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The Third Party Mortgage Agreement is a crucial security document used in Malaysian banking and finance transactions where a person or entity (the mortgagor) provides their property as security for another party's (the borrower's) loan obligations. This arrangement is common in both commercial and residential contexts, particularly in family business situations or corporate group structures. The document must comply with Malaysian property and banking laws, including the National Land Code 1965 and Financial Services Act 2013. It contains detailed provisions regarding the creation of the security interest, obligations of all parties, enforcement mechanisms, and protection of the mortgagee's interests. The agreement may also need to accommodate Islamic finance principles if the facility is Shariah-compliant.

1. Parties: Identifies the three main parties: the mortgagor (third party providing security), the mortgagee (lender), and the borrower

2. Background: Explains the context of the mortgage arrangement, including the underlying loan facility and the third-party security arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Creation of Charge: Establishes the legal charge over the property as security

5. Representations and Warranties: Statements and assurances given by the mortgagor regarding ownership, authority, and property status

6. Mortgagor's Covenants: Obligations of the mortgagor including maintenance, insurance, and payment of outgoings

7. Events of Default: Circumstances that constitute default and trigger enforcement rights

8. Rights and Remedies of Mortgagee: Actions the mortgagee can take upon default

9. Continuing Security: Provisions ensuring the security remains effective until full discharge

10. Costs and Expenses: Allocation of legal and other costs related to the mortgage

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and relevant jurisdiction