Mortgage of Land and Building to be erected thereon to Secure Present and Future Advances

Mortgage of Land and Building to be erected thereon to Secure Present and Future Advances

This deed of simple mortgage made this ………….. day of ………….. 2000 between AB son of ……………………………… residing at ……………………. hereinafter called the MORTGAGOR (which term shall include his heirs, successors, representatives and assigns) of the one part and CD Company Ltd. registered under the Companies Act 1956 having its registered office at ………….  hereinafter referred to as the CD Company, the MORTGAGEE (which term shall include its successors and assigns) of the other part.

WHEREAS AB is the sole owner and in possession in his own right of the open lands measuring …………  square feet affronting …………………….. Road in the city of …….. and numbered as Plots Nos. 2, 3 and 4 in the ………… Housing Scheme of the Improvement Trust free from all encumbrances fully mentioned and described in the Schedule hereto and hereinafter referred to as the said property.

And WHEREAS the said AB intends to erect a two-storeyed building

thereon having five shops on the ground floor and residential quarters on the first floor.

And WHEREAS the plans of the said building have been approved and sanctioned on the ………….  day of …………. 20…….  by the requisite Municipal Corporation.

And WHEREAS the said AB has approached the said CD Company for a loan or financial accommodation up to Rs. …………. (Rupees ………….. only) immediately against security of the said property and for such further or other sum or sums of money not exceeding Rs. ………….. (Rupees ………… only) in any event and against such security as aforesaid as and when required during the period of construction of the building of the said premises and whereas the said CD Company has agreed to do so on the assurance of the said AB for repayment of the said sum and all further sums to be advanced to the said AB with interest in all cases at the rate of…………. and in the manner hereinafter appearing.

Now this deed WITNESSES that in pursuance of the said agreement and in consideration of the sum of Rs. …………… (Rupees ………….) only now paid by the said CD to the said AB which said sum the said AB hereby admits and acknowledges as having received and also in consideration of the further sum or sums hereinafter to be advanced the said MORTGAGOR hereby covenants with the MORTGAGEE to pay to it within a period of ……….. years the sum of Rs. …………. with interest on the same at the rate of ………..%

per annum and also such sum or sums as may hereafter be advanced by the said CD to the said AB with interest thereon at the rate aforesaid calculated from the time or respective times of advancing the same and it is hereby declared and agreed that the said CD shall upon the requests of AB advance the further sum or sums of money not exceeding limit of Rs. ………..

(Rupees ………………. only) as aforesaid.

And this deed also WITNESSES that in further pursuance of the

said agreement and for the consideration aforesaid, the said AB as the beneficial owner hereby charges and assures by way of first mortgage

unto the said CD ALL THAT open land comprising Plots Nos. 2, 3 and 4 on

the ……………….. Road in the city of ……….………… (full description).

And ALSO ALL THAT the building consisting of five shops and residential quarters now in the course of construction upon the said three plots of land by the said AB with all fittings and fixtures to have and to hold the same with all the rights of a simple MORTGAGEE under the Transfer of Property Act. The charge hereunder created shall extend to the building as and when gradually constructed and when completed to the entirety of the same.

Provided always that if the said principal sum or sums of money hereinbefore covenanted to be paid with interest at the rate and within the period stipulated shall not be duly paid or if the MORTGAGOR fails and/or neglects to complete the building or delays in so doing, the MORTGAGEE may at its discretion refuse to make any further advance or advances and shall have the right to enforce the security hereunder created and to sell the property and/or such of the buildings which might then be complete and realise out of the proceeds of such sale all sums due to it together with principal and interest after paying the costs and expenses of such sale and if the mortgage debt be still unsatisfied the MORTGAGEE may enforce the loan against the person or other property of the MORTGAGOR and in case of there being a surplus, the same shall be refunded to the MORTGAGOR.

Provided however and it is further agreed by and between the

parties that if the MORTGAGOR commits any default in payment of the principal amount on the due date or any three instalments of interest whether they have been demanded or not it shall be lawful for the MORTGAGEE to institute a suit for sale and to have a Receiver appointed over the mortgaged property.

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

CD the MORTGAGEE in the presence of:

Memo of Consideration

Received of and from CD the MORTGAGEE the sum of Rs. ………………

(Rupees ..………..)  being the loan amount for the mortgage of the property mentioned above.

Witness:                                                                                   I say received

Signature

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