10. A Schedule of all, or at any rate of all the most important of the deeds which convey the entirety of the property intended to be mortgaged must be given.
11. The depositor's signature to follow the Schedule.
12. Signature to be witnessed.
13. Memorandum to be stamped.
If the form is signed by several persons clause No. 4 should be " from us, or either of us, whether alone or in conjunction," etc.
The words of the form are varied when, for example, John Brown deposits title deeds to secure the account of John Jones. There should also be clauses to the effect that the banking company may grant time or other indulgence to or compound with the said John Jones without affecting this security.
The depositor, John Brown, should agree that all dividends, compositions, and pay ments shall be taken and applied as pay ' ments in gross, and that the security shall extend to any ultimate balance which shall remain due.
Sometimes a memorandum of deposit includes the appointment of a bank official as the depositor's attorney, with power to sell the property. In such a case the docu ment must be under seal and be stamped the same as a legal mortgage. The clause of appointment may be as follows : " I hereby irrevocably appoint John Brown the present General Manager of the said banking com pany, or such other person as shall from time to time be appointed by deed by the said banking company, to be my Attorney for me and in any name and on my behalf and as my act and deed or otherwise to sign, seal, and deliver, or otherwise perfect any deed or assurance, and to do every act which may be required or may be deemed proper for exe cuting and delivering to the said banking company their successors and assigns such legal mortgage of the premises herein men tioned, or for the purpose of selling the said hereditaments and premises or any part thereof under the power of sale conferred by these presents and the Statute in that behalf in order to vest in the purchaser or purchasers the legal estate and all other my estate and interest in the said premises."
If a banker finds it necessary to realise his security, and his document of charge is merely a memorandum of deposit under hand, he will be obliged to apply to the Courts for power to sell the property and appoint a receiver, unless the debtor will, in accordance with his agreement in the memorandum, sign a legal mortgage giving the banker a power of sale. If the document of charge is a legal mortgage, or memoran dum of deposit under seal including a power of sale, the property can, after demand has been made, in accordance with the terms of the deed, and the money is not repaid, be disposed of, or a receiver and manager appointed to look after the estate until a sale can be effected, without recourse to the Courts.
In addition to being used for the deposit of deeds, some bankers take a memorandum of deposit when certificates of stocks or shares are given as security. When this is done, the document should include a clause agree ing to transfer the stocks or shares into the name of the bank or its nominees when requested so to do.
As to the stamp duties see EQUITABLE