Deed of Usufructuary Mortgage
This Deed of Usufructuary 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, the District Central co-operative Bank for ___________ District, having its registered office at___________ and branch office at____________, through its duly appointed 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” herein 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 where he plants sugarcane which is used as the raw material in the aforesaid 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 requisite funds to finance the above referred project he has decided to raise the deficit 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 decided to mortgage his shop with its ongoing business run under the name & style of M/s___________ Juice Centre situate at______________ together with all the machinery, tools and stock-in-trade lying at the said shop, which are 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, subject to the terms and conditions which are set out herein below.
NOW THIS DEED OF USUFRUCTUARY 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) transfers and conveys by way of usufructuary mortgage unto and in favour of the “Mortgagee Bank”, the “Mortgaged Juice Centre” comprised in the Schedule of Property, towards security for the payment of the aforesaid loan amount.
2] The “Mortgagor” herein, in furtherance of the 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 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) and on the satisfaction of “Mortgage Money” (inclusive of interest component) the “Mortgagee Bank” shall reconvey the “Mortgaged Juice Centre” at the cost of the “Mortgagor”.
3] The “Mortgagor” herein covenants with the “Mortgagee Bank” that the latter shall be entitled to take charge of the running business of the “Mortgaged Juice Centre” and keep its business running with the aid of the existing employees and/or such other employees, managers or assistants as it may deem fit and proper for the proper running of the aforestated business and shall retain the “Mortgaged Juice Centre” along with the business until the payment of the “Mortgage Money”.
4] The “Mortgagor” herein covenants with the “Mortgagee Bank” that the latter shall be entitled to appropriate the net profits accruing from the business of “Mortgaged Juice Centre” and apply the same in defraying the “Mortgage Money” (inclusive of interest) until such time that the entire “Mortgage Money” has been repaid, but in any event such period shall not extend beyond_______ years.
5] The “Mortgagor” herein covenants with the “Mortgagee Bank” that during the subsistence of the instant mortgage the latter party (bank) shall be liable to pay all the rates, cess, taxes and assessments due and payable on account of the “Mortgaged Juice Centre”, but the said party shall be entitled to set-off such payments against the usufruct of property.
6] The “Mortgagor” and the “Mortgagee Bank” hereby agree and reiterate that the former party has handed over all the documents, papers, registers and books of accounts 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 usufructuary mortgage.
7] 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 usufructuary mortgage in favour of the “Mortgagee Bank”. The “Mortgagor” further assures the “Mortgagee Bank” that save and except the instant mortgage no other mortgage, lease, leave & licence, charge or any third party interest in the nature of sale, gift or transfer is created in favour of any other party, whatsoever.
8] The “Mortgagor” and the “Mortgagee Bank” hereby covenant with each other that during the subsistence of instant mortgage the “Mortgagor” shall have the right to visit and inspect the “Mortgaged Juice Centre” at reasonable hours by giving prior notice thereof to the “Mortgagee Bank” or his duly authorised Agent. Moreover, the “Mortgagor” shall at all times have the right to inspect and obtain the copies of all the documents, papers, books of accounts and vouchers concerning the business of the “Mortgaged Juice Centre” in the possession and authority of the “Mortgagee Bank” at his cost and expenses.
9] The “Mortgagee Bank” during the subsistence of the instant mortgage shall take care of, preserve and manage the “Mortgaged Juice Centre” as a person of ordinary prudence would do in the like circumstances.
10] The “Mortgagor” and the “Mortgagee Bank” hereby covenant with each other that after the lapse of_____ years, the debt secured by the instant mortgage shall be deemed to have lapsed and redeemed for all intent and purpose and in such event the “Mortgagee Bank” shall not set up the plea or excuse of non-satisfaction of the mortgage debt or any part thereof, but shall peacefully re-convey the vacant possession of the “Mortgaged Juice Centre” 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 & delivered
by ABC, the withinnamed “Mortgagor”
in the presence of
Witness:- Sd/-
Name:-______________
Address:-_____________
ABC
The “Mortgagor”
Signed, sealed & delivered
by DEF, the withinnamed “Mortgagee Bank”
in the presence of
Witness:- Sd/-
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___________/-) towards business loan from the “Mortgagee Bank” vide a Pay Order bearing no._____, dated_____, issued by the Manager of the “Mortgagee Bank”, branch_________.
Dated:__________
Witness:-
I say Received
ABC
The “Mortgagor”
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