This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Know all men by these presents: That A. B., of the --------- County of
--------- and State of ---------, in consideration of --------- [insert consideration] to him paid by C. D., of the ---------County of --------- and State of ---------, the receipt of which is hereby acknowledged, does hereby Bargain, Sell and Convey to the said C. D., his executors, administrators and assigns, the following described goods and chattels, to-wit: --------- [insert description of property].
The condition of this conveyance is such that if said A. B. shall pay, or cause to be paid, to said C. D. --------- [insert as condition the obligation to secure which the mortgage is given], then this conveyance shall be void; otherwise it shall be in full force.
It is further agreed that if default be made in the above conditions, or any part thereof, or if any secreting, or removal from their location, any abuse, or misuse, any sale, any seizure whatever by any process of law of said goods or chattels, or of any part of them, be either made or attempted by said mortgagor -, or by any person or persons claiming under him or in behalf of either, or by or in behalf of any creditor or creditors of said mortgagor -, or if from any other cause the security shall become inadequate, then said mortgagee-or successors may take immediate possession of said property, or of any part thereof, wherever found, and sell same at public or private sale, for the highest price he can obtain, and pay indebtedness and expenses. And it is further agreed that said mortgagee - or successors may insure said property for his benefit, during the continuance of this mortgage, and at the expense of the said mortgagor -, the cost of said insurance to be secured by this mortgage; and further, that in default of payment of said money, or any part thereof, then said mortgagee - or successors may sell said property at public or private sale, for the highest price he can obtain, and shall apply the proceeds of said sale to the payment of said indebtedness and interest thereon, and of all reasonable and necessary costs, including the cost of filing, recording and refiling this mortgage, and said costs of insurance, and shall pay the residue, if any, to said mortgagor - or successors. Otherwise said property is to be and remain in the peaceable possession of said mortgagor - or legal representatives.
And the said mortgagor hereby covenants and agrees to, and with said mortgagee, his executors, administrators and assigns, that he is the true and lawful owner of the above described property, and has good right to sell, convey and incumber the same; and that the same is free from all incumbrances whatsoever.
In witness whereof, etc.