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POLICY OF A8- ministrators, and assigns, in manner aforesaid, according to
- the true intent and meaning of these presents, free from all --and for fur- incumbrances: AND THAT he the said A. B., his executors ther assurance.
and administrators, and all and every other person or persons whosoever having or lawfully or equịtably 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 Mortgagee's advised and required : PROVIDED ALWAYS, and it is hereby receipts to be
agreed and declared between and by the parties to these good discharges. 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 Asperson or persons to whom the same shall be given, his, her, or their executors, administrators, or assigns, shall not afterwards be answerable or accountable for any loss, misapplication or nonapplication, or be in anywise obliged or concerned to see to the application of the money therein mentioned and acknowledged to be received: AND IT IS HEREBY --mortgagee further agreed and declared that the said C. D., his execu- not
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 a by the parties to these presents, that the total amount of the coverable. money hereby secured or to be ultimately recoverable hereupon, shall not exceed the sum of £ (d). IN WITNESS, &c.
COLLATERAL SECURITY by MORTGAGE COLLATERAL
of a Policy of Assurance on the Life of POLICY op the Mortgayor, and by a FURTHER Charge LIPE-ASSURon the LIFE-INTEREST of the Mortgagor in LIFE-INTER
certain Funds (a). 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. (1).
(a) The usual reason for preparing collateral securities by separate Propriety of deeds, is the desire to avoid inixing up two estates in one deed. In the preparing colcase in the text, for example, the fee-simple estate, which forms the
mole estate which forme the lateral secur.
ities by separate 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,
COLLATERAL SECURITY ON
ANCE AND LIFE-INTER
E. F., of &c., (mortgagees], of the other part: (Recitals POLICY or showing that the mortgagee is entitled to a life-interest in
- Assur- the annual produce of certain funds, subject to divers LIFE-INTER- charges already subsisting thereon, and as to the produce of
one fund to an annuity to 1. S. for his life:] AND WHEREAS, Narrative re. by an indenture of appointment and release, bearing even citals. Recital of the
date with, but executed before the execution of these preprincipal se sents, and grounded so far as the same operates as a release curity.
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 the 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. D. 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,
however, which is adopted in the text, the two estates are kept clear of each other's titles, and may at all future times be dealt with independently of each other. When the mortgage is paid off, of course separate
reconveyances or releases must be prepared. Precedent'may It is obvious that the form in the text may be very readily adapted to be made useful the case of a primary security on a life-interest and a policy of assurfor a primary security.
ance, 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 be very nearly in the required shape.
POLICY OF LIFE-ASSURANCE AND
therein particularly mentioned, with the appurtenances, to COLLATERAL 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 redemp- LIFE-INTERtion of the said premises; And 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 -of agreement
that loan should advance of the said sum of £ —, it was agreed that the bestu repayment of the same with interest after the rate afore- cured by a po
licy on the life said, should be further secured by a policy of assurance for of ihe borrower. 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 -- and by sur
ther charge on WHEREAS, upon the treaty for the advance of the said sum his life interest. 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 whereas, in pursuance of the said agreement in this —that policy
1:. has been efbehalf, the said A. B. has effected an assurance on his life se for the sum of £ , by a policy of assuranee in the names of the said C. D. and E. F. (6), in the — Assurance Office, bearing date the —— day of , numbered —, and under the annual premium of £- : NOW THIS
(6) The policy, if effected for the occasion, should always be in the name of the mortgagec. (See supra, pp. 90, 91, and 367, n. (a).
COLLATERAL INDENTURE WITNESSETH, that, in pursuance of
POLICY Of the said agreement in this behalf, and in consideration of LIFE-ASSUR- the said sum of £-- so paid and advanced to the said LIFE-INTER. 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 Witnesseth, executors, administrators, and assigns, shall stand possessed Declaration of trusts of the of and interested in the said policy of assurance, and all policy of assur- 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 payable, 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 exe
cutors, administrators, or assigns, for his and their own Witnesseth, use (c): AND THIS INDENTURE ALSO WITFurther charge NESSETH, that, in further pursuance of the said agreeon the life in terest of the ments and for the considerations aforesaid, the said A. B. mortgagor.
doth hereby for himself, his heirs, executors, and administrators, covenant with the said C. D. and E. 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.