Novation Agreement - PDF

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					                                                                    STATE OF WISCONSIN, DEPARTMENT OF VETERANS AFFAIRS
                                                                    30 West Mifflin Street, P.O. Box 7843, Madison, WI 53707-7843
                Wisconsin Statutes Chapter 45                       (608) 266-1311 FAX (608) 267-0403

                                                 NOVATION AGREEMENT

This agreement is made into by and among

hereinafter called "seller", State of Wisconsin, Department of Veterans Affairs, hereinafter called "investor", and

                                                                                                                hereinafter called "purchaser".

Witnesseth:

Whereas, investor is the owner of a certain promissory note executed by the seller to the State of Wisconsin, Department of Veterans
Affairs, dated                                                             in the amount of $                                       ,
and the mortgage securing said promissory note of even date herewith, which mortgage was filed for record in the office of the
                                                          of                                           County, State of Wisconsin, on
                                         in                                     as Document No.                                  : and

Whereas, seller is obligated and liable for the payment to the investor of the debt evidenced by said promissory note secured by said
mortgage; and

Whereas, said promissory note provides that in the event title to the real estate described in said mortgage is transferred without written
consent of the holder of said promissory note, the holder of said promissory note may, at its option, declare the entire principal amount
thereunder immediately due and payable with accrued interest; and

Whereas, seller has sold and conveyed or is about to sell and convey the real estate described in said mortgage to purchaser and both
seller and purchaser have requested investor to consent to said sale and conveyance and have requested investor to release seller from
further liability under or on account of said promissory note and said mortgage;

Now therefore, in consideration of the mutual covenants and agreements herein, the parties hereto covenant and agree as follows:

          1.    Investor hereby consents to seller's sale and conveyance of the real estate described in said mortgage to purchaser.

          2.    Seller is hereby released from further liability under or on account of said promissory note and said mortgage.

          3.    Purchaser hereby covenants, promises and agrees to pay the indebtedness evidenced by said promissory note at the times,
                in the manner and in all respects as provided in said promissory note, and to perform all of the covenants and to be bound
                by all the terms of said mortgage at the times, in the manner and in all respects as provided in said mortgage, all as
                though said promissory note and said mortgage had originally been made, executed and delivered by the purchaser and
                specifically agrees the investor shall have the right to declare all sums secured by the mortgage to be immediately due
                and payable in the event title to the property is transferred by purchaser without written consent of investor.

          4.    That all terms, covenants and conditions of said promissory note and said mortgage shall remain in full force and effect.

          5.    That the real property described in said mortgage shall remain subject to the lien, charge or encumbrance of said
                mortgage and nothing contained herein or done pursuant hereto shall affect or be construed to affect the lien, charge, or
                encumbrance of said mortgage, or the priority thereof over the other liens, charges or encumbrances.




WDVA 2323 (01/02)           Page 1 of 2                                               You can print the most recent version of this form from
X:\Templates\Fms2323 Novation Agreement.pdf                                          the WDVA website at http://dva.state.wi.us/forms.asp.
          6.    That this agreement applies to and inures to the benefit of and binds all parties hereto and their respective heirs, legatees,
                devisees, administrators, executors, successors and assigns.

                                                                                                            Seller:

Date:                                                                  By:


Subscribed and sworn to before me this                    day of


                                                                                                                                    Notary Public
                                                                                                                                          County
                                                                                              My Commission (Expires) (Is)


                                                                                                          Investor:

Date:                                                                  By:
                                                                                                                                        , Secretary

Subscribed and sworn to before me this                    day of


                                                                                                                       Wisconsin Notary Public

                                                                                              My Commission is Permanent

                                                                                                         Purchaser:

Date:                                                                  By:


Subscribed and sworn to before me this                    day of


                                                                                                                                    Notary Public
                                                                                                                                          County
                                                                                              My Commission (Expires) (Is)


This instrument was drafted by:




WDVA 2323 (01/02)          Page 2 of 2                                                 You can print the most recent version of this form from
X:\Templates\Fms2323 Novation Agreement.pdf                                           the WDVA website at http://dva.state.wi.us/forms.asp.

				
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posted:8/16/2008
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Description: This is an example of novation agreement. This document is useful for conducting novation agreement.