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The Third Party Mortgage Agreement is a crucial document in Indian secured lending transactions where the property being mortgaged belongs to someone other than the primary borrower. This arrangement is common in family businesses, corporate group structures, or when individuals provide security for business loans. The document must comply with the Transfer of Property Act, 1882, the Registration Act, 1908, and other relevant Indian legislation. It typically includes detailed provisions about the mortgaged property, the secured obligations, rights and responsibilities of all parties, default provisions, and enforcement mechanisms. The agreement requires mandatory registration and appropriate stamp duty payment based on state-specific regulations. It's particularly important to include robust protections for the third-party mortgagor who is taking on significant risk without receiving the direct benefit of the loan.

1. Parties: Identifies and defines the three key parties: the Mortgagor (third party providing security), the Mortgagee (lender), and the Principal Debtor

2. Background: Explains the context of the mortgage, including the principal debt arrangement and the third party's agreement to provide security

3. Definitions: Defines key terms used throughout the agreement, including Property, Secured Obligations, Security Period, etc.

4. Creation of Mortgage: Details the creation and nature of the mortgage, specifying the type of mortgage under the Transfer of Property Act

5. Security: Describes the property being mortgaged and the extent of the security interest being created

6. Representations and Warranties: Statements and assurances from the Mortgagor regarding ownership, authority, and property status

7. Mortgagor's Covenants: Obligations of the Mortgagor including property maintenance, insurance, payment of taxes, etc.

8. Rights and Remedies of the Mortgagee: Details the Mortgagee's rights in case of default, including enforcement and sale rights

9. Principal Debtor's Obligations: Specifies the underlying obligations being secured and payment terms

10. Events of Default: Lists circumstances constituting default under the agreement

11. Power of Attorney: Grants specific powers to the Mortgagee for security enforcement

12. Governing Law and Jurisdiction: Specifies Indian law as governing law and determines jurisdiction for disputes