Legal Question in Business Law in New York
What is Purchase Money Morgage Status?
I have a promissory note with a person who purchased my business.(secured by the business) I was given Purchase Money Morgage Status if he exercised the option to purchase the property down the road.
Does this mean if he purchases the property than the note becomes due and must be paid in full????? Thanks for any help given....
2 Answers from Attorneys
Re: What is Purchase Money Morgage Status?
The terms of the note itself will control. You should review it carefully. To the extent it is silent, and depending on the secured status of the note, the UCC may or may not also control.
If you'd like to discuss your options, please feel free to call the office at 212.366.1324.
Re: What is Purchase Money Morgage Status?
This is difficult to answer without seeing the document itself. It appears that the Note for the business purchase is also intended to become additional collateral for the property purchase, and is to be considered a mortgage if the property is purchased. It probably allows the Note to be recorded as a Mortgage against the property, in addition to any separate terms of the property purchase and financing arrangements, to give you additional security. I do not expect that it would require it be paid off if the property option were to be exercised, but without reading the document, I cannot be sure. If you would like me to review the document, you could FAX it to me at 973-377-8167.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
