Deed of Usufructuary Mortgage by Conditional Sale (Anomalous Mortgage)
This Deed of Usufructuary Mortgage by Conditional Sale (Anomalous Mortgage) is made and entered into at_________, this____ day of_________, 20_____, between ABC, an adult Indian, aged about____ years, occ:- Agro-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 District Central Co-operative Bank for________ District, 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, administrators, liquidators and assigns).
WHEREAS, the “Mortgagor” is an Agro-businessman carrying on the business of production and sale of jaggery, molasses and other sugarcane by-products under the name & style of M/s.____________________________ Sugarcane Works, a Sole Proprietary Concern of the “Mortgagor”. Besides, the “Mortgagor” also owns agricultural lands at different places in the village________, where he plants sugarcane which is used as the raw material in the aforesaid jaggery factory.
AND WHEREAS, the “Mortgagor” desires to expand his existing business by setting up one more jaggery production facility at______, which would entail a sizable monetary investment.
AND WHEREAS, the “Mortgagor” presently is not in position to raise the whole of the requisite funds to finance the above referred project he has decided to raise the balance amount through loan and with that object in mind he has approached the “Mortgagee Bank” at its________ branch office.
AND WHEREAS, the 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 described above with simple interest @______% p.a.
AND WHEREAS, the “Mortgagee Bank” agreed to sanction the aforesaid business loan only against some collateral security, the “Mortgagor” herein offered to mortgage his sugarcane juice centre, known as___________________ Juice Centre, situate at__________________, which he has presently let out to XYZ on Business Conducting Agreement for 3 years with effect from________, which property is more particularly described in the Schedule of Property appended hereto (hereinafter, for the sake of brevity, referred to as the “Mortgaged Juice Centre”) and as the “Mortgagee Bank” accepted the said offer both the parties hereto are proceeding to execute this Deed of Usufructuary Mortgage by Conditional Sale, subject to the terms & conditions set out herein below:-
NOW THIS DEED OF USUFRUCTUARY MORTGAGE BY CONDITIONAL SALE 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) hereby grants, transfers, conveys, assigns and assures unto and in favour of the “Mortgagee Bank”, the “Mortgaged Juice Centre” comprised in the Schedule of Property towards the security for the payment of the aforementioned loan amount and interest (hereinafter, for the sake of brevity, referred to as the “Mortgage Money”);
2] The “Mortgagor” herein, in furtherance of instant mortgage has transferred the possession of the “Mortgaged Juice Centre” to the “Mortgagee Bank” and the latter doth hereby acknowledge the same. The “Mortgagor” further agrees with that the “Mortgagee Bank” that the latter shall be entitled to retain the possession of the “Mortgaged Juice Centre” until the payment of “Mortgage Money” in entirety (inclusive of interest component);
3] The “Mortgagor” herein covenants with the “Mortgagee Bank” that he shall pay the principal amount as well as interest accruing on such loan on or before_________ (hereinafter, for the sake of brevity, referred to as the “Due Date”) and such yearly interest shall be payable on or before the 15th day of March every year;
4] The “Mortgagor” herein covenants with the “Mortgagee Bank” that the latter shall be entitled to recover in his place & stead____% of the net profits earned from the business of aforesaid Sugarcane Juice Centre which at present is let out to XYZ under an Agreement of Conducting Business for a period of 3 years w.e.f.________. The “Mortgagor” further covenants with the “Mortgagee Bank” that the latter shall be entitled to apply and appropriate the above referred share of business profits in payment of yearly interest, if the “Mortgagor” commits default on the payment of yearly interest. The “Mortgagor” further covenants with the “Mortgagee Bank” that if the yearly interest accruing on the above loan is paid in time, the “Mortgagee Bank” shall be entitled to apply and appropriate the share of business profits in the payment of principal money;
5] The “Mortgagor” herein covenants with the “Mortgagee Bank” that on the expiration of the term under the Agreement of conducting business, the latter party, in the place and stead of the “Mortgagor”, shall be entitled to renew the agreement for a further period of 2 years at a time, but in any case such extended period shall not exceed 6 years in the aggregate. The “Mortgagor” further covenants with the “Mortgagee Bank” that the latter party shall be at liberty to engage any other proper party for the execution of Agreement of conducting business;
6] The “Mortgagor” and the “Mortgagee Bank” covenant with each other that during the subsistence of instant mortgage, the “Mortgagor” shall have at all reasonable times, subject to prior oral notice to the concerned parties, the right to inspect the “Mortgaged Juice Centre”. The “Mortgagee Bank” on its part agrees and undertakes to provide the “Mortgagor” with inspection of all the books of accounts, vouchers, papers and writings concerning the business of the “Mortgaged Juice Centre”, besides the copies and extracts thereof, at the cost of the “Mortgagor”;
7] The “Mortgagor” and the “Mortgagee Bank” covenant with each other that if the “Mortgagor” pays or causes to be paid the entire “Mortgage Money” (inclusive of interest component) on or before the “Due Date”, the mortgage shall be deemed to have been redeemed and the instant sale shall become void and be of no effect at all; In such event the “Mortgagee Bank” shall take all such steps as may be reasonably necessary to reconvey the property (“Mortgaged Juice Centre”), besides putting him back in the peaceful possession of such property;
8] The “Mortgagor” and the “Mortgagee Bank” covenant with each other that if the “Mortgagor” fails and/or neglects to pay the “Mortgage Money” or any part thereof (inclusive of interest component) on or before the “Due Date”, the instant shall become absolute and any residuary rights of the “Mortgagor” in the “Mortgaged Juice Centre” shall lapse and pass on to the “Mortgagee Bank”. In such event the “Mortgagor” shall do, perform or execute or cause to be done, performed or executed all such acts, duties and deeds as may be necessary to give effect to the rights, title and interest of the “Mortgagee Bank” in the said “Mortgaged Juice Centre”;
9] The “Mortgagor” and the “Mortgagee Bank” covenant with each other that during the subsistence of instant mortgage the latter party (bank) shall be liable to pay all the rates, cess, taxes and assessments due and payable on the “Mortgaged Juice Centre”, but the said party shall be entitled to set-off such payment against usufruct of the property;
10] The “Mortgagor” and the “Mortgagee Bank” hereby agree and re-iterate that the former party has handed over all the documents, papers and writings concerning the business of the “Mortgaged Juice Centre” to the “Mortgagee Bank” and the latter party on being satisfied about its worth and viability has agreed to accept it by way of instant mortgage;
11] The “Mortgagor” herein assures the “Mortgagee Bank” that he is the absolute owner of the “Mortgaged Juice Centre” and that he has full authority and absolute title to transfer it by way of instant mortgage in favour of the “Mortgagee Bank”. The “Mortgagor” further assures the “Mortgagee Bank” that, save and except the instant mortgage and the Agreement of Conducting Business referred above, he or any one claiming under him has not created any third party adverse interest in or over the “Mortgaged Juice Centre” by way of sale, gift, lease, leave & licence, charge or any other like transfer in favour of any party whatsoever;
12] The “Mortgagee Bank” hereby promises and undertakes that notwithstanding the Business conducting Agreement, it shall, during subsistence of the instant mortgage, take care of and preserve the “Mortgaged Juice Centre” as a man of ordinary prudence would do in the like circumstances.
SCHEDULE OF PROPERTY
A commercial tenement admeasuring about_______ Sq.Feet (carpet), known as_____________ Juice Centre, being and situate at________________, C.S/C.S.N/S.N_____________, city/town/village_______, district_________, state___________.
IN WITNESS WHEREOF, both the parties hereto have set and subscribed their respective hands to this writing on the day, month and year first hereinabove 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”
——-
Acknowledgment Receipt
This is to acknowledge that I have received a sum of Rs______/_ (Rs___________ only) towards business loan from the “Mortgagee Bank” vide a Pay Order bearing no_____, dated______, issued by the Manager of Mortgagee Bank, Branch______________.
Dated:-___________
Witness:-___________
I say Received
ABC, the “Mortgagor”
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