Usufructuary Mortgage—Profits Liquidating Principal and Interest by Shiva.

Usufructuary Mortgage—Profits Liquidating
Principal and Interest

THIS DEED OF MORTGAGE made on the . . . . . . . . . . . day of . . . . . . . . . , 20 . . . . BETWEEN A.B. etc. (hereinafter called ‘‘the Mortgagor’’) of the one part AND C.D. etc. (hereinafter called ‘‘the Mortgagee’’) of the other part.

WITNESSES as follows:

I. In consideration of the sum of Rs . . . . . . . . . . . borrowed by the Mortgagor from the Mortgagee (the receipt of which sum the Mortgagor hereby acknowledges) or, in consideration of the sum of Rs . . . . . . . . . . due from the Mortgagor the Mortgagor hereby transfers by way of usufructuary mortgage to the Mortgagee ALL that property described in the Schedule (or the First Schedule) hereto to the intent that the said premises shall remain in possession of the Mortgagee as security for the payment of the said sum of Rs . . . . . . . . . . .and interest hereinafter mentioned.

II. The Mortgagor hereby covenants with the Mortgagee as follows:

(1) (i) The said property hereby mortgaged is free from encumbrances (except the encumbrances mentioned in the Second Schedule hereto);

(ii) All the rents and profits of the mortgaged property collected by the Mortgagee will after paying the government revenue and cesses and other taxes assessed, imposed or charged on the said property and defraying the cost of collection and management and the costs, if any, incurred in any suit relating to the said property in the civil or revenue court, be appropriated by the Mortgagee in lieu of interest on the said sum of Rs . . . . . . . . . . .;

(2) Interest at the rate of . . . . . . . . . . . per cent per annum shall be payable from the date hereof on the said sum of Rs . . . . . . . . . . . or on so much thereof as shall for the time being remain unpaid on the . . . . . . . . . . . day of . . . . . . . . . . . and the . . . . . . . . . . . day of . . . . . . . . . . . in each year, and any interest not paid by the Mortgagor on due date and not realized from the profits of the mortgaged property in the manner herein provided will be added to the principal and shall bear interest at the rate and payable on the half-yearly dates aforesaid.

III. The Mortgagee hereby covenants with the Mortgagor as follows:

(1) He will on entering into possession of the mortgaged property collect the rents and other moneys accruing due and payable upon the said property with all care and diligence and out of the rents and moneys thus collected will pay the government revenue, cesses and taxes assessed, imposed and charged on the mortgaged property and defray the cost of collection and management (which shall in no case exceed . . . . . . . . . . per cent of the total rents to be collected) and the cost if any incurred in any suit relating to the said premises in a civil or revenue court and will apply the balance first in reduction or payment of the interest due hereunder and then in reduction or payment of the principal money hereby secured.

(2) The Mortgagor may at any time after five years from the date hereof pay to the Mortgagee any sum of money not less than Rs . . . . . . . . . . . on account of the moneys hereby secured and all sums so paid shall be applied first in reduction of the interest then due hereunder and then in reduction or payment of the principal.

(3) On the principal moneys and interest hereby secured being paid off in the manner hereinbefore mentioned or otherwise, the Mortgagee will retransfer the mortgaged property to the Mortgagor and will put him in possession.

IV. That the parties shall have all such rights and be subject to all such liabilities of a Mortgagor and Mortgagee provided in the Transfer of Property Act, 1882 as may be applicable to them.

V. It is hereby agreed that wherever such an interpretation would be requisite in order to give the fullest scope and effect legally possible to any covenant or contract herein contained, the expressions ‘‘the Mortgagor’’ and ‘‘the Mortgagee’’ hereinbefore used include their respective heirs, executors , administrators and assigns.

IN WITNESS WHEREOF the parties hereto have hereunder put their signatures (or, the Mortgagor has signed this deed) the day and year first abovewritten (or, on the dates respectively mentioned against their signatures).