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due during the life of him the said A. B. from or in respect

of the said sum of £ , [a sum on mortgage], and the

said sum of £ 3/. per cent. Consolidated Bank Annuities, and the said sum of £ like annuities, or from

or in respect of any stocks, funds, or securities, in or upon

which the same sum of £ , or the monies arising from

the sale of the said sums of 31. per cent. Consolidated Bank Annuities, or either of them, or any part thereof respectively, may be invested, shall (but subject and without prejudice to the said hereinbefore recited securities, so far as the same respectively comprise or affect the said last-mentioned premises or any of them, and subject also, as to the dividends and annual produce of the said sum

of £ 31. per cent. Consolidated Bank Annuities, or the

stocks, funds, or securities in or upon which the monies arising from the sale thereof, or of any part thereof, may

be invested, to the said annuity of £ . to the said I. S.)

be and remain as a further security to the said C. D. and E. F., their executors, administrators, and assigns, for and be charged and chargeable with, the payment of the said sum of £ , and interest after the rate aforesaid, according to the proviso and covenant for payment thereof in the said indenture of even date herewith contained (d): And The Said A. B. doth hereby for himself, his heirs, executors, and administrators, covenant with the said C. D. and E. F., their executors, administrators, and assigns, that he the said A. B. shall and will, during the continuance of this present security, from time to time duly and punctually

pay, or cause to be paid, the said annual premium of £ ,

and such other sum or sums of money (if any) as from time to time shall become payable for keeping on foot the said policy of assurance, and shall and will make such payments at least ten days before the last day on which the

COLLATERAL
SECURITY ON

Policy or

LIKE-ASSUR-
ANCE AND
LIFE-INTER-
EST.

Covenants by mortgagor for payment of the premiums, &c, on the policy.

(</) As the interest on which the security is intended to be made, is Manner of merely equitable, a charge by way of covenant is quite as effectual as a ^"^iuV1"'' formal assignment of the interest and a proviso for redemption. This would have been the case in the present instance, even if there had been no prior charges; but of course n legal life estate in land, or other property, must be dealt with in the ordinary way by actual conveyance, with a proviso for redemption.

COLLATERAL

SECURITY ON
POLICY OF

LIFE-ASSUR-
ANCE AND

l.lFE-IflTER-
I ST.

•—and to do nothing to vitiate the policy.

—and that on neglect by mortgagor mortgagees may pay premiums, &c.

—and effect new policies if need be.

—and that mortgagor will repay mortgagee all advances and expenses with interest

same respectively must be paid, in order to keep the said policy on foot, and shall and will forthwith deliver the receipt for every such payment to the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his assigns: And shall not nor will at any time hereafter do, commit, or suffer any act or thing whereby the said policy may be vitiated or become void or voidable, or the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his assigns, may be prevented or hindered from recovering or receiving the money thereby intended to be assured, or any part thereof: And That it shall be lawful for the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his assigns, in case the said A. B. shall neglect or refuse to make such payments as aforesaid, or any of them, at any time or times to pay the said annual premium of

£ , and such other sum or sums of money (if any) as

from time to time shall become payable for keeping on foot the said policy of assurance; and in case the said policy shall at any time be vitiated or rendered void or voidable, then to effect a new policy or policies of assurance on the life of the said A. B. in any sum or sums not exceeding the sum

of £ , and to pay all expenses of effecting such policy

or policies, and the annual premium or premiums, or other sum or sums of money, (if any), which shall from time to time become payable for keeping on foot the same, (such new policy or policies, and the monies to become payable under or by virtue of the same respectively, to be held and applied upon and for the trusts, intents, and purposes hereinbefore declared of and concerning the said policy hereinbefore mentioned to have been effected, and the monies to become payable under or by virtue of the same): And That the said A. B., his executors or administrators, shall and will from time to time, on demand, pay or cause to be paid 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, all and every such sum and sums of money as shall have been paid or advanced by them or him in or towards payment of the said annual premium of £ , or any such other premium or premiums, sum or Collateral

e' - . . . - SECURITY ON

sums 01 money, or expenses as aforesaid, with interest lor poi.icy Of the same after the rate of £— per cent, per annum, LlrR *»>UK

ANCE AND

from the time or respective times of the same having been Mfe-interadvanced or paid: And That in the meantime, and until EST" such sum or sums of money shall be so paid with interest —an<) «»»t till as aforesaid, all and singular the monies to become payable same shall be under or by virtue of the said policy of assurance hereinbe- a charge on the

i '* r J mortgaged pre

fore mentioned to have been effected, or under or by virtue mises.
of the policy or policies to be effected in pursuance of the
aforesaid covenant in that behalf, and all and singular the
premises hereinbefore charged, or expressed and intended
so to be, shall stand and be charged with the payment as
well of such sum or sums of money and the interest thereof,

as of the said sum of £ and interest (e): And The Covenants by

Said A. B. doth hereby for himself, his heirs, executors,

and administrators, further covenant with the said C. D.

and E. F., their executors, administrators, and assigns, that

he the said A. B. now hath in himself good right, full

power, and lawful and absolute authority to charge the

premises hereinbefore charged, or expressed and intended

so to be, in manner aforesaid, according to the true intent

and meaning of these presents: And That he the said —and for fur

A. B., his executors and administrators, and all and every a"sur!llice'

other person or persons whosoever having or lawfully

(<,) In securities of this nature, the policy of assurance may be com- Whether the prised either in the principal or the collateral deed. The advantage of its policy should being comprised in the collateral deed is, that when the principal estate tn)rjn^j''11' is sold, the mortgage-deed can be given up to the purchaser without in- or collateral convenience as regards any further dealings with the policy. In the case deed, of the precedent in the text it was intended that the principal estate should be forthwith sold, and that the residue subsequently remaining unpaid of the debt should continue to rest on the collateral security. It was, therefore, obviously desirable, that the policy of assurance should be kept separate from the estate to be sold. But there are disadvantages connected with this arrangement, for a higher stamp-duty must be paid on the amount fixed as a security for the premiums, if it be a separate sum in a separate deed, than if it merely form an addition to the principal sum, and for this amount the mortgagee merely gets the collateral, and not both the principal and collateral security. Hence, it is more usual to include the policy in the principal deed.

t

COLLATERAL
SECURITY ON

POLICY OF
L'FE-ASSUR-

AKCE AND LIFE-INTEREST.

Mortgagee's receipt clause.

Indemnity clause.

Limitation of the ultimate

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, sums of money, and premises, the trusts whereof are hereinbefore declared, or any of them, or any part or parts thereof, or of, in, or to the said premises hereinbefore charged, or expressed and intended so to be, as aforesaid, 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 repaid, upon the request of the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his 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. and E. F., and the survivor of them, and the executors and administrators of such survivor, their or his 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 charging the said premises hereinbefore charged, or expressed and intended so to be, subject as hereinbefore is mentioned, and according to the true intent and meaning of these presents, as by the said C. D. and E. F., or the survivor of them, or the executors or administrators of such survivor, their or his assigns, or their or his counsel in the law, shall be reasonably devised or advised and required. [Power to C. D. and E. F., and the survivor of them, and the executors or administrators of such survivor, their or his assigns, to give effectual receipts, supra, p. 616]: And It Is Hereby further agreed and declared, that the said C. D. and E. F., or either of them, their or either of their executors, administrators, or assigns, shall not be 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 Always, and it is hereby agreed and declared between and by the parties to these presents, that the total amount of the money hereby secured or to be ultimately recoverable thereupon, over and above

the said sum of £ and interest, in respect of which a

stamp of £ has been affixed to the said indenture of

even date herewith, shall not exceed the sum of £ (/).

In Witness &c

COLLATFRAL SECURITY ON

POLICY OF LIFE-ASSURANCE AND LIFE-INTEREST.

amount to be secured.

LXV1II.

COLLATERAL SECURITY(o), by a Charge Collateral
on the Equity Of Redemption, of a Fee~ C'venanvm
simple Estate and of a Life Estate, and of other Insure Life.
Premises. Covenant by the Mortgagor (if
required) to effect and keep on foot an Assur-
Ance on his Life.

THIS INDENTURE, made &c, Between A. B., of Parties.
&c, [mortgagor], of the one part; and C. D., of &c,
[mortgagee], of the other part: [Recites that "A. B. is Narrative re-
seised or entitled (subject to the mortgages thereof herein- *'
after mentioned) of or to the piece of land and here-
ditaments firstly hereinafter particularly mentioned, and
intended to be hereby charged, for an estate of inheritance
in fee-simple;" [Recitals, shewing that A. B. is entitled for
his life, and for an ultimate estate in fee, to an equity of
redemption of " the manor, messuages, farms, and lands
secondly hereinafter particularly mentioned and intended to
be hereby charged,"—recital of several charges and mart-
gages upon the estate of A. B. in all these premises, and
upon several policies of assurance on his life, the mortgagees
having powers of sale;recital of the principal security,
bearing even date, supra, p. 618]: And Whereas, upon Recital of
the treaty for the advance of the said sum of £ , it was "JX't"^^-

rity.

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

(a) See the observations on collateral securities, supra, p. 617, n,(a).

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