The document discusses various formalities related to mortgage collateral security at banks, including: 1) It describes different types of mortgages like simple mortgage, equitable mortgage, mortgage by conditional sale, etc. and requirements for their creation. 2) It lists documents required for mortgage formalities like title deeds, valuation reports, NOC, legal opinions, mortgage deed, power of attorney deed. 3) It provides details of contents that should be included in mortgage deeds and power of attorney deeds like names, addresses, loan details, property descriptions. 4) It outlines the process of redemption of mortgaged property and contents of redemption and revocation of power of attorney deeds.

1. Mortgage Formalities of
Collateral Security, RIGPA,
Redemption Deed Execution and
Record Maintenance
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2. Introduction
 Bank is a financial intermediary which
collects deposit from surplus unit and lends
it to the deficit unit. In order to secure the
lending, banks accept security.
 Security mainly two kinds: Primary &
Collateral.
 Collateral security mainly Moveable &
Immoveable according to their nature. On
the other hand, Mortgage is related to
Immoveable Property.11/14/2018

3. Creation of Charge on Security
 A bank acquires rights over borrower’s
assets by creating charge on securities,
so that it can be made available for the
repayment of the loan.
 The bank does not become the owner of
the property, but has certain rights over
the property until the debt is due to paid.
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4. Methods of Creating Charges
The methods of creating charges depend
on the following aspects:
 Type of properties to be charged.
 Nature of credit facilities
 Degree of control desired to be ensured.
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5. Methods of Charges are…
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6. What is Mortgage?
A Mortgage is the transfer of an interest in
specific immoveable property for the purpose
of securing:
The payment of money advanced or to be
advanced by way of loan, or
An existing or future debt, or
The performance of an engagement which
may give rise to a pecuniary liability.
Transfer of Property Act-1882 Sec (58a)
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7. Types of Mortgage are…
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8. Simple / Registered Mortgage
 Where without delivering possession of the mortgaged property,
the mortgagor binds himself personally to pay the mortgage
money and agrees that in the event of his failure to pay
according to his contract, the mortgagee shall have a right to
cause the mortgage property to be sold and the proceeds of sale
to be applied so far as may be necessary in payment of the
mortgage money, the transaction is called a Simple Mortgage.
 But the mortgagee has no power to sell the property without
the intervention of the court. When an interest of the specific
property under such mortgage is transferred by registration
deed is called Registered Mortgage.
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9. Simple / Registered Mortgage (Cont..)
 Second Mortgage: Once a free holder has already mortgaged his
property and wishes later to borrow more on the same property,
he can do so by a second mortgage if, of course, there is enough
margin in the value of property.
 Sub Mortgage: If a lender himself wishes to borrow money on
the security of a mortgagor’s promise to repay him, he can
produce to his banker the mortgage deed. If the banker is
satisfied the advanced may be made on the security of the
mortgage deed.
 Token Mortgage: Token mortgage is a registered mortgage
where only a token amount is registered by a deed securing
covering the token amount of loan and the rest amount is
covered by submitting a agreement to create further charge.
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10. Equitable Mortgage
 When a person delivers to a creditor
or his agent documents of the title to
immoveable property with intent to
create a security thereon, the
transaction is called an Equitable
Mortgage/ a mortgage by deposit of
Title Deed.
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11. Mortgage by Conditional Sale
Where, the mortgagor ostensibly sells the mortgaged property-
 On condition that on default of payment of the mortgage-money
on a certain date the sale shall become absolute, or;
 On condition that on such payment being made the sale shall
become void, or ;
 On condition that on such payment being made the buyer shall
transfer the property to the seller,
The transaction is called a mortgage by conditional sale and the
mortgagee by conditional sale: PROVIDED that no such
transaction shall be deemed to be a mortgage, unless the
condition is embodied in the document, which effects or
purports to effect the sale.
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12. Usufructuary Mortgage
 Where the mortgagor delivers possession, or expressly
or by implication binds himself to deliver possession of
the mortgaged property to the mortgagee and
authorizes him to retain such possession until payment
of the mortgage money,
 And to receive the rents and profits accruing from the
property or any part of such rents and profits and to
appropriate the same in lieu of interest or partly in
payment of the mortgage money, the transaction is
called a usufructuary mortgage and the mortgagee a
usufructuary mortgagee.
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13. English Mortgage
 Where the mortgagor binds himself to
repay the mortgage money on a certain
date, and transfers the mortgaged
property absolutely to the mortgagee,
 But subject to a provision that he will re-
transfer it to the mortgagor upon payment
of the mortgage money as agreed, the
transaction is called an English mortgage.
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14. Anomalous Mortgage
A mortgage which is not a simple
mortgage, a mortgage by conditional
sale, an usufructuary mortgage, an
English mortgage or a mortgage by
deposit of title deeds within the meaning
of section 58 of Transfer of Property Act
1882 is called an Anomalous Mortgage.
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15. Required Deeds/ Documents for
Mortgage Formalities
 Sanction Letter for credit facilities.
 Title deed of the property to be mortgaged.
 Relevant Bia Deeds.
 Certified copy of Mutation Khatian along with DCR in
the name of land owner.
 Up to date Ground Rent Receipt in the name of the
land owner.
 Certified copy of CS, SA, RS & BS Khatians.
 Up to date NEC.
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16. Required Deeds/ Documents for
Mortgage Formalities (Cont..)
 Mouza Map.
 Valuation Report.
 NOC from the competent Authority (in case of
Lease / Govt Property)
 Genuineness Verification Certificate.
 Legal Opinion & Vetting.
 NID & TIN certificate of the Land Owner.
 Up to date TIN certificate of the borrower (s).
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17. Required Deeds/ Documents for
Mortgage Formalities (Cont..)
 Approved design from the competent
authority (in case of building/flats)
 Partition deed (in case of joint
properties.)
 Up to date Holding Tax/ Municipal Tax paid
receipt (in case of building/flats).
 Memorandum of Association & Articles of
Association (in case of company)
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18. Required Deeds/ Documents for
Mortgage Formalities (Cont..)
 Board Resolution for availing credit
facilities as well as mortgage of the
property of the company.
 Registered Partnership deed (in case of
Partnership concern)
 Negative List from the concern DC Office.
 Preparation of Mortgage Deed (s)
 Preparation of Power of Attorney Deed (s).
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19. Contents of the Mortgage Deed
 Mortgage value as per Sanction Letter.
 Date of Execution ***
 Correct Name & Address with date of
Birth, NID Number & TIN Number of the
Mortgagor.
 Name & Address of the Mortgagee.
 Mentioning Sanction Letter Reference
Number, Approved amount & Nature of
facility.
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20. Contents of the Mortgage Deed
(Cont..)
 Mentioning NOC Letter Reference Number
(in case of Lease/Govt Property)
 Proper chain of Ownership in details.
 Terms & Conditions.
 Correct Schedule of the properties,
measurement, with butted & bounded.
 Proper stamping & Fees as per mortgage
value.
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21. Contents of the Mortgage Deed
(Cont..)
 Execution by the right person/firms.
 Registered in the proper
Jurisdiction.***
 Affidavit of the Mortgagor.
 Witnesses.
 Identifier.
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22. Contents of Irrevocable Power of Attorney Deed
 Date of Execution
 Correct Name & Address with date of Birth,
NID Number & TIN Number of the Principal.
 Name & Address of the Attorney.
 Mentioning Sanction Letter Reference Number,
Approved amount & Nature of facility.
 Mentioning NOC Letter Reference Number (in
case of Lease/Govt Property)
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23. Contents of Irrevocable Power of
Attorney Deed (Cont..)
 Proper chain of Ownership in details.
 Purpose, Terms & Conditions.
 Correct Schedule of the properties,
measurement, with butted &
bounded.
 Proper stamping.
 Seal & Signature of the Attorney.
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24. Contents of Irrevocable Power of
Attorney Deed (Cont..)
 Execution by the right person/firms.
 Registered in the proper Jurisdiction.
 Affidavit of the Principal.
 Witnesses.
 Identifier
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25. Process of Redemption
 When the client adjust the outstanding liability of
the mortgagee bank and intend to redeem the
mortgage properties the branches follow the
following procedures:
 Obtaining prior approval form Head Office.
 Obtaining No Liability Certificate from other
branches of the bank against the mortgaged
properties.
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26. Contents of Deed of Redemption
 After full or partial adjustment of the liabilities bank
may redeem the mortgage property fully or partially
through execution of Redemption Deed.
 Date of Execution
 Correct Name & Address of the Mortgagee Bank, name
of the Authorized Officer with Letter of Authority.
 Name & Address of the Mortgagor.
 Mentioning Mortgage Deed Number, date and
Mortgage value.11/14/2018

27. Contents of Deed of Redemption
(Cont..)
 Schedule of the properties, measurement,
with butted & bounded according to
Mortgage deed.
 Registered in the Sub-Registry Office
where deed of Mortgage executed.
 Affidavit of the Authorized Officer.
 Witnesses.
 Identifier.
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28. Revocation of Power of Attorney
 After full and final adjustment of the
liabilities of the borrower and when
there is no objection of the bank, the
Principal may revoke the Power of
Attorney through execution of Registered
deem the mortgage property fully or
partially through execution of “Deed of
Revocation of Irrevocable General
Power of Attorney”.
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29. Contents of Deed of Revocation of
Power of Attorney
 Date of Execution
 Correct Name & Address of the Principal as
per Power of Attorney Deed.
 Name & Address of the Attorney Bank.
 Mentioning Registered Power of Attorney
Deed Number and date.
 Schedule of the properties, measurement,
with butted & bounded according to
Registered Power of Attorney deed.
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30. Contents of Deed of Revocation of
Power of Attorney (Cont..)
 Registered in the Sub-Registry Office
where deed of Irrevocable Power of
Attorney executed.
 Affidavit of the Principal.
 Witnesses.
 Identifier.
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31. Record Maintenance
 Banker should always maintain the records properly. Branch
must maintain the records of the following documents;
 All the records relating to Mortgage, such as Mortgage Deed,
Power of Attorney Deed etc.
 Approval letter from Head Office regarding Redemption &
Revocation.
 NOC from different branches on the mortgaged property.
 Maintaining safe in safe out register with full sign and date of
the receiving person of the related deeds & documents of the
mortgage property in our custody.
 Forwarding Letter with full list of documents deliver to.
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