Chattels Mortgage

The household goods and business stock that have been inspected by the agent/loan officer form the chattels. The chattels act as security for the loan given. The borrower hereby agrees and declares that:

– He/She shall on demand duly pay to the lender the contract sum of money as foresaid together with interest thereon as foresaid
– He/She will at all times keep the chattels insured against loss or damage by fire or otherwise with some reputable insurance company to their full insurable value in the joint name of himself and the lender and will pay all the premiums necessary for effecting and keeping up such insurancChattels Mortgagee and the receipt of every such payment
AND If any time the borrower shall default in effecting such insurance it shall be lawful for the lender to insure and keep the insured chattels to their full purpose. The lender shall do this on account of the borrower and the borrower shall refund such paid sum together with interest thereon at such a rate as the lender may from time to time stipulate and such amount shall be a charge upon the chattels
– He will during the continuance of this security at all times pay the rent rate and taxes in respect of the premises wherein the chattels shall be and shall keep the same from being destrained for rent, rates or taxes or from being taken under any execution and will at all times on demand in writing) produce to the lender or its authorized agent the receipts for such rent rates and taxes payment;
AND is shall be lawful for the lender to pay and discharge all rent rate taxes assessment and outgoings which at any time during the subsistence of the said security may be or become due assessed or payable in respect of the premises upon or in which for the time being the chattels may be or therefore upon all such payments made by the lender together with interest at such rates as the lender may from time to time stipulate shall be a charge upon which shall not be recovered until full payment of all such sum and interest; AND FURTHER that the borrower will on demand repay to the lender all such payment made and all cost charges and expenses incurred by the lender in the manner aforesaid and interest thereon at such rates as aforesaid
– He will not:
– a)Permit or offer any distress or execution to be levied upon the chattels or any of them or become bankrupt
– b)Remove the chattels or any of them from the premises where they are now or to which ) with the consent of the lender) they may hereafter be removed to except for the purpose of effecting necessary repairs thereto without the prior consent in writing of the lender
– THAT he will keep the chattels in good and substantial repair and condition and will replace such of them as may be destroyed or worn out with other and similar chattels of equal value and any chattels so substituted for any chattels shall be included in this security and it shall be lawful for the lender from time to time at all reasonable times during the continuance of this security to enter the premises where the chattels may be to view and inspect the same and take inventories thereof
– THAT if on demand the borrower shall fail to pay the contract sum as aforesaid together with the interest thereon OR if being in employment the borrower leaves the service of his employer OR shall make default in the performance of any covenant or agreement contained or implied herein and necessary for maintaining this security or if shall commit any act of bankruptcy or compound or negotiate for any composition with his creditors OR if shall fraudulently remove them from the premises in which they are or shall be OR if he shall not without reasonable excuse upon demand in writing by the lender produce to it the last receipt for the rent rate and taxes or execution during the continuance of this security have being levied against the goods of the borrower under any judgement at law THEN in any case it shall be lawful to the lender, or its servant or agent without previous notice to the borrower and seize and take possession of all or any of the chattels in whatever place or places they may happen to be
– THAT if the lender shall become entitled to seize the chattels then the lender or its agents may enter and remain upon any premises where the chattels may be and if necessary break open doors and windows in order to obtain the admission and after the expiration of seven (7) days from the seizure may sell the chattels by public auction or private contract to pay off the contract sum or any part thereof as may be owing and the interest then due and all costs and the expenses which the lender may have incurred and all payments it may have made payment subject to clauses 2 and 3 hereinabove and the surplus shall be paid to the borrower. If the lenders sell the security of the goods and do not recover the sum and interest, the lenders shall be at liberty for any action for the recovery of the balance at the borrowers cost
– That upon the lapse of the contract or payment of the said contract sum and interest, costs, charges and expenses specific in clause 7 hereof this security shall be expired
– That the borrower and every other person claiming through him any interest in the chattels shall at all times the cost of the borrower execute and do all such assurance and things as lawfully required by the lender for further and better assuring unto all or any of the chattels and for enabling the lender to obtain possession of the same
– The covenant papers and provisions set in second, third and fourth schedules to the Chattels Transfer Act (Chapter 28) shall as far as applicable to these present and are not inconsistent herewith be implied herein as if this were said and instrument under the said Act

13. Borrowers Declaration and Warranties

The borrower accepts and shall abide by the lenders business systems, operational practices and the procedures under these terms and conditions

The borrower warrants that it will co-operate with the Lender on the supervision and inspection of the use of the funds borrowed under this contract and of the business condition of the borrower and that it will promptly provide all financial statements and related materials needed by the lender; which the borrower warrants to be true, complete and accurate