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The Mortgage Extension Agreement is utilized when parties to an existing mortgage in India wish to extend its term beyond the original maturity date. This document is essential for situations where borrowers require additional time to repay their mortgage debt, whether due to financial circumstances or strategic business decisions. It must comply with Indian legislation, particularly the Transfer of Property Act 1882, Registration Act 1908, and relevant RBI guidelines. The agreement typically includes details of the original mortgage, property specifications, revised payment terms, and extended duration while ensuring the continuation of security interests. It's commonly used by banks, housing finance companies, and other financial institutions in India, requiring proper registration and stamp duty payment as per state regulations.

1. Parties: Identification of the mortgagor (borrower) and mortgagee (lender), including their full legal names, addresses, and any registration/identification numbers

2. Background: Recitals detailing the original mortgage agreement, its date, registration details, and the reason for extension

3. Definitions: Definitions of key terms used in the agreement, including references to terms defined in the original mortgage agreement

4. Extension of Term: Clear statement of the extension period, new maturity date, and confirmation that all other terms of the original mortgage remain in effect

5. Interest Rate: Specification of the interest rate applicable during the extension period

6. Repayment Terms: Details of the revised repayment schedule, including EMI amounts and payment dates

7. Representations and Warranties: Updated confirmations from the mortgagor regarding their capacity, property title, and financial condition

8. Security Confirmation: Reaffirmation that the original security continues to secure the extended mortgage

9. Costs and Expenses: Allocation of costs related to the extension agreement, including registration and stamp duty

10. Governing Law and Jurisdiction: Confirmation of Indian law as governing law and specification of jurisdiction for disputes