It used to be in the times when our country was founded a “gentleman” could shoot his musket, ride a horse, hunt, speak Latin, perform calculations with mathematics, play an instrument and dance.

The instrument he used (I cannot recall exactly now what it was) exacted very high payments that he simply couldn't make any more.On top of that, his yearly insurance was due to renew at the end of the month, and he certainly did not have the money to pay that.

I hope BP can be as instrumental in your future success as it has for me.

However, Borrower shall receive the Rents until (i) Lender has given Borrower notice of default pursuant to Section 22 of the Security Instrument and (ii) Lender has given notice to the tenant(s) that the Rents are to be paid to Lender or Lender’s agent.

However, you are not giving a mortgage unless you draft the security instrument and then you should also record it.

Paying off the first lien from a junior mortgage is a right that is reserved by the security instrument.  

Certainly, the first could payoff the second and not have to deal with it however I toss some caution out on that matter as most security instruments and notes will allow the Mortgagee to advance on behalf of the borrower and the borrower then owes the advance made, but if the Mortgagee runs out and just pays off a lien and the borrower contests the amount advanced, especially if any interest is attempting to be added onto the advance, may have issues if the lien didn't truly infringe or encumber the first liens ability to enforce and collect.

@Shaun Reilly,In substance the two do not differ because they are both a "Security", though the loan may come from a lender and fall under lending regulations.If the loan is from a private person you are technically still engaged in offering a security by strict definition.From the SEC:Sec. 2 SECURITIES ACT OF 1933The term ‘‘security’’ means any note, stock, treasurystock, security future, security-based swap, bond, debenture,evidence of indebtedness, certificate of interest or participationin any profit-sharing agreement, collateral-trust certificate,preorganization certificate or subscription, transferable share,investment contract, voting-trust certificate, certificate of depositfor a security, fractional undivided interest in oil, gas, orother mineral rights, any put, call, straddle, option, or privilegeon any security, certificate of deposit, or group or index of securities(including any interest therein or based on the valuethereof), or any put, call, straddle, option, or privilege enteredinto on a national securities exchange relating to foreign currency,or, in general, any interest or instrument commonlyknown as a ‘‘security’’, or any certificate of interest or participationin, temporary or interim certificate for, receipt for, guaranteeof, or warrant or right to subscribe to or purchase, anyof the foregoing.

A bank may still be interested in a loan against a property with a title structure as TIC but will likely require all parties to sign the security instrument granting the mortgage/dot.

opinionid=8377&courtid=1) shows that the plaintiff didn't show wrongdoing in the context of the 'instrumentality rule'.