Mortgage Deed

THIS DEED OF MORTGAGE is made this ____________ day of _________, 2013.

Mr. _____________ son of ________, resident of ______, Karachi (herein after referred to as the “Mortgagor”, which expression shall, where the context so admits, mean and include the Mortgagor heirs, executors, administrators and personal representatives)

IN FAVOR OF

___________________________, a banking company incorporated under the Laws of Pakistan, having its place of business at _________________________________ (hereinafter referred to as the “Bank” which expression shall, where the context so admits, mean and include its successors in interest and assigns)

WHEREAS:

a) The Mortgagor is the full and absolute owner of the property described in the Schedule attached hereto.
b) The Mortgagor is a banking company incorporated under the laws of Pakistan and having its place of business at 15-A, State Life Building, Sir Agha Khan Road, Lahore.
c) At the request of the Mortgagor, the Bank has extended/agreed to extend ‘Finance’ as defined in the Financial Institutions (Recovery of Finances) Ordinance, 2001 (hereinafter referred to as the ‘Facility’). In this connection, the Mortgagor has executed an agreement with the Bank and/or has agreed to execute such agreement(s) with the Bank, from time to time (hereinafter referred to as the ‘Agreement’)
d) The Mortgagor, to secure performance of his obligations under the Agreement and as security for the payment of the Facility along with the mark up, liquidated damages, additional liquidated damages and all other costs, charges, commission, fees, cost and expenses thereon or connected therewith, has created an equitable mortgage in favour of the Bank which is evidenced by a Memorandum of Deposit of Title Deeds, which subsists and continues in full force and effort.
e) In addition to and without prejudice to the equitable mortgage already created by the ‘Mortgagor’, the Bank has required, and the Mortgagor has agreed, to create and register a legal mortgage for an additional sum of Rs. 100, 000, 00/- along with the mark-up, liquidated damages, additional liquidated damages and all other costs, damages, commission, fees, costs and expenses thereon or connected therewith in respect of all that complete Property described in the Schedule hereto, together with all buildings, fittings, fixtures, amenities, easements and appurtenances whatsoever (hereinafter referred to as the “Mortgaged Property”).

NOW THIS DEED OF MORTGAGE WITNESSES AS UNDER:

1) In consideration of the Bank entering into the Agreement with the Mortgagor and the Bank providing/agreeing to provide Facility to the Mortgagor, the Mortgagor hereby:

i) confirms that the Mortgagor has already created an equitable mortgage in favor of the Bank which is evidenced by the Memorandum in order to secure the Facility. The Mortgagor further confirms that the equitable mortgage still subsists and continues in full force and effect and secures the amounts recorded in the Memorandum;
ii) confirms that at the request of the Bank creates a legal mortgage for a further sum of Rs. 100, 00, 00/- in addition to and without prejudice to the equitable mortgage already created by him in favor of the Bank;

2) Provided the Mortgagor repays the Facility, in terms of the Agreement, and strictly adheres to the terms and conditions of the Agreement, the Bank shall be bound to release the Mortgaged Agreement, the Bank shall be bound to release the Mortgaged Property to the Mortgagor. All costs and expenses incurred in such release shall be borne exclusively by the Mortgagor.

3) So long as any moneys under the Agreement shall remain unpaid, the Mortgagor shall:

i) keep the Mortgaged Property insured with a financially sound and reputable insurance company, approved by the Bank, against loss or damage in such manner and to the extent specified by the Bank;
ii) name the Bank as beneficiary of the Mortgagor’s insurance policies, and

iii) pay the premium regularly as and when the same shall become due and shall deposit such policies and the receipt for payment of premium, with the Bank.

4) The entries in the books of the Bank and vouchers and receipts in the custody of the Bank evidencing the liabilities of the Mortgagor shall be conclusive proof as to the liability of the Mortgagor to the Bank under this Deed.

5) Notwithstanding anything to the contrary contained in this Deed, the legal mortgage hereby created shall be continuing security for the payment of all moneys including but not limited to the amounts of the Facility, along with mark-up, commission, liquidated damages, additional liquidated damages and all the costs, charges, commission, fees, cost and expenses thereon or connected therewith and any other amount which may become payable by the Mortgagor to the Bank pursuant to any agreement or undertaking thereafter.

6) The Mortgagor shall bear all expenses, charges, costs, etc incidental to the preparation of this Deed, including but not limited to stamp duty and registration fee.

7) The Mortgagor hereby covenants with the Bank that he shall not demolish (wholly or partially), pull down and/or remove any part of the building, erection or fixtures or dispose of in any manner, the Mortgaged Property or part thereof becoming worn out or damaged, the Mortgagor may do so only after obtaining the approval in writing from the Bank.

8) The Mortgagor agrees that all sums of moneys awarded as compensation for a compulsory acquisition of any portion of the Property by any governmental, municipal or any semi governmental or provide body, shall be recievable by the Bank directly on behalf of the Mortgagor and that such moneys shall be applied by the Bank in or towards the payment of the Facility along with mark-up, commission, liquidated damages, additional liquidated damages and all the other costs, charges, commission, fees, costs and expenses thereon or connected therewith.

IN WITNESS WHEREOF the Mortgagor above named has executed this Deed of Mortgage on the day, month and year first above written.

___________________

THE MORTGAGOR

WITNESSES:

SCHEDULE DESCRIBING THE PROPERTY

All that piece and parcel of land measuring 1 Kanal, 18 Marlas, comprising Khasra No. 137 (2K 15M) to the extent of 3/55(3M) to the extent of 6/45 (6M), 133 (8K) to the extent of 23/160 (1K 3M), 136 (8K) to the extent of 6/160 (6M), Khewat No. 62, Khatouni No. 142, 139, 140, 141 situated at Thatta Khurd, Tehsil Cantt, District Lahore pertaining to Jamabandi for the year 1993-94 as per Fard Milkayat compiled by Halqa Patwari as per Mutation No. 755/756 bounded as under:

East: 2 Sheds

West: Plot owned by Bashir Muhammad, Sher Muhammad, etc

South: Area of Sellers

North: Sewage Canal

_________________

THE MORTGAGOR