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SECURITY ON
POLICY OF

AXCE AND

EST.

due during the life of him the said A. B. from or in respect COLLATERAL of the said sum of £— [a sum on mortgage], and the said sum of £--, 31. per cent. Consolidated Bank An- LIFE-ASSURnuities, and the said sum of £— like annuities, or from LIFE-INTERor 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 herein before 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, Covenants by executors, and administrators, covenant with the said C. D. mortgagor for

payment of the and E. F., their executors, administrators, and assigns, that premiums, &c., he the said A. B. shall and will, during the continuance of

sf on the policy. 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

(d) 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 charging equit

able interests. 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 a legal life estate in land, or other property, must be dealt with in the ordinary way by actual conveyance, with a proviso for redemption.

SECURITY ON

LIFE-ASSUR-
ANCE AND

EST.

COLLATERAL same respectively must be paid, in order to keep the said POLICY of policy on foot, and shall and will forthwith deliver the

receipt for every such payment to the said C. D. and LIFE-INTER- E. F., or the survivor of them, or the executors or admin

istrators of such survivor, their or his assigns : And shall ...and 10 do no- not nor will at any time hereafter do, commit, or suffer any thing to vitiate the policy. 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 —and that on be assured, or any part thereof: And that it shall be neglect by

lawful for the said C. D. and E. F., or the survivor of mortgagor mortgagees them, or the executors or administrators of such survivor, may pay premiuins, &c.

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 and effect the said policy of assurance; and in case the said policy shall new policies if at any time be vitiated or rendered void or voidable, then need be.

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 here

inbefore mentioned to have been effected, and the monies —and that

to become payable under or by virtue of the same): AND mortgagor will that the said A. B., his executors or administrators, shall repay mortgaall advances 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 with interest.

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

an

en ses

SECURITY ON

POLICY OP LIFE. ASSUR

ANCE AND LIFE-INTER

EST.

£- , or any such other premium or premiums, sum or COLLATERAL sums of money, or expenses as aforesaid, with interest for the same after the rate of £– per cent. per annum, from the time or respective times of the same having been advanced or paid : AND THAT in the meantime, and until _ such sum or sums of money shall be so paid with interest —and that till

payınent the 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 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,

y right to charge. 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 the other person or persons whosoever having or lawfully

nior

her assurance.

(e) 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.

be comprised

in the principal 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 sumn 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.

SECURITY ON

POLICY OF

ANCE AND

EST.

COLLATERAL or equitably claiming, or who shall or may have or law

fully or equitably claim, any estate, right, title, or interest, Life-ASSURE of in or to the end

of, in, or to the said policy of assurance, sums of money, Life-Inter. 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 reasonab.y

devised or advised and required. [Power to C. D. and Mortgagee's E. F., and the survivor of them, and the executors or adreceipt clause. ministrators of such survivor, their or his assigns, to give Indemnity

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

of relation thereunto: PROVIDED ALWAYS, and it is hereby the ultimate agreed and declared between and by the parties to these

clause.

Limi

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 Life-intereven date herewith, shall not exceed the sum of £— (f). In Witness &c.

amount to be

COLLATERAL SECURITY ON

POLICY OY LIFE-ASSURANCE AND

EST.

secured.

LXVIII.

COLLATERAL SECURITY COVENANT TO

COLLATERAL SECURITY(a), by a Charge

on the Equity of Redemption, of a Fee- .
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.

citals.

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 reseised or entitled (subject to the mortgages thereof herein.“ after mentioned) of or to the piece of land and hereditaments 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 mortgages 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 £„

dre

, it was a
was collateral secu-

rity.

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nent for

(1) As to this proviso, see supra, p. 523, n. (1).
(a) See the observations on collateral securities, supra, p. 617, n. (a).

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