Mortgage And Security Agreement Template for India

The Mortgage and Security Agreement is a crucial document in Indian secured lending transactions, used when a property owner (mortgagor) seeks to obtain financing by creating a security interest in their real estate assets in favor of a lender (mortgagee). This document is essential for both residential and commercial property financing, providing security for loans while ensuring compliance with Indian property and banking laws, including the Transfer of Property Act 1882, Registration Act 1908, and SARFAESI Act 2002. The agreement details the property specifications, loan terms, security arrangements, rights and obligations of parties, default provisions, and enforcement mechanisms, serving as a fundamental instrument in secured lending transactions within the Indian jurisdiction.

1. Parties: Identification of the mortgagor and mortgagee with complete details including registration/incorporation information for companies

2. Background: Context of the mortgage transaction, including reference to any underlying loan agreement

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Secured Obligations, Security Interest

4. Creation of Mortgage: Express creation of the mortgage and security interest over the Property

5. Property Details: Detailed description of the mortgaged property and confirmation of ownership

6. Loan Terms: Principal amount, interest rate, repayment terms, and payment mechanics

7. Security: Nature and extent of security interest, ranking, and any additional security

8. Representations and Warranties: Mortgagor's declarations regarding property ownership, absence of encumbrances, and authority to enter agreement

9. Covenants: Positive and negative obligations of the mortgagor regarding property maintenance, insurance, and restrictions

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Mortgagee's rights and remedies upon default, including power of sale

12. Expenses and Indemnity: Allocation of costs and indemnification obligations

13. Notices: Process and addresses for serving notices under the agreement

14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction of courts