SHORT FORM OF AN ENGLISH MORTGAGE

This deed of mortgage made at……………….this………..day of…………between Mr.
A…………… hereinafter referred to as the mortgagor of the one part and the Bank of…………a Banking Corporation constituted by the Banking Companies (Acquisition and Regulation) Act, 1970 having its Branch Office at……… and Head Office at……………..hereinafter referred to as the mortgagee of the other part as follows :
Whereas
1. On the………………day of……………the Mortgagor borrowed a term loan of Rs……………for his business and executed on the same day a memorandum of equitable mortgage evidencing the deposit of title deeds relating to the mortgagor's immovable property situated at…………..and more particularly described in the Second Schedule to the said Memorandum being the same as described in the Schedule hereunder written by the Mortgagor with the Mortgagee at its said Branch Office with an intent to create an equitable security for the said term loan
2. By the said Memorandum the mortgagor agreed to execute a legal mortgage in favour of the Mortgagee to secure the said term loan whenever demanded by the Mortgagee.'
3. The whole of the said term loan of Rs…………..still remains due and payable to the Mortgagee on the security of the said Memorandum and the deposit of title deeds though all interest due thereon upto date has been paid.
4. The Mortgagee has now called upon the Mortgagor to execute a deed of legal English Mortgage which the Mortgagor has agreed to do.
This Deed witnesseth that in pursuance of the said agreement and in consideration of the said loan of Rs……………..due and payable to the Mortgagee, the Mortgagor doth hereby covenant with the Mortgagee that he the Mortgagor will pay to the Mortgagee the said sum of Rs……………….on the……………..day………….with interest thereon in the meanwhile at the rate of Rs……………….percent per annum payable monthly on the…………….day of each month hereafter until the whole principal amount is paid in full and the Mortgagor doth further covenant that in default of payment of any monthly instalment of interest on the due date the Mortgagor will be liable and will pay interest on that interest by way of compound interest at the same rate as agreed as if the amount of arrears of interest was converted into principal amount. And this deed doth further witness that pursuant to the said agreement and in consideration aforesaid the Mortgagor as beneficial owner doth hereby grant and convey to the Mortgagee the said property more particularly described in the Schedule hereunder written together with all his estate, right, title and interest therein and together with all its appurtenances absolutely but subject to the covenant for redemption hereinafter contained as a security for repayment of the said principal sum of Rs……………..together with all interest payable thereon including interest by way of compound interest and all other moneys due and payable by the Mortgagor to the Mortgagee under or by virtue of these presents And it is agreed and declared that if the mortgagor shall repay to the mortgagee the said amount of Rs………………….with all interest and all other moneys payable under these premises on or before the said day of………….the mortgagor will at the cost of the mortgagor reconvey the said property and release the same from the security hereby created.
And the Mortgagor doth hereby agree and declare that the Mortgagee will be entitled to have and to exercise all the rights and powers given to a Mortgagee under and by the provisions of the Transfer of Property Act, 1882 including the power to sell the property by auction without the intervention of a Court of law as well as appoint a receiver of the said property in event of the Mortgagor failing to repay the said principal amount on the due date as aforesaid or the moneys otherwise becoming due and payable under these provisions as if the said powers and provisions were incorporated in these presents.
And it is further agreed and declared that in the event of the Mortgagor failing to repay the said principal amount on the due date or failing to pay interest or any other amount as and when it becomes or in the event of the Mortgagor committing breach of any of the provisions of this Deed or any provision of law or in the event of the Mortgagor being adjudged insolvent or in the event of the mortgaged property being damaged or the said security in the opinion of the Mortgagee becoming insufficient the Mortgagee will be entitled whether the due date has expired or not, to call upon the Mortgagor to repay the said amount of principal with interest and all other moneys that may be due and to enforce the security as the mortgagee may think fit.
And the Mortgagor covenants with the Mortgagee that (i) he has full right and absolute authority to mortgage the said property in the manner aforesaid (ii) that he has not created any enumbrance or charge on the said property and (iii) that he will execute such further documents in the favour of the Mortgagee to further secure the said debt as required by the Mortgagee.
And the Mortgagor agrees that the title deeds relating to the said property deposited by the Mortgagor with the mortgagee as aforesaid will remain with the Mortgagee until the said amount of debt is paid in full subject to the right of the Mortgagor to take inspection or copies thereof as and when required at his own cost.
And it is further agreed and declared and the Mortgagor covenants that he will have the property insured against the risk of fire or any other accident in the sum of at least Rs………..with any Insurance Company of repute and shall pay the premium regularly failing which the Mortgagee will be entitled to pay the same and add the amount so paid to the principal amount and that the Mortgagor will not let out the said property or any part thereof hereafter without the written consent of the Mortgagee. The Mortgagor also agrees and declares that all cost, charges and expenses incurred by the Mortgagee in connection with the security hereby created or for enforcing the security and recovering the amount due to the Mortgagee under these presents will be payable by the Mortgagor and the same will be added to the principal amount and be considered as part of the same unless they are paid by the Mortgagor separately. And it is lastly agreed and declared that all the duties and obligations of a Mortgagor laid down or provided by the Transfer of Property Act will be binding or obligatory on the Mortgagor as if the said provisions of the Act in respect thereof are incorporated in these presents.
IN WITNESS WHEREOF the Mortgagor has put his hand the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
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Signed and deliver by the       )
within named                          )
Mortgagor in the presence of  )