Deed of Mortgage by Conditional Sale
This Deed of Mortgage by Conditional Sale 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 of one Part” (which expression, unless it be repugnant to the context and meaning thereof, shall include his legal heirs, executors, administrators and assigns) and DEF, an adult Indian, aged about____ years, occ:-Moneylender, having his office at__________________, hereinafter, for the sake of brevity, referred to as the “Mortgagee of other Part” (which expression, unless it be repugnant to the context and meaning thereof, shall include his legal heirs, executors, administrators and assigns).
WHEREAS, the “Mortgagor of one Part” is a businessman carrying on business of manufacture, sale and distribution of adhesive tapes and other allied products under the name & style of M/s._____________________ Adhesive Products, a sole proprietary concern of the said Mortgagor.
AND WHEREAS, the “Mortgagor of one Part” desires to expand and diversify his existing business by setting up one more manufacturing facility at__________, for the manufacture of glue-sticks, eraser pens and eraser tapes, which would entail a substantial investment.
AND WHEREAS, the “Mortgagor of one Part” could not raise the entire requisite funds to finance the aforementioned project, he decided to raise the deficit amount through borrowings and with that object in mind he approached the “Mortgagee of other Part”, a licensed moneylender registered under__________ Moneylenders’ Act, vide registration no____.
AND WHEREAS, the loan proposal mooted by the “Mortgagor of one Part” was found viable and truthful by the “Mortgagee of other Part”, the latter decided to advance a loan of Rs_______/- (Rs_________/-only) in favour of the “Mortgagor of one Part” for the business purpose as set out above and more particularly described in the Loan Agreement with simple interest @______% p.a.
AND WHEREAS, the “Mortgagee of other Part” agreed to lend the aforesaid business loan only against some collateral security, the “Mortgagor of one Part” decided to mortgage his flat situate at_______________, which is more particularly described in the Schedule of Property appended hereto (hereinafter, for the sake of brevity, referred to as the “Mortgaged Flat”) and as the “Mortgagee of other Part” accepted the said offer both the parties hereto proceeded to execute the Deed of Mortgage by Conditional Sale pursuant to the terms and conditions set out herein below:-
NOW THIS DEED OF MORTGAGE BY CONDITIONAL SALE WITNESSETH AS UNDER:-
1] The “Mortgagor of one Part”, in furtherance of the business loan of Rs____/- (Rs________/-only) advanced and disbursed by the “Mortgagee of other Part” (the receipt whereof he hereby acknowledges under the Acknowledgment Receipt appended hereto), transfers, conveys, assigns and assures unto and in favour of the “Mortgagee of other Part” by way of mortgage by conditional sale, the “Mortgaged Flat” as described in the Schedule below towards the security for the payment of aforesaid loan.
2] The “Mortgagor of one Part” promises & undertakes to repay the loan amount 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 on the payment of such “Mortgage Money” the sale contemplated by the present Deed shall become void and be of no effect at all. In such event the “Mortgagee of other Part” shall reconvey the “Mortgaged Flat” to the “Mortgagor of one Part” and execute all such documents, deeds and papers as may be necessary to give effect thereto at the cost of the “Mortgagor of one Part”. However, if the “Mortgagor of one Part” fails and/or neglects to pay the “Mortgage Money” or any part thereof on or before________, the “Mortgagee of other Part” shall become the absolute owner of the “Mortgaged Flat” and thereupon, the remainder of the mortgagor’s rights, tile and interest in the “Mortgaged Flat” shall lapse and pass on to the “Mortgagee of other Part”.
3] The “Mortgagor of one Part” assures the “Mortgagee of other Part” that the aforesaid “Mortgaged Flat” is free from encumbrance, charge, lien or third party interest of whatsoever kind and that he has absolute title to the said Flat and has absolute authority to transfer the same. The “Mortgagee of other Part” has executed this deed on the strength of the said assurance. “Mortgagor of one Part” assures the “Mortgagee of other Part” that in the event of any loss, injury or expenses being occasioned to the “Mortgagee of other Part” on account of any adverse claim set up by a third party vis-à-vis the “Mortgaged Flat”, he and his estate shall be liable to indemnify the “Mortgagee of other Part” to the extent of actual loss suffered by him.
4] The “Mortgagor of one Part” and the “Mortgagee of other Part”, hereby agree that till_______, the last date for the payment of “Mortgage Money”, the former party (Mortgagor) shall remain in possession of the “Mortgaged Flat”. However, if the “Mortgagor of one Part” fails and/or neglects to pay the “Mortgage Money” or any part thereof by the aforesaid date, the “Mortgagee of other Part” shall be entitled to take the possession of the “Mortgaged Flat” and in such event the “Mortgagor of one Part” shall be duty bound to hand over vacant and peaceful possession of the “Mortgaged Flat”. If, the “Mortgagor of one Part” fails to hand over vacant and peaceful possession of the “Mortgaged Flat”, the “Mortgagee of other Part” shall be entitled to adopt appropriate legal steps to recover the same and the costs/expenses thereof shall be recovered from the “Mortgagor of one Part” or his estate.
SCHEDULE OF PROPERTY
Flat no____, _______________ Co-operative Housing Society, ______________ Plot No______, in the Revenue Division____, ______________Road/Street, near_____________ (Landmark),________ City/Town, District________, State________.
IN WITNESS WHEREOF, both the parties hereto have set their respective hands to this writing, on the day, month and year, first hereinbefore written.
Signed, sealed and delivered by ABC,
the withinnamed “Mortgagor of one Part”
in the presence of Witness:
Name:-__________________
Address:-________________
ABC
The “Mortgagor of one Part”
Signed, sealed and delivered by DEF,
the withinnamed “Mortgagee of other Part”
in the presence of Witness:
Name:-__________________
Address:-_________________
DEF
The “Mortgagee of other Part”
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Acknowledgment Receipt
This is to acknowledge that I have received a sum of Rs_______/- (Rs______________/-only) from DEF, the “Mortgagee of other Part” for the purpose of business loan as described hereinabove, by a cheque dated____, bearing No______, drawn on______________ Bank,__________ branch and the same has been duly realised.
Dated:-_________
I say received
ABC
The “Mortgagor of one Part”
Witnesses:-
1] Sd/-
2] Sd/-
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