Mortgage-deed in favour of Bank to Secure Indebtedness on Loan Account

Mortgage-deed in favour of Bank to Secure Indebtedness on Loan Account

This indenture made the …………. day of …………. 2000 between AB of …….…………… (hereinafter called the MORTGAGOR which expression shall be deemed to include his heirs, executors, administrators and assigns) of the one part and the ELH Bank Limited, a Joint Stock Company incorporated under the Indian Companies Act and having its registered office at …………………. (hereinafter called the BANK which expression shall include its assigns) of the other part.

Whereas the MORTGAGOR is the owner and the Proprietor of the messuages, lands, hereditaments and premises described in the Schedule hereto and intended to be hereby mortgaged free from encumbrances and whereas the BANK has agreed to lend to the MORTGAGOR the sum of Rs. …………. only on having the repayment thereof with interest secured in the manner hereinafter appearing.

Now this indenture witnesseth as follows:

1. In pursuance of the said agreement and in consideration of the sum of Rs. …….. paid on or before the execution of these presents by the BANK to the mortgagor (the receipt whereof the MORTGAGOR hereby acknowledges) the MORTGAGOR hereby covenants with the BANK as follows:

(a)        That the MORTGAGOR will pay to the BANK the said principal sum

of …………… by equal half-yearly instalments of Rs. ………….. on the first day of …………….. and the first day of …………….. each year, commencing from ………….., and any interest due thereon so that the whole debt is paid in full on or before the ……..……….

(b)        That the MORTGAGOR shall in addition pay interest on the principal sum secured by these presents at the rate of …………. per cent

per annum.

(c)        That the MORTGAGOR shall pay to the BANK interest at the rate stipulated in cl. (2) with half yearly rests on the ……….. and …………. up to date of realisation in case the BANK has to institute a suit for recovery of the principal and interest or any portion thereof that may be due to the BANK. And if at any time six months’ interest payable under these presents shall remain owing and unpaid then the interest so in arrears shall be converted into principal and until paid off shall carry interest at the aforesaid rate of ………… per cent per annum with half-yearly rests.

(d)        That the MORTGAGOR shall and will during the subsistence of this security at his own costs and charges and expense keep and maintain the said premises hereby mortgaged in good repair and tenantable condition.

(e)        It is hereby agreed and declared that in case any of the instalments of

principal or interest payable under these presents be not satisfied on the dates hereinbefore appointed for the payments of such instalments of principal or interest then the whole amount of principal remaining unpaid together with interest due shall at once become payable to the BANK and the BANK may forthwith enforce at once any of the remedies to which a holder of a simple mortgage is entitled under the Transfer of Property Act.

(f)         That the MORTGAGOR will within one month from the date of these presents insure and keep insured the building and such other part of the mortgaged premises as are of an insurable nature or any part or parts thereof from loss or damage by fire in the full value thereof in some insurance office to be approved of by the BANK in the joint names of the MORTGAGOR and the BANK as mortgagee (the relative policy to contain the agreed bank clause of the  Fire Insurance Association) and will duly pay all premiums and sums of money payable for that purpose and will deliver to the BANK the policy for such insurance and the receipt for every such payment within seven days after it shall become due and in case the MORTGAGOR shall neglect or refuse to keep the said premises insured to the amount aforesaid or to deliver such policy and receipts as aforesaid then and in every such case it shall be lawful for the BANK to insure the same to the amount aforesaid or any less amount and all sums of money expended by the Bank in or about such insurance as aforesaid with interest for the same at the rate of Rs. ……………. per cent per annum (with half-yearly rests) computed from the time or respective times of advancing the same shall be repaid by the MORTGAGOR to the BANK on demand and in the meantime shall be a charge on the premises hereby mortgaged in addition to the principal sum and interest thereon.

(g)        That the MORTGAGOR agrees that all sums of money awarded as compensation for any compulsory acquisition of any portion of the mortgaged property by any Government, municipal or railway or district board authority shall be receivable by the BANK direct on behalf of the MORTGAGOR and that such money as well as moneys received under and by virtue of any such insurance as aforesaid shall at the option of the bank either be forthwith applied in or towards substantially rebuilding, re-instating or repairing the said premises or in or towards payment of the principal money, interest and costs for the time being remaining due on the security of these presents.

2. For the consideration aforesaid and in further pursuance of the said agreement the MORTGAGOR hereby grants and transfers by way of simple mortgage unto the BANK all the property described in the Schedule hereto together with all rights, easements and appurtenances thereto and all his rights, title and interest in and to the said premises to the intent that all the said premises hereby mortgaged shall remain and be charged by way of simple mortgage and free from all encumbrances as security for the payment to the Bank of the said principal money, interest and costs in accordance with the covenants hereinbefore contained.

3. That the MORTGAGOR shall allow the BANK, its servants, agents and surveyors at all reasonable times to enter the said premises and view and examine the state and condition thereof.

4. Provided always that the MORTGAGOR may at any time after giving the bank thirty days’ notice pay the BANK the whole of the principal sum and interest and costs that may be due to the BANK.

The Schedule above referred to

In witness whereof the parties hereto have executed these presents on the day, month and year first above-written.

Signed, sealed and delivered by

AB the MORTGAGOR in the presence of:

Signed, sealed and delivered by

Mr. ……………………. pursuant to Board  Resolution of ………………… of ELH Bank Ltd. in the presence of:

Memo of Consideration