Agreement is made at
____ this ________ day of ______ between Mr. A residing at __________
hereinafter referred to as the Mortgagor of the One Part and M/s AB & Co.
a partnership firm consisting of (1) ___ (2) ___ (3) ___ as partners carrying
on business at ______ hereinafter referred to as the Mortgagees of the Other
Part ;Whereas1.
The
Mortgagor owns an immovable property consisting of a plot of land with a
building thereon and situated at ______ and which is more particularly
described in the Schedule hereunder written.2.
The
Mortgagor is in need of money for paying certain business debts and liabilities
and has, therefore, approached the Mortgagees to advance to him a loan of Rs.
____ which the Mortgagees have agreed to do on the following terms and
conditions :Now It Is Agreed
Between The Parties Hereto As Follows :1.
The
Mortgagees agree to lend to the Mortgagor and the Mortgagor agrees to borrow
from the Mortgagees a sum of Rs. ______. The Mortgagor agrees that he will pay
interest on the said sum at the rate of ____ percent per annum from the date of
advance till repayment thereof by the Mortgagor to the Mortgagees.2.
The
interest at the rate aforesaid will be paid every three months that is with
quarterly rests and in the event of default in paying interest as aforesaid the
Mortgagees will be entitled to charge interest on the amount of interest in
arrears by way of compound interest at the same rate as aforesaid so that the
interest in arrears will be capitalised by way of compound interest carrying
interest thereon as aforesaid. This, however, will be without prejudice to the
right of the Mortgagees to take action for recovery of the mortgage debt and
the interest in arrears by any process of law available to them, in the event
of default in payment of interest every quarter as aforesaid.3.
The
said principal amount will be repayable with interest as aforesaid within ___
years from the date of advance.4.
The
repayment of the said amount of principal and interest and all costs, charges
and expenses becoming payable by the Mortgagor will be secured by a first
mortgage of the said property described in the Schedule hereunder written.5.
The
said principal sum of Rs. ___ will be advanced and paid by the Mortgagees to
the Mortgagor on the execution of the Deed of Mortgage by the Mortgagor in
favour of the Mortgagees.6.
The
Deed of Mortgage will be in the form of English mortgage and will contain all
the covenants, powers, provisions, terms and conditions as are usually
contained in such deed and as will be advised to be incorporated by the
Mortgagees Advocate.7.
The
Mortgagor will make out a clear and marketable title to the said property, free
from encumbrances and claims and the Mortgagor shall produce to the Mortgagees
Advocate for inspection all the title deeds in his possession or power.8.
Within
eight days from the date hereof the Mortgagor shall produce to the Mortgagees
Advocate for inspection all the title deeds in his possession or power.9.
If
any other person or persons is found interested in the said property, the
Mortgagor will either obtain the release of such interest by a proper deed of
release or will procure his signature to the Deed of Mortgage as a Mortgagor
the intention being that the loan will be advanced on the security of the said
property as a whole and not on any interest therein.10.
The
transaction of mortgage will be completed within a period of three months from
the date hereof. If the transaction is not so completed then, without prejudice
to the right of the Mortgagees to terminate this agreement, the Mortgagees will
be entitled to charge interest at the rate aforesaid on the said amount of
principal from the expiration of the said period till the execution of the Deed
of Mortgage and the same will be deducted from the principal amount, unless it
is separately paid by the Mortgagor.11.
The
Mortgagor will also execute any other documents, by way of declaration or
otherwise as will be required by the Mortgagees Advocate to safeguard the
interest of the Mortgagees.12.
The
Mortgagor declares that the said property is not subject to any reservation or
acquisition or any litigation and no notice for heavy structural repairs, or
acquisition or requisition or reservation has been received by him.13.
If
the title is not made out marketable as aforesaid or the Mortgagor fails to
complete the transaction by execution of the Deed of Mortgage and any other
documents as aforesaid within the said period or any further period extended by
the Mortgagees, or commits breach of any term of this agreement, the Mortgagees
will be entitled to cancel this agreement by fifteen days prior notice to the
Mortgagor or his Advocate.14.
In
the event of termination of this agreement as aforesaid or on completion of the
mortgage transaction all the costs, charges and expenses incurred by the
mortgagees of an incidental to this agreement will be payable by the Mortgagor
alone. As a security for such payment the Mortgagor shall deposit with the
Mortgagees Advocate a sum of Rs. _____ on the execution of this agreement. All
Stamp duty and registration charges of the Deed of Mortgage and other documents
if any, will be paid by the Mortgagor alone.15.
Before
execution of the Deed of Mortgage the Mortgagor and all other persons executing
the Deed will obtain their respective Income Tax Certificates under section
230A of the Income Tax Act if it is required to be obtained for registration of
the Deed.IN WITNESS WHEREOF
the Parties have put their hands the day and year first hereinabove written.The Schedule above
referred toSigned and delivered
by thewithinnamed Mortgagor
Mr.in the presence of
___Signed and delivered
for andon behalf of the
withinnamedMortgagees M/s AB
& Co. bytheir authorised
partnerMr. _____ in the
presence of