This office lease form is a standard default remedy clause, providing for the collection of the difference between the rent due and owing under the lease and the rents collected in the event of mitigation.
The Florida Default Remedy Clause is a legal provision that outlines the consequences and remedies available to lenders or mortgagees when borrowers default on their loan obligations in the state of Florida. This clause, also known as the "Acceleration Clause" or "Due on Default Clause," is a vital component of mortgage agreements in Florida. It allows lenders to take legal actions and enforce their rights upon borrower default. When borrowers fail to make timely payments, breach other loan terms, or violate the covenants of the mortgage agreement, the Florida Default Remedy Clause empowers the lender to declare the entire loan amount due immediately. This acceleration provision allows the lender to demand immediate payment of the remaining principal balance, accrued interest, and any other applicable fees or costs stipulated in the agreement. The Florida Default Remedy Clause equips lenders with various remedies to protect their interests in the event of default. These remedies may include foreclosure proceedings, repossession of the property securing the loan, and seeking a deficiency judgment to recover any remaining balance owed by the borrower after the foreclosure sale. Foreclosure is often the most common recourse exercised under the Florida Default Remedy Clause. Lenders can initiate foreclosure proceedings through a judicial process, involving filing a lawsuit to obtain a court order for the sale of the property. Alternatively, lenders and borrowers can include a power of sale clause in their agreement, enabling the lender to foreclose without court intervention. In Florida, there are several variations of the Default Remedy Clause, each with specific nuances. Some noteworthy types include: 1. Standard Default Remedy Clause: This is the most basic type of clause, allowing lenders to demand full repayment of the loan after a borrower defaults. 2. Cross-Default Remedy Clause: This clause applies when a borrower defaults on multiple loans with the same lender or a group of affiliated lenders. In such cases, the lender can accelerate all loans simultaneously, even if only one loan is in default. 3. Cure Period Remedy Clause: This clause grants borrowers a specific period after default to cure their breach by making the required payments or remedying the default. If borrowers fail to cure within the designated timeframe, the lender can invoke acceleration. 4. Security Agreement Remedy Clause: This type of clause distinguishes between the default of the borrower's payment obligations and the default of other covenants or terms under the security agreement. It allows the lender to separately address defaults related to payment and those related to other loan obligations. The Florida Default Remedy Clause is a crucial component of mortgage agreements, providing lenders with the necessary tools to protect their financial interests and recover outstanding debts in case borrowers default on their obligations. It is essential for borrowers to fully comprehend the terms of this clause to ensure compliance with their loan agreements and avoid potential legal repercussions.
