Deed of Hypothec on Movables

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{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

DEED OF HYPOTHEC ON MOVABLES

This Deed of Hypothec is made and entered into on this the {{day}} day of {{month}}, {{year}}.

BETWEEN:

{{debtor_company_name}} (Registration Number: {{debtor_registration_number}}), a company duly incorporated and existing under the laws of {{country}}, with its registered office at {{debtor_address}} (hereinafter referred to as "the Debtor").

AND

{{creditor_company_name}} (Registration Number: {{creditor_registration_number}}), a company duly incorporated and existing under the laws of {{country}}, with its registered office at {{creditor_address}} (hereinafter referred to as "the Creditor").

WHEREAS

A. The Debtor is indebted to the Creditor in the sum of {{amount_in_words}} ({{amount_in_figures}}) (hereinafter referred to as "the Principal Debt"), arising from {{brief_description_of_debt_origin_e.g._loan_agreement_dated_DD_MM_YYYY}}.

B. The Debtor has agreed to hypothecate, pledge, and bind the movable assets described below as security for the due payment of the Principal Debt and all other sums which may now or hereafter be owing by the Debtor to the Creditor.

NOW THEREFORE, IT IS AGREED AS FOLLOWS:

1. DEFINITIONS

1.1. "Hypothecated Assets" refers to the movable assets described in Schedule A hereto.

1.2. "Obligations" refers to the Principal Debt, interest thereon, and all other amounts payable by the Debtor to the Creditor in terms of the underlying agreement and this Deed.

HYPOTHEC

2.1. The Debtor hereby hypothecates, pledges, and binds in favour of the Creditor, as a continuing covering security for the due and punctual fulfilment of all the Debtor’s Obligations to the Creditor, all the movable assets listed in Schedule A.

2.2. The Debtor warrants that they are the sole and unencumbered owner of the Hypothecated Assets and that they have full power and authority to hypothecate the said assets.

2.3. The Debtor may retain possession and use of the Hypothecated Assets, provided that such use is in the ordinary course of business and does not diminish the value of the assets, save for normal wear and tear.

2.4. The Debtor undertakes not to alienate, encumber, dispose of, or permit any lien to attach to the Hypothecated Assets without the prior written consent of the Creditor.

DEBTOR'S UNDERTAKINGS

3.1. The Debtor shall keep the Hypothecated Assets in good order and repair.

3.2. The Debtor shall insure the Hypothecated Assets against all risks, including but not limited to fire, theft, and accidental damage, for their full replacement value, with an insurer approved by the Creditor, and shall ensure that the Creditor's interest is noted on the policy.

3.3. The Debtor shall promptly provide the Creditor with proof of insurance and payment of premiums.

3.4. The Debtor shall allow the Creditor or its agents reasonable access to inspect the Hypothecated Assets upon reasonable notice.

ENFORCEMENT OF SECURITY

4.1. Should the Debtor fail to fulfil any of its Obligations or commit a breach of any term of this Deed, the Creditor shall be entitled, without prejudice to any other rights it may have, to:

(a) claim immediate payment of all outstanding Obligations;

(b) take possession of the Hypothecated Assets;

(c) sell the Hypothecated Assets by public auction or private treaty, as the Creditor deems fit, and apply the proceeds of such sale towards the satisfaction of the Obligations, after deducting all costs incurred in the recovery and sale.

4.2. Any surplus remaining after the satisfaction of the Obligations shall be paid to the Debtor. Any shortfall shall remain an obligation of the Debtor.

GENERAL PROVISIONS

5.1. This Deed constitutes the entire agreement between the parties relating to the subject matter hereof and no variation, amendment, or novation shall be of any force or effect unless reduced to writing and signed by both parties.

5.2. This Deed shall be binding upon and enure to the benefit of the parties and their respective successors and assigns.

5.3. This Deed shall be governed by and construed in accordance with the laws of {{country_of_governing_law}}.

SCHEDULE A: DESCRIPTION OF HYPOTHECATED MOVABLE ASSETS

Item 1: {{asset_1_description}}, Serial Number: {{asset_1_serial_number}}, Estimated Value: {{asset_1_value}}

Item 2: {{asset_2_description}}, Serial Number: {{asset_2_serial_number}}, Estimated Value: {{asset_2_value}}

Item 3: {{asset_3_description}}, Serial Number: {{asset_3_serial_number}}, Estimated Value: {{asset_3_value}}

{{add_more_assets_as_needed}}

SIGNED AT {{city}} ON THIS THE {{day}} DAY OF {{month}}, {{year}}.

WITNESSES:

1. ________________________ ________________________

(Name and Surname) (Signature)

2. ________________________ ________________________

(Name and Surname) (Signature)

For: {{debtor_company_name}} For: {{creditor_company_name}}

________________________ ________________________

(Name of Signatory) (Name of Signatory)

(Designation) (Designation)