DEED OD HYPOTHECATION OF TEA CROP & CHARGE ON IMMOVABLE PROPERTY
THIS INDENTURE made on ____________ day of _________ 20____ between _______________ s/o _________________ ( e.g. A.) etc. (Borrower) of the ONE PART
___________________________ s/o ( e.g. B.) etc. (Lender) of the OTHER PART.
WHEREAS the Borrower is the sole and absolute owner of the messuages and hereditaments known as _____________ Tea Estate mentioned and described in the schedule hereunder written and is growing and manufacturing tea therein.
AND WHERAS the Lender has agreed to lend and advance to the Borrower the sum of Rs. . . . . . on and subject to the stipulations and conditions hereinafter contained and secured in manner hereinafter 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 of these presents (receipt clause) he the Borrower hereby charges and hypothecates the entire tea crop already grown and manufactured or in course of manufacture or to be grown and manufactured at the said _________ Tea Estate during the year _________ as security for the due payment of the said sum of Rs. ___________ and the commission, interests, costs, charges and expenses hereinafter mentioned subject to the condition that such charge and hypothecation shall be void and of no effect if the said sum of Rs. . ____________ and the said commission and all interests, costs, charges and expenses hereinafter mentioned are paid and/or satisfied pursuant to the covenants and conditions hereinafter contained.
AND IT IS HEREBY AGREED AND DECLARED
1. That the Borrower shall and will pay to the Lender at ________ the said sum of Rs. _________ and also the commission hereinafter mentioned with interest thereon at the rate of _________ per cent per annum payable half yearly on the 30th day of June and 31st day of December with half yearly rests in the account;
2. AND that the Borrower shall henceforth hold all tea already grown and manufactured or in course of manufacture or to be grown and manufactured at the said _________ Tea Estate during the year ________ as trustee for the sole use and benefit of the Lender.
3. AND that the Borrower shall and will consign the said tea to the Lender at _________ directly the same is manufacture and at the same time send to the lender the Railway Receipts in respect thereof and also send to the Lender every week a report of all tea manufactured at the said messuages and hereditaments and of all tea so consigned to the Lender as aforesaid;
4. AND that the Lender shall be entitled to sell the tea so consigned as aforesaid through brokers nominated by the Borrower with the prior approval of the Lender on such brokers agreeing to carry out the orders and directions of the Lender and undertaking to pay to the Lender the sale proceeds of the tea sold through them and if such brokers shall fail or neglect to carry out the orders and directions of the Lender then in such manner as the Lender shall in his absolute discretion think fit and proper in which case the Lender shall be entitled to realize the sale proceeds from the purchaser or any other broker or brokers and the same when realized shall be placed to the credit of the Borrower
PROVIDED HOWEVER that the Lender shall not be held responsible for any loss or damage that may be sustained by reason of the failure, neglect or default of any brokers, purchasers or other persons connected with or employed for the sale of the tea so consigned as aforesaid;
5. AND that should the Borrower fail or neglect to grow and manufacture tea at the said Tea Estate or to consign to the Lender the tea directly it is manufactured there and becomes fit for sale, or should the brokers to be nominated by the Borrower as aforesaid shall make default in performing and observing any order or direction of the Lender or any of the conditions of their employment, or should the Lender for any reason consider it necessary to take actual possession of the said tea crop in order to protect the Lender’s interest in the same, then the Lender and any person or persons authorized by him in that behalf may enter upon the said __________ Tea Estate and take possession of the tea produced and manufactured or in course of manufacture therein and also the tea crop hereby hypothecated and may also stop the tea in transit or otherwise recover the same from any person or persons in possession thereof and may sell the same either by public auction or by private treaty;
6. AND that the Borrower shall and will pay to the Lender a commission of _________per cent on the gross sale proceeds of all tea sold and also all costs, charges and expenses as between attorney and client that may be incurred by the Lender in procuring or enforcing the due fulfillment of the stipulations and conditions herein.
7. AND that after deducting the commission and costs aforesaid from the said sale proceeds the balance thereof shall be credited towards reduction of the said sum of Rs. ________ and shall carry interest at the rate of _______ up to the date of payment;
8. AND that the account shall be adjusted and closed on the _______________________ and all sums which may be found due thereon from the Borrower to the Lender shall be payable with interest thereon as hereinbefore provided and shall form a charge on the said ________ Tea Estate;
9. AND lastly that the Lender shall be at liberty during the subsistence of these presents to inspect the said ________ Tea Estate and the growing and manufacturing of tea therein at the cost and expense of the Borrower on not more than two occasions.
THE SCHEDULE ABOVE REFERRED TO
(Describe the property)
IN WITNESS etc.