day of

gagees subject to the proviso for redemption-see Pecedent V.]: Provided always, and it is hereby agreed and declared, that in case the said A. B, his executors, administrators, or assigns shall pay or cause to be paid unto the said mortgagees, their executors, administrators, or assigns on the next ensuing the said sum of £1000, together with interest for the same after the rate of £5 for £100 for a year from the day of the date of these presents, without any deduction or abatement whatsoever, then the said mortgagees, their executors, administrators, or assigns, shall and will upon the request and at the costs and charges of. the said A. B., his executors, administrators, or assigns, reassign the said policy and premises, if then subsisting, unto the said A. B., his executors, *administrators, or assigns, free from all encumbrances by the [*406] said mortgagees or any of them, their or any of their executors, administrators, or assigns; And the said A. B. doth hereby for himself, his heirs, executors, and administrators covenant with the said mortgagees, their executors and administrators in manner following, that he the said A. B., his executors and administrators shall and will pay unto the said mortgagees, their executors, administrators, or assigns the said sum of £1000 and interest at the time and in the manner aforesaid, and in case the same shall not be paid on the said day of shall and will thenceforth pay or cause to be paid unto the said mortgagees, their executors, administrators or assigns interest thereupon at the rate aforesaid, by equal half-yearly payments on the day of and on the day of in every year; and shall and will, during the continuance of this security, punctually pay the annual or other premiums and expenses for the time being payable in respect of the said policy and of every further or renewed policy to be effected pursuant to the covenants and provisions in that behalf hereinafter contained, and shall produce and deliver unto the said mortgagees, their executors, administrators, or assigns due vouchers for the payment of such premiums and expenses when and as the same shall have become due. And that in case the said policy or any such further or renewed policy shall be forfeited, avoided, or impeached, or shall become liable to any forfeiture, avoidance or impeachment, he the said A. B. shall and will forthwith thereafter at his own costs effect and obtain in the names or name of the said mortgagees, or the survivors or survivor of them, or the executors or administrators of such survivor, or their or his assigns (all which lastly mentioned persons" are hereinafter referred to as the said mortgagees or mortgagee,") and of and from the aforesaid assurance society, or any other assurance company or companies, one or more further or renewed policy or policies upon the life of him the said A. B. for any sum or sums of money not being less than the sum of £- ; and will in every case deliver or cause to be delivered unto the said mortgagees or mortgagee every such further or renewed policy as aforesaid: And moreover, that in case the said A. B. shall make default in payment of the premiums or additional premiums, and expenses (if any) for the time being payable in respect of the said policy or any such further or renewed policy or policies as aforesaid in manner aforesaid, and shall not in like manner produce

[*407]

upon demand *unto the said mortgagees or mortgagee proper vouchers for the payment thereof, and shall not obtain and effect and deliver unto the said mortgagees or mortgagee such further or renewed policy or policies as aforesaid in pursuance of the covenants in the same behalf herein before contained, or shall commit any other breach of the said covenants on his part herein before contained in relation to such insurances, then and in every such case it shall be lawful for the said mortgagees or mortgagee, if they or he shall think fit, out of their or his own moneys to pay such premiums and expenses, and to obtain and effect any such further or renewed policy or policies for the aforesaid or any less amount; and the amount which they or he shall so expend, with interest for the same at the rate aforesaid from the time or respective times of the payment thereof, shall upon demand be repaid unto them or him by the said A. B., his executors or administrators, and shall also be secured by and raisable under these presents in the same manner and as fully in all respects as the said principal sum of £and the interest thereon [Covenants by A. B for right to assign—to do no act to vitiate the policy, and for further assurance. See Precedent V.]: Provided also, and it is hereby agreed and declared, that if the money assured by the said policy hereby assigned or intended so to be, or any such further or renewed policy or policies as aforesaid, shall by reason of the death of the said A. B. become payable or receivable before payment shall have been made of all such sum and sums of money as are hereby secured or intended so to be, it shall be lawful for the said mortgagees or mortgagee, in their or his discretion immediately after such decease, and although the times at which the sum of £1000 is herein before convenanted to be paid shall not have then arrived, to apply for and receive, and if necessary enforce payment unto them or him of the said principal sum or sums of money so assured, and of all bonuses and additions thereto [for continuation of this power, see Precedent V.; also see the same Precedent for trusts of the money when received, and power of sale adding to "the said policy." "and every such further or renewed policy or policies as aforesaid"]: Provided always, and it is hereby agreed and declared, that the covenants on the part of the said A. B., herein before contained shall not bind him to pay the premiums accruing or becoming payable upon any such policy as aforesaid, or to effect any such renewal as aforesaid, at any time after any sale shall have been made under the power in that behalf herein before *contained: Provided also, and it is hereby further agreed, that every receipt [*408] which shall be given by the said mortgagees or mortgagee for any money to be received by him or them by virtue of these presents shall be a conclusive discharge to every insurance society or company, person or persons paying the same, and shall release every such society or company, person or persons from all liability to see to the application of the same; and that neither the said company, nor any other company, nor any purchaser or other person making any such payment, shall be bound or entitled to inquire whether any default shall have been made in the payment of the moneys herein before covenanted to be paid, or any of them, or whether the same or any part thereof shall then remain due, or whether there shall have

been any such breach of covenant as aforesaid: Provided also, and it is hereby further expressly declared, that the several equitable powers and discretions by these presents given unto or vested in the said mortgagees or mortgagee shall not be deemed or construed to be personal trusts or confidences reposed in the said C. D., E. F., and G. H., or any or either of them, but on the contrary as rights and remedies incident to the mortgage debt hereby secured, or so much thereof as shall for the time being be due and owing shall be exercisable by them, and the survivors and survivor of them, and the executors or administrators of such survivor, and their or his assigns, and shall be superadded to and concurrent with the ordinary legal and equitable remedies of such lastly mentioned persons or person, as such mortgagees or mortgagee as aforesaid: Provided lastly, that the said mortgagee, their or any of their executors, administrators, or assigns, estates, or effects shall not be answerable for any more moneys than they or he respectively shall actually receive, and by no means for involuntary or accidental losses. In witness, &c.

[*409]

*PRECEDENT No. VIII.

Deed of Covenant with sureties, and the Assignment of a Policy for securing a Sum of Money payable by Instalments.

THIS INDENTURE, made the day of, 1853, between A. B., of, &c. (hereinafter styled "the said borrower"), of the first part, C. D., of, &c., and E. F., of, &c. (hereinafter styled "the said sureties"), of the second part, and G. H., of, &c., and I. K., of, &c., (hereinafter styled "the said lenders"), of the third part [recite Policy of Assurance]: And

whereas the said lenders have consented to advance and lend unto the said borrower the sum of £1500 out of the moneys to which they are entitled upon a joint-account upon the security of the joint and several covenants of the said borrower, and of the said sureties and of such assignment of the said recited policy of assurance as are hereinafter respectively contained: Now THis Indenture wITNESSETH that, in consideration of the sum of £1500 to the said borrower paid by the said lenders (the receipt whereof is hereby acknowledged), he the said borrower and his said sureties do hereby for themselves, their heir, executors, and administrators jointly, and every two of them do hereby jointly for themselves, their heirs, executors, and administrators, and each of them doth hereby for himself severally and for his respective heirs, executors, and administrators, covenant with the said lenders that they the said bor rower and sureties, their executors or administrators, or some or one of them will pay to the said lenders, their executors, administrators, or assigns the sum of £1500 with interest thereon at the rate of £5 for £100 for a year in manner following, namely, by three equal yearly instalments of £500 each on the day of

1853, the

day

of, 1854, and the

day of, 1855 respectively with interest on the said sum of £1500, or on so much thereof as shall from time to time remain unpaid by half-yearly payments on the day of and the day of in each year during the life of the said borrower, until payment of such residue; but if default be made in payment of any of the said sums and interest, or any part thereof on any of the days aforesaid, or any breach or default shall be made in the due performance of either of the covenants respecting the said policy of assurance and the premiums to *become due in respect thereof next hereinafter contained, or if the said borrower or the said sureties, or [*410] any or either of them shall die, or without permission of the said lenders go to reside beyond the seas, or shall become bankrupt or insolvent, or unable to meet their or his engagements with their or his creditors before full repayment of the said sum of £1500 and interest as aforesaid, then and in any and every of such cases, and notwithstanding that no advantage shall have been taken of any such previous default or breach as aforesaid, the said borrower and sureties, their executors or administrators, or some or one of them will immediately on such default or death, going to reside beyond seas, bankruptcy, inrolvency, or inability, pay to the lenders, their executors, administrators, or assigns the said sum of £, or such part thereof as at the time of such default, death, going to reside beyond seas, bankruptcy, insolvency, or inability, shall remain unpaid, together with interest thereon at the rate aforesaid; and that they the said borrower and sureties, their executors or administrators, or some or one of them, his executors or administrators will, during the continuance of this security, pay the annual premiums, fines, and expenses which ought to be paid for keeping the said policy on foot; and also that the said borrower shall not do any act, or commit or suffer any default by means whereof the said recited policy shall be impeached or become void or voidable : AND THIS INDENTURE FURTHER WITESSETH that, for the considerations aforesaid, the said borrower doth hereby assign unto the said lenders, their executors, administrators, and assigns, all that the said recited policy of assurance on the life of the said borrower, together with the money thereby assured, and all bonuses thereon and benefits thereof [power of attorney, short form, Precedent III.], to hold the said policy and premises unto the said lenders, their executors, administrators, and assigns, but subject to the proviso for redemption hereinafter contained; that is to say, provided always and it is hereby agreed and declared that if the said borrower, his executors or administrators shall pay unto the said lenders, their executors, administrators, or assigns the said sum of £1500 with interest thereon in the manner aforesaid, and shall in every respect duly perform the covenants and stipulation on his part hereinbefore contained, then the said lenders, their executors, administrators, or assigns will, at the request and charges of the said borrower, his executors, administrators, or assigns, reassign or deliver up the said policy (if then subsisting) unto the said borrower, or as he may direct: Provided also, and it is hereby further agreed and declared, that every receipt in writing which shall be given by the said lenders, or the survivors or survivor of them, or the executors or administrators of such

[*411]

survivor, or their or his assigns for any sum or sums of money which shall become payable by virtue of the said policy, shall be a conclusive discharge or conclusive discharges to the said company and every other person paying the same; and that neither the said company nor any such person as aforesaid shall be bound or entitled to inquire whether any moneys shall be then due and owing upon the security of these presents, or shall be liable or accountable for the application or misapplication of any such moneys in such receipt expressed to be received:(0) And it is hereby declared that the said lenders and the survivors and survivor of them and the executors and administrators of such survivor, and their or his assigns shall apply all such moneys as shall be so received by them or him by virtue of the said policy, in the first place, in payment of the costs and expenses (if any) incurred in recovering the same, or otherwise in relation to the premises, and, in the next place, in or towards satisfaction of the moneys for the time being, due and owing upon the securities of these presents; and lastly shall pay the surplus (if any) unto the executors, administrators, or assigns of the said A. B.; Provided always that notwithstanding the advance of the said sum of £, and the assignment and securety hereby made, the said lenders, their executors, administrators, or assigns shall not be considered to have acquired by the same or otherwise any bona fide interest in the said policy in case the said borrower shall die by his own hands, whether feloniously or not feloniously, and whether being of sound or unsound mind, or by the hands of justice, or in consequence of a duel. In witness, &c.(p)

[*412]

*PRECEDENT No. IX.

Deed of Covenant with the collateral Security of a Policy effected upon the Life of the Debtor in the Name of the Creditor, for securing a Sam already due, and future advances.

THIS INDENTURE made the day of, 1853, between A. B., of, &c. (the mortgagor), of the one part, and C. D., of, &c. (the mortgagee), of the other part: Whereas the said A. B. is indebted to the said C. D. in the sum of £- (as he the said A. B. doth hereby acknowledge), and the said C. D. may hereafter make further advances to or on account of the said A. B.: And whereas it hath been agreed

(0) This precedent will be applicable for loans by insurance offices, or by any private persons when the debt is to be repaid by instalments, and sureties are to covenant for its due discharge. In the latter case, however, the proviso for the receipt of the insurance moneys, the powers of sale, and other powers, to the conclusion of the last precedent should be inserted in lieu of this and the following clauses.

(p) This clause has been inserted when the form has been used upon an advance made by the insurance office granting the policy, to prevent the operation of the condition for upholding policies to the extent of a bonâ fide assignment, notwithstanding the suicide of the assured. Ante, p. 72.