Agreement of Movable Hypothec Without Delivery

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{{company_address}}

Phone: {{phone}} | Email: {{email}} | Web: {{website}}

Agreement of Movable Hypothec Without Delivery

Agreement of Movable Hypothec Without Delivery

{{company_logo}} {{company_name}} {{company_address}} Tel: {{phone}} Email: {{email}} Website: {{website}}

AGREEMENT OF MOVABLE HYPOTHEC WITHOUT DELIVERY

This Agreement of Movable Hypothec Without Delivery ('Agreement') is made and entered into on this {{day}} day of {{month}}, {{year}}.

BETWEEN:

{{hypothecator_company_name}}, a company duly incorporated and registered under the laws of {{country}}, with its principal place of business at {{hypothecator_address}} (hereinafter referred to as 'the Hypothecator');

AND

{{hypothecee_company_name}}, a company duly incorporated and registered under the laws of {{country}}, with its principal place of business at {{hypothecee_address}} (hereinafter referred to as 'the Hypothecee').

WHEREAS:

A. The Hypothecee has granted or intends to grant to the Hypothecator financial facilities in the amount of {{loan_amount}} ({{loan_amount_words}}) ('the Indebtedness').

B. The Hypothecator desires to hypothecate certain movable assets as security for the due and proper fulfilment of all its obligations to the Hypothecee.

1. DEFINITIONS AND INTERPRETATION

1.1. 'Hypothecated Assets' means the movable assets described in Schedule A hereto.

1.2. 'Indebtedness' means all present and future indebtedness howsoever arising, owed by the Hypothecator to the Hypothecee.

1.3. This Agreement shall be governed by and construed in accordance with the laws of {{country}}.

2. CREATION OF HYPOTHEC

2.1. The Hypothecator hereby hypothecates, without delivery, to and in favour of the Hypothecee, the Hypothecated Assets as general covering security for the due and proper fulfilment of all the Hypothecator's obligations to the Hypothecee, present and future, including but not limited to the Indebtedness.

2.2. The Hypothecator warrants that it is the sole and unencumbered owner of the Hypothecated Assets and that it has the full right and authority to hypothecate same.

3. POSSESSION AND USE OF HYPOTHECATED ASSETS

3.1. Notwithstanding the hypothec created hereby, the Hypothecator shall remain in possession of the Hypothecated Assets and shall be entitled to use them in the ordinary course of its business.

3.2. The Hypothecator undertakes to keep the Hypothecated Assets in good order and repair and to insure them against all risks to their full replacement value, with the Hypothecee's interest noted on the policy.

4. WARRANTIES AND UNDERTAKINGS BY THE HYPOTHECATOR

4.1. The Hypothecator warrants that the Hypothecated Assets are free from any other encumbrance.

4.2. The Hypothecator undertakes not to sell, alienate, further hypothecate, or otherwise dispose of the Hypothecated Assets without the prior written consent of the Hypothecee.

4.3. The Hypothecator shall forthwith notify the Hypothecee of any attachment or attempted attachment of the Hypothecated Assets.

5. EVENTS OF DEFAULT

5.1. An Event of Default shall occur if:

a) The Hypothecator fails to pay any amount due to the Hypothecee on the due date.

b) The Hypothecator breaches any term or condition of this Agreement or any other agreement between the parties.

c) The Hypothecator commits any act of insolvency or is placed under business rescue or liquidation.

6. REMEDIES ON DEFAULT

6.1. Upon the occurrence of an Event of Default, the Hypothecee shall be entitled, without derogating from any other rights it may have in law, to:

a) Declare the entire Indebtedness immediately due and payable.

b) Take possession of the Hypothecated Assets.

c) Sell the Hypothecated Assets by public auction or private treaty and apply the proceeds to the Indebtedness.

d) Institute legal proceedings for the recovery of the Indebtedness.

7. NOTICES

7.1. Any notice required to be given under this Agreement shall be in writing and sent to the addresses mentioned above, or such other address as a party may notify to the other from time to time.

8. GENERAL

8.1. This Agreement constitutes the whole agreement between the parties relating to the subject matter hereof.

8.2. No variation, cancellation or novation of this Agreement shall be of any force or effect unless reduced to writing and signed by all parties.

SCHEDULE A: HYPOTHECATED ASSETS

Description of Movable Assets:

1. {{asset_description_1}}, Serial Number: {{asset_serial_1}}, Estimated Value: {{asset_value_1}}

2. {{asset_description_2}}, Serial Number: {{asset_serial_2}}, Estimated Value: {{asset_value_2}}

3. {{asset_description_3}}, Serial Number: {{asset_serial_3}}, Estimated Value: {{asset_value_3}}

4. {{asset_description_4}}, Serial Number: {{asset_serial_4}}, Estimated Value: {{asset_value_4}}

(Add more as required)

SIGNATURES

THUS DONE AND SIGNED at {{place_hypothecator}} on this {{day_hypothecator}} day of {{month_hypothecator}}, {{year_hypothecator}}.

_______________________________ For: {{hypothecator_company_name}}

Name: {{hypothecator_authorised_signatory_name}}

Designation: {{hypothecator_authorised_signatory_designation}}

THUS DONE AND SIGNED at {{place_hypothecee}} on this {{day_hypothecee}} day of {{month_hypothecee}}, {{year_hypothecee}}.

_______________________________ For: {{hypothecee_company_name}}

Name: {{hypothecee_authorised_signatory_name}}

Designation: {{hypothecee_authorised_signatory_designation}}