MORTGAGE FOR SECURING ADVANCES [CD1]
THIS MORTGAGE is made
this the _______ day of _______ 20 _______,
BETWEEN
Mr………………………………...
,age………
Resi…………………………………
a firm duly registered under the Indian
Partnership Act with the Registrar of Firms at _______.and having its
registered office at _______ and its showroom at _______ acting through its
partner
Shri ___________________ and
______________
.(hereinafter
called the Mortgagors) of the one part
AND
,………………………………………………………………………………
Age…………………………………………..
.resi…………………………………………..
(hereinafter called the Mortgagee) of the
other part.
WHEREAS
the Mortgagors are
carrying on the wholesale business of purchase and sale of various commodities
on a wholesale scale and have to pay large sums for such bulk purchases at a
time and have no liquid money to cover such payments;
AND
WHEREAS the Mortgagee has on the request of the Mortgagors agreed to advance
from time to time sums of money not exceeding the sum of Rs _______ at any one
time up to a limit of Rupees _______ (Rs _______) only.
NOW, THEREFORE,
THIS DEED WITNESSES
that
in consideration of the sums of money hereinafter to be paid from time to time
in the manner hereinafter provided by the Mortgagee to the Mortgagors, the
Mortgagors hereby transfer by way of mortgage the entire business known as AA
of _____________________ together will all the books debts, stock-in-trade,
goodwill, implements, trade utensils, furniture, fittings and fixtures
specified in the Schedule hereto now being in or about the premises unto the
Mortgagee, his heirs, successors and assigns on the conditions following:
1.
That the Mortgagee shall on
demand pay or cause to be paid to the Mortgagors or their order any sum or sums
not exceeding in the aggregate the sum of Rs ___________ aforesaid. That the
Mortgagors shall pay an interest of _______ per cent per annum on the sum or
sums so advanced from the date of advance till payment, and the entire debt
together with all interest, charges etcetera shall be paid within _______ years
from the date hereof.
2.
That the Mortgagors shall carry
on their normal business of sale of buying and selling but the goods described
in general in the foregoing para and more specifically in the Schedule hereto
and the goods which shall hereafter be purchased by the Mortgagors shall all
form security for the due payment of this loan. The goods hereafter bought
shall be deemed to be in substitution for and in lieu of such of the goods
which might have been sold. All such goods shall form the security for the
payment by the Mortgagors of the balance due to the Mortgagee at any time. And
the expression balance due to the Mortgagee in this and subsequent paras
include the principal money advanced and also all interest thereon at the rate
hereinbefore specified and the amount of all or any other charges and expenses
which the Mortgagee may have paid or incurred in any way in connection with the
securities or their sale or disposal thereof.
3.
That the Mortgagors shall be at
liberty from time to time to withdraw from the Mortgagee any of the goods for
the time being mortgaged to the Mortgage and forming part of the security, the
subject of this agreement, provided the Mortgagors substitute goods of a
similar nature to those mentioned in the
Schedule hereto,
or any of the same, and of at least equal value for the goods so
withdrawn.
4.
That in case any goods are
withdrawn, as provided above, or sold, in the normal course of business, as
provided in Para 2 above, and similar, or goods of equal value, not substituted
then the advance value of the goods so withdrawn shall be paid by the
Mortgagors to the Mortgagee within one week of such withdrawal or sale by way
of part payment of the balance due to the Mortgagee and will be credited as
such by the Mortgagee in the mortgage account.
5.
That the Mortgagors shall not
during the continuance of this mortgage, mortgage, pledge or otherwise
howsoever charge or encumber any of the goods for the time being the subject or
entitled to be the subject of this security nor do or permit any act whereby
the security hereinbefore expressed to be given to the Mortgagee shall be in
any way impaired.
6.
That the Mortgagee shall keep a
regular account of the advances made from time to time, together with all
interest, expenses and charges incurred, and furnish a copy of the same to the
Mortgagors as and when demanded and the Mortgagors shall insure the entire
security against loss or damage by fire, burglary and civil commotion and the
Insurance Policy shall be assigned and kept lodged with the Mortgagee so that
he may in case of such loss or damage arising during the subsistence of this
mortgagee realise the same from the Insurance Company. The Mortgagors shall
also permit the Mortgagee to inspect the mortgaged property or any books of
account of the Mortgagors whenever demanded in order to enable him to find out
if the terms of this mortgage are being complied with by the Mortgagors.
7.
That if the Mortgagors shall
fail to pay the advance value of the goods withdrawn or sold or disposed of or
shall fail to substitute the goods withdrawn, sold or disposed of or otherwise
impair the security or if the Mortgagors fail to repay the balance due to the
Mortgagee or in the event of any other breach of the terms of the mortgage it
shall be lawful for the Mortgagee to have the mortgaged goods sold for the
recovery of the amount due AND should the sale not realise the sum then due on
the mortgage, the Mortgagors hereby agree with the Mortgagee that it shall be
lawful for the Mortgagee to demand and obtain a simple money decree for the
balance of the amount left unrealised.
8.
That no change whatsoever in
the constitution of the Mortgagor-firm during the continuance of this mortgage
shall impair or discharge the liability of the Mortgagors or the individual
partners then comprising the said firm.
IN WITNESS whereof the Mortgagors and the Mortgagee have hereunto at
_______, set their hands the day and the year first abovewritten.
Witnesses:
Sd.
Sd.
1.
Mortgagors.
2.
(Partners)
Sd.
Mortgagee.
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