Mortgage of Shares in Company for Money borrowed to purchase the Shares by Shiva.

Mortgage of Shares in Company for Money
borrowed to purchase the Shares

THIS DEED OF MORTGAGE made on the . . . . . . . . day of . . . . . . BETWEEN A.B. etc. (hereinafter called ‘‘the Mortgagor’’) of the one part AND C.D. etc. (hereinafter called ‘‘the Mortgagee’’) of the other part.

1. WHEREAS the Mortgagor in order to purchase . . . . . . . . shares in the . . . . . . . . Co. Limited required the sum of Rs . . . . . . . . and the Mortgagee advanced to him a loan of Rs . . . . . . . .on the terms and conditions hereinafter appearing and on having the repayment thereof with interest secured by the mortgage of the shares when purchased by the Mortgagor.

2. The Mortgagor has purchased . . . . . . . . ordinary shares numbered . . . . . . . . to . . . . . . . . inclusive in . . . . . . . . Company Limited and has transferred them to the Mortgagee and delivered the same with transfer deed duly executed.

NOW THIS DEED WITNESSES and the parties hereto hereby agree as follows:

(1) That the Mortgagor will repay the aforesaid sum of Rs . . . . . . . . in . . . . . . monthly instalments of Rs . . . . . . each payable on the . . . . . . . day of each month beginning from the . . . . . . . . day of . . . . . . . next.

(2) That the Mortgagor will pay interest on the sum of Rs . . . . . . . or on so much thereof as shall remain unpaid at the rate of . . . . . . . . per cent per annum.

(3) That the whole amount of interest due hereunder on the date of each monthly instalment of the principal hereinbefore fixed shall be paid along with such instalment.

(4) That the Mortgagor will on demand pay all reasonable costs incidental to this mortgage.

(5) That the aforesaid transfer of the said shares has been made by the Mortgagor to the Mortgagee as a security for repayment of the said sum of Rs . . . . . . . . with interest and costs in the manner hereinbefore stated and on the express condition that upon payment of all sums due to the Mortgagee hereunder the Mortgagee will at the request and cost of the Mortgagor retransfer the said shares to the Mortgagor or as the Mortgagor shall direct.

(6) That whenever any money becomes payable hereunder and the same is not paid, it shall be lawful for the Mortgagee to sell and transfer all or any of the shares hereby mortgaged without the consent of the Mortgagor at the market price then current and to pay himself the amount due to him with proper costs and expenses of realization and all other proper and usual charges.

(7) That the Mortgagor will duly pay all sums which may during the continuance of this security become payable by reason of any call in respect of the said shares and any money which the Mortgagee shall not-withstanding this agreement be called upon to pay and shall pay in respect of any such call shall be repaid by the Mortgagor with interest at the rate aforesaid on demand and until so repaid shall be a charge on the shares hereby mortgaged.