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POLICY OP AS-
SURANCE.

—and for fur-
ther assurance.

Mortgagee's receipts to be good discharges.

ministrators, and assigns, in manner aforesaid, according to the true intent and meaning of these presents, free from all incumbrances: And That he the said A. B., his executors and administrators, and all and every other person or persons whosoever having or lawfully or equitably claiming, or who shall or may have or lawfully or equitably claim, any estate, right, title, or interest, of, in, or to the said policy of assurance and premises hereinbefore assigned, or expressed and intended so to be, or any of them, or any part or parts thereof, shall and will from time to time and at all times hereafter, until the whole of the principal monies and interest intended to be hereby secured shall have been paid, upon the request of the said C. D., his executors, administrators, or assigns, but at the costs and charges of the said A. B., his executors or administrators, make, do, and execute, or cause to be made, done, and executed, all and every such further and other lawful acts, deeds, matters, and things, assignments and assurances in the law whatsoever, for enabling the said C. D., his executors, administrators, or assigns, to recover and receive all and every the sum and sums of money to become payable under or by virtue of the aforesaid policy or policies of assurance or any of them, and for the further, better, and more effectually assigning the said policy and premises hereinbefore assigned, or expressed and intended so to be, unto the said C. D., his executors, administrators, and assigns, in manner aforesaid, and according to the true intent and meaning of these presents, as by the said C. D., his executors, administrators, or assigns, or his or their counsel in the law, shall be reasonably devised or advised and required: Provided Always, and it is hereby agreed and declared between and by the parties to these presents, that the receipt or receipts in writing of the said C. D., his executors, administrators, or assigns, for any sum or sums of money which may become payable under or by virtue of the said policy or policies of assurance or otherwise under or by virtue of these presents, or in the execution of the trusts hereof, shall be a sufficient and effectual discharge or sufficient and effectual discharges for the same respectively, or so much thereof respectively as in such receipt or receipts shall be expressed or acknowledged to be received, and that the said assurance society, or the Policy Of As COLLATERAL SECURITY ON

person or persons to whom the same shall be given, his, her, L_

or their executors, administrators, or assigns, shall not after-
wards be answerable or accountable for any loss, misappli-
cation or nonapplication, or be in anywise obliged or con-
cerned to see to the application of the money therein men-
tioned and acknowledged to be received: An D IT IS herEby —mortgagee
further agreed and declared that the said C. D., his execu- "ot.to b,e liable

~ . for involuntary

tors, administrators, or assigns, or any of them, shall not be losses,
answerable or accountable for any involuntary losses which
may happen in or about the execution of any of the trusts
of these presents or in relation thereunto: Provided proviso as to
Always, and it is hereby agreed and declared between and "Jtimately re
by the parties to these presents, that the total amount of the coverable.
money hereby secured or to be ultimately recoverable here-
upon, shall not exceed the sum of £ (d). In Wit-
Ness, &c

LXVII.

COLLATERAL SECURITY by Mortgage Collateral

of a Policy of Assurance on the Life of * Po'^vcvof''

the Moftgagor, and by a Further Charge Lifeassur

O/i the Life-interest of the Mortgagor in Life-inter

certain Fundi (a). E»T'

THIS INDENTURE, made &c, Between A. B., of Parties. &c, [mortgagor], of the one part; and C. D., of &c, and

(d) As to this proviso, see supra, p. 523, n. (/).

lateral secur-
ities byseparate

(a) The usual reason for preparing collateral securities by separate Propriety of deeds, is the desire to avoid mixing up two estates in one deed. In the preparing col case in the text, for example, the fee-simple estate, which forms the principal security, has a title clear and unincumbered; but if all the deeds!' details connected with the collateral security were thrown into the principal deed, they would need a thorough examination on all subsequent investigations of title, in order to see that they did not prejudice or affect the title to the estate comprised in the principal deed. By the plan,

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POLICY OF LIFE-ASSl RANCE AND LIFE-INTEREST.

Narrative recitals.

Recital of the principal security.

E. F., of &c, [mortgagees], of the other part: [Recitals showing that the mortgagee is entitled to a life-interest in the annual produce of certain funds, subject to divers charges already subsisting thereon, and as to the produce of one fund to an annuity to I. S. for his life:"] And Whereas, by an indenture of appointment and release, bearing even date with, but executed before the execution of these presents, and grounded so far as the same operates as a release on a lease for a year, and made, or expressed to be made between the said A. B. of the first part, the said C. D. and E. F. of the second part, and G. H. of the third part, the

said A. B., in consideration of the sum of £ paid and

advanced to him by the said C. D. and E. F. out of monies belonging to them on a joint account, and in exercise of the power to him the said A. B. for that purpose given by an indenture therein mentioned, hath directed, limited, and appointed, that tlic pieces or parcels of land and hereditaments thereinafter particularly mentioned, and intended to be thereby released, shall henceforth go, remain, and be to the use of the said C. 1). and E. F., their heirs and assigns, subject to the proviso thereinafter contained, and hereinafter mentioned, for redemption of the said premises; And by the said indenture now in recital, for the considerations aforesaid, the said A. B. hath granted, released, and confirmed unto the said C. D. and E. F., their heirs and assigns, divers pieces or parcels of land and hereditaments,

Precedent" may be made useful for a primary security.

however, which is adopted in the text, the two estates are kept clear of each other's titles, and may nt all future times he dealt with independently of each other. When the mortgage is paid ofT, of course separate reconveyances or releases must he prepared.

It is obvious that the form in the text may be very readily adapted to the case of a primary security on a life-interest and a policy of assurance, by adapting the recitals to such a deed, and adding a covenant for payment of the principal and interest. In that case it would be desirable to add a power of sale, although in the precedent in the text that was considered unnecessary on account of the prior incumbrancers having powers of sale, which it was apprehended would, under the circumstances, be available for the present mortgagee. Of course, the power of sale, if added, would be so framed as to include both the life-interest and the policy. The form given supra p. 606, will he very nearly in the required shape.

therein particularly mentioned, with the appurtenances, to hold the same unto and to the use of the said C. D. and E. F., the'r heirs and assigns, subject to the proviso thereinafter contained and hereinafter mentioned for redemption of the said premises; An D in the said indenture now in recital is contained a proviso for redemption of the said premises upon payment by the said A. B., his heirs, executors, administrators, or assigns, unto the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his assigns, of the sum of

£ , on the day therein mentioned for payment thereof,

together with interest for the same after the rate of £— per cent, per annum, on the days and in manner therein appointed for payment thereof; And in the said indenture now in recital is contained a covenant by the said A. B. with the said C. D. and E. F., their executors, administrators, and assigns, for payment of the said sum of £

and interest: And Whereas, upon the treaty for the advance of the said sum of £ —-, it was agreed that the repayment of the same with interest after the rate aforesaid, should be further secured by a policy of assurance for

the sum of £ , to be effected on the life of the said

A. B., in the names of the said C. D. and E. F., upon and for the trusts, intents, and purposes hereinafter declared and contained of and concerning the same, and that the said A. B. should enter into such covenants respecting the said policy of assurance as are hereinafter contained: And Whereas, upon the treaty for the advance of the said sum

of £ , it was also agreed that the repayment of the

same, with interest after the rate aforesaid, should be further secured by such further charge as is hereinafter contained: And Whireas, in pursuance of the said agreement in this behalf, the said A. B. has effected an assurance on his life

for the sum of £ , by a policy of assuranee in the names

of the said C. D. and E. F. (/;), in the Assurance

Office, bearing date the day of , numbered ,

COLLATERAL SECURITY ON

POLICY OF LIFE-ASSURANCE AND LIFE-INTEREST.

—of agreement that loan should be further secured by a policy on the life of the borrower.

—and by further charge on his life interest,

—that policy has been effected.

and under the annual premium of £

NOW THIS

(6) The policy, if effected for the occasion, should always he in the name of the mortgagee. (See supra' pp. 90, PI, and 3'>7, n. («).

COLLATERAL

SECURITY ON
POLICY OF

LIFE-ASSUR-
ANCE AND

LIFK-INTKR-
K.ST.

Witnesseth,
Declaration of
trusts of the
policy of assur-

Witnetaeth, Further charge on the life interest of the mortgagor.

INDENTURE WITNESSETH, that, in pursuance of the said agreement in this behalf, and in consideration of

the said sum of £ so paid and advanced to the said

A. B. by the said C. D. and E. F. as aforesaid, it is hereby agreed and declared that the said C. D. and E. F., their executors, administrators, and assigns, shall stand possessed of and interested in the said policy of assurance, and all and singular the monies to become pavable under or by virtue of the same, upon trust that they the said C. D. and E. F., and the survivor of them, and the executors or administrators of such survivor, their or his assigns, do and shall enforce payment of and receive all and singular the monies to become payable under or by virtue of the said policy as and when the same shall become pa}'able, and do and shall in the first place by and out of the same monies reimburse themselves or himself, or pay or discharge all the costs and expenses attending the obtaining payment of and receiving the said monies, or which shall be incurred in or about the execution of the trusts of these presents or in relation thereto, and do and shall in the next place apply such monies in or towards satisfaction of all and singular the monies which for the time being shall be due or owing on the security of these presents, or of the said indenture of even date herewith, and do and shall pay the surplus, if any, of the said monies to be received under or by virtue of the said policy of assurance, unto the said A. B., his executors, administrators, or assigns, for his and their own use (c): AND THIS INDENTURE ALSO WITNESSETH, that, in further pursuance of the said agreements and for the considerations aforesaid, the said A. B. doth hereby for himself, his heirs, executors, and administrators, covenant with the said C. D. andE. F., their executors, administrators, and assigns, that all and singular the interest, dividends, and annual proceeds to arise or accrue

(c) As to mortgages of policies of assurance, see supra, p. 610, n. (a), p. 615, n. (c). If a power of sale be added, the trusts declared of the monies to become payable under the policy should be included in those declared of the purchase-money at a sale in the manner pointed out in the note referred to.

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