Charge By Way Of Legal Mortgage of Statutory Rights of Occupancy by One Borrower to One Lender; Loan of Fixed Amount Repayable Only On Default

Charge By Way Of Legal Mortgage of Statutory Rights of Occupancy by One Borrower to One Lender: Loan of Fixed Amount Repayable Only On Default

THIS LEGAL CHARGE is made the ......... day of 20.........
BETWEEN
(1 ) (name of borrower ) [of (address ) (or ) the registered office of which is at (address ) and the company registration number of which is (number )]] (`the Borrower )
and
(2 ) (name of lender ) [of (address ) (or ) the registered office of which is at (address ) and the company registration number of which is (number ) ] (`the Lender )
RECITALS
(1 ) [The Borrower is the estate owner absolute in possession in respect of the right of occupancy (or ) The Borrower is registered at The Lands Registry (State ) as proprietor with title [absolute (or as the case may be )] of the property described in the schedule to this deed [subject as mentioned in the schedule but otherwise] free from incumbrances.
(2 ) The Lender has agreed to lend ................... to the Borrower on condition that its repayment together with interest is secured in the manner set out below.
NOW THIS DEED WITNESSES as follows:
1. Definitions
In this legal charge:
1.1 `the Interest Payment Days means (state days for payment );
1.2 `the Interest Rate means [(for fixed rate ) ...... ) a year (or for variable rate ) ...... ) above the rate of (specify lending or base rate by which reference to which interest is to be calculated ) from time to time];
1.3 `the Principal means .........;
1.4 `the Property means the property specified in the schedule below and all buildings and fixtures2 on it.
2. Payment of principal and interest
In consideration of the Principal now paid by the Lender to the Borrower (receipt of which the Borrower acknowledges ) the Borrower covenants with the Lender as set out below.
2.1 Principal
The Borrower covenants with the Lender to pay the Principal to the Lender [free from any legal or equitable right of set-off]  immediately [on demand] if:
2.1.1 any interest or other sum payable under this security is not paid within (number ) days of becoming due; or
2.1.2 the Borrower or any surety fails to comply with any term, condition, covenant or provision of, or to perform any of his obligations or liabilities under, this or any associated or collateral security; or
2.1.3 any representation or warranty given by the Borrower or any surety to the Lender is or becomes incorrect; or
2.1.4 any judgment or order made against the Borrower or any surety by any court is not complied with within (number ) days; or
2.1.5 the property of the Borrower or any surety becomes subject to any forfeiture or execution, distress, sequestration or other form of process; or
2.1.6 a mortgagee takes possession of or exercises or seeks to exercise any power of sale or of an appointment of a receiver in relation to the property charged by this deed or any other property of the Borrower or of any surety; or
2.1.7 In the case of an individual:
(a ) the Borrower or any surety becomes subject to an interim order or makes a proposal for a voluntary arrangement under the Companies and Allied Matters Act 1990 or enters, or seeks to enter, into any other form of composition or arrangement with his creditors whether in whole or in part; or
(b ) a petition is presented for the bankruptcy of the Borrower or any surety; or
(c ) the Borrower or any surety dies or becomes of unsound mind; or
2.1.8 in the case of a company:
(a ) the Borrower or any surety ceases or threatens to cease to carry on, or disposes or threatens to dispose of, its business or a material part of its business; or
(b ) the Borrower or any surety makes a proposal for a voluntary arrangement under the Companies and Allied Matters Act 1990 or enters, or seeks to enter, into any other form of composition or arrangement with its creditors whether in whole or in part; or
(c ) a petition is presented for the making of an administration order in respect of the Borrower or any surety; or
(d ) an administrative receiver is appointed in respect of the whole or any part of the undertaking of the Borrower or any surety; or
(e ) a petition is presented in any court or a meeting is convened for the purpose of considering a resolution for the winding up of the Borrower or any surety (except in the case of a reconstruction or amalgamation that has the previous approval in writing of the Lender ).
Insert charging clause and remaining clauses as required:
IN WITNESS OF WHICH the parties have signed this deed the day and year first above written



_____________________________
Signed by or on behalf of the Borrower
_____________________________
in the presence of (witness ) ____________________________
Signed by or on behalf of the Lender
____________________________
in the presence of (witness ) Name ___________________ Name ___________________ Address ___________________
___________________
___________________ Address ___________________
__________________
___________________ Occupation ___________________ Occupation ___________________

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