First Schedule, The Home Mortgage Finance Act, 2009

Section 6 Form of Mortgage Agreement This Mortgage is made the ……day of ………………….Two Thousand and ……….. (200…) BETWEEN (name and address of Mortgagor) (hereinafter referred to as the “Mortgagor”) which expression shall where the context so admits or requires include his heirs personal representatives successors and assigns) of the one part And (name of financial institution) a company incorporated under the laws of Sierra Leone and having its registered office at (address ) (hereinafter referred to as the Mortgagee”) of the other part. W HEREAS : (Recitals) root of Title persons whose consent and/or concurrence is required. Mortgagor’s need for the loan and Mortgagees willingness to grant the Loan 1 Consideration and Personal Covenant to Pay In consideration of the loan of (amount) which the Mortgagee has given to the Mortgagor (receipt of which the Mortgagor acknowledges), the Mortgagor covenants with the Mortgagee to duly and punctually repay the said loan together with interest at (percentage of interest) within (term of loan) and (additional charges under disclosure requirements) (according to the payment schedule in Schedule 2 hereto) or (Clause 3 of this Agreement). 2 Mortgage The Mortgagor as Beneficial Owner hereby mortgages the (description of property) which property is particularly described in Schedule 1 hereto (hereinafter referred to as the “Property”) together with all fittings and fixtures attached thereto now or to be attached hereafter to the Mortgagee to secure the repayment of the loan, interest and other money hereby covenanted to be paid by the Mortgagor. 3. Payment of principal, interests and other costs 3.1 The Mortgagor covenants with the Mortgagee to repay the Loans as follows: (a) The Loan shall be repaid at the interest rate in [No. of installments] equal monthly installments of …………………(amount) each within [term of loan] years, the first installment to be made on ……………..(date) and the subsequent payments to be made not later than the first day each month in arrears. (b) In the event that the 1st day of the month falls on a weekend or a public holiday, the payment shall be made not later that the next business day. (c) In the event of a delay on the payment of any installment, the delayed installment shall attract an interest of ( )%per annum. 3.2 Where the Mortgagor makes a payment over and above the required monthly installment, such payment would be treated as an advance payment and applied to future repayments of any payments payable under this Agreement unless the Mortgagor indicates that the extra amount should be regarded as a prepayment. 3. Where the Mortgagor makes a prepayment of ( )% or more of the Loan at any time during the mortgage, such a prepayment shall attract a penalty of ( ) of the amount prepaid. 3.4 In the event of any prepayment, the monthly installment of the Loan shall be adjusted accordingly to take effect from the second month following the month in which the prepayment was made. 18 19 Action by Originating Notice of Motion. Rules. 3.5 The Mortgagor shall pay an estimated Annual Percentage Rate of ( ) in addition to the principal and interest payable[mode of payment) 3.6 The Mortgagor shall also pay the additional charges provided in Schedule 2 hereto as Good Faith Estimates of the charges, fees and costs of this mortgage agreement. 4 Insurance 4.1 The Mortgagor shall insure and keep insured, at his own expense during the subsistence of this mortgage, the Property together with all fittings and fixtures attached thereto now or to be attached hereafter, against loss or damage by burglary, fire, earthquake, flooding or other natural disaster (and such other risks as the Mortgagee may from time to time in writing direct) with a reputable insurance company to be mutually agreed on between the parties, (in the names of both the Mortgagor and the Mortgagee) (and shall name the Mortgagee as the sole beneficiary and in accordance with the Mortgagee’s right to assign its rights under clause ( ) of this Agreement). 4.2 The Mortgagor shall be required to pay yearly insurance premiums in full prior at the commencement of the Mortgage and thereafter not later than fourteen (14) days before the expiry of such insurance cover. 4.3 The Mortgagor shall duly and punctually pay all premiums and money necessary for effecting and maintaining that insurance and the Mortgagor shall deposit evidence of such payments with the Mortgagee and at any time at the request of the Mortgagee produce the insurance policy and the premium payment receipts for the inspection of the Mortgagee or its duly authorised agent. 4.4 Where the Mortgagor fails to insure all or any part of the Property according to clause 4.1 of this Agreement, the Mortgagee shall be entitled to insure and keep insured the mortgaged property. 4.5 Where premiums are paid by the Mortgagee on behalf of the Mortgagor under clause 4.4 of this Agreement such premiums shall attract an annual interest rate of ( ) % and a default interest ( ) % and shall be payable as additional loan in [No. of installments] equal monthly installments from the date of payment of such premiums. 4.6 Any money received under any policy of insurance effected or maintained by the Mortgagor or on behalf of the Mortgagor by the Mortgagee, whether or not pursuant to the Mortgagor’s obligation under clause 3.4 shall be applied in making good the loss or damage in respect of which the money is received. 5 Restriction on transfer The Mortgagor shall not without the prior written consent of the Mortgagee at any time during the subsistence of this mortgage sell, lease let, part with possession or transfer all or any part of his interest in the property. 6 Mortgagor’s covenants The Mortgagor covenants with the Mortgagee as follows: (a) That the Mortgagor alone, or with the consent or concurrence of all other persons whose consent or concurrence is required, has full power to mortgage the property expressed to be mortgaged by him in the manner in which it is expressed to be mortgaged; (b) That if either or both the Mortgagee and persons deriving title through the Mortgagee enter into possession of the mortgaged property, the Mortgagor and every person concurring in the mortgage by his direction and every person deriving title through the Mortgagor (other than a person having an interest to which the mortgage is expressly made subject) shall not interfere with, interrupt or disturb the possession of such person in possession; (c) That the mortgaged property is freed and discharged from, or otherwise by the Mortgagor sufficiently indemnified against, all interests, encumbrances, claims and demands whatsoever, other than those to which the mortgage is expressly made subject; (d) That the Mortgagor and every person concurring in the mortgage by his direction, and every person deriving title through any of them, and every other person having or rightfully claiming any interest in the mortgaged property other than an interest to which the mortgage is expressly made subject will, from time to time and at all times on the request of the Mortgagee or any person deriving title through him, execute and do all such assurances and things for further or more perfectly assuring the title to the security interest as such person may reasonably request, the expenses in respect of this covenant to be borne by the Mortgagor during the life of the mortgage and thereafter by the person making the request; 20 21 (e) That the Mortgagor and every person deriving an interest through the Mortgagor, other than a person having an interest to which the mortgage is expressly made subject, will at all times during the life of the mortgage preserve, protect, repair and maintain the mortgaged property so as not to diminish its value below what is reasonably required as security for the performance of any act secured by the mortgage but which has yet to be performed; (f) That the lease is at the date of the mortgage a good, valid and effectual lease of the mortgaged property and is in full force, unforfeited and unsurrendered, and has not become void or voidable. (1 Ibid as provided in Schedule 2 (f-h only applicable when the mortgaged property includes a leasehold.); (g) That all the rents reserved by, and all the covenants, conditions and agreements contained in, the lease and to be paid, observed or performed by the Mortgagor and persons deriving title through him have been paid, observed and performed up to the time of the mortgage; (h) That the Mortgagor, or the person deriving title through him, will at all times during the continuance in force of the mortgage pay, observe and perform or cause to be paid, observed and performed, all rents reserved by the lease and all covenants, conditions and agreements contained in the lease, which he or they are bound to pay, observe and perform. 7 Mortgagee’s covenants 7.1 The Mortgagee covenants with the Mortgagor that: The Security hereby made shall be discharged when the Mortgagor performs all his obligations under this Agreement and undertakes to issue a written discharge to the Mortgagor in in the Form set out in Schedule 5 to the Home mortgage Finance Act, 2007, as soon as the Mortgagor has duly fulfilled all his obligations under this mortgage. 7.2 The Mortgagee shall furnish or deliver to the Mortgagor a (monthly/ quarterly/ annual) Statement of Account on the Loan payments on or before the [ ] day of (Month) of (period) and the Mortgagor may raise any queries on the statement if any and in the event that the Mortgagor raises any queries the Parties shall reconcile the accounts. 8 Mortgagee’s rights and powers 8.1 The Mortgagee shall hold all title documents relating exclusively to the Property and shall keep same whole, uncancelled and undefaced. 8.2 The Mortgagee acknowledges the right of the Mortgagor to the production of the tile documents and to the supply of copies of same. 8.3 The Mortgagee shall upon receiving a (duration of notice) notice permit the Mortgagor or its representative to inspect the title documents. 8.4 The parties agree that the Mortgagee has the right to irrevocably assign any of its rights under this Agreement to any third party without prior notice to the Mortgagor. 9 Events of default 9.1 Any breach of this Agreement shall amount to an Event of Default in addition to the following: (a) Where the Mortgagee is deemed to be in default under section 9 of the Home Mortgage Finance Act, 2007; (b) Where the Mortgagor dies, becomes bankrupt or makes any arrangement with his creditors generally or takes or suffers any similar action as a result of the debt; (c) Where any execution is levied upon the Mortgagor’s property; (d) Where the Mortgagor becomes of unsound mind; (e) Where the Mortgagor fails to comply with any of the terms, conditions covenants or obligations under this Agreement; or (f) Where any representation or warranty given by the Mortgagor to the Mortgagee is found out to be false. 22 23 10 Rights of Mortgagee upon default In the event of the occurrence of an Event of Default, the Mortgagee shall exercise any one or more his rights in accordance with the Home Mortgage Finance Act, 2007. 10.2 The parties agree that the Mortgagee’s right upon default by the Mortgagor may be exercised in the Mortgagee’s behalf by a trustee or any beneficiary to whom the Mortgagee’s rights might have accrued. 11 Termination This Agreement shall remain valid and may only terminate after the Mortgage is discharged and the Mortgagee has issued the written discharge required under clause ( ) of this Agreement. 12 Renewal of mortgage If the Mortgagor shall duly and punctually repay the principal money, interest and other money he has covenanted to pay to the Mortgagee in accordance with clause 3 of this Agreement then, if he so desires, the security hereby made shall be used to secure further advances not exceeding, in aggregate (amount) the Mortgagee shall give him at the original interest rate and priority and that the Mortgagor shall give at least (length of notice) months’ notice, in writing to the Mortgagee of his intention to take advantage of this provision. 13 Notice Any notice required to be served under this mortgage shall be sufficiently served on the Mortgagee if delivered either by hand and a receipt acknowledged in writing by the Mortgagor; or by leaving it for the Mortgagor with some person apparently over the age of eighteen years at such address and acknowledged in writing by such a person; or by pasting the notice on a reasonably noticeable part of the mortgaged premises; or sent by registered mail or by courier or to last known the address provided by the Mortgagor. 14 Stamping and registration The Mortgagor shall immediately after the execution of this Agreement, Cap 274 Register this Agreement in accordance with section 21 of the Registration of Instruments Act (cap 256). 15 Waiver Failure or neglect by either party to enforce at any time any of the provisions hereof shall not be construed or deemed to be a waiver of their rights under this Agreement nor shall it prejudice either party’s right to take subsequent action. 16 Severability If any provision of this agreement is held invalid or unenforceable by a court or other competent judicial authority, then such provision shall be deleted from this Agreement and the remaining provisions shall continue to have full force and effect. 17 Entire agreement This Agreement constitutes the entire and only agreement between the parties and supersedes all previous understandings, commitments and agreements whether oral or written relating to the Agreement. 18 Amendments Any term condition or provision contained in this Agreement may be amended upon the mutual consent of both parties and any such agreed amendment shall be in writing, executed by both parties and annexed to this Agreement. 19 Governing Law This Agreement is governed and shall be construed in accordance with the laws of Sierra Leone. 20 Jurat (applicable when Mortgagor is illiterate and/or blind) I…………………………(name and position of employee or representative of Mortgagee) declares that on…. day of……………..(month/year) I read and explained the contents of this Agreement to the Mortgagor herein, who is illiterate and/or blind in the…(language) language and he seemed perfectly to understand and approve of the contents before executing it. IN WITNESS WHEREOF the Mortgagor has set his hand and the Mortgagee has caused its hand and seal to be hereunto affixed on the month and year first above written. 24 25