Mortgages as has been said are personal property and hence subject to tax as such. The lender in considering the desirability of an investment takes into consideration not only the interest return, but also any taxes which may reduce that return. In case the taxes rose materially the mortgage would pay a lower net return. The mortgagee may protect himself by making it possible for him to call in his loan in the event of an increase of taxes. In New York and several other States this clause, known as the "Brundage" clause is used, particularly in loans made by the title companies. Its usual form follows:

In the event of the passage after the date of this mortgage of any law of the State of New York, deducting from the value of land for the purposes of taxation any lien thereon, or changing in any way the laws for the taxation of mortgages or debt secured by mortgage for State or local purpose, or the manner of the collection of any such taxes, so as to affect this mortgage, the holder of this mortgage and of the debt which it secures, shall have the right to give thirty days' written notice to the owner of the land requiring the payment of the mortgage debt. If such notice be given, the said debt shall become due, payable and collectible at the expiration of said thirty days.