Open-End Mortgage


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Open-End Mortgage

A mortgage that allows the borrowing of additional sums, often on the condition that a stated ratio of collateral value to the debt be maintained. A mortgage that provides for future advances on the mortgage and which so increases the amount of the mortgage.

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The bonds are secured by a pledge of gross receipts, a security interest in present and future accounts receivable, contract rights, general intangibles, and an open-end mortgage (on hospital property).
The fund is a $2 billion, co-mingled, open-end mortgage account, providing tax-exempt pension plans with investment opportunities in high-quality mortgages secured by income-producing properties.