Deed Of Second Mortgage (simple) Deeds Mortgages And Pledges 1641 - Legal Draft

......day of ....... between Mr 'A' of ........ hereinafter referred to as the 'Mortgagor' of the one part and Mr 'C of ...... hereinafter referred to as the Second 'Mortgagee' of the other part as follows
WHEREAS
(1) The Mortgagor is seized and possession of or otherwise well and sufficiently entitled to the land and premises situate       and more particularly described in the schedule hereunder written.
(2) By a deed of mortgage dated ........ between the mortgagor of the one part and Mr 'B' of the other part and registered under serial no ......at the office of the Sub Registrar at ....... the mortgagor has granted and conveyed the said land and premises to the said Mr 'B' (herein after referred to as "the first mortgagee") in consideration of and as a security for a loan of Rs ........ advanced by the said 'B' to the mortgagor with interest and on terms and conditions therein mentioned but subject to the proviso for redemption therein contained.
(3) The Mortgagor requires an additional loan of Rs .......... to meet his liabil ity and has therefore requested the Second Mortgagee to advance the said amount on the security of the said property but subject to the first mortgage and which the second Mortgagee has agreed to do.
Now this deed witnesseth that that pursuant to the said agreement and in consideration of the sum of Rs ............lent and advanced by the Second
Mortgagee to the Mortgagor on th e execution of these presents ( receipt whereof the Mortgagor doth hereby admit) he, the Mortgagor, hereby covenants with the Second Mortgagee that he will pay to the Second
Mortgagee the said sum of Rs .............. on the ............. day of ...............( hereinafter referred to as the 'due date' ) with interest thereon in the meanwhile and until repayment of the said sum in full, at the rate of ......per cent, per annum, every month, the first instalment of interest to be paid on the ............day of .........and each subsequent instalment on the .....................day of each succeeding month until the said principal sum of Rs .......... is repaid in full, AND the Mortgagor further covenants with the Second Mortgagee that in the event of the Mortgagor failing to pay any monthly instalment of interest, he will be liable to pay interest on the said instalment in default at the same rate as aforesaid from the date of default until payment of such instalment as and by way of compound interest, without prejudice to the right of the Second Mortgagee to take any action on default as hereinafter provided, AND it is agreed and declared that in the event of the Mortgagor committing default in payment of any two instalments of interest or in payment of the principal and interest on the due date or committing breach
of any other term of this Deed, the whole amount of principal then due with interest thereon will at the option of the Second Mortgagee become payable forthwith as if the said due date had expired.
AND THIS DEED FURTHER WITNESSETH that in consideration aforesaid, the Mortgagor doth hereby transfer by way of mortgage his said land and premises situated at ...............and described in the Schedule hereunder
written as a security for repayment of the said sum with interest and all other moneys due and payable hereunder but subject to the said first mortgage and without prejudice to the rights of the first mortgagee under the said deed of first mortgage with a condition that on the Mortgagor repaying the said principal sum of Rs ........... with all interest and other moneys due to the Second Mortgagee ( hereinafter referred to as the mortgage amount) the second Mortgagee will redeem the said land and premises from the mortgage security and shall if so required by the mortgagor execute a Deed of Release but at the costs of the Mortgagor.
And it is further agreed and declared by the Mortgagor that in the event of the Mortgagor failing to pay the said principal sum with all interest and other moneys when the same shall become due and payable under these presents, the Mortgagee will become entitled to have the said land and premises sold through any competent Court and to realise and receive the said mortgage amount out of the net sale proceeds of the said land and premises but subject to the rights of the first mortgage.
And it is further Agreed and Declared by the Mortgagor that he shall also be liable to pay and shall pay all the costs, charges and expenses that the second Mortgagee will incur for the protection of the mortgage security and or for the realisation of the mortgage amount and the same shall be deemed to form part of the mortgage amount and the security therefor as aforesaid.
And it is further agreed that during the pendency of the security hereby created and until repayment of the mortgage amount the Mortgagor will get insured and keep insured the buildings and structures standing on the said land against loss and damages due to fire or any other accident in the sum of at least Rs ............. with some Insurance Company of repute and pay all premium on the insurance policy as and when it becomes due and payable in respect thereof to such company and shall hand over the policy to the second Mortgagee duly endorsed in his name as assignee And in the event of the Mortgagor failing to do so or to pay the premium, the second Mortgagee will be entitled to insure the said buildings and structures and/ or to pay the premium thereon and the amount paid by the second Mortgagee in respect thereof will be deemed to form part of the mortgage amount. But this power will not be exercised if and so long as the said property is duly insured under the terms of the said first mortgagee and in such event the second mortgagee will be entitled to the benefit of such insurance subject to the rights and claims of the first mortgagee.
And it is further agreed that in the event of the said land and premises being destroyed or damaged by fire or any accident as aforesaid, the Second Mortgagee will be entitled to receive the insurance claim under such policy to the exclusion of the Mortgagor and to appropriate the same first towards all arrears of interest and then the principal amount or any part thereof as may be sufficient to pay the mortgage amount due and if any surplus remains the same only will become payable to Mortgagor. But this will be subject to the interest and claim of first Mortgagee.
And the mortgagor further convenants with the mortgagee that he the Mortgagor will pay the interest as and when it becomes due and payable to the first mortgagee under the said deed of mortgagee herein before recited and shall observe all the terms and conditions thereof regularly and in the event of the Mortgagor failing to pay the interest and or observing the terms and conditions of the said mortgage as aforesaid the Second Mortgagee will be entitled to claim the mortgage amount here by secured as if the due date herein above provided for repayment has expired or as if the mortgagor has committed breach of any other term of this deed.
AND the mortgagor further covenants with the Second Mortgagor that the mortgagor will give notice in writing to the first mortgagee on the execution of these Presents
AND It is agreed by and between the parties hereto that on the mortgage amount under the first mortgage becoming due and payable at any time under the terms of the said first mortgage the second mortgagee will be entitled to redeem the said mortgage without being bound to do so and on such redemption the Second mortgagee will be entitled to all the rights of the first mortgagee under the said first mortgage and the mortgagor will execute in favour of the Second mortgagee such documents as the Second mortgagee will require in that behalf.
IN WITNESS whereof the mortgagor has put his hands the day and year first hereinabove written.
The Schedule above referred to
xxxxx
Signed and delivered by the withinnamed
mortgagor Mr 'A' in the presence of