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The Mortgage Bill of Sale is a specialized legal instrument used in Indian jurisdiction when a borrower needs to create a security interest over movable property while retaining possession for business or personal use. This document type is particularly important in secured lending transactions where the collateral consists of movable assets such as equipment, vehicles, or inventory. The document must comply with various Indian legislations including the Transfer of Property Act, Registration Act, and relevant state stamp duty laws. It serves to protect the lender's interests by creating a legally enforceable security while allowing the borrower to continue using the mortgaged property. The Mortgage Bill of Sale typically includes detailed descriptions of the mortgaged property, loan terms, repayment conditions, and enforcement mechanisms, making it essential for both commercial and private lending arrangements in India.

1. Parties: Details of the mortgagor (borrower) and mortgagee (lender), including full legal names, addresses, and registration details for companies

2. Background: Brief context of the transaction, including the purpose of the loan and relationship between parties

3. Definitions: Key terms used throughout the document, including 'Mortgaged Property', 'Security Interest', 'Secured Obligations'

4. Creation of Mortgage: Express creation of the mortgage and security interest over the property

5. Description of Property: Brief description of the mortgaged property (detailed description in Schedule)

6. Loan Details: Amount of loan, interest rate, repayment terms and duration

7. Security Interest: Nature and extent of the security interest being created

8. Representations and Warranties: Mortgagor's declarations regarding ownership, right to mortgage, and property status

9. Covenants: Ongoing obligations of the mortgagor regarding property maintenance, insurance, and payment

10. Events of Default: Circumstances constituting default and consequences thereof

11. Rights and Remedies: Mortgagee's rights upon default, including power of sale

12. Governing Law and Jurisdiction: Specification of Indian law and relevant jurisdiction

13. Execution: Signature blocks and attestation requirements