No. V.

purpose of enforcing the payment of the said sum of 2,000l. and Mortgage of a interest so secured by the said hereby assigned bond as aforesaid, Bond Debt. unless the said (mortgagee), his executors, administrators or assigns

shall consider it proper or expedient so to do; the true intent and meaning of these presents, and of all the said parties hereto being, that the said (mortgagee), his executors, administrators or assigns, shall not be responsible for any loss which may be incurred in consequence of his or their failing to put in force the said bond or any of the powers or authorities vested in him the said (mortgagee), his executors, administrators and assigns, under or by virtue of the same, any rule of law or equity to the contrary thereof in anywise notwithstanding. [INSERT covenant from mortgagee not to exercise power of sale without giving mortgagee six calendar months' previous notice; ut ante, Section II., No. II., clause 13, p. 49.]

IN WITNESS, &c.

BETWEEN (mortgagor), of, &c., of the one part, and (mortgagee),

of, &c., of the other part.

2. WHEREAS, by a promissory note in writing under the hand Recital of promissory of (debtor), dated the

day of

the said (debtor) pro- note.

mised, at the expiration of twelve calendar months after the day of the date thereof, to pay unto the said (mortgagor) the sum of 1,000Z., with interest thereon at the rate of 51. for every 100%. by

the year.

3. AND WHEREAS the said (mortgagee), at the request of the of agreement said (mortgagor), has agreed to advance him the sum of 5007., on

for loan.

(a) Promissory notes, and bills of exchange, are often the subject of an Practical equitable mortgage by way of deposit, but they may nevertheless be made the observations. subject of a legal mortgage by an actual assignment, as in the above precedent. In the latter case a clause should always be inserted indemnifying the mortgagee from the obligation of suing upon such notes or bills, unless he shall think proper to do so, so as to effectually exonerate him from all liability for any losses that may be incurred in consequence of such omission.

No. VI.

having an assignment of the said promissory note made to him as Mortgage of a a security for the repayment thereof in manner hereinafter men

Debt secured

upon a

Promissory
Note.

which

mortgagor assigns

and debt.

tioned.

4. NOW THIS INDENTURE WITNESSETH, that in consideration Testatum, by of the sum of 5007. sterling paid by the said (mortgagee) to the said (mortgagor) [CONTINUE this clause down to the assigning clause, promissory note as in last precedent, clause 4,] HE the said (mortgagor) DOTH by these presents assign unto the said (mortgagee), his executors, administrators and assigns, ALL that the aforesaid promissory note, all sum and sums of money now or hereafter to become due thereon, and all benefit and advantage to be received therefrom; and all the estate, right, title and interest of him the said (mortgagor) therein. [INSERT habendum and power of attorney, as in last precedent, clauses 5 and 6, p. 266; proviso for redemption, and power of sale in default; ut ante, Section V., No. I., clauses 7 and 8, p. 252, 253; ALSO covenant for payment of principal and interest, ut ante, Section II., No. I., clause 10, p. 37.]

Covenant

from mortgagor

valid, and the

debt still subsisting.

5. AND ALSO that the said promissory note is a valid and that the note is effectual instrument for securing the payment of the said sum of 1,000l. and interest thereby expressed to be secured; AND ALSO that the said sum of 1,000l. and interest is now justly due and owing from the said (debtor) to the said (mortgagor.) [ADD covenant from mortgagor not to revoke power of attorney, or release debt, as in last precedent, clause 8, p. 267; ALSO covenant for further assurance, ut ante, No. I., clause 12, p. 254; AND proviso that mortgagee shall not be compelled to sue for debt, as in last precedent, clause 9, p. 267.]

IN WITNESS, &c.

No. VII.

ASSIGNMENT OF SIMPLE CONTRACT DEBT, AS A MORTGAGE
SECURITY, WITH POWER TO SUE FOR THE RECOVERY OF
ALL MONEYS OWING THEREON, AND APPLY THE SAME IN
LIQUIDATION OF THE MORTGAGE DEBTS. (a)

(a) Simple contracts debts may be assigned by way of mortgage security, and Practical where several such are assigned, as in the case supposed in the above precedent, remarks. it will be advisable to have them all inserted in a schedule annexed to the mortgage deed. But whether inserted in the schedule or not, the existence of the debts should be recited, and the debts themselves assigned, with power of attorney to sue for and give sufficient discharges for the same; in addition to which, it will also be advisable to add a power to compound debts, give time for payment, take securities, and refer to arbitration, as contained in clause 6, in the above form. The mortgagee should also be exonerated from being compelled to sue for any of the debts unless he shall think proper to do so.

After a deed of this kind is executed, the safest course for the mortgagee to After mortgage pursue is to give immediate notice to all the parties indebted, so as to prevent is executed them from paying their respective debts to the mortgagor, or to render them mortgagee personally responsible to the mortgagee in the event of their doing so after such should give notice; but in the absence of any such notice, the mortgagee would have no immediate remedy whatever against any debtor who paid his debt to the mortgagor (Jones v. notice to Gibbons, 9 Ves. 410); although, after such notice even a release by the mort- debtors. gagor to the debtor would have no legal operation whatever in exoneration of the debt: (Legh v. Legh, 1 Bos. & Pull. 447.)

No. VII.

2. WHEREAS, the several persons specified and set forth in the Assignment of schedule hereunto annexed, are justly and truly indebted to the Simple Contract said (mortgagor) in the several sums therein set opposite to their Mortgage respective names, amounting altogether to the sum of 7577. 13s. 4d. Security, &c.

Debts as a

Recital that parties named

in schedule are indebted to mortgagee.

Of agreement

3. AND WHEREAS the said (mortgagor), being justly and truly indebted to the said (mortgagee), in the sum of 3507., the said (mortgagor), hath agreed to assign the said several debts unto the to assign debts said (mortgagee), as a security for the payment of the said sum of as a security 350l. and interest for the same at the rate of 51. for for money owing 1007. every from mortgagor by the year, to be computed from the day of the date of these presents, in manner hereinafter mentioned.

to mortgagee.

Testatum.

Habendum.

Power to compound debts.

Declaration of trust of moneys to be raised.

4. NOW THIS INDENTURE WITNESSETH [CONTINUE clause to the assigning part, ut ante, No. IV., clause 4, p. 266.] HE the said (mortgagor), DOTH by these presents assign, transfer, set over and confirm unto the said (mortgagee), ALL and every the debts and sums of money, specified and set forth in the schedule hereunto annexed, with interest (if any) now or hereafter to grow due thereon, AND all the estate, right, title and interest, both legal and equitable, of him the said (mortgagor) therein.

5. TO HAVE, HOLD, RECEIVE AND TAKE, the said debts, sums of money, and all and singular other the said hereby assigned premises, unto the said (mortgagee), his executors, administrators and assigns, and for his and their own proper moneys, chattels and effects. [INSERT power of attorney, ut ante, No. IV., clause 6, p. 266.]

6. AND also with full power for the said (mortgagee), his executors, administrators or assigns, in his or their discretion, to compound for any or either of the said debts hereby assigned, or to give time for payment, or to take personal or other security for such payment, or to refer to arbitration or otherwise adjust any dispute that may arise in respect thereof.

7. AND IT IS HEREBY DECLARED, that the said (mortgagee), his executors, administrators or assigns, shall stand possessed of all such sums of money, as he or they shall recover or receive upon