Memorandum of deposit of title deed by way of equitable mortgage with provision for subsequent legal mortgage to secure present and future advance
This Memorandum of Deposit of TITLE DEEDS made the ___________ day of ___________
BETWEEN
Mr. ___________ S/O ___________ R/O ___________ hereinafter named “Mortgagor” (which expression shall unless contrary to the context include his related successors, executors, administrators and assigns) of the ONE PART.
AND
Mr. ___________ S/O ___________ R/O ___________ hereinafter named “Mortgagee” (which expression shall unless contrary to the context include his related successors, executors, administrators and assigns) of the OTHER PART.
WHEREAS:
(1) The Mortgagor is absolutely seized and possessed of the hereditaments and premises mentioned and described in the first schedule hereunder written as an absolute owner free from encumbrances.
(2) The Mortgagor has requested the Mortgagee to lend and advance to him the sum of Rs ___________ which the Mortgagee has agreed to do upon having repayment thereof with interest secured by the deposit of the title deeds of the said hereditaments with the Mortgagee to the intent and purposes hereinafter appearing.
NOW THIS DEED FURTHER WITNESSETH:
(1) That in pursuance of the said agreement and in consideration of the sum of Rs ___________ lent, advanced and paid by the Mortgagee to the Mortgagor on or before the execution of these presents (receipt clause) he the Mortgagor hereby delivers to and deposits with the Mortgagee at ___________ the several documents of title set forth in the second schedule hereunder written relating to the hereditaments mentioned and described in the first schedule hereunder written as security and with intent to create an equitable mortgage of the said sum of Rs ___________ with interest and costs and for the due fulfilment of the covenants and conditions hereinafter mentioned.
(2) That the Mortgagor hereby covenants with the Mortgagee that he the Mortgagor shall and will on the ___________ day of ___________ pay to the Mortgagee the said sum of Rs ___________ with interest thereon in the meantime and until repayment thereof at the rate of ___________ per cent per annum payable by monthly instalments on or before the ___________ day of each and every month and all costs, charges and expenses which the Mortgagee may incur or be liable to in or about the recovery of the principal, interest and costs hereby secured AND that he the Mortgagor is the sole and absolute owner of the said hereditaments AND that he the mortgagor has not done or knowingly suffered or been party or privy to any act, deed or thing whereby he the Mortgagor is prevented from mortgaging the said hereditaments in manner aforesaid.
(3) That the Mortgagor hereby covenants with the Mortgagee that the hereditaments herein mentioned can be subsequently be placed under a Legal Mortgage to secure any present or future advance as may be required by the Mortgagor.
AND IT IS HEREBY AGREED AND DECLARED that during the subsistence of the security hereby created he the Mortgagor shall and will duly and regularly pay the ground rent and all rates, taxes and other outgoings in respect of the said hereditaments and keep the Mortgagee effectually indemnified from and against the same and all claims and demands in respect thereof AND shall not grant any lease of the said hereditaments or any part thereof for a term exceeding three years without the consent in writing of the Mortgagee first had and obtained. PROVIDED nevertheless that if the Mortgagor shall make default in the payment to the Mortgagee of the interest herein reserved for ___________ consecutive months, or shall fail to observe and perform any of the other covenants and conditions herein contained and on his part to be observed and performed, or if any defect shall hereafter appear in the Mortgagor’s title to the said hereditaments or any part thereof then and in every such case it shall be lawful for the Mortgagee to call for the moneys then outstanding on the footing of these presents and to institute suit or proceeding for recovery of the same and to enforce the security hereby created.
THE FIRST SCHEDULE ABOVE REFERRED TO: (Describe the property)
THE SECOND SCHEDULE ABOVE REFERRED TO: (Set out list of title deeds deposited)
WITNESSES:
- FIRST PARTY
- SECOND PARTY
