Appendix 5 Sample Mortgage by Charge

• Pages: 280-290

THIS DEED OF CHARGE by way of Legal Mortgage is made the______day

of______2005.

BETWEEN______AB______of______in the parish of______in Barbados (here-

inafter called “the Mortgagor”) of the ONE PART and XYZ Ltd, having its regis-

tered oce at______which has been licensed in accordance with the provisions of

the Financial Institutions Act 1996-16 of the Laws of Barbados (hereinafter called

“the Mortgagee”) of the OTHER PART.

WHEREAS the Mortgagor is the estate owner of the fee simple absolute in posses-

sion in the property described in the First Schedule hereto subject only as is stipu-

lated in the Second Schedule hereto but otherwise free from incumbrances.

AND WHEREAS the Mortgagor is entitled to the Policy of Assurance the particu-

lars of which are set out in the Third Schedule hereto.

AND WHEREAS the Mortgagor intends to construct a dwelling house on the

property described in the First Schedule hereto (hereinafter called “the building

works”) in accordance with the drawings and specifications which have been lodged

with and approved by the Mortgagee.

AND WHEREAS the mortgagor has obtained all necessary planning approval and

the other consents in respect of the building works.

AND WHEREAS the Mortgagor has applied to the Mortgagee for a loan

of______for the purpose of refinancing an existing land loan and providing funds

to assist with the construction of a house at______as described in the First Sched-

ule hereto which the Mortgagee has consented to make upon having the repay-

ment thereof secured in manner hereinafter appearing and upon the terms and

conditions herein contained and hereunder implied.

NOW THIS DEED WITNESSETH as follows:

1. In this mortgage:

“Appropriate rate” means the sum of______per centum per annum calculated

on the basis of annual rests or such increased or reduced rate of interest as may

from time to time be in force under a variation notice given by the Mortgagee to the

Mortgagor as hereinafter provided;

“Building” shall include boundary walls gates and fences;

“Principal sum” means the moneys lent and advanced by the Mortgagee to the

Mortgagor and secured by this mortgage;

“Policies of Assurance” where the context so admits and/or requires means

and/or includes the Policy or Policies of Life Assurance the particulars of which are

set out in the Second Schedule hereto and/or any policy or policies substituted for

the same as hereinafter provided;

“Variation notice” means a notice given as herein provided to vary the rate of

interest payable;

The masculine gender includes the feminine and the singular includes the plural

and vice versa;

APPENDIX 5

SAMPLE MORTGAGE BY CHARGE