Deed Of Usufructuary Mortgagei Deeds Mortgages And Pledges 1651 - Legal Draft

............the One Part and Mr. B residing at ............hereinafter referred to as 'the Mortgagee, of the Other Part;
WHEREAS -
( 1) The Mortgagor is seized and possessed of a piece of land with building thereon situate at.......... and more particularly described in the Schedule hereunder written.
( 2) The said building is occupied by monthly tenants and yielding an d ye arly gross income of Rs....
( 3) The Mortgagor being in need of money has requested the Mortgagee to advance to him a sum of Rs ...............on the security of a mortgage of the said property.
( 4) As the Mortgagor has no other source of income to repay the said amount except out of the rents of the property the Mortgagee has agreed to advance the said amount provided the possession of the property is given to the Mortgagee to enable him to recover the said amount with interest out of the rents and profits of the said property, subject to the right of the Mortgagor to redeem the mortgage earlier if possible which the Mortgagor has agreed to do.
NOW THIS DEED WITNESSETH THAT -
1. Pursuant to the said agreement and in consideration of the said sum of Rs ......lent and advanced by the Mortgagee to the Mortgagor on the execution of this Deed (receipt whereof the Mortgagor doth hereby admit) He the Mortgagor doth grant and transfer unto the Mortgagee the said land and building described in the Schedule hereunder including the right to enter into the possession of the said property on the execution of this Deed To Hold the same unto and to the use of the Mortgagor subject to the right of redemption of the Mortgagor as hereinafter provided.
2. The Mortgagor covenants to pay interest on the said principal amount at the rate of ... percent per annum with monthly rests until the whole of the principal amount is repaid in full by way of adjustment of net income of the said property as herein provided.
3. AND IT IS HEREBY AGREED AND DECLARED THAT
(a)The Mortgagee shall be entitled to recover the rents and profits of the said property to the exclusion of the Mortgagor and after paying therefrom the rates and taxes payable in respect thereof to the Govt, or any local authority and the expenses for recovering such rents and profits and for carrying out tenantable repairs as and when required and other expenses for protecting and maintaining the said property as a prudent man would do, he shall be entitled to appropriate the net income first towards payment of interest on the said principal amount as aforesaid and then towards the said principal amount or partly towards interest and partly towards the principal amount as he may think proper.
(b)The Mortgagee shall be entitled to remain in possession of the said property until the said principal amount with interest is repaid or recovered by him in full as aforesaid out of the net income from the said property;
(c)The Mortgagor hereby attorns the tenants of the said property to the Mortgagee with full power and authority to him to receive and recover the rents from the occupants and other income therefrom and to take legal action against any of them to recover the rents or income payable by him and to do all acts and things necessary to be done in that behalf.
(d)The Mortgagee will be entitled to let out any portion of the said property which is vacant or becomes vacant at reasonable rent and on such conditions as the Mortgagee may think fit.
(e)That the Mortgagee will keep clear and full accounts of all sums received and spent by him while in possession of the said property and the Mortgagor will be entitled to ask for inspection thereof and make copies of such accounts together with vouchers supporting the same.
(f)The Mortgagee will be entitled to insure the said property against loss of or damage to the said property by fire in the name of the Mortgagor or in his own name and in the event of recovery of any moneys under the policy of insurance to apply the same towards payment of interest in arrears and towards payment of the principal amount or in reinstating the property or repairing the same.
(g)The Mortgagee will also be entitled to the benefit of all accessions to the said property or any improvements made thereto, during the period of this security.

4. It is further agreed that after the Mortgagee has recovered his principal amount and interest and other moneys payable to him, he will recover the said property to the Mortgagor and shall deliver back possession thereof and he shall execute necessary documents in that behalf at the costs of the Mortgagor.

5. It is further agreed that notwithstanding anything herein provided the Mortgagor will have the right to redeem the mortgage after a period of ten years from the date hereof (by which time the Mortgage debt is expected to be repaid out of the net rents ) upon repayment of the balance of the Mortgage debt due and payable to the Mortgagee at the expiration of the said period, subject to verification of accounts.

6. And the Mortgagor hereby covenants with the Mortgagee that-
(a)The Mortgagor has good right and full power to grant the said land and building hereby granted or expressed so to be and every part thereof unto and to the use of the Mortgagee in manner aforesaid.
(b)That the Mortgagee shall quietly possess and enjoy the said property and receive the rents, income and profits thereof without any lawful interruption or disturbance whatsoever by the Mortgagor or any person or persons lawfully claiming under from or through him and shall be at liberty to pay thereout the Govt, revenue and all other charges of a public nature and all rents if any accruing due in respect of the said mortgaged premises during such possession and any arrears of rent in default of payment of which the said land and premises may be summarily sold and all expenses incurred for the management of the mortgaged premises and the collection of rents income profits and all other outgoings including costs of repairs of the said mortgaged premises as agent of the Mortgagor with interest thereon at the rate aforesaid and appropriate the net income towards repayment of the Mortgage debt as aforesaid. That the said mortgaged premises are free and clear and freely and clearly and for ever released and discharged or otherwise by the mortgagor and well and sufficiently saved, kept harmless and indemnified of and from and against all previous and other estates title, charges and encumbrances whatsoever had made executed or suffered by the Mortgagor or any other person lawfully claiming under him. The Mortgagor and all persons claiming any estate or interest in the Mortgaged premises under him, shall and will from time to time and at all times hereafter upon the request of the Mortgagee and at the costs of the Mortgagor do and execute or cause to be done or executed, all such acts, deeds and things whatsoever for further and more perfectly assuring all or any of the said premises unto and to the use of the Mortgagee in manner aforesaid as shall or may be reasonably required by the Mortgagee.

IN WITNESS WHEREOF the Mortgagor has put his hand the day and year first hereinabove written.
THE SCHEDULE ABOVE REFERRED TO
X X X X
Signed and delivered by the )
withinnamed Mortgagor .. )
Mr .... . in the presence of )