Deed of English Mortgage
This Deed of English Mortgage is made and entered into at______, this____ day of______, 20___, between ABC, an adult Indian, aged about____ years, occ:- Business, resident of_____________________, hereinafter for the sake of brevity, referred to as the “Mortgagor” (which expression, unless it be repugnant to the context and meaning thereof, shall include his legal heirs, executors, administrators and assigns) and DEF, a Scheduled Co-operative Bank, having its branch office at_________ and registered office at_____________, through its Manager Shri._________________, hereinafter, for the sake of brevity, referred to as the “Mortgagee Bank” (which expression, unless it be repugnant to the context and meaning thereof, shall include its legal representatives, administrators, liquidators and assigns);
WHEREAS, the “Mortgagor” is a businessman carrying on the business of manufacture, sale and distribution of aluminium containers and steel boxes under the name & style of M/s.____________________ Metal works.
AND WHEREAS, the “Mortgagor” desires to expand his existing business by setting up one more manufacturing facility at________, which would entail a substantial monetary investment.
AND WHEREAS, the “Mortgagor” presently is not in position to raise the entire requisite funds to finance the above referred project, he decided to borrow an appropriate loan which would meet the deficit amount and with that object in mind he has approached the “Mortgagee Bank” at its_________ branch office.
AND WHEREAS, loan proposal submitted by the “Mortgagor” was found viable and truthful by the “Mortgagee Bank”, the latter decided to sanction a loan of Rs____/- (Rs______________/-only) in favour of the “Mortgagor” for the purpose of business loan as set out above, and more particularly described in the Loan Agreement with simple interest @_____%.
AND WHEREAS, the “Mortgagee Bank” agreed to sanction the aforesaid business loan against some collateral security, the “Mortgagor” herein decided to mortgage his existing factory at________ together with all the machinery, tools and stock-in-trade lying at the said factory which are more particularly described in the Schedule of Property appended hereto (hereinafter, for the sake of brevity, referred to as the “Mortgaged Property”) and as the “Mortgagee Bank” accepted the said offer both the parties hereto are hereby proceeding to execute this Deed of English Mortgage subject to the terms and conditions which are set out herein below.
NOW THIS DEED OF ENGLISH MORTGAGE WITNESSETH AS UNDER:-
1] The “Mortgagor” herein, in furtherance of the business loan of Rs______/- (Rs___________/-only) sanctioned by the “Mortgagee Bank” (the receipt whereof he hereby acknowledges under the Acknowledgment Receipt appended hereto) grants, transfers, conveys, assigns and assures unto and in favour of the “Mortgagee Bank” , the “Mortgaged Property” comprised in the Schedule of Property towards the security for the payment of aforementioned loan and interest thereof, and further promises to do, perform and execute or cause to be done, performed or executed all acts, deeds and things as may be required to assure such rights in favour of the “Mortgagee Bank”.
2] The “Mortgagor” herein promises and undertakes to pay the aforementioned loan of Rs_____/- (Rs___________/-only) together with simple interest @_____% p.a. on or before___________ (hereinafter, for the sake of brevity, referred to as the “Mortgage Money”) and further promises that the yearly interest accruing on the aforesaid loan shall be paid on or before the 15th day of March every year.
3] The “Mortgagor” and the “Mortgagee Bank” hereby agree that, if the “Mortgagor” pays the entire “Mortgage Money” (inclusive of interest component) by_________ (hereinafter, for the sake of brevity, referred to as the “Due date”), the mortgage debt shall be deemed to have been redeemed and in such event the “Mortgagee Bank” shall reconvey the “Mortgaged Property” to the “Mortgagor” at the entire cost of the “Mortgagor”.
4] The “Mortgagor” and the “Mortgagee Bank” hereby agree that if the “Mortgagor” fails and/or neglects to pay the principal loan amount on or before the “Due date” or if the “Mortgagor” fails and/or neglects to pay the yearly interest for two consecutive years, despite receipt of written notice after fifteen days thereof, the said default shall be treated as the breach of these presents and such breach shall constitute a valid ground for the “Mortgagee Bank” to institute a suit and/or other appropriate proceedings for the sale of “Mortgaged Property” and for the appointment of a Receiver to take charge of the “Mortgaged Property” during the interregnum until the disposal of suit or like proceedings.
5] The “Mortgagor” herein assures the “Mortgagee Bank” that he is the bonafide and absolute owner of the “Mortgaged Property” and the same is free from any charge, lien or encumbrance of any kind. The “Mortgagor” further assures the “Mortgagee Bank” that he has not done any act, deed or thing which could preclude him from mortgaging the “Mortgaged Property” or any part thereof in favour of the “Mortgagee Bank” and that the same is capable of being charged and assured for the repayment of the “Mortgage Money”.
6] The “Mortgagor” and the “Mortgagee Bank” both hereby declare and confirm that the “Mortgaged Property” has been valued by a Government Approved Valuer to the satisfaction of the latter. The “Mortgagor” on his part, agrees and undertakes that he shall not sell, lease, mortgage or let out the “Mortgaged Property” nor shall he credit any third party interest inimical to the interests of the “Mortgagee Bank” during the subsistence of the said mortgage. The “Mortgagor” further agrees to maintain the stock-in-trade at the level existing on the date of these presents.
7] The “Mortgagee Bank” on its part agrees and re-iterates that the “Mortgagor” shall have the right to redeem the “Mortgaged Property” by repaying the entire “Mortgage Money” (inclusive of interest component) on or before the “Due date” and on such payment being made the instant mortgage shall be deemed to have been redeemed and thereupon all the rights which the “Mortgagee Bank” might have acquired under this mortgage deed shall revert back to the “Mortgagor”.
SCHEDULE OF PROPERTY
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IN WITNESS WHEREOF, both the parties hereto have set and subscribed their respective hands to this writing on the day, month and year first hereinbefore written.
Signed, sealed and delivered by
ABC, the withinnamed “Mortgagor”
in the presence of witness:
Name:-____________________
Address:-__________________
ABC
The “Mortgagor”
Signed, sealed and delivered by
DEF, the withinnamed “Mortgagee Bank”
in the presence of witness:
Name:-____________________
Address:-__________________
Shri. ____________
Manager of DEF
The “Mortgagee Bank”
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Acknowledgment Receipt
This is to acknowledge that I have received a sum of Rs_____/- (Rs____________/-only) towards business loan from DEF, the “Mortgagee Bank” herein vide a Banker’s cheque dated______, bearing number________ issued by the “Mortgagee Bank” and the same has been duly realised.
Dated:-_______
Witness:-_______
I say Received
ABC
The “Mortgagor”
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