Deed of further charge on the Mortgaged Property
This Deed of further charge is made and entered into at________, this____ day of_____ 20___, between ABC, an adult Indian, aged about_____ years, occ:-Business, r/o_____________________________, 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 C-operative Bank, having its registered office at________ and branch 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, officers, servants, agents, administrators, liquidators and assigns).
WHEREAS, the “Mortgagor” and the “Mortgagee Bank” herein are the original Mortgagor and Mortgagee respectively under a Deed of Simple Mortgage executed and duly registered in the office of Sub-Registrar_________, vide entry no_____, volume_____, page nos____, dated_____ (hereinafter, for the sake of brevity, referred to as the “Principal Deed”) where under a sum of Rs_____/ with simple interest @______% p.a. was paid to the “Mortgagor” by the “Mortgagee Bank” towards business loan repayable by__________, on the strength of an open plot of land being and situate at____________, assessed to Non-Agricultural assessment by way of mortgage security as described in the “Principal Deed” and the Schedule of Property appended hereto. (Hereinafter, for the sake of brevity, referred to as the “Mortgaged Property”).
AND WHEREAS, during the subsistence of the aforesaid “Principal Deed”, the “Mortgagor” herein requested the “Mortgagee Bank” to advance him a further business loan of Rs______/- (Rs__________________ only) on the strength of the “Mortgaged Property”.
AND WHEREAS, the “Mortgagee Bank” on making through investigation was duly satisfied as to the potential of the “Mortgaged Property” to meet and satisfy any further charge to the extent of the additional loan as requested by the “Mortgagor”, it agreed to do so on the terms and conditions which are set out herein below.
NOW THIS DEED OF FURTHER CHARGE WITNESSETH AS UNDER:-
1]The “Mortgagee Bank” has paid the “Mortgagor” a sum of Rs____/- (Rs__________________/- only) towards additional business loan and the “Mortgagor” doth hereby acknowledge the receipt thereof under the Acknowledgment Receipt appended hereto;
2] The “Mortgagor” and the “Mortgagee Bank” hereby covenant with each other that the aforestated additional business loan shall be repaid with simple interest @____% p.a on or before________ (hereinafter, for the sake of brevity, referred to as the “Further Charge Money”) and in furtherance thereof the “Mortgagor” offers the “Mortgagee Bank” additional security by way of further charge on the “Mortgaged Property” in addition and without prejudice to the security created under the “Principal Deed”;
3] The “Mortgagor” and the “Mortgagee Bank” hereby covenant with each other that the half-yearly interest accruing on the additional business loan shall be paid on or before the 15th day of March and September every year and any two consecutive defaults in the payment of half-yearly interest shall be a ground for the foreclosure of mortgage under the “Principal Deed”’
4] The “Mortgagor” and the “Mortgagee Bank” hereby covenant with each other that if the “Mortgagor” pays the entire “Further Charge Money” (inclusive of interest component) on or before________, the further charge shall be deemed to have been redeemed; the “Mortgagor” and the “Mortgagee Bank” further agree that failure to pay the “Further Charge Money” (inclusive of interest) or any part thereof shall invite the consequences under the “Principal Deed”;
5] The “Mortgagor” and the “Mortgagee Bank” hereby declare and reiterate that in the absence of any contrary provision contained herein, the provisions of the “Principal Deed” shall apply mutatis mutandis as if the “Further Charge Money” (inclusive of interest component) had been originally secured by the “Principal Deed”.
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________________
Authorised 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 additional business loan from DEF, the “Mortgagee Bank”, herein by way of a Pay Order dated_______, bearing No__________, issued by the Manager of the “Mortgagee Bank”,__________ branch and the same has been duly realised.
Dated:-________
Witness:-________
ABC
The “Mortgagor”
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