Schedule I, Article 40: Article 40

MORTGAGE-DEED not being an AGREEMENT RELATING TO DEPOSIT OF TITLE-DEEDS, PAWN OR PLEDGE (No.6), BOTTOMRY BOND (No.16), MORTGAGE OF A CROP (No.41),RESPONDENTIA BOND (No.56), OR SECURITY BOND (No.57)— (a) when possession of the property or any part of the property comprised in such deed is given by the mortgagor or agreed to be given; (b) When possession is not given or agreed to be given as aforesaid. Explanation.— A mortgagor who gives to the mortgagee a power of attorney to collect rents or a lease of the property mortgaged or part thereof, is deemed to give possession within the meaning of this article. (c) when a collateral or auxiliary or additional or substituted security, or by way of further assurance for the above-mentioned purposes where the principal or primary security is duly stamped— for every sum secured not exceeding Rs. 1,000; and for every Rs. 1,000 or part thereof secured in excess of Rs. 1,000; and (d) (i) mortgage with banking companies that is to say simple or legal mortgage for banking companies or other financial institution when the entire finance is not based on interest; and (ii) in any other case EXEMPTION:— (1) Instruments, executed by persons taking advances under the Land Improvement Loans Act, 1883 (XIX of 1883), or the Agriculturists Loans Act, 1884 (XII of 1884) or by their sureties as security for the repayment of such advances. (2) Letter of hypothecation accompanying a Bill of Exchange. Proper stamp-duty: Three percent of the consideration equal to the amount secured by such deed. Three percent of the amount secured by such deed. Ten Rupees. One fifth of one percent that is to say 0.2% of the loan amount subject to a maximum of one hundred rupees. One fifth of one percent that is to say 0.2% of the loan amount.

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