor Environmental Laws, I will promptly notify the Lender in
writing. If the government notifies me (or I otherwise learn) that it is necessaryto remove a Hazardous Substance
affecting the Property or to take other remedial actions, I will promptly take all necessary remedial actions as
required by Environmental Laws.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
Borrower and Lender request the holder of any superior mortgage or deed of trust to notify Lender in writing, at
Lender's addresson page 1 of this Mortgage, with a copy to P. 0. Box 17170, Baltimore, MD 21203, if the Borrower
Full" sale"
is required to make "Immediate Payment in and if there is "foreclosure and under that superior mortgage or
deed of trust.
, B9 signing this Mortgage I agreeto all of the above.
Stateof New York )
1 ) ss.:
County of M.m W )
I Y ° 7
On the day of 3u in the year before me, the undersigned, personally appeared
, personally known to me
or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed to the
within instrument and acknowledged to me that he/she/they executedthe samein his/her/their capacity(ies), and that by
his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted,
executedthe instrument Garey Rey
Preview
FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 EXHIBIT B FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216 CAT BK: 1472 PG: 231 08/06/2007 MORTGAGE Image: 1 of 7 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 y Aftel recording,return to: CITIFINANCIAL COMPANY(DE) ll 1G72 PW 231 Address: 169 DELAWARE AVE SIDNEY NY 13838 MORTGAGE WORDS USED OFTEN IN THIS DOCUMENT " (A) "Mortgage This document, which is dated July 31st , 2007 , will be called the "Mortgage." (B) "Borrower."KENNETH HALLSTEAD AND JOYCE RHINEBECK 461 MARVIN HOLLOW ROAD WALTON NY 13856 TAX MAP #274-1-16 will sometimesbe called the "Borrower" and sometimes simply "L " "Lender." (C) CITIFINANCIAL COMPANY(DE) will be called the "Lender " Lender is a corporation organized and existing under the laws of Delaware . Lender's address1s 169 DELAWARE AVE SIDNEY NY 13838 "Note." (D) Thenote signed by Borrower and dated July 31st, 2007, and extensions and renewals of that note, will be called the "Note." The Note shows that I owe Lender U.S. $ 23 , 106. 22 plus interest, which I have promised to pay in full by 09/06/2022. "Property." Property" (E) The property that is described below in the section titled "Description of the will be "Property." called the BORROWER'S TRANSFER TO LENDER OF RIGHTS IN THE PROPERTY I mortgage, grant and convey the Property to Lender subject to the terms of this Mortgage. This means that, by signing this Mortgage, I arn giving Lender those rights that are stated in this Mortgage and also those rights that the law gives to lenders who hold mortgages on real property. I am giving Lender these rights to protect Lender from possible lossesthat might result if I do not: (A) Pay all the amounts that I owe Lender asstatedin the Note; (B) Pay, with interest, any amounts that Leader spendsunder this Mortgage to protect the value of the Property and Lender's rights in the Property; and (C) Keep all of my promises and agreementsunder this Mortgage. DESCRIPTION OF THE PROPERTY I give Lender rights in the following Property: (A) The property which is located at 4 61 MARVIN HOLLOW , WALTON , NY 13856 . This Property is in DELAWARE County in the Stateof New York. It has the following legal description: SEE EXHIBIT A (B) All buildings, structures and other improvements that are located on the property described in paragraph (A) of this section; (C) All rights in other property that I have as owner of the property described in paragraph (A) of this section. These rights are known as "easements,rights and appurtenancesattachedto the property"; (D) All rents or royalties from the property described in paragraph (A) of this section; and (E) All of the property described in paragraphs(B) through (D) of this section that I acquire in the future, and all rights described in paragraphs(B) through (D) of this section that I acquire in the future. It may be that I do not own the Property but am a tenant under a lease. In that case, the rights I am giving to Lender by this Mortgage are rights in my tenancy. NY Original (Recorded) Copy(Branch) Copy(Customer) Page1of 6 FILED: INDEX NO. EF2024-216 CAT BK: DELAWARE 1472 PG: 231 COUNTY 08/06/2007 CLERK 03/19/2024 MORTGAGE Image: 03:05 2 of 7 PM NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 m 1472 w 232 'KENNETH D HALLSTEAD JOYCE A RHINEBECK 07/31/2007 BORROWER'S RIGHT TO MORTGAGE THE PROPERTY AND BORROWER'S OBLIGATION TO DEFEND OWNERSEP OF THE PROPERTY I promise that: (A) I lawfully own the Property; (B) I have the right to mortgage, grant and convey the Property to Lender; and (C) there are no outstanding claims or charges against the Property other than claims and charges of record. I give a general warranty of title to Lender. This meansthat I am fully responsible for any losses which Lender suffers becausesomeoneother than myself has some of the rights in the Property which I promise that I have. I promise that I will defend my ownership of the Property against any claims of such rights. UNIFORM PROMISES I promise and I agreewith Lender as follows: 1. BORROWER'S PROMISE TO PAY PRINCIPAL AND INTEREST UNDER THE NOTE AND TO FULFILL OTHER PAYMENT OBLIGATIONS I will promptly pay to Lender when due principal and interest under the Note and late charges as stated in the Note. 2. AGREEMENTS ABOUT MONTHLY PAYMENTS FOR TAXES AND INSURANCE (A) Borrower's Obligation to Make Monthly Payments to Lender for Taxes and Insurance I will pay to Lender all amounts necessary to pay for taxes, assessments,ground rents (if any), and hazard insurance on the Property and mortgage insurance(if any). I will pay those amounts to Leader (i) unless Lender tells me, in writing, that I do not have to do so or (ii) unless the law requires otherwise. Also, I will not have to pay to Lender any amount for which I am already making monthly payments to the holder of any superior mortgage or deed of trust, if it is a savings or banking institution. I will make those payments on the same day that my monthly payments of principal and interest are due under the Note. The amount of eachof my paymentsunder this Paragraph2 will be the sum of the following: (i) One-twelfth of the estimated yearly taxes, assessments (including condominium and planned unit development assessments,if any) and ground rents (if any) on the Property which under the law may be superior to this Mortgage; plus (ii) One-twelfth of the estimated yearly premium for hazard insurance covering the Property; plus (iii) One-twelfth of the estimated yearly premium for mortgage insurance(if any). Lender will determine from time to time my estimated yearly taxes, assessments,ground rents and insurance premiums based upon existing assessmentsand bills, and reasonableestimates of future assessmentsand bills. (Taxes, assessments,ground rents and insurancepremiums will be called "taxes and insurance.") The amounts that I pay to Lender for taxes and insurance under this Paragraph2 will be called the "Funds." The Funds are additional protection for Lender in case I do not fulfill my obligations under the Note and under this Mortgage. (B) Lender's Obligations Concerning Borrower's Monthly Payments for Taxes and Insurance Leader will keep the Funds in a savings or banking institution the deposits or accounts of which are insured or guaranteedby a Federal or stateagency. If Lender is such an institution then Lender may hold the Funds. Except as described in this Paragraph 2, Lender will use the Funds to pay taxes and insurance. Lender will give to me, without charge, an annual accounting of the Funds. That accounting must show all additions to and deductions from the Funds, and the reasonfor eachdeduction. Lender may not charge me for holding or keeping the Punds on deposit, for using the Funds to pay taxes and insurance, for analyzing my payments of Funds, or for receiving, verifying and totalling assessmentsand bills. However, lander may charge me for theseservicesif Lender pays me interest on the Funds and if the law permits Lender to make such a charge. Iander will not be required to pay me any interest or earnings on the Funds unless either (i) Lender and I agree in writing, at the time I sign this Mortgage, that Lender will pay interest on the Funds; or (ii) the law requires Lender to pay interest on the Funds. If Lender's estimates are too high or if taxes and insurance rates go down, the amounts that 1 pay under this Paragraph 2 will be too lage. If this happensat a time when I am keeping all of my promises and agreements made in this Mortgage, I will have the right to have the excessamount either promptly repaid to me as a direct refund or credited to my future monthly payments of Funds. There will be excess amounts if, at any time, the sum of (a) the amount of Funds which Leader is holding or keeping on deposit, plus (b) the amount of the monthly payments of Funds which I still must pay between that time and the due dates of taxes and insurance, is greater than the amount necessaryto pay the taxes and insurancewhen they are due. If, when payments of taxes and insurance are due, Lender has not received enough Funds from me to make those payments, I will pay to Lender whatever additional amount is necessaryto pay the taxes and insurance in full. I must pay that additional amount in one or more payments as Leader may require. When I have paid all of the amountsdue under the Note and under this Mortgage, Iander will promptly refund to me any Funds that are then being held or kept on deposit by Lender. If, under Paragraph20 below, either Lender acquires the Property or the Property is sold, then immediately before the acquisition or sale, Lender will use any Funds which Leader is holding or has on deposit at that time to reducethe amount that I owe to Lender under the Note and under this Mortgage. 3. APPLICATION OF BORROWER'S PAYMENTS Unless the law requires otherwise, Lender will apply eachof my paymentsunder the Note and under Paragraphs 1 and 2 above in the following order and for the following purposes: (A) First, to pay the amountsthen due to Lender under Paragraph2 above; NY Original (Recorded) Copy (Branch) Copy (Customer) Page2 of 6 FILED: INDEX NO. EF2024-216 CAT BK : DELAWARE 1472 P G: 231 COUNTY CLERK 08/O 6 / 2 0 0 7 03/19/2024 MORTGAGE 03:05 PM Image: 3 of 7 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 'KENNETH D HALLSTEAD JOYCE A RHINEBECK WRMW M3 ° 3 ²°° (B) Next, to pay interest then due under the Note: and (C) Next, to pay principal then due under the Note. 4, BORROWER'S OBLIGATION TO PAY PRIOR MORTGAGES, CHARGES AND ASSESSMENTS AND TO SATISFY CLAIMS AGAINST THE PROPERTY I will keep all promises that I have made in any superior mortgage or deed of trust, including my promises to make payments when due. I will pay all taxes, assessments,and any other chargesand fines that may be imposed on the Pmperty and that may be superior to this Mortgage. I will see that any claim, demand or charge that is made against the Property becausean obligation has not been fulfilled (known as a "lien") is promptly paid or satisfied if the lien may be superior to this Mortgage. I will also make payments due under my lease if I am a tenant on the Property and I will pay ground rents (if any) due on the Property. 5. BORROWER' S OBLIGATION TO OBTAIN AND TO KEEP HAZARD INSURANCE ON THE PROPERTY I will obtain hazard insurance to cover all buildings, structures and other itnprovements that now are or in the future will be located on the Property. The insurancemust cover loss or damagecausedby fire, hazards normally covered by "extended coverage" hazard insurance policies, and other hazardsfor which Lender requires coverage. The insurancemust be in the amountsand for the periods of time required by lander. I may choose the insurance company, but my choice is subject to Iander's approval. Lender may not refuse to approve my choice unless the refusal is reasonable.All of the insurance policies and renewals of those policies must include what is known as a "standard mortgage clause" to protect Lender. The form of all policies and the form of all renewals must be acceptableto Lender. Lender will have the right to hold the policies and renewals, subject to the terms of any superior mortgage or deedof trust. If there is a loss or damageto the Property, I will promptly notify the insurance company and Lender. If I do not promptly prove to the insurance company that the loss or damageoccurred, then Lender may do so. If I abandon the Property, or if I do not answer, within 30 days, a notice from Lender stating that the insurance company has offered to settle a claim for insurance benefits, then Lender has the authority to collect the proceeds. Iander may then use the proceedsto repair or restore the Property or to reduce the amount that I owe to Lender under the Note and under this Mortgage. The 30-day period will begin on the date the notice is mailed, or if it is not mailed, on the date the notice is delivered. 6. BORROWER'S OBLIGATION TO MAINTAIN THE PROPERTY AND TO FULFILL OBLIGATIONS IN LEASE AND CONDOMINIUM AND PUD DOCUMENTS I will keep the Property in good repair. I will not destroy, damageor substantially changethe Property, and I will not allow the Property to deteriorate. If I do not own but am a tenant on the Property, I will fulfill my obligations under my lease. If the Property is a unit in a condominium or in a planned unit development, I will fulfill all of my obligations under the declaration, by-laws, regulations and other documents that create or govern the condominium or the planned unit development. 7. LENDER'S RIGHT TO TAKE ACTION TO PROTECT THE PROPERTY If: (A) I do not keep my promises and agreementsmade in this Mortgage, or (B) someone,including me, begins a legal proceeding that may significantly affect Lender's rights in the Property (such as, for example, a legal proceeding in bankruptcy, in probate, for condemnation, or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Iander's rights in the Property. Lender's actions under this Paragraph 7 may include, for example, appearing in court, paying reasonable attorneys' fees, and entering on the Property to make repairs. Lender must give me notice before Lender may take any of theseactions. [ I will pay to Lender any amounts, with interest, which Lender spendsunder this Paragraph7. This Mortgage will protect Lender in caseI do not keep this promise to pay those amounts with interest. I will pay those amounts to Lender when Leader sendsme a notice requesting that I do so. I will also pay interest on those amounts at the same rate stated in the Note. Interest on each amount will begin on the date that the amount is spent by Lender. However, Lender and I may agree in writing to terms of payment that are different from those in this paragraph. . Although Lender may take action under this Paragraph7, Leader doesnot have to do so. 8. LENDER'S RIGHT TO INSPECT THE PROPERTY Lender, and others authorized by Lender, may enter on and inspect the Property. They must do so in a reasonable manner and at reasonabletimes. However, before one of those inspections is made, Leader must give me notice stating a reasonablepurpose for the inspection. That purpose must be related to lander's rights in the Property. 9. AGREEMENTS ABOUT CONDEMNATION OF THE PROPERTY "condemnation." A taking of property by any governmental authority by eminent domain is known as I give to Leader my right: (A) to proceeds of all awards or claims for damages resulting from condemnation or other governmental taking of the Property; and (B) to proceeds from a sale of the Property that is made to avoid condemnation. All of those proceedswill be paid to Lender, subject to the terms of any superior mortgage or deed of trust. 10. BORROWER'S OBLIGATIONS TO PAY MORTGAGE INSURANCE PREMIUMS If Lender required mortgage insurance as a condition of making the loan that I promise to pay under the Note, I will pay the premiums for that mortgage insurance. I will pay the premiums until the requirement for mortgage insurance ends according to my written agreementwith lander or according to law. Lender may require me to pay premiums in the manner described in Paragraph2 above. NY Original (Recorded) Copy(Branch) Copy (Customer) Page3 of 6 FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216 CAT BK: 1472 P G: 7 MORTGAG E 231 Ima e : 4 o f 7 08 / 0 6 / 2 0 0 g NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 u8U1472ncE 234 'KENNETH D HALLSTEAD JOYCE A RNINRBBCK 07/31/200'7 11. CONTINUATION OF BORROWER'S OBLIGATIONS Lender may allow a person who takes over my rights and obligations to delay or to change the amount of the monthly payments of principal and interest due under the Note or under this Mortgage. Even if IEnder does this, however, that person and I will both still be fully obligated under the Note and under this Mortgage. Lender may allow those delays or changesfor a person who takes over my rights and obligations, even if Lender is requestednot to do so. Lender will not be required to bring a lawsuit against such a person for not fulfilling obligations under the Note or under this Mortgage, even if Lender is requestedto do so. 12. CONTINUATION OF LENDER'S RIGHTS Even if Lender does not exercise or enforce any right of Lender under this Mortgage or under the law, Lender will still have an of those rights and may exercise and enforce them in the future. Even if Lender obtains insurance, pays taxes, or pays other claims, chargesor liens againstthe Property, Lender will still have the right, under Paragraph20 below, to demand that I male Immediate Payment in Full (see Paragraph 20 for a definition of this phrase) of the amount that I owe to Lender under the Note and under this Mortgage. 13. LENDER'S ABILITY TO ENFORCE MORE THAN ONE OF LENDER's RIGHTS Each of lander's rights under this Mottgage is separate. Leader may exercise and enforce one or more of those rights, aswell as any of Lander's other rights under the law, one at a time or all at once. 14. OBLIGATIONS OF BORROWERS AND OF PERSONS TAKING OVER BORROWER'S RIGHTS OR OBLIGATIONS Subject to the terms of Paragraph 19 below, any person who takes over my rights or obligations under this Mortgage will have all of my rights and will be obligated to keep all of my promises and agreementsmade in this Mortgage. Similarly, any person who takes over Leader's rights or obligations under this Mortgage will have all of Lender's rights and will be obligated to keep all of Lender's agreementsmade in this Mortgage. (In this "person" Mortgage, the word means any person, organization, governmental authority or any other party.) If more than one person signs this Mortgage as Borrower, each of us is fully obligated to keep all of Borrower's promises and obligations contained in this Mortgage. Lender may enforce Lender's rights under this Mortgage against eachof us individually or against all of us together. This meansthat any one of us may be required to pay all of the amounts owed under the Note and under this Mortgage. However, if one of us does not sign the Note, then: (A) that person is signing this Mortgage only to give that person's rights in the Property to Lender under the terms of this Mortgage; and (B) that person is not personally obligated to make payments or to act under the Note or under this Mortgage. Any person signing this Mortgage but not signing the Note also agrees (i) that Lender may allow any other Borrower to delay or to changepaymentsdue under the Note or under this Mortgage and (ii) that Lender may make other accommodationsunder the Note or under this Mortgage. Lender may do this without obtaining anyone's consentand without modifying the effect of this Mortgage. 15. AGREEMENT ABOUT GIVING NOTICES REQUIRED UNDER THIS MORTGAGE Unless the law requires otherwise, any notice that must be given to me under this Mortgage will be given by delivering it or by mailing it by certified mail addressedto me at the addressstated in the section above titled Property." "Description Of The A notice will be delivered or mailed to me at a different addressif I give Lender a notice of my different address. Any notice that must be given to Lender under this Mortgage will be given by mailing it by certified mail to Lender's addressstated in paragraph (C) of the section above titled "Words Used Document." Often In This A notice will be mailed to Lender at a different addressif Leader gives me a notice of the different address. A notice required by this Mortgage is given when it is mailed or when it is delivered according to the requirementsof this Paragraph15. 16. LAW THAT GOVERNS THIS MORTGAGE The state and local law that applies in the place that the Property is located will govern this Mortgage. This will not limit Federal law that applies to this Mortgage. If any term of this Mortgage or of the Note conflicts with the law, all other terms of this Mortgage and of the Note will still remain in effect if they can be given effect without the conflicting term. This meansthat any terms of this Mortgage and the Note which conflict with the law can be separatedfrom the remaining terms, and the remaining terms will still be enforced. "expenses" and "attorneys' fees" include all amounts not prohibited As used in this Mortgage, the words "costs", by applicable law or limited in this Mortgage. 17. BORROWER'S COPY OF THE NOTE AND OF THIS MORTGAGE I wiH be given copies of the Note and of this Mortgage. Those copies must show that the original Note and Mortgage have been signed. I will be given those copies either when I sign the Note and this Mortgage or after this Mortgage has been recorded in the proper official records. 18. REHABILITATION LOAN AGREEMENT I will comply with all of the terms and conditions of any home rehabilitation, improvement, repair, modernization, remodeling or similar loan agreementI have with Lender. If Lender requests it, I will sign and give to Lender an assignmentof any rights or claims I might have against persons who supply labor, materials or services in connection with ùnproving the Property. This assignmentwill be in a form acceptableto Lender. 19. AGREEMENTS ABOUT LENDER's RIGHTS IF THE PROPERTY IS SOLD OR TRANSFERRED Lender may require immediate payment in full of all sums secured by this Mortgage if all or any part of the Property, or if any right in the Property, is sold or transferred without Lender's prior written permission. Lender also may require immediate payment in full if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person. However, Lender shall not require inunediate payment in fuH if this is prohibited by federal law on the date of this Mortgage. If Lender requires immediate payment in full under this Paragraph 19, Lender will give me a notice which states this requirement. The notice will give me at least 30 days to make the required payment. The 30-day period will begin on the date the notice is mailed or delivered. If I do not make the required payment during that period Lender may act to enforce its rights under this Mortgage without giving me any further notice or demand for payment. NY Original (Recorded) Copy (Branch) Copy (Customer) Page4 of 6 FILED: DELAWARE COUNTY CLERK 03/19/2024 03:05 PM INDEX NO. EF2024-216 CAT BK: 1472 PG: 231 08/06/2007 MORTGAGE Image: 5 of 7 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 'KENNETH D HALLSTEAD JOYCE A RHINEBECK uB91472 M 235 07/31/2007 NON-UNIFORM PROMISES I also promise and agreewith Lender as follows: 20. LENDER'S RIGHTS IF BORROWER FAILS TO KEEP PROMISES AND AGREEMENTS If all of the conditions stated in subparagraphs (A), (B), and (C) of this Paragraph 20 are satisfied, Lender may require that I pay immediately the entire amount then remaining unpaid under the Note and under this Mortgage. Lender may do this without making any further demand for payment. This requirement will be called "Immediate Payment In Full." If Lender requires Immediate Payment in Full, Lender may bring a lawsuit to take away an of my remaining rights in the Property and to have the Property sold. At this sale Lender or another person may acquire the Property. This is known as "foreclosure and sale." If the proceeds of this sale are insufficient to repay Lender the amounts due to Lender from me under the Note and under this Mortgage, Leader may obtain a court judgment against me personally for the difference between all amounts due from me under the Note and this Mortgage and the sale proceeds. In any lawsuit for foreclosure and sale, Lender will have the right to collect all costs and expensesof the foreclosure and sale allowed by law. Lender may require Immediate Payment In Full under this Paragraph 20 only if all of the following conditions are satisfied: (A) I fail to keep any promise or agreement made in this Mortgage, including the promises to pay when due the amounts that I owe to Lender under the Note and under this Mortgage; and (B) Lender gives to me, in the manner described in Paragraph 15 above, a notice that states: (i) The promise or agreement that I failed to keep; (ii) The action that I must take to correct that failure; (iii) A date by which I must correct the failure. That date must be at least 10 days from the date on which the notice is mailed to me; (iv) That if I do not correct the failure by the date stated in the notice, I will be in default and Lender may require Immediate Payment In Full, and Leader or another person may acquire the Property by means of foreclosure and sale; (v) That if I meet the conditions stated in Paragraph 21 below, I will have the right to have any lawsuit for foreclosure and sale discontinued and to have the Note and this Mortgage remain in full force and effect as if Immediate Payment In Full had never been required; and (vi) That I have the right in any lawsuit for foreclosure and sale to argue that I did not fail to keep any of my promises or agreements under the Note or under this Mortgage, and to present any other defensesthat I may have; and (C) I do not correct the failure stated in the notice from Lender by the date stated in that notice. 21. BORROWER'S RIGHT TO HAVE LENDER'S LAWSUIT FOR FORECLOSURE AND SALE DISCONTIN0ED Even if Lender has required Immediate Payment In Full, I may have the right to have discontinued any lawsuit brought by Lender for foreclosure and sale or for other enforcement of this Mortgage. I will have this right at any time before ajudgment has beenentered enforcing this Mortgage if I meet the following conditions: (A) I pay to Lender the full amount that would have been due under this Mortgage and the Note if Lender had not required Immediate Payment In Full; and (B) I correct my failure to keep any of my other promises or agreementsmade in this Mortgage; and (C) I pay all of Lender's reasonableexpensesin enforcing this Mortgage including, for example, reasonable attorneys' fees; and (D) I do whatever Leader reasonably requires to assure that Lender's rights in the Property, Lender's rights under this Mortgage, and my obligations under the Note and under this Mortgage continue unchanged. If all of the conditions in this Paragraph21 are fulfilled, then the Note and this Mortgage will remain in full force and effect as if Immediate Payment In Full had never been required. 22. LENDER'S RIGHTS TO RENTAL PAYMENTS FROM THE PROPERTY AND TO TAKE POSSESSION OF THE PROPERTY As additional protection for Leader, I give to Iander all of my rights to any rental payments from the Property. However, until Lender requires hmnediate Payment In Full under Paragraphs 19 or 20 above, or until I abandon the Propeny, I have the right to collect and keep those rental payments as they become due. I have not given any of my rights to rental paymentsfrom the Property to anyoneother than the holder of the Superior Mortgage, and I will not do so without Lender's consent in writing. If Lender requires hnmediate Payment In Full under Paragraphs 19 or 20 above, or if I abandon the Property, then Lender, persons authorized by Lender, or a receiver appointed by a court at Lender's request may: (A) collect the rental payments, including overdue rental payments, directly from the tenants; (B) enter on and take possessionof the Property; (C) manage the Property; and (D) sign, cancel and change leases. I agree that if Lender notifies the tenants that Lander has the right to collect rental payments directly from them under this Paragraph 22, the tenants may make those rental payments to Lender without having to ask whether I have failed to keep my promises and agreementsunder this Mortgage. If there is a judgment for Lender in a lawsuit for foreclosure and sale, I will pay to Lender reasonablerent from the date the judgment is entered for as long as I occupy the Property. However, this does not give me the right to be a tenant on the Property. All rental payments collected by Lender or by a receiver, other than the rent paid by me under this Paragraph 22, will be used first to pay the costs of collecting rental payments and of managing the Property. If any part of the rental payments remains after those costs have been paid in full, the remaining part will be used to reduce the amount that I owe to Lender under the Note and under this Mortgage. The costs of managing the Property may attorneys' include the receiver's fees, reasonable fees, and the cost of any necessary bonds. Leader and the receiver will be obligated to account only for those rental paymentsthat they actually receive. NY 24260-69/99 Origin.al (Recorded) Copy (Branch) Copy (Customer) Page5 of 6 FILED: INDEX NO. EF2024-216 CAT BK: DELAWARE 1472 PG: 231 COUNTY 08/06/2007 CLERK 03/19/2024 MORTGAGE Image: 03:05 PM 6 of 7 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 03/19/2024 KENNETH D HALLSTEAD JOYCE A RHINEBECK 07/31/2007 uW1472acE 236 23. LENDER'S OBLIGATION TO DISCHARGE THIS MORTGAGE WHEN THE NOTE AND THIS MORTGAGE ARE PAID IN FULL When Leader has been paid all amounts due under the Note and under this Mortgage, Lender will discharge this Mortgage by delivering a certificate stating that this Mortgage has been satisfied. I will not be required to pay Leader for the discharge, but I will pay all costs of recording the discharge in the proper official records. 24. AGREEMENTS ABOUT NEW YORK LIEN LAW I will receive all amounts lent to me by Lender subject to the trust fund provisions of Section 13 of the New York Lien Law. This meansthat if, on the date this Mortgage is recorded in the proper official records, construction or other work on any building or other improvement located on the Property has not been completed for at least four months, I will: (A) hold all amounts which I receive and which I have a right to receive from Lender under the Note as a "trust fund"; and (B) use those arnountsto pay for that construction or the work before I use them for fund" any other purpose. The fact that I am holding those amounts as a "trust means that I have a special responsibility under the law to use the amountsin the manner describedin this Paragraph24. 25. CONTINUATION OF BORROWER'S OBLIGATIONS TO MAINTAIN AND PROTECT THE PROPERTY The federal laws and the laws of the jurisdiction where the Property is located that relate to health, safety or Laws." environmental protection are called "Environmental I will not do anything affecting the Property that violates Environmental Laws, and I will not allow anyone else to do so. Environmental Laws classify certain substancesas toxic or hazardous. There are other substances that are considered hazardous for purposes of this Paragraph25. These are gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. The substancesdefined as toxic or hazardous by Environmental Laws Substances." and the substancesconsidered hazardousfor purposesof this Paragraph25 are called "Hazardous I will not permit Hazardous Substancesto be present on the Property. I will not use or store Hazardous Substanceson the Property, and I will not allow anyone else to do so. I also will not dispose of Hazardous Substanceson the Property, or release any Hazardous Substanceon the Property, and I will not allow anyone else to do so. However, I may permit the presenceon the Property of small quantities of Hazardous Substancesthat are generally recognized as appropriate for normal residential use and maintenanceof the Property, and I may use or store these small quantities on the Property. In addition, unless the law requires removal or other action, the buildings, the improvements and the fixtures on the Property are permitted to contain asbestos and "non-friable" asbestos-containing materials if the asbestosand asbestos-containingrnaterials are undisturbed and (that is, not easily crumbled by hand pressure). If I know of any investigation, claim, demand, lawsuit or other action by the government or by a private party involving the Property and any Hazardous Substanceor Environmental Laws, I will promptly notify the Lender in writing. If the government notifies me (or I otherwise learn) that it is necessaryto remove a Hazardous Substance affecting the Property or to take other remedial actions, I will promptly take all necessary remedial actions as required by Environmental Laws. REQUEST FOR NOTICE OF DEFAULT AND FORECLOSURE UNDER SUPERIOR MORTGAGES OR DEEDS OF TRUST Borrower and Lender request the holder of any superior mortgage or deed of trust to notify Lender in writing, at Lender's addresson page 1 of this Mortgage, with a copy to P. 0. Box 17170, Baltimore, MD 21203, if the Borrower Full" sale" is required to make "Immediate Payment in and if there is "foreclosure and under that superior mortgage or deed of trust. , B9 signing this Mortgage I agreeto all of the above. Stateof New York ) 1 ) ss.: County of M.m W ) I Y ° 7 On the day of 3u in the year before me, the undersigned, personally appeared , personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed to the within instrument and acknowledged to me that he/she/they executedthe samein his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executedthe instrument Garey Rey