Charge froms by Gupta

V7_CH60

Ch. 60] CHARGE?FORMS 873
vendee, the document was held to be a  ?mortgage deed? and not a  ?charge?,
since the property over which the charge was created was specified in the
deed, and hence the document is chargeable under Art. 44(a) of Sch. I of
the Stamp Act?Board of Revenue U.P . v Padum Bahadur Singh AIR 1957
All 391 (SB).
A deed of Further Charge is liable to be stamped under Art. 32, Sch.
I of the Stamp Act.
FORMS
1
General Charge over all Assets, Properties, Book Debts and
Movables and Immovables as Security for the Debts
THIS AGREEMENT is made on this??????. day of?????..,
20?..  BETWEEN????????. etc. (hereinafter referred to as the
?Debtor?)  AND?????? (hereinafter referred to as the  ?Creditor?)
AND??????. (hereinafter referred to as the  ?Guarantor?) and the terms
?Debtor?, ?Creditor? and the ?Guarantor?, unless excluded by or repugnant
to the context, shall include each of their respective heirs, successors,
administrators, legal representatives and assigns.
WHEREAS the Debtor is indebted to the Creditor in respect of various
amounts;
AND WHEREAS the Debtor agrees that it is in the best interests of the
Debtor to provide security to the Creditor in respect of the amounts owing
by the Debtor to the Creditor;
AND WHEREAS  the Debtor and the Creditor agree that such security
should be granted to the Creditor in a comprehensive and complete form,
charged against all of the business and assets of the Debtor;
AND WHEREAS the Guarantor, if any, has entered into this agreement in
order to induce the Creditor to continue to deal with the Debtor;
NOW THEREFORE, in consideration of the premises and the covenants
contained herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereby agree
as follows:
1. The parties agree that each of the above recitals is true in substance
and in fact and shall form part of this Agreement.
2. The Debtor hereby grants to the Creditor, by way of mortgage, charge,
assignment, and transfer, a security interest (hereinafter referred to as the874 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
?Security Interest?) in the undertaking of the Debtor and in all goods
(including all parts, accessories, special tools, additions and accessions
thereto), chattel paper, documents of title (whether negotiable or not),
instruments, intangibles and securities now owned or hereafter owned or
acquired by or on behalf of the Debtor (including such and same as may
be returned to or repossessed by the Debtor) and in all proceeds and
renewals thereof, accessions thereto and substitutions therefor (hereinafter
collectively called the  ?Collateral?) including, without limitation, all of the
following now owned or hereafter owned or acquired by or on behalf of the
Debtor;
(a) All inventory of whatever kind and wherever situate (hereinafter
called ?Inventory?);
(b) All equipment (other than inventory) of whatever kind and wherever
situate, including, without limitation, all machinery, tools, appara-
tus, plant, furniture, fixtures and vehicles of whatsoever nature or
kind;
(c) All book accounts, and book debts and generally all accounts,
debts, dues, claims, chooses in action and demands of every
nature and kind howsoever arising or secured including letters of
credit and advices of credit, which are now due, owing or accruing
or growing due to or owned by or which may hereafter become due,
owing or accruing or growing due or owned by the Debtor
(hereinafter called the ?Debt?);
(d) All deeds, documents, writings, papers, books of account and
other books relating to or being records of debts, chattel paper or
documents of title or by which such are or may hereafter be
secured, evidenced, acknowledged or made payable;
(e) All contractual rights and insurance claims and all goodwill,
patents, trade marks, copyrights, and other industrial property;
(f) All monies other than trust monies lawfully belonging to others;
(g) All property described in any schedule now or hereafter annexed
hereto.
3. The security interest granted by the Debtor to the Creditor shall not
extend to or apply to, and the collateral shall not include, the last day of any
term of lease or agreement for lease.
4. The security interest granted by the Debtor to the Creditor hereby
secures payment and satisfaction of any and all obligations, indebtedness
and liability of the Debtor to the Creditor, including interest thereon and
costs of collection thereof, present or future, direct or indirect, absolute or
contingent, matured or not, extended or renewed, wheresoever and
howsoever incurred and any ultimate unpaid balance thereof and whether
the same is from time to time reduced and thereafter increased or entirelyCh. 60] CHARGE?FORMS 875
extinguished and thereafter incurred again and whether the Debtor be
bound alone or with another or with others and whether as principal or
surety (hereinafter collectively called the ?indebtedness?).
5. The Creditor, in its sole discretion, may declare all or any part of the
indebtedness which is not by its term payable on demand to be immediately
due and payable, without demand or notice of any kind, in the event of a
default as defined below, or if the Creditor believes in good faith that the
prospect of payment of all or any part of the indebtedness or performance
of the Debtor?s obligations under this agreement or any other agreement
now or hereafter in effect between the Debtor and the Creditor is impaired.
The provisions of this clause shall not affect the right of the Creditor with
respect to indebtedness which may now or hereafter be payable on
demand.
6. The happening of any of the following events or the fulfilling of any
of the following events shall constitute default hereunder (hereinafter called
?Default?):
(a) failure to pay when due, whether by acceleration or otherwise, any
principal or interest forming part of the indebtedness or any failure
of the Debtor to observe or perform any obligation, covenant, term,
provision or condition contained in this security agreement or any
other agreement between the Debtor and the Creditor;
(b) the bankruptcy or insolvency of the Debtor including the filing
against the Debtor of a petition in bankruptcy, the making of an
assignment for the benefit of any Creditors of the Debtor, the
appointment of a receiver or trustee for the Debtor or for any assets
of the Debtor or the institution by or against the Debtor of any other
type of insolvency proceeding under the Bankruptcy Act or
otherwise;
(c) the institution by or against the Debtor of any formal or informal
proceeding for the dissolution or liquidation or settlement or claim
against or winding up affairs of the Debtor;
(d) any encumbrance affecting collateral becoming enforceable against
the collateral;
(e) if the Debtor ceases or threatens to cease to carry on business
or makes or agrees to make a bulk sale of assets or commits or
threatens to commit an act of bankruptcy;
(f) if any execution or other process of any court becomes enforceable
against the Debtor or if a distress or any other process is levied
against the assets of the Debtor or any part thereof.
7. (1) Upon default the Creditor may appoint by instrument in writing any
person to be a receiver and manager of the collateral and may remove any
receiver so appointed and appoint another in his stead. Any such receiver876 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
shall, so far as responsibility for his acts is concerned, be deemed to be
the agent of the Debtor and not of the Creditor and the Creditor shall not
in any way be responsible for any misconduct, negligence or nonfeasance
on the part of any such receiver, his servants, agents or employees.
7. (2) Subject to the provisions of the instrument appointing him any such
Receiver shall have the power to take possession of the collateral, to
preserve the collateral of its value, to carry on or concur in the carrying on
of all or any part of the business of the Debtor and to sell, lease or otherwise
dispose of or concur in the selling, leasing or other disposition of the
collateral. To facilitate the foregoing powers any such Receiver may, to the
exclusion of all others, including the Debtor, enter upon, use and occupy
all premises owned or occupied by the Debtor wherein the collateral may
be situate, maintain collateral upon such premises, borrow money on a
secured or unsecured basis and use collateral directly in carrying on the
Debtor?s business or as security for loans or advances to enable him to carry
on the Debtor?s business or otherwise as such Receiver shall, in his sole
discretion, determine.
7. (3) Except as may be otherwise directed by the Creditor, all monies
received from time to time by such Receiver in carrying out his appointment
shall be received in trust for and paid over to the Creditor.  Every such
receiver may, in the discretion of the Creditor, be vested with all or any of
the rights and powers of the Creditor.
8. Upon default the Creditor may, either directly or through its agents or
nominees, exercise all of the powers and rights given to a Receiver by virtue
of the foregoing section.
9.  The Creditor may take possession of, collect, demand, sue on,
enforce, recover and receive collateral and give valid and binding receipts
and discharges therefor and with respect thereof and upon default, the
Creditor may sell, lease or otherwise dispose of collateral in such manner,
at such time or times and place or places and for such consideration and
upon such terms and conditions as to the Creditor may seem reasonable.
10. In the event of any provision of this security agreement, as amended
from time to time, shall be deemed invalid or void, in whole or in part, by
any court of competent jurisdiction, the remaining terms and provisions of
this security agreement shall remain in full force and effect.
11. No delay or omission by the Creditor in exercising any right or remedy
hereunder or with respect to any indebtedness shall operate as a waiver
thereof or of any other right or remedy, and no single or partial exercise
thereof shall preclude any other or further exercise thereof or the exercise
of any other right or remedy.  Further, the Creditor may remedy any default
of the Debtor hereunder or with respect to any indebtedness in any
reasonable manner without waiving any other prior or subsequent default
of the Debtor.  All rights and remedies of the Creditor granted or recognizedCh. 60] CHARGE?FORMS 877
herein are cumulative and may be exercised any time and from time to time
independently or in combination.
12.  This security agreement and the security afforded hereby is in
addition to and not in substitution for any other security now or hereafter
held by the Creditor and is intended to be, a continuing security agreement
and shall remain in full force and effect until the Creditor shall in writing
discharge the security agreement.
13. This agreement shall enure to the benefit of and be binding upon
the parties hereto and their respective heirs, executors, administrators,
successors and assigns.
14. This security agreement and the transaction as evidenced hereby
shall be governed by and construed in accordance with the laws of India.
IN WITNESS WHEREOF the parties hereto have executed these presents
on the day month and the year first abovewritten.
SIGNED SEALED AND DELIVERED by
the Parties at??????? In the
presence of:
[Signatures of the parties]
WITNESSES :
1.
2.
2
Legal charge of leasehold by a builder to secure present sum
and further advances to enable completion of buildings:
Covenant by lender to make further advances
THIS LEGAL CHARGE is made the????? day of..????.. BETWEEN
(builder) of (address, etc.) (hereinafter called the Borrower) of the ONE PART
AND (mortgagee) of (address, etc.) (hereinafter called the Lender) of the
OTHER PART.
WHEREAS:
(1) By a lease (hereinafter called the lease) dated the…………. day
of……….  and made between (lessor) of the One Part and the borrower of
the Other Part the said (lessor) demised to the borrower the land described
in the Schedule hereto for the term of…………years from the…………. day
of…………… at the yearly rent of Rs………. (or as the case may be) and subject
to the covenants binding on the lessee and the conditions contained in the878 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
lease and in particular to a covenant by the borrower to erect upon the said
land (by the??……day of????) certain specified dwelling-houses and
buildings (or as the case may be);
(2) In accordance with the aforesaid covenant in that behalf the borrower
has already erected divers dwelling-houses and buildings on the said land;
(3) For the purpose of paying for the dwelling-houses and buildings
already erected and to enable him to complete the erection of the whole
of the dwelling-houses and buildings specified in the last-mentioned
covenant the borrower has requested the lender to make a present advance
to him of the sum Rs??…. and also from time to time to advance to him
further sums not exceeding in the whole (exclusive of the said sum of
Rs…………) the sum of Rs……….. which the lender has agreed to do upon
the repayment of all such advances with interest being secured in manner
hereinafter appearing.
NOW THIS DEED WITNESSETH as follows:
1. In consideration of the sum of Rs……… now paid by the lender to the
borrower (the receipt whereof the borrower hereby acknowledges) and of
the covenant by the lender hereinafter contained the borrower hereby
covenants with the lender that he will on the……………. day of…………….next
pay to the lender the sum of Rs………… with interest thereon from the date
hereof at the rate of………….. per cent per annum and also that he will on
such one of the days hereinafter appointed for the payment of interest as
shall happen next after any further advance shall be made to him by the
lender repay to the lender such further advance with interest at the rate
aforesaid from the date of the making thereof and that if any principal money
shall remain unpaid after the day hereinbefore stipulated for payment
thereof the borrower will thereafter pay to the lender (as well after as before
any judgment) interest at the rate aforesaid by equal half-yearly (or
quarterly) payments on the (state days of payment) in each year on so much
of such principal money as shall for the time being remain owing on this
security.
2. For the consideration aforesaid the borrower as beneficial owner
hereby charges by way of legal mortgage all the land comprised in and
demised by the lease and all dwelling-houses and buildings now or
hereafter to be erected thereon (hereinafter called the buildings) with the
payment to the lender of the principal money interest and other money
hereby covenanted to be paid.
3. If the borrower shall on the………… day of………… pay to the lender the
said sum of Rs……… and shall likewise pay to the lender on the days
appointed for the payment thereof respectively all further sums so ad-
vanced to the borrower as aforesaid with interest in each case at the rate
aforesaid in accordance with the foregoing covenant in that behalf theCh. 60] CHARGE?FORMS 879
lender will at the request and cost of the borrower duly discharge this
security.
4. The borrower hereby covenants with the lender as follows:
(1) That the borrower will on demand produce to the lender the policy
or policies of any insurance effected in accordance with the covenant in that
behalf contained in the lease and the receipt for each premium paid in
respect thereof.
5. The lender hereby covenants with the borrower that if and, so long
as the borrower shall pay all interest payable hereunder within……..days
from the time hereby appointed for payment thereof and shall perform all
his obligations under the covenants on his behalf contained herein or
implied by statute other than in regard to the payment of principal and
interest (or that until the statutory power of sale becomes exercisable) the
lender will from time to time advance to the borrower by monthly instalments
such further sum not borrower may require for the purpose of completing
the buildings specified in the lease one such instalment to be advanced on
the first day of each month beginning with the first day of……….next and to
be for an amount not exceeding (two-thirds) of the cost in labour and
materials of the work executed by the borrower during the month immedi-
ately preceding according to the value thereof computed by the surveyor
in regard to each instalment to be forthwith after the computation paid by
the borrower retained by the lender out of such instalment.
6. Provided further that:
(1) If the statutory power of sale become exercisable (or if the borrower
shall fail to complete the aforesaid dwelling-houses and other buildings in
accordance with the said covenant in that behalf contained in the lease)
the lender may at any time thereafter but not so as to render him liable as
mortgagee in possession enter the said land and complete such of the said
dwelling-houses and buildings as shall not have been completed and may
for that purpose use any materials and plant belonging to the borrower
which may be upon the said land and all expenses incurred by the lender
in exercise of the power conferred by this clause shall be repaid by the
borrower on demand with interest thereon at the rate of?? per cent per
annum and if not so repaid shall be deemed for all purposes to be added
to the principal monies hereby secured and shall bear interest and secured
and payable accordingly;
(2) If the borrower shall pay the interest on the said sum of Rs?..?..(and
any further principal money hereby secured) at the (reduced) rate of………
per cent per annum with………days after the several days on which the same
shall fall due (as to which time shall be of the essence of the contract) and
shall perform and observe all the covenants and stipulations herein
contained and on his part to be performed and observed other than the
covenant for repayment of the principal sum of Rs……….. (and any further880 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
principal money for the time being hereby secured) then and in such case
the lender will not take any steps whatsoever for enforcing payment of the
said sum of Rs………. (and any further principal money for the time being
hereby secured) or any part thereof before the…………….. day of…………..
but for the purpose of the exercise of the statutory powers the principal sum
(and any further principal money for the time being hereby secured) shall
be deemed to be due on the…………….. day of…………… (the original day
fixed by the covenant for payment) or the day on which the same is (or,
where further advances are to be made, are respectively) hereinbefore
covenanted to be paid).
(3) The statutory power of sale shall be exercisable in any of the following
events:
(a) if default is made in payment of the principal monies for the time
being owing on the security of this mortgage for (one) month after
notice requiring payment thereof shall have been served on the
borrower;
(b) if some interest due hereunder is unpaid for………….. days;
(c) if the borrower fails to observe any of his (or its) obligations
hereunder other than in regard to the payment of the said principal
monies or interest thereon;
(d) if any execution is issued against him or if any distress is levied
on the materials of the borrower on the said property (or, in the case
of a company, on the happening of any circumstance whereby the
borrower could be wound up under the provisions of section 433
of the Companies Act, 1956);
(e) if the borrower dies (or passes a resolution for winding up);
(f) if the borrower makes default in payment of any negotiable
instrument which he (or it) is liable to pay (or execute any bill of
sale over any of his materials and effects).
THE SCHEDULE ABOVE REFERRED TO:
(Description of mortgaged property)
IN WITNESS WHEREOF, etc.
[Signatures of the parties]
3
Legal charge by trustees of an Unincorporated Club
THIS LEGAL CHARGE is made the?????..  day of????. BETWEEN
(trustees of the club) of (address, etc.) (hereinafter called the Borrowers)Ch. 60] CHARGE?FORMS 881
of the  ONE PART AND (lender) of (address, etc.) (hereinafter called the
Lender) of the OTHER PART.
WHEREAS:
(1) By a conveyance dated the????. day of?? and made between
(vendor to the club) of the One Part and the then trustees of the??????
Club of the Other Part the property hereinafter described and expressed
to be hereby charged was conveyed to the then trustees for a legal estate
as trustees for the said club to be sold leased mortgaged or otherwise dealt
with by the trustees as the committee of the club should from time to time
direct;
(2) The borrowers are the present trustees of the said club having been
appointed as such trustees by a resolution passed in accordance with the
rules of the said club at a meeting held on the…………. day of………… and
by a conveyance dated the…………… day of………….. and made between
(then trustees) of the One Part and the borrowers of the Other Part the said
property was vested in the borrowers for a legal estate.
(3) The lender has agreed to lend to the borrowers the sum of Rs???
upon having the repayment thereof with interest secured in manner
hereinafter appearing;
(4) The borrowers have complied with all the formalities which by the
rules of the said club are requisite to enable them lawfully to create this
mortgage and the committee of the said club to whom the engrossment of
this deed was produced by resolution dated the………….. day of………….
directed the trustees to execute such engrossment as appears by the
signature in the margin hereof of……………….  the chairman of such commit-
tee.
NOW THIS DEED WITNESSETH as follows:
1. In consideration of the sum of Rs??.. paid by the lender to the
borrowers as such trustees as aforesaid (the receipt whereof the borrowers
hereby acknowledge) the borrowers as trustees hereby charge by way of
legal mortgage all that (parcels) with the payment to the lender on
the?????. day of???… of the principal sum of Rs????. (here-
inafter called the principal money) with interest thereon at the rate of???
per cent per annum from the date hereof and also if the principal money
shall not be so paid with the payment to the lender (as well after as before
any judgment) of interest thereon or on such part thereof as shall from time
to time remain owing at the rate aforesaid by equal quarterly (half-yearly)
payments on the (state days of payment) in each year.
2. If on the said………… day of………… the principal money shall be paid
to the lender with interest as aforesaid the lender shall at the request and
cost of the borrowers duly discharge this security.
G : CDD (Vol. 7) ? 56882 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
3. The borrowers shall not be personally liable for the payment of the
principal money or the interest thereon.
(Other usual provisions that the mortgagee may require.)
IN WITNESS etc.
[Signatures of the borrowers]
4
Legal charge or Mortgage by a Limited Company :
Covenants and provisos in Schedules: Variation
where a prior equitable mortgagee joins to
postpone his security
THIS LEGAL CHARGE (or MORTGAGE) is made the.???.. day of…………
BETWEEN the…………. Limited Company (having its registered office at
(address) (hereinafter called the Company) of the ONE (or  FIRST) PART
(equitable mortgagee) of (address, etc.) of the SECOND PART and (mort-
gagee) of (address, etc.) (hereinafter called the Lender) of the OTHER (or
THIRD) PART.
WHEREAS:
(1) The company is the absolute in possession in respect of the
property described in the First Schedule hereto (subject to the
equitable mortgage hereinafter mentioned but otherwise) free
from incumbrances;
(2) The title deeds relating to the said property together with the title
deeds relating to other property belonging to the company have
been deposited by the company with the said (equitable mort-
gagee) as security for the repayment of the sum of Rs??.., with
interest thereon;
(3) The lender has agreed to advance to the company the sum of
Rs……… upon having the repayment thereof with interest secured
in manner hereinafter appearing (or by a mortgage of the property
described in the First Schedule hereto such mortgage to have
priority over the above-mentioned equitable mortgage so far as
regards such last-mentioned property);
(4) The said (equitable mortgagee) has at the request of the company
agreed to concur in this deed in manner hereinafter appearing for
the purpose of postponing to the extent above-mentioned his said
security to the security hereby constituted.Ch. 60] CHARGE?FORMS 883
NOW THIS DEED WITNESSETH as follows:
1. In consideration of the sum of Rs??…paid by the lender to the
company the receipt whereof the company and the said (equitable
mortgagee) hereby (respectively) acknowledge(s) the company hereby
covenants with the lender that the company will on the……….day of……….
next pay to the lender the sum of Rs……. (hereinafter called the principal
money) with interest thereon as from the date hereof at the rate of………..
per cent per annum and if the principal money shall not be repaid on that
date then so long as any part thereof shall remain owing will pay to the
lender interest at the rate aforesaid (as well after as before any judgment)
by equal quarterly payments on the (state days of payment) in each year
on the principal money hereby advanced or such part thereof as shall from
time to time remain owing.
2. For the consideration aforesaid the company as beneficial owner
hereby charges by way of legal mortgage all the property specified in the
First Schedule hereto with the payment in accordance with the covenants
herein contained of the principal money interest and other money hereby
covenanted to be paid by the company (or demises to the lender all the
property specified in the First Schedule hereto).  TO HOLD the same unto
the lender for the term of…….. years from the date hereof without impeach-
ment of waste subject to the proviso for cessor hereinafter contained).
3. If the company shall on the…………. day of………… next pay the principal
money with interest thereon from the date hereof in accordance with the
company?s foregoing covenant in that behalf the lender will at the request
and cost of the company duly discharge this security (or if the company shall
on the??? day of??? next pay the principal money with interest
thereon from the date hereof at the rate aforesaid the term hereby created
shall cease).
4.  The company hereby covenants with the lender to perform and
observe the provisions set forth in the second schedule hereto.
5. The security constituted by the above-mentioned deposit of title deeds
shall so far as regards the property described in the first schedule hereto
be postponed to the security constituted by this deed but subject to such
postponement shall as between the company and the said (equitable
mortgagee) remain in full force and effect.
6. The provisions set forth in the third schedule hereto shall be binding
on the lender and the company and their assigns.
7. The said (equitable mortgagee) hereby acknowledges the right of the
lender to the production and delivery of copies of the documents specified
in the fourth schedule hereto and hereby agrees that in case the lender shall
in exercise of the statutory power in that behalf sell any of the property884 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
hereby mortgaged he will at the request and cost of the lender hand over
to the purchaser or purchasers such of the last-mentioned documents as
relate exclusively to the property so sold.
8. In this deed where the context admits the expressions  ?the company?
and ?the lender? include the persons deriving title under them.
THE FIRST SCHEDULE REFERRED TO:
(Description of mortgaged property)
THE SECOND SCHEDULE ABOVE REFERRED TO:
IN WITNESS etc.
5
Legal Charge by a Board of Finance Company
THIS LEGAL CHARGE  is made the????.. day of???? BETWEEN
the????.. Board of Finance having its registered office at (address)
(hereinafter called the Board) of the ONE PART AND (mortgagee) of (address,
etc.) (hereinafter called the Lender) of the OTHER PART.
WHEREAS:
(1) The board is the absolute owner in respect of the property
hereinafter described free from incumbrances;
(2) By a request in writing dated…………. and made by………..
the????.. in which the said property is situate and??? the
administrative trustees of the said property the board has been
requested to mortgage the said property in manner hereinafter
appearing;
(3) The lender has agreed to lend to the board the sum of Rs??…
upon the terms hereinafter contained.
NOW THIS DEED WITNESSETH as follows:
1. In consideration of the sum of Rs??? paid by the lender to the board
(the receipt whereof the board hereby acknowledges) the board as trustee
hereby charges by way of legal mortgage all the property specified in the
schedule hereto with the payment to the lender of the said sum of Rs………..
(hereinafter called the principal money) and interest in accordance with the
provisions hereinafter contained.
2. Provided that on payment on the??…. day of??…… by the board
to the lender of the principal money with interest thereon in the meantime
at the rate of……….. per cent per annum the lender will duly discharge this
security.
3. So long as any principal money shall remain owing on this securityCh. 60] CHARGE?FORMS 885
after the said……………. day of…………. the said property shall stand charged
with the payment to the lender of interest on the principal money or such
part thereof as shall from time to time remain owing at the rate aforesaid
to be paid by equal quarterly (or half-yearly) payments on (state day of
payment) in each year.
4. (Add other necessary terms as agreed with the lender).
IN WITNESS etc.
[Common Seal of the Finance Company with
Signatures of two authorised directors]
6
Legal charge or mortgage of freehold building estate, with
provisions for releasing parts of it from time to time on
payment of part of principal: Debt not to be
called in for certain time
THIS LEGAL CHARGE (MORTGAGE) is made the???…..  day of????….
BETWEEN (mortgagor) of (address, etc.) (hereinafter called the Borrower)
and (mortgagee) of (address, etc.) (hereinafter called the Lender) of the
OTHER PART.
WHEREAS:
(1) The borrower is the absolute owner free from incumbrances of the
property specified in the schedule hereto and is about to lay out
the same as a building estate and to erect houses and other
buildings thereon;
(2) The lender has agreed to advance to the borrower the sum of
Rs?……. upon having the repayment thereof with interest secured
upon the terms and in the manner hereinafter appearing;
NOW THIS DEED WITNESSETH as follows:
1. In consideration of the sum of Rs………. this day paid by the lender
to the borrower (the receipt whereof the borrower hereby acknowledges)
the borrower hereby covenants with the lender that the borrower will on
the………… day of………… next pay to the lender the said sum of Rs………..
with interest thereon from the date hereof at the rate of………. per cent per
annum and if the said sum (hereinafter called the principal money) shall
not be paid on that day then so long as any part thereof shall remain owing
will (as well after as before any judgment) pay to the lender interest at the
rate aforesaid on the principal money or such part thereof as shall from time
to time remain owing by equal quarterly (or half-yearly) payments on the
(state days of payment) in each year.886 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
2. For the consideration aforesaid the borrower as beneficial owner
hereby charges by way of legal mortgage all the property specified in the
schedule hereto with the payment in accordance with the covenants herein
contained of the principal money interest and other money hereby covenanted
to be paid by the borrower (or, if the mortgage is by demise demises to the
lender all the property specified in the schedule hereto TO HOLD the same
unto the lender for the term of…………. years from the date hereof without
impeachment of waste) subject to the proviso for redemption hereinafter
contained.
3.  If the borrower shall on the………… day of…………. next pay the principal
money with interest thereon from the date hereof in accordance with his
foregoing covenant in that behalf the lender will at the request and cost of
the borrower duly discharge this security (or, if the mortgage is by demise
the term hereby created shall cease).
4. At any time during the continuance of the security hereby constituted
and before the power of sale vested in the lender shall have become
exercisable the borrower may sell the property hereby mortgaged or any
part thereof at such price as he shall think fit not being less than the price
which shall have been approved in writing by the lender and in case of any
such sale the lender will upon payment to him of the balance of the purchase
money after payment thereout of the costs of such sale to an amount not
exceeding……….. per cent of the gross purchase money convey or concur
in conveying to the purchaser the property sold and any purchase money
so paid to the lender shall be applied by him in the same manner as if it
had arisen from the exercise of the power of sale vested in him.
5. If the borrower shall pay each instalment of interest on the principal
money within (fourteen) days after the day on which the same shall become
due under the covenant in that behalf hereinbefore contained as to which
time shall be of the essence of the contract and shall comply with all his
obligations hereunder including his obligations in regard to payment over
the purchase money on any sale and of fines in respect of any lease but
not including his obligations in regard to the payment of principal and
interest the lender will not during the period of???. years from the date
hereof take any steps to enforce the payment of the principal money or any
part thereof.
6. The borrower shall not be entitled to redeem this security during the
period of……….. years from the date hereof except pursuant to the
provisions for sale hereinbefore contained.
7. The power of leasing vested by statute in the borrower shall not be
exercisable by him without the previous consent in writing of the lender but
shall be deemed to include power to grant leases for any term and for any
purpose with or without payment of a fine provided that any such fine shall
be paid to the lender and shall be applied by him in the same manner asCh. 60] CHARGE?FORMS 887
if it were money which had arisen from the exercise of the power of sale
vested in him and the borrower shall not otherwise than in accordance with
this clause grant or agree to grant any lease whatsoever of the mortgaged
premises or any part thereof.
8. In this deed where the context admits the expressions ?the borrower?
and ?the lender? include the persons deriving title under them.
THE SCHEDULE ABOVE REFERRED TO:
(Description of mortgaged property)
IN WITNESS etc.
[Signature of borrower]
7
Deed of further charge against an existing security to be
discharged only upon repayment of the entire amount
of loan with interest to be accrued thereon
THIS INDENTURE made etc. BETWEEN A. etc. (Mortgagor) of the One Part
AND B.  etc. (Mortgagee) of the Other Part.
WHEREAS by an Indenture of Mortgage dated……….. and made between
the Mortgagor of the One Part and the Mortgagee of the Other Part the
hereditaments in the Schedule thereunder and hereunder mentioned and
described were granted and conveyed unto the Mortgagee subject to a
proviso therein contained for redemption thereof upon payment by the
Mortgagor to the Mortgagee of the sum of Rs………… with interest thereon
at the rate of………. per cent per annum on………….. then next.
AND WHEREAS the said sum of Rs………. is still due and owing to the
Mortgagee upon the security of the said Indenture of Mortgage but all
interest for the same has been paid up to the date of these presents.
AND WHEREAS the Mortgagor being in further need of money has
requested the Mortgagee to lend and advance to him the further sum of
Rs???? which the Mortgagee has agreed to do upon having repayment
thereof with interest and secured in manner hereinafter expressed.
NOW  THIS INDENTURE  WITNESSETH that in pursuance of the said
agreement and in consideration of the sum of Rs…………. to the Mortgagor
paid by the Mortgagee on or before the execution of these presents (receipt
clause) he the Mortgagor hereby covenants with the Mortgagee that he
shall and will on……… pay to the Mortgagee the said sum of Rs…………. with
interest thereon at the rate of…………. per cent per annum by equal monthly
instalments on………… of each and every month until the same shall be fully
paid.888 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
AND IT IS HEREBY AGREED AND DECLARED  that the hereditaments
comprised in and granted and conveyed by the said Indenture of Mortgage
and mentioned and described in the Schedule hereunder written shall
stand charged with and remain a security for the payment to the Mortgagee
as well of the said sum of Rs………. and interest for the same pursuant to
the covenant for payment contained in the said Indenture of Mortgage as
of the within-mentioned sum of Rs……….. and interest for the same and shall
not be redeemed or redeemable until both the said principal sums of
Rs……….. and Rs……….. and interest thereof respectively shall be fully paid
and satisfied AND that all the covenants, powers and provisions contained
in the said Indenture of Mortgage for securing and obtaining payment to
the Mortgagee of the said sum of Rs……….. and interest thereof shall extend
to the said (further) sum of Rs………. and interest thereof and be available
to the Mortgagee for securing and obtaining payment of the same.
THE SCHEDULE ABOVE REFERRED TO:
(Describe the property)
IN WITNESS etc.
8
Deed of further equitable charge upon the same securities
for repayment of additional advance, where original
advance is already secured by the memorandum
of deposit of title deeds
MEMORANDUM as follows:
WHEREAS:
(1)  The documents to title to the freehold (or Leasehold) property
specified in the schedule hereto were deposited by (Borrower) of (address,
etc.) (hereinafter called the Borrower) with (Lender) of (address, etc.)
(hereinafter called the Lender) to the intent that the said property should
be equitably charged with repayment to the lender of the sum of Rs……….
advanced by him to the borrower with interest for the same at the rate
of……….. per cent per annum payable by equal quarterly payments on the
(state days of payment) in every year as appears by a memorandum dated
the……….. day of……….. under the hand of the borrower;
(2) The lender has agreed to advance to the borrower a further sum of
Rs…….. upon having the repayment thereof with interest thereon secured
in the manner hereinafter appearing.
1. In consideration of the additional advance of Rs…….. now made by
the lender to the borrower (the making of which the borrower herebyCh. 60] CHARGE?FORMS 889
acknowledges) the borrower hereby declares that the said property shall
be charged with repayment to the lender of the said further sum of Rs……….
in addition to the said sum of Rs…….. to the intent that the said property
shall henceforth be charged with the repayment of the total sum of Rs………
advanced by the lender to the borrower with interest henceforth upon such
total sum of Rs…….. at the rate of??? per cent per annum payable by
equal quarterly payments on the (state days of payment) in every year.
2. The borrower undertakes to execute at his own cost when called upon
a proper legal charge or mortgage of the said property to the lender to
secure all monies for the time being owing to the lender on this security
with interest at the aforesaid rate such charge or mortgage to be in such
form and to contain such covenants and conditions as the lender shall
reasonably require.
THE SCHEDULE ABOVE REFERRED TO:
(Description of documents)
Dated the………………… day of………
[Signature of Borrower]
9
Charge on specific credit balances as security for
liabilities of third party
To?????? Bank Limited
In consideration of your granting (or continuing to grant) banking facilities
to?????.. of (address, etc.) I,…………….. of (address, etc.) by of
continuing security hereby charge the monies standing to the credit of my
deposit account with you in respect of all liabilities to you whether absolute
or contingent at any time outstanding and I hereby authorise you without
further notice to me to apply such monies as you may think fit in satisfaction
of the said liabilities.
Dated, the…………….. day of…………..
[Signature of guarantor]
10
Charge by way of floating security of existing book debts
of a business now owing or hereafter to become
owing to the borrower
I (Mortgagor) of (address, etc.) carrying on the business of……………..
at (address) (or at the above address) as beneficial owner hereby charge890 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
by way of floating security the book debts specified in the Schedule hereto
and all other book debts now owing or hereafter to become owing to me
in relation to the said business with the payment to (Mortgagee) of (address,
etc.) of the sum of Rs???. this day advanced by him to me (or now owing
by me to him for which he has required security in consideration for his
forbearance from demanding immediate repayment of the same) with
interest thereon from (the date hereof) at the rate of………….. per cent per
annum payable on the (state days of payment) in each year and I undertake
at any time during the continuance of this security to give to the said
(mortgagee) such information in regard to the book debts for the time being
owing in relation to the said business as he shall reasonably require and
to permit him to inspect the books of such business.
Dated the……………….. day of…………….
THE SCHEDULE ABOVE REFERRED TO:
(Particulars of book debts)
[Signature of mortgagor]
11
Charge of partner?s share and interest in the partnership as
security for repayment of loan with interest
I (Mortgagor) of (address, etc.) a partner in the firm of (style of firm)
carrying on the business of…………. at (address) as beneficial owner hereby
charge all my share and interest in the above-mentioned firm with the
payment to (mortgagee) of (address, etc.) of the sum of Rs……….. this day
advanced by him to me (or now owing by me to him and for the payment
of which he has required security in consideration for his forbearance from
demanding immediate repayment of the same) with interest thereon from
the date hereof at the rate of???. per cent per annum payable quarterly
(or half-yearly) on the (state days of payment) in each year.
Dated the…………….. day of………..
[Signature of mortgagor]
12
Charge by way of simple mortgage created over immovable
property with the payment of the amount of loan,
interest and costs covenanted to be paid, title
deeds relating to the property being delivered
to the Lender as evidence of charge
THIS INDENTURE made etc. BETWEEN A. etc. (Borrower) of the ONE PART
AND B. etc. (Lender) of the OTHER PART.Ch. 60] CHARGE?FORMS 891
WHEREAS the Borrower is the sole and absolute owner of the heredita-
ments mentioned and described in the first schedule hereunder written.
AND WHEREAS the Borrower being in need of money for his business
of……… carried on at??. under the name and style of…………….. has
approached the Lender to lend and advance to him the sum of Rs………….
which the Lender has agreed to do upon having repayment thereof with
interest at the rate hereinafter mentioned and secured in manner herein-
after appearing.
NOW  THIS INDENTURE  WITNESSETH that in pursuance of the said
agreement and in consideration of the sum of Rs……… by the Lender paid
to the Borrower on or before the execution these presents (receipt clause)
he the borrower hereby covenants with the Lender that he the Borrower
shall and will within……. years computed from the date of these presents
pay to the Lender the said sum of Rs……….. with interest thereon in the
meanwhile and until repayment thereof in full at the rate of…………… per cent
per annum payable by monthly instalments on or before the ……………..
day of each and every month succeeding the month for which such interest
shall become due and payable AND shall and will on demand pay to the
Lender all costs, charges and expenses which the Lender may incur or
sustain in connection with these presents or in realising or attempting to
realise the principal sum hereby lent and advanced together with interest
thereon and costs as aforesaid, whether by suit or otherwise howsoever
AND the Borrower as such sole and absolute owner as aforesaid hereby
charges as and by way of simple mortgage ALL THAT the hereditaments
mentioned and described in the first schedule hereunder written TOGETHER
WITH (Insert general words) with the payment to the lender of the principal,
interest and costs hereby covenanted to be paid by the Borrower to the
Lender AND as evidence of such charge and for the due fulfilment of the
covenants and conditions herein contained on the part of the Borrower he
the Borrower hereby delivers unto the Lender the title deeds relating to the
said hereditaments and specified in the second schedule hereunder
written.
AND IT IS HEREBY AGREED AND DECLARED:
1. That the Borrower shall and will duly and regularly pay all rates, taxes
and other outgoings in respect of the said hereditaments during the
subsistence of the charge hereby created and shall not do or suffer to be
done or be party or privy to any act deed or thing whereby the charge hereby
created may in anyway be affected or impaired.
2. And that the Borrower shall and will duly and regularly pay to the
Lender on the monthly dates hereinbefore appointed interest on the
principal sum hereby lent and advanced to him at the rate aforesaid and
that such interest shall not be in arrear for more than………. months.
3. And that upon repayment of the principal sum hereby lent and892 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
advanced with interest and costs as aforesaid at any time after the said term
of……… years and before any suit or proceeding next hereinafter mentioned
has been instituted the Lender shall at the cost of the Borrower execute
a proper release of the charge hereby created.
4. And that if default shall be made by the Borrower to observe and
perform any of the stipulations and conditions hereinbefore contained and
on his part to be observed and performed then and in each such case the
Lender shall be at liberty without further notice to the Borrower to institute
suit or proceeding to enforce the said charge for the realisation of the
principal, interest and costs then due to the Lender on the footing of these
presents.
THE FIRST SCHEDULE ABOVE REFERRED TO:
(Describe the property)
THE SECOND SCHEDULE ABOVE REFERRED TO:
(Set out list of title deeds delivered)
IN WITNESS etc.
13
Deed of charge to accompany a deposit of title deeds to
secure an  advance?power to mortgagor to dispose of
property with approval of the mortgagees
THIS INDENTURE, made etc.  BETWEEN A.B. (hereinafter called the
Borrower), of the One Part, and C.D.  of etc. E.F . of etc. and G.H. of etc.
(hereinafter called the Mortgagees), of the Other Part:
NOW THIS INDENTURE WITNESSETH as follows:
1. The Borrower hereby declares that the documents relating to the
premises situated at??????(a short description of which premises
is contained in THE  FIRST SCHEDULE  hereto, and a list of which documents
is contained  in the SECOND SCHEDULE hereto) have been deposited by the
Borrower with the Mortgagees to secure to the Mortgagees the repayment
of the sum of Rs??..advanced by the Mortgagees out of money belonging
to them on a joint account to the Borrower, with interest thereon payable
as hereinafter mentioned.
2. The Borrower, as Beneficial Owner, hereby charges the said premises
with the repayment of the said sum of Rs???..and interest.
3. The Borrower hereby covenants to pay to the Mortagees on the
????day of??????next the sum of Rs????.., with interest
thereon in the meantime at the rate of Rs??????per cent per annum
from the date of these presents, And also so long as any principal moneyCh. 60] CHARGE?FORMS 893
remains due under these presents after the said???..day of??..to pay
to the Mortgagees interest thereon at the rate aforesaid by equal half-yearly
payments on the ?????.day of???.and the????..day of???in
every year.
4. The Borrower hereby covenants  with the Mortgagees and with each
of them that the Borrower or the persons deriving title under him will when
required, at his or their own cost, execute and deliver to the Mortgagees
or the persons deriving title under them on effectual legal or formal
mortgage of the premises in such form and with such covenants by the
Borrower or the persons deriving title under him and such powers of sale
(express of implied) and other powers and provisions, whether varying the
provisions of the Transfer of Property Act, 1882.
5. For the consideration aforesaid the Borrower hereby irrevocably
appoints the Mortgagees and each of them and other the person or persons
from time to time entitled to the principal money hereby secured, or their
or his substitute or substitutes, to be the attorney or attorneys of the
Borrower and in his name and on his behalf  and as his act and deed or
otherwise to sign, seal and deliver or otherwise perfect any such legal or
formal mortgage as aforesaid, or (without executing any such mortgage)
any deed, assurance or  act which may be required or may be deemed
proper on any sale by the Mortgagees or the persons deriving title under
them of the premises or any part thereof under the statutory power of sale
implied by these presents in order to vest in the purchaser or purchasers
the right, title and interest of the Borrower in the said premises.
6. The Borrower hereby declares that he or the persons deriving title
under him shall henceforth stand possessed of the said premises hereby
charged, in trust for the Mortgagees by way of further security for payment
of the said principal money and interest.
7. PROVIDED ALWAYS that until the said premises shall have been vested
in the Mortgagees or the persons deriving title under them, either by virtue
of a formal mortgage as aforesaid or until the Mortgagees shall have taken
possession of the said premises or any part thereof, Borrower shall have
power to dispose of or deal with the said premises or any part thereof in
like manner in all respects as if these presents had not been executed, and
as if the documents mentioned in the Second Schedule hereto had merely
been deposited with the Mortgagees to secure the said principal money
and interest. And for giving effect to any such authorized sale or disposition
the Mortgagees shall from time to time, if so required, and at the cost of
the Borrower, sign (by themselves or their agents) a letter or memorandum
stating that they have no claim in respect of the premises comprised in such
sale or disposition, and such letter or memorandum shall operate to
discharge those premises from any claim in respect of the deposit of
documents or these presents.894 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
THE FIRST SCHEDULE ABOVE REFERRED TO:
(Particulars of hereditaments)
THE SECOND SCHEULE ABOVE REFERRED TO:
(Particulars of documents)
IN WITNESS etc.
[Signatures of all the parties]
14
Legal charge of dwelling-house to secure advance from
statutory body to be repaid by instalments of principal
THIS LEGAL CHARGE is made the???.day of???..BETWEEN [owner
of small dwelling house] of [address, etc.] (hereinafter called the proprietor
which expression shall where the context so admits include the proprietor
for the time being within the meaning of the???Housing Board Act,
???.of the premises hereinafter mortgagee) of the One Part and
the???. Housing Board of???.being the local authority in the??.
district of???.in the said county for the purposes of the said Act
(hereinafter called the Housing Board which expression shall where the
context so admits include their successors and assigns) of the Other Part.
WHEREAS :
(1) The proprietor has lately purchased and acquired the ownership
within the meaning of the???..Housing Board Act (hereinafter called the
Act) of the premises described in the schedule hereto and is the owner in
respect of the dwelling-house in possession thereof free from encum-
brances and he is resident [intends to reside] in the said premises.
(2)  The market value of the said dwelling house (ascertained in
accordance with the Act) is Rs???.
(3) The proprietor has acquired the said ownership by means of an
advance of the sum of Rs?????made to him by the Housing Board
under the Act and it has been agreed that the repayment of the said sum
with interest at the rate hereinater mentioned shall be secured in manner
hereinafter appearing.
Now in consideration of the sum of Rs???.advanced by the Housing
Board to the proprietor for the purpose of enabling him to acquire the
ownership of the premises described in the schedule hereto (the receipt
of which sum the proprietor hereby acknowledges).
THIS DEED WITNESSETH as follows:
1. The said principal sum of Rs?????with interest thereon at theCh. 60] CHARGE?FORMS 895
rate of Rs????..per cent per annum shall be repaid to the Housing
Board within??..years from the date hereof and such payment of principal
and interest shall be made by the instalments at the times and in manner
following that is to say the said principal sum shall be repaid by????.
equal????..instalments of Rs????.each whereof the first is to be
paid on the???..day of???. next and a like instalment on every
subsequent????.day of???and ???.day of??.until the said
principal sum shall be fully paid and the interest on the said principal sum
or on so much thereof as shall from time to time remain unpaid shall be
paid by????payments on every???day  of???..and???day
of?????.along with the instalments of the principal so that upon each
such day the interest up to that day shall be paid together with the instalment
of principal then payable as aforesaid PROVIDED that the proprietor shall
be at liberty to pay the said principal  sum with the interest thereon earlier
than the period stipulated herein and shall be entitled to abatement of such
interest as are provided in the said Act.
2. The proprietor as beneficial owner hereby charges by way of legal
mortgage all that piece of freehold land house and premises [or as may
be] which are particularly described in the schedule hereto (hereinafter
called the mortgaged premises) with the payment to the Housing Board of
the monies payable hereunder by the proprietor.
PROVIDED that the covenants by the proprietor which are implied in this
deed  by reason of his charging and being expressed to charge as beneficial
owner shall not confer on the Housing Board any right to enter upon or take
possession of the mortgaged premises which may be inconsistent with the
provisions of the Act.
3. The proprietor hereby covenants with the Housing Board that until he
shall cease to be the proprietor by reason of a transfer made in accordance
with the Act?
(1) he will keep the buildings for the time being comprised in this
security insured against loss or damage by fire in the sum of
Rs?????.at the least in the??..Company or in some other
insurance office to be approved in writing by the Housing Board
in the joint names of the proprietor and the Housing Board and will
duly and punctually pay all premiums and monies necessary for
effecting and keeping up such insurance and
(2) he will perform and observe all and singular the conditions and
provisions contained in the Act and on the part of the proprietor
to be performed or observed.
4. The proprietor shall not without the consent in writing of the Housing
Board exercise in relation to the mortgaged premises any powers statutory
or otherwise of leasing or agreeing to lease or of accepting  or agreeing
to accept surrenders of leases and no sale of the said premises shall be896 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
effected by the Housing Board except in accordance with the provisions
of the said Act.
SCHEDULE
[Description of the premises mortgaged]
IN WITNESS etc.
[Signatures of both the parties (with common seal)]
15
Legal charge of building under construction with the
amount of loan to be advanced
THIS LEGAL CHARGE is made the ????day of???BETWEEN [mort-
gagor] of [address, etc.] (hereinafter called the borrower) of the One Part
and [mortgagee] of  [address, etc.] (hereinafter called the lender) of the
Other Part.
WHEREAS:
(1)  The borrower is the absolute owner in possession free from
encumbrances of the property hereinafter described.
(2) The borrower intends [or has commenced] to erect upon the said
property a house and outbuildings as specified in specifications set out in
the schedule hereto at a prime cost of not less than Rs????..
(3) The borrower has obtained all necessary planning approval and
other consents in respect of the said house and buildings.
(4) The borrower requires an immediate advance of Rs???.to enable
him to commence [or  continue] the erection of the said house and
outbuildings and may from time to time require advances  for the completion
of the same.
(5)  The borrower has applied to the lender to advance to him Rs???for
the the purpose aforesaid which the lender has agreed to do upon
repayment thereof with interest being secured in the manner hereinafter
appearing.
(6) The lender has also agreed to make such further advances to the
borrower if he shall so require as are hereinafter mentioned and upon the
terms hereinafter contained.
NOW THIS DEED WITNESSETH as follows:
1. The lender will on the execution hereof advance to the borrower the
sum of Rs?????..Ch. 60] CHARGE?FORMS 897
2. If the borrower shall in the meantime strictly observe and perform all
the agreements stipulations and conditions on his part herein contained but
not otherwise then.
(1) When all the foundations and columns up to first roof level of the
said house shall be erected [to the satisfaction of the lender?s
architect] the lender will advance the sum of Rs???..
(2) When the roofs of the said house and outbuildings shall be fully
completed, the external and internal walls shall be erected and the
outer doors and window frames fitted [to the satisfaction of the said
architect] the lender will advance to the borrower the further sum
of Rs????.
(3) When the said house and outbuildings shall be fully completed so
as to be fit for occupation [to the satisfaction of the said architect]
the lender will advance to the borrower the further sum of
Rs?????.
3. In consideration of the premises and in consideration of the sum of
Rs????paid by the lender to the borrower (the receipt whereof the
borrower hereby acknowledges) the  borrower hereby covenants that he
will
(1) On the ???day of???next repay the said sum of Rs????..
[sum advanced on execution hereof] to the lender with interest
thereon in the meanwhile at the rate of?..per cent per annum;
(2) On such one of the days hereinafter appointed for the payment of
interest as shall next happen after any further advance shall be
made by the lender under the provisions hereinbefore contained
repay to the lender such further advance together with interest
thereon in the meantime at the rate aforesaid and also all
surveyor?s and architect?s fees and other expenses incurred by the
lender in relation to this security and not theretofore repaid to the
lender;
(3) If the said sum of Rs???or any such further advance or any such
fees and expenses as aforesaid shall not he repaid to the lender
on the day hereinbefore appointed for payment thereof respec-
tively then the borrower will thereafter pay to the lender interest at
the rate aforesaid on the principal monies fees and expenses from
time to time remaining unpaid on the security of this deed by equal
quarterly [or half-yearly] payments on the???.in each year until
the whole of the said monies shall be repaid.
(4) For the consideration aforesaid the borrower as beneficial owner
hereby charges by way of legal mortgage all that [description of property]
and all buildings now or hereafter to be erected thereon with the payment
in accordance with the covenants herein contained of all principal money
G : CDD (Vol. 7) ? 57898 CONVEYANCING, DRAFTING & DEEDS [Ch. 60
interest and other money hereby covenanted to be paid by the borrower
[subject only to the proviso for redemption hereinafter contained].
(5) If the borrower shall on the???.day of???..next pay to the
lender the sum of Rs???.and shall likewise pay to him on the days on
which the same respectively ought to be paid under the foregoing covenant
in that behalf any further sums which may be advanced by the lender to
the borrower under the covenant in that behalf herein contained and all
other monies hereby secured with interest in each case as herein provided
the lender will at the request and cost of the borrower duly discharge this
security.
(6) The borrower hereby covenants with the lender as follows:
(1) The borrower will during the continuance of this security and of the
policy or policies next hereinafter mentioned produce on demand
by the lender the policy or policies of insurance against fire and
otherwise effected in accordance with the building contract
dated???.. and made between the borrower of the one part and
[builders] of the other part and the receipt for each premium paid
in respect thereof;
[Or The borrower will in the joint names of the borrower and lender
insure against loss and damage by fire for the full value thereof
[plus  [????] per cent to cover architect?s and surveyor?s fees]
all work executed and materials and goods upon the land hereby
charged and shall keep such work materials and goods so insured
until the said building is completed within the meaning of clause
2(3) hereof. Such insurance shall be with [insurance company] and
the policy and premium receipts shall as and when received by the
borrower be deposited with the lender.  If the borrower shall make
default in securing such insurance the lender may insure as
aforesaid  and if the borrower shall make default in the payment
of any premiums the lender may pay the same and in every such
case all premiums and every other sum paid by the lender shall
be subject to the provisions of clause 13 hereof.  All monies
received under such policies shall be expended in the rebuilding
repairing and replacement of the buildings and the goods and
materials insured and any money not so expended shall be paid
to the lender and applied in the reduction of the principal money
hereby secured]
(2) The borrower will immediately upon the completion of the said
house and outbuildings and so long as any money remains unpaid
on this security keep the buildings for the time being comprised
herein insured in the joint names of the lender and the borrower
against loss or damage by fire to the full insurable value thereof
with [insurance company] and will make all payments required forCh. 60] CHARGE?FORMS 899
that purpose within ?..days after the same shall become due and
will when required by the lender deliver to him the policy or policies
of such insurance and the receipt for each payment made
thereunder. If the borrower shall fa