AGREEMENT BETWEEN BANK AND MORTGAGOR CREATING EQUITABLE MORTGAGE  

 

Date:- ___________________

BETWEEN BANK having its Head Office at ______________  (hereinafter called the Bank which expression shall include wherever the context so admits its successors and assigns) of the One Part

AND

__________________ a company incorporated under the Companies Act, 1956 and having its registered office at _______________  /son/s of ________________ residing at _______________ carrying on business under the name and style of ________ at ___________ as sole proprietor/ partners thereof (hereinafter called the Borrower(s) which expression shall include wherever the context so admits its successors and assigns/his/their heirs, executors, representatives and assigns) of the Other Part:

WHEREAS the Bank has granted or agreed to grant to the Borrower(s) banking facilities by way of Overdraft and/or Cash Credit and/or Promote or Loan account or accounts up to the aggregate limit of Rs. _____________ (in words) to the Borrower(s)/upon the terms and conditions set forth in the Hypothecation Agreement dated the ____________ and made between the Bank of the One Part and the Borrower (s) of the Other Part/upon inter alia the terms and conditions hereinafter appearing;

AND WHEREAS it has been agreed by and between the parties hereto that the Borrower(s) should create in favour of the Bank a Mortgage by Deposit of Title Deeds (particulars whereof are set forth in the First Schedule hereto) of his/its/their immovable property (particulars whereof are set forth in the Second Schedule hereto) TOGETHER WITH the buildings, structures and fixtures erected on or affixed thereto and other buildings, structures which may hereafter be erected on or affixed to or situated on the said immovable property as security inter alia for the due repayment by the Borrower(s) to the Bank the said aggregate advance of Rs. _______________ (in words) with interest thereon and costs and other moneys in relation thereto;

AND WHEREAS the parties are desirous of recording the terms which have already been agreed to between themselves of the said security to be created by way of Mortgage by Deposit of Title Deeds over the Borrower.s said immovable property.

NOW THIS AGREEMENT RECORDS THAT IT HAS BEEN AGREED BY AND BETWEEN the parties as follows:

1. That the said Mortgage by Deposit of Title Deeds shall be created by the Borrower(s) for the purpose of securing payment to the Bank on demand of all money payable or to become payable at any future time to the Bank in respect of the said Overdraft and/or Cash Credit and/or Promote or Loan account or any other account or accounts and any other money now owing or which shall at any time hereafter be owing in respect of the said account or accounts or any of them in the name of the Borrower(s) in the Books of the Bank at its office at __________ or elsewhere up to a maximum limit or Rs. __________ (in words) together with interest on the above mentioned amount at the rate of _____ % per annum over the Bank Rate minimum ______% per annum to be compounded _________ so long as any money within the limit aforesaid shall remain due and owing on the said account or accounts or any of them and all discounts, commissions, insurance premium, costs, charges and expenses and legal costs (as between attorney and client) incurred by the Bank in relation thereto PROVIDED HOWEVER the Bank shall at any time and from time to time be entitled to give notice to the Borrower(s) of its intention to change the rate and terms of interest and may thereafter charge interest at such rate and on such terms as it may specify and this document shall be construed as if such revised rate and terms were expressly mentioned herein and were agreed to be paid and secured.
2. That the said Mortgage to be created by Deposit of Title Deeds would be available as security notwithstanding any fluctuations in the Overdraft and/or Cash Credit and/or Promote or Loan account or accounts or any of them and be unaffected by any other security which might be held by the Bank for the said account or accounts or any of them and that for the purpose of Section 79 of the Transfer of Property Act, 1882 but otherwise without prejudice to the liability of the Borrower(s) to the Bank the sum of Rs ________  (in words) should be expressed as the maximum amount to be secured by the said Mortgage by Deposit of Title Deeds.
3. The Borrower(s) further undertake(s) to the Bank that during the continuance of the said Mortgage to be created by Deposit of Title Deeds the Borrower(s) will not without the written consent of the Bank first had and obtained, grant any lease of or create any further charge on the mortgaged property or any part thereof in favour of any person or persons, firm or company or any other body corporate and that any lease or charge if granted or created without the aforesaid consent of The Bank shall not and will not be binding on the Bank and will be treated by the Bank as void and inoperative.
4. The Borrower(s) further undertake(s) to execute and complete a legal mortgage by written instrument at his/its/their costs if and when required by the Bank in such form and containing such provisions including a power of sale as the Bank may require for better securing the repayment of all moneys to be secured by the said Mortgage by Deposit of Title Deeds as aforesaid.
5. The Borrower(s) declare(s) and acknowledge(s) that the documents to be deposited as set out in the First Schedule hereunder are the only documents in his/ its/their possession relating to the property intended to be mortgaged by the said Deposit of Title Deeds.

IN WITNESS WHEREOF these presents have been executed by the Bank by its Constituted Attorney and the Borrower(s) /the Common Seal of the Borrower has hereunto been affixed on the day and year first above written.

 

THE FIRST SCHEDULE ABOVE REFERRED TO:

 

List of Title Deeds

1. Date of each document,
2. Nature of each document such as Sale Deed, Lease Deed, etc. etc.
3. Parties to each document should be clearly stated.

 

THE SECOND SCHEDULE ABOVE REFERRED TO:

 

Description of the Property

1. Municipal number of the premises,
2. Touzi No., Khatian No., Dag No., Mouza, Pargana, District and Police Station within whose jurisdiction the land is situated and the area thereof should be stated,
3. if there is any building, a description of the building should also be given.

 

SIGNED ON behalf of Bank by Shri ____________ its _______________ and Constituted Attorney appointed

by the Power of Attorney dated the ___________ day of ______ 20____

In the presence of:

1. ___________________
2. ____________________

THE COMMON SEAL OF _________________ has hereunto been affixed pursuant to the

resolution of its Board of Directors passed on the ________ day of _______ 20____

In the presence of Shri. ____________ a ____________  thereof who has signed these presents.

 

SIGNED, SEALED AND DELIVERED BY

Shri. ____________________ at ______________

In the presence of:

1. ____________________________
2. ____________________________ 

 

SIGNED, SEALED AND DELIVERED BY

Shri __________________ Partner(s) proprietor of _______________ at __________

In the presence of:

1. __________________
2. __________________