Deed of Sub-Mortgage
This Deed of Sub-Mortgage is made and entered into at_______, this____ day of_______, between ABC, an adult Indian, aged about____ years, occ:- Moneylender, having his place of business at__________________, hereinafter, for the sake of brevity, referred to as the “Sub-Mortgagor” (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 place of business at_______________________, hereinafter, for the sake of brevity, referred to as the “Sub-Mortgagee” (which expression, unless it be repugnant to the context and meaning thereof, shall include his legal heirs, executors, administrators and assigns).
WHEREAS, the “Sub-Mortgagor” herein is a licensed moneylender registered under the_______________ Moneylenders’ Act, vide Registration No__________ and he is currently having a Pan-Bidi Shop run under the name & style of M/s____________ Pan-Beedi Shop, being and situate at_________________, admeasuring about_____ square feet (carpet), (hereinafter, for the sake of brevity, referred to as the “Said Pan-Beedi Shop”), which was mortgaged to him under a Deed of Mortgage by XYZ, an adult Indian, aged about_____ years, occ:-business, r/o_______________________, hereinafter, for the sake of brevity, referred to as the “Original Mortgagor”).
AND WHEREAS, under the aforesaid Deed of Mortgage, which was registered in the office of Sub-Registrar of Assurances, ________ in Volume Number_____, Pages Nos._______, Sr.No.____ on_______, the “Original Mortgagor” mortgaged to “Sub-Mortgagor” herein (original mortgagee) the “Said Pan-Beedi Shop” which is more particularly described in the Schedule of Property appended hereto as a security and charge for a loan of Rs_____/- (Rs__________ only) advanced to XYZ, the “Original Mortgagor” by the “Sub-Mortgagor” herein with simple interest @____% p.a, which was payable on or before_______.
AND WHEREAS, XYZ, the “Original Mortgagor” has paid as of today an aggregated sum of Rs_____/- (Rs____________/-only) as half-yearly interest on the aforesaid mortgage to ABC, the “Sub-Mortgagor” herein and a sum of Rs_____/- (Rs________________ only) is due and payable towards half-yearly interest accruing hereinafter, besides the principal sum of Rs______/- (Rs________________ only) which is owed by the “Original Mortgagor.”
AND WHEREAS, ABC, the “Sub-Mortgagor” herein was in the acute need of money he was advanced a loan of Rs________/- (Rs________________ only) by DEF, a moneylender registered under the____________ Moneylenders’ Act, vide Registration No_____, the “Sub-Mortgagee” on the security of the aforesaid unpaid mortgage money and the “Said Pan-Beedi Shop” (the receipt whereof, the “Sub-Mortgagor” doth hereby acknowledge under the Acknowledgment Receipt appended hereto) and the said loan is to be repaid with simple interest @______% p.a on or before________.
AND WHEREAS, it is necessary to reduce into writing the terms and conditions of the said Sub-Mortgage, both the parties hereto hereby agree and covenant as hereunder:-
1] The “Sub-Mortgagor” herein, in consideration of the loan of Rs____/- (Rs________________ only) advanced to him by the “Sub-Mortgagee” creates a charge and security in favour of the “Sub-Mortgagee”, upon the unpaid debt under the aforesaid Mortgage-Deed and the “Said Pan-Beedi Shop” secured thereunder as well as the rights, remedies, benefits and liabilities flowing therefrom;
2] The “Sub-Mortgagor” hereby promises and undertakes to re-pay the loan amount of Rs____/- (Rs_______________ only) with simple interest @_____ % p.a. on or before_______;
3] The “Sub-Mortgagor” and the “Sub-Mortgagee” covenant with each other that the half-yearly interest shall be paid on or before the 30th day of September and 31st day of March each year and any two consecutive defaults in the payment of half-yearly interest shall be a valid ground for the foreclosure of sub-mortgage as well as the mortgage created under the aforesaid Mortgage Deed. However, in the event of such default in the payment of half-yearly interest or the principal sum or any part thereof, the “Sub-Mortgagee” shall be bound to issue a demand notice of fifteen days (15 days) which shall be served at the aforesaid address of the “Sub-Mortgagor” by hand delivery, RPAD or courier service;
4] The “Sub-Mortgagor” covenants with the “Sub-Mortgagee” that there is nothing in the aforestated Mortgage Deed that precludes him from creating a valid sub-mortgage in favour of the latter party and that on the execution of these presents the unpaid debt owed by XYZ, the “Original Mortgagor” would stand transferred in favour of the “Sub-Mortgagee” and that the latter party would be entitled to deal with the same as the “Sub-Mortgagor” in his own right would do under the aforementioned Mortgage Deed, subject to the covenants contained therein;
5] The “Sub-Mortgagor” and the “Sub-Mortgagee” covenant with each other that on the payment of the principal loan amount and the half-yearly interest thereon in whole, the instant sub-mortgage shall stand redeemed and in the event of failure, the “Sub-Mortgagee” shall be entitled to proceed to foreclose the sub-mortgage as well as the mortgage secured by the aforementioned Mortgage-Deed. However, it shall be open to XYZ the “Original Mortgagor” to redeem the “Said Pan-Beedi Shop” by paying the amount due and payable on the instant sub-mortgage to the satisfaction of the “Sub-Mortgagee”.
SCHEDULE OF PROPERTY
A commercial tenement admeasuring_________ square feet (carpet) known as_________ Pan-Beedi Shop, being and situate at_________________, C.S/C.S.N/C.T.S No._____, Revenue Division_______, Taluka______ , District_____.
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 mentioned.
Signed, sealed and delivered
by ABC, the withinnamed
“Sub-Mortgagor” in the presence of
Witness:
Name:-________________
Address:-_______________
ABC
The “Sub-Mortgagor”
Signed, sealed and delivered
by DEF, the withinnamed
“Sub-Mortgagee” in the presence of
Witness:
Name:-________________
Address:-_______________
DEF
The Sub-Mortgagee
————
Acknowledgment Receipt
This is to acknowledge that I have received a sum of Rs__________/- (Rs__________________ only) from DEF, the “Sub-Mortgagee” herein towards loan vide cheque bearing no___________, dated_________, drawn on_____________ Bank,_____________ Branch and the same has been duly honoured.
Dated:- This____ day of___________20____.
Place:-_______________
ABC
The “Sub-Mortgagor”
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