Mortgage-deed with Guarantors

Mortgage-deed with Guarantors

This deed of mortgage is made this …………..  day of ……………. 2000 between X Ltd. an existing company within the meaning of the Companies Act 1956 having its registered office at ……………. (hereinafter referred to as the MORTGAGORs which term shall include its successors and assigns) of the first part and Friendly Society Ltd. registered under the West Bengal Societies Registration Act and having its principal office at ……………. (hereinafter referred to as the MORTGAGEEs which term shall include its successors and assigns) of the second part and AB and CD, sons of EF residing at ………………… (hereinafter called the guarantors which term shall include their heirs, executors and administrators) of the third part. MORTGAGEE the MORTGAGORs have, by the Indenture dated ……………….., acquired from the Improvement Trust a Plot No. …………. situated

in …………… measuring …………. acres in area or thereabout (and more particularly described in the Schedule hereunder) on lease with option to purchase all the said land together with all rights, easements and appurtenances to the same except mines, and mineral products, buried treasures, petrol oil and quarries whatsoever in, under or within the said land as mentioned in the said Indenture, for a consideration of Rs. ……….. payable in seven instalments as therein described, out of which the said MORTGAGORs have paid to the said Improvement Trust, first ……………. instalment with interest amounting to Rs. ……… in addition to a sum of

Rs. ………… deposited as earnest money to be adjusted against the last instalment, and now only the remaining ………….. instalments of Rs. ………. each (which shall fall due on ………. and …………. respectively) remain to be paid out of which Rs. ……….  earnest money as aforesaid shall be adjusted against the last instalment. A sum of Rs. ..…….. therefore remains to be paid to the said Lessor in respect of the aforesaid plot of land; and MORTGAGEE the MORTGAGORs have on the said plot of land erected a building at the cost of about Rs. …………. and have besides machinery installed thereon worth about Rs. …………….  and MORTGAGEE the MORTGAGORs are under their Memorandum and Articles of Association empowered to raise money and secure the payment thereof by mortgage or otherwise of all those assets; and MORTGAGEE in exercise of the said powers, the Board of Directors have by their Resolution No. ……… dated ……………. authorized Shree ……………… ; and Shree ………………….. two of the directors of the Company, to sign and execute relevant mortgage-deed in favour of the MORTGAGEEs and to comply with all other formalities (including registration, etc.) in respect thereof.

Now this Indenture witnesseth as follows:

1. That in consideration of Rs. ………. to be paid by the said MORTGAGEEs to the MORTGAGORs by their cheque No. ………… dated …………… on

……… Bank Ltd., at the time of registration before the Sub-Registrar, the said MORTGAGORs, as beneficial owners thereof, do hereby charge and assure unto the said MORTGAGEEs, all the rights and interests in the said plot of land, building and the machinery aforesaid and more particularly described in the Schedule hereunder to have and to hold the same unto and to the use of the said  MORTGAGEEs subject, however, to the terms of the Indenture of Lease dated ………… except that the amount of Rs. ………. still unpaid to the said Lessor shall be paid by the MORTGAGORs as and when it becomes payable under the terms of the said Indenture of Lease. Provided always that if the said MORTGAGOR shall pay to the said MORTGAGEEs on or before the expiry of two years from the date of these presents the mortgage money including interest, if any, as may be then accruing thereon, then and in such an event the MORTGAGEEs, will at any time thereafter upon the request and at the cost of the said MORTGAGORs release and retransfer the said property unto the said MORTGAGORs or as they shall direct.

2. That the MORTGAGORs hereby covenant with the MORTGAGEEs that they shall pay or cause to be paid to the said MORTGAGEEs by way of interest on the aforesaid principal amount of Rs. ……….. calculated at the rate of ………….. per cent. in the meantime.

3. That the MORTGAGORs further covenant with the MORTGAGEEs that notwithstanding the period of two years stipulated in cl. (1) hereof, the MORTGAGEEs shall be entitled to recover the mortgage money together with interest then accruing thereon, if any, after giving three months’ clear notice to MORTGAGORs.

4. That the Guarantors in consideration of the MORTGAGEEs having advanced the sum of Rs. …….. to the MORTGAGORs as aforesaid, do hereby agree and covenant with the MORTGAGEEs that if for any reason the MORTGAGORs wind up or suspend their business or are unable to pay this debt or the Lessor forfeits the lease of the plot of land aforesaid in default of the observance of the terms of the Indenture of lease aforesaid or any one or more of them or if there is a shortfall or deficiency in the sale proceeds of the mortgaged property, so that the mortgaged money is not fully recovered therefrom then and in such events, they will be jointly and severally liable for the payment of the mortgage money to the MORTGAGEEs or such part thereof as might the remain unrecovered at that time, which can in that case be recovered from their respective persons and properties.

5. Nothing herein contained shall in any way prejudice any of the remedies available to the MORTGAGEEs under the law. Nor shall the liability of the GUARANTORS be in any wise affected by any concession or indulgence shown by the MORTGAGEEs to the MORTGAGORs or by any extension of time granted by the former to the latter beyond that specified in cl. (3) hereof or otherwise.

6. And it is hereby declared that the expression MORTGAGORs and MORTGAGEEs and the GUARANTORS where the context allows, includes all persons deriving title under them respectively.

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

X Ltd. through Mr. ……………… pursuant to Board Resolution dated …………… in the presence of:

Signed, sealed and delivered by

Mr. …………..…… pursuant to Resolution

of Friendly Society Ltd. dated ……………… in the presence of:

Signed, sealed and delivered by

AB and CD Guarantors in the presence of:

Memo of Consideration

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