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Declaration in Support of Equitable Mortgage

The document is a declaration in support of creating an equitable mortgage over immovable property owned by ABC Limited in favor of a bank. It summarizes that: ABC Limited owns the property described in Schedule 1; the bank has provided various credit facilities to ABC Limited totaling Rs. [amount]; one condition to provide the facilities was for ABC Limited to create an equitable mortgage over the property by depositing the title deeds with the bank; and the director of ABC Limited declares depositing the title deeds listed in Schedule 2 with the intent to create this equitable mortgage as security for repayment of amounts owed to the bank.

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99 views

Declaration in Support of Equitable Mortgage

The document is a declaration in support of creating an equitable mortgage over immovable property owned by ABC Limited in favor of a bank. It summarizes that: ABC Limited owns the property described in Schedule 1; the bank has provided various credit facilities to ABC Limited totaling Rs. [amount]; one condition to provide the facilities was for ABC Limited to create an equitable mortgage over the property by depositing the title deeds with the bank; and the director of ABC Limited declares depositing the title deeds listed in Schedule 2 with the intent to create this equitable mortgage as security for repayment of amounts owed to the bank.

Uploaded by

vijhay_adsule
Copyright
© © All Rights Reserved
Available Formats
Download as RTF, PDF, TXT or read online on Scribd
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Declaration in Support of Equitable

Mortgage
IN THE MATTER OF MORTGAGE BY DEPOSIT OF
TITLE DEEDS IN RESPECT OF IMMOVABLE PROPERTY
M/S. A B C Limited
TO
__________________________________
I, __________________________, Indian Inhabitant, at present residing at
______________________________ do hereby solemnly declare and state as
follows:
1.

I am the Director of M/S. ABC Limited, a Company within the meaning of


the
Companies
Act
1956
having
its
registered
office
at
___________________________________________________
(hereinafter called the Borrower) and duly authorised by the Board of
Directors of the Borrower to make this declaration for and on behalf of the
Borrower.

2.

The Borrower is the Owner of and well and sufficiently seized and possessed
of the immovable property described in the First Schedule hereunder
written (hereinafter referred to as the said immovable property).

3.

In terms of the loan documents, the ___________________ (hereinafter


called the Bank) has allowed the Borrower various credit facilities by
granting all or some or any of the credit facilities by way of Overdraft,
Demand Loans, Loans, Cash Credits, Term Loans, pre-shipment and postshipment credits, opening of letters of credit, issuing of guarantees,
Negotiation and discounting of bills and cheques, inland as well as foreign
and such other facilities as from time to time required by the Borrower for
amounts not exceeding the principal sum of Rs. ________________/(Rupees _____________________________ only) on the terms and
conditions specified therein.

4.

One of the conditions of the grant of the aforesaid credit facilities is that the
repayment
of
the
said
principal
sum
of
Rs. ____________________/- (Rupees ________________only) and all
accruing interest, discount, commission, charges and all kind of costs and
expenses payable to or incurred by the Bank in relation thereto alongwith all
other further dues, cost, expenses etc. shall stand secured by creation of
equitable mortgage of the said immovable property in favour of the Bank.

5.

By its Board Resolution passed at its meeting held on _________ day of


__________200____, by the Board of Directors of the Borrower, Shri
______________________, the Director of the Borrower company,s is
authorised to create the said security by way of equitable mortgage of the
said immovable property and to deposit the said title deeds with the Bank.

6.

The Borrower has accordingly with intent to carry out its said obligation and

to creating the said security of the said immoveable property described in


the First Schedule hereunder written deposited with the Bank the said title
deeds more particularly described in the Second Schedule hereunder
written with the intention that the said property would remain as security
for such repayment.
7.

That the said deposit of the title deeds by the said Shri
_____________________________ was made on behalf of the Borrower
with intent to create a mortgage by deposit of title deeds of the said
premises in favour of the Bank as security to secure repayment of all
monies including interest, costs, charges and expenses due or becoming
due and payable by the Borrower to the Bank under or in respect of all or
some or any of the facilities either in Indian or foreign currencies granted
and/or agreed to be granted to the Borrower and for any other
indebtedness and liabilities, past, present and future of the Borrower to the
Bank.

8.

That the documents of title now deposited with the Bank were the only
documents of title in possession of the Borrower in respect of the said
premises of the Borrower and that the Borrower is the absolute owner of
the said property and that the Borrower has marketable title thereto.

9.

That there is no mortgage, charge, lien or any other encumbrance or


attachment on the said immovable property or any part thereof by any
Government or local authority or by Income Tax Department and that no
notice has been issued and/or served on the Borrower under the Rules 2, 16
or 51 or any other Rules of the Second Schedule to the Income Tax Act,
1961, or under any other law.

10. That the Borrower has not entered into any agreement for sale, transfer or
alienation thereof or any part or parts thereof and that no encumbrance
hereafter will be created by the Borrower except with the express prior
permission in writing of the Bank so long as the Borrower continues to be
indebted to or remain liable to the Bank on any account.
11. Shri _______________________ on behalf of the Borrower also
acknowledges that the maximum amount intended to be secured by the
said mortgage created as aforesaid was for the purpose of Section 79 of the
Transfer of Property Act, 1882 and for no other purpose and without
affecting the Borrowers full liability to the Bank under the said mortgage for
all subsisting liabilities together with interest and all costs, charges and
expenses thereof.
12. That the Borrower has passed the requisite Resolution under Section 293(1)
(9) of the Companies Act, 1956 for creating security in favour of the Bank
as aforesaid.
13. The Borrower has duly paid all rents, royalties and all public demands,
including Provident Fund dues, gratuity dues, Employees State Insurance
dues, income tax, sales tax, corporation tax and all other taxes and
revenues payable to the Government of India or to the Government of any
State or to any local authority and that at present there are no arrears of
such dues, rents, royalities, taxes and revenues due and outstanding and
that no attachments or warrants have been served on the Company in
respect of Sales Tax, Income Tax, Government revenues and other taxes.
14. That the said loans borrowed/to be borrowed by the Borrower are within the

borrowing limits of the powers of Board of Directors of the Borrower.


15. That I am not aware of any act, deed, matter or thing or circumstances
which prevents the Borrower from charging the said immovable property in
favour of the Bank.
16. That I have made the aforesaid declaration for and on behalf of the
Borrower solemnly and sincerely believing the same to be true and
knowing fully well that on the faith thereof the Bank has agreed to complete
the said transaction of mortgage by deposit of title deeds in respect of the
said immovable property.
THE FIRST SCHEDULE ABOVE REFERRED TO:
(Description of the immovable property)
THE SECOND SCHEDULE ABOVE REFERRED TO:
(List of Title Deeds)
Solemnly affirmed at ___________
On this

day of
Before me;
NOTARY

200___

)
)

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