Manual of Bank

i
(For Internal Use Only)

UCO BANK
DOCUMENTATION MANUAL
LAW
JULY, 2007
ii
FOREWORD
Lending is one of the important activities in banking. In all lending transactions, there is an
agreement between the lender bank and the borrower customer. In banking parlance such
agreements are written statements, declaring certain rights, obligations, responsibilities and
liabilities of various parties involved in the transactions and matters incidental thereto and
which are admissible in law as a piece of evidence called Documents. Thus, documents
form vital records for all lending operations/transactions and are to be taken correctly by a
banker. Any lapse of shortcoming in documents may cause substantial losses to the Bank.
Although the Banks Manual of Instructions on Advance has listed the documents to be taken,
there is a need for assembling all of them in one place for ready reference by the staff
members before disbursal of sanctioned credit facilities.
I am pleased that Head Office, Law Department, under the leadership of Shri P. K. Das,
General Manager, has undertaken the task of putting the various documents in a separate
Manual of Documentation. The task was no doubt stupendous, but an urgent requirement.
The volume prepared by them includes all the documents in use at our Bank with guidelines
how to execute them in various credit dispensations.
I am sure all the staff particulrly the Branch Managers will be benefited by the Manual which
will enable them to ensure proper documentation for advances.
(V. SRIDAR)
Dated, Kolkata
4th July 2007.
Je. e"h
+ |- +++ |+-+
V. SRIDAR V. SRIDAR V. SRIDAR V. SRIDAR V. SRIDAR
Chairman & Managing Director
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10, rc. ti b. mhKe,
fUtutfUt;t-700 001
UCO BANK
Head Office
10, B. T. M. Sarani
Kolkata-700 001
Phone : 2225 4094, 2225 3350 Fax : 2225 3986 E-mail : cmdsec.calcutta@ucobank.co.in
iii
UCO BANK
Head Office : Law Department
1, R. N. Mukherjee Road, 3rd fl.,
Kolkata-700 001.
P K DAS
General Manager [Law]
PREFACE
Taking correct and proper documents is a sine qua non while disbursing loans and advances.
In the Banks Manual of Instructions, Volume-6, General Advances, Chapter-14 deals with
various documents to be taken by the branches. The contents therein do not cover all types
of documents. In the meantime, the Bank has introduced various innovative credit schemes
in the competitive market scenario. This has necessitated to put in one place all types of
existing documents, vis--vis the respective credit facilities and also required guidelines for
executing those documents correctly. Hence, a need was felt to bring out a comprehensive
Manual of Documentation incorporating all documents for use as ready reference by the
members of staff of the Bank.
Our revered Chairman & Managing Director, Shri V. Sridar directed the Head Office, Law
Department to undertake the task of preparing a documentation manual keeping in view the
above necessities. Accordingly a team of legal experts comprising of Shri B. K. Sil, Ex. Asstt.
General Manager (Law), Shri S. Bhattacharyya, Ex. Asstt. General Manager (Law) and Ms.
Tulika Ghosh, Law Officer was formed in our department under overall supervision of the
General Manager (Law) to write the Manual.
The Manual of Documentation is a compilation of all the existing formats of documents to
be taken by branches while disbursing loans and advances to different types of borrower in
respect of different credit facilties sanctioned to them.
There are 9 (nine) chapters in this Manual, which, inter alia, include the basic definition,
purpose, importance, various formats of existing documents in use in the Bank and most
importantly the guidance to execute different documents correctly so that they may be
produced in the courts of law as evidences whenever necessary.
It has been our experience that branches often lack in initiating steps to obviate law of
limitation, creation of charges and registration of charges as per requirements of existing/
amended rules. This manual has provided guidance to deal with those situations. We have
tried to compile all existing documents in respect of all types of credit facilities extended by
the Bank as per the latest circulars issued by Head Office.
iv
In a dynamic situation as we are, there may be changes/modifications giving rise to innovative/
new documents. We shall strive to bring those as addenda and/or amendments as and when
warranted.
We have taken all care against factual errors and typographical mistakes. Nevertheless, if
any omission is noted, we shall be thankful to be pointed out about those for our correction/
clarification.
We express our deep gratitutde to CMD for all the encouragement given to bring out this
manual and thank the team for their hard work. Our efforts will be worthwhile if this Manual
comes handy and helpful for the staff members of the Bank for whom it has been brought
out.
(P. K. Das)
General Manager (Law)
Dated, Kolkata
4th July 2007.
v
CONTENTS
CHAPTER 1
INTRODUCTION
1. General ................................................................................................................. 1
2. What is a Document ........................................................................................... 1
3. Purpose ................................................................................................................ 1
4. Requirements of a Document ............................................................................ 2
5. Importance of Documentation............................................................................. 3
6. Some Important Documents ............................................................................... 3
CHAPTER 2
ADVANCE AGAINST GOODS AND WAREHOUSE RECEIPTS
General ........................................................................................................................ 11
CHAPTER 3
ADVANCE AGAINST IMMOVABLE PROPERTIES
1. General ................................................................................................................. 12
2. Annexure I : Draft of Letter of Undertaking to be obtained from the
applicant for advances against Immovable property. ............. 13
3. Annexure II : Draft of Letter authorising a person to deposit Title
Deeds of Property for creating Equitable Mortgage. ............. 14
4. Annexure III : Draft of entry to be made in Equitable Mortgage
Register in respect of property standing in the
name of one or more individuals. ........................................... 15
5. Annexure IV : Draft of entry to be made in Equitable Mortgage
name of partnership firm. ........................................................ 16
6. Annexure V : Draft of Entry to be made in Equitable mortgage
name of Limited companies. ................................................... 17
UCO BANK DOCUMENTATION MANUAL
vi
7. Annexure VI : Draft of Letter of Deposit of Title Deeds to be obtained
from the mortgagor(s). ............................................................. 18
8. Annexure VII : Draft of Letter to be obtained from mortgagor(s) for
covering increase in limits. ...................................................... 19
9. Annexure VIII : Draft of entry to be made in Equitable Mortgage
Register owing to increase in limits. ....................................... 20
10. Annexure IX : Draft of letter to be obtained from mortgagor(s)
for deposit of additional Title Deeds with or without
increase in limits. ...................................................................... 21
CHAPTER 4
ADVANCES AGAINST FIXED DEPOSIT RECEIPTS, KUBER YOJANA RECEIPTS, MONEY
MULTIPLIER (UCO DOUBLE/UCO TREBLE) RECEIPTS, LAKHPATI DEPOSIT RECEIPTS,
DEPOSIT CERTIFICATES, FLEXIBLE-FIXED DEPOSIT, RECURRING DEPOSIT(RD)/MONEY
BACK RECURRING DEPOSITS (MBRD), LIFE INSURANCE POLICIES, UNITS ISSUED BY
UNIT TRUST OF INDIA, SHARES
1. Advances Against Fixed Deposit Receipts, Kuber Yojana Receipts,
Money Multiplier (Uco Double/Uco Treble) Receipts, Lakhapati
Deposit Receipts, Deposit Certificates ............................................................... 23
2. Loan/advances against Flexible-Fixed Deposit .................................................. 23
3. Advances against Recurring Deposit(RD)/Money Back Recurring
Deposits (MBRD) ................................................................................................. 23
4. Advances against Life Insurance Policies.......................................................... 23
5. Advances against Units Issued By Unit Trust of India .................................... 23
6. Advances against Shares ................................................................................... 23
CHAPTER 5
REGISTRATION OF CHARGES WITH THE REGISTRAR OF COMPANIES
MCA 21 e GOVERNANCE PROGRAMME
1. General ................................................................................................................. 24
2. Annexure 1 : Form 8 .................................................................................... 25
3. Annexure 2 : Form 17 .................................................................................. 30
vii
CHAPTER 6
UCO RENT SCHEME FOR FINANCING RENTAL RECEIVABLES
1. General ................................................................................................................. 32
2. Annexure: Agreement for Assignment of Rent ................................................. 33
CHAPTER 7
ADVANCES ON CONSORTIUM BASIS : SINGLE WINDOW CONCEPT OF
LENDING (SWCL) BY BANKS DOCUMENTATION
1. General ................................................................................................................. 38
2. Annexure 1 : Resolutions to be passed by the Borrowers
Board of Directors .................................................................... 39
3. Annexure 2 : Resolutions to be passed by the B Banks
Board of Directors .................................................................... 44
4. Annexure 3 : Resolutions to be passed by the Boards of C Bank,
D Bank and E Bank ............................................................. 46
5. Annexure 4 : Letter of Authority to be given by B Bank, C Bank,
D Bank and E Bank to A Bank (the leader Bank) .......... 47
6. Annexure 5 : Letter of Authority to be given by C Bank, D Bank
and E Bank to B Bank ......................................................... 49
7. Annexure 6 : Working Capital Consortium Agreement ................................. 51
8. Annexure 7 : Joint Deed of Hypothecation ................................................... 83
9. Annexure 8 : Inter Se Agreement between A Bank, B Bank, C Bank,
D Bank and E Bank ................................................................ 98
10. Annexure 9 : Revival Letter ............................................................................ 108
11. Annexure 10 : Working Capital Facilities ......................................................... 109
CHAPTER 8
UCO SHELTER SCHEME
1. List of Documents for UCO Shelter for Individuals .......................................... 110
viii
2. Appendix I : Letter for giving in-Principle Sanction - Annexure III ......... 112
3. Appendix II : Format for Report on the Visit of the site of the
proposed property Annexure IV............................................ 113
4. Appendix III : Process Note for in-Principle and Regular Sanction
Annexure VI ............................................................................ 115
5. Appendix IV : Format for Regular Sanction Advice Annexure IX .......... 119
6. Appendix V : ATTESTATION MEMO............................................................ 123
7. Appendix VI : Statement of means Annexure II(ii) ................................... 124
8. Appendix VII : Format of letter to be issued to the Transferor Bank
after sanction of Loan (in case of Take-Over)
Annexure VIII .......................................................................... 127
9. Appendix VIII : Loan Agreement (AHL-6) ...................................................... 129
10. Appendix IX : Revival letter for the purpose of extending the
limitation period (AHL-7)........................................................ 146
11. Appendix X : Revival letter for the purpose of extending the
limitation period (AHL-8)........................................................ 147
12. Appendix XI : Letter of Assignment for LIC Policy (AHL-9) ...................... 148
13. Appendix XII : Recital (to be entered in the Banks Equitable
Mortgage Register) evidencing creation of such
mortgage (AHL-10) ................................................................ 149
14. Appendix XIII : Confirming Letter (by Regd. Post) of such
mortgage (AHL-11) ................................................................ 151
15. Appendix XIV : Lawyers Search Report on letter head regarding
good and marketable title of the property (AHL-12) .......... 153
16. Appendix XV : Letter of Guarantee (AHL-13) ............................................... 154
17. Appendix XVI : Letter of undertaking an indemnity by the applicant/
mortgagor in cases of agreement to purchase a flat
from promoter/builder (AHL-14) ............................................ 160
18. Appendix XVII : Letter from the Society in case of Co-operative
Flats (AHL-15) ........................................................................ 162
19. Appendix XVIII : Letter of Authority of appropriation of retiring benefits
from borrower to his employer (AHL-16) ............................. 163
20. Appendix XIX : Letter by the mortgagor/employee to his employer for
deduction of EMI (AHL-17) ................................................... 165
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21. Appendix XX : Letter from builders/promoters/owners (on letter head)
assuring good title and other assurances (AHL-18) ........... 166
22. Appendix XXI : Letter requesting creation of equitable
mortgage (AHL-19) ................................................................ 168
23. Appendix XXII : Affidavit-cum-undertaking by the applicant agreeing
to deposit the sale deed when obtained (AHL-20) ............ 169
24. Appendix XXIII : Non encumbrance certificate and detailed report on
title (to be submitted on Advocates letter head)
Annexure V............................................................................. 171
25. Appendix XXIV : Verification of present employment Annexure II(i) .............. 172
26. Demand Promissory Note (i)A1 (ii) A1A (iii)A2 (iv) A2A.................................
CHAPTER 9
SCHEME FOR FINANCING REAL ESTATE PROMOTERS/DEVELOPERS
1. General ................................................................................................................. 174
2. Annexure 1 : Agreement for Cash Credit to be entered into
between the Borrower/ Developers and the Bank ................. 175
3. Annexure 2 : A Tripartite Agreement to be entered into between
the Borrower/ Developer, the Intending Purchaser
and the Bank ............................................................................ 196
CHAPTER 10
UCO TRADERS SCHEME
General ........................................................................................................................ 203
APPENDIX
1. A 1 .................................................................................................................... 206
2. A 2 ....................................................................................................................
3. A 3 .................................................................................................................... 207
4. A 4 .................................................................................................................... 208
x
5. A 5 .................................................................................................................... 210
6. A 6 .................................................................................................................... 214
7. Schedule of Pledge ............................................................................................. 216
8. A 7 .................................................................................................................... 218
9. A 8 .................................................................................................................... 220
10. A 8A................................................................................................................ 230
11. A 8B ................................................................................................................. 234
12. A 9 .................................................................................................................... 238
13. Schedule of Hypothecation ................................................................................. 253
14. Form of Suppemental Deed of Hypothecation of Goods for
increase in Limit/Facility without Additional Property as Security ................... 255
Additional Security for an Increase in Limit/Facility .......................................... 256
Additional Security for an Existing Limit/Security.............................................. 258
17. A 9A ................................................................................................................. 260
18. A 9B ................................................................................................................. 283
19. A 9C ................................................................................................................. 293
20. A 9 D ............................................................................................................... 312
21. A 12.................................................................................................................. 319
22. A 12A ............................................................................................................... 321
23. A 21.................................................................................................................. 326
24. A 21A ............................................................................................................... 329
25. A 27.................................................................................................................. 334
26. A 36.................................................................................................................. 348
27. A 38.................................................................................................................. 354
28. A 38 (Revised) ................................................................................................. 358
29. A 38A ............................................................................................................... 360
30. A 39.................................................................................................................. 362
31. A 40.................................................................................................................. 364
xi
32. A 43.................................................................................................................. 367
33. A 43A ............................................................................................................... 370
34. A 47.................................................................................................................. 373
35. A 49 (Revised) ................................................................................................. 374
36. A 49B ............................................................................................................... 379
37. A 58.................................................................................................................. 390
38. A 65.................................................................................................................. 393
39. A 68.................................................................................................................. 394
40. A 88B ............................................................................................................... 400
41. A 93.................................................................................................................. 405
42. A 97.................................................................................................................. 406
43. A 98.................................................................................................................. 408
44. A 100................................................................................................................ 409
45. A 101................................................................................................................ 413
46. A 103................................................................................................................ 416
47. A 103A ............................................................................................................. 433
48. A 104................................................................................................................ 440
49. A 105 (Agri) ..................................................................................................... 449
50. A 107................................................................................................................ 471
51. A 107A ............................................................................................................. 476
52. A 109................................................................................................................ 479
53. FR 2 (Revised) ................................................................................................ 488
54. FR 126 ............................................................................................................. 496
55. S 14.................................................................................................................. 498
56. JAL 70 .............................................................................................................. 500
xii
tuFefUhK vwr;fUt
rJr" / LAW
(fuUJt ytk;rhfUWvgtudnu;w)
(FOR INTERNAL USE ONLY)
"tl fUtgtotg/ HEAD OFFICE
rJr" rJCtd
LAW DEPARTMENT
10, ce. xe. Yb. mhKe(7Jtk;t), fUtutfUt;t-700 001
10, B. T. M. SARANI (7th Floor), KOLKATA-700 001
Printed by : A. K. Banerjee & Bros.
Kolkata-700 001
Kolkata-700 001
tuFefUhK vwr;fUt
rJr" / LAW
(fuUJt ytk;rhfUWvgtudnu;w)
(FOR INTERNAL USE ONLY)
"tl fUtgtotg/ HEAD OFFICE
rJr" rJCtd
LAW DEPARTMENT
10, ce. xe. Yb. mhKe(7Jtk;t), fUtutfUt;t-700 001
10, B. T. M. SARANI (7th Floor), KOLKATA-700 001
Kolkata-700 001
Kolkata-700 001
1
CHAPTER 1
INTRODUCTION
General
This Documentation Manual has been intended for the convenience of the branches to com-
pile all the existing formats of documents to be taken by branches while disbursing advances
to different types of borrowers, in respect of different credit facilities sanctioned to them.
As regards documentation, renewal of documents, advances against goods, and other cur-
rent assets including book debts and immovable properties and also against Term Deposits,
LIC Policies, NSCs, Govt. Securities, Shares, Debentures and also for recovery of advances
and legal action and execution of decree, detailed guidelines have already been provided in
Banks Manual of Instructions, Vol-VI, Advances (General), which the branches are advised
to scrupulously follow. Hence it has not been felt necessary to repeat the same in this
Manual of Documentation.
What is a Document
Section 3 of the Evidence Act defines Documents as any matter expressed or described
upon any substance by means of letters, figures or marks or by more than one of those
means which is intended to be used for the purpose of recording that matter. Therefore,
document is a written statement of facts declaring certain rights, obligations, responsibilities
and liabilities relating to or concerning or in respect of the transactions or the parties or the
ownership and / or possession of the property and for matters incidental thereto and which
is admissible in law as a piece of evidence or a record of bargain/transaction.
Purpose
The main purpose of obtaining documents is to secure the advances and enable the Bank
to recover the dues through legal means when all other recourses fail. Documentation proc-
ess attempts to ensure the following:
Documentation assumes special significance in the following instances:
a) Identify the parties.
b) Identify the nature and extent of security
c) For providing evidence of the transactions and borrowers debt to the Bank
CHAPTER-1
2
d) To prove that the charge created on the Borrowers assets as security for the debt is
maintainable and enforceable.
e) For settling/ crystallising the terms and conditions
f) For defining the rights and liabilities of parties or under the securities
g) For creating the charges/encumbrances
h) For protecting the priority of charges
i) For computing the period of limitation
j) For enforcing the rights under the documents.
k) To claim against the legal representatives, official receiver/liquidator, etc.
l) To prove Banks prior charge in respect of assets charged to the Bank against the claims
by Government Departments, other creditors, etc.
m) To ensure that the Banks right to enforce the recovery of the debt through a court of
law is not allowed to become time-barred under the law of limitation.
As documents form the primary evidence in any dispute between the Bank and the Bor-
rower, it is imperative that they are correct and valid at all times. Documentation, therefore,
is a continuous and on-going process covering the entire period of advance.
Requirements of a Document
A document to serve the above purposes and objects must contain correct description of
the parties, mention the actual place of execution, mention correct date of execution, con-
tain accurate description of the properties/securities, contain proper recitals / covenants, pro-
vide for consideration for the transaction, stipulate the terms and conditions of repayment,
contain all other essential terms and conditions, be duly stamped and must be registered
and attested wherever the Law requires the document to be so registered and attested. The
documents to be executed by the Borrower(s) / Guarantor(s) in favour of the Bank depends
upon the type of charge (Hypothecation, Pledge, Mortgage, etc.), type of the advance (De-
mand Loan, Cash Credit, Term Loan, etc.), nature of the security (movable or immovable,
actionable claims, etc.) and finally upon the constitution of the Borrower(s) / Guarantor(s)
(Individual, Partnership Firm, Company, Association of Persons, Trust, HUF, etc.). While ob-
taining the security documents, regard must be had to the constitution of the Borrower(s) /
Guarantor(s) and its / their authority and competence to execute the documents, the nature
and type of securities being the charge, legal nature of the charges and applicable laws
thereto.
CHAPTER-1
3
Importance of Documentation
The Loan / security documents are of crucial importance to the Bank in respect of all loans
and advances as they constitute the primary evidence in any legal proceedings between the
Bank and the Borrower(s)/Guarantor(s). In the absence of properly executed documents, it
may be very difficult for the Bank to succeed in any suit filed in a Court of Law for enforc-
ing its rights under the documents. The legal protection and judicial adjudication always re-
quires and depends upon valid documents. Documentation will succeed in fulfilling its pur-
pose only when the following requirements are met
(1) The owing of the debt to the Bank by the Borrower is established by documents
(2) The charge created on the Borrowers assets as security for the debt is preserved,
protected, perfected and maintained in accordance with the law and
(3) The Banks right to enforce the security for recovery of the debt through Court of Law
is not barred by expiry of limitation under the Law of Limitation.
Some Important Documents
While granting loans/advances to a borrower, the bank obtains several documents. Nature of
some of the important documents as well as the objects for obtaining such documents are
enumerated below in short:
1. Demand Promissory Note (A1 and A2)
A DP Note (taken by Banker) is an instrument in writing, executed by the borrower, in
favour of the Bank, containing an unconditional undertaking to pay the amount he
borrowed from the Bank, as and when the Bank demands it, along with interest at
specified rate. A DP Note is always stamped with Revenue Stamp and the same should
be cancelled by writing of the name or initials of the executant on or across the stamp
with the date of his so writing.
2. Letter of Continuity (A-3)
In case of cash credit/over draft advances, this document is taken along with DP Note.
The object for taking this document is to keep alive the DP Note, inspite of the fact
that the balance in the cash credit/over draft account fluctuates and also goes into credit
at times.
3. Letter of Lien (A-4)
This document is taken while granting advances against shares, National Savings
CHAPTER-1
4
Certificate, Post Office Time Deposit, Govt. Promissory Notes, Debentures, Unit Trust
Certificates and the like. It is to be stamped as an agreement.
4. Partnership Letter (A-5)
Partnership Letter is taken in case of advances to Partnership Firms who do not have
Partnership Deeds. Where there is no written Partnership, it is difficult to prove the
existence of a Partnership Firm when occasion demands. A-5 is a declaration from all
partners regarding the existence of the Partnership Firm. This also specifies the Joint
& Several character of liability of the partner as also their power to bind other partners.
5. Temporary Mandate Form (A-6)
When the borrower authorises another person to operate cash credit/ over draft account
for a temporary period, this document is executed by him. This also contains the
specimen signature of the person so authorised. This document should be stamped as
an agreement.
6. HUF Letter (A-7)
HUF letter is taken when the bank grants loan and advances to Hindu Undivided Family.
This document puts on record the name of the Karta and other adult Co-parceners.
This also specifies their liability as also their power to bind all members. For all practical
purposes this document serves the purpose of a resolution.
7. Agreement of Pledge (A-8)
This document is taken while granting loan and advances against security of pledge of
goods. It is stamped as an agreement. The securities in this document should be
described only in general term without giving any details of their actual quantity, value,
mode of packing etc. When an account is secured by pledge of movables, the period
of limitation for recovery of monies due under such an account would be 3 years from
the close of the year in which the last item of debit or credit is admitted or proof in
case of cash credit account and in case of demand loan account, the period of limitation
would be 3 years from the date when the loan is made. It may, however, be noted
that as pledgee the bank has a right to sell the pledged goods at any time in its
discretion on reasonable notice to the Borrower and appropriate sale proceeds towards
its dues without intervention of court. There is no period of limitation for such sale.
But if there is a shortfall in the account after such sale, the Bank will not be able to
recover it from the Borrower personally unless the suit to recover such shortfall is filed
in court within the prescribed period of limitation as stated above. Agreements of pledge
CHAPTER-1
5
are required to be acknowledged once in every 3 years.
The State Government has remitted the stamp duty payable on a document of pledge.
But as a document of pledge contains other agreements, it is stamped with duty as
an agreement.
8. Form of Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility
for adult property as security (A-8A)
This document is taken when the Bank enhances the existing limit/facility granted to
the Borrower for additional property pledged as security.
9. Form of Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility
without Additional Property as Security (A-8B).
This document is taken when the Bank enhances the existing limit/facility granted to
the Borrower without additional property pledged as security.
10. Agreement of Hypothecation (A-9)
This document is taken while granting loans and advances against security of
hypothecation of goods. It is stamped as an agreement.
It may be pertinent to point out here that stamp law as applicable to certain states
also provides for payment of ad valorem stamp duty on the document of hypothecation.
Hence, in the states, which provide for payment of ad valorem stamp duty on the deed
of hypothecation, in such states, the deed of hypothecation, if executed and/or acted
upon there, would attract ad valorem stamp duty as prescribed for deed of
hypothecation.
11. Hypothecation & Book Debts to secure Demand Cash-credit (A-9B)
This document is taken when the Bank makes an advance and/or agrees to grant
accommodation to the Borrowers to open a Cash Credit account in the books of the
Bank.
12. Composite Agreement for Working Capital/Term Loan Facilities and Hypothecation
(A-9C)
This document is obtained when the Bank grants a Composite Loan to the Borrower
under the scheme of Prime Minister Rozgar Yojana (PMRY).
CHAPTER-1
6
13. Agreement for extension of Charge by way of Hypothecation over Current Assets
to secure Non-Fund Based Facilities (A-9D)
This document is obtained when accommodation by way of cash credit facility and other
additional facilities are granted to the Borrower and the Borrower agrees that the first
charge created by hypothecation will also extend over the additional facilities.
14. Letter of Acknowledgement - cum - Balance Confirmation (A-12)
The purpose of taking this document is two fold:
a. It serves as an acknowledgement of debt.
b. It links the old documents with the new ones.
There is a difference between the purpose for renewal of limit and the purpose for
which the documents get renewed. Renewal of limit may be done within one year
according to the practice of the Bank. It gives an opportunity to the Bank to review
the account to verify whether the party is conducting the account satisfactorily. If the
Bank is satisfied as to the conduct of the account it may renew the limit or otherwise
it may recall the advance. The purpose behind the renewal of documents is to save
the advance from being time-barred. As such the documents must be renewed within
a period of 3 years. But it is not necessary to renew the documents at the time of
renewal of limit unless there has been a change in the limit or on terms and conditions
of the limit. This is obtained at the time of renewal of the documents. The document
is to be stamped as an acknowledgement and the borrower has to sign on the Revenue
Stamp of requisite value.
15. Agreement of Bills Purchase (A-20)
This document is taken by granting of Bill Purchase facility/advance against Bills in
course of collection. A-20 is an agreement regarding bills purchased or advances in
course of collection of bills. It simply lays down the terms and conditions on which the
Bills Purchased facility are granted to the party. In case of Bills purchased, the Bills
are endorsed in favour of Bank and the Bank becomes a holder-indue-course and
has a right to sue the party concerned on the instrument itself. The Bank has recourse
against the party for whom the bills have been purchased and normally in case of
dishonour the party is asked to reimburse the amount and on failure to do so, his
account is debited. If the full amount is recovered by debiting the account, the matter
ends there. But if it is not, an overdraft would be created and this will have to be
recovered within a period of 3 years otherwise it will become time- barred. Even
CHAPTER-1
7
otherwise the suit on the instrument must be filed within a period of 3 years. In order
to save limitation confirmation of balance is to be obtained. A-20 does not require
renewal. It is to be stamped as an agreement.
16. Letter of Guarantee (A-21/A-21A)
This document is obtained from the guarantor whenever loans and advances are
sanctioned on the guarantee of a third person. A-21 is obtained from the guarantor
when the borrower is either a company or a firm. A-21A is obtained from the guarantor
when the borrower is an individual. Strictly in law, it should be stamped as an agreement
plus indemnity. But in practice, it is stamped as an indemnity only.
17. Consumer Loan Agreement (A-27)
This document is taken while granting consumer loan. The borrower as well as the
guarantor sign this document on all pages. This document is to be stamped as a
guarantee cum- agreement.
18. Agreement for Transport Loan (A-36)
This document is taken while granting Transport Loan. This document is signed by the
borrower as well as the guarantor on all pages.
19. Letter of Lien on Fixed Deposit Receipt (A-38)
This document is taken while granting advances against the security of Fixed Deposit
Receipt. When the advance is granted to the Depositor this document need not be got
stamped. In case of advance to a person other than the depositor, it should be stamped
as an agreement.
20. Agreement for advances against Fixed Deposit Receipt not belonging to the
Borrower (A-39)
This document is taken from a borrower who borrows against the security of a Fixed
Deposit Receipt belonging to other person. It is to be stamped as an agreement.
21. Power of Attorney relative to Supply Bills on Government (A-40)
This document is obtained from the borrowers while granting advances against
government supply bills. This is an irrevocable Power of Attorney granted by the borrower
in favour of the Bank empowering the latter to sign, present and submit supply bills
on behalf of the borrower to the Government Departments concerned and also to obtain
payment thereof. This document is to be stamped as a Power of Attorney.
CHAPTER-1
8
22. Letter of Waiver (A-47)
This document is obtained from the borrower whenever the advances are granted against
DP Notes. As per section 64 of Negotiable Instruments Act, 1881, the Promissory Note
must be presented for payment to the maker. In Banks case, the maker is always the
borrower. If it is not presented to the borrower he cant be held liable for the amount.
As it is very difficult for the Bank to present the DP Notes to the borrower for payment
of their dues, the Bank takes such a letter from the borrower. By this letter the borrower
waives the condition of presentation of the DP Note to him and he undertakes to make
payment of the amount due under the DP Note without the same being presented to
him.
23. Agreement for Education Loan (A-49)
This document is taken while granting loan under Banks Education Loan Scheme. Both
the borrower and guarantor sign this document. This is to be stamped as an agreement-
cum-guarantee.
24. Agreement-cum-Declaration for loan against LIC Policy (A-58)
This document is taken while granting loan against the security of LIC Policy. Strictly
speaking this document need not be stamped but it is preferable to get it stamped as
an agreement. No charge on security is created by this document. For that the Policy
is to be assigned by the borrower in favour of the Bank.
25. Counter Guarantee (A-88B)
This document is obtained from the borrower whenever Bank executes a guarantee to
the third party at the request and for the sole benefit of the borrower. When the Bank
executes guarantee to the third party it undertakes full obligation under the guarantee.
In case of borrowers default in fulfilling his obligation to the third party, guarantee may
be invoked against the Bank. This document is a counter-guarantee given by the
borrower to the Bank. On the strength of this document, the Bank can recover from
the borrower all losses, damages, costs, charges and expenses incurred/ sustained by
the Bank in connection with the fulfilment of the terms of the guarantee executed by
it. Although this document is known as a counter-guarantee, yet it is more in the nature
of a counter-indemnity. Hence, it is better to get it stamped as an indemnity.
26. Format of Permanent/Omnibus Counter Guarantee
By this document, the Borrower counter guarantees the entire guarantee limit sanctioned
CHAPTER-1
9
by the Bank and there is no necessity of obtaining Counter Guarantee (A-88B) on each
and every occasion when Bank issues guarantees on behalf of the Borrower.
27. Deed of Simple Mortgage (A-103/A-103A)
A-103 is taken when the Bank decides to obtain collateral security of simple mortgage
of land and building while granting agricultural advances.
A-103A is also taken as above, but it is taken only while granting Cash Credit facility
to farmers for cultivation of crops.
These documents have got to be witnessed by at least two witnesses before registration.
These documents have got to be registered with the Registrar of Assurance of the area
where the property is situated. These documents attract advalorem stamp duty
depending on the amount secured.
28. Agreement of Hypothecation of Pump Set (A-104)
This document is obtained from the borrower while granting loan for the purchase of a
Pump Set. The pump set stands hypothecated to the Bank on the strength of this
document. This is to be stamped as an agreement.
29. Hypothecation of Standing Crops (A-105)
This document is taken from the borrower at the time of agricultural advances (e.g.
Crop Loan, Pump Set Loan, Tractor Loan, Dug-well Loan, Land Development Loan,
Other Agricultural Implements Loan etc.) when it is decided to create hypothecation
charge on standing crops as an additional security. This document is to be stamped
as an agreement.
30. Agreement of Hypothecation of Tractor (A-108)
This document is obtained from the borrower while granting loan for the purchase of a
Tractor. The Tractor stands hypothecated to the bank on the strength of this document.
This is to be stamped as an agreement.
31. Agreement relating to Term Loan (A-109)
The document is taken from the borrower while granting Term Loans. A copy of the
Borrowers Proposal should be enclosed to this document. It should be stamped as an
agreement.
32. Acknowledgment of Debt & Security (A-12A and S-14)
This document is obtained every halfyear showing the balance and details of securities
CHAPTER-1
10
as of 30
th
June/31
st
December. This is a document of Balance-cum-Security Confirmation.
It also serves as an acknowledgement of debt. This document is got to be signed by
both the borrower and the guarantor. If it is signed by the guarantor, it will be deemed
as an acknowledgment of liability by the guarantor under Section 18 of the Indian
Limitation Act, 1963 and a fresh period of limitation against him commences from the
date he acknowledged. Where, before the expiration of the prescribed period of limitation,
an acknowledgement of liability in respect of the debt has been made in writing signed
by the party from whom the debt is due, a fresh period of limitation starts from the
time when the acknowledgement is so signed. This document should be stamped as
an acknowledgement, using a Revenue Stamp.
33. Application for Letter of Credit (FR-2)
This document is obtained from the borrower while opening Letter of Credit on his
behalf. It should be stamped as an agreement. This document is taken for foreign as
well as inland Letter of Credit. More than one Letter of Credit cannot be opened on
the strength of one FR-2 form.
CHAPTER-1
11
CHAPTER 2
ADVANCE AGAINST GOODS AND WAREHOUSE RECEIPTS
General :
Advances against goods may be made by way of Pledge or Hypothecation.
When Charge is by way of Pledge, Letter of Pledge (Form A8) should be obtained.
When Charge is by way of Hypothecation, Letter of Hypothecation (Form A9) should be
obtained. Form of agreement Form A9D should be obtained for extension of charge of
hypothecation over current assets of the borrowing company for non-fund based facilities.
CHAPTER-1
12
CHAPTER 3
ADVANCE AGAINST IMMOVABLE PROPERTIES
General
Annexure I : Draft of Letter of Undertaking to be obtained from the applicant for ad-
vances against Immovable property.
Annexure II : Draft of Letter authorising a person to deposit Title Deeds of Property for
creating Equitable Mortgage.
Annexure III : Draft of entry to be made in Equitable Mortgage Register in respect of
property standing in the name of one or more individuals.
Annexure IV : Draft of entry to be made in Equitable Mortgage Register in respect of
property standing in the name of partnership firm.
Annexure V : Draft of Entry to be made in Equitable mortgage Register in respect of
property standing in the name of Limited companies.
Annexure VI : Draft of Letter of Deposit of Title Deeds to be obtained from the
mortgagor(s).
Annexure VII : Draft of Letter to be obtained from mortgagor(s) for covering increase in limits.
Annexure VIII : Draft of entry to be made in Equitable Mortgage Register owing to increase
in limits.
Annexure IX : Draft of letter to be obtained from mortgagor(s) for deposit of additional Title
Deeds with or without increase in limits.
CHAPTER-3
13
ANNEXURE-I
DRAFT OF LETTER OF UNDERTAKING TO BE OBTAINED FROM THE APPLICANT
FOR ADVANCE AGAINST IMMOVABLE PROPERTY
Date ..........................
The Manager,
UCO Bank
............................................
Dear Sir,
Re : Request for a loan/cash credit facility
against security of immovable property
I/We have requested you to grant me/us a cash credit/loan facility inter alia, against the
security of my/our immovable properties situated at ........................................
In the event of your agreeing to sanction the credit facility, I/We would be prepared, if
so demanded by you, to execute and register in your favour a deed of mortgage in such
form and with such powers of sale etc. as you may require and I/we shall pay and bear all
expenses relating to preparation, execution, stamping and registration of the deed of mortgage
and all other documents required by you so as to complete the security in your favour as
aforesaid including all out-of-pocket expesnes, valuers/surveyors fees etc.
I/We have handed over to you the undermentioned title deeds relating to my/our above
property offered to you as security for the above credit facility for getting the same examined
by your lawyer in order to verify that my/our title to the said property is clear and marketable
and that the same is free from all encumbrances whatsoever and is not subject to any
litigation or attachment.
I agree and undertake to pay to you on demand all your costs, charges and expenses
including your lawyers fees in connection with the examination and verification of my/our title
to the property as aforesaid irrespective of whether the credit facility is sanctioned to me/us
or not. In case the credit facility requested for is not sanctioned to me/us for any reason
whatsoever, the title deeds will be returned to me/us only against my/our payment to you all
your costs, charges and expenses as aforesaid.
Yours faithfully
Details of Title Deeds :
CHAPTER-3
14
ANNEXURE-II
DRAFT OF LETTER AUTHORISING A PERSON TO DEPOSIT TITLE
DEEDS OF PROPERTY FOR CREATING EQUITABLE MORTGAGE
Date ...........................
The Manager,
UCO Bank,
.................................................
Dear Sir,
I/We have to advise that I/we have authorised Shri ...............................................................
to deposit the title deeds mentioned below relating to my/our property being premises
no. ...................................................................../ holding no. ................................... situated
at .................................................................... on my/our behalf with you with an intent to create
an equitable mortgage thereon in you favour over the said property as security for due
repayment of advances made i n and/or to be made by you to me/us/Shri /
M/s. .................................................................................. in loan/cash credit/overdraft or any other
account upto the limit of Rs. ................................ with all interest, commission, discount, cost,
charges and expenses thereon as agreed upon.
Yours faithfully
(Signature(s) of the person(s)
in whose name property stands)
Details of the Title Deeds :
Note : (i) Letter of Authority should be signed by all the joint owners.
(ii) In case property stands in the name of partnership firm, all the partners should
sign the Letter of Authority.
CHAPTER-3
15
ANNEXURE-III
DRAFT OF ENTRY TO BE MADE IN EQUITABLE MORTGAGE REGISTER
IN RESPECT OF PROPERTY STANDING IN THE NAME OF ONE
OR MORE INDIVIDUALS
Shri ................................................................................................... called at this branch
on .............................................................. and deposited the title deeds mentioned in the
opposite page hereto. While depositing the same Shri ..............................................................
stated that the title deeds are being deposited with the bank with an intent to create an
equitable mortgage in favour of the bank over the properties comprised in the said title deeds
consisting of land, buildings, other structures and also on fixed plant and machinery, fixtures
and fittings now erected or installed or hereafter to be erected or installed or brought thereon
as continuing security for due repayment to the bank of all advances made and/or to be
made to ................................... by the bank by way of loan/cash credit/overdraft etc. or
otherwise or for all other indebtedness and liabilities whatsoever and all costs and charges
remaining outstanding at any time and for any balance which may be due to the bank by
.......................................................................................... either as principal debtor or as a surety
now or hereafter remaining unpaid in his/their loan/cash credit/current/overdraft account or
any other account(s) upto the limit of Rs. ......................... with all interest, commission,
discount, cost, charges and expenses thereon as agreed upon.
Asstt. Manager Manager
Witness :
Date .................................
Note : (i) Please furnish complete details of the title deeds on the opposite page.
(ii) If plant & machinery is not mortgaged, this may be deleted.
CHAPTER-3
16
ANNEXURE-IV
IN RESPECT OF PROPERTY STANDING IN THE NAME OF
PARTNERSHIP FIRM
Shri ............................................................................................................ one of the partners of
M/s. .......................................................................................... (hereinafter referred to as the firm)
called at this branch on ...................................................... and deposited the title deeds
menti oned i n the opposi te page hereto. Whi l e deposi ti ng the same
Mr. ........................................................................ stated that the title deeds are being deposited
on behalf of the firm and all its partners with the bank with an intent to create an equitable
mortgage in favour of the bank over the properties comprised in the said title deeds consisting
of land, buildings, other structures and also on fixed plant and machnery, fixtures and fittings
now erected or installed or hereafter to be erected or installed or brought thereon as
continuing security for due repayment to the bank by way of loan/cash credit/overdraft etc.
or otherwise or for all other indebtedness and liabilities whatsoever and all costs and charges
remaining outstanding at any time and for any balance which may be due to the bank
by...................................................... either as principal debtor or as a surety now or hereafter
remaining unpaid in their loan/cash credit/current/overdraft account or any other account(s)
upto the limit of Rs. .................................... with all interest, commission, discount, cost, charges
and expenses thereon as agreed upon.
Witness :
Date ....................................
CHAPTER-3
17
ANNEXURE-V
IN RESPECT OF PROPERTY STANDING IN THE NAME OF
LIMITED COMPANIES
Shri ........................................................................ and Shri ...................................................... one/
two of the Directors/the Secretary of the ........................................................................ Co. Ltd.
(hereinafter referred to as the Company) pursuant to the resolution passed by the Board
of Directors of the Company on .................................................................................................
called at this branch on ............................................................................................................ and
deposited the title deeds mentioned in the opposite page hereto. While depositing the same
Mr. .............................................................. and Mr. ..................................................................
stated that the title deeds are being deposited on behalf of the Company with the bank with
an intent to create an equitable mortgage in favour of the bank over the properties comprised
in the said title deeds consisting of land, buildings, other structures and also on fixed plant
and machinery, fixtures and fittings now erected or installed or hereafter to be erected or
installed or brought thereon as continuing security for due repayment to the bank of all
advances made and/or to be made to ...................................................... by the bank by way
of loan/cash credit/overdraft etc. or otherwise or for all other indebtedness and liabilities
whatsoever and all costs and charges remaining outstanding at any time and for any balance
which may be due to the bank by ........................................................................ either as
principal debtor or as a surety now or hereafter remaining unpaid in their loan/cash credit/
current/overdtaft account or any other account(s) upto the limit of .................................................
with all interest, commission, discount, cost, charges and expenses thereon as agreed upon.
Witness :
Date ....................................
CHAPTER-3
18
ANNEXURE-VI
DRAFT OF LETTER OR DEPOSIT OF TITLE DEEDS TO BE OBTAINED
FROM THE MORTGAGOR(S)
Date ...........................
The Manager,
UCO Bank,
......................................................
Dear Sir,
This is to confirm that I/we deposited with you on ....................................................................
the ti tl e deeds menti oned bel ow rel ati ng to my/our proper ty bei ng premi ses
no. ....................................................../holding no. ...................................................... situated
at ...................................................... with an intent to create an equitable mortgage over the
said property in your favour as security for the due repayment of all advances to the extent
of Rs. ........................................................ made and/or to be made by you to me/us/Shri/
M/s. .......................................................................................... in the cash credit/overdraft/loan
account or any other account and for all my/our/their indebtedness and liabilities whatsoever
to you together with interest, costs, charges and expenses thereon.
I/We hereby agree to execute at my/our own costs in favour of the bank whenever
requested by the bank to do so, a registered mortgage over the said property in such form
and with such powers of sale etc., as the bank may require for securing the above accounts.
Yours faithfully,
Details of the title deeds :
Note : (i) In case of joint owners, it should be signed by all of them.
(ii) In case of Partnership Firm/Hindu Undivided Family it should be signed by all
the Partners/Karta and Co-parceners.
(iii) In case of Limited Company, it should be signed by Direcotr(s) as authorised in
the relative resolution.
CHAPTER-3
19
ANNEXURE-VII
DRAFT OF LETTER TO BE OBTAINED FROM MORTGAGOR(S)
FOR COVERING INCREASE IN LIMITS
Date .............................
The Manager,
UCO Bank,
......................................................
Dear Sir,
Re : Cash Credit/Loan Account
I/We have deposited with you on ...................................................... the title deeds relating
to my/our property situated at ........................................................................ as security for the
cash credit/loan facility to the extent of Rs. .................................... granted by you in favour
of ........................................................................ I/We thank you for sanctioning an increade
of Rs. .................................... i n the sai d cash credi t/l oan faci l i ty favouri ng
...................................................... As already agreed with you, the title deeds so deposited
by me/us with you shall continue to be held by you also as security for the said increased
limit.
Yours faithfully,
Note : (i) In case of joint owners, it should be signed by all of them.
(ii) In case of Partnership Firm/Hindu Undivided Family, it should be signed by all
the Partners/Karta and Co-parceners.
(iii) In case of Limited Company, it should be signed by Director(s) as authorised in
the relative resolution.
CHAPTER-3
20
ANNEXURE-VIII
OWING TO INCREASE IN LIMITS
Shri .......................................................................................... called at this branch this day
.......................................................................................... and stated that the title deeds deposited
by him with the bank on ...................................................... as security for the cash credit/
loan facility to the extent of Rs. .................................... granted by the bank to
........................................................ shall continue to be held by the bank as security for the
increase cash credit/loan limit of Rs. ......................... favouring ......................................................
Witness :
Date ....................................
CHAPTER-3
21
ANNEXURE-IX
DRAFT OF LETTER TO BE OTBAINED FROM MORTGAGOR(S) FOR DEPOSIT
OF ADDITIONAL TITLE DEEDS WITH OR WITHOUT INCREASE IN LIMITS
Date ....................................
The Manager,
UCO Bank
......................................................
Dear Sir,
I/We/M/s. .......................................................................................... have been enjoying cash
credit/overdraft/loan facility from you to the extent of Rs. .................................... against security
of hypothecation/pledge of ...................................................... and collateral security of my/our
immovable property being premises no. ......................................................................../holding
no. .................................... situated at ........................................................................
As you called upon us to furnish additional security for the above credit facility, I/we
deposited with you on ...................................................... the title deeds relating to my/our
immovable property being premises no. ...................................................... /holding
no. ...................................................... situated at ...................................................... with an intent
to create an equitable mortgage in your favour as security for due repayment of all advances
made and/or to be made by you to me/us/M/s. ...................................................... and for all
my/our/their indebtedness and liabilities whatsoever to you with interest, costs, charges and
expenses thereon.
At my/our request you have agreed to increase the abvoe limit in my/our/their cash
credit/overdtaft/loan account with you to Rs. .................................... In consideration of your
doing so I/we deposited with you the title deeds relating to my/our immovable property being
premises no. ...................................................... holding no. ......................................................
situated at ...................................................... with an intent to create an equitable mortgage
in your favour as securty for due repayment of all advances made and/or to be made by
you to me/us/M/s. ...................................................... upto the said increased limit and for all
my/our/their indebtedness and liabilities whatsoever to you along with interest, costs, charges
and expenses thereon.
CHAPTER-3
22
CHAPTER-3
I/We certify that I/we have no further or other title deeds relating to the said property.
The property is absolutely owned by me/us and is free from all encumbrances whatsoever
and is not subject to any attachment or litigation.
I/We hereby agree to execute at my/our own costs in favour of the bank whenever
requested by the bank to do so, a registered mortgage over the said property in such form
and with such powers of sale etc., as the bank may require for securing the above advances.
Yours faithfully
Details of the title deeds :
Strike out whichever is inapplicable.
ANNEXURE-IX (Contd.)
23
CHAPTER-4
Advances against Fixed Deposit Receipts, Kuber Yojana Receipts, Money Multiplier
(UCO Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates,
Flexible Fixed Deposit, Recurring Deposit (RD)/Money Back Recurring Deposits
(MBRD), Life Insurance Policies, Units Issued by Unit Trust of India, Shares
Advances against Fixed Deposit Receipts, Kuber Yojana Receipts, Money Multiplier (UCO
Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates.
For advances against Fixed Dposit Receipts, Kuber Yojana Receipts, Money Multiplier (UCO
Double/UCO Treble) Receipts, Lakhpati Deposit Receipts, Deposit Certificates, documents like
A-1/A-2, A-47, A-3 (only for running facilities i.e., cash credit/overdraft), letter of lien (A-38
revised) duly signed by depositors should be obtained.
Loan/Advances against Flexible-Fixed Deposit
For Loan/Advances against Flexible-Fixed Deposit, separate money receipt on appropriate
revenue stamp along with Pass Book is to be obtained along with loan documents A-1/A-2,
A-47, A-38 (Revised), A-3 (for overdraft facility) at the time of granting loan/overdraft.
Advances against Recurring Deposit (RD)/Money Back Recurring Deposits (MBRD)
Documents like A-1/A-2, A-47, D-48 should be obtained for granting advances against
Recurring Deposit (RD)/Money Back Recurring Deposits (MBRD).
Advances against Life Insurance Policies
Documents like A-1/A-2, A-47, A-3 (for overdraft accounts), Letter of Declaration-cum-
Agreement (Form A-58) should be obtained for advances against Life Insurance Policies.
Advances against Units Issued by Unit Trust of India
Documents required to be obtained for advances against Units Issued by Unit Trust of India
are Letter of Lien (A-4), Letter of Authority.
Advances against Shares
In case of advances against shares, besides other usual advance documents, Letter of Lien
(A-4), Declaration-cum-Agreement (S-16), Dividend mandate (A-72), A-71 are required to be
obtained. Lodgement of shares are required to be made by borrower by using Form A-17.
For extension of time for the validity of transfer deed applications shall have to be made in
Form 7C. For the Purpose of maintaing a proper record of the dividend warrants, branches
should maintain Dividend Register (A-41) and Book Closing Register (Mis-32).
CHAPTER-4
24
CHAPTER-5
REGISTRATION OF CHARGES WITH THE REGISTRAR OF COMPANIES
MCA 21-e-GOVERNANCE PROGRAMME
General
The Ministry of Company Affairs has taken an e-Governance initiative called MCA 21. With
effect from September 16, 2006, creation of charge, modification of charge and satisfaction
of charge require to be filed electronically (e-filing) under MCA-21 system only.
Under MCA-21 system for creation or modification of charge, Bank is reqired to fill Form
No. 8.
Once dues from a corporate borrower are fully satisfied, satisfaction of charge has to be
filed in e-Form 17.
CHAPTER-5
25
FORM 8
[Pursuant to sections 125, 127, 132 and 135
and Pursuant to section 600 read with 125,
127, 132 and 135 of the Companies Act,
1956]
Particulars for creation or modification of charges (other than
those related to debentures) including partculars of modification
of charge by asset reconstruction companies in terms of
Securitisation Act and Securitisation and Reconstruction of
Financial Assets and Enforcement of Securities Interest (SARFAESI)
Act, 2002
Note All fields marked in are to be mandatorily filled.
1. (a) This form is for mCreation of charge mModification of charge
(b) Whether charge is modified in favour of asset reconstruction company (ARC) or assignee mYes mNo
(c) Whether charge holder is authorised to assign the charge as per the charge agreement mYes mNo
(d) Charge identification (ID) number of the charge to be modified
2. (a) Corporate identity number (CIN) or foreign company Pre-fill
registration number of the company
(b) Global location number (GLN) of company
3. (a) Name of the company
(b) Address of the
registered office or
of the principal place
of business in India
of the company
4. (a) Type of charge
A charge on :
pUncalled share capital pCalls made but not paid
pImmovable property pShip
pAny interest in immovable property pGoodwill
pBook debts pPatent, license under a patent
pMovable property (not being pledge) pTrademark
pFloating chage pcopyright or license under a copyright
pOthers
(b) If others, specify
5. (a) Whether consortium finance is involved mYes mNo
(b) Whether joint charge involved mYes mNo
ANNEXURE-I
CHAPTER-5
26
CHAPTER-5
6. Number of charge holder(s)
7. Particulars of the charge holder(s)
CIN Pre-fill
Name
Address Line I
Line II
City
State
ISO country code
Pin code
e-mail ID
8. Nature or description of the instrument(s) creating or modifying the charge (copy to be attached)
9. Date of the instrument creating or modifying the charge (DD/MM/YYYY)
10. (a) Whether charge created or modified outside India Yes No
(b) In case of charge created or modified outside India on the property situated outside India, the date of receipt of
document in India.
(DD/MM/YYYY)
11. Amount secured by the charge
(In case the amount is in foreign currency, rupee equivalent to be stated) (in Rs.)
12. Brief particulars of the principal terms and conditions and extent and operation of the charge
(a) Rate of interest
FORM 8 (Contd.)
27
CHAPTER-5
(b) Terms of repayment
(c) Margin
(d) Extent and operation of the charge
(e) Others
13. In case of acquisition of property, subjected to charge, furnish the details relating to the existing charge on the property
so acquired
(a) Date of instrument creating or evidencing the charge (DD/MM/YYYY)
FORM 8 (Contd.)
28
CHAPTER-5
(b) Description of the instrument creating or evidencing the charge
(c) Date of acquisition of property (DD/MM/YYYY)
(d) Amount of the charge (in Rs.)
(e) Particulars of the property charged
14. Short particulars of the property charged (including location of the property)
15. (a) Whether any of the property or interest therein under reference is not registered in the name of the company
mYes mNo
(b) If yes, in whose name it is registered
Note : If more than one charge holder involved, details of extent of charge, particulars of property charged, amount
secured to be provided in attachment.
FORM 8 (Contd.)
29
CHAPTER-5
16. Date of latest modification prior to the present modification (DD/MM/YYYY)
17. Particulars of the present modification
Attachments List of attachments
1. Instrument of creation or modification of charge Attach
2. Instrument evidencing creation or modification Attach
of charge in case of acquisition of property
which is already subject to charge
3. Particulars of all joint charge holder Attach
4. Optional attachment(s) if any Attach Remove attachment
Verification
To the best of my knowledge and belief the information given in this form and its attachments is correct and
complete. I have been authorised by the board of directors resolution dated (DD/MM/YYYY)
to sign and submit this form.
To be digitally signed by
Managing director or director or manager or secretary (in case of an Indian company)
or an authorised representative (In case of a foreign company)
Designation
Director identification number of the director or membership number of the secretary
Verification
To the best of my/our knowledge and belief, the information given in this form and its attachments is correct and complete.
I/we am/are duly authorised to sign this form.
Designation
Charge holder
Designation
ARC or assignee
Modify Check Form Prescrutiny Submit
For office use only :
It is certified that the above document for charge creation or modification (other than those related to debentures) is
hereby registered
Digital signature of the authorising officer Submit to BO
FORM 8 (Contd.)
30
ANNEXURE-2
FORM 17
[Pursuant to section 138 and
pursuant to section 600 of the
Companies Act, 1956]
Particulars for satisfaction of charges
Note All fields marked in are to be mandatorily filled.
1. (a) Corporate identity number (CIN) or foreign company
registration number of the company Pre-fill
(b) Global location number (GLN) of company
2. (a) Name of the company
(b) Address of the
registered office or of
the principal place of
business in India
of the company
3. Charge creation identification (ID) number Pre-fill
(a) Particulars of the charge holder
CIN
Name
Address
(b) Particulars of creation of original charge and subsequent modifications.
(i) Charge creation date (DD/MM/YYYY)
(ii) Charge last modified date (DD/MM/YYYY)
(iii) Final amount secured (in Rs.)
4. Date of satisfaction of charge in full (DD/MM/YYYY)
CHAPTER-5
31
CHAPTER-5
Attachments
1. Letter of the charge holder that the amount has been satisfied Attach
2. Optional attachment(s) if any Attach List of attachments
Remove attachment
Declaration
To the best of our knowledge and belief, the information given in this form and its attachments is correct and
complete. I have been authorised by the board of directors resolution dated (DD/MM/YYYY)
to sign and submit this form
Managing director or director or manager or secretary (in case of an Indian company)
or an authorised representative (In case of a foriegn company)
Declaration
I am duly authorised to sign this form.
Charge holder (financial institution or bank or debenture holder etc.)
Certificate
It is hereby certified that I have verified the above particulars from the books of account and records of
M/s.
and found them to be true and correct.
Chartered Accountant or cost accountant or company secretary (in whole-time practice)
Modify Check Form Prescrutiny Submit
For office use only :
It is certified that the above document for charge satisfaction is hereby registered
Degital signature of the authorising officer Submit to BO
FORM 17 (Contd.)
32
CHAPTER-6
UCO RENT SCHEME FOR FINANCING RENTAL RECEIVABLES
General
Under UCO Rent Scheme, the following documents are required to be obtained :
a) Agreement for assignment of rent receivables (as per format enclosed)
b) Term Loan Agreement (A-109)
c) Letter of Guarantee (A-107/A-21/A-21A)
d) Creation of Equitable Mortgage
e) Registration of charges on fixed assets with Registrar of Companies (wherever required)
f) Original Lease Agreement with legal opinion.
g) Valuation Certificate/s of properties from approved valuer.
CHAPTER-6
33
AGREEMENT FOR ASSIGNMENT OF RENT
THIS AGREEMENT\ FOR ASSIGNMENT OF RENT is made this .....................................
.................. day of ................... Two thousand BETWEEN ................ a company incorporated
under the CompaniesAct, 1956 and having its Registered Office at ...........................................
................................... / ............. son of ....................., residing at .............................................
......................................................... son of ................................................................... residing
at .................................................................. and............................................................................
son of ............................................................ residing at ...........................................................
................................................. carrying on business in co-partnership under the name and style
of ..................................................., hereinafter called the Borrower (which expression shall
unless excluded by or repugnant to the context be deemed to mean and include its/ his/her/
their respective heirs, executors, administrators, legal representatives, successors or successors
in office and assigns) of the First Part, UCO BANK, a body corporate constituted under the
banking Companies (Acquisition & Transfer to Undertaking) Act, 1970 as amended by Section
10 Sub-Section (i) of the Banking (Amendment) Act, 1985 and having its Head Office at No.
10, Biplabi Trailokya Maharaj Sarani, Kolkata-700 001 and a Branch/Regional Office amongst
other places at ......................................................... hereinafter called the Bank (which
expression shall, unless it be repugnant to the subject or context thereof, include its successors
and assigns) of the Second Part AND ..................................................................... , a Company
incorporated under the Companies Act, 1956 and having its Registered Office at
......................................................................... /................................................................ son of
............................................................ residing at ............................................................ /
............................................................................ son of ..................................................................
residing at ................................................................. and ..............................................................
........................................................... son of ..................................................................................
................................................ residing at ............................................................... carrying on
business in co-partnership under the name and style of .........................................................,
hereinafter called the Tenant (which expression shall unless excluded by or repugnant to the
context be deemed to mean and include its/his/her/their respective heirs, executors,
administrators, legal representatives, successors or successors in office and assigns) of the
Third Part.
WHEREAS
1. The Borrower is the owner / lessor of house/flat No. ............................. situated at
CHAPTER-6
34
Premises No. ............................................................................ (here set out detailed description
of the property) and is fully authorised and empowered to let out/grant lease of the said
house/flat on such terms and conditions as the Borrower shall think fit and proper.
2. The Borrower has let out/granted lease of the above house/flat to ............................
..................................., Tenant herein, by way of monthly tenancy/lease upon the terms and
conditions therein contained, a copy of which Tenancy/Lease Agreement is annexed hereto and
marked with letter A.
3. The Borrower has approached the bank to grant to it .......................................... facilities
to enable the Borrower to ..........................................
4. At the request of the Borrower, the Bank has sanctioned to the Borrower loan of
Rs. ................................................ , inter alia, against the securities of assignment of rent
receivables by the Borrower from its Tenant in favour of the Bank.
5. To give effect to the aforesaid arrangement, the parties hereto have agreed to execute
an agreement (being these presents) upon the terms and conditions hereinafter appearing.
NOW THIS AGREEMENT WITNESSETH as follows :-
1. The Bank has granted and/or agreed to grant and the Borrower has taken and/or agreed
to take facilities/ .............................. loan of Rs. ................................................ from the Bank
subject to payment of interest at the rate hereinafter mentioned and upon the terms and
conditions hereinafter contained.
2. The Borrower hereby agrees and covenants with the Bank to repay to the Bank loan
amount of Rs. ....................................... by................................. monthly instalments of Rs.
............................................. each commencing from ............................................................... and
ending on .......................................... and such payment shall be made by assignment of rent
receivable by the Borrower from the Tenant.
3. The Borrower hereby agrees and promises with the Bank to pay to the Bank interest @
............... % per annum on the amount of loan outstanding for the time being on monthly/
quarterly/half-yearly rents and charged in accordance with the practice of the Bank.
4. In fulfilment of the Borrowers Convenient to repay the loan amount by instalment and to
CHAPTER-6
35
pay interest at the rate hereinbefore mentioned the Borrower hereby agrees to assign in favour
of the Bank monthly rent of Rs. ................................. receivable by the Borrower from its Tenant
in terms of the Tenancy Agreement entered into between the Borrower of the One part and
the Tenant of the Other part and for the aforesaid purpose, the Borrower hereby unconditionally
and irrevocably instructs and authorises the Tenant to pay to the Bank each and every month
the rent payable by the Tenant to the Borrower in terms of the aforesaid Tenancy/Lease
Agreement to liquidate the outstandings of the Borrower with the Bank under loan/facilities/
................................. loan of Rs. .......................................... enjoyed by the Borrower with the
Bank.
5. In consideration of the Borrower having instructed and authorised the Tenant and agreed
to assign rent receivable by the Borrower from its Tenant in favour of the Bank the Tenant
hereby agrees and undertakes with the Bank to deposit with the bank in the Account No.
...................................... or such other account, as might be communicated by the Borrower or
the Bank, of the Borrower maintained with the Banks .................................... Branch
at ............................ on or before 5th day of each and every month the monthly rent of Rs.
....................................... payable by the Tenant to the Borrower subject to the deduction of tax
at source and other amounts as mentioned in the aforesaid Tenancy/Lease Agreement dated
................................ entered into between the Borrower of the One Part and the Tenant of the
Other Part.
6. The Borrower hereby agrees and convenant with the Bank as follow :-
(a) That so long as the above loan is not fully repaid by the Borrower to the Bank, the
Borrower shall not change its instruction or authorisation given to its Tenant to pay the rent to
the Bank and terminate the tenancy/lease of the Tenant without the consent in writing of the
Bank.
(b) Upon deposit of rent by the Tenant with the Bank in the manner stated above, the
Borrower shall issue rent receipt in favour of the Tenant;
(c) The Borrower herepy irrevocably authorises and directs the Tenant to pay to the
Bank the monthly rent receivable by the Borrower from the Tenant in terms of their Tenancy/
Lease Agreement dated ........................... .
(d) The Borrower shall execute formal Deed of Assignment of Rent at its/his/her cost
and expenses including stamp duty payable on such Deed of Assignment of Rent as and when
CHAPTER-6
36
the Borrower called upon by the Bank to do so to protect the interest of the Bank and the
Borrower undertakes to execute such Deed of Assignment and shall not raise any dispute or
objection for such purpose.
(e) The Borrower hereby confirms and declares that if pursuant to Clause 7 (c) of this
Agreement hereinafter mentioned, the Bank exercises its option to take possession of the
Tenanted/Leased Premises from the Tenant and the Tenant delivers possession to the Bank,
the Borrower shall not raise any dispute or objection to such delivery of possession and the
Banks acceptance of possession from the Tenant shall be a good and valid discharge of the
Tenant.
(f) The Borrower hereby empowers and authorises the Bank to accept possession of
the above house/flat from the Tenant pursuant to the aforesaid sub-clause (e) and if necessary
to issue Discharge Certificate in favour of the Tenant for and on behalf of the Borrower.
7. The Tenant hereby agrees and covenants with the Borrower and the Bank as follows :-
(a) The Tenant hereby confirms the arrangement for Agreement of Assignment of Rent
by the Borrower in favour of the Bank.
(b) That the Tenant shall deposit with the Bank each and every month, subject to
deduction of tax at source and other moneys, rent payable by the Tenant to the Borrower in
terms of the Tenancy/Lease Agreement dated ..........................................
(c) If the Tenant desires to terminate the tenancy/lease during the subsistence of the
Loan agreement dated ......................................., the Tenant shall do so upon prior notice being
served on the Bank and if the Bank desires, the Tenant shall deliver possession of the above
Tenanted House/Flat to the Bank which the Borrower hereby confirms.
8. The Borrower and the Tenant hereby agree and confirm that they shall not modify and of
the terms, condition and covenants contained in their Tenancy/Leese Agreement without the
consent in writing of the Bank.
9. Any notice in writing to be served upon any of the parties hereto may be made or given
by sending the same to such party at its respective address mentioned herein and every such
notice shall be deemed to be received at the-time at which it is left or at the time which it
would have been delivered by post or otherwise at the respective address of the parties.
CHAPTER-6
37
IN WITNESS WHEREOF the parties hereto have executed these presents on the day, months
and year first above written.
SIGNED and DELIVERED by the above
named Borrower in the presence of:
SINGED and DELIVERED for and on
behalf of Bank by Mrs. ..........................................
............................................. its ........................................
in the presence of :
SIGNED and DELIVERED by the above -
named Tenant in the presence of :
CHAPTER-6
38
CHAPTER-7
ADVANCES ON CONSORTIUM BASIS : SINGLE WINDOW CONCEPT OF LENDING
(SWCL) BY BANKSDOCUMENTATION
General
With a view to enable the borrower financed by a consoritum of banks to execute only one
set of documents which will be signed by the leader bank on its own behalf and on behalf
of other members, a set of model documents has been evolved by the Legal Committee of
the Indian Banks Association (IBA) for adoption by the bank. The procedure contemplated
envisages execution of the following documents :
i) Resolutions to be passed by the borrowers Board of Directors.
ii) Resolutions to be passed by the B banks Board (B bank being the bank having
second largest share).
iii) Resolutions to be passed by the Boards of C bank, D bank and E bank (who are
the other members of consoritum).
iv) Letter of authority to be given by B bank, C bank, D bank and E bank to A bank
(the leader bank).
v) The letter of authority to be given by C bank, D bank and E bank to B bank.
vi) Working capital consortium agreement.
vii) Joint deed of hypothecation.
viii) Inter se agreement to be entered into between A bank, B bank, C bank, D bank
and E bank.
ix) Revival letter for purposes of limitation and
x) Letter of undertaking from the borrower for creating a second mortgage on fixed assets.
The prescribed documentation procedure may be adopted in case of advances on consortium
basis. It is advisable that the documentation procedure to be adopted by the consortium banks
should be deliberated in the consortium meeting and on the basis of the consensus arrived
at individual banks would take necessary steps in this regard.
The IBA formats (revised) of consortium documents under Single Window Concept of Lending
are annexed hereto.
CHAPTER-7
39
ANNEXURE-I
BOARD RESOLUTIONS
The Chairman informed the Board that to meet a part of the Working Capital requirements
of the Company/of the Division of the Company situated at ...........................................................
in the State of ............................................................, the consortium of Bankers, namely, A
Bank, B Bank, C Bank, D Bank and E Bank with A Bank as the Lead Bank have sanctioned
to the Company various limits as follows :
A Bank B Bank C Bank D Bank E
Bank
Cash Credit
Hypothecation of
Stocks & Goods - Limit
Hypothecation of
Book Debts - Sub-limit
Bills Purchased/
Discounting - Limit
Cheque Purchase Limit -
Sub-limit
Import/Inland
Letter of Credit
Sight / DA upto
180 days - Limit
Inland Revolving
Letter of Credit
Sight / DA upto
60 days - Sub-limit
Pledge
Guarantee
Limit
Drawings against
Uncleared Effects
Bills Acceptance
Limit
Total
(The above List is only illustrative and not exhaustive) on the terms and conditions set out
CHAPTER-7
40
CHAPTER-7
in their respective sanction letters. A Bank, B Bank, C Bank, D Bank and E Bank are
hereinafter collectively referred to as the A Bank Consortium. It has been agreed by and
between the A Bank Consortium and the Company that the security for the above said
Working Capital Limits will be a first charge on the Current Assets of the Company (namely,
Stocks of Raw Materials, Stocks-in-process, Semi-Finished and Finished Goods, Stores and
Spares not relating to Plant and machinery (Consumable Stores & Spares), Bills Receivable,
Book Debts and all other movables excluding such movables as may be permitted by the A
Bank Consortium in their discretion from time to time, both present and future, wherever
situate and a Second Charge, if so required by the A Bank Consortium, on the Companys
immovable and movable assets (other than the Current Assets and mentioned above) both
present and future. the Chairman further informed the Board that such charge on the Current
Assets will rank pari passu with the existing charges created and/or agreed to be created
thereon in favour of ........................................................................*.
* (Here give the names of the Existing Bankers of the Company/Companys Division having
a Charge on the Current Asets, which will have a pari passu ranking).
The Chairman further informed the Board that a Working Capital Consortium Agreement has
to be entered into between the Company and the A Bank Consortium.
The Chairman requested the Board to pass the necessary Resolution for the said purpose.
After some discussion the following Resolutions were passed :
1) The Company do borrow and avail of the following facilities from the A Bank Consortium,
namely :
A Bank B Bank C Bank D Bank E Bank
Cash Credit
Hypothecation of
Stocks & Goods
Limit
Hypothecation of
Book Debt
Sub-limit
Bills Purchased/
Discounting
Limit
Annexure-I (Contd.)
41
CHAPTER-7
A Bank B Bank C Bank D Bank E Bank
Cheque Purchase
Limit - Sub-limit
Import / Inland
Letter of Credit
Sight / DA upto 180 days
Limit
Inland Revolving
Letter of Credit
Sight / DA upto 60 days
Sub-limit
Guarantee
Limit
Drawings Against
Uncleared Effects
Bills Acceptance
Limit
Total
(the above List is only illustrative and not exhaustive) on the terms and conditions as set
out i n thei r respecti ve sancti on l etters i ssued to the Company and that
Shri ............................................................, Shri ........................................................................ and
Shri ........................................................................ be and are hereby severally authorised to
discuss and settle and finalise the terms and conditions with the A Bank consortium in
consultation with A Bank, as the Lead Bank, and agree to such amendments, modifications
or revisions therein as are acceptable to and for and on behalf of the Company.
2. The Company do approve the draft of the Working Capital Consortium Agreement with
A Bank, B Bank, C Bank, D Bank and E Bank in respect of the said facilities sanctioned
by them to the Company in a form acceptable to the A Bank Consortium and that
Shri ............................................................, Shri ............................................................ and
Shri ........................................................................ be and are hereby severally authorised
to settle and finalise the same for and on behalf of the Company and the Company
do execute the Working Capital Consortium Agreement as so finalised and that the
Annexure-I (Contd.)
42
CHAPTER-7
Common Seal* of the Company be affixed to the stamped engrossment of such Working
Capital Consortium Agreement as finally settled and to (five)** counterparts thereof in
the presence of any one of Shri ............................................................,
Shri ............................................................, Shri ............................................................,
Directors of the Company and Shri ............................................................ being the
secretary of the Company/the person authorised by the Board in that behalf, who do
sign the same in token thereof.
* To check with the Articles of Association of the Company and to frame it accordingly.
** Number to be changed according to the number of Members in the Consortium.
3. Shri ............................................................, Shri ............................................................ and
Shri ............................................................ be and are hereby severally authorised to
accept such amendments, modifications or revisions in the said Working Capital
Consortium Agreement after execution, during the period the said Working Capital
Facilities from the A Bank Consortium or any one or more of them subsist.
4. The Company do approve the Joint Deed of Hypothecation to be executed in favour of
A Bank, B Bank, C Bank, D Bank and E Bank a Joint Deed of Hypothecation in respect
of the Current Assets of the Company, namely Stocks of Raw Materials, Stocks in
Process, Semi-Finished and Finished Goods, Spares and Stores not relating to the Plant
and Machinery (Consumable Stores and Spares), Bills Receivable, Book Debts and
all other movables (excluding such movables as may be permitted by the A Bank
Consortium in their discretion from time to time), both present and future and that
Shri ............................................................, Shri ............................................................,
Shri ............................................................ be and are hereby severally authorised to settle
and finalise the same for and on behalf of the Company and the Company do execute
such Deed of Hypothecation as so finalised.
5. The Company do file the requisite particulars of charge with the Registrar of Companies,
................................................, in respect of the said Joint Deed of Hypothecation after
execution within the time prescribed by law.
6. The Company do create, execute and furnish to the A Bank Consortium security by
way of a Second Mortgage and Charge on the Fixed Assets and the Company as and
by way of a Collateral Security, if so required by the A Bank Consortium and as and
when stipulated by it, to secure the said Working Capital Facilities, after obtaining the
Annexure-I (Contd.)
43
CHAPTER-7
requisite approvals therefor from the Existing Term Lenders, in such form and manner
as may be satisfactory to the A Bank Consortium such deeds, documents or writings,
as in the opinion of the A Bank Consortium seems necessary, desirable or expedient
and that such deeds, documents or writings as are not to be executed under the
Common Seal* of the Company be executed by Shri ...........................................................,
Shri ............................................................ and Shri ............................................................
severally and in case the Common Seal of the Company has to be affixed to such of
the deeds, documents or writings, the same be executed under the Common Seal of
the Company in the presence of any one of Shri ............................................................,
Shri ............................................................ and Shri ............................................................,
Directors of the Company and Shri ............................................................, being the
Secretary of the Company/the person authorised by the Board in that behalf, who do
sign the same in token thereof.
* To check with the Articles of Association of the Company and to frame it accordingly.
7. The Company do file with the Registrar of Companies, .......................................................,
the requisite Particulars of Modification of Charge in respect of such Mortgage and
Charge as and when created and executed within the time limit prescribed therefor.
8. The Company do furnish to the A Bank as the Lead Bank the Original Certificates of
Registration of Charges/Modification of Charges after they are issued by the Registrar
of Companies.
9. Certified true copies of the aforesaid Resolutions be and are hereby authorised to be
forwarded to the A Bank Consortium and they be requested to act thereon.
Annexure-I (Contd.)
44
ANNEXURE-2
Resolution to be passed by B Bank
(* See Note below)
The Chairman informed the Board that to meet the Working Capital requirements
of ............................................................ Limited (the Borrower), the Consortium of Bankers
viz., A Bank, B Bank, C Bank, D Bank and E Bank hereinafter referred to as A Bank
Consortium have sanctioned and/or agreed to sanction to the Borrower at its request various
Limits aggregating to Rs. .................................... lacs.
The Chairman informed the Board that the share of the Bank in the said Limits has
already been santioned at the Board Meeting held on the ........................ day of ........................
200 ...... and that it has been agreed by and between the A Bank Consortium that A Bank
will be the Lead Bank and B Bank will be the Second Lead Bank on the basis of the said
Banks exposure with the Borrower in respect of the fund based facilities.
The Chairman informed the Board further that to facilitate the working of the Consortium
smoothly, it will be necessary for the Bank to appoint A Bank as the Lead Bank and for the
Bank to act as the Second Lead Bank and to grant the A Bank the requisite authority to
act for and on behalf of the Bank in all matters concerning the various Limits sanctioned by
the Bank to the Borrower. After some discussion the following Resolutions were passed :
RESOLVED THAT the Bank do recognise and appoint A Bank as the Lead Bank of the
A Bank Consortium and do issue to A Bank proper Letter of Authroity constituting and
nominating A Bank as the Attorney of the Bank in such form as the Lead Bank may require
in respect of the said A Bank Consortium and the Limits sanctioned by the Bank to the
Borrower.
Resolved Further that the Bank do act as the Second Lead Bank of the A Bank
Consortium and that the Chief General Manager, Chief Manager, General Manager, Deputy
General Manager and any other Official duly authorised according to the Internal Regulations
of the Bank be and are hereby severally authorised to take all such steps and may be
necessary to function as such Second Lead Bank and to do all such acts, deeds or things
as may be necessary to give effect to the Consortium spirit and the aforesaid Resolution.
NOTE
* (In case the Boards Sepcific Authority is not needed in view of the General Authority
CHAPTER-7
45
CHAPTER-7
conferred on Cetain Officials of the Bank, requisite action pursuant thereto may be taken for
recognising and appointing A Bank as the Leader of the Consortium and B Bank as the
Second Lead Bank, as the case may be, and to do all such acts and things as may be
necessary incidental thereto on the lines of the above Resolutions.)
Annexure-2 (Contd.)
46
ANNEXURE-3
II B
Resolutions to be passed by C Bank, D Bank and E Bank
(*See Note below)
The Chairman informed the Board that to meet the Working Capital requirements
of ...................................................... Limited (the Borrower), the Consortium of Bankers viz.,
A Bank, B Bank, C Bank, D Bank, and E Bank hereinafter referred to as A Bank Consortium
have sanctioned and/or agreed to sanction to the Borrower at its request various Limits
aggregating to Rs. ........................... lacs.
The Chairman informed the Board that the share of the Bank in the said Limits has
already been sanctioned at the Board Meeting held on the ........................... day of
...........................200 ........ and that it has been agreed by and between the A bank Consortium
that A Bank will be the Lead Bank and B Bank will be the Second Lead Bank on the basis
of the said Banks exposure with the Borrower in respect of the fund based facilities. The
Chairman informed the Board further that to facilitate the working of the Consortium smoothly,
it will be necessary for the Bank to appoint A Bank as the Lead Bank and B Bank as the
Second Lead Bank and grant them the requisite authority to act for and on behalf of the
Bank in all matters concerning the various Limits sanctioned by the Bank to the Borrower.
After some discussion the following Resolutions were passed :
RESOLVED THAT the Bank do recognise and appoint A Bank as the Lead Bank of the
A Bank Consortium and B Bank as the Second Lead Bank of the A Bank Consortium and
do issue to A Bank and B Bank proper Letters of Authority constituting and nominating A
Bank and B Bank as the Attorneys of the Bank in such form as the Lead Bank may require
in respect of the said A Bank Consortium and the Limits sanctioned by the Bank to the
Borrower.
Resolved Further that the Chief General Manager, Chief Manager, General Manager,
Deputy General Manager and any other Official duly authorised according to the Internal
Regulations of the Bank be and are hereby severally authorised to take all such steps as
may be necessary to do all such acts, deeds or things as may be necessary to give effect
to the Consortium spirit and the aforesaid Resolution.
NOTE
*(In case the Boards Specific Authority is not needed in view of the General Authority
Conferred on Certain Officials.)
CHAPTER-7
47
ANNEXURE-4
IIIA
Letter of Authority to be given by B Bank, C Bank,
D Bank and E Bank to A Bank (the leader Bank)
To Date ..............................
A Bank
(Lead Bank)
Dear Sir,
We refer to the allocation of Credit Limits made to us under the Consortium Arrangement
of Working Capital Facilities sanctioned and/or agreed to be sanctioned to ......................
...................................... Limited, a Company within the meaning of the Companies Act, 1956
and having its Registered Office at .................................................., hereinafter referred to as
the Borrower, of which Consortium YOU, A Bank is recognised and appointed by us as
the Lead Bank of the Consortium, known as A Bank Consortium. To enable you to take all
actions and decisions for and on behalf of us and the remaining Members of the A Bank
Consortium, WE HEREBY NOMINATE, APPOINT AND CONSTITUTE YOU, A Bank as our
true and lawful attorney for us, in our name and on our behalf to do, execute and perform
all acts, deeds and things as YOU may deem appropriate, necessary or expedient in the
given circumstances as the Lead Bank of the A Bank Consortium and to execute for and
on our behalf and in our name the Working Capital Consortium Agreement and the Joint
Deed of Hypothecation to be entered into with the Borrower and further to take all decisions
for an on our behalf in respect of the Working Capital Facilities granted and/or agreed to be
granted to the Borrower and communicate the same to the persons concerned.
WE HEREBY AGREE to abide by such directions, clarifications or instructions as may
from time to time by given by YOU, as the Lead Bank in respect of all or any matters affecting
or relating to the Cash Credit Account(s) or other Account(s) opened by the Borrower with
us in accordance with such Guidelines as may be issued by the Reserve Bank of India from
time to time in that regard.
WE FURTHER HEREBY AGREE TO RATIFY AND CONFIRM whatever acts, deeds and
things lawfully and bonafide done, taken or effected by YOU, as the Lead Bank and as our
attorney in exercise of the powers, authorities and liberties conferred upon, under and by
virtue of the Working Capital Consortium Agreement and the Joint Deed of Hypothecation
CHAPTER-7
48
CHAPTER-7
to the entered into with the Borrower as also the INTER SE AGREEMENT between the
Members of the A Bank Consrotium.
WE HEREBY DECLARE AND CONFIRM that this AUTHORITY given to YOU by us is
and shall be irrevocable and unconditional and WE are aware that on the strength of this
AUTHORITY YOU have agreed to act as the Lead Bank of the A Bank Consortium.
YOURS FAITHFULLY,
FOR B BANK
FOR C BANK
FOR D BANK
FOR E BANK
Annexure-4 (Contd.)
49
ANNEXURE-5
III B
The Letter of Authority to be given by C Bank, D Bank and
E Bank to B Bank
To Date .................................
B Bank
(Second Lead Bank)
Dear Sirs,
We refer to the allocation of Credit Limits made to us under the Consortium Arrangement
of Worki ng Capi tal Faci l i ti es sancti oned and/or agreed to be sancti oned
to ............................................ Ltd., a company within the meaning of the Companies Act, 1956
and having its Registered Office at ............................................, hereinafter referred to as the
Borrower, of which Consortium, known as A Bank Consortium, A Bank is recognised as
the Lead Bank and you, B Bank, is recognised and appointed by us as the Second Lead
Bank of the Consortium. To enable you to take all actions and decisions for and on behalf
of us, in the event that the Lead Bank is unable to act as such for whatever reason, WE
HEREBY NOMINATE, APPOINT AND CONSTITUTE YOU, B Bank, as our true and lawful
attorney for us, in our name and on our behalf to do, execute and perform all acts, deeds
and things as YOU may deem appropriate, necessary or expedient in the given circumstances
as the Second Lead Bank of the A Bank Consortium and to execute in case of need for
and on our behalf and in our name the Working Capital Consortium Agreement and the Joint
Deed of Hypothecation to be entered into with the Borrower and further to take all decisions
for and on our behalf in respect of the Working Capital Facilities granted and/or agreed to
be granted to the Borrower and communicate the same to the persons concerned.
WE HEREBY AGREE to abide by such directions, clarifications or instructions as may
from time to time be given by YOU, B Bank as the Second Lead Bank in the event that the
Lead Bank is unable to act as such for whatever reason in respect of all or any matters
affecting or relating to the Cash Credit Account(s) or other Account(s) opened by the Borrower
with us in accordance with such Guidelines as may be issued by the Reserve Bank of India
from time to time in that regard.
WE FURTHER HEREBY AGREE TO RATIFY AND CONFIRM whatever acts, deeds and
things lawfully and bonafide done, taken or effected by YOU, B Bank as the Second Lead
CHAPTER-7
50
CHAPTER-7
Bank and as our attorney in exercise of the powers, authorities and liberties conferred upon,
under and by virtue of the Working Capital Consortium Agreement and the Joint Deed of
Hypothecation to be entered into with the Borrower as also the INTER SE Agreement between
the Members of the A Bank Consortium.
WE HEREBY DECLARE AND CONFIRM that this AUTHORITY given to YOU by us is
and shall be irrevocable and unconditional and WE are aware that on the strength of this
AUTHORITY YOU have agreed to act as the Second Lead Bank of the A Bank Consortium.
YOURS FAITHFULLY,
FOR C BANK
FOR D BANK
FOR E BANK
Annexure-5 (Contd.)
51
ANNEXURE-6
WORKING CAPITAL CONSORTIUM AGREEMENT
THIS AGREEMENT is made at ....................................................... this the .............................day
of .........................200 , between .................................................................. Limited, a Company
within the meaning of the Companies Act, 1956 and having its Registered Office
at ....................................................... (hereinafter called the Borrower, which expression shall,
unless it be repugnant to the subject or context thereof, include its successors and assigns)
of the ONE PART AND a Bank a body corporate, constituted by and under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 and having its Head
Office at .................................................................. and a Regional Office amongst other places
at ............................................................................. (hereinafter called A Bank, which expression
shall, unless it be repugnant to the subject or context thereof, include its successors and
assigns) of the SECOND PART, B Bank, a Statutory Corporation constituted by and under
the ....................................................... and having one of its Local Head Offices
at ....................................................... and a Zonal Office amongst other places
at .................................................................. (hereinafter called B Bank, which expression shall,
of the THIRD PART, C Bank, a body corporate, constituted by and under the Banking
Office at .................................................................. and a Regional Office amongst other placeas
at .................................................................. (hereinafter called C Bank, which expression shall,
of the FOURTH PART, D Bank, a body corporate, constituted by and under the Banking
Office at .................................................................. and Regional Office amongst other places
at ....................................................... (hereinafter called D Bank, which expression shall, unless
it be repugnant to the subject or context thereof, include its successors and assigns) of the
FIFTH PART AND E Bank, a Banking Company within the meaning of the Banking Regulation
Act, 1949 and a Company within the meaning of the Companies Act, 1956 and having its
Principal Place of Business in India at ....................................................... and a Regional Office
at ....................................................... (hereinafter called E Bank which expression shall, unless
it be repugnant to the subject or context thereof, include successors and assigns) of the
SIXTH PART.
CHAPTER-7
52
CHAPTER-7
(All of which a Bank, B Bank, C Bank, D Bank and E Bank are hereinafter collectively referred
to as the said Banks or the A Bank Consortium which expression shall, unless it be
repugnant to the subject or context thereof include each of them or any one or more of
them and their respective successors and assigns);
(*Insert as applicable and appropriate Zonal Office/Local Head Office/Circle Office/Branch
Office).
By Consent of all the Parties, a Bank is designated and recognised as the Lead Bank of
the A Bank Consortium. If the Consortium of Banks is increased or diminished from time to
time by adding or dropping of one or more Banks or is changed by substitution of one bank
by another during the currency of this Agreement, then the Reconstituted Consortium will
be governed by the provisions of this Agreement as if they have been added or dropped
herein as the case may be and the term the said Banks shall mean and shall be deemed
to include the Reconstituted Consortium as well.
ARTICLE I
1. The Borrowers Application dated ................................. and the subsequent
correspondence with the Lead Bank (thereinafte collectively referred to as the Borrowers
proposals) shall be deemed to constitute the basis of this Agreement and of the credit
facilities as hereinafter stated, and the Borrower hereby warrants the correctness of each
and every statement and particulars therein contained and undertakes to carry out the
Borrowers proposals therein set forth. The borrowers proposal as submitted to the Lead
Bank should be copied to the member banks.
2. The Borrower declares and confirms that the said credit facilities shall be governed by
the terms and conditions as set out in the Letters of Sanction of the A Bank Consortium/
Arrangement Letter No. ................................. dated ................................. as also by the
terms and conditions herein contained, as well as those embodied in the relative security
documents.
3. The Borrower undertakes to notify in writing to the said Banks of any circumstances
affecting the correctness of any of the particulars set forth in the Borrowers proposals
immediately on the happening or occurrence of any such circumstance.
4. The Borrower has been sanctioned, inter alia, the Working Capital Facilities in the
Annexure-6 (Contd.)
53
proportion as mentioned in the First Schedule hereunder written by the A Bank
Constortium, for meeting a part of the Working Capital needs of the Borrower/of the
Borrowers * Division at ....................................... in the State of ............................................
in addition to/in replacement of existing facilities and replacement of certain other facilities
on the terms and conditions set out herein and such other conditions as may be
stipulated by the A Bank Cnsortium from time to time.
[*Delete whichever is inapplicable]
The Working Capital Facilities are hereinafter collectively referred to as the said
Facilities, which expression shall, unless it be repugnant to the subject or context
thereof, include each such facility or any one or more of them. The Limits of Sub-Limits
as so fixed from time to time during the tenure of this Agreement shall be deemed to
be the Limits of Sub-Limits covered under this Agreement. Provided, however, that the
A Bank Consortium shall not be required to make or continue to make advances by
way of Working Capital Facilities otherwise than at the discretion of the A Bank
Consortium and in no circumstances of an amount exceeding with interest thereon the
aforesaid Limits of Sub-Limits. The rights and obligations of each of the said Banks
are several and failure of any one or more of the said banks to perform its or their
obligations in respect of the said Facilities does not relieve or absolve the other Members
of the A Bank Consortium or the Borrower of their or its respective obligations.
5. The Borrower shall open Cash Credit Account(s) or other Account(s) at such Branch
or Branches of the said Banks as may be intimated to it by the Lead Bank for operating
the said Facilities and the Borrower shall conform to the requirements of the Lead Bank
of the A Bank Consrotium.
6. Subject to the provisions herein contained, each of the members of the A Bank
Consortium agrees to the borrower availing of all or some or any of the said Facilities
at the sole and absolute discretion of the said banks by way of overdrafts, cash credits,
preshipment and postshipment credits, opening of letters of Credit, issuing of Guarantees
including deferred payment guarantees and indemnities, negotiation and discounting of
demand and/or usance bills and cheques and such other facilities as may be agreed
upon from time to time for sums upto the limits or sub-limits as aforesaid and in no
circumstance to an amount at any one time exceeding in the aggregate with interest
thereon and other costs, if any, such limit or limits as the said Banks may, from time
to time, decide in respect of each such facility or in the aggregate, to be made available
at any one or more Branches of the said Banks or at any one or more branches of
any one or more Associate Banks of the said Banks.
CHAPTER-7
Annexure-6 (Contd.)
54
CHAPTER-7
7. The said Banks may at their discretion and at the specific request of the Borrower
grant the said facilities to the Borrower by fixing limits in respect of goods, book-debts,
movables and other assets hypothecated or against the security of pledge of goods,
movables and other assets for the purpose of either (i) retiring documentary Bills draw
on the Borrower covering purchase of goods required for the Borrowers manufacturing
activities consigned from various places, or (ii) making remittances of the cost price of
the materials direct to the suppliers by the said Banks subject, of course, to the advance
being limited in each case to such per cent of the said Bills of the cost price of the
materials respectively as may be decided by the said Banks from time to time and
where the said banks so grant the facility, the Borrower hereby acknowledges in
consideration thereof that the said Banks shall have a charge by way of pledge over
the documents of title to goods, movables and other assets received with the Bills or
otherwise which will be in the custody of the said Banks or which may come into the
custody of the said banks and for this purpose the documents of title to goods,
movables and other assets shall be deemed to have been delivered by the borrower
to the said Banks for creating pledge of goods, movables and other assets covered by
the documents and in further consideration of the delivery by the said banks of the
said documents of title to goods, movables and other assets to the borrower or to the
clearing agents of the Borrower under the Borrowers instructions and on behalf of the
Borrower while the charge of the said Banks thereon and the borrowers own
indebtedness or obligation in respect of the said advances or other valuable
consideration are subsisting, the Borrower undertakes to clear and store and hold the
goods, movables and other assets received under the said documents for and on behalf
of the said banks as trustees and agents and if so required by the said banks to deliver
possession of the goods, movables and other assets to the said Banks to be held by
the said Banks as pledges of the said goods, movables and other assets.
8. The said Facilities shall be drawn in phases as may be agreed upon between the Parties
hereto and the Borrower expressly agrees and undertakes that all the said Facilities or
any of them shall be utilised exclusively for the purposes set forth in the Borrowers
proposals and for no other purpsoe and no change shall be made therein without the
written sanction of the said banks.
9. Interest shall be charged on the outstandings in the said account(s) at such rate or
rates as may be determined by the said Banks from time to time and if such rate or
rates is or are linked to the Commercial banks Advance Rate, then the effective rate
of interest on such Account(s) shall correspondingly stand charged on account of any
Annexure-6 (Contd.)
55
revision therein from the date of any such revision. Where interest is charged by the
said Banks at a concessionary rate or rates because of the said facilities being granted
by the said banks to the Borrower under the Interest Subsidy Scheme or any other
Scheme(s) formulated by the Government and/or Reserve Bank of India or any
Rehabilitation Scheme, the Borrower hereby agrees, declares, confirms and affirms that
in the event of the withdrawal, modification and/or variation of such Scheme(s), the
concessionary rate or rates of interest shall stand withdrawn and the usual normal rate
or rates of interest of the said Banks as mentioned above applicable at the material
time to the said Facilities shall become effective and the said banks shall become
entitled to charge the Borrower such rate or rates of interest and the Borrower shall
also pay to the said Banks and difference between such concessionary rate or rates
and the usual normal rate or rates of interest of the said Banks as mentioned above
applicable at the material time to the said Facilities and such difference shall also
become due and payable by the Borrower to the said Banks from the date the
withdrawal, modification and/or variation of any such Scheme(s) becomes effective.
Interest shall be calculated respectively on the daily balance of such Account(s) and
be debited thereto on the last working day of the month or quarter according to the
practice of the said banks. The said Banks shall also be entitled to charge at their
discretion such enhanced rates of interest on the Account(s) either on the entire
outstandings or on a portion thereof as the said Banks may fix for any irregularity and
for such period as the irregularity continues or for such time as the said Banks deem
it necessary regard being had to the nature of the irregularity and the charging of such
enhanced rate of interest shall be without prejudice to the other rights and remedies
of the said Banks.
10. The Borrower hereby convenants with each of the said Banks that unless otherwise
agreed to by the said Banks or any one or more to them, the Borrower shall repay
the said Facilities to each of the said Banks forthwith on demand of all such amounts
as may be standing at the foot of the said Account(s) together with interest, compound
interest, additional interest, liquidated damages, costs, charges, expenses and other
moneys thereon at the rate or rates as may be applicable thereto as set out in the
Second Schedule hereunder written. Failure of the Borrower to repay shall entail in the
Borrower being treated as a defaulter and the amount due as in derault invoking the
provisions as the defaults as hereinafter stated.
11. The Borrower, further convenants that in case the said Facilities are eligible for cover
under any Guarantee Scheme, the Borrower shall bear the guarantee fee paid/to be
CHAPTER-7
Annexure-6 (Contd.)
56
paid in connection with the said Facility and it is agreed that the said guarantee fee
shall be debited to the Borrowers Account and shall be treated as part of the said
Facility and shall carry like interest and be secured in the same manner as the said
Facility.
12. The Borrower further covenants that if the said Facilities or any of them are eligible for
refinance from the Industrial Development Bank of India in accordance with the norms
laid down for the same, then the said Banks shall be entitled to seek the refinance
from the Industrial Development Bank of India for the said Facilities and if due to delay
in disbursement or availment of the said Facilities on account of the default on the
part of the Borrower and consequent delay in availing the refinance from the Industrial
Development Bank of India, the said Banks** are required to pay commitment charges
to the Industrial Development Bank of India, then in such event the Borrower agrees
to bear the same and pay the same and pay also such charges to the said Banks as
may become payable on account of the aforesaid factor and on the failure of the
Borrower to pay the same, the said Banks will be entitled to debit such amount to the
said Accounts of the Borrower and it shall be treated as part of the said Facilities and
shall carry like interest and be secured in the same manner as the said Facilities.
CHAPTER-7
Annexure-6 (Contd.)
57
ARTICLE II
1. The Borrower agrees that the said Facilities together with interest, compound interest,
additional interest, liquidated damages, costs, charges, expenses and other moneys
payable in respect thereof will be secured in favour of the said Banks by a First Charge
by way of hypothecation and/or pledge of the Borrowers Current Assets, namely, Stocks
of Raw Matierals, Semi-Finished and Finished Goods, Stores and Spares not relating
to plant and machinery (Consumable Stores & Spares), Bills Receivable and Book Debts
and all other movables of the Borrower/of the Borrower pertaining to the said Division*,
both present and future excluding such movables as may be permitted by the said
Banks from time to time.
**
also by a Second Mortgage and Charge in favour of the said Banks ranking after the
Charges created and/or to be created in favour of the Term lenders of the Borrower
on the Borrowers immovable and movable properties (other than Current Assets) both
present and future in a form and manner acceptable to the said banks.
* Delete whichever is inapplicable.
** Only if so stipulated by the said Banks; If not applicable delete this para.
2. The Borrower shall, if required, procure irrevocable and unconditional guarantees in the
form prescribed by the Lead Bank from its Directors and/or others for the payment
and discharge by the Borrower of the said Banks of the sum of Rs. ...................... and
interest and costs, charges and expenses and other moneys due and payable by the
Borrower to the said Banks under or in respect of the said Facilities.
3. The said Banks shall have the absolute right to decide whether or not they will accept
as security for the purpose of any/some/all of the said Facilities and goods, book-debts,
movables and other assets offered from time to time to the said Banks by the Borrower.
The said Banks shall be at liberty at their sole discretion at any time without previous
notice and without assigning any reason whatsoever to cease to accept the security
from the Borrower and/or to cease making advances thereagainst.
4. The goods, book-debts, movables and other assets hypothecated and/or pledged shall
be valued at the proper rates whether fixed by the Lead Bank or not and the Borrower
shall not overvalue the same. Indigenous raw materials/packing materials/consumable
CHAPTER-7
Annexure-6 (Contd.)
58
stores/spares shall be valued at current market rates or invoice rates or Government
controlled rates whichever are the lowest. Imported raw materials shall be valued at
landed cost (i.e. invoice value plus customs duty but exclusive of sales-tax and
demurrage) or market price whichever is lower. Semi-finished goods shall be valued at
cost plus factory overhead and finished goods shall be valued at cost or market price
or Government controlled reates or selling prices whichever are the lowest. The said
Banks shall be at liberty to have any goods, book-debts, movables and other assets
hypothecated and/or pledged as aforesaid valued by an appraiser appointed by the Lead
Bank and the Borrower agrees and confirms to give all the required assistance/co-
operation to such appraiser for such valuation and the said valuation shall be binding
on the borrower and the fees and expenses of such appraisal shall be borne by the
Borrower and may be debited to the Account(s) of the Borrower with the said Banks.
The Borrower declares and assures the said Banks that the Borrower shall maintain
regular turnover in the goods, movables and other assets hypothecated and/or pledged
to the said Banks and that the goods, movables and other assets shall not be allowed
to remain in the possession of the said Banks for unduly long periods.
5. In respect of the said Facilities granted to the Borrower against pledge of goods,
movables and other assets all such goods, movables and other assets shall be placed
in the possession of the said Banks under their control and in such manner that such
possession and control may be apparent and indisputable. In pursuance thereof, inter
alia, the godowns, factories and other places approved by the said Banks in this respect
where the goods, movables and other assets that are pledged have been stored shall
bear the name boards of the said Banks indicating that the goods, movable and other
assets lying therein are pledged to the said Banks. Where the goods, movables or other
assets which are pledged with the said banks are released to the borrower on trust
under a factory, mundy type ledge, or other basis for the limited purpose of facilitating
the Borrower carrying on the manufacturing or other activity the Borrower undertakes
that the padlocks of the said Banks will be used on the godowns, factories or other
places where they are stored and such godowns, factories or other places will be locked
by the Borrower when not in use and the keys thereof shall be returned to the said
Banks on demand and that the name Boards of the said Banks shall be displayed on
such factory, mundy or other places where such manufacturing or other activity is carried
on indicating that the goods, movables and other assets are pledged to the said Banks.
The Borrower further agrees that all sea, rail and other transport freights, demurrages,
customs duties, terminal taxes, cartage, godown rents and all other charges and
expenses paid or incurred by the said Banks in obtaining actual physical possession
CHAPTER-7
Annexure-6 (Contd.)
59
of and in clearing, storing and forwarding the said goods, movables and other assets
shall be debitable to the Account(s) of the Borrower and form a part of the aggregate
amount secured.
6. All the machineries of the Borrower hypothecated, pledged or otherwise charged to the
said Banks shall be treated as movable properties and not as immovable properties
and shall bear the name plates of the said banks indicating that the said machineries
are hypothecated, pledged or otherwise charged, as the case may be, to the said Banks.
The Borrower shall also exhibit conspiciously in the main-hall of the factory a list showing
the items of machineries hypothecated, pledged, or otherwise charged to the said banks.
7. In respect of goods, movables and other assets stored and held in godown owned or
hired by or let to the Borrower, the Borrower shall poivide the said Banks and their
respective agents and nominees with an unimpaired access to the godowns at all times
and where the godowns are hired by or let to the Borrower, the Borrower shall furnish
to the said Banks a letter form the landlords/owners consent to continue such unimpaired
access to the godowns to the said Banks and their respective agents and nominees
and also declaring that notwithstanding any claim for any unpaid rent the landlords/
owners acknowledge the prior claim of the said bansk on all the goods, movables and
other assets stored and held therein and hypothecated, pledged or otherwise charged
to the said Banks and that the said Banks, their respective agents and nominees shall
have the right to remove the goods, movables and other assets so stored and held in
the godowns whenever desired by the said Banks.
8. The Borrower shall not compound or release any of the book-debts nor do anything
whereby the recovery of the same may be impeded, delayed or prevented without the
consent in writing of the said Banks first had and obtained.
9. A. In respect of advances granted by the said Banks to the Borrower by way of
purchase/negotiation/discount of clean/documentary/demand usance Bills of
Exchange drawn by the Borrower on his/its/their various customers and expressed
in foreign currency or Indian rupees and whether under letters of credit or
otherwise and/or in repect of said Bills tendered for collection the Borrower agrees
and convenants with the said banks as under :
a) that the Bills shall bear adequate stamp duty and shall be drawn by the
Borower in conformity with the proforma prescribed under the Reserve Bank
of India Scheme, indicating on the face thereon the description and quantity
of goods sold and the number and date of the carriers receipt;
CHAPTER-7
Annexure-6 (Contd.)
60
b) that the Bills shall be drawn with a usance, ordinarily, of not exceeding 90
days;
c) that at the time of offering upcountry usance Bills for discount the Bills shall
be accompanied by railway receipts or motor transport receipts of approved
transport Companies together with the relative original invoices and that the
documents will be delivered to the drawees only after the Bills are accepted;
d) that in the case of local sales, Bills shall be accompanied by copies of
invoices bearing acknowledgements of the purchasers in token of their having
received the goods and shall be offered for discount only after acceptance
of Bills by the drawees;
e) that upcountry or local Bills will not be collected by the Borrower through
banks other than the said Banks;
f) that the Borrower shall ensure that upcountry Bills are accepted by the
drawees on presentation and retired on due dates. In the event of the Bills
remaining unaccepted on presentation or unpaid on due dates, the said
Banks shall be entitled to recover the amount of such Bills along with
overdue interest and other incidental charges by debit to the account of the
Borrower;
g) that the said Banks shall be at liberty not to accept cheques drawn on local
banks from the drawees in payment of Bills drawn on them unless such
cheques are tendered at the said banks Counters before clearing hours on
due dates. In the event of cheques being received late after clearing hours
on due dates, the said Banks may treat the relative Bills as unpaid and
may debit the amount thereof to the account of the Borrower on due date;
h) that the Borrower shall furnish to the said Banks in advance a list of parties
on whom the Borrower intends to draw usance Bills for prior approval of
the said banks;
i) that the Borrower shall abide by such terms and conditions as the said
Banks may from time to time stipulate;
j) that the rates for discounting the Bills will be the same rates as are
applicable from time to time;
CHAPTER-7
Annexure-6 (Contd.)
61
k) that the said Banks shall be entitled to charge
i) service charges at the rates prescribed by the said Banks from time
to time and out-of-pocket expenses such as telex, telephone,
registration and postal charges etc.;
ii) Overdue interest at *............% p.a. from the due date of payment and
i n case of returned Bi l l s from the due date to the date of
reimbursement; Provided Always the said Banks at their discreiton shall
be entitled to revise the aforesaid charges from time to time.
l) the said Banks may send the Bills either by registered acknowledgement
due post or registered post or by ordinary post or by any courier service
as is decided by the Lead Bank to any of the offices of the said Banks or
any of the Scheduled Banks as included in Schedule II to the Reserve Bank
of India Act, 1934 or any other Commercial Bank and/or Co-operative Bank
or directly to the drawees at the Borrowers risk and responsibility as to the
loses, if any, on the Bills or the proceeds of the Bills or of the goods
represented by the Bills due to any cause whatsoever and the Borrower
agrees to hold the said Banks harmless and indemnified from and against
all consequences that may arise from its doing so and form and against all
losses, charges and expenses in sending the Bills accepted under these
arrangements in the manner aforesaid;
m) Where the Bills accepted for collected are drawn on Central/State
Government Departments/Agencies and/at Public Sector Undertakings and/
or Railways and/or other paties and/or Borowers customers accompanied
by either railway receipts, shipping documents or other documents evidencing
title to goods like motor receipts or receipt notes, take delivery notes,
receipted challans or inspection notes in cases where the railway receipts,
shipping documents or motor receipts have been forwarded direct to the
concerned drawees/consignees and offered by the Borrower to the said
Banks for collection, the Borrower shall deposit with the concerned Bank
copies or the relevant documents along with the Bills signed by the Borrower
and invoices evidencing despatch of goods to the parties mentioned therein;
n) where at the request of the Borrower the said Banks have agreed to include
in the facilities granted under this Agreement credit sales made by the
Borrower to the customers of the Borrower whereby finished goods are
CHAPTER-7
Annexure-6 (Contd.)
62
directly sent to the customers at their request and copies of the relative
invoices with or without receipted challans or accepted delivery notes, receipt
notes, inspection notes, are tendered by the Borrower to the said Bank as
evidencing despatch of finished goods and where under such circumstances
or any other circumstances the Borrower receives payment of the Bills, the
Borrower shall immediately deposit the proceeds of the Bills and the sale
proceeds of the goods coveredby invoices directly received by the Borrower
or the agents of the Borrower whether in cash or by cheques or by any
other mode of payment in the said Account(s) with the said Banks towards
payment of the outstandings in respect of the advances granted on the
evidence of such invoices;
o) the Borrowr shall repay the advances of the said Banks within such number of
days as may be stipulated by the said Banks of the utilisation of the advances
by the Borrower on each occasion whether or not the payment of the said Bills/
Invoices is received by the Borrower or if the Bills are returned unpaid for any
reasons whatsoever the said Banks shall be entitled to debit the Borrowers
Account with the said amount under advice to the Borrower;
p) the Borrower shall indemnify the said Banks and keep the said Banks harmless
and indemnified at all times against all losses, damages, actions, costs (between
Attorney and Client), charges or expenses which may be made against or
sustained or incurred by the said Banks (and whether paid by the said Banks or
not) as a result of or in consequence of the said banks having agreed to purchse/
negotiate/discount/collect the said Bills as also as a result of or in consequence
of the said Banks through any of their respective offices or correspondents in
India and elsewhere guaranteeing any irregularities or discrepancies that may be
existing in the documents relating to the said Bills in connection therewith;
q) the said Banks shall have first and paramount lien on the Bills and the moneys
received thereunder and the goods in course of transit covered by the documents
of title to goods or other documents which purport to represent rights of title to
goods accompanying the Bills shall ramain pledged to the said Banks and
irrespective of the rights of the said banks as pledgees of such goods in case of
any dispute, the said Banks shall also have the Bankers lien on all Bills, goods,
securities, documents and moneys belonging or purporting to belong to the
Borrower for all moneys claims and demands due or to become due from the
Borrower to the said Banks;
CHAPTER-7
Annexure-6 (Contd.)
63
r) in case the Bills/invoices are passed for payment for a reduced amount, the
Borrower authorises the said Banks to accept such reduced payment and
the Borrower shall make good the shortage or any loss arising therefrom
and the said Banks will not be responsible in any manner whatsoever;
s) Where the drawees return unpaid the Bills/invoices to the Borrower direct,
the Borrower shall immdiately on receipt thereof, return the Bills/invoices to
the said Banks and the acceptance thereof of the said Banks shall be
without prejudice to their respective rights of recovery of the amounts covered
by the Bills/invoices from the Borrower.
B. Notwithstanding any of the provisions of the Contract Act to the contrary or any
other law in respect of advances aainst accepted usance Bills where the Bills
are drawn by the Borrower and accepted by the drawees the Borrower agrees
that the subsequent credit to the Account(s) under such facilities, unless specifically
apportioned by the Borrower or the said Banks to the discharge of any particular
Bill, will not discharge the debt represented by such Bills.
10. In respect of the facilities granted by the said Bank by issue of letters of credit/
guarantees including deferred payment guarantees and indemities whether in Indian or
foreign currencies, the Borrower hereby agrees and convenants with the said Banks
as under;
i) To indemnify the said Banks against any claim or claims, loss or damage, actions,
costs (between Attorney and Client), charges and expenses whatsoever which may
be brought or made against or sustained or incurred by the said Banks (and
whether paid by the said Banks or not) or which the said Banks may become
liable under or in respect of such letters of credit guarantees and indemnities;
ii) To admit or compromise and pay or submit to arbitration any dispute or resist
any claim or demand made against the said Banks under or in respect of such
letters of credit, guarantees and indemnities, notwithstanding any directions to the
contrary given by the Borrower or any other person on the ground of a dispute
as to the liability of the Borrower or otherwise and the Borrower agrees and
confirms that the said Banks may exercise the above rights in their sole, absolute
and unqualified discretion and without reference to the Borrower and without the
said Banks being rquired to ascertain whether or not there was any breach on
the part of the Borrower of the Agreement executed between the Borrower and
the Beneficiaries in whose favour the letters of credit/guarantees and/or indemnities
CHAPTER-7
Annexure-6 (Contd.)
64
are or were executed by the said Banks and without the said Banks being required
to go into the validity or otherwise of the demand for payment made against the
said Banks. The Borrower further agrees and confirms that the counter-indemnity
of the Borrower will be available to the said Banks in respect of any action or
payment which the said Banks may take or make.
iii) Without prejudice to the said Banks remedies for recovery of the aforesaid
amounts, they shall be entitled to debit such amounts to any of the Cash Credit
Account(s) or Other Account(s) and the same shall bear interest at the rate(s)
applicable to such Facilities and all such amounts shall be and always be deemed
to have been secured by the securities agreed to be created for the said Facilities.
11. The Borrower shall make out a goods and marketable title to its properties to the
satisfaction of the Lead Bank and comply with all such formalities as may be necessary
or required for the said purpose.
12. The Borrower shall maintain such security margin as may be stipulated by the said
Banks. The Current Asset cover, unless otherwise agreed to, shall not be less than
1.33 times at any point of time. The Borrower shall at all times maintain a sufficient
quantity of the Securities to provide the Asset Cover as may be required by the said
Banks at their discretion and in the event of any deficiency in such cover forthwith
whenever called upon provide to the said Banks additional securities to restore such
Asset Cover to the original level or pay to the said Banks the equivalent in cash in
the event of additional securities not being available.
13. In respect of letters of credit opened or guarantees or indemnities issued by the said
Banks on behalf of the Borrower, the Borrower shall deposit sufficient cash or other
security as may be acceptable to the said Banks as margin money as may be stipulated
by the said Banks. the said Banks shall be entitled to and shall at their discretion,
which shall be final and binding on the Borrower, change the margins as may be
necessary or expendient in the circumstances and the Borrower shall be bound by it
notwithstanding that the said Banks agreed to lower margins earlier.
14. a) Where goods, movables and other assets are pledged to the said Banks, the said
Banks may in their discretion and at the Borrowers specific request and without
detriment to the pledge, release the goods, movables and other assets so pledged
to the said Banks from their possession to the Borrower on trust under a factory/
mundy type pledge or other basis and/or for any purpose connected with the
Borrowers trade, business or industry and in consideration of the said Bank so
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Annexure-6 (Contd.)
65
handing over to the Borrower form time to time any goods, movables and other
assets lying at the godowns, factories or other places approved by the said Banks
under pledge to the said Banks, the Borrower shall hold the goods, movables
and other assets as trustees and agents for and on behalf of the said Banks.
The Borrower undertakes that such goods, movables and other assets shall in
all respects be treated by the Borrower in the books of the Borrower as belonging
to and held on behalf of the said Banks.
b) Where goods, movables or other assets pledged to the said Banks are relased
to the Borrower on trust for any purpose connected with Borrowers trade,
business, industry or otherwise and are put in transit by the Borrower for any
purpose including for sale thereof the Borrower shall hand over to the said Banks
the relative railway or other transport receipt, invoices and all documents and shall
deliver back to the said Banks the goods, movables and other assets when the
purpose for which they are released on trust is accomplished or to pay to the
said Banks the sale proceeds of or the proceeds of the Bills relating to the said
goods, movables or other assets. The Borrower undertakes that the proceeds of
sale of such goods, movables or other assets shall always be treated by the
Borrower and entered in the books of Borrower as belonging to and held for and
on behalf of the said Banks.
c) In respect of goods, book-debts, movables and other assets hypothecated, pledged
or otherwise charged to the said Banks or which are released to the Borrower
on trust under factory/mundy type pledge or other basis, the respective agents
and nominees of the said Banks shall be entitled at all times without notice to
the Borrower but at the Borrowers risk and expenses and if so required as
Attorney for and in the name of the Borrower to enter any place where the said
goods, books of account, movables and other assets may be and inspect, value,
insure, superintend dispose of and/or take particulars of all or any part of the
said goods, book-debts, movables and other assets and check any statements,
accounts, reports and information and do all such acts, deeds and things
necessary to preserve and protect the same and the Borrower confirms, affirms
and undertakes to give all assistance/co-opeation as may be necessary in this
regard.
d) The Borrower undertakes and declares that;
i) The Borrower shall at any time hand over or redeliver or cause to be handed
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Annexure-6 (Contd.)
66
over or redelivered to the said Banks forthwith on demand all goods,
movables and other assets and documents of title thereto and goods,
movables and other assets covered by such documents including any policies
of insurance pertaining thereto and authorise the said Banks or any person
or persons authorised by the said Banks in writing in that behalf to enter
the Borrowers godowns, premises or any other place where such goods,
movables and other assets and documents of title thereto are lying, kept or
stored and to take possession of the said goods, movables and other assets
and documents of title thereto wheresoever situated at any time without
giving to the Borrower any notice of the intention of the said Banks to do
so and the Borrower hereby undertakes that all persons in whose custody
the said goods, movables and other assets are for the time being shall yield
up possession thereof accordingly to the said Banks.
ii) The Borrower shall not deal with the goods, movables and other assets and
documents of title thereto or the goods, movables and other assets covered
by the documents except under and in accordance with the written
instructions of the said Banks.
iii) The Borrower shall whether or not in possession of the goods, movables
and other assets or documents or title thereto are delivered to the said
Banks repay the outstandings in the said Account(s) within such number of
days of its being utilised as may be specified by the said Banks from time
to time.
iv) The Borrower hereby indemnifies each of the said Banks :
i) against all losses, costs, damages, expenses whatsoever that the said
Banks may incur or sustain by reason of the Borrowers act, default
or omission or of the Borrowers servants or employees or other
persons acting on behalf of the Borrower in respect of goods, movables
and other assets pledged to the said Banks and released to the
Borrower on trust;
ii) against all losses, costs, damages, expenses or consequences
whatsoever that the said Banks may incur or sustain as a result of
the said Banks complying with the Borrowers instructions to deliver to
the Borrower or to the Borrowers clearing agents the documents
covering the goods, movables and other assets.
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Annexure-6 (Contd.)
67
a) Whether or not the said documents are in order;
b) Notwithstanding any discrepancy between the price/value, quantity
and quality of the goods, movables and other assets covered by
the documents and price, quantity and quality specified in the
contract and
iii) against all consequences, losses and damages that may arise as a
result of the said Banks complying with the Borrowers request to effect
advance payments from time to time to the suppliers.
a) whether or not the suppliers consign the goods, movables and
other assets;
b) whether or not the documents in respect thereof are received by
the said Banks; and
c) notwithstanding any discrepancy between the quantity or quality
of the goods, movables and other assets received from the
suppliers and the contracted quantity and quality.
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Annexure-6 (Contd.)
68
ARTICLE III
1. The Borrower hereby agrees with the said Banks jointly and with each of them severally
as follows :
a) The said Facilities will be utilised by the Borrower for meeting a part of its working
capital requirements and for no other purpose;
b) The Borrower shall submit Statements under the Quarterly Information System
(QIS) in the format prescribed by the Lead Bank from time to time each quarter
regularly to the said Banks and furnish to each of the said Banks full particulars
of the Cash Credit Account(s) or Other Account(s) and agree that the drawings
in the said Cash Credit Account(s) or Other Account(s) shall be regulated on the
basis of such Statements; Such Statements, duly authenticated by the Authorised
Officials of the Borrower, shall be submitted within 10(ten) days after the expiry
of each quarter and in addition as often as is deemed necessary by the Lead
Bank;
c) The Borrower agrees that the drawings in the Cash Credit Account(s) or other
Account(s) will be allowed within the advance value of the Securities and the
Borrower agrees that it will not draw any amount in excess of the value of the
Securities offered and in case of any excess drawal to regularise the accounts
forthwith or within such period as may be stipulated by the said Banks in their
absolute discretion and during the period of such irregularity the Borrower shall
be charged a higher rate of 2 (two) percentage points above the rate or rates
prescribed of interest abovementioned till such irregularity is fully adjusted to the
satisfaction of the said Banks. Further all rights, benefits and powers exercisable
by or conferred on the said Banks hereunder shall be applicable and available to
such excess drawals as well;
d) The said Banks will have the right to examine at all times the Borrowers Books
of Account and to have the Borrowers factories, godowns, sheds, galas jaithas,
warehouses or any other place of storage where the said goods, movables and
other assets are located, inspected from time to time by the official(s) of the said
Banks or any one or more of them and/or qualified auditors and/or technical
experts and/or management consultants of the choice of the said Banks, the cost
of such inspection being borne by the Borrower;
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Annexure-6 (Contd.)
69
e) The Borrower shall allow each of the said Banks or its authorised agents to take
inspection of all records of the Borrower and will produce such evidence as each
of the said Banks may require as to the costs in respect of its operations and it
shall be lawful for the said Banks or any of them at any time and from time to
time during the currency of the said Facilities to appoint and employ at the
expense of the Borrower in all respects and either temporarily or for such period
as the Lead Bank or the said Banks shall think fit, a person or persons, a firm
or a company to inspect and value on behalf of the Bank or Banks so appointing
all or any of the said Books of Account or Factories of the Borrower and the
Borrower shall pay to such Bank or Banks on demand the fees or other
remuneration payable to any such person, firm or company of the costs, charges
and expenses of and incidental to such valuation (such Banks or Banks
Statement/s being conclusive in that behalf) and in default, such Bank or Banks
shall be at liberty to debit the amount thereof to the said Cash Credit Account(s)
or Other Account(s) in such Banks or Banks books and thereafter the same
together with interest thereon shall be treated as advances made by such Bank
or Banks until repayment thereof;
f) The Borrower shall pay or cause to be paid all rents, rates, taxes, payments and
outgoings that are payable in respect of the immovable properties of the Borrower;
g) The Borrower shall furnish and verify all statements, reports, returns, certificates
and information from time to time as required by the said Banks or any of them
in connection with the operations of the Borrower and shall give and execute all
such documents as are required by the Lead Bank or the said Banks as in their
opinion is necessary to give effect to the security agreed to be created and if
the Borrower shall fail to do so within thirty days of demand in writing by the
Lead Bank or the said Banks, the Lead Bank may execute such documents for
and on behalf of the Borrower in favour of the said Banks for the said purpose,
by virtue of the power in this regard as hereinafter mentioned given by the
Borrower to each of the said Banks;
h) So long as the said Cash Credit Account or Accounts continue in the Books of
the said Banks in respect of the said Facilities, the Borrower shall not avail of
any credit facility or accommodation from any other bank or financial institution
or any person, firm or Company in any manner without the previous permission
in writing of the Lead Bank nor shall deal with or through any other bank or
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Annexure-6 (Contd.)
70
financial institution without having obtained in this behalf the prior written approval
of the Lead Bank;
i) The Borrower shall undertake to procure additional funds at the appropriate time
and on terms acceptable to the Lead Bank, to meet any shortfall that may arise
in Cash Accruals or for meeting overrun, if any, in financing the working Capital
Requirements of the Borrower. The Borrower agrees that such funds will not be
withdrawn without the prior approval of the Lead Bank during the currency of the
said Facilities;
j) During the currency of the said Facilities, the Borrower shall not without obtaining
the prior consent in writing of the Lead Bank declare any dividend on its share
capital, if it fails to meet its obligations to pay the interest and/or commission and/
or instalment or instalments and/or other moneys payable to the said Banks, so
long as it is in such default;
k) The Borrower shall appoint suitable technical personnel for carrying on its business
or industry;
l) The Borrower shall satisfy the Lead Bank that it has received all the licenses
and permits required for carrying on its business or industry and that they are in
full force and effect;
m) The Borrower shall submit to the Lead Bank and to each of the said Banks, if
so required, quarterly reports on the progress of its business or industry detailing
therein the sources and disposition of funds. The Borrower shall also promptly
furnish to the Lead Bank all other information as may reasonably be required from
time to time;
n) The Borrower shall obtain pollution control clearances, where necessry, from the
requisite Authorities in respect of its carrying on its business or industry to the
satisfaction of the Lead Bank.
2. During the currency of the said Facilities, the Borrower shall not, without the prior
permission in writing of the Lead Bank
i) effect any change in the Borrowers Capital structure;
ii) formulate any Scheme of Amalgamation or Reconstruction;
iii) implement any Scheme of Expansion/Diversification/Modernisation other than
incurring routine capital expenditure;
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Annexure-6 (Contd.)
71
iv) make any corporate investments or investment by way of share capital or
debentures or lend or advance funds to or place deposits with, any other concern
except give normal trade credits or place on security deposits in the normal course
of business or make advances to employees; Provided that the Borrower may
make such investments by way of deposits or advances that are required statutorily
to be made as per the existing laws of the country or the rules or regulations or
guidelines issued from time to time by the Authorities concerned;
v) undertake guarantee obligations on behalf of any third party or any other Company.
3. a) The Borrower agrees that its banking business, including deferred payment facilties,
foreign exchange, deposits and bill business will be shared in such manner as
may be decided by the Lead Bank.
b) The Borrower hereby declares and confirms that the Borrower has the necessary
and sufficient authority to borrow from the said Banks;
c) The Borrower agrees that the moneys brought in by the principal shareholders/
directors/depositors/other associate firms/group companies for financing the
Programmes and the Working Capital needs of the Borrower will not be allowed
to be withdrawn, during the currency of the said Facilities, without the permission
of the Lead Bank;
d) The Borrower agrees that it will maintain adequate Books of Accounts which would
correctly reflect its financial position and scale of operations and would not radically
change the Accounting System without prior notice to the Lead Bank;
e) The Borrower agrees that it will submit to the Lead Bank and other Banks, if so
required, such financial and/or other statements as may be required by the Lead
Bank or the said Banks from time to time, apart from the set of such statements
to be furnished by the Borrower to the said Banks as on the date of publication
of the Borrowers Annual Accounts;
f) The Borrower agrees that it shall keep the said Banks informed of the happening
of any event likely to have a substantial effect on its profit or business;
g) The Borrower shall as soon as any call in respect of its shares has been resolved
upon by the Directors or as soon as it shall have been resolved to issue any
unissued share capital or to create any new shares immediately give notice of
such call to the said Banks or give notice to the said Banks of the intention of
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Annexure-6 (Contd.)
72
the Borrower to issue or create any such share capital as aforesaid and the
proposed amount thereof And shall not until the expiration of seven clear days
from the time when such notice shall have been sent to the said Banks issue
any notice to the members of the Borrower in respect of payment of any call or
issue or create any such existing or new shares respectively as aforesaid And if
the said Banks shall so require every notice, prospectus, application form or
allotment letter sent out by the Borrower in pursuance of any such resolution shall
direct the members or applicants for allotment of the shares of the Borrower to
pay the call so made or the money into the joint account of the Borrower and
the said Banks or in such manner as the said Banks may direct and the said
Banks shall be entitled to require all such calls or moneys received by the
Borrower to be applied either wholly or partly in or towards the payment or
satisfaction of the principal amount, interest and other moneys due to the said
Banks but in default of the said Banks requiring the said calls or moneys to be
applied as aforesaid within one month of their being paid, the Borrower may
without the consent of the said Banks apply the whole or the balance thereof
over and above what shall be required by the said Banks to be otherwise applied
to the general purposes of the Borrower as it shall think fit provided also that all
money hereunder to be rceived by the Borrower from its members in advance of
calls upon the shares shall be held by the Borrower upon trust for the said Banks
and so as to form part of the security and shall be dealt with in the manner
hereinbefore mentioned in the case of calls or other moneys received by the
Borrower.
h) The Borrower agrees that all other terms and conditions and covenants stipulated
or which may be stipulated by the said Banks from time to time as applicable to
the said Facilities shall be construed and treated as if the same have been
incorporated herein in extenso.
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Annexure-6 (Contd.)
73
ARTICLE IV
1. If the Borrower shall fail to repay the said Facilities or pay interest or any portion thereof
in terms of this Agreement or shall commit any breach of any covenant to be observed
or performed on its part herein contained and on the failure of the Borrower to remedy
the same forthwith or if any circumstances shall occur which in the opinion of the said
Banks or any of them is prejudicial to or imperils the Security of the said Banks or if
the security created in favour of the other Lenders becomes enforceable or if any
distress or execution is levied or enforced against any property or assets whatsoever
of the Borrower or if any person, firm or Company shall take any steps towards applying
for or obtaining an order for the appointment of a REceiver of any property or assets
whatsoever of the Borrower and Receiver is appointed or the Borrower makes
compromises with its creditors or the Borrower shall suspend or cease to carry on
business or fail to conduct its business to the satisfaction of the said Banks or any of
them, then and in any such case (the decision of the said Banks that the aforesaid
events or circumstances have occurred shall be final conclusive and binding on the
borrower), the entire amount standing at the foot of the Cash Credit interest, costs,
charges, expenses and other money payable in respect thereof shall forthwith become
at the option of the said Banks payable at once.
2. The Borrower shall not be in anywise concerned with the proportion in which any
moneys applicable under the aforesaid Clause are divided and shall not have any claim
whatsoever against any of the said Banks in relation to any act or thing done, omitted,
permitted or suffered by any one of the said Banks in respect of the division between
the said Banks of any moneys applicable as aforesaid.
3. A. All goods, book-debts, movables and other assets hypothecated, pledged, or
otherwise charged to the said Banks as security for any of the said Facilities and
also all immovable properties given as security for the said Facilities or any of
them as may be required by the said Banks shall be kept at the Borrowers risk
and expense in good condition and fully insured against loss or damage as may
be required by the said Banks due to any reason whatsoever and particularly the
machineries hypothecated and/or pledged to the said Banks against fire and/or
such other risk(s) as the said Banks may from time to time stipulate in the joint
names of the Borrower and the said Banks with an insurance Company approved
by the said Banks and for such amount as the said Banks may consider necessary
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Annexure-6 (Contd.)
74
and that the insurance policies shall be delivered to the said Banks when required
by the said Banks to do so. If the Borrower fails to effect such insurance the
said Banks may, but without being obliged to do so, insure the said goods,
movables and other asets and immovable properties against fire and/or such risk(s)
in such joint names and debit the premium and other charges to the said Accounts
of the Borrower opened or to be opened and in the event of the said Banks being
at any time apprehensive that the safety of the goods, movables and other assets
and machinaries is likely to be endangered owing to riot and/or strike (including
fire arising therefrom) and/or floods, earthquakes, lightning, typhoon, storm, tempest
and/or also resulting in the loss of production thereform the said Banks may at
their discretion but without being bound to do so insure or require the Borrower
to insure the same in such joint names against any damage arising therefrom
the cost of such extra insurance being payable by the Borrower and be debited
to the said Accounts. If the said Banks desire that the goods, movables and other
assets shall be insured against theft, the Borrower shall provide the necessary
cover therefor. the Borrower shall provide if the said Banks so direct a sufficient
insurance cover against breakdown of such machineries and against loss and
damage by fire, lightning and flood to any immovable properties of the Borrower.
The Borrower further expressly agrees that the said Banks shall be entitled to
adjust, settle, compromise or refer to arbitration any dispute arising under or in
connection with any insurance and such adjustment, settlement, compromise and
any award made on such arbitration shall be valid and binding on the Borrower
and also to receive all moneys payable under any such insurance or under any
claim made thereunder and to give a valid receipt therefor, and that the amount
so received shall be credited to the Borrowers Accounts and the Borrower shall
not raise any question that a large sum might or ought to have been received or
be entitled to dispute its liability for the balance remaining due on any Account
or Accounts after such credit. Provided that the said Banks may at their own
absolute and unqualified discretion waive all or any of these requirements.
3. B. If any proceeds of any Policy of Insurance are received by the Borrower, it shall
forthwith pay the same to the Lead Bank for being applied in the manner
hereinafter provided (and so long as the same are not paid to the Lead Bank,
the Borrower will hold the proceeds on behalf of and as trustees of the said
Banks) that is to say, in proportion to the sums outstanding on the said Cash
Credit Account(s) or Other Account(s) respectively at the time of payment and
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Annexure-6 (Contd.)
75
shall keep alive and amaintain such Insurance throughout the continuance of the
security and deliver to the Lead Bank the renewal receipts. In default, the Lead
Bank or the said Banks may (but shall not be bound to) keep in good condition
and render marketable the said properties or effects or renew such insurance.
Any premium paid by the Lead Bank or any of the Said Banks and any costs,
charges and expenses incurred by the Lead Bank or any of the said Banks for
the purposes aforesaid shall be repaid by the Borrower on demand forthwith and
shall until repayment (with interest at the rate or rates as mentioned above) be
and form part of the amount secured as aforesaid. All sums received under such
Insurance shall be applied in or towards liquidation of the amount for the time
being due to the said Banks or any of them on account of the said Facilities.
PROVIDED THAT the Borrower may without payment to the said Banks, if the
said Banks so agree, replace the outmoded equipment or assets by assets of
equivalent or greater value.
4. The Borrower shall not remove or dismantle any of the assets to be comprised in the
said security without the consent in writing of the said Banks except in any case where
such removal or dismantling shall in the opinion of the Borrower be rendered necessary
by reason of the same being worn out, obsolete, discarded, injured, damaged or broken
and in such a case will replace those so worn out, obsolete, discarded, injured,
damaged or broken by others of a similar nature and of atleast equal value and shall
also whenever necessary renew or replace all such plant and machinery to be used
for the purpose of or in connection with the business of the Borrower when and as
the same shall be worn out, obsolete, discarded, injured, damaged or broken.
5. The Borrower agrees that pending seizure by the said Banks or any of them of the
said properties and any documents therefor, any insurance moneys received by the
Borrower shall be held by the Borrower as the exclusive property of the said Banks
subject to the rights of the said Banks specifically appropriated to the security and the
Borrower will not without the written consent of the lead Bank first had and obtained
make or suffer nor attempt to make or suffer any mortgage, charge, lien or encumbrance
to affect the same or any part thereof nor do or allow anything which may prejudice
and security hereby created or agreed to be created nor create any security whatsoever
save as approved by the Lead bank.
6. Nothing herein contained shall prejudice or affect any general or special lien to which
any of the said banks is or may be by law or otherwise entitled or any rights or
remedies of any of the said banks in respect of any present or future security,
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Annexure-6 (Contd.)
76
CHAPTER-7
guarantee, obligation or decree for any other indebtedness or liability of the Borrower
to any of the said Banks or shall preclude any of them from enforcing or having
recourse in the first instance to any other security held by them or any of them from
the Borrower and the said Banks or any of them shall be entitled to sue on any such
securities without being bound to sue on all such securities.
7. During the subsistence of the Liability of the Borrower under or in respect of any of
the said Facilities, the said banks without prejudice to their respective rights referred
to in this Agreement shall have a right to appoint and/or remove, from time to time, a
Director or Directors not exceeding two on the Board of Directors of the Borrower as
nominee Direcotr(s) to protect the interests of the said Banks, subject however that
the Director or Directors so appointed by the said Banks shall not be liable to retire
by rotation and need not possess any share qualification prescribed by the Articles of
Association of the Borrower.
8. The Borrower agrees, declares, affirms and confirms that notwithstanding any of the
provisions of the Contract Act or any other law, or any terms and conditions to the
contrary contained in this Agreement and/or and security documents, any payment(s)
made by the Borrower to the said Banks shall unless otherwise agreed to by the said
Banks in writing be appropriated by the said Banks in the manner following :
a) first, towards costs, charges, expenses and other moneys, due and payable or
becoming due and payable to the said Banks;
b) secondly, towards interest due and payable and/or accruing due and payable to
the said Banks; and
c) lastly, towards repayment of the amount of any installment(s) of the principal sums
due and payable or becoming due and payable to the said Banks;
All the aforesaid amounts having become due and payable and/or becoming due and
payable by the Borrower to the said Banks under this Agreement and/or under any of
the security documents executed between the Borrower and the said Banks whether
the recovery thereof has or has not become barred by any law in force for the time
being as to the limitation of suits.
Annexure-6 (Contd.)
77
ARTICLE V
1. Any Notice to be given to the Borrower may be made or given by leaving the same at
or posting the same by registered post in an envelope addressed to the Borrower and
at its Registered Office and any Notice to be given to any of the said banks may be
given be leaving the same at or posting the same by registered post in an envelope
addressed to such Bank at its office where the relevant Cash Credit Account(s) or Other
Account(s) of the Borrower is maintained and every such Notice shall be deemed to
be received, as the case may be, at which it is left or at the time at which it would
have been delivered in the ordinary course of post at such Registered Office of the
Borrower or such office of the bank concerned as the case may be.
2. The borrower shall pay on demand to the said Banks and each of them the costs
actually incurred between Attorney and Client, or to be incurred by the said banks or
any of them in connection herewith or with the enforcement or attempted enforcement
of the security or the protection or defence or perfection thereof or for any recovery of
any moneys agreed to be secured to the said Banks and of all suits and proceedings
of whatsoever nature for the enforcement of the security agreed to be created for the
recovery of such moneys or otherwise in connection therewith or in which any of the
said Banks may be joined as a party or otherwise involved by reason of the existence
of the security agreed to be created.
3. The Borrower hereby agrees to pay to each of the said Banks as may be directed by
the said Banks, all costs, charges and expenses (actually incurred as between Attorney
and Client) incurred by the said Banks or any of them for the preservation, protection
and perfection of the security agreed to be created and/or for attempted or actual
realisation or enforcement thereof.
4. For all or any of the purposes aforesaid, the Borrower irrevocably constitutes and
appoints each of the said Banks to be the Borrowers true and lawful attorney to do
and execute for and in the name and on behalf of the Borrower, all or any or any of
the following acts, deeds and things, that is to say;
a) To take and carry on the business of the Borrower and complete any engagements
and contract;
b) To sign register, file any application forms, contracts, agreements, transfers,
acceptance, rceipts, acquittances, returns and any other documents and to sign
and endorse all cheques, promissory notes, bills of exchanges, bills of lading,
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Annexure-6 (Contd.)
78
dividend mandates or other orders for payment of money or delivery of property;
c) To sell, transfer, assign or deal with any goods and other movables;
d) To demand and receive all debts, sums of money, principal money, dividends,
interest and dues of whatever nature;
e) To appoint selling agents and if necessary to undertake new kind of activity;
f) To realise all the assets whether movable or immovable including the goodwill of
the business;
g) If considered proper, to wind up the Borrowers business.
h) To tender contract of purchase, accept and sign the transfer into the name of
the Borrower of any securities, shares, stocks, debentures, funds or any other
securities, to apply for and accept allotment of any shares and securities and to
sell, endorse, negotiate, transfer and assign any securities which do now or shall
hereafter stand in the name of the Borrower or to which the Borrower is now or
may at any time hereafter be entitled to demand, receive and collect interest and
dividend due or to accrue due on any such securities, shares, stocks, debentures,
funds and other securities and apply the proceeds of such sale, endorsement,
transfer, negotiation and assignment and the recovery of any interest and dividend
in satisfaction of any monies due by the Borrower to the said Banks and to
endorse and transfer all or any such securities, shares, stocks, debentures, funds
and other securities which may form time to time or at any time be in the
possession of the said Banks whether for safe custody or otherwise or held by
the said Banks as security for any money payable to the said banks by the
Borrower in respect of any account or general balance of account or otherwise;
i) To appoint a proxy or proxies for the purpose of representing the Borrower and
voting in meeting or meetings of any company or Corporation in which the
Borrower holds any shares, debentures, stocks, etc.
j) To deal with the assessment of the Borrower in respect of income tax, super tax,
wealth tax, gift tax, expenditure tax, capital gains tax and any other taxes on
income revenue or capital and levy of customs and/or excise duties and to apply
for and to receive refunds of any such tax or taxes or levy or levies;
k) To attend and represent the Borrower before any authority or tribunal and for that
purpose to sign, execute and deliver all such documents and make all such
declarations as may be necessary;
CHAPTER-7
Annexure-6 (Contd.)
79
l) Generally to act in the premises as fully and effectually with all intents and
purposes to do all things as are necessary and which the Borrower would do if
personally present;
m) For all and any of the purposes, aforesaid to appoint a substitute or substitutes;
i) The Borrower hereby ratifies and confirms all the acts things deeds
performed or to be performed by each of the said Banks or their respective
nominees or substitutes in pursuance of any of the aforesaid powers and
the powers hereby conferred shall not be determined or affected by the fact
of the Borrower acting personally or through another in the premises;
ii) The powers vested in each of the said banks shall be irrevocable and subsist
in favour of each of the said Banks till all the dues of the Borrower to the
said Banks are fully satisfied.
iii) The aforesaid powers under this clause may be exercised by each of the
said Bank in its sole discretion in consultation with the Lead Bank but the
exercise of powers is not obligatory on any of the said Banks.
5. The Borrower hereby agrees that it shall observe and perform each and every of the
aforesaid obligations, covenants and declarations and in the event of any breach or
default thereof, the said Banks shall be at liberty to call up the entire outstandings
under the Cash Credit account(s) or Other Account(s) and make it payable forthwith.
Without prejudice to the aforesaid and in addition thereto, the said Banks shall be at
liberty to freeze the operations in the said Cash Credit Account(s) or other Account(s)
at their discretion. In the event of the Borrower persisting in its default, the said Banks
shall be entitled to charge, without prejudice to its other rights as aforesaid and without
giving any notice in that regard a higher rate of 2 (two) percentage points above the
maximum lending rate prescribed by the Reserve Bank of India from time to time till
the default in question is duly rectified or remedied.
6. This Agreement is in addition to and not in derogation of the agreements already
entered into by the Borrower with said Banks or any one or more of them or any other
Bank in respect of the Working Capital Limits enjoyed by the Borrower prior to the
sanction of the said Facilities by the A Bank Consortium. Notwithstanding anything to
the contrary contained herein or in the Agrements entered into as aforesaid prior to
this Agreement, all the obligations and liabilities of the Borrower in respect of the earlier
Limits authorised and subsisting shall, unless otherwise agreed to by the said Banks,
be valid, effectual and binding on the Borrower as if those obligations and liabilities
CHAPTER-7
Annexure-6 (Contd.)
80
are herein set out in extenso and the security created by the Borrower for the earlier
Limits authorised shall stand modified authomatically as if the security for the said
Facilities to be created hereunder are expressly made applicable thereto.
7. This Agreement shall be current and valid until revoked in writing by the Borrower by
one months notice in advance served on the said Banks by the Borrower or untill all
the moneys due hereunder or all moneys due in respect of any Funded or Non-Funded
Facility availed of by the Borrower from the said Banks or any of them are paid in full
to the said Banks, whichever is later. Provided that the obligations and liabilities of the
Borrower hereunder in respect of the said Facilities prior to such revocation shall be
binding, valid and effectual as against the Borrower and the security to be created for
the said Facilities and its is specifically agreed to by the Borrower that the said Banks
shall be entitled to recover not only all such amounts as are found due under the said
Facilities out of such Securities but also all such amounts as may be found due and
payable by the Borrower to any of the said Banks in respect of any Funded or Non-
Funded Facility availed of by the Borrower from any of the said Banks prior to or by
the Borrower from any of the said Banks prior to or during the tenure of this Agreement.
In the event of any such revocation, the Borrower shall become ineligible to draw any
amounts further under the said Facilities. All the rights, benefits and powers as are
herein set out shall subsist in favour of the said Banks till all the dues of the Borrower
to the said Banks as aforesaid are finally paid in full and satisfied. The Borrower shall
bear all expenses such as Solicitors and lawyers fees, stamp duty, inspection charges
and other incidental expenses incurred in connection with the realisation or recovery of
any such sums from the Borrower.
IN WITNESS WHEREOF the Common Seal of the Borrower has hereunto and to five
counterparts thereof been affixed and the said Banks have caused these presents and five
counterparts thereof to be executed by their respective authorised officials the day month
and year first hereinabove written.
BORROWER COMPANY For Selves and other
Member Banks (B,C,D & E Banks) of
A Bank Consortium,
LEADER BANK (UCO BANK)
1. 1.
2. 2.
CHAPTER-7
Annexure-6 (Contd.)
81
THE FIRST SCHEDULE ABOVE REFERRED TO
A BANK B BANK C BANK D BANK E BANK
CASH CREDIT
Hypothecation of
Stocks and Goods
Limits
Hypothecation of
Book Debts
Sub-Limit
BILLS PURCHASED/
DISCOUNTING
LIMIT
CHEQUE PRUCHASE
LIMIT Sub-Limit
IMPORT/INLAND
LETTER OF CREDIT
SIGHT/DA upto
180 days = Limit
INLAND REVOLVING
LETTER OF CREDIT
SIGHT/DA upto
60 days Sub-Limit
GUARATEE
LIMIT
Drawings Against
Uncleared EFFECTS
BILLS ACCEPTANCE
LIMIT
TOTAL :
(*The above List is only illustrative and not exhaustive)
CHAPTER-7
Annexure-6 (Contd.)
82
CHAPTER-7
THE SECOND SCHEDULE ABOVE REFERRED TO
Particulars of Interest & Commission
I. CASH CREDIT LIMIT Rates*
Interest
II. BILLS PURCHASED/
DISCOUNTING LIMIT
Interest
III. IMPORT/INLAND
LETTER OF CREDIT/
INLAND REVOLVING
LETTER OF CREDIT
LIMIT COMMISSION
IV. GUARANTEE LIMIT
COMMISSION
V. DRAWING AGAINST
UNCLEARED EFFECTS
INTEREST
PLUS SERVICE CHARGES as are applicable to the said Facilities from time to time.
* Rates to be filled in as per the prevailing rates at the time of execution.
Annexure-6 (Contd.)
83
ANNEXURE-7
Joint Deed of Hypothecation
THIS DEED i s made at ........................................................................... thi s
the ............................................................ day of ............................................. 200...............,
by ............................................................ Limited, a Company within the meaning of the
Companies Act, 1956 and having its Registered Office at ............................................................
(hereinafter called the Borrower, which expression shall, unless it be repugnant to the subject
or context thereof, include its successors and assigns) in favour of A Bank, a body corporate,
constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970/1980 and having its Head Office at ............................................................ and a
*Regional Office amongst other places at ............................................................ (hereinafter
called A Bank, which expression shall, unless it be repugnant to the subject or context
thereof, include its successors and assigns), B Bank, a Statutory Corporation constituted by
and under the ............................................................ and having one of its Local Head Offices
at ............................................................ and a Zonal Office amongst other places
at ............................................................ (hereinafter called B Bank, which expression shall,
unless it be repugnant to the subject or context thereof, include its successors and assigns),
C Bank, a body corporate, constituted by and under the Banking Companies (Acqusition and
Transfer of Under taki ngs) Act, 1970/1980 and havi ng i ts Head Offi ce
at ............................................................ and a *Regional Office amongst other places
at ............................................................ (hereinafter called C Bank which expression shall,
unless it be repugnant to the subject or context thereof, include its successors and assigns),
D Bank, a body corporate constituted by and under the Banking Companies (Acquisition and
Transfer of Under taki ngs) Act, 1970/1980 and havi ng i ts Head Offi ce
at ............................................. and a *Regi onal Offi ce amongst other pl aces
at ............................................................ (hereinafter called D Bank which expression shall,
AND E Bank, a Banking Company within the meaning of the Banking Regulation Act, 1949
and A Company within the meaning of the Companies Act, 1956 and having its Pricipal Place
of Business in India at ............................................................ and a *Regional Office
at ............................................................ hereinafter called E Bank which expression shall,
unless it be repugnant to the subject or context thereof, include its successors and assings).
CHAPTER-7
84
All of which A Bank, B Bank, C Bank, D Bank and E Bank are hereinafter collectively referred
to as the said Banks or the A Bank Consortium which expression shall, unless it be
repugnant to the subject or context thereof, include each of them or any one or more of
them and their respective successors and assings;
Office)
By consent of all the Parties, A Bank is designated and recognised as the Lead Bank of
the A Bank Consortium, while B Bank is designated and recognised as the Second Lead
Bank of the A Bank Consortium.
If the Consortium of Banks is increased or diminished from time to time by adding to or
dropping of one or more Banks or is changed by substitution of one Bank by another during
the currency of this Agreement, then the Reconstituted Consortium will be governed by the
provisions of this Deed as if they have been added or dropped herein, as the case may be
and the term the said Banks shall mean and shall be deemed to include the Reconstituted
Consortium as well.
WHEREAS
1. The Borrower has been sanctioned, inter alia, the Working Capital Facilities by the A
Bank Consortium in the proportion as mentioned in the Working Capital Consortium
Agreement dated .............................. 200 ............... entered into by the Borrower with
the said Banks (hereinafter referred to as the Consortium Agreement) for meeting a
part of the Working Capital needs of the *Borrower/of the Borrowers *Division
at .............................. in the State of .............................. in addition to/in replacement of
existing facilities and replacement of certain other facilities on the terms and conditions
set out therein and such other conditions as may be stipulated by the A Bank
Consortium from time to time.
(*Delete whichever is inapplicable)
The Working Capital Facilities are therein an hereinafter collectively referred to as the
said Facilities, which expression shall, unless it be repugnant to the subject or context
thereof, include each such facility or any one or more of them. The Limits or Sub-
Limits as so fixed from time to time during the tenure of the Consortium Agreement
shall be deemed to be the Limits or Sub-Limits covered under these Presents.
2. Subject to the provisions therein contained, each of the members of the A Bank
Consortium agrees to the Borrower availing of all or some or any of the said Facilities
at the sole and absolute discretion of the said Banks by way of overdrafts, cash credits,
CHAPTER-7
Annexure-7 (Contd.)
85
preshipment and postshipment credits, opening of Letters of Credit, issuing of guarantees
including deferred payment guarantees and indemnities, negotiation and discounting of
demand and/or usance bills and cheques and such other facilities as may be agreed
upon from time to time for sums upto the limits or sub-limits as aforesaid and in no
circumstance to an amount at any one time exceeding in the aggregate with interet
thereon and other costs, if any, such limit or limits as the said Banks may, from time
to time, decide in respect of each such facility or in the aggregate, to be made available
at any one or more Branches of the said Banks.
3. The Borrower expressly agrees and undertakes that all the said Facilities or any of
them shall be utilised exclusively for the purposes set forth in the Borrowers proposals
to the Lead Bank and for no other purpose and no change shall be made therein
without the written sanction of the said Banks.
4. Interest shall be charged on the outstandings in the said Account(s) at such rate or
rates as may be determined by the said Banks from time to time and if such rate or
rates is or are linked to the Commercial Banks Advance Rate, then the effective rate
of interest on such Account(s) shall correspondingly stand changed on account of any
revision therein from the date of any such revision. Where interest is charged by the
said Banks at a concessionary rate or rates because of the said Facilities being granted
by the said Banks to the Borrower under the Interest Subsidy Scheme or any other
Scheme(s) formulated by the Government and/or Reserve Bank of India or any
Rehabilitation Scheme, the Borrower hereby agrees, declares, confirms and affirms that
in the event of the withdrawal, modification and/or variation of such Scheme(s), the
concessionary rate or rates of interest shall stand withdrawn and the usual normal rate
or rates of interest of the said Banks as mentioned above applicable at the material
time to the said Facilities shall become effective and the said Banks shall become
entitled to charge the Borrower such rate or rates of interest and the Borrower shall
pay to the said Banks on demand the difference between such concessionary rate or
rates and the usual normal rate or rates of interest of the said Banks as mentioned
above applicable at the material time to the said Facilities and such difference shall
become due and payable by the Borrower to the said Banks from the date the
withdrawal, modification and/or variation of any such Scheme(s) becomes effective.
Interest shall be calculated respectively on the daily balance of such Account(s) and
be debited thereto on the last working day of the month or quarter according to the
practice of the said Banks. The said Banks shall also be entitled to charge at their
discretion such enhanced rates of interest on the Account(s) either on the entire
CHAPTER-7
Annexure-7 (Contd.)
86
outstandings or on a portion thereof as the said Banks may fix for any irregularity and
for such period as the irregularity continues or for such time as the said Banks deem
it necessary, regard being had to the nature of the irregularity and the charging of such
enhanced rate of interet shall be without prejudice to the other rights and remedies of
the said Banks.
5. The Borrower agrees with each of the said Banks that unless otherwise agreed to by
the said Banks or any one or more of them, the Borrower shall repay the said Facilities
to each of the said Banks forthwith on demand of all such amounts as may be standing
at the foot of the Cash Credit Account(s) or other Accounts (hereinafter referred to as
the said Account(s) together with interest, compound interest, additional interest,
liquidated damages, costs, charges, expenses and other moneys thereon at the rate
or rates as may be applicable thereto as set out in the Second Schedule to the said
Consortium Agreement. Failure of the Borrower to repay shall entail in the Borrower
being treated as a defaulter and the amount due as in default invoking the provisions
as to defaults as hereinafter stated.
6. The Borrower further agrees that in case the said Facilities are eligible for cover under
any Guarantee Scheme, the Borrower shall bear the guarantee fee paid/to be paid in
connection with the said Facilities and it is agreed that the said guarnatee fee shall be
debited to the Borrowers Account and shall be treated as part of the said Facility and
shall carry like interest and be secured in the same manner as the said Facility.
7. One of the conditions of the said Consortium Agreement is that the Borrower shall
create, inter alia, in favour of the said Banks, a first charge on all the Current Assets
of the Borrower, namely, the Borrowers Stocks of Raw Materials, Semi-finished and
Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumable
Stores and Spares), Bills Receivable and Book Debts and all other movables (excluding
such movables as may be permitted by the A Bank Consortium in their discretion from
time to time), both present and future.
8. Pursuant thereto the said Banks have called upon the Borrower to create the aforesaid
first charge by executing a Joint Deed of Hypothecation in favour of the said Banks
being these Presents, which the Borrower has agreed to do in the manner hereinafter
appearing :
NOW THIS DEED WITNESSETH AND IT IS HEREBY AGREED AND DECLARED AS
FOLLOWS :
1. A. The Borrower hereby agrees with each of the said Banks that it will abide by the
CHAPTER-7
Annexure-7 (Contd.)
87
terms and conditions contained in the said Consortium Agreement, as may be
modified or amended or varied and in force from time to time during the tenure
of this security. These presents shall be read in conjunction with the said
Consortium Agreement as aforesaid and shall be construed accordingly. In the
event of any inconsistency or repugnancy between the two, the said Consortium
Agreement as aforesaid shall previal to all intents and purposes.
B. The Borrower agrees to repay to each of the said Banks their respective principal
amounts on demand as mentioned in the said Consortium Agreement.
C. The Borrower agrees with each of the said Banks that so long as the said
Facilities or any portion thereof will remain outstanding or unpaid, the Borrower
will pay to each of the said Banks interest and commission at the rates per annum
as indicated in the said Consortium Agreement.
2. In pursuance of the said Consortium Agreement and in consideration of the said Banks
having granted and/or agreed to grant to the Borrower all or some or any of the said
Facilities for the purposes and subject to the terms and conditions specified in the said
Consortium Agreement, the Borrower doth hereby hypothecate to and in favour of the
said Banks jointly and to each of them severally All and Singular the Borowers Stocks
of Raw Materials, Semi-finished and Finished Goods, Stores and Spares not relating
to the Plant and Machinery (Consumable Stores and Spares), Bills Receivable, Book
Debts and all other movables of the Borrower (excluding such movables as are permitted
by the said Banks from time to time) but including documents of title to goods and
other assets, such as outstanding moneys, receivables including receivables by way of
cash assistance and/or cash, including under the Cash incentive Scheme or any other
Scheme claims including claims by way of refund of customs/excise duties under the
Duty Drawback Credit Scheme or any other Scheme, Bills, invoices, documents,
contracts, engagements, securities, investments and rights, both present and future, of
the *Borrower/pertaining to the Borrowers *Division at ................................. in the State
of ............................................ being and lying in the Borrowers Premises or Godowns
of or rented and whether lying loose or in cases or otherwise used in the business of
the Borrower at the said site or in transit now belonging to or that may at any time,
during the continuance of the said Facilities and this security, belong to the Borrower
or that may be held by any party to the order or disposition of the Borrower, (which
assets comprised in this security are hereinafter for brevitys sake referred to as the
hypothecated assets) short particulars whereof are given in the Schedule hereto to
the end and intent that the charge by way of hypothecation hereby created on the said
CHAPTER-7
Annexure-7 (Contd.)
88
hypothecated assets shall be a security by way of first charge in favour of the said
Banks jointly and to each of them severally for the due repayment and discharge on
demand of the said Facilities to the said Banks together with interest thereon at the
agreed rates and rests as mentioned in the said Consortium Agreement and all costs,
charges, expenses and other moneys payable in respect of the said Facilities and also
for the due observance, performance and discharge by the Borrower of all obligations
arising out of or in respect of the said Facilities or which may give rise to a pecuniary
liability and for all costs (between Attorney and Client) on full indemnity basis, charges,
expenses and other moneys whatsoever paid or incurred by the said Banks in
connection with the insurance, protection, observance, enforcement or realisation of the
Security and for recovery of their respective dues as also as security for the payment
and discharge of all indebtedness whatsoever or liability of the Borrower to the said
Banks in respect of any liability undertaken by the said Banks under any letter of credit
opened or guarantee or indemnity issued by the said Banks for the Borrower or
otherwise in respect of any account at any office of the said Banks (Whether in India
or elsewhere and whether accrued, accruing or contingent and whether solely or jointly
with others) and any bills of exchange promissory notes or instruments at any time
drawn, made, accepted or endorsed by the Borrower solely or jointly with others which
the said Banks may discount or become interested in together will all interest, discount,
commission, charges, costs (between Attorney and Client), and expenses payable to
or incurred by the said Banks in relation thereto so that the security hereby created
shall be and shall always be and remain a continuing security for all moneys,
indebtedness and liabilities aforesaid notwithstanding the existence of a credit balance
on the said Account(s) at any time or any partial payments or fluctuations of accounts
and the said security shall be in addition to any other security for any such indebtedness
or liability now held or hereafter to be held by the said Banks. Provided, however, that
where the said Banks have at the specific request of the Borrower and in their sole
discretion communicated in writing to the Borrower that in respect of any specific items
of goods, book-debts, movables and other assets, this charge by way of hypothecation
will not operate, such goods, book-debts, movables and other assets shall be deemed
as not having been hypothecated to the said Banks as stated hereinbefore.
(*strike out whichever is inapplicable)
3. The Borrower hereby declares, convenants, engages and agrees with the said Banks
jointly and with each of them severally as follows :
a) All moneys drawn from the said Banks and credited in the said Account(s) shall
CHAPTER-7
Annexure-7 (Contd.)
89
be solely applied for the working capital needs of the Borrower in its usual ordinary
course of business and for no other purpose;
b) All advances made by the said Banks under the said Account(s) and the balances
due to the said Banks thereunder shall be repayable to the said Banks on
demand;
c) Subject to the powers conferred hereunder on the said Banks and each of them,
the Borrower may, in the ordinary course of business, sell and dispose of any of
the hypothecated assets, but the Borrower shall on any and every such sale or
on receipt of documents or sale proceeds thereof deliver the documents or pay
the net proceeds of the sale in satisfaction (so far as the same shall extend) of
the balances then due and owing on the said Account(s) to the said Banks or
any of them as hereinafter provided. Provided further that the Borrower shall not
make any sale of any of the hypothecated assets upon being prohibited in writing
by any of the said Banks from doing so;
d) The Borrower will regulate its drawings out of and payments into each of the said
Account(s) in such manner that the amount due from time to time on each of
the said Account(s) shall be kept as nearly as practicable pro rata to the respective
drawals by the Borrower from the other Banks in the A Bank Consortium;
e) i) The Borrower shall from time to time on demand by the said Banks furnish
to the said Banks a list of all the Book Debts with the particulars of the
debts and the debtors and produce to the said Banks its Books of Account
and other documents to enable the said Banks to ascertain the Book Debts
from time to time and the Borrower shall, whenever required produce the
evidence in support thereof. The Borrower shall also without such demand
furnish to the said Banks on the first day of each calendar month a similar
list of all the Book Debts.
ii) The Borrower shall execute on demand by the said Banks such further
documents as may be required by the said Banks to vest the said Book
Debts or any of them in the said Banks and to render the same readily
realisable or transferable by the said Banks at any time.
iii) The Borrower declares that the said Book Debts shall always be the
Borrowers absolute property at its sole disposal and free from any prior
charge or encumbrance and declares that nothing contained in this Deed
shall operate to prejudice the rights and remedies of the said Banks in
CHAPTER-7
Annexure-7 (Contd.)
90
respect of any present or future security, guarantee, obligation or decree for
any indebtedness or liability of the Borrower to the said Banks.
iv) The Borrower agree that it will not compound or release any of the said
Book Debts nor do anything whereby the recovery of the same may be
impeded, delayed or prevented without the consent of the said Banks and
further agrees to keep proper books of account of its business(es) and will
at all times as and when required, produce such books of account and all
vouchers, papers and documents relating thereto for the inspection of the
said Banks and any of its Officers or agents and allow free access to them
without any demur.
v) Subject as aforesaid, the Borrower shall be at liberty to deal with the said
Book Debts and claims in due course of business on the express
understanding that the said Book Debts and all proceeds and/or realisations
thereof and documents of title relating thereto are always kept distinguishable
and held as the exclusive property of the said Banks specifically appropriated
to this security to be dealt with only under the directions of the said Banks
and the Borrower shall not create or suffer any mortgage, charge, lien or
encumbrance to affect the same or any part thereof nor do or allow anything
to be done that may prejudice the security of the said Banks created
hereunder.
vi) The Borrower shall furnish and verify all such statements, reports, returns,
certificate vouchers and information as may from time to time be required
by the said Banks in regard to the above.
vii) The Borrower shall submit to the said Banks punctually monthly or oftener
as and when required by any of the said Banks full particulars of all the
assets of the Borrower and of the hypothecated assets and shall allow such
Bank or its authorised agent to take inspection of such hypothecated assets
and of all records and will produce such evidence as such Bank may require
as to the cost and value of any such hypothecated assets and it shall be
lawful for any of the said Banks at any time and from time to time during
the continuance of this security to appoint and employ at the expenses of
the Borrower in all respects and either temporarily or for such periods as
such Bank shall think fit a person or persons or firm or company to inspect
and value on behalf of the said Banks all or any of the hypothecated assets
CHAPTER-7
Annexure-7 (Contd.)
91
and the Borrower shall pay to the said Banks on demand the fees or other
remuneration payable to any such person, firm or company and the costs,
charges and expenses of and incidental to such valuation (the Banks
statement therefor being conclusive in that behalf) and in default each Bank
shall be at liberty to debit the amount thereof to the respective Account of
the Borrower. Any such valuation shall be conclusive against the Borrower.
f) If the Borrower shall fail to repay on demand any moneys which ought to be paid
by it under the said Consortium Agreement or hereunder including pricipal, interest
and other moneys or shall commit any breach of any covenant, agreement,
undertaking or declaration on its part to be performed as herein contained or it
appears to the said Banks that false or misleading information in any material
particular was given in the Borrowers proposals made to the Lead Bank and such
breach or default is not remedied forthwith and on the failure of the Borrower to
remedy the same or if any circumstance shall occur which, in the opinion of the
said Banks or any of them, is prejudicial to or imperil or is likely to prejudice or
imperil this security or if any distress or execution is levied or enforced against
any property or assets whatsoever of the Borrower or if any person, firm or
company shall take steps towards applying for or obtaining an order for the
appointment of a Receiver of any property or assets whatsoever of the Borrower
or if such Receiver is appointed or if any person, firm or company shall apply or
obtain an order for the winding up of the Borrower or if any such order is made
or if any step is taken by any person, firm or company towards passing any
resolution to wind up the Borrower or if any such resolution shall be passed or if
the Borrower shall suspend or cease to carry on business or to conduct its
business to the satisfaction of the said Banks or any of them, then and in any
such case the entire sums in respect of the said Facilities due to the said Banks
together with interest, costs, charges and other moneys payable in respect thereof
shall forthwith become, at the option of the said Banks, payable at once and
further it shall be lawful, for the said Banks or any of them forthwith or any time
thereafter and without any notice to enter into or upon any place or premises
where or wherein any of the hypothecated assets may be or are situated or kept
or stored (and for the purpose of such entry to do all acts, deeds or things as
are deemed necessary by the said Banks or any of them) and to inspect, value,
insure and/or to take charge of and/or to seize, recover, receive, appoint receivers
of and/or take possession of all or any of the hypothecated assets and thereupon
either forthwith or at any time and from time to time and without any notice either
CHAPTER-7
Annexure-7 (Contd.)
92
by public auction or tender or private contract or tender to sell and dispose of all
or any part of the hypothecated assets in such manner as the said Banks or
any of them shall think fit and to apply the net proceeds of such sale in or towards
the payment of all principal and interest then outstanding on all the said Account(s)
or any of them in such manner and in such proportions as are hereafter specified
and subject thereto in paymnt of all other moneys due hereunder to any of the
said Banks in such manner and in such proportions as the said Banks may agree
among themselves and to endorce, realise, settle, compromise and deal with any
rights aforesaid without being bound to exercise any of such powers or being liable
for any losses in the exercise thereof and without prejudice to the said Banks
rights and remedies of suit or otherwise and notwithstanding there may be any
pending suits or other proceedings, the Borrower hereby undertakes to transfer
and deliver to the said Banks or any of them all relative contracts, securities, bills,
notes, hundies and documents and agrees to accept the said Banks accounts
and sales and realisations and to pay any shortfall or deficiency thereby shown
and if the net sum realised by such sale shall be insufficient to pay the amount
secured, the said Banks or any of them shall be at liberty to apply any other
money or moneys in the hands of the said Banks or any of them standing to
the credit of or belonging to the Borrower in or towards the payment of the balance
and in the event of there being still a deficiency, the Borrower shall forthwith pay
such deficiency, provided that nothing herein contained shall in any manner
prejudice or affect the rights or remedies of the said Banks or any of them against
the Borrower individually. The said Banks shall not be responsible in any any for
the quantity, condition or safety of the said properties of which possession shall
be given to or taken or obtained by the said Banks.
g) If there shall be a surplus available in the hands of the said Banks or any of
them after payment of all the moneys hereby secured and owing to the said Banks
and to each of them, such surplus shall be applied by the said Banks and each
of them in or towards the payment or liquidation of any or all other moneys which
shall be or may become due from the Borrower to the said Banks or each of
them solely or jointly with any other person or persons or company by way of
loans, discounting bills, credit guarantees, charges or by way of any other debts
or liability including bills, notes, credits and other obligations current though not
then due or payable legal or any other demand, equitable, which the said Banks
or any of them may have against, the Borrower or any moneys in respect of any
Funded or Non-Funded Facilties availed of by the Borrower from the said Banks
CHAPTER-7
Annexure-7 (Contd.)
93
either prior to or during the tenure of the said Consortium Agreement and these
Presents or of which the law of set off or mutual credit would in any case admit
and where the Borrower is teken into or is in liquidation or otherwise and interest
thereon from the date on which any and all advance or advances in respect
thereof shall have been made at the rate or respective rates at which the same
shall be so advanced and the application of any moneys to be applied under this
sub-clause shall be in such manner and proportions as are hereinafter specified.
h) The Borrower shall not be in any way concerned with the proportion in which
any moneys applicable under this clause are appropriated and shall not have any
claim whatsoever agaisnt any of the said Banks in relation to any act or thing
done, ommitted, permitted or suffered by any of the said Banks in regard to the
appropriation among the said Banks of any moneys applicable as aforesaid.
i) The Borrower shall not remove or dismantle any of the hypothecated assets
without the consent in writing of the said Banks except in any case where such
removal or dismantling shall in the opinion of the Borrower be rendered necessary
by reason of the same being worn out, obsolete, discarded, injured, damaged or
broken and in such case will replace those so worn out, obsolete, discarded,
injured, damaged or broken by others of a similar nature and of at least equal
value and shall also whenever necessary renew or repalce all such assets to be
used for the purpose of or in connection with the business of the Borrower when
and as the same shall be worn out, obsolete, discarded, injured, damaged or
broken.
j) The Borrower agrees that pending seizure by the said Banks or any of them of
the said hypothecated assets and any documents therefor, any insurance moneys
received by the Borrower shall be held by the Borrower as the exclusive property
of the said Banks specifically appropriated to the security created hereunder and
the Borrower will not, without the written consent of thd said Banks, first had and
obtained make or suffer nor attempt to make or suffer any mortgage, charge, lien
or encumbrance to afect the same or any part thereof nor do or allow anything
which may prejudice the security hereby created or agreed to be created nor
create any security whatsoever save as approved by the said Banks.
k) The Borrower shall if so required by the said Banks or any of them cause, and
in default, the said Banks or any of them may themselves or itself cause, a Board
or Boards with the name of the said Banks legibly and distinctly printed or written
CHAPTER-7
Annexure-7 (Contd.)
94
thereon to be placed and at all times maintained in a conspicuous position upon
and within all godowns, jaithas or other places of storage into or upon which any
of the hypothecated assets for the time being hypothecated and charged as
aforesaid are or shall be brought in during the continuance of this security.
l) The Borrower shall forthwith upon obtaining any lease or tenancy, leave or licence
to occupy any godown or jaitha or any place containing any of the hypothecated
assets which is not its own property if so required by the said Banks or any of
them (and subject to the provisions of any law in this behalf) register the same
in the names of the said Banks and hand over the receipts for any rents or other
dues payable in respect thereof to the said Banks or any of them as may be
mutually agreed among the said Banks and keep the said Banks indemnified
against any and all liability in consequence of such transfer or registration in the
said Banks names and shall pay any sum becoming payable to the said Banks
or any of them under the said Account(s) and all such sums shall carry like
interest and shall be treated as an advance secured by this security.
m) The Borrower shall pay all rents, rates, taxes, payments and outgoings in respect
of any immovable property in or in which the hypothecated assets may for the
time being be lying and shall keep such property and hypothecated assets insured
against loss or damage by fire and shall also insure the same against such other
risks as the Lead Bank shall require and as provided for in the Consortium
Agreement and shall produce the Policies of Insurance to the Lead Bank whenever
required by it.
n) The Borrower hereby declaress and guarantees that the hypothecated assets now
in existence are save as aforesaid the absolute and unencumbered property of
the Borrower and that the Borrower has full power of disposition thereover and
that all hypothecated assets which may belong to the Borrower in future shall
likewise be the absolute and unencumbered property of the Borrower with full
power of disposition thereover of the Borrower.
o) The Borrower shall furnish and verify all statements, reports, returns, certificates
and information from time to time as required by the Lead Bank or the said Banks
or any of them in respect of the hypothecated assets and execute any documents
as required by the Lead Bank as in its opinion necessary to give effect to this
security and if the Borrower shall fail to do so within 30 days of demand in writing
by the Lead Bank, the Lead Bank may execute such documents on behalf of the
CHAPTER-7
Annexure-7 (Contd.)
95
Borrower for its own benefit and the benefit of the other Banks in the A Bank
Consortium.
p) This security shall be a continuing security for the balance from time to time due
to the said Banks and each of them under the said Account(s) and shall not affect,
impair or discharge the liability of the Borrower by winding up (voluntary or
otherwise) or by any merger or amalgamation, reconstruction or otherwise of the
Borrower with any other Company or take over of the management or
nationalisation of the undertaking of the Borrower.
q) Nothing herein contained shall prejudice any other security present or future or
any right or remedy of any of the said Banks otherwise than hereunder for the
recovery of any moneys due by the Borrower to the said Banks or any of them.
r) If and whenever this security shall be held by the said Banks or any of them for
the Borrowers liability to the said Banks or any of them in respect of any third
partys obligations to the said Banks or any of them, then the Bank concerned
shall be free without reference to the Borrower to deal with and the Borrower
hereby consents to such Bank dealing with the principal debtor and with any
securities obligations or decrees and generally to act as if the Borrower was
primarily liable and to give time to other indulgence or make any variation, without
thereby in any manner impairing or prejudicing the rights of the said Banks or
any of them against the Borrower who declares that the liability of the Borrower
shall be deemed that of a co-promissor with such third party.
4. No Payments into or drawings out of any of the said Account(s) or any transactions
dealings, agreements or arrangements whatsoever in connection with any of the said
Account9s) shall affect the state of the other accounts or any transaction, dealing,
agreement or arrangement in connection therewith.
5. It is expressly hereby agreed by the Borrower with the said Banks and each of them
that it shall be lawful for any of the said Banks to exercise any power or authority
hereby expressed to be exercisable by the said Banks or any of the said Banks alone
or through the Lead Bank and that the rights and powers conferred on the said Banks
by these Presents shall be joint and several and shall be deemed always to be so
and they may be exercised by the said Banks through the Lead Bank accordingly on
behalf of all or any of the said Banks to bring or take any suit or other proceedings or
take any steps for enforcement of the securities cereated in their respective favour or
otherwise for realisation of their respective dues from the Borrower in the sole name
CHAPTER-7
Annexure-7 (Contd.)
96
of the Lead Bank and in the event of institution of any suit or proceeding by the Lead
Bank, it shall join the others of the said Banks as party defendants/respondents in such
suit or proceedings, if it is not willing to join as a party plaintiff but so that the said
Banks will interse always act in mutual consultation and co-operation.
6. Any demand or notice ot be made or given to any party hereto may be made or given
by leaving the same at or by posting the same by registered post in an envelope
addressed in the case of the Borrower at its Registered Office and in the case of the
said Banks, at the Office where the said Account(s) of the Borrower are maintained
by the concerned Bank and every such demand or notice shall be deemed to be
received as the case may be at the time at which it is left or at the time at which it
would have been delivered in the ordinary course of post at the Office in question.
7. The Borrower shall pay on demand to the said Banks and each of them the costs
(ebtween Attorney and Client) incurred by them or any of them in connection with the
preparation, engrossment and stamping the counterparts in quintuplicate and execution
of this Agreement and of any guarantee or other security executed contemporaneously
herewith in connection with the said Facilities hereby secured and of the registration of
this security with the Registrar of Companies and all other costs (between Attorney
and Client), incurred or to be incurred by the said Banks or any of them in connection
hereiwth or with the enforcement or attmepted enforcement of the security hereby
created or the protection or defence or perfection thereof or for the recovery of any
money hereby secured and of all suits and proceedings of whatsoever nature for the
enforcement or realisation of the security hereby created or the recovery of such moneys
or otherwise in connection herewith or in which any of the said Banks may be joined
as a party or otherwise involved by reason of the existence of the security hereby
created.
8. The Borrower hereby appoints the said Banks and each of them as its Attorney and
authorises and said Banks and each of them to act for and in the name of the Borrower
to do whatever the Borrower may be required to do under these Presents and generally
to use the name of the Borrower in the exercise of all or any of the powers by these
Presents concerred on the said Banks and the Borrower shall bear the expenss that
may be incurred in this regard.
9. It is expressly agreed by and between the Parties hereto that
i) Nothing herein shall prejudice the rights or remidies of the said Banks in respect
of any present or future security, Guarantee obligation or decree for any
indebtedness or liability of the Borrower to the said Banks or any of them;
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Annexure-7 (Contd.)
97
ii) The Borrower agrees and declares that the rights and powers conferred on the
said Banks by these Presents shall be joint and several and shall be demed
always to be so and they may be exercised by the said Banks accordingly provided
however all such actions shall, as far as possible, be taken through the Lead Bank;
iii) The Borrower declares, agrees and confirms that the powers and rights conferred
under the provisions of this Deed shall ensure to the benefit of the A Bank
Consortium as presently constitutted as also to the Consortium as may be
reconstituted during the currency of the said Facilities as aforesaid and the
Borrower hereby agrees to execute such documents or deeds as may be deemed
necessary by the Lead Bank for safeguarding the interests of the A Bank
Consortium and the Consortium as so reconstituted and to file such Particulars
in such Form as may be appropriate with the Registrar of Companies and other
Authorities as may be expedient or necessary for the aforesaid purpose.
iv) The Borrower agrees and declares that the rights and powers conferred on the
said Banks by these Presents may be exercised by the Lead Bank acting on
behalf of all or any of the said Banks;
IN WITNESS WHEREOF the Borrower has caused these Presents to be executed on the
day month and year first hereinabove written.
The Common Seal of the wi thi nnamed
........................................ Limited pursuant to the
authority granted by the Resolution of the Board of
Directors passed on the .............................. day
of .............................. 200 , hereunto affixed in the
presence of Shri ............................................................
and Shri ............................................................ Directors
of the Company and Shri ................................................
the Secretary of the Company/the Authorised Official
by the Board in that behalf who have signed these
presents in token thereof.
SIGNED AND DELIVERED for and on behalf of A
Bank for itself and for and on behalf of B Bank, C
Bank, D Bank and E Bank as their constituted
Attorney by the hand of
Shri ............................................., its Authorised Official.
CHAPTER-7
Annexure-7 (Contd.)
98
ANNEXURE-8
(To be stamped as an Agreement and also as a Genral Power of Attorney)
INTER SE AGREEMENT
BETWEEN
A Bank, B Bank, C Bank, D Bank and E Bank
(A Bank Consortium)
THIS AGREEMENT is made at ................................................................................... this
the ........................................ day of ........................................ 200 , between A Bank, a body
corporate constituted by and under the Banking Comapnies (Acqusition and Transfer of
Under taki ngs) Act, 1970/1980 and havi ng i ts Head Offi ce
at ............................................................ and a *Regional Office amongst other places
at ...................................................................... (hereinafter called A Bank, which expression
assigns) of the FIRST PART, B Bank, a Statutory Corporation constituted by and under
the ......................................................................... and having one of its Local Head Offices
at ............................................................ and a *Zonal Office amongst other places
at ...................................................................... (hereinafter called B Bank, which expression
assigns) of the SECOND PART, C Bank, a body corporate constituted by and under the
Banking Companies (Acqusition and Transfer of Undertakings) Act, 1970/1980 and having its
Head Office at ...................................................................... and a *Regional Office amongst
other places at ...................................................................... (Hereinafter called C Bank which
expression shall unless it be repugnant to the subject or context thereof, include its successors
and assigns) of the THIRD PART, D Bank, a body corporate constituted by and under the
Banking Companies (Acqusition and Transfer of Undertakings) Act, 1970/1980 and having its
Head Office at ............................................................ and a *Regional Office among other
places at ....................................................................... hereinafter called D Bank which
expression shall, unless it be repugnant to the subject or context thereof, its successors and
assigns) of the FOURTH PART AND , a Banking Company within the meaning of the Banking
Regulation Act, 1949 and a Company within the meaning of the Companies Act, 1956 and
having its Princiapl Place of Business in India at ......................................................................
and a *Regional Office at ...................................................................... (hereinafter called E
CHAPTER-7
99
Bank which expression shall, unless it be repugnant to the subject or context thereof, include
its successor and assigns) of the FIFTH PART
(All of which A Bank, B Bank, C Bank, D Bank and E Bank are hereinafter referred to the
said Banks of
Office).
By consent of all the Parties, A Bank is designated and recognised as the Lead Bank of
the A Bank Consortium, while B Bank is designated and recognised as the Second Lead
Bank of the A Bank Consortium.
If the consortium of Banks is increased or diminished from time to time by adding to or
dropping of one or more Banks or is changed by constitution of one Bank by another during
the currency of consortium then the Reconstituted Consortium will be governed by the
provisions on this Agreement as if they have been added or dropped herein as the case
may be and the term the said Banks shall mean and shall be deemed to include the
Reconstituted Consortium as well.
WHEREAS
1. The ............................................................................................ Limited, a Company within
the meai ni ng the Compani es Act, 1956 and havi ng i ts Regi stered Offi ce
at ............................................................ (hereinafter called the Borrower, which expression
shall, unless it be repugnant to the subject or context thereof, include its successors
assigns) has been sanctioned by the A Bank Consortium inter alia, the Working Capital
Facilities in the proportion as mentioned in the Working Capital Consortium Agreement
dated the ................................ day of ............................... 200 , between the Borrower
and the said Banks (hereinafter called the Consortium Agreement) for meeting a part
of the Worki ng Capi tal needs of the Borrower, of the Borrowers deci si on
at ............................................................................... in the State of .....................................
in addition to/in replacement of existing facilities or replacement of certain other facilities
on the terms and conditions set out in the said Consortium Agreement and such other
conditions as may be stipulated by the A Bank Consortium from time to time. The Working
Capital Facilities are hereinafter collectively referred to as the said Facilities which
expression shall, unless it be repugnant to the subject or context thereof, include each
such facility or any one or more of them. The Limits or Sub-Limits as so fixed from time
to time during the tenure of the said Consortium Agreement shall be deemed to be the
Limits or Sub-Limits covered under the said Facilities.
CHAPTER-7
Annexure-8 (Contd.)
100
2. As security for the repayment of the said facilities together with interest, costs, charges
and other expenses payable in respect of the said facilities the Borrower created in
favour of the said Banks a first charge by way of Hypothecation on its Current Assets,
both present and future, wherever situated but pertaining to the Borrower / the Borrowers
decision at .............................................. as mentioned in the Joint Deed of Hypothecation
dated the ................................... day of 200 ......... executed by the Borrower in favour
of the said Banks and also created in favour of the said Banks by way of Collateral a
second charge on the Fixed Assets, both present and future, of the Borrower/the
Borrowers Division at ......................................... . (The aforesaid Charges are hereinafter
collectively referred to as the said Securities).
* To be added wherever stipulated and deleted if not stipulated.
3. For operational convenience, the said Bank have agreed to enter into an inter Se
Agreement being these presents to define the rights inter se the said Banks in the
manner and with such covenants and conditions as hereinafter contained.
Now, thereforth it is recorded that the parties hereto have mutually agreed as follows :
1. The Member Banks hereby recognise A Bank as the Lead Bank and B Bank as the
Second Lead Bank of the A Bank Consortium.
2. The Member Banks hereby agree to abide by the directions, instructions and
clarifications as may be given from time time by the Lead Bank in consultation with
the Second Lead Bank, in respect of any matters arising out of or in relation to the
Cash Credit Account(s) to other Account(s) opened by the Borrower with the A Bank
Consortium.
3. Notwithstanding anything to the contrary contained in or arising out of or implied by
the said Consortium Agreement and/or the Joint Deed of Hypothecation and/or the
Second Charge, it is hereby agreed and declared by and between the said Banks as
follows :
*(Delete if not applicable)
a) A Bank shall act as the Lead Bank of the A Bank Consortium and B Bank as
the Second Lead Bank and all the Members shall act in the spirit of the
Consortium and all decisions should, as far as possible, be arrived at unanimously
including those relating to sharing of ancillary business and drawings under
different Facilities sanctioned to the Borrower;
CHAPTER-7
Annexure-8 (Contd.)
101
b) The Members of the Consortium do hereby agree to execute in favour of the Lead
Bank and the Second Lead Bank a power of attorney or other authorisation as
may be deemed appropriate for constituting the Lead Bank and the Second Lead
Bank as their true and lawful attorneys for them, in their name and on their behalf
to do, execute and perform all acts, deeds and things as to the Lead Bank and
the Second Lead Bank may deem appropriate, necessary or expedient in the given
circumstances as the Leaders of the A Bank Consortium and to take decisions
for and on behalf of the Consortium and communicate the same in the general
interest of the A Bank Consortium. The Member Banks do hereby agree to ratify
and confirm whatever all acts, deeds and things lawfully and bonafide done, taken
or effected by the Lead Bank and the Second Lead Bank as such attorneys in
exercise of the powers, authorities and liberties hereby conferred upon, under and
by virtue of this Agreement.
c) The Members of the Consortium do hereby agree that they would act in the best
interests of the Consortium having due regard to the interests of each of the
Members of the Consortium.
d) Each Bank shall consult the Lead Bank in respect of any matter relating to the
said Facilities including those relating to sanction of adhoc/temporary credit to the
Borrower and act in consonance with the clarifications, directions and decisions
as may be given by the Lead Bank;
e) A Bank Consortium shall act in accordance with the directions and instructions
given by the Lead Bank in so far as the monitoring of the Borrowers Cash Credit
Account(s) or other Account(s) with them are concerned and abide by the
decisions of the Lead Bank and the Second Lead Bank, which will be binding on
the other Members of the Cnsortium, in case of any dispute or difference of view
on the quantum of the permissible bank finances, terms and conditions to be
imposed or any other matter pertaining to the Borrowers Cash Credit Account(s)
or other Account(s).
f) If on account of operational difficulties or locational problems, the Borrower desires
to avail of any non-fund based facility from one Member Bank in preference to
another, the Lead Bank should as far as possible evolve a suitable system of
sharing the relative income thereof at a Consortium Meeting and the decision of
the Lead Bank/the Second Lead Bank thereon shall be binding on the Members
of the Consortium.
CHAPTER-7
Annexure-8 (Contd.)
102
g) Each Bank shall not, without the consent of the Lead Bank, agree to any
modification of the terms of this Agreement nor waive the rate of interest on
defaults or vary the margins stipulated earlier unilaterally.
h) Subject to the Provisions of the Inter Se Arrangement as may be entered into
between the said Banks and the other Lenders, all proceeds of sale or other
proceeds out of or in connection with any of the said Securities created by the
Borrower shall be applied in the manner as set out in Clause 5 herein.
i) Any action for the enforcement of the said Securities against the Borrower shall
be taken by the Lead Bank in consultation with the other Members of a A Bank
Consortium and the A Bank as the Lead Bank shall be at liberty to take any
steps to realise or enforce the said Securities agreed to be created or close and
cause to be closed the respective Cash Credit Account(s) or other Account(s)
opened in the Books of the said Banks but in the morning of the full working
day immediately preceding, any action intended to betaken under this clause due
notice of such intention and of the action intended to be taken shall be
communicated in writing by the Lead Bank to the other Banks and the other Banks
shall immediately or as soon as possible after receipt of such notice demand
repayment of the moneys due under the relative Cash Credit Account(s) or other
Account(s) and stop all further advances or accommodations to the Borrower on
the relative Cash Credit Account(s) or other Account(s) of the Borrower with it
and notify its intention in writing either to act jointly in such action with the Lead
Bank or otherwise and in case the other Banks shall agree to act jointly in such
action then the said Banks shall act jointly and in case of failure, neglect or refusal
by the other Banks to join in any such action, the Lead Bank taking action shall
make the Banks so refusing, a defendant/respondent in any action which it may
take against the Borrower.
j) All members of the Consortium should jointly and severally ensure that there is
no slackness in follow up of and supervision over credit extended to the Borrower
and each of the said Banks shall keep the Lead Bank advised of all matters
affecting this Agreement and shall initiate such action as may be deemed
appropriate in mutual consultation with one another of the A Bank Consortium.
k) Inspection of the Books of Account, verification of securities and spot checks shall
be done by such Member Bank by rotation as may be decided by the Lead Bank
and the Second Lead Bank and the Notes of Inspection and Verification shall be
forwarded to all the Members of the Consortium. The Member Banks shall ensure
CHAPTER-7
Annexure-8 (Contd.)
103
that there is no piecemeal collection of data from the Borrower by each Member
separately but that all collection of data is made by the Lead Bank or as it may
direct.
l) Each of the said Banks shall at the request of the Lead Bank or the Second
Lead Bank join in the exercise of any power hereby made exercisable by the said
Banks or any of them and shall join or concur in all such acts, proceedings, things
or steps as may be necessary or convenient to enable any of the said Banks to
recover any moneys due to it upon the said Securities or otherwise to obtain the
benefit of the said Securities and in default, the defaulter Bank shall be made a
defendant/respondent in any action, the other Banks may decide to take.
m) The Lead Bank and the Second Lead Bank shall meet at quarterly intervals to
assess the performance of the Borrower based on the Statements from the
Borrower under the Quarterly Information System (QIS) and fix at such Meeting
the Operating Limits/Individual Banks Share thereof for the next quarter which
shall be binding on the Members of the Consortium.
n) No Member of the Consortium shall opt out of the Consortium mainly on account
of the Sickness/Impending Sickness/Weakness of any of the Borrowers Units. In
the event of a Member of the Consortium desiring to opt out of the Consortium
for any other reason considered to be valid by the Lead Bank either by itself or
at the instance of the Borrower, that Members Share in the said Facilities should
in the first instance be offered to one or more among the other Member Banks
and only if none of them is willing to take up that Share, one or more New Banks
may be admitted into the Consortium in consultation with the Lead Bank.
o) Where however, a Member Bank faces a temporary liquidity constraint, it will be
open to one or more of the other Member Banks to agree, on request by the said
Bank, to take up for a temporary period not exceeding six months or such other
period as may be agreed to by the Lead Bank at its sole discretion (hereinafter
referred to as the Stated Temporary Period) that Banks Share in any Additional
Credit Facility that may be sanctioned to the Borrower against the Guarantee of
that Bank, if so called upon and on the understanding that the said Bank will take
over its due Share by the end of the Stated Temporary Period. It is specifically
agreed that the status of the Lead Bank in such an event does not get affected if
for a temporary period the Lead Bank ceases to have the required largest exposure
in the Fund Based Facilities granted to the Borrower during that period.
CHAPTER-7
Annexure-8 (Contd.)
104
p) The Lead Bank will be solely responsible for submssion to the Reserve Bank of
India on behalf of Consortium Members for post-sanction scrutiny under the Credit
Monitoring Arrangement and for answering to the requsitions as may from time
to time be made by the Reserve Bank in that regard. The Lead Bank will also
be solely responsible for submitting an Application on behalf of the Consortium
Members for authorisation, if required and for obtaining the same and for
answering to the requisitions as may from time to time be made by the Reserve
Bank in that regard.
4. Each of the said Banks shall supply to the other or others of the said Banks Statements,
monthly or more often as may be agreed upon, showing the state of the Cash Credit
Account(s) or other Account(s) in the Books of the Bank supplying such Statement and
the amount of payments in and the drawings out of or any other sum debited to the
Cash Credit Account(s) or other Account(s) during the period preceding the date of
the Statement.
5. Notwithstanding anything to the contrary contained in the said Consortium Agreement
and/or the Joint Deed of Hypothecation and/or the Second Charge or arising from or
by virtue or reason of or implied by the same, all moneys resulting from the enforcement
or realisation of the said Securities by or on behalf of the said Banks and the amounts
realised from any policy or policies of insurance in respect of the said Securities though
payable to the Borrower and any other realisation from or out of the said Securities or
any part thereof by enforcement of the said Securities or by recourse to any special
legislation for recovery of dues as may be applicable or otherwise howsoever shall be
available for distribution amongst the said Banks inter se in the same proportion to
their respective outstandings in the said Facilities, without any preference or priority of
one over the other or others for all purposes and to all intents and shall be applied by
the Lead Bank with all convenient despatch in the manner herein provided.
*(Delete if not applicable)
a) First : there shall be paid out of such moneys or provisions made thereout
for the costs, charges, expenses, incurred by the said Banks for and
incidental to the enforcement of the said Securities and/or realisation
or receipt of such moneys;
b) Secondly : the balance of such moneys shall :
i) in the event of the moneys so available for distribution being sufficient to pay
to the said Banks the full amounts of the Debts (including the contingent
CHAPTER-7
Annexure-8 (Contd.)
105
liabilities) due from the Borrower to them respectively be applied simultaneously
in the payment to each of them of their respective Debts in full;
ii) in the event of moneys available for distribution being insufficient to pay to
each of them the full amount of the Debts (icnluding the contingent liabilities)
due from the Borrower to them respectively, be applied pari passu as nearly
as may be practicable towards payment to each of them without any
preference or priority whatsoever. The amount distributable to each of them
shall bear to the total distributable amount the same proportion which the
outstanding amounts of the Debts (including the contigent liabilities) due to
each of them bears to the aggregate of the outstanding amounts of the
Debts (including the contingent liabilities) due to all of them under the said
Securities created and/or to be created by the Borrower.
c) Thirdly : the surplus, if any, out of such moneys shall be paid by the Lead Bank
to the Borrower or the person entitled thereto.
6. All realisations out of policies of Insurance taken out by the Borrower in respect of the
said Securities although taken only in the name of the Borrower shall be available for
the benefit of the said Banks.
7. Notwithstanding that the Lead Bank shall distribute the realisations in the manner
mentioned above, as between the said Banks and the Borrower, the said Banks shall
be entitled to enforce their rights by suit against the Borrower for any moneys that may
still be due to them from the Borrower.
8. All documents of title evidencing the creation of the said Securities by the Borrower
and all documents relating to the said Cash Credit Account(s) or other Account(s) shall
be held by the Lead Bank or as it may direct. The Lead Bank shall make available
the said documents to the Member Bank or any of them against their accountable
receipt for the same.
9. The Lead Bank shall take all the necessary and appropriate steps and actions to ensure
compliance by the Borrower with all the terms, conditions and stipulations in respect
of the said Facilities, the repayment and payment obligations of the Borrower or the
Guarantor/s to the said Banks, the quality, quantity and sufficiency of the Security
therefor and shall undertake at the cost and expense of the Borrower the requisite
inspection of the said Securities in accordance with the relevant provisions of the said
Consortium Agreement and/or the Joint Deed of Hypothecation and/or the Second
Charge. Whenever the Lead Bank takes any action, which in its opinion and discretion
CHAPTER-7
Annexure-8 (Contd.)
106
is necessary or appropriate in prusuance, or for the enforcement, of its rights over the
said Securities or other security by taking possession of the said Securities, dealings
therewith, or disposal thereof, or any other manner or by filing suits, actions or other
proceedings or in any other manner in accordance with the terms, conditions and
stipulations contained in the said Consortium Agreement and/or the Joint Deed of
Hypothecation and/or the Second Charge or otherwise, such actions shall be taken for
itself and for and on behalf of the Member Banks and where such actions have not
been specifically so taken they shall be deemed to have been taken for itself and for
and on behalf of the Member Banks.
*(Delete if not applicable).
10. Each of the said Banks hereby agrees that all acts, deeds and things done in
accordance with this Agreement by the Lead Bank shall be construed as acts, deeds
and things done by each of them and each of the said Banks undertakes to ratify and
confirm all and whatsoever the Lead Bank shall do or cause to be done for itself and
on their behalf. The Lead Bank shall not be liable to the Member Banks for any act,
deed or thing done or omitted to be done in good faith under this Agreement.
11. Any further assistance by way of Working Capital Facilities granted to the Borrower by
the said Banks would have a ranking of a pari passu nature with the present assistance
in respect of the said Facilities to the Borrower and shall be deemed to be included in
the said Facilities and secured likewise.
12. (a) It is declared and agreed by and between the Parties hereto that notwithstanding
anything to the contrary contained herein or in the securities created or purported
to have been created by the Borrower in respect of the said Facilities granted or
continued, prior to the execution of these Presents, shall be governed and be
deemed to have always been governed by the provisions, terms and conditions
contained in this Agreement, as if such Facilities were and are part of the said
Facilities referred to herein and hereunder.
b) It is declared and agreed by and between the Parties hereto that notwithstanding
anything to the contrary contained herein or in the Securities created or purported
to have been created by the Borrower in respect of the said Facilities or such
other Facilities as are subsisting from time to time in favour of the A Bank
Consortium, the provisions contained herein shall govern not only the A Bank
Consortium as constituted at the time of execution of these Presents but also
such Consortium or the Reconstituted Consortium as may be formed during the
currency of the said Facilities as if the members of such Consortium or the
CHAPTER-7
Annexure-8 (Contd.)
107
Reconstituted Consortium were the original Parties hereto and such Consortium
or the Reconstituted Consortium shall enter into and execute such documents or
deeds as may be deemed necessary in the opinion of the Lead Bank and as
directed by the Lead Bank.
In Witness whereof the Parties hereto have set their hands unto these Presents the day
month and year hereinabove written.
SIGNED AND DELIVERED for and on behalf of A Bank,
the Lead Bank by the hand of
Shri ....................................................................., its
Authorised Official in this behalf.
SIGNED AND DELIVERED for and on behalf of the
Member Banks as mentioned below by the hand of its duly
Authorised Official in this behalf;
B Bank Shri .....................................................................
C Bank Shri .....................................................................
D Bank Shri .....................................................................
E Bank Shri .....................................................................
DATED THIS THE ..............................................DAY OF....................... 200 .
INTER SE AGREEMENT
BETWEEN
A BANK
B BANK
C BANK
D BANK
AND
E BANK
CHAPTER-7
Annexure-8 (Contd.)
108
ANNEXURE-9
REVIVAL LETTER
A Bank
(Lead Bank)
Dear Sir,
We refer to the Working Capital Consortium Agreement dated the ............................... day
of ....................... 200 entered into by us with YOU, as the Lead Bank and the Member Banks
in respect of the Working Capital Facilities granted to us and/or agreed to be granted to us
by YOU and the Member Banks, hereinafter referred to as the A Bank Consortium and the
Charge by way of Hypothecation created by us on our Current Assets as mentioned therein
to secure all sums standing at the foot of the Cash Credit Account(s) or other Account(s)
with YOU and the Member Banks in respect of such Facilities.
We do hereby confirm that all the Security Documents Executed by us in favour of You
and the Member Banks in respect of such Facilities are subsisting, valid and effective and
are fully enforceable against us.
We do hereby acknowledge for the purposes of Section 18 of the Indian Limitation Act,
1963 and in order to preclude any question being raised on limitation regarding our liability
to your Bank and the Member Banks for the payment of the outstanding amounts in respect
of the present as well as the future indebtedness and liabilities under the said Cash Credit
Account(s) or other Account(s) together with interest, compound interest, additional interest,
liquidated damages, costs, charges, expenses and other moneys in terms of the said Working
Capital Consortium Agreement our liability shall remain in full force with all relative securities,
agreements and obligations as mentioned therein.
For and on behalf of
.............................................. Limited
CHAPTER-7
109
ANNEXURE-10
Place:
Date :
A Bank,
B Bank,
C Bank,
D Bank,
E Bank,
Dear Sirs,
Re : Working Capital Facilities
Pursuant to the Working Capital Consortium Agreement Dated ..............................................
entered into between us and yourselves (hereinafter collectively referred to as the A Bank
Consortium with A Bank as the Lead Bank) and in consideration of your having agreed at
our request to grant and having granted us the said Working Capital Facilities, inter alia,
against our undertaking as appearing hereinafter, we do hereby irrevocably agree and
undertake that after obtaining the requisite approvals from the Existing Term Lenders and
such other approvals as may be necessary, we will create a mortgage and charge by way
of a Second Charge in a form acceptable to the A Bank Consortium on our lands buildings
and other structures and Plant and Machinery and other movables (other then Current Assets)
both present and future situated at ..................................................................... as and by way
of a collateral security to secure the Working Capital Facilities granted by the A Bank
Consortium up to the limits and sub-limits as may be allowed to us by the Consortium from
time to time.
We also undertake to furnish to A Bank as the Lead Bank copies of the approvals as and
when obtained for creating such mortgage and charge in favour of the A Bank Consortium.
CHAPTER-7
110
CHAPTER 8
UCO SHELTER SCHEME
LIST OF DOCUMENTS FOR UCO SHELTER FOR INDIVIDUALS
1. Letter for giving in-Principle Sanction - Annexure III
2. Format for Report on the Visit of the site of the proposed property Annexure IV
3. Process Note for in-Principle and Regular Sanction Annexure VI
4. Format for Regular Sanction Advice Annexure IX
5. ATTESTATION MEMO
6. Statement of means Annexure II(ii)
7. Format of letter to be issued to the Transferor Bank after sanction of Loan (in case of
Take-Over) Annexure VIII
8. Loan Agreement (AHL-6)
9. Revival letter for the purpose of extending the limitation period (AHL-7)
10. Revival letter for the purpose of extending the limitation period (AHL-8)
11. Letter of Assignment for LIC Policy (AHL-9)
12. Recital (to be entered in the Banks Equitable Mortgage Register)evidencing creation
of such mortgage (AHL-10)
13. Confirming Letter (by Regd. Post) of such mortgage (AHL-11)
14. Lawyers Search Report on letter head regarding good and marketable title of the prop-
erty (AHL-12)
15. Letter of Guarantee (AHL-13)
16. Letter of undertaking an indemnity by the applicant/mortgagor in cases of agreement
to purchase a flat from promoter/builder (AHL-14)
17. Letter from the Society in case of Co-operative Flats (AHL-15)
18. Letter of Authority of appropriation of retiring benefits from borrower to his employer
(AHL-16)
19. Letter by the mortgagor/employee to his employer for deduction of EMI (AHL-17)
CHAPTER-8
111
20. Letter from builders/promoters/owners (on letter head) assuring good title and other as-
surances (AHL-18)
21. Letter requesting creation of equitable mortgage (AHL-19)
22. Affidavit-cum-undertaking by the applicant agreeing to deposit the sale deed when ob-
tained (AHL-20)
23. Non encumbrance certificate and detailed report on title (to be submitted on Advocates
letter head) Annexure V
24. Verification of present employment Annexure II(i)
25. Demand Promissory Note (i)A1 (ii) A1A (iii)A2 (iv) A2A
CHAPTER-8
112
APPENDIX-I
ANNEXURE-III
UCO BANK
To,
................................................
................................................
................................................
Dear Sir / Madam,
Sub : Your Request For Loan Under UCO Shelter
With reference to your application dated ..................................on the above we would like
to inform that we agree In - Principle to sanction you a loan of Rs. .............................................
under the UCO SHELTER Scheme.
Kindly note that this letter is only an In-Principle Sanction and the regular sanction of
the loan is subject to legal vetting of the documents and technical clearance of the proposal
by the bank. Please submit the copies of the documents as mentioned in the attached list
(Annexure II, Part B) immediately to enable us to proceed further in the matter and also
deposit an amount of Rs................................being the processing charge. In case the loan
cannot be sanctioned the processing charge will be refunded to you after deducting the actual
expenses incurred by the bank for carrying our legal and technical appraisal.
Assuring you of our best services,
Yours faithfully,
CHAPTER-8
113
ANNEXURE IV
PART - D
INSPECTION REPORT :
PART A Report on visit to applicants / co-applicants residence / office
Name of the applicant :
Name of the co-applicant :
Father / Husbands name :
Relation of co-applicant with applicant :
Persons residing with the applicant : Relationship with the Earnings
applicant
Name :
Residing at Rented house/Parental House/Office
Accommodation
Residing in the present address since :
Local reputation : Good / Very well known /Known to few
Financial Condition as reflected in the : Affluent/Well to do/Average standard of living /
standard of living below average standard of living
In case of business man whether the : Yes / No
person is doing well As appeared from the business place/
(please specify the source of information) gathered from enquiry
Information furnished in the application : Yes / No (if no extent of deviation should be
from specially in respect of family mentioned)
declaration is correct
Purpose for which the house is purchased : Residence/Investment for children
Reasons for shifting from other
Institution / Bank :
Date:
Name of the Officer : Signature:
CHAPTER-8
114
Annexure IV (Contd)
PART B Report on the visit of the site of the proposed property
House / Flat is ready for occupancy : Yes / No, if no what is the position
Comment on the locality : Posh / Middle Class / Lower Middle Class
Surroundings : Very Good / Good / Average
Connection of the locality with the : Well connected / Gradual development
main city taking place
Stage of Construction, if loan taken for
the construction :
Approximate time required for completion :
Type of construction : With Posh amenities like Marble flooring and
costly fittings / ordinary fittings and equipment
Whether the estimate submitted is : Yes / No
apparently correct
When the house purchase is second : Yes / No
hand, whether the same is free from
tenancy
Arrangement made for vacant possession :
For repurchase, the condition of the : Good / Not good
house is
Whether the proposed house/flat :
construction is suitable for the applicants
standard
Date:
Name of the Officer : Signature :
CHAPTER-8
115
APPENDIX-III ANNEXURE-VI
UCO BANK
UCO SHELTER SCHEME
Process Note for In Principle and Regular Sanction
Date of Receipt of Application : ...........................................
Date of In-Principle sanction : .............................................
Date of forwarding proposal to RO. ....................................
Date of Sanction by branch / RO .......................................
Date of Disbursement ..........................................................
PART - I Appraisal for In Principle Sanction :
(A) GENERAL INFORMATION
APPLICANT CO-APPLICANT
1. Name
2. Occupation
3. Position held
(Business/employment)
4. Address
Phone No.
5. No. of dependants
(B) LOAN PARTICULARS :
1. Purpose Purchase of House/Flat/Old House/Old Flat ? H
Construction of house ? H
Extension/Repair/Renovation ? H
Take over from other Bank/Institution ? H
2. Centre Metros/Urban/ H
Semi urban/ H
Rural H
3. Amount of loan Rs.
4. Repayment Period months.
5. Proposed EMI Rs.
CHAPTER-8
116
(C) COMPUTATION OF LOAN AMOUNT :
I. ENTITLEMENT ON THE BASIS OF PURPOSE AND AS APPLICABLE FOR THE CENTRE :
1. Take over of the outstanding Loan : Rs.
2. Purchase price as per sale agreement : Rs.
3. Cost of construction : Rs.
4. Cost of repair/renovation/extension : Rs.
5. 10% margin : Rs
6. Loan entitlement
(Margin to be deducted only from the item under 2/3/4 above Rs. ................................ )
Note : In case amount invested in the land or land is inherited value thereof Rs.
Value of the land as per valuation report Rs.
INCOME CRITERIA :
Applicant Co-Applicant Total
1. Net Monthly income : Rs.
2. Regular Monthly Income from
other source : Rs.
3. Total Monthly Income :
4. Amount required for maintenance : xxxx xxxxx Rs.
of family as per no. of dependants
5. Amount left for Servicing EMI : xxxxx xxxxx Rs.
[Item (3) - (4) above]
6. Loan amount on the basis of
available EMI : Rs. 1.00 lac
X B = Amount
A
(A = EMI per lac for the proposed repayment period
B = Amount available for servicing EMI i.e. item 5 above)
D) LOAN ENTITLEMENT : Rs.
(lowest of I & II above)
(E) ELIGIBLE AMOUNT OF LOAN : Rs.
CHAPTER-8
Annexure-VI (Contd.)
117
(F) DETAILED INFORMATION FOR REGULAR APPRAISAL :
GUARANTOR - 1 GUARANTOR - 2
1. Name
2. Occupation
3. Position held
(Business/employment)
4. Address
Phone No.
5. Net means
(G) PARTICULARS OF THE PROPORTY :
1. House/Flat/plot of land situated at :
2. Built up area of flat/house/proposed
construction :
(H) RATE OF INTEREST : Fixed/Float applicable rate
(I) MODE OF PAYMENT : By deduction from Salary/PDC.
(J) EMI DURING MORATORIUM
(for payment of Interest)
Total Interest during Moratorium
No. of Months of Moratorium
(K) EMI AFTER MORATORIUM :
(L) OTHER INFORMATION :
1. Liquid Security
a. FDR in the name of Rs.
b. LIC in the name of Rs.
c. NSC/KVP/Indira Vikash in the name of Rs.
CHAPTER-8
118
CHAPTER-8
2. Other Collateral Security (Property)
In the name of Mr. / Mrs. ..
Value Rs....Situated at
3. Processing charge : Rs.
4. All documents as per circular obtained : Yes/No.
5. Mortgage created on :
(M) WHETHER THERE HAS BEEN CHANGE IN THE LOAN AMOUNT FOR WHICH IN
PRINCIPLE SANCTION HAS BEEN GIVEN : Yes/No.
If Yes reasons and details thereof.
(N) CHECK LIST FOR SANCTION :
1. Date of visit to residence .
2. Date of visit to site
3. Legal opinion obtained &
The property has clear marketable title : Yes/No
4. Certificate from Valuer obtained &
as per the same value/estimate is realistic : Yes/No
RECOMMENDATION :
Recommended for sanction of a loan of Rs. .. payable in..
installments with EMI of Rs. Rate of interest....%
.....................................
Signature
DECISION :
.....................................
Signature
119
APPENDIX-IV
ANNEXURE-IX
FORMAT FOR REGULAR SANCTION ADVICE
UCO BANK
............................................... BRANCH
Date : ............................
Ref. No. .................................................
Dear Sir / Madam,
Sub : Sanction of Loan under UCO Shelter
With reference to your application dated ................................... for a loan under our above
scheme, we are pleased to inform that a loan of Rs. ................................... (Rupees ..............
.................................................................................... only) for purchase of house/flat/construction
of house/repair/renovation/extension of house/flat/take over of your existing loan
from ............................ has been sanctioned in your favour. The following terms and condition
shall be applicable to the loan.
1. Amount of Loan : Rs.
2. Rate of Interest : With quarterly / monthly rest.
3. Moratorium Period :
4. Repayment Period :
5. Equated Monthly Instalment (EMI)
a) Monthly Instalment of Interest during
Moratorium period, if any : Rs.
b) EMI for principal + interest after : Rs.
moratorium
6. Security
a) Mortgage of the property to be
Finance situated at : Rs.
CHAPTER-8
120
b) Collateral
i) Mortgage of Property in
the name of Mr./Mrs.
Situated at : Rs.
ii) KY/FDR in the name of : Rs.
iii) NSC/KVP/INDIRA VIKASH : Rs.
In the name of
iv) LIC in the name of : Rs.
7. Personal Guarantee : 1.
2.
3.
8. Processing Charge (0.5% of the loan
Amount minimum Rs. 1000/-) Rs.
Less Rs.
(already received)
Net Payable Rs.
This advise is being forwarded to you in duplicate one copy of which may please be returned
duly signed as a token of the acceptance of our terms of sanction. Kindly note the attached
sheet containing details of other terms of sanction forms an integral part of this Sanction
advice.
Yours faithfully,
CHIEF MANAGER / SR. MANAGER / MANAGER
CHAPTER-8
Annexure-IX (Contd.)
121
CHAPTER-8
INTEGRAL PART OF SANCTION ADVICE
Other Terms of Sanction :
1. The above terms and condition shall be subject to modification by the bank as may
be considered necessary at any point of time at the sole discretion of the bank.
2. Loan will be disbursed on completion of the formalities relating to the documentation /
creation of security.
3. The loan will be disbursed as per the terms mentioned in Agreement for sale / in phases
not more than three for the purpose of construction.
4. The margin for the project (where the same is not entirely covered by the cost of land)
to be paid either up front or proportionately before disbursement of each instalment.
5. For construction, 80% loan amount will be disbursed in phase not exceeding three,
based on progress of construction. In case the customer wants to draw 80% of the
loan amount in more than three instalments a processing fee of 0.1% will be applicable
on the amount proposed to be drawn beyond the third instalment. The last instalment
of 20% should be released only after being satisfied that 80% of the construction work
has been completed.
6. In case of purchase of house / flat the amount will be paid by Managers Cheque /
DO directly to the Seller.
7. For construction, drawal of cash will be permitted only at the discretion of the Bank or
at mutually agreed terms.
8. The borrower will submit to the bank a photograph of the house / flat for which the
loan has been given.
9. The banks representative will have to access to the house / flat for inspection purpose
during the pendency of the loan as and when required by the bank.
10. In respect of Take Over Loan on adjustment of the outstanding loan with ,the transferor
Bank / Institution the bank shall take delivery of the original title deed and create the
mortgage in its books for securing the loan.
11. Prepayment charge @2% on the amount prepaid will be levied in case of loan carrying
FIXED RATE INTEREST.
122
CHAPTER-8
12. In case of delay beyond a reasonable period (1 month) in depositing the original Title
Deed to the Bank, 2% penal interest will be recovered for the period of delay. An
undertaking to that effect would have to be given.
13. In case of delay in payment of EMI by one month or more penal interest @2% per
annum will be charged on the amount of default of the period i.e. with effect from due
date.
14. The sanction does not vest in anyone the right to claim any damage against the bank
for any reason whatsoever.
123
CHAPTER-8
ATTESTATION MEMO
Name of the Branch :
Name of the borrower / party :
Nature of facility and limit sanctioned :
Details of document obtained :
Signature of Officer in whose presence
Documents were signed :
Signature of officer verifying signature of
executants :
Documents examined by :
Date :
....................................... .......................................
ASSISTANT MANAGER MANAGER
APPENDIX - V
124
APPENDIX-VI
ANNEXURE-II (ii)
STATEMENT OF MEANS
1. Name
2. Address with Telephone No.
a) Residential
b) Business/Office
3. Age
4. Guarantee offered in the account of
5. Occupation
6. Total Annual income for the last two Yr. Ended 31.03. ..... Yr. Ended 31.03. ......
years [copy of I.T. Returns/orders to be
enclosed in case in Income Tax Payers]
a. Details of Assets owned :
Sl. Full desciption of Purchase Present Details of Details of Whether free
No. property giving Price Market Annual Income Title deeds from
location and full [Rs.] Price [Rs.] from Property of the Encum-
address in question Property branches
[Rs.]
CHAPTER-8
125
b. Details of investments, if any :
Sl. No. of Shares / Units / Name of the company Face Value Present
No. Bonds etc. (Rs.) market value
(Rs.)
c. Deposit with Banks :
Sl. Name of the Bank Nature of A/c Balance as on
No. S.B/F.D/R.D/C.A date (Rs)
d. Insurance policies on own life held :
Sl. Policy No. Amount Surrender Date of Date of Whether Annual
No. Insured Value/Paid- Commence- Maturity encum- Premium
(Rs.) value (Rs.) ment bered Payable
(Rs.)
e. Details of other personal assets such as jewellery, car etc.
Sl. Details of items Purchase price Present market
No. (Rs.) value (Rs.)
8. Total of 7(a) to (e) above : Rs. ................................ lac.
CHAPTER-8
Annexure-II(ii) (Contd.)
126
CHAPTER-8
9. Details of borrowings :
Sl. Amount of From whom Security offered When
No. borrowing (Rs.) borrowed payable
10. Net Means (89) : Rs. ........................................ lac
11. Details of Personal Guarantees given, if any :
Sl. Amount of In whose favour Purpose of Guarantee
No. guarantee given
I hereby declare that the informations given hereinabove are true and correct
Annexure-II(ii) (Contd.)
127
APPENDIX-VII
ANNEXURE-VIII
[Format of letter to be issued to the transferor bank after sanction of loan]
UCO BANK
......................................... BRANCH
To The Manager,
....................................................
....................................................
....................................................
Sir,
Sub : Home Loan A/c. Mr................................................with you.
At the request of Mr./Ms......................................................... we have sanctioned a loan
under our Home Loan Scheme to him / her / them for taking over the same from you. Kindly
furnish the following credit information for enabling us to take over the loan from you.
1. Name of the account
2. IRAC status .................................................. as on .......................
3. Date of sanction of the loan by you.
4. Amount sanctioned
5. Balance outstanding Rs. ................................... as on ............................
6. If the borrower has defaulted in payment of
Instalment (EMI) so far : Yes / No
If Yes : No. of times of default
: Amount in default Rs.
7. Conduct of the account
8. Details of property mortgaged / Security and list of documents and title deed related
to the same held.
In order to remit the amount for liquidation of the entire outstanding loan along with upto
CHAPTER-8
128
CHAPTER-8
date interest thereon receivable by you from Mr./Ms. .......................................................................
we would request you to kindly let us know your total dues i.e. Principal plus interest from
the said borrower as on 10th day from (the date to be specified) the date of receipt of this
letter. While forwarding your reply please confirm that on receipt of the said amount from us
you will relinquish your charges on the security held for the loan and deliver the original title
deed and other related papers / security to the authorised official of the bank in presence
of the borrower who has already authorised the Bank to take delivery of the above said title
deeds and documents.
On receipt of your confirmation we shall proceed further in the matter. Kindly treat the
matter as urgent.
Thanking you,
Yours faithfully,
Annexure-VIII (Contd.)
129
APPENDIX-VIII
AHL-6
UCO BANK
LOAN AGREEMENT
Articles of Agreement made this the .................................. day of ......................... 20 ............
at........................................................................................................................................................
BETWEEN
.........................................................................................................................................................
residing at ............................................................................................................................................
.......................................................................................................................................................
herein-under called the Borrowers (which expression shall unless the context otherwise
requires, include his/her heirs, executors, administrators, and permitted assigns) of the One
Part AND UCO Bank, a body corporate constituted under the Banking Companies (Acquisition
& Transfer of Undertakings) Act, 1970, as amended by the Banking Laws (Amendment) Act,
1985, having its Head Office at No. 10, Biplabi Trailokya Maharaj Sarani, Kolkata-700 001
and one of its Branches at ....................................................... hereinafter called the Bank
(which expressions shall unless the context otherwise requires, include its successors and
assigns) of the Other Part
ARTICLE-1 DEFINITIONS
1.1 In this Agreement unless the context otherwise requires:
a) The term loan means the loan amount provided for in the Schedule A Annexed
hereto.
b) The term house means a new independent house/ready-built flat for residential
purpose of any size and type having an independent access and includes a
bungalow, an ownership apartment, a flat, a row house, etc., but does not include
a farm house or a temporary or a semi-permanent structure or land only.
c) The term repayment means the repayment of -the principal amount of loan with
interest thereon, and/or any other charges, premium, fees or other dues payable
in terms of this Agreement to the Bank and means in particular, amortisation
provided for in Article 2.6 of this Agreement.
d) The term prepayment means premature repayment as per the terms and
CHAPTER-8
130
CHAPTER-8
conditions laid down by the Bank in that behalf in UCO SHELTER Scheme and
in force at the time of prepayment.
e) The expression Equated Monthly Instalment (EMI) means the amount of monthly
payment necessary to amortize the loan with interest over the period of the loan
inclusive of higher EMI if the minimum income criteria is fulfilled.
f) The expression Equated Monthly Instalment Interest, (EMlI) means interest at the
rate indicated in the Schedule A on the loan from the date/respective dates of
disbursement to the date immediately prior to the date of commencement of EMI.
g) the term borrower wherever the context so requires shall mean and be construed
as borrower and the masculine gender wherever the context so required shall
mean and be construed as the feminine gender.
h) UCO Shelter Scheme means as scheme framed by the Bank for granting loans
to the customers in the home loan segment as amended from time to time.
1.2 The term and expressions not herein defined shall where the interpretation and meaning
have been assigned to them in terms of the General Clauses Act, 1897 have that
interpretation and meaning,
ARTICLE-2 LOAN AND REPAYMENT OF LOAN ETC.
2.1 Amount of Loan
The Borrower agrees to borrow from the Bank and the Bank agrees to lend to the
Borrower a sum more fully and particularly described in Schedule A annexed hereto,
forming an integral part of this Agreement on the terms and conditions herein set forth
and also in the Banks UCO Shelter Scheme as revised from time to time which would
form an integral part of this Agreement.
(a) The borrower has to pay a processing fee to the Bank equal to 0.5% of the loan
amount subject to minimum of Rs. 1000/- which shall be collected in two stages
as mentioned below:
a) On issuance In Principal Sanction (pre-sanction stage) ... 0.25%
b) On conveying final sanction (post sanction stage) ... 0.25%
2.2 Repayment of loan, interest, etc.
a) The rate of interest applicable to the said loan as at the date of executinon of
this Agreement is described in Schedule A annexed hereto. Interest shall be
calculated at the interval(s) specified in the said Schedule A annexed hereto
forming an integral part of this Agreement.
AHL-6 (Contd.)
131
b) The due date for payment of each EMI shall be first date of every month, interest
being charged with monthly/quarterly rests on reducing balances, and EMI is
arrived assuming the repayments on due dates.
c) The loan will be repayable in ............................................................... consecutive
EMls of Rs. ...................................... each subject to what is stated hereunder.
These instalments shall be paid by first date of every month. The EMls comprises
of principal and interest calculated on the basis of monthly/quarterly rests
@..............% p.a. and is rounded off to the next rupee.
Provided, however, that the above rate of interest may be revised or increased
by the Bank consequent upon change in the Banks Prime Lending Rate from
time to time or at the sole discretion of the Bank of which notice shall be given
to the borrower and this agreement shall be construed as if such revised or
increased rate of interest were mentioned herein and. agreed to be paid by the
borrower.
d) any money due and payable to the Bank and received by the Bank shall be
applied in such order as the Bank in its absolute discretion may from time to
time conclusively determine (save that the Bank may credit the same to a
suspense account for so long and in such manner as the Bank may from time
determine).
Without prejudice to the above, the monies received shall be appropriated in the
following manner:
i) Firstly, towards liqudated damages and further interest (including uncharged
interest);
ii) Secondly, towards interest charged;
iii) Thirdly, towards costs, charges and expenses incurred by the Bank; and
iv) Lastly, towards the principal. amount due.
2.3 Schedule of Disbursement
The loan will be disbursed in suitable instalments depending on the progress of the
construction work and the Borrowers investment in the project being adequate to justify
the disbursement. The progress of construction work will be certified by the Engineer/
Officer of the Bank, the disbursement will be made on the basis of the Certificate by
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AHL-6 (Contd.)
132
the Engineer/ Officer of the Bank, to the effect that the investments made for
construction work by the Borrower in the project is not less than that envisaged in the
loan application. The decision of the Bank shall be final and binding on the borrower.
However, the said sanctioned loan shall be drawn by the borrower within twelve months
from the date of the letter of offer No. ..................................................... more fully and
particularly described in Schedule A annexed hereto forming an integral part of this
Agreement.
2.4 Right to cancel further Disbursement
Without prejudice to Banks rights and remedies, the Bank shall have the right to cancel
and suspend further disbursement of loan, if an event of default as defined in Article
7 has happened.
2.6 Mode of Disbursement
The loan will be disbursed in suitable instalments (normally not exceeding three) based
on the progress of construction and after completion of requisite formalities, namely,
a) The Bank has to be satisfied that the borrower has already invested the stipulated
margin (including the cost of land) before commencement of disbursement.
b) About 20% of the loan amount will be disbursed as the last instalment only after
i) completion of total structure comprising of walls and roof in case of
construction of house
ii) immediately before handing over of physical possession in case of flat, on
being satisfied that the flat/apartment is complete in all respect and is
habitable.
c) Disbursement may be made through Demand Draft/Managers Cheque/Pay Order
favouring seller of the property contractors/ promoters/co-operative societies etc.
wherever required, as in the case of constructed, need-based cash disbursement
may also be made.
2.6 Amortisation
a) Subject to Article 2.2 hereinabove, the borrower will amortize the loan by payment
of Equated Monthly Instalment (EMI) comprising of principal and interest at the
rate more fully and particularly described in schedule B annexed hereto forming
an integral part of this Agreement.
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AHL-6 (Contd.)
133
b) Prior to commencement of EMI the Borrower shall pay to the Bank PEMII, every
month (if applicable).
2.7 Delay in payment of EMI etc.
a) No notice, reminder or intimation will be given to the Borrower regarding his/her
obligation of pay the EMI or PEMII regularly on due date. It shall be entirely his/
her responsibility to ensure prompt and regular payment of RMI or PEMII.
b) The delay in payment of EMI or PEMII shall render the Borrower liable to pay
additional interest as per the rule of the Bank in that behalf as in force from time
to time.
2.8 Pre-payment
The Bank may, in its sole discretion and on such terms as to pre-payment charges,
etc. as it may prescribed permit acceleration of equated monthly instalments or pre-
payment at the request of the Borrower as per UCO Shelter Scheme.
2.9 Terminal Dates of Disbursement
Notwithstanding anything to the contrary contained herein the Bank may by notice to
the Borrower suspend or cancel further disbursements of the loan if the loan shall not
have been fully drawn within 12 months from the date of the letter of offer.
2.10 Alteration and Re-Scheduling of Equated Monthly Instalments
If the loan is not totally drawn by the Borrower within a period of 12 months from the
date of letter of offer the EMI may be altered and re-scheduled in such manner and
to such extent as the Bank may, in its sole discretion, decide and the repayment will
be made as per the said alteration and re-scheduling notwithstanding anything stated
in Article 2.1 and the Schedule.
2.11 Liability of Borrower(s) to be Joint and Several
The liability of the Borrower(s) to repay the loan together with interest etc. and to
observe the terms and conditions of this Agreement is joint several.
ARTICLE - 3 SECURITY
3.1 Security for the Loan by Mortgage of Property
The Borrower agrees and undertakes that the principal sum of the loan, interest,
commitment and other charges and any other dues under this Agreement shall be
secured by mortgage of the unencumbered property by way of first charge more fully
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AHL-6 (Contd.)
134
CHAPTER-8
and particularly described in the Schedule - C annexed hereto, forming an integral
part of this Agreement (hereinafter referred to as the said security) and the Bank shall
have the right to decide, in its sole discretion, the type of mortgage or any other or
additional security as required by the Bank.
3.2 The Borrower shall comply with the following
a) To give a declaration to the effect that the Borrower has a clear and marketable
title to the property offered as security, free from reasonable doubts and
encumbrances, liens, lispendens and attachments.
b) To execute a money bond or pro-note in favour of the Bank for the amount of
the loan.
c) To execute a Power of Attorney in favour of the Bank for execution and registration
of a legal mortgage.
d) To execute any other document that may be considered necessary to safeguard
the interests of the Bank.
ARTICLE - 4 CONDITIONS PRECEDENT TO DISBURSEMENT OF THE LOAN
4.1 Utilisation of the Borrowers Contribution by way of margin
a) The Borrower assures the Bank that he had, prior to receiving the disbursement
of the loan as aforesaid utilised his own contribution for purchase or construction/
repair of the said house, as the case may be as per UCO Shelter Scheme.
b) Title
The Borrower assures the Bank that he has absolute, clear and marketable title
to the property to be mortgaged by him as security for the loan and that the
said property is absolutely unencumbered and free from any liability whatsoever.
4.2 Other conditions for Disbursement
a) Non Existence of Event of Default
No event of default as defined in Article 7 shall have happened.
b) Evidence for Utilisation of Disbursement
Such disbursement shall at the time of request thereof be needed immediately
by the Borrower for the purpose of purchase or construction of the house, as
the case may be, and the Borrower shall produce such evidence of the proposed
utilisation of the proceeds of the disbursement as is found satisfactory by the Bank.
AHL-6 (Contd.)
135
c) Extra-ordinary Circumstances
No extra-ordinary or other circumstances shall have occurred which shall make it
improbable for the Borrower to fulfill his obligations under this Agreement.
d) Utilisation of prior Disbursement
The Borrower shall have satisfied the Bank about the utilisation of the proceeds
of any prior disbursement.
e) Pending Legal Proceeding
The Borrower shall have furnished a declaration to the effect that there is no
action, suit proceedings or investigation pending or to the knowledge of the
Borrower threatened by or against the Borrower before any Court of Law or
Government Authority or any other competent authority which might have a
material effect on the financial and other affairs of the Borrower or which might
put into question the validity or performance of his loan agreement or any of its
terms and conditions.
ARTICLE - 5 COVENANTS
5.1 Particular Affirmative Covenants
a) Utilisation of loan
The Borrower shall utilise the entire loan for the purchase/construction of the house
as indicated by him/her in his/her loan application and for no other purpose
whatsoever.
b) Construction
The Borrower covenants that he shall complete the said. construction as indicated
by him/her in ,his/her loan application or otherwise and obtain and produce to
the Bank a proper completion certificate issued by the concerned Municipal
Corporation or Municipality or Panchayat.
c) Notify causes of delay
The Borrower shall promptly notify any event or circumstances which might operate
as a cause of delay in the commencement or completion of the construction.
d) Maintenance of house
The Borrower shall maintain the house, when completed, in good order and
condition and will make all necessary repairs, additions and improvements thereto
during the pendency of the loan.
CHAPTER-8
AHL-6 (Contd.)
136
e) To notify change in employment etc.
The Borrower shall notify and change in his/her employment, business or
profession within seven days of the change.
f) Compliance with rules etc. and payment of maintenance charges etc.
The Borrower shall duly pay land revenues, and faxes, cesses and other
impositions and outgoing to the Goverriment/Municipality/Panchayats and punctually
comply with all the terms and conditions of the holding of the house and all the
rules, regulations, bye laws etc. of the concerned co-operative society, Association,
Limited Company or any other competent authority, and pay such maintenance
and other charges for the upkeep, of the house as also any other dues etc. as
may be payable in respect of the said house or the use thereof.
g) Insurance
Notwithstanding what is hereinabove stated the Borrower shall be vigilant and he/
she shall see that the property is always duly and properly insured against fire
and other hazards.
h) Loss/damage by uncovered risks
The Borrower shall promptly inform the Bank of any loss or damage to the
property which the Borrower may suffer due to any force majeure or act of God,
such as earthquake, flood, storm, tempest or typhoon, etc. against which the
property may not have been insured.
i) Life Insurance Policy
In case of assignment of life insurance policy as a collateral security the Borrower
shall duly pay premiums regularly on the date fixed for payment on such policy
or policies and shall keep the policies in full force and effect.
j) Right of set off on all monies
Until payment is made to the Bank of all the amounts, whether past, present or
future, actual or contingent, which may be payable by the Borrower or for which
the Borrower may be or become liable hereunder or otherwise and whether as
principal or surety, the Borrower agrees that the Bank shall have a lien and/or
right of set off on all securities and/or monies whatsoever held at any time by
the Bank on account of or to the credit of the Borrower in or for any account for
manner or purpose howsoever. The Bank shall be at liberty to discharge the said
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AHL-6 (Contd.)
137
obligations or liabilities of the Borrower out of the said securities and/or monies,
and in case of term deposits, whether the same have matured for payment or
not, and may appropriate or realise them in the manner thought fit by it and
without notice to the Borrower (and whether before or after filing suit or taking
any legal proceedings). The Bank may set off an amount estimated by it in good
faith to be the amount of that obligation.
k) Publication of name in case of default
The Borrower hereby agrees as a pre-condition of the loan/advances to the
borrower by the Bank that in case borrower commits defaults in the repayment
of the loan/ advances or in title repayment of interest thereon or any of the agreed
instalment of the loan on due date/s, the bank and/or the Reserve Bank of India
will have unqualified right to disclose/publish the name of the borrower/firm/unit
and its Directors/Partners/ Proprietors as defaulter in such manner and through
such medium as the Bank or Reserve Bank of India in their absolute discretion
may think fit.
5.2 Notify Additions, Alterations
The Borrower shall notify and furnish details of any additions to or alterations in the
house, which might be proposed to be made during the pendency of the loan.
5.3 Banks right to Inspect
The Borrower agrees that the Bank or any person authorised by it shall have free
access to the property for the purpose of inspection or supervising and inspecting the
progress of construction and the accounts of construction to ensure proper utilisation
of the loan.
i) Borrowers consent for Disclosure of information regarding credit facilities to
CREDIT INFORMATION BUREAU (INDIA) LTD. and other agencies As a pre-
condition, relating to grant of the loans/advances/other non-fund based credit
facilities to the borrower, bank requires borrowers consent for the disclosure by
the bank of, information and data relating to the credit facility availed of/to be
availed, by borrower; obligations assumed/to be assumed, by borrower, in relation
thereto and default, if any, committed by borrower in discharge thereof.
ii) Accordingly, borrowers hereby agree and give consent for the disclosure by the
Bank of all or any such;
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AHL-6 (Contd.)
138
a) information and data relating to borrower;
b) the information or data relating any credit facility availed of/to be availed,
by borrower; and
c) default, if any, committed by borrower in discharge of borrower such
obligation, as the Bank may deem appropriate and necessary, to disclose
and furnish to Credit Information Bureau (India) Ltd., and any other agency
authorised in this behalf by RBI.
iii) Borrowers declare that the information and data furnished by borrower to the Bank
are true and correct.
iv) Borrowers undertake that :
a) the Credit Information Bureau (India) Ltd., and any other agency so
authorised may use, process the said information and data disclosed by the
Bank; and
b) the Credit Information Bureau (India) Ltd., and any other agency so
authorised may furnish for consideration, the processed information and data
or products thereof prepared by them, to banks/financial institutions and other
credit guarantees, as may be specified by the Reserve Bank of India in this
behalf.
5.4 Negative Covenants
Unless the Bank shall otherwise agree:
a) Possession
The Borrower shall not let out or otherwise howsoever part with the possession
of the property or any part thereof.
b) Alienation
The Borrower shall not sell, mortgage, lease, surrender or otherwise howsoever
alienate the property or any part thereof.
c) Agreements and Arrangements
The Borrower shall not enter into any agreement or arrangement with any person,
institution or Government body for the use, occupation or disposal of the said
property or any part thereof during the pendency of the loan.
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AHL-6 (Contd.)
139
d) Change of use
The Borrower shall not change residential use of the property. If the property is
used for any purpose other than residential purpose, in addition to any other action
which the Bank might take the Bank shall be entitled to charge, in its sole
discretion, such higher rate of interest as it might fix in the circumstances of the
case.
e) Merger
The Borrower shall not amalgamate or merge his property with any other adjacent
property nor shall be create any right of way or any other easement on the
property.
f) Surety or Guarantee
The Borrower shall not stand surety for anybody or guarantee the repayment of
any loan or the purchase price of any asset.
g) Leaving India
The Borrower shall not leave India for employment or business or for long term
stay abroad without fully repaying the loan then outstanding together with interest
and other dues and charges including prepayment charges as per the rules of
the Bank then in force.
ARCTICLE - 6 BORROWERS WARRANTIES
6.1 The Borrower hereby warrants and undertakes to the bank as follows:
a) Confirmation of loan application
The Borrower confirms the accuracy the information given in his loan application
made to the Bank and any prior or subsequent information or explanation given
to the bank in this behalf.
b) Disclosure of material changes
That subsequent to the said loan application there has been no material change
which would affect the purchase/construction of the house or the grant of the loan
as proposed in the loan application.
c) Charge and encumbrances
That there are no mortgages, charges, lispendens or liens or other encumbrances
or any rights of way, light or water or other easements or right of support on the
whole or any part of the property of the borrower.
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AHL-6 (Contd.)
140
d) Litigation
That the Borrower is not a party, to any litigation of a material character and that
the borrower is not aware of any facts likely to give rise to such litigation or to
material claims against the Borrower.
e) Disclosure of defects in property
That the Borrower is not aware of any document, judgment or legal process or
other charges, of any latent or patent defect affecting the title of the property or
of any material defect in the property of its title which has reproved undisclosed
and/or which may affect the Bank prejudicially.
f) Public schemes affecting the Borrowers property
That the Borrowers property is not included in or affected by any of the schemes
of Central/State Government or of the Improvement trust or any other public body
or local authority or by any alignment, widening or construction of road under any
scheme of the Central/State Government or of any Corporation, Municipal
Committee, gram Panchayat etc.
g) Infringement of Local Laws
That no suit is pending in the Municipal Megistrates Court or any other Court of
Law in respect of the property mortgated with the Bank nor has the borrower
been served with any Notice for infringing the provisions of the Municipal Act or
any Act relating to local bodies or Gram Panchayats or Local Authorities or with
any other process under - any of these Acts.
h) Disclosure of facts
That the Borrower has disclosed all facts relating to his property to the bank and
has made available to them all the title deeds in his possession.
i) Due payment of public and other demands
That the Borower has paid all admitted public demands such as Income Tax and
all the other taxes and revenues payabale to the Govt. of India or to the
Government of any State or to any local authority and that at present there are
no arrears of such taxes and revenues due and outstanding. .
j) It shall be the borrowers obligation to keep himself acquainted with the rules of
the bank herein referred to, in force from time to time.
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AHL-6 (Contd.)
141
k) Banks right of lien and/or set off on securities/monies
Until payment is made to. the bank of all amounts, whether past present or future,
actual or contingent, which may be payable by the borrower or for which the
Borrower may be or become liable hereunder or otherwise and whether as
principal or, surety; the Borrower agrees that the Bank shall have a lien and/or
right of set off on all securities. and/or moneis whatsoever held at any time by
the Bank on account of or to the credit of the Borrower in or for any account or
liabilities of the Borrower out of the said securities and/or monies, and in case of
term deposits, whether the same have matured for payment or not, and may
appropriate or realise them in the manner thought fit by it and without notice to
the Borrower (and whether before or after filing suit or taking any legal
proceedings). The Bank may set off an amount estimated by it in good faith to
be the amount that obligation.
ARTICLE - 7 REMEDIES OF THE BANK
If one or more of the events specified in this Article (hereinafter called event of default)
shall have happened, then the Bank by a written notice to the Borrower may declare the
Principal of an all accrued interest on the loan and any other charges and dues to be due
and upon such declaration the same shall forthwith become due and payable forthwith and
the security constituted herein shall become enforceable, notwithstanding anything to the
contrary in this Agreement.
7.1 Events of Default
a) Payment of Default
Default shall have occurred in payment of equated monthly instalments as provided
for in Article 2.2 (c), in payment of PEMII provided for in Article 2.6(b) and in
payment of any other amounts due and payable to the Bank in terms of this
Agreement.
b) Performance of Covenants
Default shall have occurred in the performance of any other convenants, conditions
or agreements on the part of the borrower under this Agreement between the
borrower and the Bank in respect of this loan and such default shall have
continued over a period of 30 days after notice thereof shall have been given to
the borrower by the Bank.
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AHL-6 (Contd.)
142
c) Supply of Misleading information
Any information by the borrower in his loan application to the Bank for financial
assistance is found to be misleading or incorrect in any material respect of any
warrantly referred to in Article 6 is found to be incorrect.
d) Inability to Pay Debts
If there is reasonable apprehension that the borrower is unable to pay his debts
or preceedings for taking him into insolvency have been commenced.
e) Depreciation of Security
If the property given as security depreciates in value to such an extent that in
the opinion of the Bank further security to the satisfaction of the Bank should be
given and such security is not given, in spite of being called upon to do so.
f) Sale or disposal or Property
If the borrowers property which is given as security for the loan is sold, disposed
of, charged, encumbered or alienated.
g) Attachment or Distraint on Mortgaged Properties
If an attachment or distraint is levied on the Mortgaged property or any part
thereof and/or certificate proceedings are taken or commenced for recovery of
any dues from the Borrower.
7.2 Bankruptcy or Insolvency
If the borrower shall become bankrupt or insolvent, the principal of and all accrued
interest on the loan and any other dues shall thereupon become due and payable
forthwith, anything in this Agreement to the contrary notwithstanding.
7.3 Notice to the bank on the happening of an event of default
If any event of default or any event which, after the notice or lapse of time or both
would constitute an event of default shall have happened, the borrower shall forthwith
give the Bank notice thereof in writing specifying such event of default, or such event.
7.4 Expenses of Preservation of Assets of the Borrower and of Collection
All reasonable costs incurred by the Bank after an event of default has occurred in
connection with:
i) Preservation of the Borrowers assets (whether now or hereafter existing) or
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143
CHAPTER-8
ii) Collection of amounts due under this Agreement may be charged to the Borrower
and reimbursed as the Bank shall specify.
ARTICLE - 8 WAIVER
8.1 Waiver not to Impair the Rights of the Bank
No delay in exercising or omission to exercise, any right, power or remedy accruing to
the Bank upon any default under this Agreement, mortgage deed or any other
Agreement or document shall impair any such right, power or remedy or shall be
construed to be a waiver thereof or any acquiescence in such default; nor shall the
action or inaction of the Bank in respect of any default or any acquiescence by it in
any default, affect or impair any right, power or remedy of the Bank in respect of any
other default.
ARTICLE - 9 EFFECTIVE DATE OF AGREEMENT
9.1 Agreement to become Effective from the Date of Execution
a) The Agreement shall have become binding on the borrower and the Bank on and
from the date of execution hereof, it shall be in force till all the monies due and
payable to the Bank under this Agreement are fully paid.
b) The letter of offer No. ........................................................................... more fully
and particularly described in Schedule A and/or any subsequent letter(s) of offer
communication issued by the bank and duly accepted by the Borrower(s) shall
form an integral part of this Agreement.
ARTICLE - 10 MISCELLANEOUS
10.1 Place and Mode of Payment by the Borrower
All monies due and payable by the Borrower to the bank under or in terms of this
Agreement shall be paid at the Branch office of the Bank by cheque, or Bank Draft
drawn in favour of the Bank on a scheduled bank in the town or city where such branch
office is situated or in any other manner as may be approved by the Bank and shall
be so paid as to enable the Bank to realise the amount sought to be paid on or before
the due date to which the payment relates. Credit for all payment by cheque/bank draft
drawn will be given only on realisation thereof by the Bank.
10.2 Service of Notice
Any notice or request required or permitted to be given or made under this Agreement
to the Bank or to the Borrower shall be given in writing. Such notice or request shall
AHL-6 (Contd.)
144
be deemed to have been duly given or made when it shall be delivered by hand, mail
or telegram to the party to which it is required or permitted to be given or made at
such partys address specified below or at such other address as such party shall have
designated by notice to the party giving such notice or making such request:
For UCO Bank : UCO Bank ...................................................... (Branch)
For the Borrower : The address first above written or the property address described in
the Schedule.
SCHEDULE A
a) Amount of Loan Rs. .....................................................
b) Rate of Interest ...........................................................
c) Intervals at which interest shall becomputed - Quarterly/Monthly
Letter of Offer No. (s) ............................................ dated .....................
SCHEDULE B
Amortisation
a) EMI ...........................................................................
b) No. of EMls ..............................................................
c) Terms of repayment .................................................
Note : It would advisable to draw up a complete Repayment Schedule and set out herein.
REPAYMENT SCHEDULE
SCHEDULE C
3.1 Description of Property
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
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AHL-6 (Contd.)
145
CHAPTER-8
IN WITNESS WHEREOF the parties hereto have signed the day, month and year first
abovewritten. Signed and Delivered by the within named Borrower/s
.............................................................................................................................................
.............................................................................................................................................
.............................................................................................................................................
Signed and Delivered by the within named UCO Bank ....................................... (Branch) by
the hand of Shri ............................................................................................................................
its ...................................................................................................................................................
AHL-6 (Contd.)
146
APPENDIX-IX
AHL - 7
Rs. ......................................
On Demand, I/We ...........................................................................................................................
.......................................................................................................................................................
jointly and severally, Promise to Pay UCO Bank or order the sum of Rs. .............................
(Rupees .......................................................................................................................................)
only with interest thereon at.......................% per annum for value received.
Place :
Revenue
Stamp
Date :
Name of Executant .................................................................................
Address ...............................................................................................
CHAPTER-8
147
APPENDIX-X
............................................................................................................................... ...........................
AHL - 8
REVIVAL LETTER
To UCO Bank
..................................................
..................................................
..................................................
With reference to my / our Housing Loan Account with you secured by a Demand Promissory
Note dated ...................... for Rs. ......................... (Rs. ................................................................)
only with interest made by me / us in your favour I / We acknowledge for the purpose of
section 18 of the Indian Limitation Act, 1963 and any like limitation law that I am / we are
liable to you for payment of the Said Promissory Note with interest in respect of all present
and future indebtedness and liabilities secured thereby which Promissory Note is to remain
in force with all relative securities agreements and obligations.
Dated at ............................this ...................... day of ....................... 20 .......
Revenue
Stamp
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148
APPENDIX-XI
AHL - 9
UCO BANK
LETTER OF ASSIGNMENT FOR LlC POLICY
[Instruction: This portion is to be typed on the back of the policy document, with two extra
copies on plain paper also duly signed and witnessed.]
I, the undersigned,.......................................................................................................... the life
assured under the within Policy Assurance No. ....................................................... do hereby
assign and transfer all my rights, title and interest in the within Policy of Assurance and the
monees thereby secured and all the benefits attached thereto to UCO bank, successors and
assigns absolutely for value received and which may be received hereafter.
Dated at ............................................ this ............................ day of .............................. 20.........
WITNESS :
Signature .......................................................................................................................................
Full Name .....................................................................................................................................
Designation ....................................................................................................................................
Address .........................................................................................................................................
[Instruction: Two copies of draft Notice in respect of each policy separately is to be submitted
to UCO Bank together with the policy and the copy of the assignment. Please write the full
address of the LlC office where the policy is at present attached.]
NOTICE
The Branch Manager
Life Insurance Corpn. Of India Place :
(Complete Postal address) Date :
..................................................
..................................................
Dear Sir,
Policy No. ........................................................ own life I hereby give you notice that I have
assigned the above policy to UCO Bank on ..................................... Please acknowledge receipt
of this notice and forward the enclosed Policy / Deed of Assignment to UCO bank after
registering the assignment thereon in your books.
Yours faithfully,
.................................................. ..................................................
(signature of Witness) (Signature of Assignor)
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149
APPENDIX-XII
AHL -10
RECITAL
( To be entered in the Banks Equitable
Mortgage Register evidencing creation of such mortgage)
Borrower/s .....................................................................................................................................
.......................................................................................................................................................
Motgagor/s ....................................................................................................................................
1.
2.
3.
4.
Documents Deposited on : Date ..................................................
On the date mentioned the Mortgagor/s above named attend office of UCO Bank at
........................................................................................ Calcutta and delivered to and deposited
with.................................................................................................................................................
(Name of the Branch)
before Shri ....................................................................................................................................
Officer of UCO Bank (hereinafter called The Officer) the documents of title, evidence, deeds
and writings more particularly described in the First Schedule hereunder written ( hereinafter
called the said title - deeds) in respect of Mortgagor/s property particularly described in
the Second Schedule hereunder written.
Whilst making the deposit of the said deeds the Mortgagor/s stated that he/they was/
were making deposit of the said title deeds with intent to create a security by way of an
equitable mortgage, by deposit of original title deeds, on the said property together with
structures, standing thereon and / or to be constructed in future (hereinafter referred to as
the said immovable property) to secure the due repayment and discharge by the
abovenamed Mortgagor to UCO Bank of the Principal amount of loan together with interest,
compound interest and / or additional or further interest in case of default, liquidated damages,
commitment charges, premia on pre - payment or on redemption, cost, charges, expenses
and other money/s payable by the Mortgagor/s to UCO Bank under the Loan Agreement
dated ..................................................
The Mortgagor/s stated that the said title deeds so deposited were the only documents
of title relating to the said immovable property. The Officer acting on behalf of UCO Bank
accepted the said deposit on the title deeds made by the Mortgagor/s as security for the
CHAPTER-8
150
CHAPTER-8
aforesaid facilities in the presence of
........................................................................................................................................................
........................................................................................................................................................
Address
Dated ...............................
First Schedule
1 ....................................................................................................................................................
2 ....................................................................................................................................................
3 ....................................................................................................................................................
4 ....................................................................................................................................................
5 ....................................................................................................................................................
6 ....................................................................................................................................................
7 ....................................................................................................................................................
8 ....................................................................................................................................................
9 ....................................................................................................................................................
10 ....................................................................................................................................................
11 ....................................................................................................................................................
12 ....................................................................................................................................................
Second Schedule
A Plot of land measuring ............................ Cottas ............................. Chattaks ......................
Sq. ft. .................................................. dec. etc. more or less situated and being Premises
No. ......................................................................................................................................................
within ................................................................................................................... Notified Area /
Corporation / Panchayat / Municipality Thana...............................................Dag No. .....................
Khatian No. ................................ Mauja ....................................... District. ...................................
AHL-10 (Contd.)
151
APPENDIX-XIII
AHL -11
CONFIRMING LETTER
(By Registered Post)
Date :
From :
...............................................
...............................................
...............................................
To
UCO Bank
..................................... Branch
(Affix Rubber Stamp of the Region / Branch Office)
Dear Sir
I/We am/are wri ti ng thi s to confi rm that I/we have deposi ted wi th you
on ............................................ at your office at ..........................................................................
the Original Title Deeds described in the Schedule II hereunder written relating to my / our
property at ............................................................................................ fully described in Schedule
I hereunder written (hereinafter referred to as the said property) with the intention of creating
an equitable mor tgage on the said property by way of security for the loan of
Rs.................................................. lent, advanced and agreed to be advanced by UCO Bank
and all amounts due or to become due together with interests. costs, charges and all other
expenses.
The said property is self acquired / inherited and as such no one else has any interest
in the said property. The said property is under my / our sole possession / occupation (a
portion of the building is under tenancy occupation of Sri .......................................................... on
monthly rent).
There is no subsisting agreements for sale of the said property nor has any prospective
or any intending purchaser taken possession of it or a part of it. The said property is free
from encumbrances.
Yours faithfully,
CHAPTER-8
152
CHAPTER-8
SCHEDULE I
A plot of land measuring ................................ Cottahs.................................. Chattaks ...................
sq.ft. .................................................. dec etc. more or less situated and being Premises
No.................................................................................................................................................
within ........................................ Municipality, Thana ................................ Dag No. .....................
Mouza.................................................... Dist. ...............................
SCHEDULE II
List of the Title Deeds
Signature of the Mortgagor
AHL-11 (Contd.)
153
APPENDIX-XIV
AHL - 12
NOTE : To be submitted on Advocates Letterhead
Non Encumbrances Certificate & Detailed Report on Title
Ref : An area of land measuring ................................ Cottahs .......................
chattaks ..................... sq. ft. ............................. dec ....................etc.
approx. Situated in Dag No. ............................ Khatian No. .......................
J.L. No. ........................ P.S. ............................ within Sub-Registrars
Offcice of ............................... Dist. ................................... or Premises
No. ......................................... Present owner of the said Plot:
Shri / Smt. ..................................................................................................
..................................................................................................................
I have caused necessary searches in the Sub-Registry Office at ..............................................
for the period from .................................... to ................................... and in the Dist. Registry
Office at ......................................... for a period from ............................. to ...............................and
have inspected the Settlement Records, JLRO/Municipal Mutation and all other relevant
documents in respect of the aforesaid property. My report is as follows :
[NOTE FOR THE ADVOCATE (Not to be typed) (The Advocate should state here after
examining all prior title deeds relating to the property as to how the ownership developed
from time to time on the present owners. Changes of ownership which might have taken
place during the period by way of transfer/inheritance should be mentioned along with the
rel evant names, references of the regi stered deed.) The sai d
Shri/Smt. ..................................................................................................... after purchasing the
aforesaid property from ......................... on ............................... vide Deed No. ............................
at a consideration value of Rs. ................................ became the absolute owner of the
aforesaid mentioned area of .............................. cottas .......................... chattaks ..........................
sq. ft. .................... dec .................. etc. and got his/her/their name/s duly mutated in the local
JLRO office and Municipal Office and paid the relevant taxes upto date. I hereby certify that
the above mentioned land of Shri/Smt. ........................................................................................
is free from all sorts of encumbrances, charges, liabilities, liens, lispendens and attachment
of any kind whatsoever and the said property is absolutely clear, free and marketable. It is
also hereby certified that the abovementioned land is not hit by any restriction of Urban Land
(Ceiling & Regulation) Act, 1976 and the same is not under any claim of CMDA and CIT
and it is fit for equitable mortgage. The receipts for the relevant searches are enclosed hereto.
............................................
Signature of the Advocate
CHAPTER-8
154
APPENDIX-XV
AHL-13
Photograph of
the Guarantor,
(to be signed by
him/her across
the same)
LETTER OF GUARANTEE
(To be stamped as an Agreement in accordance with the Stamp Act in-force in the State in
which the document is executed and not to be attested. This document to be filled up by
the own handwriting of the Guarantor)
Place:
Date:
UCO Bank,
............................... Branch,
Dear Sirs,
In consideration of your having at my request and upon the terms that I give this guarantee,
sanctioned, in principal, a loan of Rs. .................... (Rupees ........................................ only)
(hereinafter referred to as the Loan) to Shri/Smt. .................................................................
residing at ............................................................................................................................
.......................................................................... (hereinafter referred to as the Borrowers which
expression shall unless the context otherwise requires include his/their heirs, executors,
administrators and permitted assigns) broadly on the terms and conditions stated in the Offer
Letter duly accepted by the Borrower/s, AND WHEREAS pursuant to the said Offer Letter
you have agreed to enter into a loan Agreement as per the draft thereof herewith annexed
which I have persued and the terms and conditions whereof are known to me, AND IN
CONSIDERATION of your having at the request of the Borrower/s and my request and upon
the terms and stipulations that I give this guarantee to you agreed to disburse, lend and
advance to the Borrower/s the Loan.
CHAPTER-8
155
1. I DO HEREBY GUARANTEE that the Borrower/s, jointly and severally, will duly and
punctually observe and perform each and everyone of the obligations, to pay money,
whether for or towards principal, interest, additional interest, commitment charge, extra
charges on arrears, service charges, redemption premium, cost or otherwise howsoever
on their part contained in the said Loan Agreement and also in any instrument or
instruments that may hereafter be executed by him/them in your favour modifying the
terms of the said Loan Agreement AND I DO HEREBY AGREE AND UNDERTAKE
THAT in the event of the default on his/their part or on the part of anyone of them in
making payments in discharge of any of such obligation, I shall forthwith upon your
notifying such default to me, such notification to be conclusive and binding on me as
to such default make payment to you not only of the instalments due in respect of the
defaulted instalments but also in the event of your having accelerated the payment of
the balance of the Loan, make payment to you of the entire Loan without demur or
protest myself notwithstanding any protestations from the Borrower/s and I shall without
prejudice to all your other rights indemnify you and keep you indemnified against all
loss of principal interest or other monies due to you in respect of the Loan under the
said Loan Agreement and/or any instrument or instruments that may hereafter be
executed by the Borrower/s in your favour and all costs, charges and expenses
whatsoever which you may incur by reason of any such default on the part of the
Borrower/s.
2. I hereby accord my consent to the terms of the said Loan Agreement and/or any
instrument or instruments that may hereafter be executed by the Borrower/s in your
favour as aforesaid, being by mutual consent between you and him/them in any respect
varied or modified without requiring my consent or approval thereto and I agree that
my liability under this Guarantee shall in no manner be affected by such variations and
modifications and I expressly give up all my rights as surety under the provisions of
the Indian Contract Act, 1872 in that behalf.
3. You shall have the fullest liberty without in any way affecting this Guarantee and
discharging me from my liability thereunder to postpone for any time or from time to
time the exercise of any power or powers reserved to or conferred on you by the said
Loan Agreement or any instrument or instruments that may hereafter be executed by
the Borrower/s in your favour and to exercise the same at any time and in any manner
and either to enforce or forbear to enforce payment of principal or interest or other
monies due to you by the Borrower/s or any of the remedies or securities available to
you or to grant any indulgence or facility to the Borrower/s AND I SHALL not be
CHAPTER-8
AHL-13 (Contd.)
156
released by any exercise by you of your liberty with reference to the matter aforesaid
or anyone of them or by reason of time being given to the Borrower/s or of any other
forbearance, act or omission on your part or any other indulgence by you to the
Borrower/s or by any other matter or thing whatsoever which under the law relating to
sureties would but for this provision have the effect of so releasing me AND I hereby
waive all suretyship and other rights which I might otherwise be entitled to enforce or
which. but for this provision have the effect of releasing me.
4. This Guarantee shall be enforceable against me, my respective heirs, executors and
administrators notwithstanding that securities (if any) that may be comprised in any
instrument or instruments that may be executed by the Borrower/s or any other person/
s in your favour shall be at the time when proceedings are taken against me hereunder
be outstanding, or unrealised and this guarantee shall not be determined or affected
by my death but shall be binding and operative until the repayment of all monies due
to you.
5. In order to give effect to this Guarantee you shall be entitled to act as if I was the
principal debtor to you for all payments guaranteed by me as aforesaid.
6. Without prejudice to what is stated in any other clause herein and without in anyway
whatsoever limiting or restricting the scope and the operation of the Guarantee herein
contained or the liability therefrom arising and keeping this Guarantee and all the
obligations and liabilities thereunder in full force and effect, I, in particular agree, assure
and undertake that the Borrower/s shall in terms of the said Loan Agreement and/or
any other instruments or documents executed hereafter pay you every month
duri ng the peri od of Loan the amount of Rs. .........................................
(Rupees ............................................................... only) (or any other amount as the case
may be) being the Equated Monthly Instalment, failing which, I shall make good the
default by full payment of the Equated Monthly Instalment, within seven days of the
due date without any notice of the default having been received from you. I undertake
the obligation to verify whether Borrower/s has/have paid the Equated Monthly Instalment
and in default pay it myself without being called upon to do so, notwithstanding anything
to the contrary herein contained, without conferring any legal obligation in you to give
any notice and in the event of any notice of demand being issued by you to me (which
shall be final, binding and conclusive on the Borrower/s and me) I shall forthwith, without
any demur, protest or objection and notwithstanding and protestations from the Borrower/
s, pay the amount mentioned therein, without your being required to obtain any consent
or confirmation from the Borrower/s.
CHAPTER-8
AHL-13 (Contd.)
157
7. This Guarantee is a continuing one and shall be binding on me, my respective heirs,
administrators, assigns and successors for all amount of principal of the Loan that may
be advanced by you to the Borrower/s under the said Loan Agreement and/or any
instruments that may hereafter be executed by him/them in your favour or with you as
also for all interest, additional interest, commitment charges, extra charges or arrears,
service charges, costs and other monies which may from time to time become due
and remain unpaid to you by the Borrower/s thereunder and shall remain in full force
and operative until all such money shall be paid off in full with interest, costs and other
monies and shall not be determined or affected by my death. .
8. The benefit of this Guarantee shall ensure for the benefit of your successors and assigns
and shall be irrevocable until the discharge by me of all my obligations thereunder.
9. This Guarantee shall not be affected nor shall this Guarantee be in anyway prejudiced
by your absorption or by your amalgamation with any company, corporation or concern
but shall be available for and to the absorbed or amalgamated company, corporation
or concern.
10. I assure you that I am under the disability or restriction to give you this Guarantee
and to undertake to you the repayment and pecuniary obligations of the Borrower/s as
set out in the said Loan Agreement.
11. I agree and acknowledge that this Guarantee shall ipso facto come into force and
become valid and binding on me immediately upon the Loan Agreement being executed
between the Borrower/s and you without requiring any further consent or confirmation
from me.
12. You shall have the fullest liberty without in anyway affecting this Guarantee and
discharging me from my liability thereunder to increase or decrease the loan and/or
vary the rate of interest and/or repayment terms thereof and/or permit the Borrower/s
to transfer the Loan from one property to another without any reference or needing
prior consent from me.
13. I further assure you that I have not applied for a loan to UCO Bank nor I am a borrower
of UCO Bank nor have I given any guarantee to UCO Bank in respect of any person/
s other than the Borrower/s mentioned herein above and I UNDERTAKE not to apply
for loan to UCO BANK or obtain loan from UCO BANK or give guarantee to UCO
Bank in respect of any person/s other than the Borrower/s mentioned herein above or
until this guarantee has been cancelled by you.
CHAPTER-8
AHL-13 (Contd.)
158
CHAPTER-8
Signature of the Guarantor : ............................................................................................
Name of the Guarantor : ............................................................................................
(in block Letters)
Fathers/Husbands Name : ............................................................................................
Age of the Guarantor : ............................................................................................
Designation : ............................................................................................
Office Address : ............................................................................................
............................................................................................
............................................................................................
Telephone No. (Office) : ........................................ (Resi) ........................................
Residential Address : ............................................................................................
AHL-13 (Contd.)
159
CHAPTER-8
Verification of the Guarantors Signature
(To be filled by the own handwriting of the person)
verifying the Guarantors Signature)
Signature of the Guarantor : ..................................................................................
Name of the Person verifying : ..................................................................................
Signature with Office seal : ..................................................................................
of the person verifying
Designation / Profession of : ..................................................................................
the person verifying
Guarantors Signature
Office Address : ..................................................................................
..................................................................................
..................................................................................
Telephone No. (Office) : ..................................................................................
Residential Address : ..................................................................................
Telephone No. (Residence) : ..................................................................................
AHL-13 (Contd.)
160
APPENDIX - XVI
AHL - 14
LETTER OF UNDERTAKING & INDEMNITY
(By the applicant/mortgagor in cases of agreement to purchase
a flat from promoter/builder)
To
UCO BANK Date :
......................................... Branch Place :
Dear Sirs,
Loans for purchasing residential property
I/We ..................................................................... have been granted a loan of Rs. .......................
for purchasing Flat No............................... at Premises No. .................................................
from............................................... (name of the Builder/Promoter/Owner) UCO Bank (hereinafter
called the Bank) has on the basis of Agreement for Sale dated ........................... (made
between me/us and said ................................................................................ (Name of the
Builder/Promoter/Owner) agreed to lend and advance a total amount of Rs. ........................
(Rupees ...................................................................................) only to me/us and also agreed,
as desired by me to pay on my behalf towards the part value of the said Flat to
.................................................. (Name of the Builder/Promoter/Owner). In consideration
aforesaid I/we hereby agree and undertake that in the event of cancellation of the above
agreement by the said .......................................................................... (Name of the Builder/
Promoter/Owner) or by me/us for any reason whatsoever ;
a) The amount of l oan pai d on behal f of me / us to the
said .............................................................................. (name of the builder/promoter/owner)
as part whole of the consideration money shall become due for repayment immediately
and I/we hereby undertake to repay the amount of loan advance with interest and costs
immediately.
b) I/We also further undertake to make the said ............................................. (name of the
builder / promoter / owner) to execute and register the Sale Deed in my/our favour
within 3 months from the date hereof and deposit the same with the Bank as security
for the said loan.
CHAPTER-8
161
CHAPTER-8
I/We also hereby agree and undertake to keep the Bank indemnified and harmless
against any loss, damages, costs, charges and expenses that the Bank may suffer or
incur by reason of the Bank having advanced or agreed to advance to me/us the said
l oan of Rs................................... to be pai d by i nstal ments to the sai d
.................................................................... (name of the builder/promoter/owner) or by
reason of cancellation of the said agreement for sale or non-execution of the Sale Deed
within 3 months from the date hereof or noncreation of mortgage or on default on my/
our par t to compl y wi th the terms and condi ti ons of the Loan Agreement
dated ..................................... entered/to be entered with the Bank. I/We undertake to
make good to the Bank the costs, charges and expenses, losses and damages which
may be suffered, sustained or incurred by the Bank due to or in consequence of or in
connection with the matters hereinbefore mentioned.
Dated, this...................................... day of ................................... 20 ............
Name :
Address :
AHL-14 (Contd.)
162
APPENDIX-XVII
AHL - 15
(Letter from Society in case of Co-operative flats)
UCO BANK
............................................
............................................
Branch
Dear Sirs,
Re : Flat No. ........................ of Mr./Ms. ......................................................................
in the Building called ........................................................................... and
situated at ..................................................................................
This is to confirm that ..................................................... Housing Society Ltd., is the owner
of the Building called ........................................................................................ and the Society
has allotted the flat No. .............................................. on the ...................................... floor to
Mr./Ms. .................................................................................................................... who are in
possession thereof.
You have vide your letter dated ........................................requested us to record charge/
lien of your Bank on the share and the flat referred to above as security for repayment of
the loan granted by the Bank to Mr/Ms. ..........................................................................................
We confirm that we have duly recorded your charge/lien on the subject flat and we shall
not allow the allottee Mr./Ms. .........................................................................................................
to transfer and/or exchange the said flat without obtaining your prior written consent.
We fur ther confi rm that there are no outstandi ng dues of
Mr./Ms. ........................................................................................................ to the Society.
Thanking you,
Yours faithfully,
For and on behalf of the Society
CHAPTER-8
163
APPENDIX-XVIII
AHL- 16
(Letter of Authority of Appropriation of retiring
benefits from borrower to his employer) .
(To be submitted by the employee to his employer)
To
......................................................
......................................................
Dear Sir,
Housing Loan from UCO Bank
I would like to inform you that for purchasing/constructing/repair/alteration/ extension of my
flat/house at ...................................................................................................., I intend to obtain
a housing loan for Rs. ........................ (Rupees .......................................................................only)
from UCO Bank. As per the loan sanctioned terms, UCO Bank has requested me to obtain
a certificate from my employer stating that in case of my resignation, death, retirement,
termination of service by my employer and / or cessation from service for any reason
whatsoever, due notice shall be given to UCO bank for Settlement of their dues with me.
2. Accordingly, I hereby authorize .......................................................... (my employer) that in
the event of my resignation, death, termination of service and / or cessation from service
for any reason whatsoever, or having been placed under suspension for any cause whatsoever,
before the above loan together with the accrued interest and other charges thereon have
been fully repaid, to deduct from the moneys due to me or standing to my credit or due to
my Provident Fund or Gratuity or Pension to which I am entitled, such amount as will be
sufficient to liquidate outstanding balance of this loan with the accrued interest and other
charges thereon upon the date of such cessation, and to pay the same directly to the UCO
Bank in satisfaction of this loan.
3. I further authorise my employer i.e., to deduct to the maximum extent possible (i.e., the
full amount of retirement benefit available) subject to a minimum of Rs. .............................
on my retirement from service i.e. and pay the same directly to UCO Bank in satisfaction of
this loan.
CHAPTER-8
164
CHAPTER-8
4. Kindly, therefore, arrange to issue a certificate to UCO Bank on the above lines so that
the loan payment can be expedited.
Yours faithfully
............................................
Signature of the employee
(.............................................)
Name of the employee
AHL-16 (Contd.)
165
APPENDIX-XIX
AHL -17
(Letter by the mortgagor/employee to his employer for deduction of EMI)
......................................................
......................................................
......................................................
(Address of the disbursing
authority of the office)
Date:
Dear Sir,
HOUSING LOAN INDIVIDUAL LOAN A/C NO. ..............................
I, the undersigned ................................................................................................................... am
an employee of your department. I hereby authorise you to recover by deduction
from my salary payable to me by the department, a sum of Rs............................
(Rupees ...............................................................................................) only every month
representing the Equated Monthly Instalment (EMI) by which I have undertaken to repay the
loan taken by me from UCO Bank ............................................................................ I hereby
agree that I shall not be entitled to withdraw or revoke the authority until the whole of my
debt inclusive of interest to UCO Bank is liquidated and written consent of UCO Bank is
obtained. Yours faithfully,
(Name..................................)
Witness:
Name .....................................................
1. Signature .............................................. 2. Signature .................................................
Full Name ............................................. Full Name ................................................
Designation ............................................ Designation ..............................................
Branch/Dept. .......................................... Branch/Dept. ............................................
CHAPTER-8
166
APPENDIX-XX
AHL - 18
Letter from builders/promoters/owners (on letter head)
assuring good title and other assurances
To
UCO Bank
........................................Branch
Dear Sir,
This is to confirm that we have agreed to sell the Flat No....................................................
in .............. storied building together with the plot of land measuring..................................
Cottah ........................... Chattak .............................. sq. ft. ...................... dec ............... etc.
approx. situated at/within the Premises No. .........................................................(hereinafter called
as the said property) to Mr./Mrs. ....................................................................... son/wife of
Shri ........................................................................................ (hereinafter called as purchaser/s)
for a total consideration of Rs. .......................... (Rupees ..............................................................)
only which is due on ................................................
We hereby assure you that the said plot of land as well as the said building situated at
/ within the Premises No. .................................................... are not subject to any encumbrances
or liabilities of any kind whatsoever and that the entire property is free from all sorts of
encumbrances. The said property is clear and marketable.
We further confirm that we have a clear and legal marketable title to the said property
and every part thereof. We also undertake and confirm that we shall not raise any loan from
any bank, institution, firm, corporate body or any other person or body and create any charge/
encumbrances on the said property without your written consent.
We further undertake and confirm that we shall not cancel the Agreement for Sale and
sell the said property or allow the purchaser/s to transfer the said property without your written
consent. In case of cancellation of Agreement for Sale for whatever cause l/we shall repay
to you the i nstal ments of consi derati on money di sbursed by you on behal f of
Shri/Smt............................................................ . (name of the Borrower)
We have no obj ecti on to your gi vi ng a l oan of Rs. ............................ to
Mr./Mrs. .................................................................................... purchaser/s of the said building
CHAPTER-8
167
CHAPTER-8
together with the said plot of land referred to in Paragraph 1 of this letter and his/her/their
mortgaging the same with you by way of security for repayment of the loan notwithstanding
anything to the contrary contained in our Agreement dated ............................ executed by and
between myself / ourselves with the said purchaser/s.
Thanking you,
Yours faithfully,
Note :
1. If the Promoter / Builder is a Firm then all the Partners, have to sign the same with
the office seal of the firm.
2. If the promoter / Builder is not empowered by a Registered Power of Attorney to transfer
/ mortgage the property in favour of UCO Bank in such event all the owners should
sign the same along with the Builder / Promoter.
3. If the Promoter / Builder is a Limited Company then this letter is to be signed by the
authorized signatory of the company with the official seal.
AHL-18 (Contd.)
168
APPENDIX-XXI
AHL - 19
............................................................ BRANCH
Letter requesting creation of Equitable Mortgage
To Shri / Smt. ...............................................
........................................................................
........................................................................
Dear Sir / Madam,
Re : Loan Amount Rs. .............................
Full & Final Disbursement on .................................
Loan A/c No. ...................................
You will kindly recall that according to the terms and conditions of the above Loan sanc-
tioned to you, your original conveyance deed I original registration Receipt issued by Regis-
try Office with regard to your property at ....................................................................................
........................................................................................... is required to be deposited with us
as per your Letter of Indemnity and Declaration dated...............................................
As you have not yet deposited the said deed or conveyance you are requested to deposit
the same within 12 days of receipt of this letter.
Kindly treat this letter as urgent.
Thanking you,
Yours faithfully,
Chief Manager / Sr. Manager
CHAPTER-8
169
APPENDIX-XXII
AHL - 20
Affidavit-cum-undertaking by Applicant Agreeing to Deposit the Sale Deed when obtained
(Before the Metropolitan / 1st Class Judicial Magistrate)
I .....................................................................................................................................................
S/o ................................................................................................................................................
aged about ................................ at present residing at .............................................................
do hereby solemnly affirm and declare as follows:
1. That I am by profession ....................................................................... carrying on business
at ......................................................................................................... / an employee
of .............................................................................................................. having its office
inter alia, at ......................................................................
2. That I have been sanctioned a loan of Rs. ............................................. by UCO Bank
having its branch at .................................................................................... Under its housing
finance scheme named UCO Shelter for the purpose of purchasing a ready built flat
situated at........................................................................................................................... for
a purchase price of Rs. .................................... and for the purpose I have entered into
an agreement for sale dated ..................... with ..................................................................
of ................................................................................................................................................
(hereinafter called the builder) and .......................................................................................
of.................................................................................................. (hereinafter called the
owner) for purchasing the said flat along with proportionate undivided share in the land
and other common areas and facilities appurtenant thereto.
3. That according to the terms of sanction I have to deposit the original documents of
title relating to the said flat with the Bank with an intent to create an equitable mortgage
by way of 1st charge on the said flat in favour of the Bank as security for due
repayment of the said loan along with interest, costs, charges, expenses as agreed
upon.
4. Since it is likely to take some time to get sale deed duly executed and registered by
the Builder / Owner transferring the right title and interest in the said flat with undivided
share in the land in my favour, I do hereby irrevocably agree and undertake to deposit
/ have already deposited Original Agreement for sale dt. ............................... entered into
between the Builder / Owner and myself alongwith other relevant documents namely,
CHAPTER-8
170
CHAPTER-8
the current revenue receipt, paid up Municipal Tax Receipts etc. with an intent to create
a first mortgage on the said flat alongwith undivided interest in the land as security for
due repayment of the said loan with interest as agreed rate, costs charges and
expenses thereon.
5. I do hereby further agree and undertake to get the sale deed duly registered in my
favour in respect of the said float by the Builder / Owner as early as possible and to
handover the said deed / original Receipt issued by the concerned Registry Office
evidencing lodgement of the said sale deed for registration duly discharged to enable
the bank to take delivery of the, original of the said sale deed duly registered from
the concerned registry office and authorise the Bank to keep the original sale deed
deposited with the said agreement for sale as security until the said loan alongwith
interests, cost, charges, expenses thereon are duly repaid and / or satisfied.
6. That relying on my aforesaid representation the Bank has agreed to sanction the said
loan to me.
7. The statements made in the foregoing paragraphs are true to my knowledge.
Solemnly affirmed
............................................................
at ........................................................
in the presence of ............................
............................................................
Deponent
Before me
Metropolitan / 1 st Class Judicial Magistrate with Official Seal.
AHL-20 (Contd.)
171
APPENDIX-XXIII
ANNEXURE-V
NOTE : To be submitted on Advocates Letterhead
Non Encumbrances Certificate & Detailed Report on Title
Ref : An area of land measuring ................................ Cottahs .......................
chattaks ..................... sq. ft. ............................. dec ....................etc.
approx. Situated in Dag No. ............................ Khatian No. .......................
J.L. No. ........................ P.S. ............................ within Sub-Registrars
Office of ............................... Dist. ................................... or Premises
No. ......................................... Present owner of the said Plot:
Shri / Smt. ..................................................................................................
..................................................................................................................
I have caused necessary searches in the Sub-Registry Office at ................................................
for the period from ..................................... to ................................... and in the Dist. Registry
Office at ......................................... for a period from............................. to ...............................
and have inspected the Settlement Records, JLRO/Municipal Mutation and all other relevant
documents in respect of the aforesaid property. My report is as follows:
[NOTE FOR THE ADVOCATE (Not to be typed)
(The Advocate should state here after examining all prior title deeds relating to the property
as to how the ownership developed from time to time on the present owners. Changes of
ownership which might have taken place during the period by way of transfer/inheritance
should be mentioned along with the relevant names, references of the registered deed.)] The
said Shri/Smt. ........................................................................................ after purchasing the
aforesaid property from ................................ on ................................................ vide Deed
No. ...................................... at a consideration value of Rs. ................................ became the
absolute owner of the aforesaid mentioned area of .................................. cottas ...........................
chattaks ...................... sq. ft. ............. dec ....................... etc. and got his/her/their name/s duly
mutated in the local JLRO office and Municipal Office and paid the relevant taxes upto date.
I hereby cer ti fy that the above menti oned l and of Shri /
Smt. .................................................................. is free from all sorts of encumbrances, charges,
liabilities, liens, lispendens and attachment of any kind whatsoever and the said property is
absolutely clear, free and marketable. It is also hereby certified that the abovementioned land
is not hit by any restriction of Urban Land (Ceiling & Regulation) Act, 1976 and the same is
not under any claim of CMDA and CIT and it is fit for equitable mortgage. The receipts for
the relevant searches are enclosed hereto.
............................................
Signature of the Advocate
CHAPTER-8
172
APPENDIX - XXIV
ANNEXURE -II (i)
VERIFICATION OF PRESENT EMPLOYMENT
(A) EMPLOYMENT DATA
1. Applicants :
a) Date of joining :
b) Date of confirmation :
c) Date of Retirement / superannuation :
d) Qualification :
e) Date of Birth :
2. Present Designation :
3. Probability of continued employment : Good / Fair / Poor
4. If Bonus, Overtime and Commission Bonus Rs.
are applicable, the amount that is Overtime Rs.
expected to continue
5. Has applicant applied for / If yes, please indicate outstanding amount
taken a loan from Outstanding amount Monthly instalment
a) The company : Rs. ........................ Rs. ........................
b) Provident Fund : Rs. ........................ Rs. ........................
c) Co-op credit Society : Rs. ........................ Rs. ........................
d) Is he / she regular in
repayment of these loans : YES / NO
(B) Monthly pay date : For the month of .................................................................................
Gross Deductions
1. Basic Pay : Rs. ................ 1. Provident Fund Rs. ................
2. Dearness Allowance : Rs. ................ 2. Income Tax Rs. ................
3. House Rent Allowance : Rs. ................ 3. Loan Instalment Rs. ................
4. City Compensatory 4. Other (Specify) Rs. ................
Allowance : Rs. ................ Rs. ................
5. Conveyance Allowance : Rs. ................ Rs. ................
6. Bonus : Rs. ................ Rs. ................
7. Other Allowance Rs. ................ Total Rs. ................
(please specify)
Total Rs. ................ Net Take Home Pay Rs. ................
CHAPTER-8
173
CHAPTER-8
(C) Current Balance in Provident
Fund (Employees Share) Rs. ...........................
(D) Details of any other monetary benefit or
Perquisite given by employer may be
indicated here :
(E) (i) Is the applicant occupying
accommodation provided
by the Company : Yes / No
(ii) If yes, will the benefit continue
after the applicant acquires his
own accommodation : Yes / No
(F) Indicate whether the company will remit
the monthly salary regularly to the Bank
for crediting applicants (Loanee) Savings
Bank Account maintained with the Bank : Yes / No
..............................................................
(Signature of the Employer with Stamp)
Phone : Date :
Address of the Employer
............................................................................................................
............................................................................................................
............................................................................................................
Appendix-XXIV (Contd.)
174
CHAPTER-9
SCHEME FOR FINANCING REAL ESTATE PROMOTERS/DEVELOPERS
General :
Bank is further extending credit to Real Estate Promoters/Developers under its scheme for
financing Real Estate Promoters/Developers. Under the above scheme, apart from other usual
documents, the following two documents are required to be taken by the Bank, viz.,
a) Agreement for Cash Credit to be entered into between the Borrower/ Developers and
the Bank;
b) A Tripartite Agreement to be entered into between the Borrower/ Developer, the Intending
purchaser and the Bank.
CHAPTER-9
175
ANNEXURE-1
THIS .................................... DAY OF..................... 200
BETWEEN
.......................................................
BORROWER
AND
UCO BANK
AGREEMENT FOR CASH CREDIT UNDER SCHEME FOR
FINANCING REAL ESTATE PROMOTERS/DEVELOPERS.
CHAPTER-9
176
AGREEMENT :
THIS AGREEMENT is made at Kolkata this ................................... day of ............................. Two
Thousand ................................... between .....................................................................................
........................................................................................... a public/private company within the
meaning of Companies Act, 1956 and having its Registered office at ........................................
........................................................................................................ (hereinafter called the
Borrower which term or expression shall unless excluded by or repugnant to the subject or
context be deemed to mean and i ncl ude i ts successors and assi gns)
or ........................................................................................................................ son of residing
at ...........................................................................................................................................................
.............................................................................., ................................................................., son
of ........................................................................................... residing at .......................................
son of ............................................................ residing at ..................................................................
all carrying on business in Co-partnership under the name and style of (hereinafter collectively
called the Borrower which term or expression shall unless excluded by or repugnant to the
subject or context be deemed to mean and include the heirs, executors, administrators and
legal representatives each of the partners and also the partner or partners for the time being
of the said firm) or ..................................................................................................................... son
of ................................................................. residing at .................................................................
and carrying on business as the sole proprietor of .................................................................
(which term or expression shall unless excluded by or repugnant to the subject or context
be deemed to mean and include his/her heirs, executors, administrators and legal
representatives) of the ONE PART
AND UCO BANK [formerly known as United Commercial Bank] a body corporate constituted
under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 as amended
by Section 10 (1) of the Banking Laws (Amendment) act, 1985 and having its Head Office
at 10, Biplabi Trailokya Maharaj Sarani, Kolkata-700 001 [formerly known as Brabourne Road,
Kolkata700 001] (hereinafter called the Bank which term or expression shall unless excluded
by or repugnant to the subject or context be deemed to mean and include its successors
and assigns) of the OTHER PART.
WHEREAS
1. The Borrower is, inter alia, engaged in the business of development in land, building
and other immovable properties and to sell, dispose of and deal with the same.
CHAPTER-9
Annexure-1 (Contd.)
177
2. The Borrower has taken up a project for construction of building and/or buildings
comprised of various houses/flats/apartments/units to be used for residential (and/or
commercial) purpose for sale at ................................................................. and has
approached the Bank for financial assistance to enable the Borrower to implement the
said project and at the request of the Borrower and its/their/his Guarantor(s)
namely .......................................) (hereinafter called the Guarantor(s) ) the Bank has
granted and/or agreed to grant to the Borrower financial assistance in the form of cash
credit to the extent of Rs. .......................... lacs under the Banks Scheme for Financing
Real Estate Promoters/Developers to meet part of the expenditure of the Borrower on
the said project subject to the terms and conditions contained in the Banks sanction
letter Ref. .............................................................................. dated .......................................
(hereinafter called the Banks Sanction Letter) a true copy whereof is annexed hereto
and marked with the letter A and also on the terms and conditions hereinafter
appearing.
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed and declared by and
between the Parties hereto as follows:-
ARTICLE-I
1.1. INTERPRETATION:
This Agreement shall become binding on the borrower and on the Bank on and from
the date first hereinabove written which is hereinafter referred to as the Date of
Agreement.
1.2. DEFINITIONS:
In this Agreement unless the context shall otherwise require :
Proj ect means the Borrowers scheme for the devel opment of the l and
at .............................................................................. and construction of the building/
buildings thereon comprising of various houses/flats/apartments/units to be used for
residential and/or commercial purpose for sale more fully described in the first schedule
hereinafter written.
1.3. SECURITY :
Security shall mean and include the securities to be furnished and/or created by the
CHAPTER-9
Annexure-1 (Contd.)
178
CHAPTER-9
Borrower in favour of the Bank hereinafter mentioned to secure the said cash credit
facility granted and/or agreed to be granted by the Bank to the Borrower.
The marginal notes and catch words hereunder are for the purpose of more convenient
reference only and shall not in any way control or affect or be regarded in the
interpretation of the provisions of this Agreement.
ARTICLE - II
2.1. LIMIT AND THE TERMS OF CASH CREDIT FACILITY :
(1) The Borrowers application dated .......................... and the subsequent
correspondence with the Bank (hereinafter collectively called the Borrowers
proposal) shall be deemed to constitute the basis of this Agreement and of the
Cash Credit Facility as hereinafter stated and the Borrower hereby warrants the
correctness of each and every statement and particulars therein contained and
undertakes to carry out the Borrowers proposal therein set forth.
(2) The Borrower declares and confirms that the said Cash Credit Facility shall be
governed by the terms and conditions as set out in the Banks sanction letter as
also by the terms and conditions hereunder contained as well as those embodied
in the relative security documents.
(3) The Borrower undertakes to notify in writing to the Bank of any circumstances
affecting the correctness of any of the terms set forth in the Borrowers proposal
immediately on the happening of occurrence of any such circumstances.
(4) The Borrower has been sanctioned Cash Credit Facility to the extent of
Rs. .......................... lacs under the Banks Scheme for Financing Real Estate
Promoters/Developers for meeting a part of the expenditure of the Borrowers
project on the terms and conditions set out herein and such other conditions as
may be stipulated by the Bank from time to time.
(5) The Borrower has agreed to open a Cash credit Account at any branch of the
Bank as may be intimated to it by the Bank for operating the said cash credit
Facility and the Borrower shall conform to the requirement of the Bank.
(6) The said Cash Credit Facility shall be drawn in phases as may be decided by
the Bank after taking into account the progress of the construction on receipt of
progress of work certified by the Architect/Chartered Engineers.
Annexure-1 (Contd.)
179
(7) The Promoter/Borrowers contribution is to be brought first and utilised in the
project and the Bank loan be disbursed thereafter.
2.2. INTEREST:
(1) Interest shall be charged on the outstanding in the Cash credit Account at the
rate of (............. % ) over the Banks Prime Lending Rate with a minimum of
..........% per annum plus interest tax at the rate as in force from time to time
payable and/or to become payable by the Borrower PROVIDED HOWEVER, the
Bank shall at any time and from time to time be entitled to change the rate and
terms of interest and may thereafter charge interest at such rate and on such
terms as the Bank may specify and this Agreement shall be constituted as if such
revised rate and terms of interest were incorporated herein PROVIDED FURTHER
HOWEVER the Bank shall also be entitled to charge at its discretion such
enhanced rate of interest on the Cash Credit Account either on the entire
outstanding or on a portion thereof as the Bank may fit for any irregularity and
for such period, as the irregularity continues or for such time as the Bank deem
it necessary regard being on to be nature of irregularity and charging of such
enhanced rate of interest shall be without prejudice to the other rights and
remedies of the Bank.
2.3. COMPUTATION OF INTEREST ETC.
(1) The interest, additional interest, compound interest shall be calculated on the daily
balance of such Cash Credit Account and be debited thereto on the last working
day of the month or quarter according to the practice of the Bank.
2.4. REPAYMENT:
The Borrower hereby covenants with the Bank that the Borrower shall repay the said
Cash Credit Facility to the Bank forthwith on demand of all such amounts as may be
standing at the foot of the said Cash Credit Account together with interest, compound
interest, additional interest, liquidated damages, costs, charges, expenses, fees and other
moneys charged/chargeable thereon at the rate or rates as may be debited and/or
applicable thereto. Failure of the Borrower to repay shall entail in the Borrower being
treated as a defaulter and the amount due as in default invoking provisions as to defaults
as hereinafter stated.
2.5. Appropriation of Payment:
The Borrower hereby agrees, declares, affirms and confirms that notwithstanding any
CHAPTER-9
Annexure-1 (Contd.)
180
CHAPTER-9
of the provisions of the Contract Act or and other law or any norms and conditions to
the contrary contained in this Agreement and/or security document any payment made
by the borrower to the Bank shall unless otherwise agreed by the Bank may be
appropriated by the Bank in the manner following :-
(i) first, towards costs, charges, expenses and other moneys due and payable or
becoming due and payable to the Bank.
(ii) Secondly, towards interest due and payable and/or accruing due and payable to
the Bank.
(iii) Lastly, towards repayment of the amount of any instalment(s) of principal sums
due and payable or to be due and payable to the Bank.
All the aforesaid amounts having become due and payable and/or becoming due and
payable by the Borrower to the Bank under this Agreement and/or under any of the
security document executed between the Borrower and the Bank whether the recovery
thereof has or has not become barred by any law in force for the time being as to the
limitation of the suits.
2.6. PURPOSE OF CREDIT FACILITY:
(1) The borrower agrees with the Bank that the said Cash Credit Facility shall be
utilised by the Borrower for meeting expenditure of the Borrowers Project and not
for any other purpose.
(2) If for any reason, the Borrower finds itself/himself unable to comply with the above
requirements it shall immediately inform the Bank in writing of the same and the
reason for the same.
(3) The Borrower shall not, except with the prior approval in writing of the Bank utilise
any part of the said Cash credit Account/Facility or the sales realisation out of
the project for the purpose other than that referred to in 2.6. (1) above.
ARTICLE - III
3.1. SECURITY :
The Borrower agrees that the said Cash credit Facility together with interest, compound
interest, additional interest, liquidated damages, costs, charges fees and expenses and
Annexure-1 (Contd.)
181
CHAPTER-9
other moneys payable in respect thereof will be secured and/or continued to be secured
in favour of the Bank by
(a) a first charge by way of hypothecation of the Borrowers present and future stocks
of construction materials such as steel, cement, sheet piles, lose tools etc. and
Bills Receivables and Book Debts and all other movables of the Borrower both
present and future excluding such movables as may be permitted by the Bank
from time to time.
(b) a mortgage as and by way of first charge over and in respect of the Borrowers
immovable properties, situated at ............................................ morefully described
in the second schedule hereunder written including all trees, shrubs, buildings,
structures constructions and/or erections thereon both present and future in a form
and manner acceptable to the Bank.
(c) Personal guarantee of :
(i) ...................................................................
(ii) ...................................................................
(iii) ...................................................................
3.2. CREATION OF ADDITIONAL SECURITY:
If at any time during the continuation of this Agreement the Bank is of the opinion
that the security margin of the Borrower has become inadequate to cover the balance
of the cash Credit Facilities then outstanding, on the Banks advising to the Borrower
to that effect the Borrower shall provide and furnish to the Bank to the satisfaction of
the Bank such additional security as may be acceptable to the Bank to cover such
deficiency.
3.3. MARGIN :
The Borrower shall maintain such security margin as may be stipulated by the Bank
from time to time. The Borrower shall at all times maintain a sufficient quantity of the
security to provide the Assets cover as may be required by the Bank at its discretion
and in the event of the any deficiency in such cover forthwith whenever called upon
provide to the Bank additional security to restore such Assets Cover to the original
level or pay to the Bank the equivalent in cash in the event of additional security not
being available.
Annexure-1 (Contd.)
182
CHAPTER-9
ARTICLE-IV
4. THE BORROWERS REPRESENTATION AND/OR COVENANTS:
The Borrower hereby warrants and undertakes that:
(a) The immovable properties and movable properties proposed to be mortgaged and/
or charged in favour of the Bank as security for the said Cash Credit Facility are
the absolute properties of the Borrower and at the sole disposal of the Borrower
and free from any charges or encumbrances.
(b) The Borrower is not a party to any litigation of a material character and that the
Borrower is not aware of any fact likely to give rise to any litigation or to material
claims against the borrower.
(c) The Borrower has not been served with any notice infringing any provision of law;
(d) The borrower has made all necessary arrangement and obtained the necessary
approval for furnishing the security to secure the said Cash Credit Facility;
(e) The Borrower is not aware of any material defects in title in respect of the
properties to be mortgaged and/or charged to the Bank or any scheme of public
nature affecting the same.
(f) No suit is pending in any court nor has the notice of any acquisition and/or
requisition, charge and/or claim or proceedings being received in respect of the
properties to be charged to the Bank.
(g) The Borrowers has not and shall not enter into any agreement with any person
which shall affect, prejudice or derogate in any manner the rights, powers or
liabilities given to the Bank under this Agreement or otherwise in relation to the
project or the cash credit arrangement.
ARTICLE - V
5. CONDITIONS TO BE FULFILLED BY THE BORROWER PRIOR TO THE
DISBURSEMENT OF THE CASH CREDIT FACILITY.
(a) The Bank shall have the right to require the borrower to furnish and/or arrange
for furnishing securities as specified in Article-III herein, to secure the said Cash
Annexure-1 (Contd.)
183
CHAPTER-9
Credit Facility and all moneys payable there under and the Borrower shall ensure
that necessary provisions of the applicable laws for the time being in force in
India are complied with.
(b) The borrower shall also provide and furnish to the Bank such other security or
securities as may be required by the Bank to additionally secure the said Cash
Credit Facility and all monies payable thereunder.
(c) The disbursement of the Cash Credit Facility or any part thereof shall be subject
to the security margin as specified in Clause 3.3 under Article-III above.
(d) The Borrower shall make out a good and marketable title to its properties to the
satisfaction of the Bank and comply with all such formalities as may be necessary
or required for the said purpose.
(e) The Borrower shall supply such other data and informations about the project as
may be required, subject however, to the Borrowers obligation to the third party
as to secrecy.
ARTICLE-VI
6.1. The Borrower hereby agrees with the Bank as follows :-
(a) The Borrower shall furnish the following informations in the format as may be
prescribed by the Bank :
(i) details of the project inclusive of the cost of the project and means of finance
and other details;
(ii) profitability statement;
(iii) annual Cash Budget for the duration of the cash credit facility showing
monthly/quarterly cash inflows of the specific project alongwith repayment
schedule;
(iv) audited financial statements for the last three years, the current years
estimate and projections for next three years or till the completion of the
Project.
(v) Original Title Deed of the land, detailed estimate of the proposed construction
from a Chartered Engineers/ Architect / permission from the competent
Annexure-1 (Contd.)
184
authority of the property in case it is falling under Urban (Land Ceiling &
Regulation Act, 1976);
(vi) Documents like non-encumbrance certificate, certified copy of Revenue
Settlement Parchas, current paid up Municipal tax receipts, Lawyers opinion
on perfect and marketable title, sanctioned plan etc;
(b) The Borrower agrees that the drawings in the cash credit will be allowed within
the advance value of the securities and the Borrower agrees that it will not draw
any amount in excess of the value of the Securities offered and in case of any
excess drawal to regularise the accounts forthwith or within such period as may
be stipulated by the Bank in its absolute discretion and during the period of such
irregularity the Borrower shall be charged a higher rate of 2(two) percentage points
above the rate or rates prescribed of interest abovementioned till such irregularity
is fully adjusted to the satisfaction of the bank. Further all rights, benefits and
powers exercisable and available to such excess drawals as well. The Borrower
also agrees that though the nature of credit facility will be in the form of Cash
credit; cheque books will not be issued. Debits will be allowed, after tieing up,
end use and amount will be credited to a current account on the basis of a
request letter for cash debit. The drawal from the current account can be by way
of issuance of cheques. Wherever possible, direct payment to suppliers of Cement,
Steel, machinaries will be made by debiting the Cash Credit account.
(c) The Bank shall have the right to examine at all times the Borrowers Books of
account and to have the Borrowers Project site, warehouses, godowns or any
other places where the construction materials and/or immovable properties are
located and/or situated, inspected from time to time by the official (s) of the Bank
or anyone or more of them and/or qualified auditors and/or technical experts and/
or management consultants of the choice of the Bank, the cost of such inspection
being borne by the borrower.
(d) The Borrower shall allow the Bank or its authorised agents to take inspection of
all records of the Borrower and will Produce such evidence as the Bank may
require as to the costs in respect of its operations and it shall be lawful for the
Bank at any time and from time to time during the currency of the said Cash
Credit facility to appoint and employ at the expense of the Borrower in all respects
and either temporarily or for such period as the Bank shall think fit, a person or
persons, a firm or a company to inspect and value on behalf of the Bank all or
CHAPTER-9
Annexure-1 (Contd.)
185
CHAPTER-9
any of the said Books of Account or Plant of the Borrower and the Borrower shall
pay to the Bank on demand the fees or other remuneration payable to any such
person, firm or company of the costs, charges and expenses of and incidental to
such valuation (the Banks Statements being conclusive in that behalf) and in
default, the Bank shall be at liberty to debit the amount thereof to the said Cash
credit Account or in the Banks books and thereafter the same together with
interest thereon shall be treated as advances made by the Bank until repayment
thereof;
(e) The Borrower shall pay or cause to be paid, all rents, rates, taxes, payments and
outgoings that are payable in respect of the immovable properties proposed to
be mortgaged in favour of the Borrower;
(f) The Borrower shall furnish and verify all statements, reports, returns, certificates
and information from time to time as required by the Bank in connection with the
operations of the Borrower and shall give and execute all such documents as
are required by the bank as in its opinion is necessary to give effect to the security
agreed to be created and if the Borrower shall fail to do so within thirty days of
demand in writing by the Bank or the Bank may execute such documents for and
on behalf of the Borrower in favour of the Bank for the said purpose, by virtue
of the power in this regard as hereinafter mentioned given by the Borrower to
the Bank;
(g) So long as the said Cash Credit Account continue in the Books of the Bank in
respect of the said Cash credit facility, the Borrower shall not avail of any credit
facility or accommodation from any other Bank or financial institution or any person,
firm or company in any manner without the previous permission in writing of the
Bank nor shall deal with or through any other Bank or financial institution without
having obtained in this behalf the prior written approval of the Bank;
(h) The Borrower undertakes not to repay any unsecured loans raised if any, during
the currency of the Bank loan and to procure additional funds at the appropriate
time and on terms acceptable to the Bank, to meet any shortfall that may arise
in cash accruals or for meeting overrun, if any, in financing the Project of the
Borrower. The Borrower agrees that such funds will not be withdrawn without the
prior approval of the Bank during the currency of the cash credit facility;
(i) During the currency of the said cash credit facility the Borrower shall not without
obtaining the prior consent in writing of the Bank declare any dividend on the
Annexure-1 (Contd.)
186
CHAPTER-9
share capital, if it fails to meet its obligations to pay the interest and/or commission
and/or instalment or instalments and/or other moneys payable to the Bank, so
long as it is in such default;
(j) The Borrower shall appoint suitable technical personnel for completion of the
project;
(k) The Borrower shall satisfy the Bank that it has received all the licenses and
permits required for carrying out the project and they are in full force and effect;
(I) The Borrower shall satisfy the Bank that it has received all the licenses and
permits required for carrying out the project detailing therein the sources and
disposition of funds. The Borrower shall also promptly furnish to the Bank all other
informations as may reasonably be required from time to time;
(m) The Borrower shall obtain pollution control clearances, where necessary, from the
requisite Authorities in respect of its carrying on its project to the satisfaction of
the Bank.
6.2. During the currency of the said Cash credit facility, the Borrower shall not, without the
prior permission in writing of the Bank-
i) effect any change in the Borrowers capital structure;
ii) formulate any Scheme of Amalgamation or Reconstruction;
iii) implement any scheme of Expansion/Diversificafion/Modernisation other than
incurring routine capital expenditure;
iv) make any corporate investments or investment by way of share capital or
debentures or land or advance funds to or place deposits with, any other concern
except give normal course of business or make advances to employees : Provided
that the Borrower may make such investments by way of deposits or advances
that are required statutorily to be made as per the existing laws of the country
or the rules or regulations or guidelines issued from time to time by the Authorities
concerned;
v) undertake guarantee obligations on behalf of any third party or any other company;
vi) create any further charge, lien or encumbrance over the assets and properties of
the Borrower to be charged to the Bank in favour of any other Banks, Financial
Institutions, Company, firm or person save and except as aforesaid;
Annexure-1 (Contd.)
187
CHAPTER-9
vii) sell assign mortgage or otherwise dispose house/flat/apartment/unit charged to the
bank;
6.3. (a) The Borrower agrees that its entire banking business, including deferred payment
facilities, foreign exchange, deposits and bill business if any will be confined to
the Bank only;
(b) The Borrower hereby declares and confirms that the Borrower has the necessary
and sufficient authority to borrow from the Bank;
(c) The Borrower agrees that the moneys brought in by the principal shareholders/
directors/partners/ depositors/other associate firms/group companies for financing
the project will not be allowed to be withdrawn, during the currency of the said
cash credit facilities, without the permission of the bank;
(d) The Borrower agrees that it will maintain adequate Books of Accounts which would
correctly reflect its financial position and scale of operations and would not radically
change the Accounting System without prior notice to the Bank
(e) The Borrower agrees that it will submit to the Bank, if so required, such financial
and/or other statements as may be required by the bank from time to time, apart
from the set of such statements to be furnished by the Borrower to the Bank as
on the date of publication of the Borrowers Annual Accounts;
(f) The Borrower agrees that it shall keep the Bank informed of the happening of
any event likely to have a substantial effect on its profit or business or project;
(g) The Borrower agrees that all other terms and conditions and covenants stipulated
or which may be stipulated by the bank from time to time as applicable to the
said Cash Credit facility shall be construed and treated as if the same have been
incorporated herein in extensor.
6.4. The borrower hereby further agrees and undertakes that -
a) The house/flat/Apartment/Unit pertaining to the Borrowers Project will be sold to
the intending purchasers at the predetermined prices only to avoid speculation.
On completion of the project, the house/flat/apartment/unit will be sold on outright
sale basis to the intending purchasers who may also avail of the loans from the
bank.
b) Subject to the compliance of the statutory formalities, possession of any Flat/
Annexure-1 (Contd.)
188
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Apartment and/or Unit shall be handed over to the intending purchaser only after
full payment is received by the Bank in respect of such house/Flat/ Apartment/
Unit from the intending purchasers and thereupon the Borrower may execute a
Deed of Conveyance in favour of the intending purchaser. The Borrower shall
cause the intending purchaser of the Flat/Apartment/Unit to pay the instalments
of the consideration amount of the house/flat/Apartment/Unit to the Bank directly
and the cheque shall be issued as pay to UCO Bank - name of the Borrower
or any other form and manner as may be prescribed by the Bank.
c) The Borrower shall also during the currency of the loan display a board on the
Project site stating that the property is mortgaged in favour of the Bank and any
transfer of the property or any part thereof including .the Flat/Apartment/Unit
constructed thereon shall be valid only if the bank gives consent in writing.
Similarly, all brochures and leaflets published by the Borrower for the intending
purchasers and also in the Agreement for Sale proposed to be entered into
between the Borrower and the intending purchaser of the house/flat/apartment/
unit, it should be made clear that the property is mortgaged in favour of the Bank
and transfer will be effected only with the Banks consent and payment will be
valid only if the cheque is made in favour of UCO Banks account and payment
also made directly to UCO Bank.
d) The Borrower shall also cause the intending purchasers to enter into a Tripartite
Agreement to be made between the Borrower, intending purchasers and the Bank
in the manner as may be prescribed by the Bank so that the intending purchasers
shall be liable to make payment directly to the Bank towards repayment of the
consideration amount of the concerned house/flat/apartment/unit proposed to be
purchased.
e) The sale proceeds of the house/flat/apartment/unit of the project financed by the
Bank should be utilised to adjust the cash credit facility provided by the Bank
and the same shall not be utilised to finance other project by the Borrower.
f) The Borrower shall also execute a Demand Promissory Note in favour of the Bank
covering the cash credit limit in the format and manner as may be prescribed by
the Bank.
g) The Borrower shall also execute a Power of Attorney in favour of the Bank for
execution and registration of legal mortgage and/or to execute
Annexure-1 (Contd.)
189
ARTICLE-VII
7.1. EVENTS OF DEFAULT AND REMEDY OF THE BANK :
If the Borrower shall fail to repay the cash credit facility or pay interest or any portion
thereof in terms of this Agreement or shall commit any breach of any covenant to be
observed or performed on its part therein contained and on the failure of the Borrower
to remedy the same forthwith or if any circumstances shall occur which in the opinion
of the Bank is prejudicial to or imperils the security of the Bank or if any distress or
execution is levied or enforced against any property or assets whatsoever of the
borrower or if any person, firm or company shall take any steps towards applying for
on obtaining an order for the appointment of a receiver of any property or assets
whatsoever of the Borrower and a Receiver is appointed or the Borrower makes
compromises with its creditors or the Borrower shall suspend or cease to carry on
business or fail to conduct its business to the satisfaction of the Bank or a petition for
winding up and/or insolvency is presented against the Borrower or the Borrower
proposes any amalgamation/mergers or spin off without Banks prior written consent
then and in any such case (the decision of the Bank that the aforesaid events or
circumstances have occurred shall be final conclusive and binding on the Borrower),
the entire amount standing at the foot of the cash credit account with the Bank together
with interest, costs, charges, expenses and other moneys payable in respect thereof
shall forthwith become at the option of the Bank payable at once.
7.2. The borrower further agrees as a pre-condition of the loan/advances given by the bank
that if they commit default in the payment of the loan/advances, or in the repayment
of interest or any of the agreed instalment of the loan on due dates, the bank and or
the Reserve Bank of India will have an unqualified right to disclose and/or publish the
name of the borrower its Directors/partners/proprietors as defaulter in such manner and
through such medium as the Bank or Reserve Bank of India in their absolute discretion
may think fit.
7.3. INSURANCE
(a) All the assets hypothecated or otherwise charged to the Bank as security for the
Cash Credit Facilities and also all immovable properties given/to be given as
security for the said Cash credit facility as may be required by the Bank shall be
kept at the Borrowers risk and expenses in good condition and fully insured
against loss or damage as may be required by the Bank due to any reason
CHAPTER-9
Annexure-1 (Contd.)
190
whatsoever against fire and/or such other risk(s) as the Bank(s) may from time
to time stipulate in the joint names of the Borrower and the Bank with an
insurance company approved by the Bank and for such amount as the Bank may
consider necessary and that the insurance policies shall be delivered to the Bank
when required by the Bank to do so. If the Borrower fails to effect such insurance
the Bank may, but without being obliged to do so, insure the said assets and
immovable properties against fire and/or such risk(s) in such joint names and debit
the premium and other charges to the said Cash Credit account of the Borrower
opened or to be opened and in the event of the Bank being at any time
apprehensive that the safety of the assets and properties is likely to be
endangered owing to riot and/or strike (including fire arising therefrom) and/or
floods, earthquakes, lightning, typhoon, storm, tempest and/or also resulting in the
loss of production therefrom the Bank may at its discretion but without being bound
to do so insure or require the Borrower to insure the same in such joint names
against any damage arising therefrom the cost of such extra insurance being
payable by the borrower and be debited to the said cash credit account. If the
Bank desires that the movable assets shall be insured against theft, the borrower
shall provide the necessary cover therefor. The Borrower shall provide if the Bank
so direct to sufficient insurance cover against loss on damage by fire, lighting
and flood to the immovable properties pertaining to the borrower a Project agreed
to be mortgaged and/or charged in favour of the Bank. The Borrower further
expressly agrees that the Bank shall be entitled to adjust, settle, compromise or
refer to arbitration any dispute arising under or in connection with any insurance
and such adjustment, settlement, compromise and any award made on such
arbitration shall be valid and binding on the Borrower and also receive all monies
payable under any such insurance or under any claim made thereunder and to
give a valid receipt therefor, and that the amount so received shall be credited to
the Borrowers account and the Borrower shall not raise any question that a large
sum might or ought to have been received or be entitled to dispute its liability
for the balance remaining due on any account or accounts after such credit
Provided that the Bank may at its own absolute and unqualified discretion waive
all or any of these requirements.
(b) If any proceeds of any Policy of Insurance are received by the Borrower, it shall
forthwith pay the same to the Bank for being applied in the manner hereinafter
Provided (and so long as the same are not paid to the Bank, the Borrower will
hold the proceeds on behalf of and as trustees of the Bank that is to say, in
CHAPTER-9
Annexure-1 (Contd.)
191
CHAPTER-9
equal to the some outstanding on the said cash credit account at the time of
payment and shall keep alive and maintain such insurance throughout the
continuance of the security and deliver to the Bank the renewal receipts. In default
the Bank may (but shall not be bound to) keep in good condition and render
marketable the said properties or effects or renew such insurance. Any premium
paid by the Bank or and any costs, charges and expenses incurred by the Bank
for the purposes aforesaid shall be repaid by the Borrower on demand forthwith
and shall until repayment (with interest at the rate as mentioned above) be and
form part of the amount secured as aforesaid. All sums received under such
insurance shall be applied in or towards liquidation of the amount for the time
being due to the Bank on account of the said cash credit facility.
7.4 The Borrower agrees that pending seizure by the Bank on the properties and any
documents therefor, any insurance money received by the Borrower shall be held by
the Borrower as the exclusive property of the Bank subject to the rights of the said
Bank specifically appropriated to the security and the Borrower will not without the
written consent of the Bank first had and obtained make or suffer nor attempt to make
or suffer any mortgage, charge, lien or encumbrances to affect the same on any part
thereof nor do or allow anything which may prejudice the security hereby created or
agreed to be created nor create any security whatsoever save as approved by the bank.
7.5. LIEN OF THE BANK
Bank shall have a lien and/or right of set off on all securities and monies whatsoever
of the Borrower held in any capacity howsoever and may appropriate or realise them
irrespective of its maturity date. Nothing herein contained shall prejudice or affect any
general or special lien to which the Bank or may be by law or otherwise entitled or
any rights or remedies of the Bank in respect of any present or future security,
guarantee, obligation or decree for any other indebtedness or liability of the Borrower
to the Bank or shall preclude the Bank from enforcing on having recourse to the security
without enforcing or having recourse in the first instance to any other security held by
the bank from the borrower and the bank shall be entitled to sue on any such .
securities without being bound to sue on all such securities.
Annexure-1 (Contd.)
192
CHAPTER-9
ARTICLE-VIII
8. GENERAL
a) No delay in exercising or omission to exercise any right, power or remedy accruing
to the Bank upon default under this Agreement, or in any other document shall
impair any such right, power or remedy or shall be construed to be a waiver
thereof or any acquiescence in any default, effect or impair any right, power or
remedy in respect thereof or any other default.
b) Any Notice or request required or permitted to be given or made under this
Agreement shall be in writing. Such notice or request shall be deemed to have
been duly given or made when it shall be delivered by hand or despatched to
registered post or telegram or telex to the party to which it is required or permitted
to be given or made at such partys address designated by it in writing.
ARTICLE-IX
9. CURRENCY OF THIS AGREEMENT
This Agreement shall be in force till all the monies due and payable under this
Agreement are fully paid.
ARTICLE-X
10. POWER CONFERRED BY THE BORROWER IN FAVOUR OF THE BANK
For all or any of the purposes aforesaid, the borrower irrevocably constitutes and
appoints the Bank to be Borrowers true and lawful attorney to do and execute for and
in the name and on behalf of the Borrower, all or any of the following acts, deeds and
things at Banks option that to say;
a) To take and carry on the business of the Borrower and complete any engagements
and contracts, in case the Borrower abandons the project halfway through and
does not takes steps to get it completed;
b) To sign, register, file and application forms, contracts, agreements, transfers,
acceptance receipts, acquaintances, returns and any other documents and to sign
and endorse all cheques, promissory notes, bills of exchanges, bills of lading,
dividend mandates or other orders for payment of money or delivery of property;
Annexure-1 (Contd.)
193
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c) To sell, transfer. assign or deal with any immovable and movable properties
mortgaged and/or charged in favour of the bank;
d) To demand and receive all debts, sums of money, principal money, dividends,
interest and dues of whatever nature;
e) To appoint selling agents;
f) To sell and realise all the assets whether movable or immovable including the
goodwill of the business;
g) To appoint Architectures, Engineers, Contractors for completion of the construction
Building or Buildings if the Borrower fails to do so or abandons the same;
h) To sell the houses/flats/apartments/units and to enter into agreements with
intending purchasers of such houses/flats/apartments/units and to receive any
amount or amounts as consideration or part of consideration amounts as may
be required if the borrower fails to sell the houses/flats/apartments/units or
abandons the project or for any other sufficient reason in the opinion of the Bank.
i) To appropriate any such amount deposited/paid by the intending purchaser directly
to the Bank towards the liquidation of the Banks dues.
j) If considered proper, to wind up and/or dissolve the Borrowers business;
k) To tender contract of purchase, accept and sign the transfer into the name of
the Borrower of any securities, shares, stocks, debentures, funds or any other
securities, to apply for and accept allotment of any shares and securities and to
sell, endorse, negotiate, transfer and assign any securities which do now or shall
hereafter stand in the name of the Borrower or to which the Borrower is now or
may at any time hereafter be entitled to demand, receive and collect interest and
dividend due or to accrue due on any such securities, shares, stocks, debentures,
funds other securities and apply the proceeds of such sale, endorsement, transfer,
negotiation and assignment and the recovery of any interest and dividend in
satisfaction of any monies due by the Borrower to the bank and to endorse and
transfer all or any such securities, shares, stocks, debentures, funds and other
securities which may from time to time or at any time be in the possession of
the Bank whether for safe custody or otherwise or held by the Bank as security
for, any money payable to the Bank by the Borrower in respect of any account
or general balance or account or otherwise;
Annexure-1 (Contd.)
194
CHAPTER-9
I) To appoint a proxy or proxies for the purpose of representing the Borrower and
voting in meeting or meetings of any company or corporation in which the borrower
holds any shares, debentures, stocks etc.
m) To deal with the assessment of the Borrower in respect of Income Tax, super
tax, wealth tax, gift tax, expenditure tax, capital gains tax and any other taxes
on income revenue or capital and levy of customs and/or excise duties and to
apply for and to receive refunds of any such tax or taxes or levy or levies;
n) To attend and represent the Borrower before any authority or a tribunal and for
that purpose to sign, execute and deliver all such documents and make all such
declarations as may be necessary;
o) Generally to act in the premises as fully and effectually with all intents and
purposes to do all things as are necessary and which the Borrower would do if
personally present;
p) (i) for all and any of the purpose, aforesaid to appoint substitute or substitutes;
(ii) The Borrower hereby ratifies and confirms all the acts things deeds
performed or to be performed by the Bank or its respective nominees or
substitutes in pursuance of any of the aforesaid powers and the powers
hereby conferred shall not be determined or affected by the fact of the
Borrower acting personally or through another in the premises;
(iii) the powers vested in the said Bank shall be irrevocable and subsist in favour
of the Bank till all the dues of the Borrower to the Bank are fully satisfied.
(iv) The aforesaid powers under this clause may be exercised by the Bank in
its sole discretion but the exercise of the powers is not obligatory on the
Bank.
Annexure-1 (Contd.)
195
CHAPTER-9
IN WITNESS WHEREOF the parties hereto have executed these
presents and a duplicate thereof on the day month and year first
hereinabove written.
THE COMMON SEAL of the abovenamed
Borrower ..........................................................................................
Hereunto been affixed pursuant to the Resolutions passed at the
meeting of its
Board of Directors held on the ................................................... day
of ................................................. 200 .............. in the presence of
Mr ........................................................................... Director And
Mr. ........................................................................... Authorised
signatory who have executed these presents in token their
presence in the presence of :-
Or
SIGNED AND DELIVERED by the Partners of the abovenamed
Borrower in the Presence of :-
Or
SIGNED AND DELIVERED by the abovenamed Borrower in the
Presence of :
Or
SIGNED AND DELIVERED for and on Behalf of UCO BANK by
Mr. .................................................................................................
its ...................................................................... a duly authorised
officer in the presence of :
THE FIRST SCHEDULE ABOVE REFERRED TO:
(Details of the Borrowers project for construction of Building and/
or Buildings comprising of Flats/Apartments/Units for sale to be
set out here).
THE SECOND SCHEDULE ABOVE REFERRED TO:
(The immovable property or properties pertaining to the Project
and to be mortgaged in favour of the Bank to be set out here).
Annexure-1 (Contd.)
196
ANNEXURE-2
A TRIPARTITE AGREEMENT TO BE ENTERED INTO BETWEEN THE
BORROWER/DEVELOPER, THE INTENDING PURCHASER AND THE
BANK
THIS AGREEMENT is made at Calcutta this ......................................... Day of ............................
Two Thousand .......................... BETWEEN .................................................................................
......................................, a public/private company within the meaning of Companies Act, 1956
and having its Registered Office at ........................................................................................
(hereinafter called the Borrower-Developer which term of expression shall unless excluded
by or repugnant to the subject or context be deemed to mean and include its successors
and assigns) ............................................................................................................................... son
of ....................................................................................... residing at ..........................................
............................................................................................................, ..........................................
............................................................................................................................................. residing
at ................................................................................................................................................... all
carrying on business in co-partnership under the name and title of ...................................
................................................................................... (hereinafter called the Borrower-Developer
which term or expression shall unless excluded by or repugnant to the subject or context be
deemed to mean and include the heirs, executors, administrators and legal representatives
of such of the partners and also the partner or partners for the time being or the said firm)
or .................................................................. son of ...................................................................
residing at ......................................................................................................................................
and carrying on business as the sole proprietor of ........................................................................
which terms or expression shall unless excluded to or repugnant to the subject or context
be deemed to mean and include his heirs, executors, administrators and legal representative
of the FIRST PART ........................................................................................... Son/wife of
............................................................................ Residing at ...........................................................
(hereinafter called the intended Purchaser which term or expression unless excluded by or
repugnant to the context be deemed to mean and include his/her heirs, executors,
administrators and legal representatives) of the SECOND PART AND UCO BANK formerly
known as United Commercial Bank, a body corporate constituted under the Banking
Companies Acquisition and Transfer of Undertakings Act, 1970 as amended by Section 10(i)
of the Banking Laws (Amendment) Act 1985 and having its Head Office at 10, Biplabi Trailokya
Maharaj Sarani, Calcutta-700001 and a Branch Office at ...........................................................
CHAPTER-9
197
CHAPTER-9
(hereinafter called the Bank which term or expression shall unless excluded to or repugnant
to the subject or context be deemed to mean and include its successors and assigns) of
the THIRD PART.
WHEREAS
1. The Borrower-Developer is, inter alia, engaged in the business of development in land
building and other immovable properties and to sell, dispose of and deal with the same.
2. The borrower-developer has taken up a project for construction of building comprising
of various houses/flats/units/apartments to be used for residential and or commercial
purpose for sale at .................................................................., hereinafter called the
Project and has approached the bank for financial assistance to enable the borrower-
developer to implement the project.
3. At the request of the Borrower-Developer, the Bank has granted and/or agreed to grant
to the Borrower-Developer financial assistance in the form of cash credit under the
Banks Scheme for Financing real Estate, Promoters/Developers and accordingly an
Agreement has been entered into between the Borrower-Developer and the Bank on
the ........................................... day of .......................... 200 ........... whereby the bank has
granted and/or agreed to grant to the BorrowerDeveloper cash credit facilities / Term Loan
to the extent of Rs. ............................... Lacs on the terms and conditions therein
contained. The said agreement is hereinafter called the Facility / loan Agreement.
4. One of the conditions of the said Facility / Loan agreement is that the borrower-
developer shall cause the intended purchaser of any houses/ flats/ units / apartments
to make all payments towards the consideration amount of such houses / flats / units /
apartments directly to the Bank by an account payee cheque and in terms of
arrangement, upon receipt of the full consideration amount by the Bank in respect of
each house / apartment / flat / unit in favour of the intended purchaser.
5. By an Agreement dated ........................ day of ..................... 20 ......... made between
the borrower-developer and the intended purchaser (hereinafter called the Agreement
for Sale) the Borrower-Developer has agreed to sell and the intended Purchaser. has
agreed to purchase and or acquire from the Borrower-Developer house / flat / apartment /
unit on the ............ floor of the building situated at ............................................................
Morefully and particularly described in the said agreement and also described in the
schedule hereunder written at or for the price of Rs. ................................................
(Rupees .................................................................................... only) and the terms and
conditions therein contained.
Annexure-2 (Contd.)
198
CHAPTER-9
6. To give effect to the aforesaid arrangement the bank now requires that a tripartite
agreement being these presents should be entered into between borrower-developer,
the intended purchaser and the Bank in the manner hereinafter appearing.
NOW THIS AGREEMENT WITNESSETH and it is hereby agreed and declared by and
between parties hereto as follows :
(1) In consideration of the Bank having granted and/or agreed to grant to the Borrower-
developer Financial assistance under the Facility Agreement for the Borrower-Developers
said project including the house / flat / unit / apartment agreed to be sold to the Intended
Purchaser as aforesaid, the Borrower-Developer hereby agrees and declares that all
the amounts payable by the intended purchaser as and by way of consideration amount
of the said house / flat / apartment / unit to the Borrower-developer whether under the
Agreement for sale or otherwise entered into between the borrower-developer and the
intended purchaser shall be paid by the intended purchaser directly to the bank which
shall be adjusted and or appropriated pro rata by the Bank towards the liquidation of
the Borrower-Developer to the Bank and notwithstanding anything to the contrary
containing in agreement or in the agreement for sale, the payment as aforesaid directly
made to the Bank by the intended purchaser shall give the valid discharge to the
intended purchaser of his obligations to pay the consideration amount to the borrower-
developer in terms of the agreement for sale as aforesaid. In consideration of the Bank
having granted and/or agreed to grant financial assistance to the Borrower-developer
for the project more particularly for construction of the building and or buildings
comprising of various houses / flats / apartments / units at ......................................................
.......................................................... including the said houses / fla / apartmen / unit agreed
to be purchased by the intended purchaser, the intended purchaser hereby agrees,
undertakes and confirm as follows :
(a) Notwithstanding anything to the contrary contained in the agreement for sale or
otherwise the intended purchaser shall pay all the monies / instalments payable
to the borrowerdeveloper as and by way of consideration amount under the
Agreement for sale, directly to the bank and such payment shall be made by the
intended purchaser to the Bank to an account payee cheque which should be
drawn as Pay to the UCO Bank name of the borrower-Developer.
(b) Nothing contained in the Agreement for Sale shall prejudice and or affect the rights
or remedies of the Bank in respect of any present and future indebtedness or
liability of the borrower-developer and/or the intended purchaser to the Bank or
Annexure-2 (Contd.)
199
shall preclude the Bank from enforcing or having recourse to the security, if any
furnished in the Borrower-Developer and/or its/their Guarantors and / or intended
purchaser in favour of the Bank without enforcing or having recourse in the first
instance to any other security held by the bank from the borrower-developer and/
or its/their Guarantors.
(c) The Intended Purchaser agrees as a pre-condition of their agreement that if any
default is committed by them in payment to the Bank of any instalment or
otherwise, and/or the Reserve Bank of India will have an unqualified right to
disclose or publish the name of the Intended Purchaser, a defaulter, in such
medium as the Bank or Reserve Bank of India in their absolute discretion may
think fit.
(3) The Borrower-Developer hereby irrevocably authorises the intended Purchaser to pay
and, or deposit, without reference to the Borrower-Developer all monies / instalments
of the consideration amount payable by the Intended Purchaser to the Borrower-
Developer under the Agreement for Sale or otherwise to the Bank directly.
(4) The Borrower-Developer hereby further irrevocably constitutes and appoints the Bank
as the Borrower-Developer a true and lawful attorney to do and execute for and on
behalf of the borrower-developer all or any of the following acts deeds and things:
a) to demand, recover and receive from the Intended Purchaser the entire
consideration amount in respect the flat / apartment / unit proposed to be sold to
the Intended Purchaser under the Agreement for Sale or otherwise and to give
good receipt and valid discharges for the payment and all such monies now or
hereafter to be due, owing and payable to or recoverable or receivable by the
Borrower-Developer from the Intended Purchaser as and by way of consideration
amount in respect of the flat / apartment / unit proposed to be sold to the Intended
Purchaser.
b) To demand sue for and take all steps including legal proceedings for enforcing
payment of and receive the payment of all the amounts receivable by the
BorrowerDeveloper from the Intended Purchaser as and by way of consideration
amount of the house / flat / apartment / unit proposed to be sold by the Borrower-
Developer to the Intended purchaser under the Agreement for sale or otherwise
as aforesaid.
c) To appropriate any such amount deposited/paid by the intended purchaser directly
to the Bank towards protanto liquidation of the Borrower-Developers outstanding
to the Bank.
CHAPTER-9
Annexure-2 (Contd.)
200
CHAPTER-9
d) To do or cause to be done for and on behalf of the borrower-developer all acts
and things whatsoever, whether expression mentioned herein or not, which may
seem to the Bank to be requisite or expedient to be done or cause to be done
for the purposes as aforesaid.
e) For all or any of the purposes as aforesaid to appoint substitute or substitutes.
5. The Borrower-Developer hereby ratifies and confirms all the acts, deeds and things,
which are performed, or to be performed by the Bank as its/his attomey in pursuance
of the aforesaid power and the powers hereby conferred shall not be determined or
affected by the fact of the BorrowerDeveloper acting personally or through another in
the premises.
6. The power vested in the Bank shall be irrevocable and subsist in favour of the Bank
till all the dues of the Borrower-Developer to the Bank are fully liquidated and/or satisfied.
7. Both the Borrower-Developer and the intended Purchaser hereby further agrees,
undertake, declare and confirm as follows :
(a) Notwithstanding anything to the contrary contained in the Agreement for sale
entered into between the Borrower-Developer and the Intended Purchaser, neither
the Borrower-Developer nor the Intended Purchaser shall be entitled to terminate/
determine and/or discontinue the Agreement for Sale without the prior consent in
writing of the Bank. The Borrower-Developer and the intended purchaser shall not
also assign the benefit of the said agreement for sale to any person without the
prior consent in writing of the Bank.
(b) The Bank shall be at liberty to terminate this Agreement by giving 21 days notice
in writing to the Borrower-Developer and the intended Purchaser without prejudice
to the other rights and/or remedies which the Bank may have under these presents
as well as under the Facility Agreement or otherwise against the borrower-
developer and/or the intended purchaser, as the case may be in the event of the
borrower-developer and/or the intended Purchaser committing any breach or default
of any covenant contained in this agreement or in the Facility Agreement and it
is made clear that the Bank shall be at liberty to take at any time such steps as
it may deem fit and proper against the Borrower-Developer / lntended Purchaser
to protect the interest of the Bank and/or for the recovery of its dues from the
Borrower-Developer including the sale of the house/ flat / apartment / unit of any
other person and both the borrower-Developer and the Intended Purchaser shall
have no objection thereto.
Annexure-2 (Contd.)
201
CHAPTER-9
8. It is agreed that upon payment, of the entire consideration amount, in respect of the
flat/apartment/unit proposed to be sold by the Borrower-Developer to the Intended
Purchaser, the Borrower-Developer may execute the Deed of Conveyance in favour of
the Intended Purchaser only with the consent in writing of the Bank and in such event
the Bank may give a release letter in respect of the house / flat / apartment / unit for
which consideration amount has been fully paid and/or deposited with the Bank.
9. No notice by way of demand or otherwise or any communication hereunder may be
given or made by the Bank to the Borrower-Developer and/or the Intended Purchaser
by sending the same by ordinary post to the Borrower-Developer / Intended Purchaser
to the aforesaid, addresses and. such notice (s) and/or communication shall be deemed
to have been given or made at the time when it would be delivered in the ordinary
course of post and in proving that the envelop containing the notice was posted.
Certificate signed by any of the Banks Officers that the envelope was duly posted shall
be conclusive. Any notice to be given by the Bank may be signed by the Banks Officer
authorised to sign on its behalf.
The Intending Purchaser confirm that it has read the Facility / Loan Agreement and shall
not do anything which would prejudice the interest of the Bank in any manner or which
shall adversely affect the rights, powers and covenant maintained therein in favour of
the Bank.
Description of the fiat/ apartment/unit to be set out here.
IN WITNESS WHEREOF the Parties hereto executed these presents on the day month and
year first above written.
THE COMMON SEAL of the above named Borrower-Developer
has hereunto been Affirmed pursuant to the Resolution passed
at the meeti ng of i ts Board of Di rectors hel d on
the ............................... day of .............................. 20 ............. In the
presence of Mr. ................................................................... one of
its Director who has executed these presents in token of the
presence in the presence of :
or
SIGNED and DELIVERED by the Partners of the Borrower-
Annexure-2 (Contd.)
202
CHAPTER-9
Developer in the presence of :
or
SIGNED and DELIVERED by the above named Borrower-
Developer in the presence of :
SIGNED and DELIVERED by the above named Intended
Purchaser in the presence of :
SIGNED and DELIVERED for and on Behalf of UCO Bank by
Mr. ....................................................................................................
its ................................................... in the presence of :
Annexure-2 (Contd.)
203
CHAPTER-10
CHAPTER - 10
UCO TRADER SCHEME
General
Bank is at present extending credit to eligible wholesale and retail traders under UCO Trader
Scheme, of which revised operational guidelines have been issued by the Banks HO Credit
Department vide its Circular No.CHO/ADV/06/2001-02 dated 26.4.01. Branches are advised
to look into the salient features embodied in the revised scheme in the said circular.
Under the said UCO Trader Scheme, the under noted list of documents are required to be
taken by the branches :
1. Attestation Memo
2. Application for credit Facilities under UCO Trader Scheme
3. Statement of Means
4. PSVR-1-pre-sanction visit report on applicants residence
5. PSVR-2-pre-sanction visit report on applicants place of business/office
6. Stock Statement Form
7. Stock Inspection Report
8. PSVR-4-pre sanction inspection report on collateral security offered
9. Non-encumbrance Certificate & Detailed Report on Title
10. Process Note (Cash Credit)
11. Process Note (Term Loan)
12. A-1 Demand Promissory Note-Individual
13. A-2 Demand Promissory Note-Joint Borrowers
14. A-3 Letter of Continuity
15. A-4 Letter of Lien
16. A-8 Agreement to pledge of goods to secure Demand Cash Credit (for stock/book
debts).
204
CHAPTER-10
17. A-9 Hypothecation of goods to secure Demand Cash Credit (for stock/book
debts).
18. A-9A Deed of Hypothecation of Movable plant and machinery to secure a term
loan.
19. A-9D Agreement for extension of charge by way of hypothecation over current
assets to secure non-fund based facilities.
20. A-12A Acknowledgement of debt/securities.
21. A-21 Letter of guarantee to be used if borrowers are a company or firm.
22. A-21A Letter of guarantee in case of Individual Borrower.
23. A-38 Application for credit facilities on the security of Deposit(s).
24. A-38A Letter from UCO Bank informing the depositor regarding sanction of loan to
others against security of fixed deposit in his name.
25. A-39 Application to take credit against security of fixed deposit in the name of third
parties.
26. A-58 Letter of declaration cum agreement for advance against security of Life Policy.
27. A-88B Counter guarantee in case of guarantee facility.
28. A-107 Letter of Guarantee in case of joint borrowers.
29. A-109 Agreement relating to term loan.
30. D-48 Application form for credit facilities on the security of Recurring Deposit.
31. Letter of undertaking to be obtained from applicant for advances against immovable
property.
32. Letter authorizing a person to deposit title deed of property for creating equitable
mortage.
33. Entry to be made in the EM Register in respect of property standing in the name of
one or more individual
Partnership firm.
Limited companies.
205
CHAPTER-10
36. Letter of deposit of title deeds to be obtained from mortgagor/s
37. Letter to be obtained from mortgagor/s for covering increase in limits
38. Entry to be made in equitble mortgage register owing to increase in limits.
39. Letter to be obtained from mortgagor/s for deposit of additional title deeds with or without
increase in limits.
40. Valuation report of immovable property.
From the aforementioned list of documents, it may be observed that all the documents are
annexed to this Manual of Documents, save and except item No. 24 of the list i.e., A-
38A(Letter from UCO Bank informing the depositor regarding sanction of loan to others
against security of fixed deposit in his name) which is annexed hereto.
206
CHAPTER-10
Y/ A - 1
h0/ Rs. .....................................
:tl / Place ................................................
;theF / Date .............................. 200 .........
b/ nb.................. btkd fUe stl uvh gqfUtucfU................. fUtugt Wl fuUyt=uN vh tt bqg
fuUrtY.................. hvgufUe htrN ;:t Wmvh sbt =h/ Cth;eg rhsJocfUfUe =h mu.............
r;N; r;JMoyr"fUvh;wgql ;b................ r;N; r;JMofUe =h vh gt gqfUtucfUtht bwSu/
nbmqal t =u;unwY mbg-mbg vh rl ra; fUe stl uJtte =h vh gts .................. yk;qtt vh y=t
fUhl ufUt cal =u;t nq/=u;un>
On demand I/We .................. promise to pay UCO Bank ................... or order the sum
of Rupees ........................................ With interest at the rate of ........................... per cent per
annum above the Deposit Rate / Reserve Bank of India Rate subject to minimum rate of
interest of .............................. per cent per annum or at such other rate as may be decided
by UCO Bank from time to time under intimation to me/us with .................................. rests
for value received.
rl vt=l fU;tofUt l tb
Name of the Executant .................................................................
v;t
Address ...........................................................................................
.........................................................................................................
.........................................................................................................
l tux & RmVUtpbofuUrn=e vtX murfUme fUth fuUct=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
ykd{use vtX ne tr"f]U; btl t stYdt>
Note : In the event of any controversy arising out of Hindi version of this form, the original
English Text of it will be treated as authoritative.
APPENDIX
207
CHAPTER-10
c"fU/ The Manager, Y/ A3
.................................................
rg bntu=g/Dear Sir,
b/nb......................................................... h0 (........................................ hvgu) fUt btkd
cal -vt mktl fUh;t nq/fUh;un stubuhu/nbthutht n;tGrh; ni ytih rsmubuhu/nbthugt nb bmu
rfUme YfUl tb vh rVUtntt cfUtgt rfUme ytuJhz[tx/l fU=e }UK fUe y=tgde fuUrtY ;:t buhu/nbthu
gt nb bmurfUme YfUfuUtht RmfuUvat;TrtY st mfUl uJttu....................................... h0
(......................................................................................................... hvgu) fuUytuJhz[tx/l fU=e}UK
fUe y=tgde fuUrtY Ce ytvfUtur;Cqr; fuUv br=gt dgt ni YJkgn cal -vt ytuJhz[tx/l fU=e
}UK bmuy=; hn dge ykr;b NuMhtrN fUe y=tgde nu;wytvfuUrtY r;Cqr; ntude ytih b/nb
W; cal -vt vh Rmct; fuUntu;unwY Ce =tge hnqdt/hndurfUW; ytuJhz[tx/l fU=e }UK mbg-mbg
vh Dx dgt ni gt rl Jtorv; ntudgt ni gt W; Ft;ubyr"fUhtrN sbt ntudRoni>
I/We beg to enclose a demand Promissory Note for Rs. ...............................................
(Rupees ..............................................................................................................) signed by me/
us which is given to you as security for the repayment of any overdraft/cash credit which is
as present outstanding in my/our name or inthe name of either of us and also for the
repayment of any overdraft/cash credit to the extent of Rs. ....................................................
(Rupees ..........................................................................................................) which I/We or either
of us may avail of hereafter and the Promissory Note is to be a security to you for the
repayment of the ultimate balance sum remaining unpaid on the overdraft/cash credit and
sum remaining unpaid on the overdraft/cash credit and I am/we are to remain liable on the
said Promissory Note notwithstanding the tact that by payments make into the account of
the said overdraft/cash credit from time to time the said overdraft/cash credit may from time
to time be reduced or extinguished or even that the balance of the said account may be at
credit.
CJ=eg/Yours faithfully,
r=l tkfU......................................
Date
:tl ........................................
Place
rxvKe & RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt
bqt ykd{use vtX ne tr"f]U; btl t stYdt>
Note : In the event of any controversy arising out of Hindi version of this Form the original
English text of it will be treated as authoritative.
gq fUtucf UCO BANK
208
CHAPTER-10
The Manager, A-4
UCO BANK,
............................................
Dear Sir,
In consideration of the advances already made and of those which you may at your
discretion make to me/us from time to time, I/we, hereby give you a lien on all securities
now pledged by me/us with you and also on all other securities and monies now and from
time to time hereafter held by you on my/our account for the outstanding general balance of
all and every my/our loan account, current, cash credit or other accounts with you, as well
for any other monies that may be due by me/us to you and you will have power at your
discretion to sell or encash all such securities and accept payment of the value on maturity
or before for any or all such securities in the event of my/our not maintaining a margin
of ...................................... percent on the market value of the said securities or on my/our
failing to repay the amount due by me/us to you when they become respectively repayable
and on such sale to pay out of the proceeds the cost of the sale/value realisation and all
such advances and all other debts, balances and monies then due by me/us to the Bank
either singly or jointly with another or others and I/we undertake to execute proper transfer
deeds and other instruments, when required to ensure to you the full benefit and advantage
of the said securities. In case the amount recovered from the sale/value-realisation of the
securities is insufficient to pay in full the total debt due by me/us to the Bank, I/we are of
course liable to make good the decifiency. I/We also agree that you shall have full discretion
and liberty as to the manner mode place time and conduct of the sale. I/We further authorise
you to attach whatsoever stamp that may be required to give effect to the aforesaid sales
or otherwise to render your said lien effectual and I/we undertake to reimburse your the cost
of such stamps. You are at liberty to re-pledge my/our securities, transform the securities
from the physical form to Demat form or any other form as may be required by law of the
land. In case of need, you are also at liberty to hand-over any or all of the security to the
issuer for marking lien/cancellation of lien/transfer of the same to securities the loans/advances
made to me/us or to securities any debt due to you from me/us. I/We, declare that at present
there is no charge, lien, encumbrance, attachment or litigation pending on, against or in
respect of the said securities.
Yours faithfully,
Date : ...................................... 20 .......
Address :
209
CHAPTER-10
ck"fU Y-4
gqfUtucfU
...............................................
rg bntu=g,
bwSu/nbytvfuUtht mbg-mbg vh r=Y dY ytih JrJJufUtl wmth r=Y stl uJttuyrd{b nu;wbuhu/nbthu
tht ytvfuUvtmrdhJe hFudY mCe r;Cqr;gtvh ytih buhu/nbthumCe ytih rfUn }UK YJkytvfuU
vtmfuUattq, l fU=e }UK gt yg Ft;ubcfUtgt mtbtg NuMfuUrtY ;:t buhu/nbthutht ytvfUtu
=ug rfUme yg "l htrN fuUrtY buhu/nbthuFt;uvh ytvfuUtht yCe ytih RmfuUvat;Tmbg-mbg
vh "trh; yg mCe r;Cqr;gtvh ytvfUtuRmfuUtht "thtKtr"fUth =tl fUh;t nq/fUh;un ytih buhu/
nbthutht W; r;Cqr;gtfuUctsth bqg vh............................................................. r;N; fUt
btrsol l n cl tY hFl ufuU=Nt bgt buhu/nbthuvtmcfUtgt hfUb fuUf{bN&r;mk=ug ntul uvh Ce
buhu/nbthutht Wmul ttixtY stl ufUe =Nt bytvfUtuyvl urJJufUtl wmth Yume mCe r;Cqr;gtfUtucual u
fUe Nr; ntude ytih YumurJf{g fuUbqg ytih WmfUe tr;gtmuWmmbg buhu/nbthutht yfuUtugt
yg gr; (gr;gt) fuUmt: mkgw; v mucfUfUtu=ug mCe yrd{btytih yg mCe }UKt, NuM
htrNgtYJk"l htrNgtfUe awfUti;e fUhl ufUe Ntr; ntude ;:t b/nb W; r;Cqr;gtvh ytvfUtuvqht
VUtg=t ytih ttC mwrl ra; fUhl ufuUrtY, sc Ce yvurG; ntu, mbwra; yk;hK =;tJust YJkyg
rtF; rl vtr=; fUhl ufUt Jal =u;t nq/=u;un ytih gr= r;Cqr;gtfuUrJf{g mutt fUhb mubuhu/
nbthutht cfUfUtu=ug fwUt }UK fUe vqhe ;hn awfUti;e l n ntu;e ntu;tub/nb WmfUbe fUtuvqht
fUhl ufuUrtY =tge nq/n>b/nb Rmct; muCe mnb; nq/n rfUytvfUturJf{g fUe her;, Zkd, :tl ,
mbg YJkmkattl fuUcthubvqKorJJufUtr"fUth YJkJ;kt;t ntude>b/nb ytvfUtuytdutr"f]U; fUh;t
nq/fUh;un rfUytv W; rJf{g fUtufUtgtol rJ; fUhl ugt yg:t yvl u"thKtr"fUth fUtuCtJNet
cl tl ufuUrtY g:tuvurG; xtv tdt mfU;un ytih b/nb ytvfUtuYumuxtv fuUbqg fUe r;vqr;ofUhl u
fUt Jal =u;t nq/=u;un>ytv buhe/nbther;Cqr;gtfUtuvql &rdhJehFl u, Ctir;fUJv muCtir;fU;thrn;/
rJCtir;f]U; (zebux) y:Jt =uNtath tht g:tuvurG; yg Jv bvrhJr;o; fUhl ufuUrtY J;kt n>
ytJgfU;t v\zl uvh ytv rl dobfU;tofUtufUtuRoCe y:Jt mc r;Cqr; buhu/nbthe ytih ytvfuUrfUme
cfUtgu}UK fuUr;Cqr;fUhK y:Jt bwSu/nb=tl fUe dge }UK/yrd{btfuUr;Cqr;hfUhK fuUrtY Wmu
"thKtr"fUth ykfUl /"thKtr"fUth rl hml /yk;hK nu;w=ul ufuUrtY Ce J;kt n>b/nb gn DtuMKt fUh;t
nq/fUh;un rfUJ;obtl bW; r;Cqr;gtvh gt WmfuUYJs brfUme Ce fUth fUt Cth, d{nKtr"fUth,
}UKCth, fwUfoUgt Jt= tkrc; l n ni>
CJ=eg,
;theF ...............................20
v;t&
rxvKe&RmVUtbofuUrn=e vtX murfUme fUth fuUct=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
210
CHAPTER-10
A-5
ACCOUNT NO. ............................... LEDGER FOLIO NO. ...................
PARTNERSHIP LETTER ........................... 200 .
The Manager
UCO BANK
..............................................
Dear Sir,
We have by a separate application of date asked you to open an account in the name of
our firm ....................................................................................... .
We confirm that our partnership is registered/not registered with the Registrar of Firms under
the Indian Partnership Act, 1932 and is written/verbal one.
We the undersigned further declare that we are the partners of the said firm and carry on
business in similar and other names at ............................................................................ and
that any of us is authorised to sign all documents on our behalf in your favour in connection
with all our dealings of whatever nature with your bank and acknowledge all types of debts
and sign balance confirmation of accounts and confirm securities charged therein and that
any of us is authorised to sign on behalf of the firm and have full and unrestricted authority
to bind the firm. Accordingly, we request and authorise you to honour our respective signatures
on behalf of the firm.
We also request and authorise you that until any one of us shall give you notice in writing
to the contrary to honour all cheques or other orders which may be drawn or bills accepted
or notes made or receipts for moneys owing by you to the firm signed by anyone of us in
the firms name and to debit such cheques, orders, bills, notes and receipts to the firms
account or accounts with you whether such account or accounts be for the time being in
credit or overdrawn or may become overdrawn in consequence of such debit and we will be
jointly and severally responsible for the payment of any such overdraft, interest and other
bank charges.
Any securities or other property of or deposited in the name of the firm may be withdrawn
and any moneys may be borrowed from you in the name or on behalf of the firm and may
be secured in any manner upon any securities, moneys or property of or deposited in the
name of the firm by any one of us and, we will be jointly and severally responsible for the
payment of such moneys with interest, costs, charges and expenses in respect of existing
and future transactions between the firm and the bank.
211
CHAPTER-10
Upon any partner ceasing to be a member of the firm by death, bankruptcy, retirement or
otherwise you may treat the surviving or contiuning partner or partners for the time being
as having full authority and power to carry on the business of the firm and to deal with its
assets for the purpose of winding up or otherwise as freely as if there had been no change
in the firm and you will be relieved of all responsibilities to see if such dealings were in
competency of surviving partner.
The authority shall remain in force until the closing of the account with you notwithstanding
any change in the constitution or name of the firm and shall apply notwithstanding any change
in the membership of the firm by death, bankruptcy, retirement or otherwise or the admission
of any new partner or partners.
And we hereby jointly and severally free you from any liability for the funds or the security
charged in the account that may be withdrawn by the remaining partners after death,
bankruptcy or retirement of any partner or partners and hereby agree to indemnify you against
all claims, actions and demands arising from such withdrawal of funds and/or the securities
by the remaining partners. And we hereby further agree and declare that this agreement
shall be binding upon ourselves and our respective legal representatives and you will not be
liable in any way for the operation on the account in the name of the firm by any of us or
for withdrawal of the funds and/or securities by any one of us.
Wherever, any change occurs in our partnership, we undertake to inform the bank of the same
in writing and our individual responsibility to the bank will continue, until we receive from the
bank an acknowledgement of the letter and until all our liabilities with the bank are discharged.
Name of the Partners : Yours faithfully,
1. ............................................................
2. ............................................................
3. ............................................................
4. ............................................................
5. ............................................................
Address of Individual Partners :
Name Address
............................................................ ............................................................
............................................................
............................................................ ............................................................
............................................................
............................................................ ............................................................
............................................................
212
CHAPTER-10
Y-5
Ft;t mkgt................................ tush VUturtgtmk.........................
Ctde=the-vt .........................................20 .
ck"fU,
gqfUtucfU
.....................................................
rg bntu=g,
nbl uyts fUe ;theF bYfU v]:fTU ytJu=l -vt tht ytvmuyl whtu" rfUgt ni rfU ytv nbthu
VUbo........................................................................................... fuUl tb bYfUFt;t Ftut>
nb vwr fUh;un rfUnbtht Ctde=the VUboCth;eg Ctde=the yr"rl gb, 1932 fuUy"el VUbohrsx[th
fuUvtmhrsx[ef]U; ni/l n ni ytih rtrF;/btirFfUni>
nb y"tun;tGhe ytduDturM; fUh;un rfUnb W; VUbofuUCtde=th n ytih mbtl ;:t yg
l tbt...................................................................................... bgJtg att;un YJknb bmu
fUtuRoCe Rmct; fuUrtY tr"f]U; ni rfUJn ytvfuUcfUfuUmt: rfUme Ce ;hn fuUtul -=ul fuU
mkck" bnbthe ytuh muytvfuUvG bmCe =;tJustvh n;tGh fUh;:t mCe ;hn fuU}UK fUtu
yrCJefUth fUhYJkFt;tfuUNuMvwrfUhKvt vh n;tGh fUhytih WmbCtrh; r;Cqr;gtfUe vwr
fUh;:t nb bmufUtuRoCe VUbofUe ytuh mun;tGh fUhl ufuUrtY tr"f]U; ni YJkWmuVUbofUtu
ytJ fUhl ufuUrtY vqKoYJkyrl Jor"; tr"fUth ni>;=l wmth nb ytvmuyl whtu" fUh;un ytih
ytvfUtuRmct; fuUrtY tr"f]U; fUh;un rfUVUbofUe ytih muytv f{bN&nbthun;tGhtfUtumfUth>
nb ytvmugn Ce yl whtu" fUh;un ;:t Rmct; fuUrtY ytvfUtutr"f]U; fUh;un rfUsc ;fUnb
bmufUtuRoCe ytvfUturtrF; v br;f]U; mqal t l =;c;fUytv ytnrh; rfY stl uJttumCe
aufUtgt yg yt=uNtgt mfUthdY rcttgt ;igth rfY dY l tuxtgt VUbofuUr; ytvfuUtht
"trh; "l fUe Yume vtJ;e fUtumfUthstuVUbofuUl tb bnbubmurfUme YfUfuUtht n;tGrh; n
ytih YumuaufU, yt=uN, rct, l tux ytih vtJ;e fUtuyvl uvtmfuUVUbofuUFt;ugt Ft;tbl tbuztt,
atnuYumuFt;ugt Ft;tb;mbg sbt vG yr"fUntugt Wmmuyr"fUhtrN ytnrh; fUe dRontu
gt Yumul tbuzttl ufuUVUtJv Wmmuyr"fUhtrN y"el ntudRontu;:t nb mkgw;;&ytih v]:fU;&
YumurfUme ytuJhz[tx, gts YJkyg cfUCth fuUCwd;tl fuUrtY Wth=tge ntdu>
nb bmurfUme YfuUfuUtht VUbogt WmfuUl tb bsbt rfUn r;Cqr; gt yg mkvrt fUtuytnrh;
rfUgt st mfU;t ni ytih VUbofuUl tb bgt WmfUe ytuh mufUtuRo"l ytvmuW"th rtgt st mfU;t
ni ytih WmuVUbofUtugt WmfuUl tb bsbt rfUn r;Cqr;, "l gt mkvrt vh rfUme Ce v b
r;Cqr; hFt st mfU;t ni ;:t nb VUboytih cfUfuUcea rJ btl ytih CtJe tul -=l ufUe ctJ;
gts, ttd;, Cth YJkFaomrn; Yumu"l fuUCwd;tl fuUrtY mkgw;;&ytih v]:fU;&Wth=tge ntdu>
213
CHAPTER-10
gr= fUtuRoCtde=th b]gw, r=Jtttvl , muJt-rl J]rt, fuUfUthK mugt yg:t VUbofUt m=g l n hn;t ni
;tuytv gn btl mfU;un rfUWthseJe gt ;mbg cl uhnl uJttuCtde=th gt Ctde=thtfUt VUbofUt
gJmtg attl uYJkvrhmbtl fUhl ugt yg gtusl fuUrtY WmfUe ytr;gtfuUtul -=ul fUt Yumt
rl Jto" vqKotr"fUth YJkNr; ni btl tuVUbobfUtuRovrhJ;ol l n nwyt :t ytih ytv gn =uFl ufuU
mCe Wth=trgJtmubw; hndurfUWthseJe Ctde=th Yumutul -=ul fUhl ufuUrtY mGb :ugt l n>
VUbofuUdXl gt l tb brfUme fUth vrhJ;ol ntul uvh Ce gn tr"fUth ytvfuUvtmfuUFt;ufuUck=
rfY stl u;fUJ]t hnudt ytih b]gw, r=Jtttvl , muJtrl J]t gt yg fUthK mugt rfUn l Y Ctde=th
gt Ctde=thtfUe rl gwr; fuUfUthK muVUbofUe m=g;t bfUtuRovrhJ;ol ntul uvh Ce ttdqntudt>
ytih nb mkgw;;&YJkv];fU;&RmfuUtht ytvfUturl r"gtgt Ft;uvh Ctrh; Yume r;Cqr; fuU=trgJ
mubw; fUh;un rsmurfUn Ctde=th gt Ctde=thtfUe b]gw, r=Jtttvl gt muJtrl J]rt fuUvat;TNuM
Ctde=thttht ytnrh; rfUgt st mfU;t ni ;:t nb RmfuUtht fUhth fUh;un rfUNuMCtde=thttht
Yume rl r"gtytih/gt r;Cqr;gtfuUytnhK muWvt mCe =tJu, fUthJtRoYJkbtkd fuUrJh ytvfUe
Gr;vqr;ofUhduytih nb RmfuUtht ytdufUhth fUh;un YJkDturM; fUh;un rfUgn fUhth nbthuYJk
f{bN&nbthurJr"fUr;rl r"gtvh ctgfUthe ntudt ytih ytv nb bmurfUme YfUfuUtht VUbofuU
l tb fuUrfUme Ft;ufuUvrhattl fuUrtY gt nb bmurfUme YfUfuUtht rl r"gtytih gt r;Cqr;gt
fuUytnhK fuUrtY rfUme Ce v b=tge l n ntdu>
gn cal =u;un rfUsc fUCe nbthuCtde=the VUbobu,kfUtuRovrhJ;ol ntudt ;tunb rtrF; v b
WmfUe mqal t cfUfUtu=duytih sc ;fUnbcfUmuWmvt fUe vtJ;e tt l n ntu;tuytih sc
;fUnbcfUfuUr; mCe =trgJtmubwr; l n rbt st;e ;c;fUcfUfuUr; nbtht gr;d;
Wth=trgJ cl t hnudt>
Ctde=thtfUt ltb& CJ=eg,
1. ................................................
2. ................................................
3. ................................................
4. ................................................
5. ................................................
grfUCtde=htfUt v;t
l tb v;t
................................................ ................................................
................................................
................................................ ................................................
................................................
................................................ ................................................
................................................
l tux& RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt= fuUWvt ntul ufUe r:r; bRmfUt bqt ykd{use vtX ne
tr"f]U; btl t stYdt>
214
CHAPTER-10
Y/ A-6
:tl / Place ..............................
ck"fU/ Manager, r=l tkfU/ Date .............................
gq fUtucf UCO BANK
rg bntu=g/Dear Sir,
b/nb RmfuUtht ytvmuyl whtu" fUh;t nq/fUh;uni ytih ytvfUtutr"f]U; fUh;t nq/fUh;un rfUsc;fU
ytvfUtubuhu/nbthun;tGh mufUtuRorCt mqal t rtrF; v btt l ntusc;fUytv mbg-mbg vh
YumumCe aufUtgt yg yt=uNtfUt Cwd;tl buhu/nbthurtY yxl tuofuUv bgt buhu/nbthuFt;uvh
fUh mfU;un ytih WnumfUth mfU;uni stu............................................... tht ytnrh; rfUgt stY
(rsmfUt ytnhK WmfuUtht rfUgt stl t ;tvrg; ni) ;:t YumumCe aufUtgt yg yt=uNtfUe hfUb
fUtubuhu/nbthuWm/Wl crfkUd Ft;ugt Ft;tbul tbuztt mfU;un stu;mbg ytvfuUcfUfuUvtm
n>bl u/nbl uW; .................................................................... fUtuRm ct; fUe vqhe Nr; YJk
tr"fUth r=gt n rfUJn buhu/nbthucrfkUd Ft;ugt Ft;uvh YumuaufUtgt yg mbg YumucrfkUd Ft;u
gt Ft;bhtrN sbt ne gt Wl muyr"fUhtrN ytnrh; ntuawfUe ntugt fUtuRoyg :r; ntu>
I/We hereby request and authorise you from time to time until you shall have received from
me/us notice to the contrary in writing under my/our hands, to pay and honour all cheques
or other orders which may be drawn by....................................... (purporting to be drawn by
him) per procuration for me/us or on my/our account and place the amount of all such
cheques or other orders to the debit of my/our Banking account or accounts for the time
being with your Bank. I/We have given to the said ............................................. full power and
authority to draw such cheques or other orders on my/our such Banking account or accounts,
whether such Banking account or accounts are in credit or overdrawn or otherwise at the
time such cheques or other orders are presented to you for payment.
bl u/nbl uW; ........................................................... fUtuRmct; fuUrtY tr"f]U; rfUgt ni rfUJn
Cth; gt rJ=uN r:; rfUme vtxeovh rfUne rJt gt rcttfUtubuhu/nbthuytuh muytnrh; fUhuytih
Wmu/WnuytvfUe btVoU; cuatl fUhu>nb RmfuUtht ytvfUtuJal =u;un rfUgr=Yumt fUtuRorct y=t
hn st;t ni, ;tunb ytvfUtuWmfUe ctJ; =ug mCe htrN fUt Cwd;tl fUhdu>
I/We have authorised the said ..................................................... to draw any bill or bills on
my/our behalf on any party in India or aborad and to negotiate the same through you. We
hereby undertake to pay you all your dues, if any, of such bills remaining unpaid.
215
CHAPTER-10
bl u/nbl uW; ................................................................................... fUtuRmct; fuUrtY tr"f]U;
rfUgt ni rfUJubuhu/nbthuW; crfkUd Ft;ugt Ft;ub"l , aufU, l tux, z[tx, yt=uN YJkyg mCe
=;tJust fUtusbt fUhytih ytJgfU;t v\zl uvh Wnubuhu/nbthurtY yxl eofuUv bgt buhu/nbthu
Ft;uvh ;:t mbg mbg vh buhe/nbthe ytih muW; crfkUd Ft;ugt Ft;tufUe mg;t fUtubtrK;
fUh ytih Wmmumkckr"; aifUYJkyg JtWah tt fUh>
I/We have authorised the said .................................................................. to pay moneys,
cheques, Notes, Drafts, Order and all other Documents to the Credit of my/our said banking
account or accounts and when needful, to endorse the same per procuration for me/us or
on my/account and from time to time on my/our behalf certify the correctness of the said
banking account or accounts and received the cheques and other voucher relating thereto.
b/nb W; ........................................................................ fUtuRmct; fuUrtY Ce tr"f]U; fUh;t
nq/fUh;uni rfUJn buhe/nbthuytih mur;Cqr;gt, Nugh ytr= ytvfUtu=tl fUh gt ytvmutt fUhu>
I/We also authorise the said ............................................................ to deliver to or receive from
you securities, shares etc. on my/our behalf.
b/nb RmfuUtht fUhth fUh;t nq/fUh;uni rfUcfUfuUmt: rfY stl uJttutul -=ul fuUmkck" bbuhe/
nbthe ytih muW; ........................................................................... tht rf Y dY gt rfY stl ufuU
rtY ;tvrg; mCe fUtgo-f]Ug YJkJt;ubuhu/nbthuWvh ctgfUthe ntude>
I/We hereby agree that all acts, deeds and things done or purported to be done by the
said ............................................... on my/our behalf in relation to any transaction with the Bank
will be binding on me/us.
gr= n\z;tt, ctJt, rmrJt yNtkr;, =ugf]U; simucfUfuUrl gktK muvhurfUne fUthKmuyl w=uN fUt
vttl l ne ntuvt;t ni RmfuUrtY cfUfUtuWth=tge l n Xnhtgt stYdt>
The bank will not be held responsible if the instructions could not be carried out for reasons
beyond the banks control such as strike, riots, civil commotion acts of Gods, etc.
CJ=eg/ Yours Faithfully
e/bummo................................................................ fuUl bwl t n;tGh
Specimen Signature of Mr./M/s. ....................................................
l tux - RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvg ntul ufUe r:r; bRmfUt bwt ykd{use vtX fUe
NOTE : In the event of any controversy arising out of Hindi version of this From, the original English text of it
will be treated as authoritative.
216
CHAPTER-10
SCHEDULE OF PLEDGE
(The illustrations given hereunder are meant to guide the filling in of the Schedule of
Securities, but in each case, where required, the description should be altered to conform
to the terms of the sanction of the credit lines).
(i) All stocks of motor cars spare parts, machinery, plant etc. wherever such stocks may
now or hereafter be situated including in particular such stocks stored in the premises/
warehouses/godowns situated any where in .....................................................................
............................................................................................................................................
(mention the name of the town)
and more particularly at .....................................................................................................
(complete in reference to A below)
or
(ii) All stocks of cotton, Kapas etc. wherever such stocks may now or hereafter be situated
including in particular such stocks stored in the premises/warehouses/godowns situated
anywhere in .................................................................................................................. and
more particularly at ............................................................................................................
or
(iii) All stocks of paints, varnish, enamel, turpentine, etc., wherever such stocks may now
or hereafter be situated including in particular such stocks stored in the premises/
warehouses/
godowns situated anywhere in ...........................................................................................
and more particularly at .....................................................................................................
(complete in reference to A belwo)
or
(iv) All stocks or paper, cardboard, etc., wherever such stocks may now or here-after be
situated including in particular such stocks stored in the premises/warehouses/godownns,
situated any where in ....................................................................................... and more
(mention the name of town)
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Particularly at ......................................................................................................................
(v) All stocks of various kinds of foodgrains, pulses, oilseeds, spices, kirana goods, sugar,
gur, khandsari sugar, ghee, vegetable ghee, oils, etc. wherever such stocks may now
or hereafter be situated including in partcular such stocks stored in the premises/
warehouses/godowns, situated anywhere in ............................................................ (mention
the name of town) and more particularly at ..............................................................
or
(vi) (Give herein, in the above manner, general description of any other type of goods or
commodities)
A (Give herein the name(s) of the street(s) with their municipal numbers and whether
the premises/warehouses/godown(s) etc., are pucca or kucha structures. And if
goods are stored in certain rooms only in a building consisting of many rooms,
parti cul ars of the rooms i n whi ch they are stored, for exampl e room,
no. ............................ and other marks and particulars for identification).
Note : Insert the following in the Schedule of Securities where applicable.
(a) including similar stocks covered by Bill of Lading
And/or
(b) including similar stocks covered by Railway Receipts and other documents
of title to goods.
This can only be inserted where goods lodged in an account are by
a Mercantile Agent (Refer Section 178 of the Indian Contract Act). In
other cases i.e., where advances to the owners of the goods covered
by railway receipts are to be allowed, Form A-20 has to be taken.
218
CHAPTER-10
A-7
The Manager, Date ............................
UCO BANK
........................................
Dear Sir,
As our joint Hindu family firm................................................................... will have/has dealings
with your Bank in the name of the said firm, we beg to say that the first signatory to this
letter, viz. .................................................. is the Karta of the joint family and other signatories
are the adult co-parceners of the said family. We all further confirm that the business of the
said joint family firm is carried on mainly by the the said Karta as also by the other signatories
hereto in the interest and for benefit of the entire body of co-parceners of the said joint
family. We all undertake that all claims due to the Bank from the said joint family firm shall
be recoverable personally from all or any of us and also from the entire family properties of
which the first signatory is the Karta, including the shares of the minor co-parceners.
Our said Karta or any of our other adult members is authorised to represent and sign on
behalf of the said joint family business in manner as appears below and has full unrestricted
authority to bind all the members of the joint family however Constituted from time to time.
In view of the fact that ours is not a firm governed by the Indian Partnership Act of 1932,
we have not got our said firm registered under the said Act.
We will sign on behalf of our Yours faithfully,
said firm as follows :
...............................................................
...............................................................
...............................................................
...............................................................
NOTE : In the event of any controversy arising out of Hindi version of this form, the original
219
CHAPTER-10
Y-7
ck"fU, r=l tkfU............................
gqfUtucfU
.............................................
rg bntu=g,
aqkrfUnbtht mkgw; rn=wvrhJth VUbo............................................................ytvfuUcfUfuUmt: W;
VUbofuUl tb btul -=ul fUh;t ni/fUh;t hnudt, y;&nb mt=h ytvfUtu/mqra; fUh;un rfURmvt fuU
:b n;tGhe gtl e....................................................mkgw; vrhJth fuUfU;ton ytih yg n;tGhe
W; vrhJth fuUJgfUmn=trgfUn>nb mCe ytduvwr fUh;un rfUW; mkgw; vrhJth fuUmCe
mn=trgfUtfuUrn; bytih Wl fuUttC fuUrtY W; mkgw; vrhJth VUbofUt fUthtuch bwg;&W; fU;to
;:t Rmvt fuUyg n;tGhe tht attgt st;t ni>nb mCe cal =u;un rfUW; mkgw; vrhJth
VUbotht cfUfUtu=ug mCe =tJunb mCe gt nbbumurfUme YfUmugr;d; v muytih yJgfU
mn=trgfUtfuUykN mrn; vrhJth fUe Wmvqhe mkvrt muJmqteg ntudt rsmfuU:b n;tGhe fU;ton>
nbthuW; fU;tofUtugt nbthurfUme yg JgfUm=g fUtuW; mkgw; vrhJth fUthtucth fUt r;rl r"J
fUhl uytih WmfUe ytuh murl l fUth mun;tGh fUhl ufuUrtY tr"f]U; rfUgt dgt ni ytih Wn,
g:tr:r;, mbg-mbg vh drX; rf Y stl uJttumkgw; vrhJth fuUmCe m=gtfUtuytc fUhl ufUt vqKo
yrl Jor"; tr"fUth ni>
aqkrfUnbtht VUboCth;eg Ctde=the yr"rl gb, 1932 muNtrm; l n ntu;t ni, y;&nbl uW; yr"rl gb
fuUy"el yvl uW; VUbofUt hrsx[efUhK l n fUhtgt ni>
nb yvl uW; VUbofUe ytuh mu CJ=eg,
rl l fUth mun;tGh fUhdu&
....................................................
....................................................
....................................................
....................................................
rxvKe&RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
220
CHAPTER-10
A-8
UCO BANK
AGREEMENT TO PLEDGE OF GOODS TO SECURE
A DEMAND CASH CREDIT/LOAN
No. .................................
Amount Rs. .......................................
Name .....................................................................................................................................................
UCO BANK, (hereinafter called the Bank) having at the request of .........................................
.....................................................................................................................................................
............................................................................................................................ (hereinafter called
the Borrowers ) opened or agreed to open i n the Books of the Bank
at ...................................................................................... a Cash Credit/Loan Account to the
extent of Rupees .............................................................................................................................
.................................................................................................................................... or any other
Account. In the name of the Borrowers to remain in force until closed by the Bank and to
be secured by goods to be pledged with the Bank. IT IS HEREBY AGREED between the
Bank and the Borrowers (the Borrowers agreeing jointly and severally) as follows :
1. That the Borrowers will deposit with the pledge in favour of the Bank the goods
(hereinafter referred to as the said goods described in general terms in the Schedule hereto
from time to time belonging to or coming into the possession or under the control of the
Borrowers and the said goods whether delivered to the Bank as aforesaid under this
Agreement for the purpose of forming addtional security for any sum already drawn or as
security for any sum or sums to be drawn against the said Cash Credit/Loan Account or by
way or substitution for and in lieu of any goods which may from time to time have been
delivered or may be delivered to the Bank under this Agreement or otherwise howsoever
shall be and stand as security to the Bank for the payment by the Borrowers of the balance
due to the Bank at any time or ultimately on the closing of the said Cash Credit/Loan Account
and for the payment of all debts and liabilities mentioned in the 17th Clause hereof. The
expression the balance due to the Bank in this and subsequent clause of this Agreement
shall be taken to include the principal moneys from time to time due on the said Cash Credit/
Loan Account and also interest thereon calculated from day to day at the rate hereinafter
mentioned and the amount of all costs, charges and expenses which may be incurred,
sustained or paid by the Bank or by its Agensts in connection with safeguarding the security
221
CHAPTER-10
created or to be created by the pledge of the said goods and/or realising or attempting to
realise the moneys thereby secured with interest thereon at the rate in the manner hereinafter
mentioned or in covering any type of insurance risk thereon including fire, burglary, riot and
civil commotion risk with interest from the time or respective times of payment thereof by
the Bank until repayment in full.
2. (a) That the said goods immediately on receipt thereof by the Borrowers shall
be delivered by way of pledge to the Bank or to the Agents of the Bank on behalf of the
Bank and shall be stored or kept in godown or godowns belonging to or rented by the Bank
or the Borrowers and from time to time approved by the Bank and not elsewhere and the
Borrowers will duly pay the rent of all godowns in which the said goods or any art of the
said goods may be stored in the event of any such godowns not belonging to the Borrowers
and will keep the same and its contents free from attachment.
(b) That in case the godown or godowns in which the said goods may from
time to time be stored or kept shall have no direct or independent access from any public
road or passage or if access thereto can be had only through any other building or passage
in the possession or control of the Borrowers or of a third party the Bank shall not be
responsible for any loss or damage whatsoever to the said goods stored therein or in any
portion thereof due to or arising from any cuase or reason whatsoever including theft, larceny,
house breaking, misappropriation, negligence conspiracy by any person or persons whatsoever
including the Banks employees and any such loss or damage shall be borne entirely by the
Borrowers. The Bank will have no responsibility if access to the godown or godowns is denied.
The amounts due to the Bank for the time being shall immediately become payable on
demand against release of such godown or godowns in whatsoever condition it/they may
then be and there will be no obligation on the part of the Bank whatsoever to deliver the
said goods lying in such godown or godowns to the borrowers or to place them in the
Borrowers possession.
3. That the Borrowers shall not during the continuance of the Agreement pledge or
otherwise charge or encumber, dispose of or deal with any of the said goods for the time
being the subject or intended to be the subject of this security nor do or permit any act
whereby the security hereinbefore expressed to be given to the Bank shall be in any wise
prejudicially affected.
4. That the Borrowers shall with the previous consent of the Bank be at liberty from
time to time to withdraw any of the said goods for the time being pledged to the Bank and
forming part of the security the subject of this Agreement provided the advance value of the
222
CHAPTER-10
said goods is paid into the said account or goods of similar nature to those mentioned in
the Schedule hereto, or any of the same of at least equal value, are substituted for the goods
so withdrawn Provided always that with the previous consent in writing of the time being
pledged to the Bank without paying into the said Account such advanced value as aforesaid
or substituting any goods as aforesaid provided the necessary margin required by the 8th
Clause hereof is fully maintained.
That the Bank shall in respect of the said goods have all the rights conferred by law
on a pawnee of goods and the Borrowers shall comply with all the directions of the Bank in
respect of the said goods and shall afford every facility with the view ot placing and keeping
the Bank in exclusive possession, custody and control of all the said goods as a pawnee
thereof and in such manner that such possession, custody and control of the Bank shall be
apparent and indisputable. And the Bank shall be entitled (inter alia) to exercise at its
discretion, though not bound to do so, all or any of the following powers namely :
(a) to affix to all premises in which the said goods or any part thereof shall be stored
or kept a notice or notices bearing the name of the Bank or to adopt such other means of
giving notice to the public of the Banks interest in the said goods as may be deemed fit by
the Bank;
(b) to appoint watchmen or any other persons at each of the said premises who shall
remain in possession of the said goods on behalf of the Bank and act solely under the Banks
orders;
(c) to maintain custody and control of the said goods in the said premises by means
of locks or padlocks to the doors thereof of which the key shall be kept by the Bank;
(d) to issue delivery orders whereby alone the said goods or any part thereof may
be removed from the said premises by the Borrowers for the purpose of manufacture, sale
or delivery in the due course of the business of the Borrowers subject to the provisions hereof.
(e) to place private marks or numbers of the Bank on any of the said goods.
That the Borrowers agree at their cost and on their account to the appointment by the
Bank of godown keepers and/or chowkidars or to the utilisation of the services of the Banks
godown keepers and/or chowkidars and in the alternative to the above or in addition there
to take out burglary insurance on goods charged or pledged to the Bank as may be agreed
to between the Borrowers and the Bank.
Failing one and/or the other of the above the Bank shall have the unfettered discretion
223
CHAPTER-10
though not bound to do so, to appoint godown keepers and/or chowkidars for the godown
or godowns charged or pledged to it and/or to take out burglary insurance on the goods
stored in such godown or godowns. The Bank shall have the power in all cases to debit the
salaries, wages, costs and charges of the godown keepers/chowkidars, premia on burglary
insurance or such other expenses in giving effect to the powers abovementioned. Whether
or not the Borrowers and failing them the Bank appoints godown keeper and/or chowkidars
and/or takes out burglary insurance on the goods charged or pledged to the Bank, it shall
be taken to be agreed by the Borrowers that the Bank will not be responsible or liable under
any circumstances and in any way for the safe custody of the said goods as the pledgee or
bialee and for any loss or damage to the said goods however arising including theft, larceny,
house breaking, misappropriation negligence or conspiracy by any person or persons including
Banks employees and such loss if any shall be borne by the Borrowers in full.
6. That the Borrowers shall at all times during the continuance of this Agreement
as their own expense insure and keep insured the said good to the full extent of their value
against loss or damage by fire, burglary, riot and civil commotion, and war riskswhere such
special type of insurance is considered necessary by the Banksolely in the name of the
Bank or the joint names of the Bank and the Borrowers under a policy or policies containing
the usual Bank Caluses and shall dulyand puctually pay the premia at least one week before
the same shall have become due and shall deliver the policy or policies of insurance and
receipt or receipts for premia paid in respect thereof to the Bank. If default shall be made
in effecting or renewing any policy or in payment of such premia or in keeping the said goods
so insured the Bank shall be at liberty in its discretion, without being bound to do so, to
insure the said goods for any of the aforesaid risks or renew any such insurance with any
Insurance Company for such sum or sums as the Bank may from time to time in its absolute
discretion consider fit and the expenses incurred by the Bank for the purpose shall be charged
to and payable by the Borrowers on demand with interest as provided in Clause 11 hereof,
and until repayment shall be a charge on all the said goods from time to time pledged with
the Bank. The Bank shall at no time be responsible to vary the amount of insurance effected
on any subsequent variation in the value of the security. The benefit of such insurance and/
or the rights, powers and privileges thereunder shall belong to the Bank without prejudice to
any other rights, powers and privileges which the Bank is entitled to by virtue of this
Agreement and the Bank shall not be accountable to the Borrowers for any money which it
may receive under such policy or policies. Further the Borrowers shall be liable for all charges
which are incurred by the Bank in the realisation of any insurance claim from any Insurance
Company and the correctness of the statement of charges rendered by the Bank will be
considered conclusive and final and will not be disputed or challenged by the Borrowers.
224
CHAPTER-10
7. That all sums received under any such Insurances as aforesaid shall be applied
in or towards the liquidation of the balance due to the Bank for the time being and in the
event of there being a surplus the same shall be applied as provided by the 15th Clause
hereof.
8. That the Borrowers shall make and furnish to the Bank such statements and
returns of the cost and market value of the said goods and a full description hereof and
produce such evidence in support thereof as the Bank may from time to time require and
shall maintain in favour of the Bank a margin of per cent or such margin as may from time
to time be fixed on the invoice/market value of the said goods whichever be lower or in
relation to any ceiling for the value of the said goods that may be fixed by the Bank from
time to time in its discretion. The stipulated margin shall be maintained by the Borrowers
either by the delivery of further security to be approved by the Bank or by cash payment by
the Borrowers immediately on the market value for the time being of the securities becoming
less than the agregate of the balance due to the Bank, plus the amount of the margin as
calculated above.
The Bank shall not in any case be under any liability towards the Borrowers or any
other person for any loss or damage to the said goods from whatever cause or in whatever
manner arising and in particular shall not be under any liability to the Borrowers in the event
of the Insurance Company or Companies with whom the said goods are for the time being
insured or any of such Insurance Company or Companies failing or refusing to pay the claims
under the policy or policies issued by them in respect of the goods for any cause or reason
whatsoever and notwithstanding that the insurance was taken out by the Bank in terms of
para 6 and that the failure or refusal by the Insurance Company or Companies of the claims
arises on account of any act or omission on the part of the Bank either in respect of the
proposal for insurance or in the making of the claim. The Borrowers shall reimburse the Bank
in respect of all costs, charges and expenses which the Bank may incur in making and
realising any claims against the Insurance Company or Companies.
The Borrowers shall at all time indemnify and keep indemnified the Bank from and
against all suits, proceedings, costs, charges, claims and demands whatsoever that may at
any time arise or be brought or made by any person against the Bank in respect of any
act, matters and things lawfully done or caused by the Bank in connection with the goods
or in pursuance of the rights and powers of the Bank under this Agreement.
The Bank shall be entitled without prior reference to and approval of the Borrowers to
adjust, settle, compromise or refer to arbitration any dispute with the Insurance Company or
225
CHAPTER-10
Companies arising under or in connection with the policy or policies or of Insurance and
such adjustment, settlement, compromise or the award made on such arbitration shall be
binding on the Borrowers and the Borrowers shall neither raise any objection that a sum
larger than the sum accepted or received by the bank might or ought to have received nor
be entitled to dispute their liability for the balance remaining due credit has been allowed for
the sum received in respect of the insurance.
9. That the Borrowers shall be responsible for the quantity and quality of the goods
pledged with the Bank and also for the correctness of Statement and Returns furnished by
them to the Bank from time to time as mentioned in Clause 8 above. The Borrowers have
assured the Bank that all information regarding the quantity, quality, etc., and other description
of the goods pledged with the Bank as given in the said Statements and Returns is or would
be correct and the Bank has advanced and agreed to advance moneys under the above
account on such representation. In case any of such Statements, Returns or representations
are found to contain any mistake. (of which fact the Bank shall be the sole judge) the Bank
shall be entitled to revoke this Agreement and dispose of the said goods, without any notice
to the Borrowers. The Bank shall be further entitled to inspect the Borrowers books or
documents containing entries or information regarding the quantity, quality and valuation of
or documents containing entries or information regarding the quantity, quality and valuation
of or dealing with the securities. The Borrowers also declare and agree that in order to verify
the quantity or quality of the goods pledged or the Statements and Returns furnished by
the Borrowers, the Bank shall be at liberty at any time, in its discretion to get goods weighed
counted and/or appraised at the expense of the Borrowers and the Borrowers agree to accept
as conclusive proof of the result of such weighment, counting and or appraisement as certified
by the authorised officer of the Bank. If, on such weighment, counting and/or appraisement
the goods pledged are found to be shorter or lesser than the weight, number and/or of inferior
quality or value to that given or shown by the Borrowers in their Statements or Returns, the
Borrowers undertake to make up the deficit on demand and to reimburse the Bank for all
loss, damage or expense incurred by the Bank on that account.
10. That during the continuance of this Agreement the Borrowers shall be responsible
for loss, damage, depreciation or deterioration of the said goods caused by theft, fire, riot,
civil commotion and or/that resulting from the goods or any part thereof having been acquired
or requisitioned by the Government under any order or statute and/or as a result of civil
disturbances, uprisings, insurrection and occupation by the military or by a foreign government.
The Bank shall in no way be responsible for loss or damage to the said goods or any part
thereof in the circumstances mentioned above nor shall it be its responsibility to make any
226
CHAPTER-10
application or to take any legal proceedings or to do anything else to get reimbursement
from the authorities concerned for the value of the goods acquired or requisitioned or for
compensation for any loss or damage to the said goods. The entire responsibility in this regard
shall vest in the Borrowers.
11. That interest at the rate of ....................% over Reserve Bank of India rate with
a minimum of ....................% per annum with ......................rests shall be calculated and
charged on the daily balance in the Banks favour due upon the said Cash Credit/Loan
Account until the same its fully liquidated and shall be paid by the Borrowers as and when
demanded by the Bank.
Provided that the liability to pay interest on the Balance of the Cash Credit/Loan Account
shall not cease notwithstanding.
(a) that the said goods have been destroyed or damaged by fire, burglary, riot
or civil commotion and that in consequence of such destruction or damage either the
Borrowers or the Bank have become entitled to receive payment from any Insurance Company
or Companies in respect of such loss or damage, or
(b) that the said goods or any part thereof has or have been acquired or
requistioned by Government under any order or Statute.
12. (a) That the Bank shall always have the right to stop making any further
advances in the account at any time without any previous notice and without assigning any
reason thereof even though the account is not drawn to the full extent of the limit provided
for by this agreement.
(b) On demand by the Bank the Borrowers shall pay to the Bank the balance
then due to the Bank on the said Cash Credit/Loan Account together with all further interest
at the rate above mentioned and the amount of all further charges and expenses to the
dates of payment provided that nothing herein in this clause contained shall be deemed to
prevent the Bank from demanding payment of the interest for the time being due at the above
mentioned rate without at the same time demanding payment of the balance due to the Bank
exclusive of such interest.
13. That if the Borrowers shall fail to maintain such margin as aforesaid or it the
Borrowers fail or neglect to repay to the Bank on demand the balance then due to the Bank
or in the event of the Borrowers becoming or being adjudicated Bankrupts or Insolvents or
executing any Deed of Agreement, Composition or Inspectorship or in the event of the
Borrowers whether the said property shall or shall not be the subject of this security or
227
CHAPTER-10
(whether the Borrowers are not a Joint Stock Company) in the event of any person, firm or
company taking steps towards applying for or obtaining an order for the appointment of a
Receiver of the Borrowers property or any part thereof or (in the event of the Borrowers
being a Joint Stock Company) if any person, firm or company shall apply for or obtain an
order for the winding up of the Borrowers or if any such order is made or any step be taken
by any person, firm or company in or towards passing any resolution to wind up the Borrower
or if any such resolution be passed whichever may first happen, it shall be lawful for the
Bank forthwith or at any time thereafter or/and without any notice to the Borrowers (without
prejudice to the Banks right of suit against the Borrowers) either by public auction or private
contract absolutely to sell or otherwise dispose of all or any of the said goods either together
of in lots or separately and to apply the net-proceeds of such sale in or towards the liquidation
of balance then due to the Bank.
14. That if net sum realised by such sale be insufficient to cover the balance then
due to the Bank, the Bank shall be at liberty to apply any other money or moneys in the
hands of the Bank standing to credit of or belonging to the Borrowers any one or more of
them in or towards payment of the balance for the time being due to the Bank and in the
event of there not being any such money or moneys as aforesaid in the hands of the Bank
or in the event of such money or moneys being still insufficient for the discharge in full of
such balance the Borrowers promise and agree fortwith on production to them of an account
to be prepared and signed as in the 17th Clause hereinafter provided to pay any further
balance which may appear to be due from the Borrowers thereon PROVIDED ALWAYS that
nothing therein contained shall be deemed to negative, qualify or otherwise prejudicially affect
the right of the Bank (which it is hereby expressly agreed the Bank shall have) to recover
from the Borrowers the balance for the time being remaining due from the Borrowers the
Bank upto the said Cash Credit/Loan Account nowithstandings that all or any of the said
goods may not have been sold and the proceeds realised.
15. That in the event of there being surplus available of the net proceeds of such
sale after payment in full of the balance due to the Bank in the Cash Credit/Loan Account,
it shall be lawful for the Bank to remain and apply the said surplus together with any other
money or moneys belonging to the Borrowers or any one or more of them for the time being
in the hands of the Bank in or under whatever account as far as the same shall extend
against in or towards payment or liquidation or any and all other moneys which shall be or
may become due from the Borrowers or any one or more of them whether solely or jointly
with any other person or persons, firm or company to the Bank by way of Loans, Discounted
Bills, Letters of Credit, Guarantees, charges or of any other debt or liability including Bills,
228
CHAPTER-10
Notes, Credits and other obligations current though not then due or payable or other demands
legal or equitable which the Bank may have against the Borrowers or any one or more of
them or which the law of set-off or mutual credit would in any case admit and whether the
Borrowers or anyone or more of them shall become or be adjudicated Bankrupt or Insolvent
or be in liquidation or otherwise and interest hereon from the date on which any and all
advance or advances in respect thereof shall have been made at the rate or respective rates
at which the same shall have been so proceed.
16. The Borrowers hereby agree and undertake to comply with all the provisions of
the various control, licencing and procurement orders already promulgated or that may be
promulgated hereinafter by the Government and shall see that the Banks interests are not
in any way affected or prejudiced by violating or infringing the provisions thereof. The
Borrowers shall submit statements, returns and declarations in respect of stocks held by them
as and when required and the form and manner prescribed by the Government in the various
Control Orders will hand over the statements/returns/delcarations to the Bank to enable them
to prepare their own statements/returns/declarations as regards the stock so pledged. The
stocks will be liquidated also in terms of the orders aforesaid.
17. The Borrowers agree to accept as conclusive proof of the correctness of any sum
claimed to be due from them to the Bank under this Agreement a statement of account
made out from the Books of the Bank and signed by the Manager or other duly authorised
officer of the Bank without the production of any voucher, document or paper whatsoever.
18. The Borrowers hereby declare that all the goods which may be pledged with the
Bank from time to time shall be absolute property of the Borrowers and at their sole disposal
free from any prior charge or encumbrance and that the Borrowers shall not have knowingly
suffered or being party or privy to anything whereby they are in any way prevented from
pledging the goods in manner aforesaid.
19. That this Agreement is to operate as Security for the balance from time to time
due to the Bank and also for the ultimate balance to become due on the said Cash Credit/
Loan Account and the said account is not to be considered to be closed for the purpose of
this Security and the Security is not to be considered exhausted by reason of the said Cash
Credit/Loan Account being brought to credit at any time or from time to time or of its being
drawn upon to the full extent of the said sum of Rs. ........................................
(Rupees ........................................................................................) if aforesaid reopened by a
payment to credit, or by reasons of the Borrowers being allowed at the discretion of the
Bank advances in the said Cash Credit/Loan Account beyond the sanctioned limit.
229
CHAPTER-10
20. That in the event of the accommodation so granted not being availed of to the
minimum extent of Rs. ............................ (Rupees ....................................................................)
interest shall be charged to and be paid by the said Borrowers at the rate and in the manner
aforesaid on the minimum sum of Rs. ............................... during the continuance of the said
Cash credit Account, whether the same is in debit or not.
21. That the Bank shall be entitled to and make half-yearly a charge to the account
to cover incidental expenses in connection therewith. The amount of such charge will be
determined by and shall be in the discretion of the Manager and will depend upon the
operation and turnover of the account.
22. PROVIDED ALWAYS that this Agreement is not to prejudice the right or remedies
of the Bank against the Borrowers irrespective and independent or the Agrement in respect
of any other advances made or to be made by the Bank or the Borrowers.
23. In case the Borrowers shall be firm or members of a firm no change whatsoever
in the constitution of such firm during the continuance of this Agreement shall impair or
discharge the liability of the Borrowers or any one or more of them thereunder.
24. The security hereby given shall not be prejudiced by any collateral or other security
including any personal guarantee nor or hereafter held by the Bank for any money hereby
secured or by any release, exchange or variation of any such seucrity.
25. Any demand hereunder may effectually be made by parole notice to the Borrowers
by an office of the Bank or by notice in writing under the hand of any such officer either
served personally on the Borrowers or left or sent by post to the Borrowers at the Borrowers
usual or last known place of business.
IN WITNESS WHEREOF the Borrowers have hereunto set thei r hands thi s
................................................. day of ...................................... 20 .
(Signature of Borrower)
SCHEDULE OF SECURITIES REFERRED
TO IN THE FOREGOING INSTRUMENT
(Signature of Borrowers)
230
CHAPTER-10
Y-SY
A-SA
r;Cqr; fuUv byr;rh; mkvrt mrn; }UK mebt/mwrJ"t b
J]r fUhlufuUrtYbtt fUturdhJehFlunu;wvqhfUfUhthfUt VUtbo
FORM OF SUPPLEMENTAL AGREEMENT TO PLEDGE OF GOODS
FOR INCREASE IN LIMITJFACILITY FOR
ADDITIONAL PROPERTY AS SECURITY
gn fUhthyts JMo20 .......... fuU..................................... bnel ufuU..........................................r=l
fUtuYfUytuhe/eb;e/fwUbthe/bummo...............................................................................................
(rsmuRmbRmfuUvat;TIIW"thfU;toOOfUnt dgt ni ytihRmyrCgr; bsc;fUmk=Cotht yvJrso; gt
WmfuUrJh l ntu;c;fURmbWmfuUrl vt=fUYJkmbl w=urN;e/WmfuU/Wl fuUJtrhm, rl vt=fU, NtmfU, rJr"fU
r;rl r", Wthtr"fUtheYJkmbl w=urN;eNtrbt mbSustYkdu) ytih=qmheytuhgqfUtucfUfuUcea, stucfUfUthe
rJr" (mkNtu"l ) yr"rl gb, 198S tht g:tmkNtur"; cfUfUthefkUvl e(Wvf{btfUt yr"d{nK ytihyk;hK)
yr"rl gb, 1970 fuUy"el drX; YfUrl drb; rl fUtg ni ;:t rsmfUt "tl fUtgtotg 10, rJ. ti. b. mhKe,
fUtutfUt;t bYJkNtFt fUtgtotg yg :tl tfuUyttJt.............................................................. b
ni (rsmuRmbRmfuUvat;TIIcfUOOfUnt dgt ni ytihRmyrCgr; bsc;fUmk=Cotht yvJrso; gt WmfuU
rJh l ntu;c;fUWmbWmfuUWthtr"fUtheYJkmbl w=urN;eNtrbt mbSustYkdu), rl vtr=; rfUgt st;t ni>
This AGREENENT made this .......................................... day of .......................... 20 ........
BETWEEN Nr.fNrs.fNissfNfs. ...................................................................................................
(hereinafter called ''the borrower'' which expression shall unless excluded by or repugnant
to the context be deemed to include its executors and assignsfhisfherftheir heirs, executors,
administrators, legal representatives, successors and assigns) of the One Part and UCO BANK,
a body Corporate constituted under the Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970 as amended by the Banking Laws (Amendment) Act, 198S and
having its Head Office at No. 10, B.T.N. Sarani, Kolkata and a Branch Office amongst other
places at ............................................................................... (hereinafter called ''the Bank'',
which expression shall unless excluded by or repugnant to the context be deemed to include
its successors and assigns) of the Other Part.
aqkrfUcfUtht W"thfU;tofUtuh. ....................... (hvgu....................................................................)
fUemebt ;fUl fU=e}UK/}UK mwrJ"t fuUv bmtifUgobksqhrf Y stl uytih/gt bksqhrf Y stl ufuUrtY mnb;
ntul ufuUr;VUtJv W"thfU;tol ucfUfuUvGbJMo........... fuU........................................ bnel u
fuU...................................... r=l fUtubtt fUturdhJehFl umkck"efUhth(rsmuRmbRmfuUvat;TIIrdhJe
231
CHAPTER-10
hFudY btt fUt bqt rJtuFOOfUnt dgt ni) rl vtr=; fUhfuUrdhJehFudY btt fuUbqt rJtuF b(rsmuRmb
RmfuUvat;TIIrdhJehFudYbttOOfUnt dgt ni) g:tWrtrF; yvl umCeJ;obtl YJkCtJextpfU;:t skdb
mkvrt fUtubqt"l , gts, ttd;, CthYJkFaomrn; cfUfuUvtmfuUyvl uW; l fU=e}UK/}UK Ft;ubcfU
fUtu;mbg =ug NuMfUemgfTUv muawfUti;ecfUfUtufUhl ufuUrtY r;Cqr; fuUv bcfUfUtuytihWmfuU
vGbrdhJehFt ni>
WHEREAS by an Agreement to Pledge of Goods dated, the ..................................................
day of ..................................................... executed by the borrower in favour of the Bank
(hereinafter called ``the Principal Deed of Pledged Goods'') the borrower in consideration of
the Bank having granted andfor agreed to grant to the borrower accommodation by way
of Cash Credi tfLoan faci l i ti es to the extent of Rs. .....................
(Rupees ................................................) pledged to and in favour of the Bank all the present
and future stocks and movables of the borrower as mentioned in the Principal Deed of
Pledged Goods (hereinafter called ''pledged goods'') as security for due repayment by the
borrower to the Bank of the balance for the time being due to the Bank in the said cash
creditfloan account of the borrower with the Bank inclusive of principal, interest, costs, charges
and expenses.
ytihaqkrfUW"thfU;tol ucfUmul fU=e}UK/}UK mwrJ"tytfUerJ btl mebt fUtuh....................................
muc\ZtfUhh.................................. fUhl ufUt yr;rh; mtifUgobksqhfUhl ufUt yl whtu" rfUgt ni rsmucfU,
yg ct;tfuUmt:-mt:, RmbRmfuUvat;TWrtrF; rl ck"l YJkN;tuvh;:t W"thfU;totht Rmct; fUt
fUhth rf Y stl uvh bksqh fUhl ufuUrtY mnb; nwyt ni rfUrdhJe hFudY btt l fuUJt
h............................................... (hvgu......................................................................) fUerJ btl
mebt crfUg:tWvrhrtrF; h. .............................. fUeJr"o; mebt fuUrtY, rsmubksqhfUhl ufUemnbr;
=edRoni ;:t RmbRmfuUvat;TWrtrF; mCegts, ttd;, CthYJkFaoytihyg "l fuUrtY Ce,
r;Cqr; ntdu>
AND WHEREAS the borrower has requested the Bank to grant to the borrower further
accommodation by way of cash creditfloan facilities by enhancing the existing limit thereof
from Rs. ....................... to Rs. ....................... which the Bank has agreed to do on the
terms and conditions, inter alia, as hereinafter appearing and on the borrower agreeing that
the pledged goods shall constitute security not only for the existing limit of Rs. ........................
(Rupees ................................................) but al so for the enhanced li mi t of
Rs. ............................ agreed to be granted, as aforesaid and all interests, costs, charges
and expenses and other monies, as hereinafter mentioned.
232
CHAPTER-10
yc gnrJtuF gnmtrG; fUh;t nirfUW; fUhthfuUyl wmhK bcfUtht l fU=e}UK/}UK mwrJ"tytfUe
yr"fU;b mebt fUtuh. ............................. muc\ZtfUhh.................................. rf Y stl ufuUv b
W"thfU;tofUtuyr;rh; mtifUgobksqhrf Y stl uytih/gt bksqhrf Y stl ufuUrtY mnb; ntul ufuUr;VUtJv
W"thfU;toRmfuUtht fUhthfUh;t ni rfUgn fUhthrdhJehFudY btt fuUbqt rJtuF fUt vqhfUntudt ytihgn
rfUW"thfU;toRmfuUtht RmfUeyl wmqaebWrtrF; btt fUtucfUfuUvGb:b CthfuUv brdhJehF;t
ni rsmbW"thfU;tofuUmCeWvt=, btt YJkrfUmefUthfUeYumeskdb mkvrt Ntrbt ntudersmuyCegt RmfuU
vat;TRmr;Cq r; fu Usthehnl ufu U=tihtl mbg-mbg vhW"thfU;tofu U......................................................
r:; vrhmhgt dtu=tb bttgt stY, xtuhrfUgt stY gt Wmbgt WmfuUytmvtmgt fUnCeW"thfU;totht
rfUmembg gt yk;;&W; l fU=e}UK/}UK Ft;ufuUck=rfY stl uvhcfUfUtu=ug NuMfuUCwd;tl fuUrtY
r;Cqr; fuUv bhFt stY ytihgnrfURmbIIcfUfUtu=ug NuMOOyrCgr; muJneyrCu; ntudt simt rdhJe
hFudY btt fuUbqt rJtuF byk;rJo ni ytihrdhJehFudY btt fuUbqt rJtuF fuUy"el Ctrh; rdhJehFu
dY btt h............................ fUefwUt }UK mebt mrn; W; Jr"o; mwrJ"tytfuUrtY ;:t W"thfU;totht
cfUfUtur=Y stl uJttumCebqt"l YJkrdhJehFudY btt fuUbqt rJtuF brJrl r=o =hvhgt cfUtht
W"thfU;tofUtumbg-mbg vhmqra; fUestl uJtteyg =hgt =htvhgts mrn; Cwd;tl fuUrtY ;:t rdhJe
hFudY btt fuUbqt rJtuF tht gt RmrJtuF tht m]rs; r;Cqr; fuUvrhGK, mkhGK, r;hGt gt rl vt=l
nu;wCwd;tl fUe;theF ;fUcfUtht Wvd; ttd;, CthYJkFaofuUrtY Ce:b CthfuUv bcfUfuU
vGbr;Cqr; ntduytihrdhJehFudY btt fuUbqt rJtuF fUt gn y:otdtgt stYdt YJkgn mbSt stYdt
btl tuWmbWrtrF; yr"fU;b }UK mebt h................................ fuUc=tuh. ................................
ni ytih gn rfUrdhJe hFudY btt fuUbqt rJtuF bfUn Ce fUx ntul uJttuN=YJkykfU
II(hvgu...................................................) h. ......................................OORmfUthN=YJkykfU
II(hvgu...................................................................) h. .........................................................OO
tht r;:trv; rf Y stYkdubtl tuJuWmbbqt;&rtFudY ntytihgnrfUsimt yrCg; v muQvh
Wvtk;rh; rfUgt dgt ni WmfuUrmJtg, rdhJehFudY btt fuUbqt rJtuF bg:tWvJrKo; YJkg:tyk;rJo mCe
rl ck"l YJkN;uvqhe;hn J]t YJkCtJentde>
NOW THIS DEED WITNESSES that pursuant to the said Agreement and in consideration of
the Bank having granted andfor agreed to grant further accommodation to the borrower by
way of cash creditfloan facilities by enhancing the maximum limit thereof from
Rs. ...................... to Rs. ............................ the borrower hereby agrees that this Agreement
shall be supplemental to the Principal Deed of Pledged Goods. AND THAT the borrower
hereby pledges by way of First Charge in favour of the Bank the goods described in the
Schedule hereto which shall include all products, goods and movable property of any kind
belonging to the borrower which now or hereafter from time to time during this security
shall be brought in, stored or be in or about the borrower's premises or godowns
at ........................................................................... or wherever else the same may be as
233
CHAPTER-10
security for the payment by the borrower to the Bank, of the balance due to the Bank at
any time or ultimately on the closing of the said cash creditfloan Account AND THAT the
expression ''the balance due to the Bank'' herein shall have the same meaning as contained
in the Principal Deed of Pledged Goods AND the pledged goods charged under the Principal
Deed of Pledged Goods shall constitute security in favour of the Bank by way of First Charge
for the said enhanced facilities with the aggregate limit of Rs. ......................... and for
payment by the borrower to the Bank of all principal monies together with interest at the
rate specified in the Principal Deed of Pledged Goods or at such other rate or rates, as the
Bank may notify to the borrower from time to time and also of costs, charges and expenses
incurred by the Bank to the date of payment, for the preservation, protection, defence or
perfection of the security created by the Principal Deed of Pledged Goods or by these presents
and the Principal Deed of Pledged Goods shall be read and construed as if the maximum
limit mentioned therein is Rs. ..................... in place instead of Rs. ..................... AND THAT
the words and figures ``(Rupees ...........................................) Rs. ..........................'' wherever
appearing in the Principal Deed of Pledged Goods shall be substituted by the words and
figures ``(Rupees....................................................................) Rs. ............................'' as if
the same were originally written therein AND THAT save as expressly modified as aforesaid
all the terms and conditions set out and contained in the Principal Deed of Pledged Goods
shall remain in full force and effect.
Qvhrlr=o ylwmqae&
THE SCHEDULE ABOVE REFERRED TO :
................................................................................................................................
................................................................................................................................
................................................................................................................................
RmfUemtGefuUv bW"thfU;tol uRmrJtuF fUtuWvrhrtrF; r=l , btn YJkJMobrl vtr=; rfUgt ni>
IN WITNESSES WHEREOF the borrower has executed these presents, the day, month and
l tux &RmVUtbofuUrn=evtX murfUmefUthfuUJt=-rJJt=fuUWvl ntul ufUer:r; bRmfUt bqt ykd{use
vtX netr"f]U; btl t stYdt>
Note : In case of any controversy arising out of Hindi version of this Form, the original English
version of it will be treated as authoritative.
234
CHAPTER-10
Y-Sce
A-SB
r;Cqr; fuUv byr;rh; mkvrt fuUrclt }UK mebt/mwrJ"t b
J]r fUhlufuUrtYbtt fUturdhJehFlunu;wvqhfUfUhthfUt VUtbo
FORM OF SUPPLEMENTAL AGREEMENT TO PLEDGE OF GOODS
FOR INCREASE IN LIMITJFACILITY WITHOUT
ADDITIONAL PROPERTY AS SECURITY
gn fUhthyts JMo20 .......... fuU..................................... bnel ufuU..........................................r=l
fUtuYfUytuhe/eb;e/fwUbthe/bummo...............................................................................................
(rsmuRmbRmfuUvat;TIIW"thfU;toOOfUnt dgt ni ytihRmyrCgr; bsc;fUmk=Cotht yvJrso; gt
WmfuUrJh l ntu;c;fURmbWmfuUrl vt=fUYJkmbl w=urN;e/WmfuU/Wl fuUJtrhm, rl vt=fU, NtmfU, rJr"fU
r;rl r", Wthtr"fUtheYJkmbl w=urN;eNtrbt mbSustYkdu) ytih=qmheytuhgqfUtucfUfuUcea, stucfUfUthe
rJr" (mkNtu"l ) yr"rl gb, 198S tht g:tmkNtur"; cfUfUthefkUvl e(Wvf{btfUt yr"d{nK ytihyk;hK)
yr"rl gb, 1970 fuUy"el drX; YfUrl drb; rl fUtg ni ;:t rsmfUt "tl fUtgtotg 10, rJ. ti. b. mhKe,
fUtutfUt;t bYJkNtFt fUtgtotg yg :tl tfuUyttJt.............................................................. b
ni (rsmuRmbRmfuUvat;TIIcfUOOfUnt dgt ni ytihRmyrCgr; bsc;fUmk=Cotht yvJrso; gt WmfuU
rJh l ntu;c;fURmbWmfuUWthtr"fUtheYJkmbl w=urN;eNtrbt mbSustYkdu), rl vtr=; rfUgt st;t ni>
This AGREENENT made this .......................................... day of .......................... 20 ........
BETWEEN Nr.fNrs.fNissfNfs. ...................................................................................................
(hereinafter called ''the borrower'' which expression shall unless excluded by or repugnant
to the context be deemed to include its executors and assignsfhisfherftheir heirs, executors,
administrators, legal representatives, successors and assigns) of the One Part and UCO BANK,
a body Corporate constituted under the Banking Companies (Acquisition & Transfer of
Undertakings) Act, 1970 as amended by the Banking Laws (Amendment) Act, 198S and
having its Head Office at No. 10, B.T.N. Sarani, Kolkata and a Branch Office amongst other
places at ............................................................................... (hereinafter called ''the Bank'',
its successors and assigns) of the Other Part.
aqkrfUcfUtht W"thfU;tofUtuh. ....................... (hvgu....................................................................)
fUemebt ;fUl fU=e}UK/}UK mwrJ"t fuUv bmtifUgobksqhrf Y stl uytih/gt rf Y stl ufuUrtY mnb; ntul u
fuUr;VUtJv W"thfU;tol ucfUfuUvGbJMo................. fuU........................................ bnel u
235
CHAPTER-10
fuU...................................... r=l fUtubtt fUturdhJehFl umkck"efUhth(rsmuRmbRmfuUvat;TIIrdhJe
hFudY btt fUt bqt rJtuFOOfUnt dgt ni) rl vtr=; fUhfuUrdhJehFudY btt fuUbqt rJtuF b(rsmuRmb
RmfuUvat;TIIrdhJehFudYbttOOfUnt dgt ni) g:tWrtrF; yvl umCeJ;obtl YJkCtJextpfU;:t skdb
mkvrt fUtubqt"l , gts, ttd;, CthYJkFaomrn; cfUfuUvtmfuUyvl uW; l fU=e}UK/}UK Ft;ubcfU
fUtu;mbg =ug NuMfUemgfTUv muawfUti;ecfUfUtufUhl ufuUrtY r;Cqr; fuUv bcfUfUtuytihWmfuU
vGbrdhJehFt ni>
WHEREAS by an Agreement to Pledge of Goods dated, the ..................................................
day of ..................................................... executed by the borrower in favour of the Bank
(hereinafter called ``the Principal Deed of Pledged Goods'') the borrower in consideration of
the Bank having granted andfor agreed to grant to the borrower accommodation by way
of Cash Credi tfLoan faci l i ti es to the extent of Rs. ............................
(Rupees .............................................) pledged to and in favour of the Bank all the present
and future stocks and movables of the borrower as mentioned in the Principal Deed of
Pledged Goods (hereinafter called ''pledged goods'') as security for due repayment by the
borrower to the Bank of the balance for the time being due to the Bank in the said cash
creditfloan account of the borrower with the Bank inclusive of principal, interest, costs, charges
and expenses.
ytihaqkrfUW"thfU;tol ucfUmul fU=e}UK/}UK mwrJ"tytfUerJ btl mebt fUtuh....................................
muc\ZtfUhh.................................. fUhl ufUt yr;rh; mtifUgobksqhfUhl ufUt yl whtu" rfUgt ni rsmucfU,
yg ct;tfuUmt:-mt:, RmbRmfuUvat;TWrtrF; rl ck"l YJkN;tuvh;:t W"thfU;totht Rmct; fUt
fUhth rf Y stl uvh bksqh fUhl ufuUrtY mnb; nwyt ni rfUrdhJe hFudY btt l fuUJt
h............................................... (hvgu......................................................................) fUerJ btl
mebt crfUg:tWvrhrtrF; h. .............................. fUeJr"o; mebt fuUrtY, rsmubksqhfUhl ufUemnbr;
=edRoni ;:t RmbRmfuUvat;TWrtrF; mCegts, ttd;, CthYJkFaoytihyg "l fuUrtY Ce,
r;Cqr; ntdu>
AND WHEREAS the borrower has requested the Bank to grant to the borrower further
accommodation by way of cash creditfloan facilities by enhancing the existing limit thereof
from Rs. ....................... to Rs. ....................... which the Bank has agreed to do on the
terms and conditions, inter alia, as hereinafter appearing and on the borrower agreeing that
the pledged goods shall constitute security not only for the existing limit of Rs. ........................
(Rupees ............................................) but also for the enhanced limit of Rs. ............................
agreed to be granted, as aforesaid and all interests, costs, charges and expenses and other
monies, as hereinafter mentioned.
236
CHAPTER-10
yc gnrJtuF gnmtrG; fUh;t nirfUW; fUhthfuUyl wmhK bcfUtht l fU=e}UK/}UK mwrJ"tytfUe
yr"fU;b mebt fUtuh.............................. muc\ZtfUhh.................................. rf Y stl ufuUv b
W"thfU;tofUtuyr;rh; mtifUgobksqhrf Y stl uytih/gt bksqhrf Y stl ufuUrtY mnb; ntul ufuUr;VUtJv
W"thfU;toRmfuUtht fUhthfUh;t ni rfUgn fUhthrdhJehFudY btt fuUbqt rJtuF fUt vqhfUntudt ytihrdhJe
hFudY btt fuUbqt rJtuF fuUy"el Ctrh; rdhJehFudY btt h. ........................... fUefwUt }UK mebt
mrn; W; Jr"o; mwrJ"tytfuUrtY ;:t W"thfU;totht cfUfUtur=Y stl uJttumCebqt"l YJkrdhJehFu
dY btt fuUbqt rJtuF brJrl r=o =hvhgt cfUtht W"thfU;tofUtumbg-mbg vhmqra; fUestl uJtteyg
=hgt =htvhgts mrn; Cwd;tl fuUrtY ;:t rdhJehFudY btt fuUbqt rJtuF tht m]rs; r;Cqr; fuU
vrhhGK, mkhGK, r;hGt gt rl vt=l nu;wCwd;tl fUe;theF ;fUcfUtht Wvd; ttd;, CthYJkFaofuU
rtY Ce:b CthfuUv bcfUfuUvGbr;Cqr; ntduytihrdhJehFudY btt fuUbqt rJtuF fUt gn
y:otdtgt stYdt YJkgn mbSt stYdt btl tuWmbWrtrF; yr"fU;b } U K mebt
h............................................ fuUc=tuh. .......................................... ni ytihgnrfUrdhJehFu
dY btt f uU bqt rJtuF b f Un Ce f Ux ntul uJttu N= YJk ykf U
II(hvgu.....................................................................) h....................................OORmfUthN=
YJkyk fUII(hvgu..................................................................) h.............................OOtht r;:trv;
rf Y stYkdubtl tuJuWmbbqt;&rtFudY ntytihgnrfUsimt yrCgr; v muQvhWvtk;rh; rfUgt dgt
ni WmfuUrmJtg, rdhJehFudY btt fuUbqt rJtuF bg:tWvJrKo; YJkg:tyk;rJo mCerl ck"l YJkN;uvqhe
;hn J]t YJkCtJentde>
NOW THIS DEED WITNESSES that pursuant to the said Agreement and in consideration of
the Bank having granted andfor agreed to grant further accommodation to the borrower by
way of cash creditfloan facilities by enhancing the maximum limit thereof from
Rs. ...................... to Rs. ............................ the borrower hereby agrees that this Agreement
shall be supplemental to the Principal Deed of Pledged Goods and the pledged goods charged
under the Principal Deed of Pledged Goods shall constitute security in favour of the Bank
by way of First Charge for the said enhanced facilities with the aggregate limit of
Rs. ......................... and for payment by the borrower to the Bank of all principal monies
together with interest at the rate specified in the Principal Deed of Pledged Goods or at such
other rate or rates, as the Bank may notify to the borrower from time to time and also of
costs, charges and expenses incurred by the Bank to the date of payment, for the preservation,
protection, defence or perfection of the security created by the Principal Deed of Pledged
Goods and the Principal Deed of Pledged Goods shall be read and construed as if the
maxi mum l i mi t menti oned therei n i s Rs. ..................... i n pl ace i nstead of
Rs. ............................... AND THAT the words and fi gures
237
CHAPTER-10
``(Rupees ............................................) Rs. ..........................'' wherever appearing in the
Principal Deed of Pledged Goods shall be substituted by the words and figures
``(Rs. ............................) Rs. ............................'' as if the same were originally written therein
AND THAT save as expressly modified as aforesaid all the other terms and conditions set
out and contained in the Principal Deed of Pledged Goods shall remain in full force and
effect.
RmfUemtGefuUv bW"thfU;tol uRmrJtuF fUtuWvrhrtrF; r=l , btn YJkJMobrl vtr=; rfUgt ni>
IN WITNESSES WHEREOF the borrower has executed these presents, the day, month and
l tux &RmVUtbofuUrn=evtX murfUmefUthfuUJt=-rJJt=fuUWvl ntul ufUer:r; bRmfUt bqt ykd{use
vtX netr"f]U; btl t stYdt>
Note : In case of any controversy arising out of Hindi version of this Form, the original English
version of it will be treated as authoritative.
238
CHAPTER-10
Y/ A 9
gq fUtucf UCO BANK
btkd lfU= }UK fUtumkhrG; fUhlufuUrtY J;wytfUtu=]rck"fUfUhlt
HYPOTHECATION OF GOODS TO SECURE A DEMAND CASH CREDIT
mk......................................... htrN h............................................
No. Amount Rs.
l tb...................................................................................................................................................
Name
gq fUtucfUl u(rsmuRmbRmfu Uvat;TIIcfUOOfUnt stYdt)............................................................
...................................................................................................................................................... fu U
yl whtu" vh (rsnRmbRmfuUvat;TIIW"thfU;toOOfUnt stYdt) cfUfUe crngtb.....................
............................................................................................................................ bYfUl fU=e}UK
Ft;t..................................................................................................................................................
...................................................................... hvgufUe }UK mebt fuUrtY W"thfU;tofuUl tb mu
Ftutt ni gt Ftutl ufUe mnbr; =e ni stu;c ;fUJ]t hnudt sc ;fUcfUtht c= l n rfUgt
st;t, mt: ne WmucfUfuUvtm=]rck"fUfUe dRoJ;wyttht mkhrG; rfUgt stYdt>cfUytih
W"thfU;tofuUcea (W"thfU;tomkgw;<ytih v]:fU;&mnb; n) Y;=Ttht rl l fUth mumnbr; nwRo&
UCO Bank (hereinafter called the Bank) having at the request of ......................................
......................................................................................................................................................
(hereinafter called the Borrowers) opened or agreed to open in the Books of the Bank
at ............................................................................................................................... a Cash Credit
Account to the extent of Rupees ................................................................................................
.......................................................................................................................................................
with the Borrowers to remain in force until closed by the Bank and to be secured by goods
to be hypothecated with the Bank, it is hereby agreed between the Bank and the Borrowers
(Borrowers agreeing jointly and severally) as follows :
1. W"thfU;toY;=Ttht yl wmqae bmtbtg N=tbJrKo; J;wyt(rsnRmbRmfuUvat;T
I=]rck"fUJ;wYOfUnt dgt ni) fUtucfUfuUvG b=]rck"fUfUh;un<I=]rck"fUJ;wYON= b
W"thfU;tofuUJumthuWvt=, btt YJkmCefUth fUe at mkvrt mrbrt; n stuRmr;Cqr; fuU=tihtl
W"thfU;tofuU.....................................................................................................................................
r:; vrhmh gt dtu=tb byCe gt RmbRmfuUvat;Tmbg-mbg vh ttY stYkdu, mkd]ne; rfY stYkdu
239
CHAPTER-10
gt WmbWmfuUytm-vtmntdugt fUn ytih ntdu;:t JuW"thfU;tofuUgntkcfUfUe rfUme Ce mbg
gt W; l fU=}UK Ft;ufuUck=rfY stl ufuUmbg cfUtgt htrN fuUCwd;tl fuUrtY ytih RmfuUFkz
13 bWrrF; mCe }UKtYJk=ug;tytfuUCwd;tl fuUrtY r;Cqr; fuUv bhFustYkdu>RmfUhth
bYJkWmfuUWthJseoFkz bIcfUfUe cfUtgt hfUbOyrCgr; bW; l fU= }UK Ft;uvh mbg-
mbg vh cfUtgt bqt"l YJkWmvh gts, stuRmbRmfuUvat;TWrrF; =h vh htus-htus vrhfUrt;
rfUgt stYdt ytih JumCe Cth YJkFaomrbrt; n rsncfU=]rck"fUfUe dRoJ;wytfuUmkck"
bgt Wl fUe rcf{e gt rl vxtl fUhl uvh gt Wmvh rfUme fUth fUe cebt sturFb fUtufUJh fUhl uvh,
rsmbytd, atuhe, ctJt ytih rmrJt yNtkr; Ntrbt n, Wvd; fUh;t ni gt Wl fUt Cwd;tl fUh;t ni>
The Borrowers hereby hypothecate in favour of the Bank the goods described in
general terms in the Schedule (hereinafter referred to as the hypothecated goods) which
expression shall include all products, goods and moveable property of anykind belonging to
the Borrowers which now or hereinafter from time to time during this security shall be brought
in, stored or be in or about the Borrowers premises or godowns at ......................................
........................................................................................................................................................
or wherever else the same may be as security for the payment by the Borrowers to the
Bank of the balance due to the Bank at any time or ultimately on the closing of the said
Cash Credit Account and for the payment of all debts and liabilities mentioned in the 13th
Clause hereof. The expresseion the balance due to the Bank in this and the subsequent
Clause of this Agreement shall be taken to include the principal moneys from time to time
due on the said Cash Credit Account and also all interest thereon calculated from day to
day at the rate hereinafter mentioned and the amount of all charges and expenses which
the Bank may have paid or incurred in any way in connection with the hypothecated goods
or the sale or disposal thereof or in covering any type of insurance risk thereon including
fire, burglary and riot and civil commotion risks.
2. gn rfU=]r ck"fUfUe dRoJ;wYkytih Wl fUe rcf{e, Jmqte YJkcebt mutt mCe ytg
fUtucfUfUe yl g mkvrt fuUv bRmr;Cq; fuUmt: rJNuMv murJrl gturs; fUhfuUhFt stYdt
ytih W"thfU;tol ;tuWl fUtugt Wl fuUrfUme Ctd fUtuCtrJ; fUhl uJttt fUtuRock"fU, Cth, rtgl gt
}UKCth rl rbo; fUhudt ytih l ne Yumt fUtuRofUtgofUhudt stuRmr;Cqr; vh r;fqUt CtJ zttu;:t
W"thfU;to=]rck"fUfUe dRoJ;wytfUtuyvl ugJmtg fUe mtbtg rf{gt fuUy;do; rcf{e fUhl uytih
RmbRmfuUvat;TstutJ"tl rfY dY n Wl r:r;gtfUtuAtu\zfUh, yvl umuytd l n fUhudt ytih
l ne cfUfUe ytuh murcf{e fuUmc" brtrF; v mubl tne rfY stl uvh Wl fUe rcf{e fUhudt>
That the hypothecated goods and all sales, realisation and insurance proceeds
thereof shall be held as the banks exclusive property especially appropriated to this security
and the Borrowers will not create any mortgage, charge, lien or encumbrance affecting the
same or any part thereof nor do anything which would prejudice this security and the
240
CHAPTER-10
Borrowers shall not part with the hypothecated goods save by way of sale in the ordinary
course of the Borrowers business and as hereinafter provided nor shall any sale be made
after prohibition in writing from the Bank against selling.
3. gn rfUW"thfU;tocfUfUe vqJoJef]Ur; fuUmt: =]rck"fUfUe dRoJ;wytgt Wl fuUrfUme
Ctd fUturfUme Ce v bmbg-mbg vh cual ugt rl vxtl ufuUrtY J;kt ntudt cN;uoWl J;wyt
fUt Wa bqg W; Ft;ubsbt fUh r=gt stY gt Rmb=e dRomqae bWrrF; J;wytgt Wl b
murfUme J;wfUe mbtl f]Ur; ytih mbtl bqg fUe J;wYkcfUmurtrF; yl wbtu=l tt fUhl ufuU
ct= RmfUth mucuse dRogt rl vxtRodRoJ;wytfuU:tl vh hFe stY>
That the Borrowers shall with previous consent of the Bank bet at liberty from
time to time to sell or dispose of in any manner the hypothecated goods or any part thereof
provided the advanced value of such goods is paid into the said account or goods of a
similar nature to those mentioned in the Schedule hereto, or any of the same, and of at
least equal value, are substituted for the goods so sold, or disposed or after approval of the
bank obtained in writing.
4. W"thfU;tombg-mbg vh ytih mCe mbg cfU, WmfuUYsxt;:t fUboatrhgtfUtuWmdtu=tb
gt vrhmh bJuN fUhl ufUe yl wbr; =udt sntk=]rck"fUfUe dRoJ;wYkgt Wl fUt fUtuRoCtd Wmmbg
hFt dgt ntuytih mt: ne Wl fUtu=uFl u, Wl fUt rl heGK YJkbqgtkfUl fUhl uytih Wl fUe mqae tt fUhl u
fUe yl wbr; =udt YJkcfU;:t WmfuUfUboatrhgtfUtuRmgtusl nu;wmCe fUth fUe g:tvurG; mwrJ"tYk
=tl fUhudt>
The Borrowers shall permit the Bank, their agents and servants from time to time
and at all times to enter upon any godown or premises wherein the hypothecated goods or
any part thereof may for the time being be and to view, inspect and value the same and
take inventories thereof and render to the Bank and their servants all facilities as may be
required for any of the purposes aforesaid.
5. W"thfU;toWm dtu=tb YJkvrhmh fUt mCe rfUhtgt, Wv-NwfU, fUh YJkyg FatufUt
Cwd;tl XefUmbg fUh fUhudt snt=]rck"fUfUe dRoJ;wYkhFe stYde ytih Wnytv=t mubw;
hFudt>
The Borrowers shall punctually pay all rents, rates, taxes and other out-goings of
the godown and premises wherein the hypothecated goods shall be stored and keep the
same free from distress.
6. gn rfUW"thfU;to=]rck"fUfUe dRoJ;wcfUtht yl wbtur=; rfUme cebt fUtgtotg bcfU
fuUl tb muYJkYfUbtt Wme fuUVUtg=ufuUrtY Yl fuUmkvqKoctsth bqg fuUrtY ytd fUe sturFb fuU
rJh cebt fUhtYdt ytih W"thfU;tobtkd rf Y stl uvh cfUfuUvG bWmfuUvqhuttC fuUrtY v]tkrfU;
241
CHAPTER-10
YJkmbl w=urN; WmfUe mCe vtprtrmgtfUtuYJkWmcebt fuUrtY r=Y dY erbgb fUe hme=tfUtucfU
fuUmwvw=ofUhudt>gr= btkd rfY stl ufuU;el r=l fuUct= Ce W"thfU;toRmfUth fUt cebt fUhtl ub
gt simt rfUQvh fUnt ni, rJr"J;Tv]tkrfU; vtrtme gt erbgb fUe hme=tfUtumwvw=ofUhl ubymVUt
hn;t ni ;tucfUfUtuRmct; fUe Aqx ntude rfUJn W"thfU;tofuUFaovh RmfUth fUt cebt fUhtY,
ntttkrfUYumt fUhl ufuUrtY Jn ctg l n ni>W"thfU;toRmct; fuUrtY Ce mnbr; =u;t ni rfUcfU
yvl urJJufUtl wmth (Yumt fUhl ufuUrtY ctg nwY rcl t) rfUme Ce mbg r;Cqr;gttfUtuctJt YJk
rmrJt yNtkr; fUe sturFb gt =qmhufUth fUe cebt sturFb fuUrJh Wl fuUmkvqKoctsth bqg fuUrtY
W"thfU;tofuUFaovh rfUme Ce cebt fkUvl e bcebt fUhl tufuUrtY J;kt ntudt>
That the hypothecated goods shall be insured against Fire risk by the Borrowers
in some Insurance office or offices approved by the Bank and in the name and for the sole
benefit of the Bank for their full market value and that the Borrowers will on demand deliver
to the Bank all policies for and the receipts for premia paid on such insurance endorsed
and assigned with the full benefit thereof in favour of the Bank. Should be Borrowers fail to
so insure or fail to deliver the policies or receipts for premia duly endorsed as aforesaid
three days after demand the Bank shall be at liberty, though not bound to effect such
insurance at the expenses of the Borrowers. The Borrowers further agree that the Bank shall
be at liberty at any time at its discretion (without being bound to do so) to insure the
securities for their full market value against riot and civil commotion risk or any other type
of insurance risk at the expenses of the Borrowers with any Insurance Comapny.
7. gn rfUQvh fUnudY yl wmth RmcefUt fuUy"el tt mCe htrNgtfUt Wvgtud Wm
mbg cfUfUe cfUtgt htrN fuUvrhmbtvl nu;wrfUgt stYdt ytih gr= fUtuRohtrN ca st;e ni ;tu
WmfUt Wvgtud Rmbr=Y dY Fkz 13 fuUtJ"tl fuUyl wmth rfUgt stYdt>
That all sums received under any such insurance as aforesaid shall be applied
in or towards the liquidation of the balance due to the Bank for the time being and in the
event of their being a surplus the same shall be applied s provided by the 13th Clause hereof.
8. gn rfUW"thfU;to=]rck"fUfUtudRoJ;wytfUt mkvqKorJJhK YJkWl fUe ttd; fUe rJJhKe
ytih ctsth bqg mrn; Wl fUt vqht rJJhK cfUfUtu=udt ;:t Wl fuUmb:ol bWl mtgtfUtu;w;
fUhudt rsncfUmbg-mbg vh btkdu, mt: ne cfUfuUvG b=]rck"fUfUe dRoJ;wytfuUmbg-mbg
vh ctsth bqg YJkWmmbg cfUfUe cfUtgt htrN fuUcea............................................... r;N;
fUt btrsol cl tY hFudt>gn btrsol =]rck"fUfUe dRoJ;wytfuUmbg-mbg vh cfUtht g:trl "torh;
Fwtuctsth-bqg fuUyt"th vh vrhfUrt; fUe stYde ytih gr==]rck"fUfUe dRoJ;wytfUt Wmmbg
fUt ctsth bqg cfUfUe cfUtgt htrN YJkQvh vrhfUrt; rfY dY yl wmth btrsol htrN fuUfwUt gtud
mufUb ntu;t ni ;tuW"thfU;togt ;tucfUtht rtrF; v byl wbtur=; yr;rh; J;wytfUtu
=]rck"fUfUhfuUgt l fU= Cwd;tl fUhfuUWmbtrsol fUtucl tY hFudt>
242
CHAPTER-10
The the Borrowers shall make and furnish to the Bank all statements and returns
of the cost and market value of the hypothecated goods and a full description thereof and
produce such evidence in support thereof as the Bank may from time to time require and
shall maintain in favour of the Bank a margin of .................... per cent, between the market
value from time to time of the hypothecated goods and the balance due to the Bank for the
time being. Such margin shall be calculated on the open market value of the hypothecated
goods as fixed by the Bank from time to time and shall be maintained by the Borrowers
either by the hypothecation of ruther goods to be approved by the Bank in writing or by
cash payment by the Borrowers immediately on the market value for the time being of the
hypothecated goods becoming less than the aggregate of the balance due to the Bank plus
the amount of the margin as calculated above.
9. gn rfUW; }UK Ft;uvh cfUtgt htrN fuUrtY gts =irl fUNuMvh Cth;eg rhsocfU
fUe=h mu..................... rN; r;JMoyr"fUfUe=h vh, stugql ;b........................ r;N; r;JMo
ntude, .........................yk;qtt vh cfUfuUvG b;c ;fUvrhfUrt; YJkCtrh; rfUgt stYdt sc
;fUcfUtgt }UK rJr"J;Tvrhmbtt l n ntust;t ytih cfUtht sc fUCe btkdt stYdt W"thv;to
WmfUt Cwd;tl fUhdu>vhk;wrVUh Ce cfUJrJJufUtl wmth W"thfU;tofUtumqal t =ufUh gt Cth;eg rhsJo
cfUtht mbg-mbg vh sthe rfY stl uJtturl =uNtfuUyl wmth Wvgwo; gts fUe =h fUe mkNtur"; fUh
mfU;t ni gt c\Zt mfU;t ni ytih W"thfU;toRmfuUtht gts fUe =h bRmfUth rfY stl uJttu
mkNtu"l YJkJ]r fuUr; yvl e mnbr; =tl fUh;un ;:t Rmmnbr; fUt gn y:otdtgt stYdt
btl tuRmfUth mumkNtur"; gt Jr"o; gts-=h fUt WuF RmfUhth brfUgt dgt :t ytih W"thfU;to
WmfUt Cwd;tl fUhl ufuUrtY mnb; :uytih RmfuUtht gn mwhrG; ni>
That interest at the rate of ................ per cent per annum above the Reserve Bank
of India rate subject to a minimum of .................... per cent per annum with ................... rests
shall be calculated and charged on the Daily balance in the Banks favour due upon the
said Cash Credit Account until the same is duly liquidated and shall be paid by the Borrowers
as and when demanded by the Bank. Provided however that the above rate of interest may
be revised or increased by the Bank either in its sole discretion of which notice shall be
given to the Borrowers or in accordance with the directives of Reserve Bank of India issued
from time to time and the Borrowers hereby agree to such revision and increase in the rate
of interest and this Agreement shall be construed as if such revised or increased rate of
interest were mentioned herein and agreed to be paid by the Borrowers and are hereby
secured.
10. gn rfUcfUtht btkdustl uvh W"thfU;toWml fU= }UK Ft;uvh cfUfUe Wmmbg
cfUtgt htrN ;:t Qvh WrrF; =h vh mCe yr;rh; gts fUt YJkCwd;tl fUe ;theF ;fUmCe
yr;rh; Ctht;:t FatufUt (gr=fUtuRontu) Cwd;tl fUhdu, vhk;wRmFkz bWrrF; rfUme ct; b
243
CHAPTER-10
gn l n mbSt stYdt rfUJn cfUfUtu=ug gts mrn; NuMhtrN fUtuAtu\zfUh Qvh WrrF; =h vh
mmbg =ug Cwd;tl fUe btkd fUhl umucfUfUtuhtufU;e ni>
that on demand by the Bank the Borrowers shall pay to the Bank the balance
then due to the Bank on the Cash Credit Account together with all further interest at the
rate above mentioned and the amount of all further charges and expenses (if any) to the
date of payment provided that nothing herein this Clause contained shall be deemed to
prevent the Bank from demanding payment of the interest for the time being due at the above
mentioned rate without at the same time demanding payment of the balance due to the Bank
exclusive of such interest.
11. RmrJtuFtfuUy"el Cwd;tl fUhl ubW"thfU;togr= aqfUfUh;un gt Rl rJtuFtfuU
rfUne rl ck"l tgt N;tufUtuCkd fUh;un ;tucfU, Wl fuUyr"fUtrhgtytih YsxtfUtuhn yr"fUth ntudt
rfUJuW"thfU;tofUtul turxmr=Y rcl t turfUl W"thfU;tofuUne sturFb YJkFaovh ytih gr= she
ntu;tuW"ttfU;tofUe ytuh muYJkWl fuUl tb muyxl eofuUv bsntkvn Ce =]rck"fUfUe dRo
J;wYkhFe nt, JntkJuN fUhytih Wvr:; hnytih Wl fUt yr"d{nK fUh, chtb=fUhytih tt fUh
ytih/gt ckfUfuUrfUme yr"fUthe gt rfUn yr"fUtrhgtfUtu=]rck"fUfUe dRoJ;wytfUt rhmeJh rl gw;
fUhytih/gt =]rck"fUfUe dRomCe J;wytgt Wl fuUrfUme Ctd fUtumtJosrl fUl ettbe gt tRJux
mkrJ=t tht gt yg ;hefuUmurcf{e fUhytih vqJofUr:; rfUn yr"fUthtfUtuJr;o;, fUtgtorJ;, mbtt
fUhytih sturFb bztuturfUl JuRl yr"fUthtfUt gtud fUhl ufuUrtY ctg l n ntduytih l ne
Rl yr"fUthe fuUgtud munwRoGr; fuUrtY rsbu=th ntduytih l ne RmmuW"thfU;tofuUrJh ct=
=tgh fUhl ufuUcfUfuUyr"fUthtytih Wvathtvh ytih l ne RmfUth fUe rcf{e munwRoytg fUt
Wvgtud aufUfUe cfUtgt htrN fuUvrhmbtvl fuUrtY fUhl ufuUcfUfuUyr"fUthtvh r;fqUt CtJ
v\zudt, ytih W"thfU;toY;=Ttht rcf{e gt WmmunwRotrt fuUcfUfuUtuFufUtubtl l ufuUrtY ;:t Wmb
fUtuRogql ;t gt fUbe r=FtRov\zu;tuWmfUt Cwd;tl fUhl ufuUrtY mnb; ni>
In derault of payment by the Borrowers in terms of these presents or in the event
of the Borrowers committing a breach of any of the terms and conditions of these presents,
the Bank and their Officers and Agents shall be entitled without notice to the Borrowers but
at the Borrowers riks and expenses and if so required as attorneys for and in teh name of
the Borrowers to enter and remain at any place where the hypothecated goods shall be and
to take possession of, recover and receive the same and/or appoint any officer or officers of
the Bank as receiver or receivers of the hypothecated goods and/or sell by public auction or
private contract or otherwise dispose of or with all or any part of the hypothecated goods
and to enforce, realise, settle, compromise and deal with any of the rights aforesaid without
being bound to exercise any of these powers or being liable for any loss in the exercise
thereof and without prejudice to the Banks rights and remedies of suit against the Borrowers
and to apply the net proceeds of such sale in or towards liquidation of the balance due to
244
CHAPTER-10
the Bank and the Borrowers hereby agree to accept the Banks account sales or realisation
and to pay any short-fall or deficiency therein shown.
11(fU) gn rfUcfUtht W"thfU;toytfUtu=e stl uJtte }UK/yrd{btfUe vqJoN;ofuUv
bW"thfU;toRmfuUtht Rmct; vh mnbr; g; fUh;un rfUW"thfU;to}UK/yrd{btfUe yl tgde b
y:Jt Wl vh gts y:Jt =ug ;theF fUturfUme mb; rfU; fUe y=tgde baqfUfUh;tucfU
ytih/y:Jt Cth;eg rhsJocfUfUturcl t N;ogn yr"fUth ntudt rfUJuWl fuUy:Jt Wl fUe fkUvl e/VUbo/
gq rl x ytih Wmfu Url =u NfUt /Ctde=tht /Jtrbgtfu Ul tb cfUy:Jt Cth;eg rhsJocfUyvl uvq KorJJu fUtr"fUth
musimt XefUmbSufUx gt fUtrN; fUh mfU;un>
11(a) That the Borrowers hereby agree as a pre-condition of the loan/advances given
to them by the Bank that in case the Borrower commit default in the repayment of the loan/
advances or in the repayment of interest thereon or any of the agreed instalment of the
loan on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right
to disclose or publish their names or the name of their company/firm/unit and its directors/
partners/proprietors as defaulter in such manner and through such medium as the Bank or
Reserve Bank of India in their absolute discretion may think fit.
12. gn rfUgr=RmfUth fUe rcf{e mutt Nw htrN Wmmbg cfUfUtucfUtgt NuMhtrN
fUtuvqht fUhl ufuUrtY yvgto; ni ;tucfUfUtugn Aqx ntude rfUJn W"thfU;toytbmurfUme YfU
gt YfUmuyr"fUfUe cfUfuUvtmsbt rfUme htrN gt htrNgtfUtuWvgtud cfUfUe Wmmbg
cfUtgt htrN fuUCwd;tl fuUrtY fUhytih gr=cfUfuUvtmRmfUth fUe fUtuRohtrN l n ntugt Ju
htrNgtkCe cfUtgt htrN fuUvqKoCwd;tl fuUrtY yvgtot nt;tuW"thfU;toRmfuUtht cal =u;un YJk
fUhth fUh;un rfURmbRmfuUvat;TJ;eoFkz 14 fuUyl wmth YfUtuFt ;igth fUh YJkn;tGh fUh
W"thfU;tofuUmbG ;w; rfY stl uvh Juyr;rh; cfUtgt htrN fUt Cwd;tl fUhdu>vhk;wgn nbuN
rfURmbyk;rJo rfUme ct; fUt gn y:ol n ntudt rfUmCe gt rfUn =]rck"fUJ;wytfUe rcf{e
l n ntul uvh Ce W"thfU;tofuUvtmW; l fU=e }UK Ft;uvh cfUfUtuWmmbg cfUtgt htrN fUtu
Jmqtl ufuUcfUfuUyr"fUth vh (stuY;=Ttht v;&fUhth fUe dRoni rfUcfUfUt ntudt) l fUthtbfU
CtJ v\zudt gt Wmur;fqUt v muCtrJ; fUhudt>
That if thenet sum realiwed by such sale be insufficient to cover the balance then
due to the Bank, the Bank shall be at liberty to apply any other money or moneys in the
hands of the Bank standing to the credit of or belonging to the Borrowers or any one or
more of them in or towards payment of the balance for the time being due to the Bank and
in the event of there not being any such money or moneys as aforesaid in the hands of the
Bank or in the event of such money or moneys being stll insufficient for the discharge in full
of such balance the Borrowers promise an agree fothwith on production to them of an account
to be prepared and signed as in 14th Clause hereinafter provided to pay further balance
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CHAPTER-10
which may appear to be due by the Borrowers thereon PROVIDED ALWAYS that nothing
herein contained shall be deemed to negative, qualify or otherwise prejudicially affect the
right of the Bank (which it is hereby expressly agreed the Bank shall have) to recover from
the Borrowers the balance for the time being remaining due from the Borrowers to the Bank
upon the said Cash Credit Account notwithstanding that all or any of the hypothecated goods
may not have been realised.
12.(fU) cfUfUtu=ug ;:t cfUtht tt fUtuRoCehtrN Yumuyl wf{b byl wgw; ntudt simurfU
cfUmbg-mbg vh yvl umvqKorJJufUmuyr;b v murl "torh; fUhu(RmfuUyr;rh;, cfUsimu
mbg-mbg vh rl "torh; fUhu, Rmu;c ;fU;:t rsmv batnuWaks Ft;ubsbt hF mfU;t ni)
Wvgwo; fuUvqJtod{n fuUrcl t, tt fUe dRohtrN fUt rJrl gtud rl l rtrF; v bntudt&
i) :b;&rl Keo; nstol t YJkydtt gts (yCtrh; gts mbu;) fuUr;
ii) r;eg, Ctrh; gts fuUr;
iii) ;];eg;&ttd;, Cth ;:t cfUtht WXtY dY F;tufuUr;, ;:t
iv) ytrFh b, bqt =ug htrN fuUr;
12(a) Any money due and payable to the Bank and received by the Bank shall be
applied in such order as the Bank in its absolute discretion may from time to time conclusively
determine (save that the Bank may credit the same to a suspense account for solong and
in such manner as the bank may from time to time determine).
Without prejudice to the above, the monies received shall be appropriated in
the following manner :
i) Firstly, towards liquidated damages and further interest (including
uncharged interest);
iv) Lastly, towards the principal amount due.
13. gn rfURmfUth fUe rcf{e munwRoNw ytg mucfUfUe cfUtgt htrN fUt vqht Cqd;tl
fUhl ufuUct= Ce Ft;ubW"thfU;toytbmurfUme YfUgt YfUmuyr"fUfUe stuCe htrN gt
htrNgtkntuWl fUt Wvgtud dwl mCe gt rfUn htrNgtfuUCwd;tl gt vrhmbtvl nu;wfUhstuW"thfU;toyt
bmurfUme YfUgt YfUmuyr"fUfuUvtmyfuUtugt rfUn yg gr; gt gr;gt, VUbtugt
fkUvrl gtfuUmt: mkgw; v mu}UK, Cwl tY dY rct, mtVU-vt, dthkxe, Cth gt rvn yg }UK gt
=ug;tytfuUv bcfUtgt ntursl brct, l tux, }UK ytih Yume yg =ug;tYkNtrbt n stuattqnt,
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CHAPTER-10
fUhk;wWmmbg cfUtgt gt =ug l n ntgt W"thfU;togt Wl bmurfUme YfUgt YfUmuyr"fUmu
cfUtht fUe dRoYume btkd Ce Ntrbt n stuJi" gt gtgtura; ntd gt rsmuytvme }UK fuUbwsht
(mux ytpVU) fuUrl gb tht rfUme btbtubJefUth rfUgt dgt ntuytih atnuW"thfU;togt Wl bmu
fUtuRoYfUgt YfUmuyr"fUNtu"l yGb gt r=Jtrtgt gthrl Keo; ntu;untgt rfY st;untgt
vrhmbtvl fUe r:r; gt yg rfUme r:r; bntytih Wl mCe gt rfUn yrd{b gt yrd{btfUe
JtJ; Wm;theF mugts Jmqt fUhursmu;theF fUtuyrd{b =tl rfY dY :u;:t WmfUe =hJne
ntde stuRmyrd{b fuUmkck" brl "torh; :>
That in the event of there being a surplus available of the net proceeds of such
sale after payment in full of the balance due to the Bank it shall be lawful for the Bank to
remain and apply the said surplus together with any other money or moneys belonging to
the Borrowers or any one or more of them for the time being in the hands of the Bank in
or under whatever account as far as the same shall extend against, in or towards payment
or liquidation of any and all toehr moneys which shall be or may become due from the
Borrowers or any one or more of them whether solely or jointly with any other person or
persons, firms of companies to the Bank by way of Loans, Discounted Bills, Letters of Credit,
Guarantees, Charges or of any other debt or liability including Bills, Notes, Credits and other
obligations current though not then due or payable or other demands legal or equitable which
the Bank may the Bank may have against the Borrowers or any one or more of them or
which the law of set-off of mutual credit would in any case admit and whether the Borrowers
or any one or more of them shall become or be adjudicated bankrupt or insolvent or be in
liquidation or otherwise and interest hereon from the date on which any, and all advance or
advances in respect thereof shall have been made at the rate or respective rates at which
the same shall have been so advanced.
13.(fU) sc ;fUrfUcfUfUtufwUt htrN fUt Cwd;tl l n rfUgt st;t ni atnuJn Cq;, J;obtl
gt CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, stu, W"thfU;totht =ug ntugt rsmfuUrtY W"thfU;to
hntkRmfuUy"el gt yg:t =tge ntumfU;t ntuy:Jt ntuawfUt ntu;:t atnuJn "tl v bnt
gt r;CqfuUv b, W"thfU;togn mnbr; =u;t ni rfUcfUfUe mCe r;Cqr;gtkytih/gt bwtYkstufwUA
Ce ntsturfUme mbg cfUtht W"thfU;tofUe ytuh mugt WmfuUFt;ubrfUme v b, rfUme fUth
mugt rfUme Ce W=T=ug mu"trh; fUe stYkde JucfUfuU"thKtr"fUth bntde ;:t/gt cfUfUtuWmfuU
}UK Ft;ubmbksl fUhl ufUt vqKoyr"fUth ntudt>cfUfUtuW; r;Cqr; YJk/gt bwt bmu
W"thfU;tofuU=trgJ gt =ug;t fUtuWbtura; fUhl ufUe ;:t begt=e sbtytfuUbtbtubatnuJn
Cwd;tl fuUrtY vrhvJ nwyt ntuy:Jt l n, YJkW"thfU;tofUtumqra; rfY rcl t (;:t Jt= =tgh
fUhl ugt rJr"fUrf{gt thkC fUhl ufuUvqJogt vat;T) rsmbstnurJrl gtusl y:Jt Jmqte fUe
J;kt;t ntude>m=TCtJvqJofUytfUrt; htrN, stu=trgJ fUe htrN ntude, WmucfUmbkrs; fUh mfU;t
ni>
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CHAPTER-10
13(a) Until payment is made to the Bank of all the amounts, whether past, present
or future, actual or contingent, which may be payable by the borrower or for which the
Borrower may be or become liable hereunder or otherwise and whether as principal or surety,
the borrower agrees that the Bank shall have a lien and/or right of set off on all securities
and/or monies whatsoever held at any time by the Bank on account of or to the credit of
the Borrower in or for any account or manner or purpose howsoever. The Bank shall be at
liberty to discharge the said obligations or liabilties of the borrower out of the said securities
and/or monies, and in case of term deposits, whether the same have matured for payment
or not, and may appropriate or realise them in the manner thought fit by it and without notice
to the Borrower (and whether before or after filing suit or taking any legal proceedings). The
Bank may set off an amount estimated by it in good faith to be the amount of that obligation.
13(F) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY
YfUvqJoN;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zt<W"thfU;to
tht "trh;/"trh; fUe stl uJtte ;mkck"e mug;tytytih WmfuUvttl bW"thfU;totht fUe dRoaqfU
(gr= fUtuRontu) fUtufUx fUh mfU;t ni>
(i) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr=Wra; ytih ytJgfU
mbSu=tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfUtht tr"f]U;
rfUme yg Ysme fUturl l rtrF; mCe gt RmfUth fUtufUtuRoCe stl fUthe =umfU;t ni&
fU) W"thfU;tofuUcthubmqal t ytih ytkfU\zt<
F) W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t gt
ytkfU\zt, ytih
d) Wl =trgJtfuUvttl bW"thfU;totht fUe stl uJtte aqfU, gr= fUtuRontu>
(ii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih ytkfU\zt mg
ytih mne ni>
(ii) W"thfU;togn cal =u;t ni rf &
fU) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsme cfUtht fUx
fUe dRoW; mqal t ytih ytkfU\zt fUt Wvgtud ;:t mkmt"l fUh mfU;t ni<;:t
F) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsme mkmtr"; mqal t
ytih ytkfU\zt gt yvl utht rl rbo; WmfuUWvt=tfUtuCth;eg rhsJocfUtht RmfuU
rtY rl r=o cfUt/rJteg mk:tytfUturJatht:o;w; fUh mfU;t ni>
13(b) As a pre-condition relating to grant of the loans/advances/other non-fund based
credit facilities to the borrower, bank requires borrowers consent for the disclosure by the
248
CHAPTER-10
bank of information and data ralating to the credit facility availed of/to be availed, by borrower,
obligations assumed/to be assumed, by borrower, in relation thereto and default, if any,
committed by borrower in discharge thereof.
(ii) Accordingly, borrowers hereby agree and give consent for the disclosure by the
by borrower; and
c) default, if any, committed by borrower in discharge to borrower such
and furnish to Credit information Bureau (India) Ltd., and any other agency
(iii) Borrowers declare that the information and data furnished by borrower to the Bank
(iv) Borrowers undertake that :
suthorised may use, process the said information and ata disclosed by the
Bank; and
behalf.
14. W"thfU;toRmfUhth fuUy"el cfUtht cfUtgt fuUv b=tJt fUe dRorfUme htrN fUe
mg;t fuUrl atgfUmbq; fuUv bcfUfUe tuFt crngtb;igth rf Y dY YJkmnt. ck"fUgt
cfUtht rJr"J;Ttr"f]U; rfUme yg yr"fUthe tht n;tGrh; tuFt-rJJhK fUturcl t rfUme yg
JtWah, =;tJus gt fUtdst; fuUJefUth fUhl ufuUrtY mnb; n>
The Borrowers agree to accept as conclsuive proof fo the correctness of any sum
claimed to be due from them to the bank under this Agreement a statement of account made
out from the Books of the Bank and signed by the Asst. Manager or other duly authorised
officer of the Bank without the production of any other voucher, document or paper.
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CHAPTER-10
15. gn rfURmfUhth fUt Wvgtud W; l fU= }UK Ft;ubmbg-mbg vh cfUfUtu=ug NuM
htrNgt;:t =ug ntul uJttuyr;b NuM fUe r;Cqr; fuUv brfUgt stYdt ytih W; Ft;t Rm
r;Cqr; fuUgtusl fuUrtY ck= l n mbSt stYdt ;:t =]rck"fUfUe dRoJ;wytfUe r;Cqr; fUtu
rfUme Ce mbg gt mbg-mbg vh W; l fU= }UK Ft;ub}UK te dRohtrN muyr"fUhtrN sbt
fUh =ul uy:Jt W; Ft;umu............................................................................................... hvgufUe
mkvqKohtrN rl fUtt tul umumbtt l n btl t stYdt gr=WmbhtrN sbt fUh Wmuvwl &Ftutt dgt ntu>
That this Agreement is to operate as security for the balance from time to time
due to the Bank and also for the ultimate balance to become due on the said Cash Credit
Account and the said account is not to be considered to be closed for the purpose of this
security and the security of hypothecated goods is not to be considered exhausted by reason
of the said Cash Credit Account being brought to credit at any time or from time to time or
of its being drawn upon to the full extent of the said sum of Rs. .................................... if
afterwards reopened by a payament to credit.
16. W"thfU;toY;=Ttht DtuMKt fUh;un rfU=]rck"fUfUe dRomCe J;wYkWl fUe ytgkr;fUmkvrt
ni YJkWl fuUYfUbtt yr"fUth bni ;:t rfUme Ce fUth fuUvqJoCth YJkCth mubw; n ytih gn
rfURmfuUy"el mCe CtJe J;wYkYJkmkvrt Wme fUth Wl fUe Cth hrn;, yggrl ; mkvrt cl e hnde
;:t W"thfU;tol uYumt fwUA l n rfUgt ni gt stl cqS fUh fUthK l n cl ugt vtxeogt mkmdeol n hnu
rsmmurfUWn=]rck"rfU; J;wytfUtuWvhtu; her; mu=]rck"fUfUhl umuhtufUt stY ;:t W"thfU;to
cfUfUe yvuGtl wmth yvl uFaovh cfUfuUvG b=]rck"fUfUe dRoJ;wytgt Wl fuUrfUme Ctd fUt
cebt fUhtYkduYJkWl mCe fUtgtufUtufUhdusimt rfUcfUatnudt YJkW"thfU;toRl rJtuFtfUtuyAe
;hn J]t fUhl ufuUrtY cfUytih/gt Wl fuUyr"fUtrhgtfUtuW"thfU;tofuUrtY YJkWl fuUl tb mu;:t
Wl fUe ytuh mufUtgofUhl ufuUrtY ytih Wl fUtgtufUtufUhl uytih cebt yrt= fUhl t fuUrtY stu
W"thfU;tofUtuRl rJtuFtfuUy"el fUhl t atrnY, yxl eofuUv btr"f]U; YJkyvrhJ;ol eg v mu
rl gw; fUh;un stuY;=Ttht r=Y dY yr"fUthtfUt gtud fUhl ufuUrtY mtbtg;&W"thfU;tofuUl tb
fUt Wvgtud fUhdu>
The Borrowers hereby declare that all the hypothecated goods are the absolute
property of the Borrowers at the sole disposal of the Borrowers and free from any prior charge
or encumbrance and that all future goods and property hereunder shall be likewise their
unencumbered, undisposed property and that the Borrowers have not done or knowingly
suffered or been party or privy to anything whereby they are in anywise prvented from
hypothecating the hypothecated goods in manner aforesiad and that the Borrowers will do
and execute at their costs all such acts and things for further and more particularly assuring
the hypothecated goods or any part thereof to the Bank as shall be required by the Bank
and for giving better efect to these presents the Borrowers authorise and irrevocably appoint
the Bank and/or their officers as attorney and attorneys for and in the name of the Borrowers
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CHAPTER-10
to act on behalf of the Borrowers and to execute and do any act, assurance and thing which
the Borrowers ought to execute and do under these presents are generally to use the name
of the Borrowers in the exercise of the powers hereby conferred.
17. fUhk;wgn nbuNt rfUgn fUhth W"thfU;tofuUrJh cfUfuUyr"fUhtytih Wathtvh fUtuRo
r;fqUt CtJ l n zttudt gr= cfUl uW"thfU;tofUtuRmfUhth murCt fUtuRoyg yrd{b r=gt ntu
gt =ul uJttt ntu>
Provided always that the Agreement is not to prejudice the rights or remedies of
the Bank against the Borrowers irrespective and independent of this Agreement in respect
of any other advance made or to be made by the Bank to the Borrowers.
18. gr= W"thfU;tofUtuRoVUbontugt VUbofUt m=g ntu;tuRmfUhth fuUttdqhnl ufuU=tihtl
WmVUbofuUdXl brfUme Ce fUth fUt vrhJ;ol W"thfU;toytih/gt Wl bmurfUme YfUgt YfUmu
yr"fUfuU=trgJtfUtufUb gt Wbtura; l n fUhudt>
In case the Borrowers shall be a firm or members of a firm no change whatsoever
in the constitution of such firm, during the continuance of this Agreement shall impair or
discharge the liability of the Borrowers or any one or more of them thereunder.
19. W"thfU;toY;=Ttht, mhfUth tht vntumune gtrv; gt RmbRmfuUvat;Tgtrv; rf Y
stl uJtturJrCt fkUx[tut yt=uNfuUmCe tJ"tl tfUtubtl l uYJkWl fUt vttl fUhl ufuUrtY fUhth fUh;u
n YJkJal =u;un ytih JuRmct; fUt gtl hFdurfUWl tJ"tl tfuUWkDl mucfUfuUru;t
vh rfUme fUth fUt r;fqUt CtJ l v\zu>W"thfU;toY;=Ttht mhfUth fuUfkUx[tut yt=uN gt rfUme yg
yt=uN gt yl w=uN fuUrl ck"l tfuUyl wmth xtfUfUtuvrhrl "torh; fUhl ufuUrtY mnb; n>
The Borrowers hereby agree and undertake to comply with all the provisions of
the various Control Orders already promulgated or that may be promulgatged hereafter by
the Government and shall see that the Banks interest are not in any way affected or
prejudiced by infringing the provision thereof. The Borrowers hereby agree to liquidate the
stocks in terms of Control Orders or any other Orders or instructions from Government.
20. W"thfU;torJrCt fkUx[tut yt=uNtbmhfUth tht rl "torh; vr; fuUyl wmth yvl uvtmhFu
nwY xtfUfuUmkck" bsc fUCe btkd fUe stY, DtuMKt-vt ;w; fUhduytih WmDtuMKt-vt fUtucfU
fUtumtivdursmmucfUfUtuRmfUth =]rck"fUrf Y dY xtfUfuUmkck" bDtuMKt-vt ;igth fUhl ub
mwrJ"t ntude>
The Borrowers shall submit Declarations in respect of stocks held by them as
and when required and in teh form and manner prescribed by the Government in the various
Control Orders and will hand over the Declaration to the Bank to enable them to prepare
their Declaration as regards the stocks so hypothecated.
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CHAPTER-10
21. cfUyvl utht r=Y dY ytih/gt r=Y stl uJttumCe yrd{bt, Wl fuUgts, ttd;, Cth
ytih FstufUeawfUti;efuUrtY JrJJufUtl wmth W"thfU;tofuUrl =uNfUt/ck"fUeg gr;gtmuWl fUeJigr;fU
nirmg; bdthkxe fUe btkd fUh mfU;t ni ytih W"thfU;toRmfuUtht fUhth fUh;unn ytih Jal =u;un
rfUsc fUCe cfUatnu, JuRmfUth fUe dthkxe ;fUtt ;w; fUhdu>
The Bank will be entitled to call upon the Borrowers at any time in its discretion
to furnish guarantee from the Borrowers Directors/managerial Personnel in their personal
capacity for the due repayment of all advances made and/or to be made by the Bank to the
Borrowers along with interest, costs, charges and expenses theereon and the Borrowers
hereby agree and undertake to forthwith procure and furnish such guarantees whenever
required by the Bank to do so.
RmfuUmtGe fuUv bRmvh W"thfU;tol uJMo=tunsth......................................................... fuU
............................................................................. bnel ufUe................................................;theF
fUtun;tGh rf Y>
IN WITNESS WHEREOF the Borrowers have hereunto set their hands this ............................
........................................................ day of ..................................................................................
Two thousand .............................................................
(W"thfU;tofuUn;tGh)
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CHAPTER-10
vqJoJ;eortF; bWrrF; J;wytfUemqae
SCHEDULE OF GOODS REFERRED TO IN THE
FOREGOING INSTRUMENT
(W"thfU;tofuUn;tGh)
NOTE : In the event of any controversy arising out of Hindi Version of this Form, the original
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CHAPTER-10
SCHEDULE OF HYPOTHECATION
(The illustration given hereunder are meant to guide the filling in of the Schedule of
Securities, but in each case, wherever required, the description should be altered to conform
to the terms of the sanction of the credit lines).
(i) All stocks of motor cars, spare parts, machinery plant etc., and other articles, goods,
stocks and movable property of any kind whatsoever, which now or hereafter from time
to time during this security shall be brought into, stored or be in or about the borrowers
premises, godowns, plinths, open spaces, factories, etc., or wherever else they may
be, including in particular such stocks stored or to be stored in the premises/warehouses/
godowns situate at............................................................(give herein the name of the town
and such details of the locality, place(s) of storage as may be considered necessary
or feasible in a particular case).
or
(ii) The whole of the borrowers stocks of cotton whether loose, ginned or unginned, or
fully pressed in bales whether raw or in process of manufacture and all other articles,
goods, stocks and movable property of any kind whatsoever, which now or hereafter
from time to time during this security shall be brought into, stored or be in or about
tne borrowers premises, godowns, plinths, open spaces, factories etc., or wherever else
they may be, including in particular such stocks stored or to be stored in the premises/
warehouses/ godowns situate at.............................................................(give herein the
name of the town and such details of the locality, place(s) of storage as may be
considered necessary- or feasible in a particular case).
or
(iii) All stocks of paper, cardboard etc., and all other articles, goods, stocks and movable
property of any kind whatsoever, which now or hereafter from time to time during this
security shall be brought into, stored or be in or about the borrowers premises godowns,
plinths, open spaces, factories etc., or wherever else they may be including in particular
such stocks stored, or to be stored in the premises/warehouses/godown(s) situate
at..........................................................................(give herein the name of the town and
such details of the locality, place (s)of storage as may be considered necessary or
feasible in a particular case).
or
254
CHAPTER-10
(iv) All stocks of various kinds of foodgrains, pulses, oilseeds, spices, kirana goods, sugar,
gur, khandsari sugar, vegetable ghee, oil etc., and all other articles or goods, stocks
and movable property of any kind whatsoever, which now or hereafter from time to
time during this security shall be brought into, stored or be in or about the borrowers
premises, godowns, plinths. open spaces, factories etc., or wherever else they may be,
including in particular such stocks stored, or to be stored in the premises/warehouses/
godown (s) situate at...........................................................(give herein the name of the
town and such details of the locality, place(s) of storage as may be considered
necessary or feasible in a particular case).
255
CHAPTER-10
Form of Supplemental Deed of Hypothecation of Goods for Increase in
Limit/Facility Without Additional Property as Security
This AGREEMENT made at ............................................................................................... this
............................ day of ................ 20........ BETWEEN ...........................................................
(hereinafter called the Borrower which expression shall unless excluded by or repugnant to
the context be deemed to include its successors and assigns/his/their/heirs, executors,
administrators, legal representatives and assigns) of the one part and UCO BANK, a body
Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 and having its Head Office at 10, Brabourne Road, Calcutta and a Branch Office
inter-alia, at ................................................................................................... (hereinafter called
the Bank, which expression shall unless excluded by or repugnant to the context be deemed
to include its successors and assigns) of the Other Part:
WHEREAS by a Deed of Hypothecation dated the ................................ day of ............... 20......
executed by the Borrower in favour of the Bank (hereinafter called the Principal Deed of
Hypothecation) the Borrower in consideration of the Bank having granted and/or agreed to
grant to the Borrower accommodation by way of cash credit facilities to the extent of Rs.
............ hypothecated to and in favour of the Bank all the present and future stocks and
movables of the Borrower as mentioned in the Principal Deed of Hypothecation (hereinafter
called the Hypothecated Goods) as security for the due repayment by the Borrower to the
Bank of the balance for the time being due to the Bank in the said cash credit account of
the Borrower with the Bank inclusive of principal, interest, cost, charges and expenses.
AND WHEREAS the Borrower has requested the Bank to grant to the Borrower further
accommodation by way of cash credit facilities by enhancing the existing limit thereof from
Rs. ............................. to Rs. ............................. which the Bank has agreed to do on the terms
and conditions, inter-alia, as hereinafter appearing and on the Borrower agreeing that the
Hypothecated Goods shal l consti tute securi ty not onl y for the exi sti ng l i mi t of
Rs. ............................. but also for the enhanced limit of Rs. ............................. agreed to be
granted as aforesaid and all interests, costs, charges and expenses and other moneys as
hereinafter mentioned.
NOW THIS DEED WITNESSES that in pursuance of the said agreement and in consideration
of the Bank having granted and/or agreed to grant further accommodation to the Borrower
by way of cash credit facilities by enhancing the maximum limit thereof from Rs. ........................
256
CHAPTER-10
to Rs. ......................... the Borrower hereby agrees that this Agreement shall be supplemental
the Principal Deed of Hypothecation and the Hypothecated goods charged under. the Principal
Deed of Hypothecation shall constitute security in favour of the Bank by way of first charge
for the said enhanced facilities with the aggregate limit of Rs. ...................... and for payment
by the Borrower to the Bank of all principal moneys together with interest at the rate specified
in the Priricipal Deed of Hypothecation or at such other rate or rates as the Bank may notify
to the Borrower fro time to time and also all costs, charges and expenses incurred by the
Bank to the date of payment for preservation, protection, defence, or perfection of the security
created by the Principal Deed of Hypothecation and the Principal Deed of Hypothecation shall
be read and construed as if the maximum limit mentioned therein is Rs. ...............................
in place and in stead of Rs. .......................................... AND THAT the words and figures
Rupees ........................................... wherever appearing in the Principal Deed of Hypothecation
shall be substituted by the words and figures Rupees ................................................. as if
the same were originally written therein AND THAT save as expressly modified as aforesaid
all the terms and conditions set out and contained in the Principal Deed of Hypothecation
shaH remain in full force and effect.
In WITNESSES WHEREOF the Borrower has executed these presents the day, month and
Form of Supplemental Deed of Hypothecation of Goods for Additional
Security for an Increase in Limit/Facility
THIS AGREEMENT made at .......................................... this ................... day of ..................
20....... BETWEEN .......................................................... (hereinafter called the Borrower which
expression shall unless excluded by or repugnant to the context be deemed to include its
successors and assigns/his/their/heirs, executors, administrators, legal representatives and
assigns) of the one part and UCO BANK, a body Corporate constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office
at 10, Brabourne Road, Cal cutta and a Branch Offi ce i nter-al i a, at
.......................................................... (hereinafter called the Bank, which expression shall
unless excluded by or repugnant to the context be deemed to include its successors and
assigns) of the Other Part :
WHEREAS by a Deed of Hypothecation dated the ................................... day of
................................. 20...... executed by the Borrower in favour of the Bank (hereinafter called
the Principal Deed of Hypothecation) the Borrower in consideration of the Bank having
257
CHAPTER-10
granted and/or agreed to grant to the Borrower accommodation by way of cash credit facilities
to the extent of Rs. ............................. hypothecated to and in favour of the Bank all the
present and future stocks and movables of the Borrower as mentioned in the Principal Deed
of Hypothecation (hereinafter called the Hypothecated Goods) as security for the due
repayment by the Borrower to the Bank of the balance for the time being due to the Bank
in the said cash credit account of the Borrower with the Bank inclusive of principal, interest,
cost, charges and expenses.
AND WHEREAS the Borrower has requested the Bank to grant to the Borrower further
accommodation by way of cash credit facilities by enhancing the existing limit thereof from
Rs. ............................. to Rs. ............................. which the Bank has agreed to do on the
Borrower agreeIng to furnish further security, as hereinafter appearing and on the Borrower
agreeing that the Hypothecated Goods shall constitute security not only for the existing limit
of Rs. ............................. but also for the enhanced limit of Rs. ............................. agreed to
be granted as aforesaid and all interests, costs, charges and expenses and other moneys
as hereinafter mentIoned.
of the Bank having granted and/or agreed to grant further accommodation to the Borrower
by way of cash credi t faci l i ti es by enhanci ng the maxi mum l i mi t thereof from
Rs. ............................. to Rs. ............................. the Borrower hereby agrees that this Agreement
shall be supplemental to the Principal Deed of Hypothecation, AND THAT the Borrower hereby
hypothecates by way of first charge in favour of the Bank the goods described in the Schedule
hereto which shall include all products, goods and movable property of any kind belonging
to the Borrower which now or hereafter from time to time during this security shall be brought
i n, stored or be i n or about the Borrowers premi ses or godowns
at ............................................................................ or wherever else the same may be as
security for the payment by the Borrower to the Bank, of the balance due to the Bank at
any time or ultimately on the closing of the said Cash Credit Account and that the expressIon
the balance due to the Bank herein shall have the same meaning as contained in the
Principal Deed of Hypothecation AND the hypothecated goods charged under the Principal
Deed of Hypothecation shall constitute security in favour of the Bank by way of first charge
for the said enhanced facilities with the aggregate limit of Rs. ............................. and for
payment by the Borrower to the Bank of all principal moneys together with interest. at the
rate specified in the Principal Deed of Hypothecation of at such other rate or rates as the
Bank may notify to the Borrower from time to time and also all costs, charges and expenses
incurred by the Bank to the date of payment, for the preservation, protection, defence or
258
CHAPTER-10
perfection of the security created by the Principal Deed of Hypothecation or by these presents
and the Principal Deed of Hypothecation shall be read and construed as if the maximum
limit mentioned therein is Rs. ............................. in place and in stead of Rs. .............................
AND THAT the words and figures Rupees .................................................... Wherever
appearing in the Principal Deed of Hypothecation shall be substituted by the words and figures
Rupees .............................................................. as if the same were originally written therein
AND THAT save as expressly modified as aforesaid all the terms and conditions set out and
contained in the Principal Deed of Hypothecation shall remain in full force and effect.
THE SCHEDULE ABOVE REfERRED TO :
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................
In WITNESS WHEREOF the Borrower has executed these presents the day, month and year
first above written.
Form of Supplemental Deed of Hypothecation of Goods for Additional
Security for an Existing limit/Facility
THIS AGREEMENT made at ......................................... this ................... day of ..................
20....... BETWEEN .................................................................... (hereinafter called the Borrower
its successors and assigns/his/their/heirs, executors, administrators, legal representatives and
assigns) of the one part and UCO BANK, a body Corporate constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 and having its Head Office
at 10, Braboume Road, Calcutta and a Branch Office inter-alia, at ....................................
(hereinafter called the Bank, which expression shall unless exclud.ed by or repugnant
to the context be deemed to include its successors and assigns) of the Other Part:
WHEREAS by a Deed of Hypothecati on dated the. ............................. day of
........................ 20...... executed by the Borrower in fqvour of the Bank (hereinafter called the
Principal Deed of Hypothecation) the Borrower in consideration of the Bank having granted
and/or agreed to grant at its discretion to the Borrower accommodation by way of cash credit
259
CHAPTER-10
facilities to the extent of Rs. ............................. hypothecated to and in favour of the Bank all
the present and future stocks and movables of the Borrower as mentioned in the Principal
Deed of Hypothecation (hereinafter called the Hypothecated Goods) as security for the due
repayment by the Borrower to the Bank of the balance that may be for the time being due
to the Bank in the said cash credit account of the Borrower with the Bank inclusive of
principal, interest, cost, charges and expenses.
AND WHEREAS at the request of the Borrower the Bank has agreed to continue the said
Cash Credit Facilities to the Borrower furnishing additional security for the said Cash Credit
Facilities in. the manner hereinafter expressed.
of the bank having agreed to continue the said cash credit . facilities to the Borrower, the
Borrower hereby agrees that this agreement shall be supplemental to the Principal Deed of
Hypothecation, AND the Borrower hereby hypothecates by way of first charge in favour of
the Bank the goods described in the Schedule hereto which shall include all products, goods
and movable properties of any kind belonging to the Borrower which now or hereinafter from
time to time during this security shall be brought in; stored or be in or about the Borrowers
premises or godowns at ........................................... or wherever else the same may be as
security for the payment by the Borrower to the Bank of the balance due to the Bank at
any time or ultimately on the closing of the said Cash Credit Account and that the exPression
the balance due. to the Bank herein shall have the same meaning as contained in the
Principal Deed of Hypothecation AND THAT all the rights, powers, and provisions contained
in the Principal Deed of Hypothecation shall extend to and be applicable to the securities
hereby created in the same manner as if the corresponding rights, powers and provisions
were expressly inserted in these presents AND THAT save as aforesaid all the terms and
conditions set out and contained in the Principal Deed of Hypothecation shall remain in full
force and effect.
THE SCHEDULE ABOVE REFFERED TO:
............................................................................................................
............................................................................................................
............................................................................................................
............................................................................................................
In WITNESS WHEREOF the Borrower has executed these presents the day, month and year
first above written.
260
CHAPTER-10
Y/A 9Y/A
gq fUtucf UCO BANK
"tl fUtgtotg&10, rJj Jetittug bnthts mhKe, fUtutfUt;t-700 001
Head Office : 10, BIPLABI TRAILOKYA MAHARAJ SARANI, KOLKATA-700 001
mtJr" }UK fUtumwrhG; fUhlufuUrtY at mkgkt YJk
bNeltfUt =]rck"fUrJtuF
DEED OF HYPOTHECATION OF MOVABLE PLANT AND
MACHINERY TO SECURE A TERM LOAN
gn =]rck"fUrJtuF YfUytih...............................................................................................
................................................. stu...................................................................... fuUl tb muYJk
v b.................................................................byvl t gJmtg att hnun/ YfUmtSu=th VUbo
stu..............................................................byvl t gJmtg att hnt ni/ YfUfkUvl e stufkUvl e
yr"rl gb, 1956 fuUy"el rl drb; ni ;:t rsmtfUvksef]U; fUtgtotg.............................................
bni, rsmuytduIW"thfU;tOfUnt dgt ni (R= yrCgr; bsc ;fUfUtuRoct; mk=CofuUrJh
gt WmmuyvJrso; l ntu, y:tge v muWmfUt/WmfUe Jtrhm, rl tv=fU, NtmfU, Ji" r;rl r"
ytih mbl q=urN;e/mtSu=th, Wl fuUmk=rCo; Jtrhm, rl vt=fU, NtmfUytih mbl w=urN;e, WmfuUWthtr"fUthe
YJkmbl w=urN;e Ntrbt ntdu) ytih =qmhe ytuh gqfUtucfUfuUcea, stucfUfUthe fkUvl e (Wvf{btfUt
ysol ytih yk;hK) yr"rl gb, 1970 fuUy"el drX; YfUrl drb; rl fUtg ni ytih rsmfUt "tl
fUtgtotg 10, rJj Je tittug bnthts mhKe, fUtutfUt;t bni ;:t rsmfUe YfU
NtFt...................................... .............................................................................................b
Ce ni rsmuytduIcfUOfUnt dgt ni (RmyrCgr; bsc ;fUfUtuRoct; m=CofuUrJh gt
WmmuyvJrso; l ntu, WmfuUWthtr"fUthe ytih mbl w=urN;e Ntrbt ntdu), yts
r=l tkfU...........................................fUturl vtr=; rfUgt st;t ni>
THIS DEED OF HYPOTHECATION is made this ......................................................................
day of ............................................................................................................................. 20 ..........
BETWEEN ....................................................................................................................................
..................................................................................... carrying on business under the name and
style of ..........................................................................................................................................
at .............................................................................................................../a partnership firm
261
CHAPTER-10
carrying on business at ...................................................................................../a company
i ncorporated under the Compani es Act, 1956 and havi ng i ts regi stered Offi ce
at ....................................................................................................................................................
hereinafter called the Borrower (which expression shall unless excluded by or repugnant to
the context be deemed to include his/her heirs, executors, adminsitrators, legal representatives
and assigns/partners for the time being, their perspective heirs, executors, adminsitrators and
assigns, its successors and assigns) of the One Part AND UCO BANK, a Corporate Body
constituted under the Banking Companies (Acqusition and Transfer of Undertakings) Act, 1970
and having its Head Office at No. 10, Biplabi Trailokya Maharaj Sarani, Kolkata and also a
Branch Office at .............................................................................................................................
..............................................................................................................................................................
hereinafter called the Bank (which expression shall unless excluded by or repugnant to the
context be deemed to include its successors and assigns) of the Other Part :
aqkrfUcfUl uW"thfU;tofuUyl whtu" vh Wmuyg ct;tfuUmt:-mt: RmN;ovh.........................h.
fUt mtJr" }UK =tl rfUgt ni rfUJn W; }UK YJkWmfuUgts, ttd;, Cth YJkfUatufUe awfUti;e
cfUfUtul eaur=Y dY yl wmth mwrl ra; fUhl ufuUrtY cfUfuUvG byvl e J;obtl gt ct= b
yrso; rf Y stl uJttumCe at mkgkt, bNel he WvfUhK, ytisth YJkgkt ;:t yvl uJ;obtl gt CtJe
fUaubtt fuUxtfUfUtusimu........................................................................................................,
;igth ntuhnubtt, ;igth btt, CkzthK ytih yr;rh; vwsuostuCkzth bhFunwY n ytih/gt hFustYkdu/
ttY stYkdugt......................................................... bgt fUn ytih hFunWun gt btdo: ni, Rmb
RmfuUvat;TWrrF; her; mu=]rck"fUhFudt>
WHEREAS the Bank, at the request of the Borrower, has sanctioned to him/her/it a term
laon of Rs. ..................................... interalia, on the condition that the Borrower shall secure
the due repayment of the said term loan to the Bank together with interest, costs, charges
and expenses in the manner hereinafter mentioned by hypothecation in favour of the Bank
of all his/her/its movable plant, machinery, equipments, implements and applicances now and
hereafter acquired by the Borrower and all his/her its present and future stocks of raw
materials such as ............................................................................................., work-in-process,
finished goods, stores and spares stored and/or to be stored/brought in or situated
at ................................................................................................................................................... or
anywhere else or in course of transit in the manner hereinafter appearing.
262
CHAPTER-10
yc vqJofUr:; ;gtfUtugtl bhF;unwY RmfuUtht W"thfU;toYJkcfUfuUcea rl l fUth
mumnbr; nwRo&
NOW IT IS HEREBY AGREED in consideration of the premises aforesaid between the
Borrower and the Bank as follows :
1) W"thfU;tocfUfuUW; .................................................h. fuUmtJr" }UK, Wmvh l eau
WrrF; =h vh vrhfUrt; gts YJkY;=Ttht rl rbo; r;Cqr; fuUmkhGK gt Y;=Ttht hrG; "l htrN fUe
Jmqte fuUrtY cfUtht rf Y stl uJttumCe Fatu, ttd;tYJkCthtfUe mgfTUawfUti;e fuUrtY
r;Cqr; fuUv bY;=Ttht yvl ugJmtg fuUmCeYJkYfUt at mkgkttytih WmfuUWvgtud bttRo
stl uJtte bNel he, WvfUhK, ytisth YJkgkt stuW"thfU;tofu..............................................................
r:; fUthFtl ubv\zun ytih fUaemtbd{e, simu................................................................................
fuUmCe rJ btl YJkCrJg fuUxtfU, ;igth ntuhnubtt, ;igth btt, CkzthK ytih yr;rh; vqsustu
Ckzth bhFunwY n ytih/gt hFustYkdu/ttY stYkdugt............................................................ bgt
fUn ytih hFunwY n gt btdo: n ;:t W"thfU;tofuUgJmtg btde nwRogt yg Yume at bNel t,
mkgktt/WvfUhKt, ytisthtfUtuCe stuRmr;Cqr; fuU=tihtl rfUme Ce mbg ytgtr;; rfY stYkdugt
yg fUth mutt rfY stYkdu, tdtY stYkdugt stu\zustYkdugt vwhtl ufUe sdn l Y tdtY stYkdugt
Wl bWvgtud fuUrtY gt WmfuUgtusl muttY stYkdusturfUW"thfU;tofUe mkvrt ntude ytih stugt
;tuW"thfU;tofuUW; fUthFtl ubv\ze n gt btt dtu=tb bmkd]ne; fUe dRoni ytih/gt btdo: n
ytih/gt sntkfUn JuhFe dRontgt ntumfU;e ntytih fUaubtt, simu...........................................
fuUmCe rJ btl YJkCrJg fuUxtfU, ;igth ntuhnubtt, ;igth btt, CkzthK ytih yr;rhUvqsuostu
Ckzth bhFunwY n ytih/gt hFustYkdu/ttY stYkdugt.................................................... bgt fUn
ytih hFunWun gt btdo: n, (rJ btl mkgkt ytih bNel he ytih J;wytfUe bwg b=tfUt mkrGt
rJJhK l eaurtFe yl wmqae br=gt dgt ni) Wl mCe fUtu=]rck"fUhF;t ni ;:t :b fUth fuUv
bCtrh; fUh;t ni>
The Borrower hereby hypothecates and charges by way of first charge unto the BANK
ALL and SINGULAR movable plant, machinery, equipmetns, implements and appliances
belonging to and used in and about the Borrowers business and now situated, lying on,
being in or upon the factory of the Borrower at .......................................................................
............................................................................... and all present and future stocks of raw
materials such as ..........................................................................................................................
..............................................................................., work-in-process, finished goods, stores and
spares stored and/or to be stored/brought in or situated at .....................................................
............................................................. or anywhere else or in course of transit, and slso such
movable machinery, plant, equipments, implements which shall at any time or times during
the continuance of this security be imported or otherwise acquired, put upon or added to or
263
CHAPTER-10
substituted for existing ones or brought upon for use in or for the purpose of or otherwise
appeartaining to or belonging to the Borrowers business and which shall be the property of
the Borrower either lying at the said factory of the Borrower or stored in warehouses and/or
in course of transit and/or wherever they may lie or happen to be and salso all present and
future stocks of raw materials such as ............................................................................ work-
in-process, finished goods, stoes and spares stored and/or to be stored/brought in or situated
at .............................................................................................................. or anywhere else or in
course of transit (a short particulars of the main items of the existing plant and machinery
and goods are described in a schedule hereunder written) as and by way of security for
due repayment by the Borrower to the Bank of the said term loan of Rs. ..............................
together with interest at the rate hereinafter mentioned and all costs, charges and expenses
that may be incurred by the Bank for the protection of security hereby created or in or about
the realisation of the moneys hereby secured.
2) W"thfU;tocfUtht =t ytih/gt =tl rf Y stl uJttu......................................h. fuU
W; mtJr" }UK fUe bqt htrN fUe awfUti;e l eau=e dRo;theFtfUtuYJkrl r=o rfU;tbfUhudt, g:t&
The Borrower shall repay to the Bank the said principal amount of term loan of
Rs. .................................. advanced and/or to be advanced by the Bank on the dates and
by instalments in the manner hereinafter mentioned, namely :
awfUti;e ylwmqae
Repayment Schedule
264
CHAPTER-10
ytih RmfuUmt: W; bqt htrN gt WmfuUNuMvh rsmfUt Cwd;tl Wmmbg ;fUl n nwyt ni, rhsJo
cfUfUe=h mu................................%r; JMoyr"fUfUe=h vh, stugql ;b......................%r;
JMontude, btrmfU/r;btne/Abtne/JtrMofUyk;htt vh gts fUt Cwd;tl fUhudt ;:t W"thfU;toRmgts fUtu
cfUbbtrmfU/r;btne/Abtne yt"th vh sbt fUhudt YJkgr= W"thfU;tosimt rfUQvh fUnt dgt ni,
btrmfU/r;btne/Abtne yt"th vh gts fUt Cwd;tl fUhl ubaqfUfUh;t ni, ;tuaqfUfUe Jn gts htrN
cfUtht W"thfU;tofUtu=tl fUe dRoyr;hrfU; }UK-htrN btl e stYde ytih WmuW"thfU;tofuUFt;u
bl tbuzttt stYdt ytih Wmvh W; =h YJkyk;htt vh gts Ctrh; rfUgt stYdt>vh;wrVUh
Ce cfUJrJJufUtl wmth W"thfU;tofUe mqal t =ufUh gt Cwh;eg rhsJocfUtht mbg-mbg vh sthe rfY
stl uJtturl =uNtfuUyl wmth Wvgwo; gts fUe =h fUtumkNtur"; fUh mfU;t ni gt c\Zt mfU;t ni ytih
W"thfU;toRmfuUtht gts fUe =h bRmfUth rfY stl uJttumkNtu"l YJkJ]r fuUr; yvl e mnbr;
=tl fUh;t ni ;:t Rmmnbr; fUt gn y:otdtgt stYdt btl tuRmfUth mumkNtur"; gt c\ZtRodRo
gts-=h fUt WuF RmbrfUgt dgt :t ytih W"thfU;toWmfUt Cwd;tl fUhl ufuUrtY mnb; :t ytih
RmfuUtht Jn mwhrG; ni>
together with interest on the said principal sum or the balance thereof remaining unpaid for
the time being at the rate of ........................ % per annum over the Reserve Bank rate subject
to the minimum .......................... % per annum with monthly/quarterly/half-yearly/yearly rests,
such interest to be deposited monthly/quarterly/half-yearly with the Bank by the Borrower and
if the Borrower makes any default in payment of interest in respect of monthly/quarterly/half-
yearly as aforesaid, the amount of interest in default shall be treated as additional amount
advanced by the Bank to the Borrower and will be debited to the Borrowers account and
interest at the same rate and rests will be charged thereon. Provided however that the above
rate of Interest may be revised or increased by the Bank either in tis sole discretion of which
notice shall be given to the Borrower or in accordance with the directives of Reserve Bank
of India issued from time to time and the Borrower hereby agrees to such revision and
increase in the rate of interest and this Agreement shall be construed as if such revised or
increased rate of interest were mentioned herein and agreed to be paid by the Borrower
and are hereby secured.
3) W"thfU;toRmr;Cqr; fuUmkck" bytih rfUme Yume fUtgoJtne fuU;n; cfUtht rf Y dY gt
rf Y stl uJttumCe vrhggt, Ctht;:t F;tufUt Cwd;tl fUhudt stugt ;tu=]rck"fUhFudY at
mkgkttytih bNel he ;:t fUaubtt YJk;igth btt ytr=fuUxtfUfUtugt WmfuUrfUme Ctd fUtucual u
fuUrtY rf Y dY ntytih/gt Y;=Ttht mkhrG; "l htrN fUe Jmqte gt trt fuUrtY r;Cqr; fUtu
Jr;o; fUhl unu;wgt yg rfUme Ce fUth murf Y dY ntgt W"thfU;tofuUrfUme =trgJ fUtuJr;o;
fUhl ufuUrtY gt cfUfUtur=Y dY rfUn yr"fUthtfuUgtud fuUrtY rf Y dY nt<mt: ne Wl mCe
htrNgtfUt Ce Cwd;tl fUhudt stucfU=]rck"fUhFudY at mkgktt, bNel he ;:t fUaubtt YJk;igth
btt ytr= fuUxtfUgt WmfuUrfUme Ctd fuUmkck" bFaofUh;t ntuytih/gt Qvh =e dRo=h vh
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gts mrn; =qmhe rfUme htrN fUt, rsmuRl rtF;tfuUtJ"tl fuUy"el gt fUtl ql l W"thfU;tomu
Jmqtl ufUt cfUfUtuyr"fUth ntu, ;:t RmfUth fUe mCe ttd;t, Ctht;:t FatuYJkyg htrNgt
fUt Cwd;tl fUhudt ytih gr=Wl fUt Cwd;tl l n rfUgt st;t ni ;tuWnW"thfU;tofuUmtJr" }UK Ft;u
bl tbuztt r=gt stYdt ytih Y;=Ttht mkhrG; mkvrt vh Ctrh; rfUgt stYdt>
The Borrower shall pay all costs, charges and expenses paid or payable by the Bank
and incidental to this security and any proceedings which may be had either for sale of the
hypothecated movable plant and machinery and stocks of raw materials and finished goods
etc. or any part thereof and/or for enforcing the security or otherwise howsoever for procuring
or obtaining payment of the moneys hereby secured or for enforcing any of the obligations
of the Borrower or for exercising any of the powers given to the Bank and all other sums of
moneys which the bank shall have expended in connection with the hypothecated movable
plant and machinery and stocks of raw materials and finished goods etc. or any part thereof
and/or any other sum which the Bank shall be entitled to recover from the Borrower either
under the provisions of these presents or by Law with interest thereon at the rate hereinbefore
mentioned and all such costs, charges, expenses and other sums of money shall, if not so
paid, be debited to the term loan account of the Borrower and be charged on the property
hereby secured.
4) W"thfU;toY;=Ttht cfUfuUmt: rl l rtrF; v bmkrJ=t fUh;t ni&
The Borrower ereby covenants with the Bank as follows :
(fU) =]rck"fUhFe dRobNel he ytih xtfUfUtuRmr;Cqr; fuUattqhnl ufuU=tihtl mCe mbg
ytih sc ;fUcfUtht mtJr" }UK =tl rfUgt st;t ni ytih/gt =tl rfUgt stYdt gt WmfUt fUtuRo
Ctd cfUtgt hn;t ni ytih/gt RmrJtuF fuU;n; W"thfU;tofuUvtmcfUfUe fUtuRohtrN cfUtgt hn;e
ni, W"thfU;totht yAe yJ:t bYJkfUtb fUhl uttgfUcl tfUh hFt stYdt ;:t WmfUt cebt fUhtgt
stYdt YJkW"thfU;toyvl uFaomucfUtht yl wbtur=; cebt btgtotg gt fUtgtotgtbcfUfuUl tb
mugt W=thfU;toytih cfUfuUl tb mursmbW"thfU;tock"fUfU;toYJkcfUck"fU=th fuUv bntdu
ytih gr= W"thfU;tofuUl tb mune ;tucfUfUtumbl w=urN; fUhfuUWmfUe fUeb; fUe vqhe htrN fuUrtY
ytd, rmrJt yNtkr; ytih/gt ctJt, ttC fUe ntrl ytih mk:tvl gt rtvl fUe sturFb ytih Yume
sturFb fuUrJh stuvtl ql tht yvurG; ntu, cebt fUhtYdt ;:t rfUme Ce r:r; bvtprtme fUtucfU
fuUvtmsbt rfUgt stYdt>W"thfU;toRl vtprtrmgtvh =ug erbgb fUturJr"J;TYJkrl grb; v mu
=ug ;theF muYfUmttn vqJosbt fUhudt ytih Yumt fwUA l n fUhudt rsmmuJn cebt yrJr"btg gt
hntustY ytih cebt vtprtme ;:t mCe fUJh l tux, erbgb hme=;:t Wmmumkckr"; yg =;tJust
cfUbsbt fUhudt ;:t W"thfU;torfUme Ce mbg cfUfuUcebt Jttugts fUe htrN fuUcthubfUtuRo
rJJt=l n WXtYdt>gr=W"thfU;toWvh fUnudY yl wmth cebt fUhtl ubgt rfUme vtprtme fUtul Jef]U;
fUhtl ubgt erbgb fUt Cwd;tl fUhl ubgt =]rck"fUhFudY mkgkt gt btGl he fUtucebtf]U; hFl u
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bgt cfUfUtuvtprtme gt erbg fUe hme= =ul ubytih/gt RmFkz fuUy"el rfUme =trgJ fuU
rl Jton brfUme fUth fUe aqfUfUh;t ni ;tucfUtht Rm;hn fUt cebt fUhtl t gt l JefUhK fUhtl t
gt RmfUth fUt erbgb =ul t ytih =]rck"fUhFudY at mkgkttytih bNel t, fUaubtt fuUxtfU
;:t ;igth btt ytr= gt WmfuUrfUme Ctd fUtuYume htrN fuUrtY cebt fUhtfUh hFl t rJr"vqKo(vh
ctg;t l n) ntudt rsmuJn XefUYJkWra; mbS;t ntuytih btkd fUhl uvh W"thfU;tocfUtht Rm
Wug murfY dY mCe FstufUt Cwd;tl fUhudt ytih Qvh fUnudY yl wmth btkd fUe dRorsmhtrN
fUt Cwd;tl l n fUhudt WmfUe awfUti;e ;fUbtd fUe ;theF mu.......................................... r;N;
r; JMofUe =h mugts fUt Cwd;tl fUhudt ytih RmfUth fUe mCe htrN ;:t gts RmfuUtht
=]rck"fUhFe dRomkvrt vh Ctrh; hndu<vh;wcfURmct; fuUrtY nfU=th ntudt rfUJn yvl e
RAtl wmth Wl mCe htrNgtYJkgts fUtuW=thfU;tofuUmtJr" }UK Ft;ubgt cfUbWmfuUrfUme
yg Ft;ubl tbuzttu>WmfUth fuUrfUme Ce cebt mutt mCe htrNgtkcfUfUe mnbr; mu
gt ;tuGr;d{; gt l ntudY at mkgkt YJkbNel he fUe bhb;, vwl :tovl gt r;:tvl vh tdtRo
stYkde gt W; mtJr" }UK fUe =ug htrN gt =ug ntul uJtte htrN gt W; mtJr" }UK ytih/gt Rm
rJtuF fuUy"el gt yg rfUme Ce Ft;ufuUmkck" bcfUfUtu=ug htrN fuUvrhmbtvl vh tdtRo
stYkde>
(a) The hopothecated machinery and stocks shall at all times during the continuance
of this security and so long as the term loan granted and/or to be granted by the Bank or
any protion is outstanding and/or any money is due from the Borrower to the Bank under
these presents be maintained by the Borrower in good repair and working order and be
insured and kept insured by and at the expenses of the Borrower againwt fire, civil commotion
and/or riot, loss of profit and erection or installation risk and such other risk as may be
required by law to the full extent of the value thereof in an Insurance Office or Offices
approved by the Bank in the name of Bank or in the name of the Borrower and the Bank
as mortgagor and mortgagee and if in the name of the Borrower assigned to the Bank and
in either case the policy shall be handed over to the Bank. The Borrower shall duly and
punctually pay the premia due on the policies at least one week before the same shall have
become due or payable and shall not do or suffer to be doen any act which may invalidate
or avoid such insurance and shall deposit the Insurance Policy and all cover notes, premium
receipts and other documents connected herewith the Bank and the Borrower agrees not to
raise at any time any dispute as to the amount of the insurable interest of the Bank. If the
Borrower shall make default in effecting such insurance as aforesaid or renewing any policy
or in payment of such premia or keeping the hypothecated plant and machinery so insured
or in delivering to the Bank the Policies or receipts for the premia and/or performing any
obligations under this clause, it shall be lawful for (but not obligatory upon) the Bank to effect
such Insurance or to nenew or to pay such premia and to keep the hypothecated movable
plant and machinery, stocks of raw materials and finished goods etc. or any part of it insured
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CHAPTER-10
in such amount as the Bank may think fit and proper and the Borrower shall on demand
repay to the Bank all payments made by the Bank for that purpose and will pay interest at
the rate of .......................... per cent per annum from the date of demand until repayment of
any moneys not repaid on demand as aforesaid and all such moneys and interest shall remain
charged on the property hereby hypothecated; PROVIDED THAT THE BANK shall be entitled
at its option to debit all such moneys and interest to the term loan account or to any other
account which the Borrower may have with the Bank. That all sums received under any such
insurances as aforesaid shall be applied subject to the consent of the Bank either in or
towards the repairs, reinstatement or replacement of the movable plant and machinery
damaged or destroyed or towards the payment of the moneys due or to become due and
payable on the said term loan or in liquidation of the moneys due to the Bank in respect of
the said term loan and/or under these presents or on any account whatsoever.
(F) cfUfuUrfUme Wra; yl whtu" vh W"thfU;tom=iJ YJkmCe ;hn muyvl uFaovh cfUfUtu
ytih WmfuUYsxt, yr"fUtrhgt, fUboatrhgt, yxrl ogtgt l trb; gr;gtfUturcl t rfUme mqal t fuUrfUme
Ce mbg yvl ufUthFtl u, dtu=tb, fUtgtotg gt =]rck"fUhFudY rfUme at mkgkt YJkbNel he ;:t
fUaubtt YJk;igth btt ytr= fuUxtpfUfUtuhFl ufuU:tl bJuN fUh =]rck"fUhFudY at
mkgkt YJkbNel he ;:t fUaubtt ytih ;igth btt ytr=fuUxtfUfUet stka fUhl u;:t W"thfU;tofuU
Ft;t, ytzoht, vttatht;:t crngtYJkyg rhfUtztufUe stka, rl heGK, tuFt vheGt fUhl u;:t Wl mu
W=T"hK tul ufUe yl wbr; =udt (rsnfUhl ufuUrtY cfURmfuUtht tr"f]U; ni)>
(b) The Borrower shall upon any reasonable requiest of the bank at all times allow
the Bank and its agents, officers, employees, attorneys or nominees without notice and at
the expense in all respects of the Borrower to enter at any time into or upon the factory,
godown, offices of the Borrower or places of storage of any of the hypothecated movable
plant and machinery and stocks of raw materials and finished goods etc. for the purpose of
inspection of or checking the hypothecated movable plant and machinery and stocks of raw
materials and finished goods etc. and to examine, inspect, adudit and make extracts from
Borrowers accounts, orders, correspondence and books and other records (which the Bank
is hereby uthorised to do).
(d) cfUtht rfUme Ce mbg rtrF; v bbtkd stl uvh =]rck"fUhFudY at mkgkt YJk
bNel he ;:t fUaubtt YJk;igth btt ytr= fuUxtfUfUt vqKoYJkmne rtrF; rJJhK, Wl gtuht
fuUmt: rsmucfUatn;t ntu, ;:t =]rck"fUhFudY at mkgkt YJkbNel he ;:t fUaubtt YJk
;igth btt ytr=fuUWmCtd fUt tuFt W"thfU;to=udt stufUthFtl ugt dtu=tb bgt WmfuUfUsugt
=Ft fuUrfUme yg ymkd{nKeg :tl buMK fUe yJ:t bntugt btt dtu=tb bmkd]ne; rfUgt
dgt ntu>
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CHAPTER-10
(c) The Borrower shall from time to time on demand by the Bank in writing at any
time furnish forthwith to the Bank a full and correct written statement with such particulars
as the Bank may require of the hypothecated movable plant and machinery and stocks of
raw materials and finished goods etc. together with an account of such part of the
etc. as shall be in the course of transit to the factory or godown or any other place of storage
in possession or occupation of the Borrower or stored inwarehouses.
(D) W"thfU;torfUme Ce uKe fuUNugh"trhgtfUtusthe fUe stl uJtte l turxm, ;wtl -vt gt yg
vttfUe r;gtkcfUfUtuCe Wme mbg Cusudt sc Yume l turxm, ;wtl -vt gt yg vt mkckr"; vtrxogt
fUt sthe fUe st;e n>
(d) The Borrower will send to the Bank copies of all notices, Balance Sheets or other
communications issued to Share-holders of whatever class at the same time as such notices,
Balance Sheets or other communications are issued to the parties concerned.
(E) Rmr;Cqr; fuUsthe hnl ufuU=tihtl gt sc ;fUW; mtJr" }UK cfUtgt hn;t ni gt
sc ;fURmrJtuF fuU;n; ytih/gt W; mtJr" }UK fuUmkck" bgt rfUme Ce Ft;uvh cfUfUe
fUtuRohtrN cfUtgt hn;e ni ;c ;fUW"thfU;to&
(e) The Borrower shall not at any time during the continuance of this security and
so long as the said term loan is outstanding or so long as any money is due to the Bank
under these presents and/or in respect of the said term loan or on any account what soever :
(i) rfUme Ce at mkgkt, bNel he, WvfUhK ytih gkt fUtucfUfUe rtrF; vqJomnbr; fuUrcl t
l ;tunxtYdt gt nxJtYdt ytih l ne nxtl ufUe yl wbr; =udt, rmVoUWl r:r;gtfUtu
Atu\zfUh rsl bJuat mkgkt, bNel he, WvhfUK rDmst;un gt xqx st;un gt Gr;d{;
ntust;un ytih Wl fUtuzxtl t ytJgfUntu;t ni ytih Yume r:r; bW"thfU;toWl rDmu
nwY, xqxugt Gr;d{; at mkgktt, bNel t, WvfUhKtfUe sdn Wme fUth fUt YJkW;l e ne
fUeb; fuUat mkgkt, bNel he ;:t WvfUhK tdtYdt>
Remove or cause or permit to be removed any movable plant, machinery,
equipment and appliance without the previous consent in writing of the Bank
except in cases where such removal shall be rendered necessary by reason of
any such moable plant, machinery, equipment being worn out or injured or
damaged and in such cases will replace the movable plant, machinery, equipment
so worn out or injured or damaged by others of a similar nature and of equal
value.
(ii) fUthFtl ugt dtu=tb gt mkd{nK :tl mu=]rck"fUhFt dgt fUtuRoCe =qmht at mkgkt ytih
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CHAPTER-10
bNel he ;:t fUaubtt YJk;igth btt ytr=fuUxtfUyvl e mtbtg gtJmtrgfUrf{gt
fUtuAtu\zfUh l ;tunxtYdt gt nxJtYdt gt nxtl ufUe yl wbr; =udt gt =qmhe sdn tu
stYdt gt Wl fUt tul -=ul fUhudt ytih l ne Rm;hn fUt fUtuRofUtgofUhudt gt fUhl ufUe
yl wbr; =udt r;smmucfUfUe r;Cqr; fUtufUtuRol wfUmtl vnwka;t ntugt Jn CtrJ; ntu;e
ntu>
Remove or cause or permit to be removed from the factory or godown or place
of storage any of the other hypothecated movable plant and machinery & stocks
of raw materials and finished goods etc. or divert or deal with them except in
the usual course of its business and shall not do or permit to be done any act
or thing whereby the security of the Bank is impaired or affected.
(a) W"thfU;tocfUfUe rtrF; vqJomnbr; fuUrcl t =]rck"fUhFudY at mkgkt ytih bNel he
;:t fUaubtt YJk;igth btt ytr= fuUxtfUgt WmfuUrfUme Ctd fUtuck=fU, =]rck"fU, Cth,
rdhJe, rtgl vh l n hFudt gt WmurfUme fUth muCthd{; l n fUhudt ytih l ntul u=udt>
(f) The Borrower shall not create or allow or suffer to be created any mortgage,
hypothecation, charge, pledge, lien on the hypothecated movable plant and machinery & stocks
of raw materials and finished goods etc. or any part thereof or encumber the same in any
way without prior consent in writing of the Bank.
(A) gn =]rck"l W"thfU;tofUe Y;=Ttht fUe dRoRmDtuMKt fuUyt"th vh rfUgt st;t ni rfU
RmfuUtht m]rs; r;Cqr; byCe ytih mbg-mbg vh RmfuUtht Ntrbt rf Y stl uJttu=]rck"fU
hFudY at mkckt YJkbNel he;:t fUaubtt YJk;igth btt ytr=fuUxtfUW"thfU;tofUeyt;gkr;fU
mvrt ni ytih nh mbg hnde ;:t JumCe fUth fuUCth, =trgJ, rdhJe, rtgl , =tJugt cth mu
bw; n, mt: ne W"thfU;tofuURmJal fuUyt"th vh rfUgt st;t ni rfUW"thfU;toRmr;Cqr; fuU
sthe hnl ufuU=tihtl =]rck"fUhFudY rfUme Ce at mkgkt ;:t bNel he YJkfUaubtt ytih ;igth
btt ytr= fuUxtfUfUtuvql &rfUme ;hn Ctrh; l n fUhudt gt Wnck"fUgt rtgl vh l n hFudt
gt Cthd{; gt mbl w=urN; l n fUhudt gt fUhl ufUe yl wbr; l n =udt ytih W"thfU;torfUme Ce gr;
fuU=tJuytih btkd fuUrJh cfUfUt mb:ol YJkWl muWmfUe hGt fUhudt>
(g) This hypothecation is made on the faith of the declaration which the Borrower
hereby makes that the hypothecated movable plant and machinery & stocks of raw materials
& finished goods etc. now and from time to time hereby comprised in raw materials & finished
goods etc. now and from time to time hereby comprised in the security hereby created are
and will at all times be the absolute property ofthe Borrower and ; free from any other charge,
trust, pledge, lien, claim or encumbrance and on the undertaking hereby charged by the
Borrower that the Borrower will not create or permit to be created further charge, mortgage
or lien or encumber or assign any of the hypothecated movable plant and machinery and
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CHAPTER-10
stocks of raw materials and finished goods etc. during the continuance of this security and
the Borrower will warrant and defend the same to the Bank against the claim and demand
of any person whomsoever.
(s) rsl dtu=tbtYJkvrhmhtb=]rck"fUhFudY at mkgkt YJkbNel he ;:t fUaubtt YJk
;igth btt ytr= fuUxtfUhFudY n Wl fUt rfUhtgt, hux, fUh ;:t yg FatufUt Cwd;tl W"thfU;to
rl grb; v mufUhudt ;:t WnfUh:bTmubw; hFudt ;:t Wmvh gt WmfUe ytr;gtvh RmfuU
vntugt RmfuUct=yr"hturv;, rl "torh; gt W=d]ne; rfY dY mCe fUht, tdtl t;:t mhfUthe CthtfUt
YJkrbfUt, mtbd{e gt ytvqr;ofuUmCe =tJtfUt, stuCwd;tl l ntul ufUe r:r; bW"thfU;tofUe rfUme
mvrt vh fUtl ql l rtgl gt Cth gt Y;=Ttht rl rbo; r;Cqr; vh yr"btl ntumfU;un, rJr"J;TYJk
NeD{Cwd;tl fUhudt<rmJtg RmfuUrfURmbrl rn; fUtuRoct; W"thfU;tofUtuCwd;tl fuUvntugt ct=
gt Cwd;tl mrn; gt WmfuUrcl t YumurfUme fUh, tdtl , mhfUthe Cth gt yr"hturv;, rl "tL;h gt
W=Td]ne; rfY stl uJtturfUme =tJufUt mbwra; fUtgoJtne tht m=TCtJvqJofUrJr"J;TrJhtu" fUhl umugt
Wl fUt mbtgtusl fUhl umugt fwUd;tl fUe her; fuUmkck" bmbSti;t fUhl umul n htufuUde>
(h) The Borrower will punctually pay all rents, rates, taxes and other outgoings of
the god own and premises where the hypothecated movable plant and machinery and stocks
of raW materials and finished goods etc. shall be and keep the same free from distress
and duly and promptly pay and discharge all taxes, assessments and governmental charges
heretofore and hereafter imposed, assessed or levied against him/her/it or against his/her/its
assets, as well as all claims for labourer, materials or supplies which, if unpaid, might by
law become a lien or charge upon any property of the Borrower or have preference on the
security hereby created except that nothing herein contained shall prevent the Borrower ei-
ther before or after or with or without payment from lawfully contesting in good faith, by
appropriate proceedings any such tax, assessment, governmental charge or such claims that
may be imposed, assessed, threatened or levied against or from adjusting or compromising
the same and manner of payment thereof.
(S) RmbrfUme ct; fuUntu;unwY Ce mkvqKoyrd{b ;fUtt W"thfU;totht cfUfUtu=ug ntudt
YJkcfUrl l rtrF; Dxl tytbmurfUme YfUfuUDrx; ntul uvh JrJJufUmuY;=Ttht rl rbo; r;Cqr;
Jr;o; fUhl tufUt nfU=th ntudt, g:t&
(i) Notwithstanding anything herein contained the whole advance shall become forth-
with due and payable by the Borrower to the Bank and the Bank will be entitled at its op-
tion to enforce the security hereby created upon the happening of any of the following events,
namely:
(i) y=tgde fUe rl g; ;theF fUtumtJr" }UK mumkckr"; bqt "l fUe rfUme rfU; fuUy=t
hnl uvh, WmfuUCwd;tl fuUrtY<
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CHAPTER-10
Any instalment of the principal moneys relating to the term loan being unpaid on
the due date, for payment thereof;
(ii) ytivatrhfUgt Ji" v mubtkd fUe dRontugt l n, mtJr" }UK mumcr"; rfUme gts
fuU=ug ntustl ufuUct= ;el bnel u;fUy=t gt cfUtgt hnl uvh<
Any interest relating to term loan remaining unpaid and in arrears for a period of
three months after the same shall have become due whether formally or legally
demanded or not;
(iii) RmrJtuF br=Y dY rl ck"l t, N;tuYJkmkrJ=t fuUvttl gt yl wvttl bW"thfU;to
tht rfUme fUth fUe twrx gt gr;f{b rfY stl uvh<
On the Borrowers committing any breach or default in the performance or ob-
servance of the terms, conditions and covenants contained in these presents;
(iv) W"thfU;totht yvl u}UK=t;tytmufUtuRogJ:t gt Nbl fUhl uvh gt r=Jtrtgtvl fUt
fUtuRofUtgofUhl uvh<
On the Borrowers entering into any arrangement or composition with its creditor
or committing any act of insolvency;
(v) W"thfU;tofUevqhemkvrt gt WmfuUrfUmeCtd vh fwUfUeogt fUh:bTtdtY stl ugt W=Td]ne;
rf Y stl uvh<
On the execution or distress being enforced or levied against the whole or any
part of the Borrowers property;
(vi) W"thfU;tofuUJirAfUvrhmbtvl fuUrtY ciXfUcwttY stl uvh gt W"thfU;tofuUvrhmbtvl
fuUrtY gtgttg bgtrafUt =tgh rfY stl uvh gt gr= W"thfU;tombtvl fUe r:r; b
ntu<
If a meeting is called for the voluntary winding up of the Borrower or a petition
is made to the court for the winding up of the Borrower or if the Borrower goes
into liquidation;
(vii) W"thfU;tofuU(gr= fUtuRoVUbontu) rfUme Ctde=th fuUr=Jtrtgt gtgrl Keo; ntul uvh gt
r=Jtrtgt }UKe fuUyl w;tuMfuUrtY rfUme fUtl ql fUt ttC WXtl uvh<
On any of the partners of the Borrower (if a firm) being adjudicated insolvent or
taking advantage of any law for the relief of insolvent debtors;
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CHAPTER-10
(viii) W"thfU;tofUe vqhe mkvrt gt WmfuUrfUme Ctd fuUrtY rhmeJh rl gw; rfY stl uatrnY>
On a Receiver being appointed in respect of the whole or any part of the . prop-
erty of the Borrower;
(ix) W"thfU;totht yvl t fUthtucth Atu\zl ufUe "bfUe r=Y stl uvh<
If the Borrower ceases, or threatens to cease to carry on its business;
(x) Yume vrhr:r;gtkWvt ntul uvh stucfUfUtu=e dRor;Cqr; vh r;Cqt CtJ ztt;e nt
gt Wmul wfUmtl vnwkat;e nt, mkvx bztt;e ntgt WmfuUbqg fUtufUb fUh;e ntugt
r;Cqt CtJ zttl u, l wfUmtl vnwkatl u, mkfUx bzttl ugt bqg fUb fUhl uJtte ntu<
The occurance of any circumstance which is prejudicial to or imnairs, imperils or
depreciates or is likely to prejudice, impair, imperil or depreciate the security given
to the Bank;
(xi) Yume Dxl t fuUDrx; ntul ugt r;r:r; fuUWvt ntul uvh stuW"thfU;tofuU}UK awfUtl u
fUe Gb;t vh rfUme fUth fUt r;fqUt gt rJhtu"e CtJ ztt;e ntugt zttl ufUe ytNkfUt
ntu<
The occurance of any event or circumstance which would or is likely to prejudi-
cially or adversely affect in any manner the capacity of the Borrower to repay
the said loan.
(@) gr=Fkz (S) bWrrF; rfUn fUthKtmugt mfUe yg fUthK mucfUfUtutd;t
nturfUWmfUe r;Cqr; sturFb bni ;tucfU, WmfuUfUboathe gt Ysx fuUrtY gn Ji" ntudt rfUJu
W"thfU;tofUtuvntul turxmr=Y rcl t ytih W"thfU;tofUe sturFb ;:t Faovh YJksh; ntu;tuWmfuU
yxl eofuUv bytih W"thfU;tofuUl tb vh Y;=Ttht =]rck"fUhFudY at mkgkt, bNel he, WvfUhK
YJkgkt, fUaubtt YJk;igth btt ytr= fuUxtfUfUt yrCd{nK fUh tytih Wl vh fUst fUh,
atnuJurfUme Ce :tl vh hFudY ntytih Rmgtusl fuUrtY rsmvrhmh bW; mvrt hFe
dRoni, JntkJuN fUhytih Wvr:; hnytih WmbJuN fUhl ufuUrtY gr=ytJgfUntu;tu=hJtsu
YJkrF\zrfUgtk;tu\z;:t =]rck"fUhFudY mCe gt rfUme at mkgkt YJkbNel he ;:t fUaubtt ytih
;igth btt ytr= fuUxtfUfUtugtgttg fuUn;Guv fuUrcl t YfUmt: gt xwfU\ztbytih mtJsrl fU
l ettbe tht gt tRJux mkrJ=t tht, bqg YJkWl fuUCwd;tl fuUWl rl ck"l tvh ;:t nfUgt nfU
fuUmtg gt yg btbttmumkckr"; Wl N;tuofuUy"el rsncfUWra; mbS;t ntu, cuaytih cfU
fUtugn yr"fUth ntudt rfUJn mtJsrl fUl ettbe tht cuaudY mtbtl fUtuFhe=uytih tt fUhugt
rcf{e fUe rfUme mkrJ=t fUtuvtxuytih W; mvrt fUtuvql &cual umuntul uJtte rfUme Gr; fuUrtY
Wth=tge nwY rcl t Wl fUe vwl &rcf{e fUhuytih RmfUth fUe rfUme rcf{e mutg f{g-"l gt WmfuU
rfUme Ctd fuUCwd;tl fuUrtY Wl r;Cqr;gtvh gt rcl t r;Cqr; fuUYumt mbg =ursmucfUWra;
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mbSuytih Yumt rl vt=l YJkYumumCe n;tk;hK YJkyg fUtgofUhytih f{g-"l fuUrtY CtJe
hme= ;:t Yumt Wbtual =tl fUh rsmucfUWra; mbSuytih W; rcf{e fuUrtY Rl rJtuFtfuU
y"el yr"fUth fUt gtud fUhl uJttugr; tht =e dRortrF; hme=f{g-"l fuUrtY CtJe Wbtual
ntude ;:t f{u;t Wl fuUrfUme fUth fuUl wfUmtl gt =wvgtud vh gtl =ul ufuUrtY ctg gt Wth=tge
l n ntudt>
cfUfUtu=ug ;:t cfUtht tt fUtuRoCe htrN Yumuyl wf{b byl wgw; ntudt simurfU
cfUmbg-mbgvh yvl umvqKorJJufUmuyr;b v murl "torh; fUhu(RmfuUyr;rh;, cfUsimumbg-
mbg vh rl "torh; fUhu, Rmu;c ;fU;:t rsmv batnuWak; Ft;ubsbt hF mfU;t ni)
Wvgwo; fuUvqJtod{nK fuUrcl t, tt fUe dRohtrN fUt rJrl gtud rl l rtrF; v bntudt&
ii) r;eg;&, Ctrh; gts fuUr;
iii) ;];eg;&, ttd;, Cth ;:t cfUtht WXtY dY FatufuUr;, ;:t
sc ;fUrfUcfUfUe fwUt htrN fUt Cwd;tl l n rfUgt st;t ni atnuJn Cq;, J;obtl gt
CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, stuW"thfU;totht =ug ntugt rsmfuUrtY W"thfU;togntk
RmfuUy"el gt yg:t =tge ntumfU;t ntuy:Jt ntuawfUt ntu;:t atnuJn "tl v bntugt
r;CqfuUv b, W"thfU;togn mnbr; =u;t ni rfUcfUfUe mCe r;Cqr;gtkytih/gt bwtYkstufwUA
mugt rfUme Ce W=T=ug mu"trh; fUe stYkde JucfUfuU"thKtr"fUth bntde ;:t/gt cfUfUe WmfuU
}UK Ft;ubmbksl fUhl ufUt vqKoyr"fUth ntudt>cfUfUtuW; r;Cqr; YJk/gt bwt bmuW"thfU;to
fuU=trgJ gt =ug;t fUtuWbtura; fUhl ufUe ;:t begt=e sbtytfuUbtbtubatnuJn Cwd;tl fuUrtY
vrhvJ nwyt ntuy:Jt l n, YJkW"thfU;tofUtumqra; rfY rcl t (;:t Jt= =tgh fUhl ugt rJr"fU
rf{gt thkC fUhl ufuUvqJogt vat;T) rsmv batnurJrl gtusl y:Jt Jmqte fUe J;kt;t ntude>
m=TCtJvqJofUytfUrt; htrN, stu=trgJ fUe htrN ntude, WmucfUmbkra; fUh mfU;t ni>
(j) In any of the events mentioned in clause (i) hereof or if for any other reason the
Bank considers that its security is in jeopardy, it shall be lawful for the Bank, its servants or
agents without previous notice to the Borrower but at the risk and expenses of the Borrower
and if so required as attorneys for and in the name of the Borrower to seize and take
possession of the movable plant, machinery, implements and equipment, stocks of raw
materials and finished goods etc. hereby hypothecated in whatever place or places they may
happen to be and for the purpose aforesaid to enter and remain upon any premises where
the said properties may be and if necessary, to break open doors and windows in order to
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CHAPTER-10
obtain admission arid also to sell without the intervention of the Court all or any of the
etc. either together or in parcels and either by public auction or private contract on such
terms as to price and the payment thereof and subject to such conditions respecting title or
evidence of title or other matter as the Bank may think fit with power to the Bank to buy in
any sale by public auction and to receive or vary any contract for sale and to resell the
said properties without being answerable for any loss occassioned thereby and upon any
such sale to give time for the payment of the purchase money or any part thereof and upon
such security or without security as the Bank shall think fit and to execute and do all such
assurances and things and to give effectual receipt and discharge for the purchase money
as the Bank shall think fit and on any such sale as aforesaid the receipt in writing of the
person exercising power under these presents shall be an effectual discharge for the purchase
money and the purchaser shall not be bound to see to the applicatien or be responsible for
any loss or misapplication of the same.
Any money due and payable to the Bank and received by the Bank shall be
determine (save that the Bank may credit the same to a suspense account for so long and
following manner:
i) Firstly, towards liquidated damages and further interest (including uncharged
interest);
Until payment is made to the Bank of all the amounts, whether past, present or
future, actual or contingent, which may be payable by the borrower or for which the Bor-
rower may be or become liable hereunder or otherwise and whether as principal or surety,
the borrower agrees that the Bank shall have a lien and/or right of set off on all securities
and/or monies whatsoever held at any time by the Bank on account of or to the credit of
the Borrower in or for any account or manner or purpose howsoever. The Bank shall be at
liberty to discharge the said obligations or liabilities of the borrower out of the said securi-
ties and/or monies, and in case of term deposits, whether the same have matured for pay-
275
CHAPTER-10
ment or not, and may appropriate or realise them in the manner thought fit by it and with-
out notice to the Borrower (and whether before or after filing suit or taking any legal pro-
ceedings). The Bank may set off an amount estimated by it in good faith to be the amount
of that obligation.
RmfUth fUe rcf{e munwRoNw ytg muW; mtJr" }UK Ft;ufuUy"el gt WmfuUmv"
bcfUfUe cfUtgt htrN fUt vqKoCwd;tl fUhl ufuUct=Ce gr=fUtuRohtrN NuMca st;e ni ;tugn
cfUfuUrtY rJr"-mkd; ntudt rfUJn W; yr"NuMhtrN fUtu;:t Wmmbg cfUfuUvtmfuUrfUme
Ce Ft;ubW"thfU;tofUe stuCe Ft;ubW"thfU;tofUe stuCe htrN ntuWmuyvl uvtmhFuytih
Wl fUt Wvgtud Wl mCe htrNgtfuUvrhmbtvl nu;wCwd;tl fuUv bfUhustuW"thfU;tofuUvtmyfuUtu
cfUtgt ntugt ntumfU;e ntugt rfUme yg gr; gt gr;gt, VUbogt fkUvl e fuUvtmmkgw; v
mu}UK, Cwl tY dY rct, mtF vt, dthkxe, Cth fuUv bcfUfUt cfUtgt ntugt yg rfUme }UK
gt =ug;t ytih yg YumuJ;obtl =trgJ fuUv bntustug rv Wmmbg cfUtgt gt =ug l n ni
gt cfUfUe W"thfU;tomuyg J" gt gtgtura; btkd fuUv bntugt rsmuytvme }UK fuUbwsht
fuUfUtl ql tht rfUme btbtubJefUth rfUgt dgt ntuytih sntkW"thfU;toNtu"l yGb gt r=Jtrtgt
gtgrl Keo; nwyt ntugt ntu;t ntugt vrhmbtfUl fUe r:r; bgt yg r:r; bntu, ;:t Wmvh
gts Wm;theF murtgt stYdt rsm;theF fUtumCe gt fUtuRoyrd{b =tl rfY dY :uytih WmfUe
=h/=hJne ntde stuWmyrd{b vh gt WmfuUmc" brl "torh; :>rcf{e munwRoytg fuUyJNuM
Ctd fUtu, gr= fUtuRontu, W"thfU;tofUtu=tl rfUgt stYdt>
That in the event of there being a surplus available of the net proceeds of such
sale after payment in full of the dues of the Bank under or in respect of the said term loan
account, it shall be lawful for the Bank to retain and apply the said surplus together with
any other moneys belonging to the Borrower for the time being in the hands of the Bank in
or under whatever account as far as the same shall extend against, in or towards payment
or liquidation of any and all other moneys which shall be or may become due from the
Borrower whether solely or jointly with any other person or persons, firms or company to
the Bank by way of Loans, Discounted Bills, Letters of Credit, Guarantees, Charges or of
any other debt or liability and other obligations current though not then due or payable or
other demands legal or equitable which the Bank may have against the Borrower or which
the law of set-off of mutual credit would in any case admit and whether the Borrower shall
become or be adjudicated bankrupt or insolvent or be in liquidation or otherNise and inter-
est hereon from the date on which any, and all advances in respect thereof shall have been
made at the rate/rates at which or respective rates the same shall have been made at the
rate/rates at which or respective rates the same shall have been so advanced. The residue
of the sale proceeds, if any, shall be paid to the Borrower.
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(@)(fU) gn rfUcfUtht W"thfU;toytfUtu=e stl uJtte }UK/yrd{btfUe vqJoN;ofuUv b
W"thfU;toytRmfuUtht Rmct; vh mnbr; gr; fUh;un rfUW=thfU;toYk}UK/yrd{btfUe y=tgde
by:Jt Wl vh gts y:Jt =ug ;theF fUturfUme mb; rfU; fUe y=tgde baqfUfUh;tucfU
musimt XefUmbSufUx gt fUtrN; fUh mfU;un>
(J)(A) That the Borrowers hereby agree as a pre-condition of the loan/advances given
to them by the Bank that in case the Borrowers commit default in the repayment of the
loan/ advances or in the repayment of interest thereon or any of the agreed instalment of
the loan .on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified
right to disclose or publish their names or the name of their company/firm/unit and its direc-
tors/ partners/proprietors as defaulter in such manner and through such medium as the Bank
or Reserve Bank of India in their absolute discretion may think fit.
(@)(F) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY
YfUvqJoN;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"thfU;totht tt fUe dRo/tt fUe }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zt<W"thfU;totht
"trh;/"trh; fUe stl uJtte ;mkck"e =ug;tytytih WmfuUvttl bW"thfU;totht fUe dRoaqfU(gr=
fUtuRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr= Wra;
ytih ytJgfUmbSu;tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg
rhsJocfUtht tr"f]U; rfUme yg Ysme fUturl l rtrF; mCe gt RmfUth
fUe fUtuRoCe stl fUthe =umfU;t ni&
F) W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkckr";
mqal t gt ytkfU\zt, ytih
d) Wl =trgJtfuUvttl bW"thfU;totht fUe stl uJtte aqfU, gr=fUtuRontu>
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih
ytkfU\zt mg ytih mne ni>
(iv) W"thfU;togn Jal =u;t ni rfU&
fU) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsme cfU
tht fUx fUe dRoW; mqal t ytih ytkfU\zt fUt Wvgtud ;:t mkmt"l fUh
mfU;t ni<;:t
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CHAPTER-10
F) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsmemkmtr";
mqal t ytih ytkfU\zt gt yvl utht rl rbo; WmfuUWvt=tfUtuCth;eg rhsJo
cfUtht RmfuUrtY rl r=o cfUt/rJteg mk:tytfuUrJatht:o;w; fUh
mfU;t ni>
J(b) As a pre-condition, relating to grant of the loans/advances/other non-fund based
bank of, information and data relating to the credit facility availed of/to be availed, by bor-
rower; obligations assumed/to be assumed, by borrower, in relation thereto and default, if
any, committed by borrower in discharge thereof.
(ii) Accordingly, borrowers hereby agree and give consent for the disclosure
by the Bank of all or any such;
b) the information or data relating any credit facility availed of/to be
availed, by borrower; and
obligation, as the Bank may deem appropriate and necessary, to
disclose and furnish to Credit Information Bureau (India) Ltd., and
any other agency authorised in this behalf by RBI.
(iii) Borrowers declare that the information and data furnished by borrower
to the Bank are true and correct.
a) the Credit Information Bureau (India) Ltd., and any other agency
so authorised may use, process the said information .and data dis-
closed by the Bank; and
b) the Credit Information Bureau (India) Ltd., and any other agency
so authorised may furnish for consideration, the processed informa-
tion and data or products thereof prepared by them, to banks/finan-
cial institutions and other credit guarantees, as may be specified by
the Reserve Bank of India in this behalf.
(x) Rmbrl rn; rfUme ct; fuUntu;unwY Ce ytih rcf{e fuUyr"fUth gt yg rfUme yr"fUth
vh r;Cqt CtJ ztturcl t, simt rfUQvh fUnt dgt ni, =]rck"fUhFudY at mkgkt YJkbNel he,
278
CHAPTER-10
fUaubtt ;:t ;igth btt ytr= fuUxtfUfUtugtgttg fuUn;Guv fuUrcl t cual ufuUrtY cfUfuU
nfU=th ntul ufUe r:r; bcfUfuUrtY gn rJr"mkd; ntudt rfUJn rtrF; v brfUme gr; fUtu,
stnuJn cfUfUt yr"fUthe gt fUboathe ntugt l n, Y;=Ttht =]rck"fUhFe dRomkvrt gt WmfuUrfUme
Ctd fUt rhmeJh cl tY<mt: ne cfUfUtugn yr"fUth ntudt rfUJn WmrhmeJh gt Wl rhmeJhtfUtu
nxt =ytih/gt WmfuUgt Wl fuU:tl vh =qmhufUturl gw; fUhuytih RmfUth rl gw; rfY dY rhmeJh
gt rhmeJhtfUtugn yr"fUth ntudt rfUJuW"thfU;tofuUrtY gt Wl fuUl tb b=]rck"fUhFudY at
mkgkt ;:t bNel he, fUaubtt ;:t ;igth btt ytr= fuUxtfUvh fUst fUh mfUgt Wl fUt atso
tumfUytih/gt W"thfU;tofuUgJmtg fUtuattY>cfUtht rl gw; RmfUth fuUgr; RmfUhth
bl trb; gr; btl ustYkdu>
(k) Notwithstanding anything herein contained and without prejudice to the power of
sale or any other powers, it shall be lawful for the Baok at any time or times in the event
of the bank being entitled to sell the hypothecated movable plant and machinery, stocks of
raw materials and finished goods etc. without the intervention of the Court as aforesaid to
appoint by writing under its hand a person whether the Banks Officer or employee or not to
be a Receiver or Receivers of the properties hereby hypothecated or any part thereof with
powers to the Bank to remove or obtain the removal of such Receiver or Receivers and/or
to appoint another or others in his or their places and the Receiver or Receivers so ap-
pointed shall have power for and in the name of the Borrower or otherwise to take posses-
sion and charge of the hypothecated movable plant and machinery, stocks of raw materials
and finished goods etc. and/or to carry on the business of the Borrower. The person or
persons so appointed by the Bank shall be deemed to be a person or persons named in
this Agreement.
(X) W; rhmeJh mCe fUth fuUW"thfU;tofUt Ysx btl t stYdt ytih rhmeJh fuUfUtgtuYJk
gr;f{btfuUrtY W"thfU;toyfuUtune Wth=tge ntudt>
(I) The said Receiver shall be deemed to be the Agent of the Borrower in all re-
spects and the Borrower shall be solely responsible for the Receivers acts and defaults.
(z) RmfUth murl gw; rhmeJh fUtu, cfUfuUrl =uNtfuUy"el gn yr"fUth ntudt rfUJn&
(m) The Receiver so appointed shall subject to the directions of the Bank, have power:
(i) Y;=Ttht =]rck"fUhFe dRomvrt vh fUst fUhu;:t RmW=T=ug fuUrtY Wm
fUtgtotg, fUthFtl ugt vrhmh bJuN fUhu, WmfuUCe;h stY ytih JntkWvr:; hnu
snt=]rck"fUhFudY at mkgkt YJkbNel he, fUaubtt ;:t ;igth btt fuUxtfU
gt WmfuUfUtuRoCtd hFudY nt<
To take possession of the properties hereby hypothecated and for the pur-
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CHAPTER-10
pose to enter, upon, get into and remain in the office, factory or premises
where the hypothecated movable plant & machinery, stocks of raw materi-
als and finished goods or any part thereof may situate;
(ii) W"thfU;tofuUgJmtg fUtuattY gt attl ubmntg;t fUh<
To carry on or assist in carrying on the business of the Borrower;
(iii) =]rck"fUhFudY rfUme Ce at mkgkt YJkbNel he, fUaubtt ;:t ;igth btt fuU
xtpfUfUtumtJosrl fUl ettbe gt rl se mbSti;utht ;:t Wl rl ck"l tYJkN;tuvh
rsnJn Wra; mbSt;t ntu, cuaugt cual ufuUrtY mnbr; =u<
To sell or concur in selling any of the hypothecated movable plant & ma-
chinery, stocks of raw materials and finished goods either by public auction
or by private treaty and on such terms and conditions as he shall think fit;
(iv) fUtuRoCe Yumt XnhtJ gt mbSti;t fUhursmuJn ytJgfUgt Wvgw; mbS;t ntu<
To make any arrangement or compromise which he shall think necessary
or expedient;
(v) cfUtht gtgturs; rfUme Ce yr"fUth fUt gtud fUh>
To exercise any power that may be delegated to him by the Bank.
(Z) Rm fUth murl gw; rhmeJh rfUme Ce yr"fUth fuUgtud fuUrtY Ysx, ;fUl erNgl ,
ck"fU, rtrvfU, muJfU, fUbofUth ;:t =qmhtfUtuWl N;tuvh ;:t Wl Ju;l tYJk vrhtr"gtvh
rl gturs; fUh mfU;t ni, rsnJn Wra; ;:t Wvgw; mbS;t ni>
(n) The Receiver so appointed may for the purpose of exercisi.ng any of the powers
employ agents, technicians, managers, clerks, servants, workmen and others upon such terms
and on such salaries or remuneration as he shall think fit and proper.
(K) r;Cqr; fUe rcf{e mugt yg fUth murhmeJh rsl htrNgtfUtutt fUh;t ni Wl fUt
Wvgtud rhmeJh tht Rmr;Cqr; fUe rcf{e fuUmc" bgt Rmmc" byg fUth mu;:t WmfUe
vrhtr"gtfuUCwd;tl vh rfY dY FstuoYJkttd;tfUt Cwd;tl fUhl ufuUct=, simt rfUWv-Fkz (S)
bvntufUnt dgt ni, cfUfUe cfUtgt mCe htrNgtfuUvrhmbtfUl vh rfUgt stYdt>
(o) Any money realised by the Receiver by sale of the security or otherwise shall,
after payment of all costs and expenses incurred by him relating to the sale or otherwise in
connection with this security and in payment of his remuneration be applied in or towards
liquidation of all moneys due to the Bank as hereinbefore stated in sub-clause(i).
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CHAPTER-10
(;) rmVoUWl htrNgtfUtuAtu\zfUh stuJt;J btt nwRoni, l ;tucfUytih cfUfUt
yr"fUthe ytih l ne RmfuUy"el fUtuRorhmeJh rfUme Ce r:r; brfUme fUth fUe Yume yJirAfU
ntrl fuUrtY Wth=tge gt sJtc=un ntudt, sturcf{e fuUyr"fUth fUt gtud fUh;unwY gt Rmb=e dRo
gt cfUfUtugt RmfuUy"el fUrme rhmeJh fUtu=e dRogt rJtuF fuUy"el gt fUhl ql tht =t
rfUn yr"fUthtfUt gtud fUh;unwY ntumfU;e ni, ytih cfU;:t rhmeJh ytih Wl fuUytih/gt WmfuU
Ysx gt =qmhugr; stuswl fUe gt WmfUe ytuh muW; yr"fUthtfUt gtud fUh;un, JuW"thfU;to
fuUYsx btl ustYkduytih cfU=]rck"fUhFudY at mkgkt YJkbNel he, fUaubtt ;:t ;igth btt
fuUxtfUfUt yrCd{nK fUh;unwY gt Wmucua;unwY gt Wmvh rhmeJh rl gw; fUh;unwY l ;tufUst
fUhl uJttt ck"fU=th ntudt ytih l btl t stYdt>
(p) Neither the Bank nor the Officer of the Bank nor any Receiver hereunder shall
under .any circumstances be liable except for moneys actually received or be answerable
for any involuntary losses which may happen in or about the exercise of the power of sale
or any of the powers herein contained or otherwise vested in the Bank or in any Receiver
hereunder or by virtue of these presents or by law and the Bank and the Receiver and
their and/or his agents or other persons in their or on his behalf exercising any of the powers
aforesaid shall be deemed to be the agents of the Borrowers and the Bank by entering upon
or seizing any of the hypothecated movable plant & machinery, stocks of raw materials and
finished goods or by selling the same or by appolilting a Receiver thereof shall not be or be
deemed to be a mortgagee in possession.
(:) Rmr;Cqr; fuUJ;ol fuUrtY gt W; mtJr" }UK fuUmc" bfkUvl e mucfUtgt htrN
fUe Jmqte fuUrtY gt YumeJ yg r:r;gtbfUtuRoJt= mkr:; rfY stl uvh stuRmrJtuF bmu
rfUme fUth mcr"; ntu, cfUfUtugn nfUntudt rfUJn =]rck"fUhFudY at mkgkt YJkbNel he,
fUaubtt ;:t ;igth btt fuUxtfU;:t WmfuUCt\zuRgqYJkttC fUt atsotul ufuUrtY yvl u
l trb;e fUturhmeJh YJkck"fUfuUv brl gw; fUhuytih W"thfU;torhmeJh YJkck"fUfUe rl gwr;
fuUrtY Y;=Ttht mnbr; =u;t ni>
(q) In case ofinstitution of any suit for the enforcement of this security or for the
recovery of moneys due from the company in respect of the said term loan or otherwise in
any way concerning these presents the Bank will be entitled to have its nominee ap pointed
as Receiver and Manager to take charge of the hypothecated movable plant & machinery,
stocks of raw materials and finished goods and the rents, issues and profits thereof and the
Borrower doth hereby consent to such appointment of Receiver and Manager,
(=) cfURmrJtuF fuUy"el gt fUhl ql tht r= dY rfUme yr"fUth fUt l ;tugtud fUhl u
fuUrtY ytih l ne rfUme mbg Rmr;Cqr; fUtuJr;o; fUhl ufuUrtY fUtuRofU=b WXtl unu;wJtg
ntudt, mt: ne Jn Rl bmurfUn yr"fUthtfUt gtud l fUhl umuntul uJtte rfUme ntrl fuUrtY Ce
281
CHAPTER-10
Wth=tge l n ntudt>
(r) The Bank shall neither be bound to exercise any of the powers under these
presents or by law exercisable by the Bank nor to take steps to enforce the security at any
time and shall not be liable for any loss arising for the non-exercise of any of such powers.
(") W"thfU;tocfUfUtuytih cfUtht l trb; WmfuUyr"fUthe/yr"fUtrhgtfUtuytih RmrJtuF
fuUy"el rl gw; rfY stl uJtturhmeJh gt rhmeJhtfUtuY;=Ttht yr;mknhKeg v muyr"fUthtfuU
gtgtusl mrn; yvl t yxl eorl gw; fUh;t ni stuY;=Ttht rl rbo; r;Cqr; fUtumvt fUhl u, cl tY hFl u
;:t Jr;o; fUhl ufuUrtY ytih =]rck"fUhFudY at mkgkt YJkbNel he, fUaubtt ;:t ;igth btt
fuUxtfUfUe rcf{e ntul uvh WmfuUrJtuF, cebt, n;tk;hK fUt rl vt=l fUhl ufuUrtY ytih gr=
W"thfU;tofUtuRogr;f{b fUh;t ni ;tuWmfuUmCe =trgJtfUt vttl fUhl ufuUrtY W"thfU;tofuUl tb
vh YJkWmfUe ytuh muWl mCe fUthoJtRogtYJkfUtgtufUtumvt YJkrl tvr=; fUhl ufuUrtY nfU=th
ntudt rsnJn Wra; mbS;t ntu, mt: ne Wmugn yr"fUth ntudt rfUJn RmrJtuF gt WmfUe
r;Cqr; fuUmc" brfUme fUtuxogt yg tr"fUhK fuUmbG W"thfU;tofUt r;rl "J fUhuytih cfU
fUtu;:t WmfuUtht rl gw; rfUme rhmeJh fUtuRmrJtuF tht =t mCe yr"fUthtgt rfUme yr"fUth
fUt gtud fUh;unwY W"thfU;tofuUl tb fUt mtbtg;&Wvgtud fUhu>
(s) The Borrower hereby irrevocably appoints, with power of delegation the Bank and
its Officer/s nominated by the Bank in this behal,f and the Receiver or Receivers to be
appointed under these presents to be its Attorney and in the name and on behalf of the
Borrower to execute and do all such acts, deeds and things as such attorney shall think fit
for perfecting, maintaining and enforcing the security hereby created and for executing any
deeds, assurances, transfer regarding the hypothecated movable plant & machinery, stocks
of raw materials and finished goods in case of sale and for performing all obligations of the
Borrower hereunder in the event of any breach by the Borrower with power to represent the
Borrower before any Court or other authority in connection with these presents or the secu-
rity thereof generally to use the name of the Borrower in exercise of all or any of the pow-
ers by these presents conferred on the Bank and any Receiver appointed by it.
(l ) gn r;Cqr; cfUtht yCe hFe dRogt ct=bhFe stl uJtte rfUme yg r;Cqr; gt
dthkxe gt Gr;vqr;otht gt W;=Ttht mkhrG; rfUme htrN gt Wmr;Cqr; fUe bwr;, rJrl bg gt VuUhVUth
mur;Cqt v muCtrJ; l n ntude>
(t) This security shall not be prejudiced by any other security or guarantee or in-
demnity now held or hereafter to be held by the Bank or any money hereby secured or by
any release, exchange or variation of such security.
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CHAPTER-10
Qvh WrrF; yl wmqae
THE SCHEDULE ABOVE REFERRED TO :
(fU) mkgkt YJkbNel he fUt gtuht
(a) Particulars of plant & machinery
(F) J;wytfUt gtuht
(b) Particulars of goods
RmfUe mtGe fuUv bW"thfU;tol uRmrJtuF fUtuRmbmbmuQvh rtrF; r=l , bnel uYJk
JMobrl tvr=; rfUgt ni>
IN WITNESS WHEREOF THE Baorrower has hereunto executed these presents the
day, month and year first above written.
l tux &RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
NOTE : In the event of any controversy arising out of Hindi version of this Form, the original
283
CHAPTER-10
Y/A 9ce/B
gq fUtucf UCO BANK
btkd lfU=e_ }UK fUtumwhrG; fUhlunu;w=]rck"f
YJkcne}UK hFtl
HYPOTHECATION & BOOK DEBTS TO SECURE
DEMAND CASH CREDIT
ck"fU/ The Manager,
gqfUtucf / UCO BANK
...............................................................
...............................................................
gqfUtucfUstucfUfUtherJr" (mkNtu"l ) yr"rl gb, 1985 tht g:tmkNtur"; cfUfUthefkUvl e(Wvf{bt
fUt ysol ytih yk;hK) yr"rl gb 1970 fuUy"el drX; YfUrl drb; rl fUtg ni ytih rsmfUt "tl
fUtgto tg 10, c{ u ctu l ogtu z, fUtu tfUt;t Nnh bni ;:t stuyg :tl tfu UyttJt........................................
bCecrfk Ud fUthcth fUh hnt ni (rsmuRmfu Uvat; IIcfUOOfUnt dgt ni) ytih........................................
be........................................................................... (rsmuRmfuUvat; W"thfU;tofUnt dgt ni)
fuUyl whtu" vh......................................................... br:; cfUfUeW; NtFt fUtgtotg fuUbtgb
muW"thfU;tofUtuyrd{b =tl rfUgt dgt ytih/gt }UK Jef]U; fUhl ufUe mnbr; =e dRoytih W;
NtFt bcfUfUe crngtbl fU=e }UK Ft;t Ftutt dgt>rfUme yg r;Cqr; stuvntune hFe dRo
ni gt stuRmfuUvat; cfUtht hFestYdefuUyr;rh; Wme;theF b;w; h............................
(hvgu..........................................................................................fuUJt) fuUJal vt IfUtubtkdOvh Yumu
;hefuUmumkhrG; hFt stYdt stuRmfuUvat; Wvt" YJkmkhrG; ntudt>
UCO Bank a body corporate constituted under the Banking Companies (Acquisition and
transfer of Undertakings) Act 1970 as amended by the Banking Laws (Amendment) Act, 1985
having its head Office at No. 10, B.T.M. Sarani, in the town on kolkata and carrying on
banking business amongst other places at ............................................ (hereinafter called the
Bank) having at the request of ............................................... at ..................................................
(hereinafter called the Borrowers made advance to and/or agreed to grant accommodation
to the borrowers through the Banks said branch office at ............................................... and
to open a Cash Credit account in the books of the Bank at its said branch. Secured in the
manner hereinafter provided and secured also by an On Demand Promissory Note for
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CHAPTER-10
Rs. ............................... (Rupees ......................................................................................... only)
bearing even date with these presents in addition to any other security already held or which
may hereinafter be held by the Bank.
cfUytih W"thfU;to(W"thfU;tosntkYfUmuyr"fUgr; n mkgw;;&ytih v]:fU;&mnb;
n) JuY;=Ttht rl l fUth mumnbr; nwRo&
It is agreed between the Bank and Borrowers (the borrowers where more than one
person agreeing jointly and severally) as follows:
1) gn rfUW"thfU;tofuUmCe rJ btl ;:t CtJe cne }UK, rct, htrN trtgtstuattqn YJk
=tJu, fUtuRor;fqUt CtJ ztturcl t rsmuW"thfU;totht yl wmqae fuUyl wmth ;w; rfUgt stYdt gt
rsmumbg-mbg vh cfUfUtu;w; rfUgt stYdt gt hrtN stuW"thfU;tofUtutt ntul uJtte ni gt
Wl fuUd{tnfUttht Wntg ni, gt htg mhfUth tht, Wl fuUyg rJCtdtmutg n, JucfUfUtu
=]rck"fUhFe stYkde ;:t cfUfuUmbl w=Nr;gtfUtu:b Cth Jv hFe stYde YJkcfUfUe btkd
vh cfUtgt NuMhtrN ;:t cfUfuUJ;obtl gt CtJe }UK gt =ug;t fUe awfUti;e nu;wcfUfUe rfUme
NtFt/fUtgtotg b"trhfUFt;ub(atnuCth; dKhtg bgt rfUme yg :tl vh) ;:t atnuvqKov
mugt mkgw; v mu=qmhtfuUmt: bwg gt r;CqfuUv bbwg gt mvtrJofUv mutu=TCq;
;:t mCe gts, ct, fUbeNl , ttd; fuUmt: tu=TCq; (Yxtl eo;:t d{tnfUfuUcea) Cth ;:t gg
sturfUme Ce Ft;umumkckr"; ntu;:t Rmr;Cqr; fuUhFhFtJ, hGt, mwhGt, Rmucl tY hFl u;:t
vqKo;t fuUrtY ytJgfUntugt Jt;rJfUJmqte gt ;trJ; Jmqte ;:t rfUme Ce Yumu}UK gt
=ug;t simt rfUQvh fUnt dgt ni, Jime =ug;t gt cfUtht gg rfUgt dgt ntu, YumumCe =ug;tyt
fUtucfUtht W"thfU;tofuUFt;ubl tbuzttt stYdt>
That all the Borrowers present and future book-debts bill money receivable chooses in
action and claims including in particular but without prejudice to the generality of the foregoing
and more particularly as detailed in a Schedule to be furnished by the Borrowers to the
Bank from time to time all sums due or to become due hereafter to the Borrowers from
their customers and the Government of India or the State Government through the supply
and other Departments shall be hypothecated to the Bank and its assigns by way of first
charge as security for the payment to the Bank on demand of the balance at any time at
debit of the said account and also for the payment and discharge of the Borrowers present
and future indebtedness and liabilities to the Bank of any kind in any manner and in respect
of any account at any office of the Bank (whether in Republic of India or elsewhere) and
whether solely or jointly with others and whether as Principal or as surety whether primary
or collateral accrued and accruing together with all interest discount commission cost (between
Attorney and Client) charges and expenses in relation to any such account and for the
preservation, protection, defence and perfection of this security or for attemped or actual
285
CHAPTER-10
realisation and any such indebtedness or liability as aforesaid payable to or incurred by the
Bank all of which may be debited to the said account.
2) gn rfUCth;eg rhsJocfUfUe =h mu................................%yr"fU=h vh gts/fUbeNl /Cth
vh;wgql ;b...............................%r;JMofUe =h mubtrmfU/r;btne/Abtne NuMfuUyt"th vh r;r=l
fuUNuMfuUyl wmth ytvrt; htrN cfUfuUvG bRmFt;uvh ;:t r;btn fuUyr;b fUtgor=Jmvh
Ctrh; gt yg:t cfUfUe :t fuUyl wmth Ctrh; rfUgt stYdt sc ;fUrfUcfUtgt vqKo;&awfU;t
l ntustY ;:t sc Ce btkd fUe stY W"thfU;totht r=gt stYdt JN;rfUWvgwo; gts =h/
fUbeNl /Cth cfUtht mkNtur"; l rfUgt stY gt cfUfuUJrJJufUvh c\Ztgt l stY, rsmfUe mqal t
W"thfU;tytfUtucfU=udt gt mbg-mbg vh Ct.rh. cfUtht c\Ztgt st;t ni ;:t Yume J]r mu
W"thfU;tomnb; ntdu;:t gts =h/fUbeNl /Cth bfUtuRoJ]r gt mkNtu"l ntu;t ni ;tuRmfUhth fuU
cthubgn mbSt stYdt rfURmfUth fuUmkNtur";/Jr"o; gts/fUbeNl /Cth Y;=Ttht WrrF; :u
;:t W"thfU;toRnawfUtl ufuUrtY mnb; ni ;:t Y;=Ttht gumCe r;Cq; n>
That interest/commission/charges at the rate of ........................ % overthe Reserve Bank
of India rate with a minimum of ........................ % per annum with monthly/quarterly/half yearly
rests shall be calculated on the daily balance in the Banks favour due upon the said account
and charged on the last working day of each month or otherwise in accordance with the
practice of the Bank until the same is fully liquidated and shal! be paid by the borrowers as
and when demanded by the Bank, PROVIDED HOWEVER that the above rate of interest/
commission/charges may be revised or increased by the Bank either in its sole discretion of
which notice shall be given to the Borrowers or in accordance with the directives of Reserve
Bank of India issued from time to time and the Borrowers hereby agree to such revision
and increase in the rate of interest/commission/charges and this Agreement shall be construed
as if such revised or increased rate of interest/commission/charges were mentioned herein
and agreed to be paid by the Borrowers and are hereby secured.
3) gn rfUcfUJrJJufUfuUyt"th vh W"th =ul ugt W"th sthe hFl ufuUrtY J;kt ni ;:t
rfUmeCer:r; bYfUmbg bgts fu Umt: ................................................... (hvgu............................
........................................................) gt..............................................%fuUchtch htrN stucne
}UK fUe fwUt htrN fuUchtch ntude stumbg-mbg vh Wvt ntude ;:t stuCe htrN fUb ntude Wm
htrN fUtu;:t cfUtgt rct fUe mqae fuUyl wmth htrN fUtuW"thfU;totht cfUfUtu;w; rfUgt stYdt>
That the Bank shall not be required to make or continue advances otherwise than at
the Banks discretion and in no circumstances to an amount at anyone time exceeding with
interest .............................................. (Rupees. ...........................................................) or the
equivalent of ................................... percent of the aggreegate amount of the said book-debts
as from time to time existing whichever sum may be the less and as per schedule of bills
286
CHAPTER-10
outstanding to be furnished by the Borrowers from time to time to the Bank.
4) gn rfUcfUtht btkd rfY stl uvh Wmmbg cfUtgt v\ze htrN fUe W"thfU;toCwd;tl fUhudt
;:t stuhtrN cfUfUtuWmFt;uvh tg ntude, stuhtrN gts/fUbeNl /Cth simt rfUWvgwo; =h
bWuF ni Jn htrN Cwd;tl fuUr=l fUtucfUfUtugts mrn; =ug ntude>
That on demand being made by the Bank the Borrowers will pay to the Bank the
Balance then outstanding and payable to the Bank on the said account inclusive of interest/
commission/ charges at the rate above mentioned to the date of payment.
5) gn rfUY;=Ttht r;Cq; htrN fUe awfUti;e bW"thfU;toaqfUfUh;t ni gt Jn RmfUhth fuU
y;do; cfUfuUr; rfUme Wth=trgJ fuUrl Jonl baqfUfUh;t ni gt gr= Yume vrh:r; yt st;e
ni stur;Cqr; fUtusturFb bztt =u;t ni, cfUW"thfU;tofUe sturFb vh ;:t FauobW"thfU;tofUe
Yxtl eofUe nirmg; mugt yg:t JJ tumfuUdt ;:t gt rhmeJh rl gw; fUhudt gt =tJt fUhudt, mqal t
=udt ;:t W"thfU;tomubtkd fUhudt ;:t ;];eg vG fUtursbu=th XnhtYdt WmmuJmqt fUhudt ;:t
mkckr"; hme= =udt ;:t rcf{e fUhudt gt mtJosrl fUl ettbe fuUbtgb muJmqte fUhudt gt gr;d;
fUhth gt yg:t rcf{e fUhudt gt rfUme ykN fUt gt mCe }UK gt =uJufUtuttdqfUhudt, RmfUt rl vxtl
fUhudt gt ytrJox[uNl fUtuurM; fUhudt, Wmr;Cqr; fuUrtY W"thfU;tofuU=trgJ fUtuvqht fUhl ufuUrtY,
yr"fU;tocntt fUhudt, gt yg:t RmbmurfUme Nr; fuUgtud fuUrtY ctg l ntufUh gt RmfuU
gtud munwRoGr; fuUrtY =tge l n ntudt ;:t cfUfuUyr"fUth CtrJ; l n ntdu;:t btbtt =tgh
nu;wGr;vqr;ofuUrtY =tge l n ntudt gt yg:t ;:t Rmct; fuUntu;unwY Ce fUtuRobtbtt tkrc; ni
gt W"thfU;toyk;hK ;:t vuN fUhl ufuUrtY mkckr"; rJtuF, vt fUhl unu;w;igth ntu;t ni ;:t cfU
tht =e dRohme= stu}UK fUe Jmqte Jv ntude WmuJefUth fUhl ufuUrtY ;igth ntudt ;:t Rmb
gr= fUtuRohtrN fUb v\z dRontu;tuWmuawfUtl ufuUrtY ;igth hnudt ;:t WmucfUfUe Jef]Ur; fuU
y"el ;:t r;Cqr; rJtuF fUtucfUfUe }UK gt =tJufUtuawfUtl ugt vqKo;&awfU;t fUhl ufuUrtY
rJNuMv muWr fUhudt ;:t W"thfU;tor;Cqr; vh fUtuRoCth gt d{nKtr"fUth m]ra; l ni fUhudt gt
rJkdb Wvt l n fUhudt ;trfUJn Ctrh; ntugt WmfUt fUtuRoykN CtrJ; ntuytih Yumt fwUA Ce
l n fUhudt stuRmr;Cqr; fUtuCtrJ; fUhu>
That in case of any default of the Borrowers in payment of any money hereby secured
or the performance of any obligation to the Bank under this agreement or the occurrence of
any circumstances in the opinion of the Bank endangering this security the Bank shall be
entitled at the Borrowers risk and expenses as attorney for and in the name of the Borrowers
or otherwise to take possession and or appoint receivers of any debts or claims under this
security give notices and demands to debtors and third parties liable therefor due for recover
receive and give receipts for the same and sell or realise by public auction or private contract
or otherwise dispose of all or any part of such debts or claims and enforce settle compromise
submit to arbitration or deal in any manner with any debts of claims under this security and
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CHAPTER-10
to complete any engagement of the Borrowers through Agents Managers or otherwise without
being bound to exercise any of these powers or being liable for any loss in the exercise
thereof and without prejudice the Banks rights and remedies of suit or otherwise and
notwithstanding there may be any pending suit or other proceedings the Borrowers undertaking
to transfer and deliver to the Bank all relative documents and papers and agreeing to accept
the Banks accounts of receipts from realisations as sufficient proof of amounts realised and
relative expenses and to pay any shortfall or deficiency thereby shown provided that subject
to these powers of the Bank the Borrowers may with the approval of the Bank deal with the
said debts and claims in due course of business on the express understanding that the same
and all proceeds thereof and documents therefor are always kept distinguishable and held
as the Banks exclusive properly specifically appropriated to this security to be dealt with
only under the direction of the Bank and the Borrowers shall not create or suffer any charge
lien or encumbrance to affect the same or any part thereof nor do allow anything that may
prejudice . this security.
5(fU) cfUfUe cfUtgt ;:t =ug ytih cfUtht tt fUe dRofUtuRoCe htrN Wmv bgtud bttRo
stYde rsmucfUyvl umkvqKorJJufUtl wmth rJNuMv murl "torh; fUhudt (rmJtg RmfuUrfUcfUWmuWm
yJr" ;fU;:t WmfUth muWak; Ft;ubsbt fUh mfU;t ni simt Jn mbg-mbg vh rl "torh;
fUhu)>
W; ;g vh r;fqUt CtJ ztturcl t tt "l rl l rtrF; fUth mumbthturs; rfUgt stYdt>
i) mcmuvntul fU=e rl r" fUe Gr; ytih ydtugts fuUrtY (yCtrh; gts mrn;)<
ii) =qmhu, Ctrh; gts fuUrtY<
iii) ;emhu, cfUtht rf Y dY Fatu, ttd;tytih CthtfuUrtY<ytih
iv) yk;;&cfUtgt bqt"l fuUrtY>
5(a) Any money due and payable to the Bank and received by the Bank shall be applied in
such order as the Bank in its absolute discretion may from time to time conclusively determine
(save that the Bank may credit the same to a suspense account for so long and in such
manner as the bank may from time to time determine). Without prejudice to the above, the
monies received shall be appropriated in the following manner:
interest);
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6. rfUW"thfU;toyvl t fUthtucth rl vwK;t mufUhudt ;:t Jn mCe rJJhK tuFt rJtuF ;:t mqal t
;w; fUhudt YJkmgtrv; fUhudt ;:t cfUfUe ytJgfU;t fuUyl wmth mCe rJtuF rl vtr=; fUhudt ;:t
W"thfU;tocfUfUtutr"f]U; fUh;t ni rfUJn Wl fuUYsxt;:t l trb;e fUtuytuh muWl fUe Yxtl eofUe
nirmg; muW=thfU;tofuUfUtgofUtufUhudt>
That the Borrowers will carry on business effeciently and will furnish and verify all
statements reported accounts documents and information execute all documents and do all
things which the Bank may require to give effect hereto and the Borrowers authorise the
Bank and each of its agents and nominees as Attorney for and in the name of file Borrowers
to do whatever the Borrowers may be required to do hereunder.
7. Rmct; fuUhn;unwY Ce rfUrfUme Ce mbg Ft;ubl tbusbt ntugt fUtuRoytkrNfUCwd;tl
ntugt fUtuRoW;th-a\ZtJ ntu, gn fUhth mCe }UK cfUtgt ;:t =ug;t fuUrtY at r;Cqr; fuUv b
fUtgb hnudt>
That this agreement shall operate as a continuing security for all moneys indebtness
and liabilities aforesaid notwithstanding the existence of a credit balance on any account at
any time or any partial payment or any fluctuations of accounts.
8) gn rfUrJ btl mCe }UK YJk=tJu(W"thfU;toyttht ;w; mbgmqae gt mbg-mbg vh ;w;
mbg mqae fuUyl wmth) W"thfU;tofUe vqKomvrt ni ;:t W=thfU;toRl fuUrl vxtl fuUrtY J;kt n
;:t gurfUme rJkdb gt vqJoCth mubw; n ;:t mCe CtJe }UK ;:t =tJu, RmfUth gumCe
W"thfU;tofuUrtY rJkdb hrn; vqKo;:t rl vxtl gtug mvrt ntude>
That all the said debts and claims now existing (as per schedule furnished or to be
furnished from time to time by the Borrowers) are the absolute property of the Borrowers at
the sale disposal of the Borrowers and free from any prior charge or encumbrance and that
all future debts and claims hereunder shall likewise be the unencumbered absolute and
disposable property of the Borrowers.
9. cfUfuUr; W"thfU;tofUt }UK gt =ug;t fuUrtY J;obtl gt CtJe r;Cqr; dthkxe =ug;t gt
rzf{e cfUfuUyr"fUth gt r;fUth vh r;fqUt CtJ l n zttudt ;:t gn rfUcfURmct; fuUrtY
J;kt ntudt rfUW"thfU;tofUe cfUtgt htrN fuUCwd;tl fuUrtY WmfuUl tb tg sbt gt W"thfU;tofuU
l tb sbthtrN fUtumbtgturs; fUhu;:t RmfuUct= Ce gr= fUtuRohtrN cfUtgt v\z st;e ni ;tuWmfUt
mbtgtusl Ce fUhu;:t Yumt fUhl uvh cfUfuUJJ YJkr;fUth vh fUtuRor;fqUt ymh l n v\zudt>
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That nothing herein shall prejudice the Banks rights or remedies in respect of any
present or future security guarantee obligations or decree for any indebtedness or liability of
the Borrowers to the Bank and that the Bank shall be at liberty to apply any other money
in the hands of the Bank standing to the credit of or belonging to the Borrowers in or towards
the payment of the balance and in the event of there being still a deficiency the Borrower
shall forthwith pay such deficiency, provided that nothing contained herein shall in any manner
prejudice or effect the Bank remedy against the person of the Borrower.
10. rfUgn r;Cqr;, rfUme Ce yg r;Cqr; gt dthkxe yCe gt RmfuUct= stucfUtht "trh;
ntudt gt r;Cq; ntudt gt bw;, rJrl bg gt rsmbVuUhVUth ntudt Wmmugn r;Cqt v muCtrJ; l n
ntude>
That this security shall not be prejudiced by any other security or guarantee now or
hereafter held by the Bank for any money hereby secured or by any release, exchange or
variation of such other security or guarantee.
10.(fU) sc ;fUcfUfUtumCe htrNgtfUt Cwd;tl l n rfUgt st;t, Ctune Jn vntufUe ntugt
J;obtl fUe gt CrJg b=ug ntu, Jt;rJfUgt ytl wMkrdfUntu, stuW"thfU;totht =ug ntugt rsmfuU
rtY W"thfU;toY;=T"el gt yg:t =tge ntudt gt ntumfU;t ni ytih Ctune Jn bqt"l ntugt r;Cq,
W"thfU;toRmfuUrtY mnb; ni rfUcfUW"thfU;tofuUrfUme Ce Ft;ubgt fUth mugt gtusl mu
cfUfuUvtmrfUme Ce mbg sbt mCe r;Cqr;gtytih/gt htrNgt, Juatnusime Ce ntu, fUtumbkrs;
fUhl ufUt yr"fUth ytih/gt Wl vh rtgl hFudt>cfUfUtuRmct; fUe J;kt;t ntude rfUJn W;
r;Cqr;gtytih/gt htrNgtmuW"thfU;tofuUW; =trgJtgt =ug;tytfUtuWbtura; fUhuytih begt=e
sbthtrNgtfuUbtbtub, Ctune Jn Cwd;tl nu;wvrhvJ nwRontugt l n, (ytih Jt= =tgh fUhl u
gt fUtuRorJr"fUfUtgoJtne Nw fUhl ufuUvntugt ct=b) yvl utht Wra; mbSudY ;hefuUmu;:t
W"thfU;tofUtumqal t r=Y rcl t Wnmbtgturs; fUh tugt Jmqt fUh tu>cfUyvl um=TCtJ muyvl u
tht ytfUrt; htrN fUtu=ug;t fUe htrN fuUv bmbkrs; fUh mfU;t ni>
10 (a) Until payment is made to the Bank of all the amounts, whether past present or future,
actual or contingent, which may be payable by the borrower or for which the borrower may
be or become liable hereunder or otherwise and whether as principal or surety, the borrower
agrees that the Bank shall have a lien and/or right of set off on all securities and/ or monies
whatsoever held at any time by the Bank on account of or to the credit of the Borrower in
or for any account or manner or purpose howsoever. The Bank shall be at liberty to discharge
the said obligations or liabilities of the borrower out of the said securities and/or monies,
and in case of term deposits, whether the same have matured for payment or not, and may
appropriate or realise them in the manner thought fit by it and without notice to the Borrower
(and whether before or after filing suit or taking any legal proceedings). The Bank may set
off an amount estimated by it in good faith to be the amount of that obligation.
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10.(F) (i) YfUvqJorl "torh; N;ofuUv bcfUW"thfU;tofUtu}UK/yrd{b/yg dih-rl r" yt"trh;
}UK mwrJ"t =tl fUhl ufuUbtbtubW"thfU;tomugn mnbr; tt fUhl t atn;t ni rfUW"thfU;totht
tt/tt fUe stl uJtte }UK mwrJ"tyt, W"thfU;totht vttl rf Y dY/vttl rfY stl uJttu=trgJt,
Wl fUt rl Jton fUhl ufuUbtbtubW"thfU;totht fUe dRorfUme fUth fUe aqfU(gr= fUtuRontu), mu
mkckr"; mqal t ytih ytkfU\ztfUtucfUfUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toRmct; mumnb; ni ytih rl l rtrF; mCe gt rfUme mqal t fUtu
cfUtht fUx rf Y stl ufUe Y;=Ttht yvl e mnbr; =tl fUh;t ni&
fU) W"thfU;tomumkckr"; mqal t YJkytkfU\zu<
F) W"thfU;totht tt/tt fUestl uJtte}UK mwrJ"tytmumkckr"; mqal t gt ytkfU\zu<
d) cfUtht Wra; YJkytJgfUmbSudY ytih W"thfU;tofUtumtvudY =trgJtfuU
yl wvttl bW"thfU;totht fUe dRoaqfU, gr= fUtuRontu, fUtu}UK mqal t gqhtu
(Cth;) rt. YJkCth;eg rhsJocfUtht RmfUe ytuh mutr"f]U; rfUme yg
yrCfUhK fuUmbG fUx fUhl t YJk;w; fUhl t>
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWl fuUtht cfUfUtu=e dRomqal t YJkytkfU\zt mg
YJkmne ni>
(iv) W"thfU;togn Jal =u;t ni rf &
fU) }UK mqal t gqhtu(Cth;) rt. YJkRmgtusl mutr"f]U; fUtuRoCeyg yrCfUhK
cfUtht fUx fUe dRoW; mqal t YJkytkfU\ztfUt Wvgtud fUh mfU;t ni ytih
Wmvh fUthoJtRofUh mfU;t ni YJk
F) }UK mqal t gqhtu(Cth;) rt. YJkRmgtusl mutr"f]U; fUtuRoyg yrCfUhK
yvl utht ;igth fUe dRomkmtr"; mqal t YJkytkfU\zugt Wvt=fUtucfUt/ rJteg
mk :tytYJkCth;eg rhsJocfUtht Rmgtu sl t:orJrl r=o yg }UK dthk xefU;to yt
fUturJatht:o;w; fUh mfU;t ni>
10(b) (i) As a pre-condition, relating to grant of the loans/advances/other non-fund based
bank of, information and data relating to the credit facility availed of/to be availed, by borrower;
obligations assumed/to be assumed, by borrower, in relation thereto and default, if any,
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CHAPTER-10
b) the information or data relating to any credit facility availed of/to be
availed, by borrower; and
and furnish to Credit Information Bureau (India) Ltd., and any other
agency authorised in this behalf by RBI.
(iii) Borrowers declare that the information and data furnished by borrower to the
Bank are true and correct.
(iv) Borrowers undertake that:
authorised may use, process the said information and data disclosed by
the Bank; and
authorised may furnish for consideration, the processed information and
data or, products thereof prepared by them, to banks/financial institutions
and other credit guarantees, as may be specified by the Reserve Bank
of India in this behalf.
11. btkd fuUv bfUtuRomqal t gt yg:t cfUtht W"thfU;tofUtur=gt st mfU;t ni gt rfUme
Ce gr; fUtustuW"thfU;tofUt mngtude ntugt W"thfU;tofuUWmmbg fuUr=Y dY v;uvh gt
gJmtg :tl vh gt Cth; brhntgNe v;uvh r=gt st mfuUdt gt rfUme Ce Yumugr; fUtugt
W"thfU;tofuUv;uvh ztfUmuCust st mfuUdt gt rfUme gr;/gr;gtfUtuRmfUth CusudY vtt
fuUcthubgn mbSt stYdt rfUJuW"thfU;tofUtuCus r=Y dY n ;:t gr= Yumt vt cfUfuU
yrCfU;togt ck"fUtht n;tGrh; ntu;t ni YJkbtrK; ntu;t ni ;tuYumuztfUfUtubtrK; ytih ykr;b
mbSt stYdt>gr= rfUme fUthKJN Jn W"thfU;toCth; dKhtg bl n ni ;:t WnWvgwo; mqal t
l n =e st mfU;e ni ;tuYfUrJttvl fuUv bmqal t fUtuWmfuUmkckr"; rstubmtrh; mbtath
vt bfUtrN; rfUgt stYdt ytih gn rfUme Ce mbtath vt bfUtrN; rfUgt stYdt ytih rsm
r=l tkfUfUtugn mqal t fUtrN; ntude Wmr=l tkfUfUtugn mqal t mqra; mbSe stYde ytih gn ykr;b
btK ntudt>fUtuRoCe mqal t Wvgwo; rfUme Ce fUth muW"thfU;togt WmfuUmkckr"; gr; fUtur=gt
st;t ni ;tuWmuW"thfU;toYJkmkckr";tfUtumqra; mbSt stYdt>
Any notice by way of request demand or otherwise hereunder may be given by the
Bank to the Borrowers or to any of the individual constituting the Borrowers personally or
may be left at the then or last known place of business or residence in the Republic of
India of the Borrowers or any of such individuals or may be sent by post addressed to the
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CHAPTER-10
Borrowers or any of such individuals at the then or last known place of business of the
Borrowers of any of such individuals and if sent by post it shall be deemed to have been
given at the time when it would be delivered in due course of post and in proving such
notice when given by the post it shall be sufficient to prove that the envelope containing the
notice was posted and a certificate signed by the bank of its Agent or Manager that the
envelope was so posted shall be conclusive, if by reason of absence from the Republic of
India or otherwise the Borrowers or any of such individuals cannot be given any such notice
in manner aforesaid the same if interested once as an advertisement in a newspaper
circulating in the District of the said branch office of the Bank shall be deemed to have
been efficiently given and received on the day on which such advertisement appear. Any
notice served in any manner aforesaid on any of the individuals constituting the Borrowers
shall be deemed to have been served on all of such individuals.
W"thfU;tofuUn;tGh
r=l tkfU/ Date : ....................................
l tux &RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
NOTE : In the event of any controversy arising out of Hindi version of this Form, the original
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CHAPTER-10
Y-9me (veYbytJtRo)/A-9C (PMRY)
gq fUtucf UCO BANK
fUtgofUthevqse/begt=e}UK mwrJ"t YJk=]rck"f
nu;wrbtt swtt fUhth
COMPOSITE AGREEMENT FOR WORKING CAPITAL/TERM LOAN
FACILITIES AND HYPOTHECATION
yts r=l tk fU.............................................................20 .........................fUtuYfUyti h e/ eb;e/
fwU0 / bummo.....................................................................................................................................
............................................. rl Jtme (vqht v;t) ............................................................
...................................................................................................................................................bu mmo
stu..................................................................................................................................................l tb
YJkNite fuUy"el .........................................................................................................................
(Ctde=thtfuUl tb)
.......................................................................................................................................................
.......................................................................................................................................................
yvl t gtvhth fUh hnun YJkWl fUt bwg fUtgo:t.................................................................ni>
(rsnRmbRmfuUvat;TIIW"thfU;toOOfUnt dgt ni ytih sc ;fURmyrCgr; fUtunxtgt l stY
gt fUtuRoct; mk=CofuUrJh l ntu;c ;fURmfuUy;do; WmfuU/WmfUe, rl vt=fU, NtmfU, r;rl r",
Wthtr"fUthe ytih mbl w=urN;e Ntrbt mbSustYkdu) ;:t =qmhe ytuh gqfUtucfUfuUcea<stucfUfUthe
rJr" (mkNtu"l ) yr"rl gb, 1985 tht g:tmkNtur"; cfUfUthe fUvl e (Wvf{btfUt ysol ytih yk;hK)
yr"rl gb, 1970 fuUy"el drX; YfUrl dorb; rl fUtg ni ytih rsmfUt "tl fUtgtotg 10, rJj ce
tittug bnthts mhKe (c{uctul o htuz) fUtutfUt;t bni ;:t rsmfUe YfU NtFt yg :tl tfuU
yttJt...............................................................buCe ni>(rsmuRmbuRmfuUvat;TIIcfUOOfUnt
dgt ni ytih sc ;fURmyrCgr; fUtunxtgt l stY gt fUtuRoct; mk=CofuUrJh l ntu;c
;fURmfuUy;do; WmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt mbSustYkdu)<rl vtr=; rf Y stl uJttu
fUhth fuUy;rl ogb cl tY st;un>
ARTICLES OF AGREEMENT made this .................................................................. day
of ....................................................................................... 20 ............. BETWEEN Mr./Mrs./Miss/
M/s. ...............................................................................................................................................
residing at (full address) ...............................................................................................................
.........................................................................................................................................................
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Messers .........................................................................................................................................
(partners names)
.......................................................................................................................................................
.........................................................................................................................................................
carrying on business inco-partnership under the name and style of .......................................
........................................................................................................................ having its principal
place of business at ................................................................................................... (hereinafter
referred to as the Borrower, which expression shall unless excluded by or repugnant to the
context be deemed to include his/her/its/their heirs, executors, administrators, representatives,
and assigns) of the One Part and UCO Bank, a Body Corporate constituted under The
Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 as amended by the
Banking Laws (Amendment) Act, 1985 having its Head Office at No.10, Biplabi Trailokya
Maharaj Sarini (Brabourne Road) Kolkata and a branch office amongst other places
at................................................................................................... (hereinafter referred to as the
Bank, which expression shall unless excluded by or repugnant to the context be deemed to
include its successors and assigns) of the Other Part.
aqrfUW"thfU;toYfUcuhtusdth gr; ni ytih Jgk
fUtu................................................................ fuUttCfUthe ""ubtdtl t atn;t ni>
ytih aqrfU W"thfU;to l ucfU muyl whtu" rfUgt ni rfU Wmu"tl bkte htusdth gtusl t fuU
y"el .......................................................h. (....................................................................................hgvu )
fUt mkrb }UK =tl rfUgt stY rsmmurfUW"thfU;toyvl e gqrl x fUe fUtgofUthe vqkse fUe yvuGtyt,
bNel /WvfUhK, Nuz/CJl sime vqksed; ytr;gtfuUysol /vrhrl btoK/rl btoK fUe cfUtht g:trl "torh;
ttd; fUtuvqht fUh mfuU;:t yvl uyrl Jtgogql ;b WvCtud/ytfUrbfUsh;tfUtuvqht fUh mfuU>
WHEREAS the Borower is an unemployed person(s) intending to gainfully engage
himself/herself/themselves in .................................................................
AND WHEREAS the Borrower has applied to the Bank to grant to him/her a Composite
Loan of Rs........................................ (Rupees ................................................................................)
under the scheme of Prime Minister Rozgar Yojana (PMRY) to enable the Borrower to meet
his/her/their working capital requirements, the cost of acquisition/erection/ construction of capital
assets such as machinery/equipment, shed/building etc. as assessed by the Bank to be
required for his/her/their unit and his/her/their essential minimum consumption/contingency
needs.
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ytih aqrfUW"tfUh;tol ur=l tkfU........................................................... fuUyvl u}UK ;tJ,
rsmfUe YfUr; RmfUhth fuUmt: mktl ni (rsmuRmbRmfuUvat;TOOW"thfU;tofUt ;tJOOfUnt
dgt), fuUyt"th vh ytih WmbWvJrKo; gtusl tfuUrtY "tl bkte htusdth gtusl t (bhtugtu) fuU
y"el .......................................... h. fuU}UK nu;wcfUfuUvtmytJu=l rfUgt ni>
AND WHEREAS the Borrower has appl i ed to the Bank for a l oan of
Rs. ............................................. upon the basis of and for the purposes set forth in the
Borrowers proposal dated............................................, a copy whereof is annexed to this
Agreement (hereinafter called The Borrowers proposal) under PMRY.
ytihaqrfUW"thfU;tofuUyl whtu" vh cfUW"thfU;tofUtuRmbRmfuUvat;TWrrF; rl ck"l ytih
N;tu vh..................................... h. fUt yrd{b/mkrb }UK fuU v bgtl e fUtgofUthe vqkse fuU
rtY.................................................. h. fUt vqhfU }UK ytih vqkse/yat ytr;gt fuU
rtY......................................... h. =ul uvh mnb; ntudgt ni>
AND WHEREAS at the request of the Borrower the Bank has agreed to advance to
the Borrower a sum of Rs.................................. by way of / Composite loan i.e. covering loan
of Rs. ...................................... for Working Capital and Rs. ............................................................
for Capital/ Fixed Assets on the terms and conditions hereinafter appearing.
y;&yc vqJofUr:; ;:tfuUr;VUtJv rl l tl wmth fUhth rfUgt st;t ni>
1. W"thfU;tofuU;tJ fUturl l rtrF; Wvt;hKtfuUy"el hn;unwY RmfUhth fUt ytih RmfuU
y"el cfUtht r=Y stl uJttu}UK fUt yt"th btl t stYdt ytih W"thfU;toRmfu Utht Rmbg:tWvt;rh;
v bWmby;rJo gufUrJJhK ytih rJrN fUe mg;t fUt mb:ol fUh;t ni ;:t Wmbr=Y dY
;tJ/Rmbg"tWvt;rh; rl "torh; ytih W"thfU;tofUe mnbr; fUtufUtgorJ; fUhl ufuUrtY Jal ck" fUh;t
ni>
NOW IT IS AGREED in consideration of the premises as follows: -
The Borrowers proposal subject to the following modifications shall be deemed to
constitute the basis of this Agreement and of the loan to be advanced by the Bank hereunder
and the Borrower hereby warrants the correctness of each and every one of the statements
and particulars therein contained as herein modified and undertakes to carry out the proposal
therein set forth/herein modified based on the assessment and consent of the borrower.
2. W"thfU;toRmfuUtht fUhth fUh;t ni rfUW; }UK Rmby;rJo rl ck"l tytih rJr"J;Tn;tGrh;
;:t cfUfUtumtvudY rfUn yr;rh; =;tJust/vtt/ttvl muy;rJo ct;tfuUyl wmth rJrl grb;
ntudt, rmJtg RmfuUrtY RmbWrrF; vhJ;eo=;tJustfUtuv v mugt ytJgfUrJJGt muRl
rJtuFttht Wvt;rh; fUh r=gt stY>
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CHAPTER-10
The Borrower hereby agrees that the said loan shall be governed by the terms contained
herein as well as those embodied, if any, additional documents/ letter/memoranda duly signed
and submitted to the Bank except in so far as the later documents may expressly or by
necessary implication be modified by these presents.
3. W"thfU;tov v mufUhth ytih Jal =u;t ni rfUW; }UK fUt Wvgtud fuUJt W"thfU;tofuU
;tJ bJrKo; ytih Rmbg:tWvt;rh; gtusl tfuUrtY ne rfUgt stYdt, rfUme yg gtusl fuUrtY
l n>
The Borrower expressly agrees and undertakes that the said loan shall be utilised exclusively
for the purposes set forth in the Borrowers proposal and as modified herein and for no other
purpose.
4. W"thfU;tofUhth ytih cal =u;t ni rfUW"thfU;tofuU;tJ bWvJrKo; gt Rmbg:tWvt;rh;
rfUn rJrNrgtfUe mg;t fUtuCtrJ; fUhl uJtte rfUme Dxl t fuUDrx; ntul uvh Jn W; Dxl t fuU
Drx; ntul ufuUmt; r=l tfuUCe;h rtrF; v bRmfUe mqal t cfUfUtu=udt>
The Borrower agrees and undertakes to notify the Bank in writing of any circumstances
affecting the correctness of any of the particulars set forth in the Borrowers proposal or as
modified herein within seven days after occurrence of any such circumstance.
5. Y;=Ttht W"thfU;to=]rck"fUhF;t ni ;:t cfUfuUvG b:b d{nKtr"fUth rl vtr=; fUh;t ni>
(fU) W"thfU;tofuUmCe J;obtl ytih CtJe xtfU, atnuJufUaubtt fuUv bnt, rl btoKt"el
gt ;igth v bntytih/gt at bNel he, WvfUhK, Jtnl , vNw/vGe, ytisth, dtu=tb bhFu
dY btt YJkyr;rh; vqsuoytih/gt WvCtug J;wYk;:t mntgfUWvfUhK ytr= (Rmb
RmfuUvat;TIIW; J;wYkOOfUnt dgt ni), rsnyCe gt RmfuUvat;Tmbg-mbg vh
r;Cqr; fuUsthe hnl ufuU=tihtl ttgt stYdt, dtu=tb bhFt stYdt gt stuW"thfU;tofuU
fUtgo-:tl b, gt WmfuU=tghubmkd{nK :tl b, gJmtg vrhmh b, rl Jtm-:tl bgt
ygt fUn ntu(RmbYume J;wYkCe Ntrbt ni stubtdo: gt rJthKt"el nt)>
RmbsntkfUn IIJ;wYkOON= ytgt ni, WmfUt y:og"tr:r; fwUfwUx, zuhe, vNwytr=
ntudt ytih Rl bmumCe Ntrbt ntdu>
The Borrower(s) hereby hypothecate(s) and charges by way of first charge to and in
favour of the bank:
(a) The whole of the Borrowers present and future stocks whether raw, in process
of manufacture or in finished form and/or movable machinery, equipment, vehicles,
animals/birds, tools, stores and spares and/or consumable articles and accessories
etc. (hereinafter referred to as the said goods) which now or hereafter from time
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to time during the continuance of the security shall be brought into, stored or be
in or about the Borrowers work place, storage place, business premises, residence
or wherever else the same may be (including any such goods in course of transit
or delivery).
The term Goods wherever it occurs herein shall mean and include poultry, dairy
etc. as the case may be.
ytih
(F) W"thfU;tofuUmCe J;obtl ytih CtJe cne }UK, cfUtgt "l , tg =tJu, rct, mkrJ=t,
Jal , r;Cqr;, rl JuN yr"fUth ytih yg mCe at ytr;gt(rsnRmbRfuUvat;T
IIW; cne }UKOOfUnt stYdt)>
W; J;wytytih cne }UK =tul tfUtu, simt rfUyl wmqae bmtbtg v=bJdeof]U; rfUgt
dgt ni, IIr;Cqr;OOfUnt stYdt YJkRmfuUtht Wl nW"thfU;totht cfUfuUvtmmkrb
}UK fuUy"el rfUme mbg =ug mCe "l fuUCwd;tl fuUrtY r;Cqr; fuUv b;:t cfU
fuUr; W"tfUh;tofUe mCe }UKd{;;t gt =trgJ fuUCwd;tl ytih awfUti;e fuUrtY YJk
Wmmumkckr"; mCe gts, ct, fUbeNl , Cth ;:t cfUtht =ug gt Wvd; mCe ttd;
;:t FaofuUrtY Ce r;Cqr; fuUv bhFt st;t ni>
AND
(b) All the Borrowers present and future book debts, outstanding moneys, receivable
claims, bills, contracts, engagements, securities, investments, rights and all other
movable assets (which shall hereinafter be referred to as the said book debts)
Both the said goods and book debts shall be referred to as security as classified
in general terms in the Schedule and shall stand as security for the payment by
the Borrower to the Bank of all moneys at any time payable by the Borrower to
the Bank under the composite loan and also as security for the payment and
discharge of all indebtedness or liability ofthe Borrowerto the Bank with all interest,
discount, commission, charges, cost and expenses payable or incurred by the Bank
in relation thereto.
6. (fU) W"thfU;toyvl t gJmtrgfUfUtgofUttv fwUNt;tvqJofUfUhudt ytih xtfU, rJf{g, f{g, =ul =th,
tul =th mumkckr"; mCe rJJhK, rhvtuxo, tuFt, =;tJus ytih mqal tYk=udt ;:t RmfuUy"el
WnCtJe cl tl ufuUrtY cfUtht g:tvurG; mCe =;tJus rl vtr=; fUhudt YJkmCe
fUtgofUhudt>
(a) The Borrower will carry on his business activity efficiently and will furnish all
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statements, reports, accounts, documents and information in regard to stocks,
sales, purchases, creditors, debtors and will also execute all documents and do
all acts and things which the Bank may require to give effect hereto.
(F) gr= cfUfuUrl gbtfuUyl wmth gt Cth;eg rhsJocfUfuUyl w=uN/btdorl =uoN fuUyl wmth
cfUtht yvuGt fUe stY ;tuW"thfU;tonh mbg cebt fUhtl ugtug J;wytfUtuytd mu
ntul uJtte ntrl gt Gr; fuUrJh ytih cfUfuUrl gbtl wmth cfUtht g:tvurG; yg
F;htfuUrJh cebt fUhtfUh hFudt/hFduytih Yume mCe vtrtrmgtkcfUfUtumtv =udt/
=du>cfUfuUrtY Ce gn rJr"vqKontudt turfUl ctgfUthe l n ntudt rfUJn Yume r;Cqr;
fUt stucebt fUhtl ugtug ni, IIW"thfU;toOOfuUFt;ubl tbuzttfUh cebt fUhtY ytih Wl n
cebtf]U; hFu>Yume cebt fuUytdb fUt Wvgtud cfUfuUrJJufUtl wmth gt ;tur;Cqr; fuU
r:tvl fuUv bgt WmfuUy"el cfUfuUcfUtY fuUNtu"l fuUrtY rfUgt stYdt>
(b) The Borrower(s) shall at all times keep such items of security as are of insurable
nature, insured if so required by the Bank in accordance with their Rules or RBIs
instructions/guidelines against loss or damage by fire and other risks as may be
required by the Bank with Bank clause and shall deliver to the Bank all such
policies. It shall be also lawful for but not obligatory upon the Bank to insure and
keep insured by debit to the Borrowers accounts the security as are of insurable
nature. The proceeds of such insurance shall at the option of the Bank either be
applied towards replacement of the security or towards the satisfaction of the
Banks dues hereunder.
7. gn rfUcfUgt WmfuUyrCfU;togt muJfUrl l rtrF; fuUrtY nfU=th ntduvh JuYumt fUhl u
fuUrtY ctg l n ni gt WmfuUfUthK munwRorfUme ntrl fuUrtY Wth=tge l n ni ytih WmmuJt=
=tgh fUhl ufuUWl fuUyr"fUthtytih Wvathtvh gt yg:t fUtuRor;f]U; CtJ l n v\zudt>
That the Bank or its agents or servants without being bound to do so or being liable
for any loss on account thereof and without prejudice to the rights and remedies of suit or
otherwise shall be entitled to :
(fU) W"thfU;to(W"thfU;toyt) fUtumqra; rfY rcl t ytih W"thfU;to(W"thfU;toyt) fuUsturFb YJk
fUAovh Yumu:tl (:tl t) vh JuN fUhl ufuUrtY sntkr;Cqr; ni ytih Wl fUt rl heGK,
bqgtkfUl fUhl ufuUrtY, cebt fUhtl ufuUrtY ;:t Wl fuUggl fUt vgoJuGK fUhl uytih/gt
Wl fUtuyvl ufUsubtul ufuUrtY<
(a) without notice to the Borrower and at the Borrowers risk and expense enter any
place(s) where the security may be and inspect, value, insure, superintend disposal
and/or take possession thereof;
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(F) gr=W"thfU;to/(W"thfU;toyt) RmfuUtht mqhrG; rfUme "l fuUCwd;tl baqfUfUh;t ni/fUh;u
n gt rfUme =trgJ fUt rl Jton l n fUh;t ni/fUh;un gt fUtuRoYume vrhr:r; Wvt ntu;e
ni stucfUfUe htg br;Cqr; fUtuF;hubztt;e ni ;tuQvh WrrF; ct;tvh fUtuRo
CtJ ztturcl t r;Cqr; fUtuyvl ufUsubtul ufuUrtY gt Wl fUe Jmqte fUhl ufuUrtY
ytih/gt WnttufUrl ttbe gt tRJux mkrJ=t tht cual ufuUrtY gt yg:t Wl fUt rl vxtl
fUhl ufuUrtY ytih Wl fuUytdb fUt rJrl gtusl cfUtgt }UK nu;wfUhl ufuUrtY<
(b) without prejudice to the foregoing on default of the Borrowers in payment of any
money hereby secured or on the non-performance of an obligation on the part of
the Borrower or on the occurence of any circumstances in the opinion of the Bank
endangering the security take possession or recover and/or sell by public auction
or private contract or otherwise deal with the security and appropriate the proceeds
to the outstanding loans;
(d) gr= W"thfU;to(W"thfU;toyt) fUt fUtuRo"l vtmbni ;tuWl fUt Wvgtud cfUtgt }UK fUe
awfUti;e nu;wfUhl ufuUrtY ytih gr= }UK fUe fUtuRoNuMhtrN hn;e ni ;tuWmuRmct;
fuUntu;unwY Ce Jmqt fUhl ufuUrtY rfUmCe gt rfUn r;Cqr; fUe Jmqte l n fUe dRo
ni>
(c) apply towards the outstanding loans any money in its hand belonging to the
Borrower and to recover the balance, if any, of the loans notwithstanding that all
or any of the security may not have been realised;
(D) r;Cqr; mumkckr"; W"thfU;to/(W"thfU;toyt) fuUrfUn yr"fUth, }UK, =tJufUt rl vxtht
mbSti;t fUhl ufuUrtY, btg:bTnu;wbtbtt ;w; fUhl ufuUrtY ytih rfUme Ce v b
tul -=ul fUhl ufuUrtY>
(d) settle, compromise, submit to arbitration and deal in any manner with any rights,
debts, claims of the Borrower relating to the security.
Qvh fUr:; mCe J;wYkytih Wl fuUrJf{g ytih cebt fuUytdb ytih Rmr;Cqr; fuUy"el
mCe =;tJustfUtunbuNt ytd muhFt stYdt ytih WncfUfUe yl g mvrt fuUv b,
rJNuMfUh Rmr;Cqr; murJrl gturs; fUhfuUhFt stYdt ytih Wl fUt rl vxtht fuUJt cfUfuUrl =uNt
fuUyl wmth rfUgt stYdt>gn rfUmCe r;Cqr;gtkbw; n ytih WncfUfuUvG fuUrmJtg yg
rfUme Cth gt rJtkdb mubw; hFt stYdt>
All the said goods and all the sale realisation and insurance proceeds thereof and all
documents under this security shall always be kept distinguishable and held as the Banks
exclusive property specifically appropriated to this security to be dealt with only under the
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directions of the Bank. That all the security are free and shall be kept free from any charge
or encumbrance except those in favour of the Bank.
7.(fU) cfUfUtu=ug ;:t cfUtht tt fUtuRoCe htrN Yumuyl wf{b byl wgw; ntudt simurfUcfU
mbg-mbg vh yvl umvqKorJJufUmuyr;b v murl "torh; fUhu(RmfuUyr;rh;, cfUsimumbg-
mbg vh rl "torh; fUhu, Rmu;c ;fU;:t rsmv batnuWsk; Ft;ubsbt hF mfU;t ni)
Wvgwo; fuUvqJtod{nK fuUrcl t, tt fUe dRohtrN fUt rJrl gtud rl l rtrF; v bntudt>
ii) r;eg;&Ctrh; gts fuUr;
iii) ;];eg;&, ttd;, Cth ;:t cfUtht WXtY dY FaeofuUr;, ;:t
7(a) Any money due and payable to the Bank and received by the Bank shall be applied
in such order as the Bank in its absolute discretion may from time to time conclusively
following manner:
interest);
8. W"thfU;toRmr;Cqr; fuUsthe hnl ufuU=tihtl rfUme mbg ytih sc ;fUW; begt=e }UK
cfUtgt ni gt sc ;fURl rJtuFtfuUy"el cfUfUt fUtuRo"l cfUtgt ni ytih/gt W; begt=e }UK
fuUctc; gt rfUme Ce fUthK mul ;tu&
The Borrower shall not at any time during the continuance of this security . and so
long as the said term loan is outstanding or so long as any money is due to the Bank
under these presents and/or in respect of the said term loan or on any account whatsoever : -
(i) rfUme at mkgkt, bNel he, WvfUhK ytih gkt fUturtrF; v bcfUfUe vqJomnbr; fuU
rcl t nxtYdt gt nxJtYdt gt nxtl ufUtuyl wbr; =udt, rmJtg Wl btbttfuUsntkYumuat
mkgkt, bNel he ytih WvfUhK fuUxqx-VqUx stl ugt Gr;d{; ntustl ugt WfUmtl vnwkal ufuU
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fUthK Wl fUt nxtl t ytJgfUntustY&ytih YumubtbttbJn xqxu-VqUxugt Gr;d{; at
mkgkt, bNel he ytih WvfUhK fUtumbtl Jv ytih bqg fuUat mkgkt, bNel he ytih
WvfUhK tht r;:trv; fUhudt>
Remove or cause or permit to be removed any movable plant, machinery,
equipment and appliance without the previous consent in writing of the Bank
except in case where such removal shall be rendered necessary by reason of
any such movable plant, machinery, equipment being worn out or injured or
damaged and in such cases will replace the movable plant, machinery, equipment
so worn out or injured or damaged by others of a similar nature and of equal
value.
(ii) ViUxhe gt dtu=tb gt mkd{nK fuU:tl murfUme yg =]rck"fUhFudY at mkgkt ytih
bNel he ;:t fUaubttuYJk;igth J;wytytr= fuUxtfUfUtunxtYdt gt nxJtYdt gt
nxtl ufUe yl wbr; =udt gt Wmu=qmhufUtb btdtYdt gt Wl fuUfUthtucth fuUmgfUyl wf{b
fuUrmJtg Wl fUt tul -=ul fUhudt, ytih l ne fUtuRoYumt fUtgofUhudt gt fUhl ufUe yl wbr; =udt
rsmmufUfUe r;Cqr; fUtuGr; vnwka;e ni gt Jn CtrJ; ntu;e ni>
Remove or cause or permit to be removed from the factory or godown or place
of storage any of the other hypothecated movable plant and machinery and stocks
of raw-materials and finished goods etc. or divert or deal with them except in
the usual course of its business and shall not do or permit to be done any act
or thing whereby the security of the Bank is impaired or affected.
W"thfU;tortrF; v bcfUfUe vqJomnbr; fuUrcl t =]rck"fUhFudY at mgkkt ytih
bNel he ;:t fUaubtt YJk;igth J;wytytr= vh gt Wl fuUrfUme Ctd vh fUtuRock"fU,
=]rck"fUCth, rdhJe gt rtgl l ;tum]rs; fUhudt ytih l ne Yumt fUhl ufUe yl wbr; =udt ytih
l ne rfUme Ce v bWmurJtkdbd{; fUhudt>
The Borrower shall not create or allow or permit to be created any mortgage,
hypothecation, charge, pledge, lien on the hypothecated movable plant and machinery and
stocks of raw-materials and finished goods etc. or any part thereof or encumber the same
in any way without prior consent in writing of the Bank.
gn =]rck"l W"thfU;totht rfY dY RmDtuMKt fuUyt"th vh rfUgt st;t ni rfU=]rck"fUhFu
dY at mkgkt ytih bNel he ;:t fUaubtt YJk;igth J;wytytr=fuUxtfU, stuRmfuUtht m]rs;
r;Cqr; byCe ytih mbg-mbg vh Ntrbt rfY st;un, W"thfU;tofUe ytgkr;fUmkvrt ni ytih nh
mbg cl e hnde ;:t JurfUme yg Cth, =trgJ, rdhJe, rtgl , =tJt gt rJtkdb mubw; hnde ;:t
gn =]rck"l W"thfU;totht RmfuUtht rf Y dY RmJal ck" fuUyt"th vh Ce rfUgt st;t ni rfU
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W"thfU;toRmr;Cqr; fuUsthe hnl ufuU=tihtl =]rck"fUhFudY rfUme Ce at mkgkt ytih bNel he ;:t
fUaubtt YJk;igth J;wytytr=fuUxtfUvh ytih ytdul ;tuCth, ck"fUgt rtgl gt rJtkdb
gt mbl w=uNl m]rs; fUhudt ytih l ne Yumt fUhl ufUe yl wbr; =udt ;:t W"thfU;torfUme Ce gr; fuU
=tJuytih btkd fuUrJh Wl vh cfUfUt tr"fUth rm fUhudt>
This hypothecation is made on the faith of the declaration which the Borrower hereby
makes that the hypothecated movable plant and machinery and stocks of raw-materials and
finished goods etc. now and from time to time hereby comprised in the security hereby
created are and will at all times be the absolute property of the Borrower and free from any
other charge, trust, pledge, lien, claim or encumbrance and on the undertaking hereby given
by the Borrower that the Borrower will not create or permit to be created further charge,
mortgage or lien or encumber or assign any of the hypothecated movable plant and machinery
and stocks of rawmaterials and finished goods etc. during the continuance of this security
and the Borrower will warrant and defend the same to the Bank against the claim and demand
of any person whomsoever.
W"thfU;toWmdtu=tb ytih vrhmh fUt mCe rfUhtgt, hux, fUh ytih yg FatufUt Cwd;tl rl grb;
v mufUhudt sntk=]rck"fUhFudY at mkgkt ytih bNel he ;:t fUaubtt YJk;igth J;wytytr=
fuUxtfUhFust;un ;:t WnfUh:bTmubw; huFudt ;:t Wmvh gt WmfUe ytr;gtvh RmfuU
vntuytih RmfuUct=yr"hturv;, rl "torh; gt W=Td]ne; rf Y dY mCe fUhtu, rl "tohK ;:t mhfUthe Ctht
fUt YJkrbfUt, mtbd{e gt ytvqr;ofuUmCe =tJtfUt, stuCwd;tl l ntul ufUe r:r; bW"thfU;tofUe
rfUme mkvrt vh fUtl ql l rtgl gt Cth gt RmfuUtht m]rs; r;Cqr; vh yr"btl ntumfU;un,
rJr"J;TYJkNeD{Cwd;tl fUhudt, rmJtg RmfuUrfURmbrl rn; fUtuRoct; W"thfU;tofUtuCwd;tl fuUvntu
gt ct= gt Cwd;tl mrn; gt WmfuUrcl t YumurfUme fUh, rl "tohK, mhfUthe Cth fUt gt yr"hturv;,
rl "torh; gt W=Td]ne; rfY stl uJttugt WmfUe ytNkfUt JtturfUme =tJufUt mbwra; fUtgoJtne tht
m=TCtJvqJofUrJr"J;TrJhtu" fUhl umugt Wl fUt mbtgtusl fUhl umugt Wl fuUytih Cwd;tl fUe her; fuU
mkck" bmbSti;t fUhl umul n htufuUde>
The Borrower shall punctually pay all rents, rates, taxes and other outgoings of the
godown and premises where the hypothecated movable plant and machinery and stocks of
raw-materials and finished goods etc. shall be and keep the same free from distress and
duly and promptly pay and discharge all taxes, assessments and governmental charges
heretofore and hereafter imposed, assessed or levied against his/her/it or against his/her/its
assets, as well as all claims for labourer, materials or supplies which, if unpaid might by law
become a lien or charge upon any property of the Borrower or have preference on the
security hereby created except that nothing herein contained shall prevent the Borrower either
before or after or with or without payment from lawfully contesting in good faith, by appropriate
proceedings any such tax, assessment, governmental charge or such claims that may be
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CHAPTER-10
imposed, assessed, threatened or levied against or from adjusting or compromising the same
and manner of payment thereof.
9. W"thfU;tofUhth fUh;t ni rfUmhfUth tht r=Y stl uJttu................................................... h.
(.........................................................................................................................................hvhu) fuU
vqksed; Wv=tl fUtuWmfuUl tb bbegt=e sbthtrN fuUv bbegt=e }UK DxfUfUe awfUti;e nu;w
rl ra; yJr" fuUrtY gt gql ;b ;el JMofUe yJr" fuUrtY (stuCe fUb ntu) hFt stYdt YJk
Wmu}UK Ft;ub=ug W;l e ntuhtrN fuUrfU; fuUNuM fuUr; mbtgturs; rfUgt stYdt>gr=
W"thfU;tomkrb }UK fUe awfUti;e baqfUfUhl t ni ;tuCe begt=e sbthtrN fUt mbtgtusl (WmfuU
mbgvqJoCwd;tl tht Ce) W"thfU;totht cfUfUtu=ug htrN fuUrtY rfUgt stYdt ytih gr= fUtuRo
yr"NuMca;t ntu;tuRmvh gtusl t fuUtJ"tl tfuUyl wmth fUthoJtRofUtustYde>
The Borrower agrees that the capi tal subsi dy of Rs. .............................
(Rupees ................................................................................) to be provided by the Government
shall be kept in Term Deposit in his/her/its name for the period fixed for repayment of the
term loan component or a minimum period of three years (whichever is less) and shall be
adjusted towards an equal amount of balance of instalment falling due in the Loan Accounts.
If the Borrower commits default in the repayment of the Composite Loan, even then the Term
Deposit shall be adjusted (including by premature payment thereof) towards the outstandings
due to the Bank from the Borrower and surplus thereof, if any, be de It with as per provision
of the scheme.
W"thfU;tofUhth fUh;t ni rfUbegt=e sbthtrN vh yrso; Yume gts fUe htrN fUt, stur;btne/
Abtne yt"th vh =ug ntu, mbtgtusl sc ;fUmkrb }UK vh =ug ytih Cwd;tl rfY stl ugtug
gts fuUrtY rfUgt stYdt sc ;fUWvgwo; Fkz fuUrl ck"l tfuUyl wmth begt=e sbthtrN
mbtgturs; l n ntu;e ni>
The Borrower agrees that the interest earned, if any on the Term Deposit which shall
be payable on quarterly/ half-yearly basis shall be adjusted towards the interest due
and payable on composite loan until the term deposit is adjusted in terms of the above
clause.
Qvh JrKo; mbtgtusl fuUvat;Tmkrb }UK vh cfUtY gts fUt NuMYumubtrmfU/r;btne/Abtne/
JtrMofUy;htt vh =ug ntud sc cfUtht gts vrhfUrt; rfUgt st;t ni ytih ;=l wmth W"thfU;to
mu=ug ntu;t ni>
The balance of interest outstanding on Composite Loan after adjustment as aforesaid
shall be payable at monthly/ quarterly/ half-yearly/ yearly rests at which interest is
calculated by the Bank and accordingly due from the Borrower.
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begt=e }UK DxfUfUe mbg vh awfUti;e fUhl uvh fUtgofUthe vqksed; }UK fUtuYumul fU=e }UK b
c=t r=gt stYdt rsmvh gql ;b W"th =h fUe =h mu.............................%r;JMoyr"fU
fUe =h vh vh;wgql ;b.....................................%r;JMogt l fU=e }UK fuUrtY cfUtht
mbg-mbg vh ttdqfUe stl uJtte =htvh gts vrhfUrt; rfUgt stYdt>
On punctual repayment of the term loan component, the working capital loan will be
converted into cash credit on which the interest shall be calculated at................... %
p.a. Mirimum Lending Rate (MLR) subject to minimum ........................% p.a. or at the
rates applicable for cash credit advances by the Bank from time to time.
mkrb }UK fuUfUtgofUthe vqkse DxfUvh cfUtgt }UK htrN ytih/gt Wvgwo; Fkz fuUrl ck"l tfuU
yl wmth l fU=e }UK Ft;uby;rh; cfUtY NuMhtrN fUe btkd rfY stl uvh Wl fUt Cwd;tl rfUgt
stYdt>
The loan amount outstanding on the working capital component of Composite Loan
and/or the balance outstandihg transferred to the cash credit account in terms of above
clause shall be payable on demand.
W"thfU;to Rmb RmfuU l eau WrrF; ;theFt fUtu ytih rfU;t b }UK fuU YfU Ctd
gtl e.................................... h. fUe htrN fUe awfUti;e cfUfUtufUhudt>
A portion ofthe loan amounting to Rs. ..................................... shall be repayable by the
Borrower to the Bank on the dates and by instalments mentioned hereunder.
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awfUti;e yJr"
REPAYMENT SCHEDULE
cfUtht btkd rfY stl uvh W"thfU;to}UK fUe NuMhtrN gtl e.................................h. ;:t
RmbRmfuUl eauWrrF; =h vh gts fUt Cwd;tl cfUfUtufUhudt>W"thfU;to}UK Ft;ufuU=irl fU
NuMvh ytfUrt; gts fUt Cwd;tl , gql ;b W"th =h b................................%yr"fUfUe =h vh
stugql ;b................................%r;JMontude, btrmfU/r;btne/Abtne/JtrMofUgt cfUfUe fUtgoKtte
fuUyl wmth yg rfUme y;htt vh fUhudt<vh;wrVUh Ce cfUgt ;tuJrJJufUtl wmth W"thfU;tofUtu
mqal t =ufUh gt Cth;eg rhsJocfUtht mbg-mbg vh sthe rfY dY rl =uNtfuUyl wmth Wvgwo; gts
fUe =h bmkNtu"l gt J]r fUh mfU;t ni ytih W"thfU;toRmfuUtht gts fUe =h brfY stl uJttu
YumumkNtu"l YJkJ]r fuUr; yvl e mnbr; =tl fUh;t ni ;:t RmfUhth fUt gn y:otdtgt
stYdt btl tuRmfUth fuUmkNtu"l gt Jro; gts =h fUt WuF RmbrfUgt dgt :t ytih W"thfU;to
WmfUt Cwd;tl fUhl ufuUrtY mbn; :t YJkRmfuUtht JumwhrG; ni>
The balance amount of loan namely Rs. ............................................. shall be repayable
by the Borrower to the Bank on demand with interest at the rate specified hereunder. The
Borrower shall pay interest calculated on the daily balances of the loan a/c. at the rate of
........................... % over Minimum Lending Rate (MLR) subject to the minimum
of...................% per annum with monthly/quarterly/half-yearly/yearly or any other rests according
to the practice of the Bank; provided however that the above rate of interest may be revised
or increased by the Bank either in its sole discretion of which notice shall be given to the
Borrower or in accordance with the directives of Reserve Bank of India issued from time to
time and the Borrower hereby agrees to such revision and increase in the rate of interest
and this Agreement shall be construed as if such revised or increased rate of interest were
mentioned herein and agreed to be paid by the Borrower and are hereby secured.
10. gr= Qvh WrrF; bqt"l gt gts fUe rfUme rfU; fuUCwd;tl bgr;f{b ntu;tucfU, Wm
htrN vh rsmfuUmkck" bgr;f{b nwyt ntu, gr;f{b fUe ;theF muCwd;tl gt Jmqte fUe ;theF ;fU
l q gl ;b W"th =h mu...................................%yr"fUfUe=h vh fUhk ;wgq l ;b ................................%
r;JMogt WvgwoUviht bWrrF; }UK fUe rfU;tvh mbg-mbg vh ttdqyg =htvh gts
Ctrh; fUhl ufUt nfU=th ntudt>
In case there is any default in the payment of any of the instalments either of the
principal or interest mentioned above, the Bank shall be entitled to charge interest at the
rate of ......................... % over the Minimum Lending Rate (MLR) subject to the minimum
of....................... % per annum or at such other rates as. applicable to time loan instalments
of para above from time to time on the amount of such default from the date of default till
payment or realisation.
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10(fU) gn rfUcfUtht W"thfU;toytfUtu=e stl uJtte }UK/yrd{btfUtuvqJoN;ofuUv bW"thfU;to
RmfuUtht Rmct; vh mnbr; g; fUh;un rfUW"thfU;to}UK/yrd{btfUe y=tgde by:Jt Wl
vh gts y:Jt =ug ;theF fUturfUme mb; rfU; fUe y=tgde baqfUfUh;tucfUytih/y:Jt
Cth;eg rhsJocfUfUturcl t N;ogn yr"fUth ntudt rfUJuWl fuUy:Jt Wl fUe fkUvl e/VUbo/gqrl x ytih
WmfuUrl =uNfUt/Ctde=tht/JtrbgtfuUl tb cfUy:Jt Cth;eg rhsJocfUyvl uvqKorJJufUtr"fUth mu
simt XefUmbSufUx gt fUtrN; fUh mfU;un>
10(a) That the Borrowers hereby agree as a pre-condition of the loan/advances given to
them by the Bank that in case the Borrowers commit default in the repayment of the loan/
partners/ proprietors as defaulter in such manner and through such medium as the Bank or
11. }UK gt rfUme Ce v bWmvh m]rs; r;Cqr; fuUmkck" bWvd; Cth, ttd; ytih Fatu
fUtu(WmbWrrF; }UK vh rl Guv cebt ytih gg dthkxe rl db fUt dthkxe fUJh tt fUhl unu;wWmu
=t/=ug VUemmrn;) cfUfuUrl gb gt :t gt Cth;eg rhsJocfUfuUbtdo=Neormt;tfuUyl wmth
}UK Ft;ubl tbuzttfUh Jmqt rfUgt stYdt>gn btl t stYdt rfURm;hn fuUmCe l tbuW"thfU;to
fuUtr"fUth muzttudY>Rm;hn l tbuztte dRohtrN fUt Cwd;tl }UK vh ttdq=h vh gts mrn;
ytih }UK fuUrtY ttdqy;htt vh rfUgt stYdt ytih Jn }UK Ft;ubgts l tbunttl ufuU;whk;
ct=Abtne y;htt vh gtl e RmhtrN fUtul tbuzttl ufuU;whk; ct=Cwd;tl fuUrtY =ug ntude>bqt
htrN ytih gts ;:t }UK Ft;uvh Jmqte gtug htrN fuUyttJt Qvh bg:tWrrF; Cth ytr=
fuUrtY l tbuztte dRohtrN fUtuRmbm]rs; r;Cqr; tht vqhe ;hn mwhrG; rfUgt stl t atrnY>
The charges, costs and expenses incurred in connection with loan or security created
thereagainst in any manner whatsoever (including fees paid/payable to Deposit Insurance and
Credit Guarantee Corporation for securing their guarantee cover for the loan herein mentioned)
shall be recovered by debit to the loan account in accordance with Banks rules or practices
or RBI guidelines. This may be deemed as the Borrowers authorisation for all such debits.
The amount so debited shall be payable together with interest thereon at the rate and rests
applicable to the loan and shall be due for payments imrnediately after the debit of the interest
to the loan accounts as at the half-year end immediately succeeding the debit of this amount.
Besides the principal amount and interest due and realisable amount of the loan account,
the amount debited towards charges etc. as mentioned herein above should be secured in
full by the security herein created.
12. Rmby;rJo rfUme ct; fuUntu;unwY Ce mvqKoyrd{b ;fUtt W"thfU;totht cfUfUtu=ug ntudt
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ytih ckfUrl l rtrF; Dxl tytbmurfUme YfUfuUDrx; ntul uvh RmfUe r;Cqr; fUtuJr;o; fUhtl u
fUt nfU=th ntudt, g:t&
Notwithstanding anything herein contained the whole advance shall become forthwith
due and payable by the Borrower to the Bank and the Bank will be entitled to enforce its
security upon the happening of any of the following events, namely:
(fU) y=tgde fUe ;theF fUtubqt"l fUe rfUme rfU; fuUy;=; hnl uvh WmfuUCwd;tl fuU
rtY<
(a) any instalment of the principal moneys being unpaid on the due date for payment
thereof;
(F) atnuytivatrhfUgt Ji" v mubtkd fUe dRontugt l n, rfUme gts fuU=ug ntustl u
fuUvat;T;el bnel u;fUy=t ytih cfUtgt hnl uvh<
(b) any interest remaining unpaid and in arrears for a period of tllree months, after
the same shall have become due whether formally or legally demanded or not;
(d) Rl rJtuFtytih/gt Rmbg:tWvt;rh; W"thfU;tofUe :tvl t by;rJo rl ck" ytih N;tu
gt yrd{b mumkckr"; rfUn yg rl ck"l tgt N;tufuU(RmbfuUJt Wme gtusl fuUrtY
}UK fUt Wvgtud Ntrbt ni rsmfuUrtY Jn Jef]U; rfUgt dgt ni) vttl gt yl wvttl b
W"thfU;totht rfUme fUth fUt Ckd gt gr;f{b rfY stl uvh<
(c) the Borrowers committing any breach or default in the performance or observance
of the terms and conditions contained fn these presents and/or the Borrowers
proposal as modified herein or any other terms or conditions relating to the
advance (including utilisation of the loan exclusively for the purpose for which it
has been allowed);
(D) W"thfU;totht yvl u}UK=t;tytmufUtuRoXnhtJ gt Nbl fUhl uvh gt r=Jtrtgtvl fUt
(d) the Borrowers entering into any arrangement or composition with its creditors or
committing any act of insolvency;
(E) W"thfU;tofUtumb; mvrt gt WmfuUrfUme Ctd vh fwUfUeogt fUh:bTfUt yt=uN Jr;o;
gt W=Td]ne; ntul uvh<
(e) execution or distress being enforced or levied against the whole or any part of
the Borrowers property;
308
CHAPTER-10
(a) W"thfU;tofUe mb; mvrt gt WmfuUrfUme Ctd fuUctc; rhmeJh rl gw; ntul uvh<
(f) a Receiver being appointed in respect of the whole or any part of the property
of the Borrower;
(A) W"thfU;tofUthcth Atu\z hnt ntugt WmfuUfUthcth Atu\zl ufUe ytNkfUt ntu<
(g) the Borrower ceasing or threatening to cease to carry on business;
(s) fUtuRoYume vrhr:r; Wvt ntul uvh, stucfUfUtu=e dRor;Cqr; vh r;fqUt CtJ zttl u
Jtte ntugt WmuWCmtl vnwat;e ntugt mkfUx bztt;e ntugt WmfuUbqg fUtufUb
fUh;e ntu<ytih
(h) the occurrence of any circumstance which is prejudicial to or impairs or imperils
or depreciates the security given to the Bank; and
(S) rfUme Yume Dxl t fuUDrx; ntul ugt vrhr:r; fuUWvt ntul uvh, stuW"thfU;tofuU}Uh
awfUtl ufUe Gb;t vh rfUme fUth fUt r;fqUt gt rJhtu"e CtJ ztt;e ntugt zttl ufUe
ytNkfUt ntu>
(i) the occurrence of any event or circumstances which would or is likely to
prejudicially or adversely affect in any manner the capacity of the Borrower to
repay the loan.
Wvgwo; bmufUtuRoDxl t Drx; nwRoni gt l n, Rmmc" bcfUfUt rl Kog yr;b ytih
W"thfU;tovh ctgfUthe ntudt>
On the question whether any of the above events has happened, the decision of the
Bank shall be conclusive and binding on the Borrower.
12(fU) sc ;fUrfUcfUfUtufwUt htrN fUt Cwd;tl l n rfUgt st;t ni atnuJn Cq;, J;obtl gt
CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, stuW"thfU;totht =ug ntugt rsmfuUrtY
W"thfU;togntkRmfuUy"el gt yg:t =tge ntumfU;t ntuy;Jt ntuawfUt ntu;:t atnuJn
"tl v bntugt r;CqfuUv b, W"thfU;togn mnbr; =u;t ni rfUcfUfUe mCe
r;Cqr;gtkytih/gt bwtYkstufwUA Ce ntsturfUme mbg cfUtht W"thfU;tofUe ytuh mugt
WmfuUFt;ubrfUme v b, rfUme fUth mugt rfUme Ce W=T=ug mu"thr; fUe stYkde Jn
cfUfuU"thKtr"fUth bntde ;:t/gt cfUfUtuWmfuU}UK Ft;ubmbksl fUhl ufUt vqKo
yr"fUth ntudt>cfUfUtuW; r;Cqr; YJk/gt bwt bmuW"thfU;tofuU=trgJ gt =ug;t fUtu
Wbtura; fUhl ufUe ;:t begt=e sbtytfuUbtbtubatnuJn Cwd;tl fuUrtY vrhvJ nwyt
ntuy:Jt l n, YJkW"tfU;tofUtumqra; rfY rcl t (;:t Jt= =tgh fUhl ugt rJr"fUrf{gt
thkC fUhl ufuUvqJogt vat;T) rsmv batnurJrl gtusl y:Jt Jmqte fUe J;kt;t ntude>
m=TCtJvqJofUytfUrt; htrN, stu=trgJ fUe htrN ntude, WmucfUmbkrs; fUh mfU;t ni>
309
CHAPTER-10
(a) Until payment is made to the Bank of all the amounts, whether past, present or
future, actual or contingent, which may be payable by the borrower or for which the
Borrower may be or become liable hereunder or otherwise and whether as principal
or surety, the borrower agrees that the Bank shall have a lien and/or right of set off
on all securities and/or monies whatsoever held at any time by the Bank on account
of or to the credit of the Borrower in or for any account or manner or purpose
howsoever. The Bank shall be at liberty to discharge the said obligations or liabilities
of the borrower out of the said securities and/or monies, and in case of term
deposits, whether the same have matured for payment or not, and may appropriate
or realise them in the manner thought fit by it and without notice to the Borrower
(and whether before or after filing suit or taking any legal proceedings). The Bank
may set off an amount estimated by it in good faith to be the amount of that
obligation.
12(F) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY YfU
vqJoN;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"tfUh;totht t fUe dRo/t fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zt,
W"thfU;totht "trh;/"trh; fUe stl uJtte ;mck"e =ug;tytytih WmfuUvttl bW"thfU;to
tht fUe dRoaqfU(gr= fUtuRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr= Wra; ytih ytJgfU
mbSu;tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfUtht tr"f]U;
rfUme yg Ysme fUturl l rtrF; mCe gt RmfUth fUe fUtuRoCe stl fUthe =umfU;t ni&
ytkfU\zt, ytih
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih ytkfU\zt mg ytih
mne ni>
310
CHAPTER-10
12(b) As a pre-condition, relating to grant of the loans/advances/other non-fund based credit
facilities to the borrower, bank requires borrowers consent for the disclosure by the
bank of information and data relating to the credit facility availed of/to be availed,
by borrower, obligations assumed/to be assumed, by borrower; in relation thereto and
default, if any, committed by borrower in discharge thereof.
(ii) Accordingly, borrowers hereby agree and give consent forthe disclosure by the Bank
of all or any such;
b) the information or data relating any credit facility availed of/to be availed, by
borrower; and c) default, if any, committed by borrower in discharge of borrower
such obligation, as the Bank may deem appropriate and necessary, to disclose
a) the Credit Information Bureau (India) Ltd., and any other agency so authorised
may use, process the said information and data disclosed by the Bank; and
b) the Credit Information Bureau (India) Ltd., and any other agency so authorised
may furnish for consideration, the processed information and data or products
thereof prepared by them, to banks/financial institutions and other credit
guarantees, as may be specified by the Reserve Bank of India in this behalf.
311
CHAPTER-10
vqJoJ;eortF; brJrlr=o J;wytfUe mqae
SCHEDULE OF GOODS REFERRED TO IN THE
FOREGOING INSTRUMENT
mkgkt ytih bNelhe fUe mqae
SCHEDULE OF PLANT & MACHINEARIES
RmfuUmtGe fuUv bW"thfU;tol uRmfUhth fUtuWvhrtrF; r=l , bnel uytih JMobrl vtr=; rfUgt>
IN WITNESS WHEREOF the Borrower has executed this Agreement the day, month and year
above written.
(W"thfU;tofuUn;tGh)
l tux &RmVUtbofuUrn=e vtX murfUme fUth fuUJ t=-rJ J t=fuUWvt ntul ufUe r: r; bRmfUt bqt
Note: In the event of any controversy arising out of Hindi version of this Form, the
original English text of it will be treated as authoritative.
312
CHAPTER-10
Y/A. 9D
gq fUtucf UCO BANK
dih-rlr" yt"trh; mwrJ"t fUtumwhrG; fUhlufuUrtY attq
ytr;gtfUt =]rck"l fUh;unwY Cth-rJ;th nu;wfUhth
AGREEMENT FOR EXTENSION OF CHARGE BY WAY OF
HYPOTHECATION OVER CURRENT ASSETS TO SECURE
NON-FUND BASED FACILITIES
gn yr;rhUfUhth YfUytih............................................................................rtrbxu z, stufk Uvl e
yr"rl gb, 1956 fuUy"el YfUvksef]U; fkUvl eni ;:t rsmfUt vksef]U; fUtgtotg..................................
br;: ni (rsmuRmbRmfuUvat; IIW"thfU;toOO, fUnt dgt ni YJkRmyrCgr; bsc-;fUfUtuRo
ct; rJMg gt mk=CofuUrJh gt WmmuyvJrso; l ntu, RmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt
ntdu) ytih =qmhe ytuh gqfUtucfU, stucfUfUthe fkUvl e (Wvf{btfUt ysol YJkyk;hK) yr"rl gb, 1970
g"tmkNtur"; cfUfUthe rJr" (mkNtu"l ) yr"rl gb, 1985 fuUy"el drX; YfUrl drb; rl fUtg ni ytih
rsmfUt "tl fUtgtotg 10, rJ. ti. b. mhKe, fUtutfUt;t b ni ;:t rsmfUe YfU
NtFt.................................................. bni) rsmuRmbRmfu Uvat; cfUfUnt dgt ni, RmyrCgr;
bsc-;fUfUtuRoct; rJMg gt mk=CofuUrJh gt WmmuyvJrso; l ntuRmfuUWthtr"fUthe ytih
mbl w=urN;e Ntrbt ntdu) fuU cea yts r=l tkfU.................................. 200 .......... (=tu
nsth.....................................................................) fUturl vtr=; rfUgt st;t ni>
THIS ADDITIONAL AGREEMENT made at .................................................................. this
....................................... day of .......................................... two thousand ..................
Between ........................................................................... Limited, a company registered under
the Companies Act, 1956 having its Registered Office at ........................................................
(hereinafter called The Borrower which expression shall unless excluded by or repugnant
to the subject or context be deemed to include its successor and assigns) of the One part
AND UCO Bank, a body corporate constituted under the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 as amended by the Banking Laws (Amendment)
Act, 1985 having its Head Office at No. 10, B. T. M. Sarani, Kolkata and a branch office at
............................................................. (hereinafter called the Bank which expression shall
unless excluded by or repugnant to the subject or context be deemed to include its successors
and assigns) of the Other part.
fUhthfuUylwmth
xtv tdtYk
To be stamped as
an Agreement
313
CHAPTER-10
aqkrfU/ WHEREAS :
fU) cf U l u W"thf U;to f uU yl whtu" vh yg ct;t f uU mt:-mt: Rm N;o
vh............................................................. h. ................................ fUe l fU=e }UK mwrJ"t
Jef]U; fUe ni ytih/gt Jef]Ur; nu;wmnbr; =e ni YJkWmfuUgts, ttd; Cth YJkgg fuU
mt: WmfUe=]rck"l rJtuF r=l tkfU.................................................200 ................ YJkf{bN&
g"tmkNtur"; yl wvqhfU =]rck"l rJtuFtr=l tkfU..............................................................
YJk........................................................... fuU tht mwhrG; ni, W; }UK mebt fUtu
c\ ZtfUh...........................................h. ;:t ytduytih ........................................h. ;fUc\ Ztgt
dgt (mCe Wvgw; fUhth rsnRmfuUvat; mtbqrn; v muIIWvgwo; l fU=e }UK =]rck"l
fUhthOOfUnt dgt ni) W"thfU;tocifUfuUvG brl vtr=; fUh;t ni YJkRmfuUmt:-mt: W"thfU;to
fUe btisq=t YJkCrJg fUe mCe at mvrtgtvh =]rck"l fuUtht cfUfUt :b Cth ntudt>
A) The Bank at the request of the Borrower has granted and/or agreed to grant
accommodation to the Borrower by way of cash credit facility to the extent of
Rs. ............................. and the repayment thereof with interest, costs, charges and
expenses has been secured by the Deed of Hypothecati on dated
the ......................................... day of ................................. 200 ......... and as modified
by the Suppl emental Deeds of Hypothecati on dated respecti vel y the
............................................................ and ................................. ..................... whereby
the said limit has been increased to the extent of Rs. ................................. and further
to Rs. .......................................... (all the aforesaid agreements are hereinafter collectively
referred to as the said Cash Credit Hypothecation Agreement) executed by the
Borrower in favour of the Bank creating inter alia, a first charge by way of hypothecation
on all the movable properties of the Borrower (as detailed therein) present and future.
F) W"thfU;to fuU yl whtu" vh cfU l u (i) W"thfU;to fuU rJrCt ytvqr;ofU;toyt fuU vG
b.................................................ttC h. muyl r"fUhtrN fUt mtF-vt sthe fUhl uYJk(ii)
W"thfU;tofUtutt W; l fU=e }UK mwrJ"t (rsmuRmbRmfuUvat; OOyr;rhUmwrJ"tOOfUnt
dgt ni ) fu UyttJt ;:t W"thfU;tofUtuytr:o fU=u g;t Jv ....................................................ttF
h. muyl r"fUhtrN fUe dthkxe sthe fUhl ufuUrtY Jef]Ur; =tl fUe ytih/gt Jef]Ur; nu;w
mnbr; =e ;:t gn rfUW"thfU;toW; l fU=e }UK =]rck"l fUhth tht m]rs; :b Cth tht
yr;rh; mwrJ"tytfUtuCe mwhrG; fUhl ufuUrtY mnb; ni>
B) At the request of the Borrower the bank has granted /agreed to grant other additional
facilities by way of (i) issue of Letters of Credit favouring various suppliers to the
Borrower for an amount not exceeding a limit of Rs. ................................. and (ii) issue
of guarantees also undertaking pecuniary liabilities on account of the Borrower for an
314
CHAPTER-10
amount not exceeding Rs. .............................. over and above and in addition to the
said cash credit facility (hereinafter referred to as the additional facilities) on the
Borrower agreeing that the said first charge created by the said Cash Credit
Hypothecation Agreement shall also extend to secure the additional facilities.
yc Y=;Ttht rl l rtrF; her; mu=tul tvGtfuUcea mnbr; nwRoni&
NOW IT IS HEREBY AGREED by and between the parties hereto as follows :
1. gn rfUW"thfU;tocfUtht btkd fUe stl uvh rl l rtrF; fUt ;whk; Cwd;tl fUhudt_
The Borrower shall pay to the Bank immediately on demand
i) cfUtht Jef]U; YJk;w; W; mtF-vt fuUyl wmhK brJrl bg rctt/z[txtfUe
htrN ;:t Wl htrNgtfUt Ce atnuJubqt gts, ttd;, Cth YJkgg fuUb=bnt
gt d{tnfUfUe ytih mugt WmfuUc=tubcfUtht mk:trv; W; mtF vt fuUbtbtu
bgt WmfuUy"el mbg-mbg vh gt rfUme Ce mbg stufwUA cfUCwd;tl fUh mfU;t
ni gt cfUfUtufUhl t ni ytih Wl mCe htrNgt, stuvhf{tbK fUe ;theF muCth YJk
gg =tul tfuUJt;rJfUCwd;tl fUe ;theF ;fUW; rJrl bg rctt/z[tgtvh Ctrh;
gts mrn; W; mtF vttfuUmk=Cobgt RmfuUy"el W"thfU;totht cfUfUtu=ug
gt cfUtgt ni, fUt Cwd;tl cfUtht Jnl rfUgt stYdt gt W; mtF-vt fUe N;tufUtu
vqht fUhl ufuUbtbtub;:t rJ=uNe bwt W;th-a\ZtJ fuUVUtJv htrN brfUme fUth
fUe J]r ntul uvh cfUtht =ug ntudRontu, ytih
the amount of Bills of Exchange drafts drawn under pursuant to the said Letter
of Credit presented to and accepted by the Bank and also all amounts whether
for principal interest, costs, charges and expenses or howsoever which the Bank
may pay or may have to pay from time to time or at any time in respect of or
under the said Letters of Credit established by the Bank for and on behalf of
or on account of the Borrower and also all monies which are or may be due
owing or payable by the Borrower to the Bank under or in connection with the
said Letters of Credit including interest on the said Bills of Exchange/drafts from
the date of negotiation till the date of actual payment together with charges
and expenses which may be incurred by the Bank or become payable by it in
connection with fulfilment of the terms of the said Letters of Credit and any
increase in the amount due to exchange fluctuations; and
ii) fUbeNl , gts, Cth ytih Rmmumkckr"; mCe gg fuUbtbtubW"thfU;tofUe ytuh mu
gt WmfuUc=tub;:t mbg-mbg vh gt rfUme Ce mbg cfUtht sthe W; dthkrxgt
fuUbtbtubgt RmfuUy"el cfUmCe htrNgtfUt Cwd;tl fUh mfU;t ni gt Wmu
Cwd;tl fuUrtY fUnt st mfU;t ni gt Cwd;tl nu;w=tge Xnhtgt st mfU;t ni>
315
CHAPTER-10
all monies which the Bank may pay or may be called upon to pay or liable to
pay under or in respect of the said guarantees issued by the Bank from time
to time or at any time for and on behalf of or on account of the Borrower with
commission, all interest, costs, charges and expenses thereon.
2. W"thfU;tofUtuWvgwo; yr;rh; mwrJ"t Jef]U; fUhl ufuUrtY cfUfUe ytuh murfY dY fUhth
fuUyl wmhK bRmbRmfuUvntuc;tRodRoher; muW"thfU;toRmct; mumnb; ntu;t ni rfU
W; l fU=e }UK =]rck"l fUhth bv;&JrKo; yt"th vh W"thfU;tofuUbtisq=t YJkCrJg b
ntul uJttumCe Wvt=, btt YJkat mvrt, rsnRmbII=]rck"l bttOOfUnt dgt ni, fUt
=]rck"l rfUgt stYdt YJkyr;rh; mwrJ"tytfuU;n; =ug gt =ug ntul uJtte mkckr"; htrN
fuUrtY r;Cqr; fuUv bCe cfUfuUvG b:b Cth Jv ;:t cfUfuUvG b
=]rck"l sthe hnudt ytih RmfuUyr;rh; YJkRmbrfUme fUth fuUvqJod{n fuUrcl t Cwd;tl fuU
rtY r;Cqr; fuUv bWme fUth =]rckr"; rfUgt stYdt YJkWvgwo; yr;rh; mwrJ"tytfuU
btbtubcfUfUtuW"thfU;totht =ug mCe hrtNgtfUe rfUme Ce mbg btkd fUe stl ufUt
rl vt=l rfUgt stYdt ytih gn rfUW; l fU=e }UK =]rck"l fUhth brJrl r=o rl ck"l YJkN;u
W; yr;rh; mwrJ"tytfuUrtY Ce ttdqfUe stYkde YJkWvt" fUhtRostYkde ;:t cfUfuU
ytJgfU;tl wmth Yumuyg rl ck"l tYJkN;tufUt W"thfU;totht yl wvttl rfUgt stYdt YJkcfU
mbg-mbg vh RmfUe mqal t W"thfU;tofUtu=udt>
In consideration of the agreement on the part of the Bank to grant the aforesaid
additional facilities to the Borrower as and in the manner hereinbefore recited the
Borrower has agreed that all the present and future products goods and moveable
properties of the Borrower more fully described in the said Cash Credit Hypothecation
Agreement and referred to therein as the Hypothecated goods, shall further stand
hypothecated and charged by way of first charge in favour of the Bank also as security
for the respective amounts due and becoming due under the additional facilities and
shall continue to stand hypothecated to the Bank and in addition and without prejudice
thereto stand further hypothecated in like manner as security for payment and discharge
by the borrower to the Bank on demand of all monies at any time payable by the
Borrower to the Bank in respect of the above referred additional facilities and that the
terms and conditions referred to in the said Cash Credlt Hypothecation Agreement
being made applicable and available also for the said additional facilities and the
Borrower to abide by such other terms and conditions as may be deemed necessary
by the Bank and communicated by the Bank to the Borrower from time to time.
3. gn rfUW; l d=e }UK =]rck"l fUhth brJrl r=o rl ck"l YJkN;tuJef]U; yr;rh; mwrJ"t
fuUbtbtubCe vqKo;&ttdqntde ytih gn YfUyr;rh; fUhth fuUv bntudt YJkRmul fU=e
}UK =]rck"l fUhth fuUmt: v\Zt stYdt>
316
CHAPTER-10
That all the terms and conditions contained in the said Cash Credit Hypothecation
Agreement are applicable in entirely also in respect of the additional facilities granted
and this agreement is additional to and shall be read with the said Cash Credit
Hypothecation Agreement.
4. gn rfUW"thfU;tocfUtht-mtF vt Ftutl uYJkdthkxesthefUhl ufuUrtY JtkrA; ytJgfU;tyt
;:t ttdqrf{gtd; ytivatrhfU;tytfUtuvqht fUhudt ;trfUcfUgufUmtF-vt YJkdthkxe fUtu
Ftut mfuUytih sthe fUh mfuUcN;uogn rfUrfUme mwrJ"t gt mntg;t fUtuJef]U; fUhl ugt
sthe fUhl ufuUrtY cfUctg l n ntudt gtrfURmuWra; fUhth =ul t vqKo;&RmfuUrJJufUtr"fUth
vh rl Coh fUhudt>
That the Borrower shall comply with all requirements and the procedural formalities
applicable to the opening of Letters of Credit and issuing of Guarantees by the Bank
to enable the Bank to open and issue each and every one of the Letters of Credit
and Guarantees provided always that the Bank shall not be bound to grant or continue
any facility or accommodation except as it shall in its absolute decision consider fit.
5. gn fUhth W; yr;rh; mwrJ"tytmumkckr"; yg rfUme fUhth YJkr;Cqr;gtfuUyttJt ntudt
;:t W; fUhth fuUy"el W"thfU;tofUe mCe =ug;tYkYJk=trgJ Y;=Ttht Ctrh; r;Cqr; fuU
v b=]rckr"; btt fuUtht mwhrG; ntdu>Wvgwo; fuUmtGe Jv W"thfU;tofUe mtbtg
bwnh tdtRodRoYJkgn Wvgwo; WrrF; r=l , btn YJkJMofUturl vtr=; rfY dY>
This Agreement shall be in addition to any other Agreement and Securities in relation
to the said additional facilities and all the liabilities and obligations of the Borrower
under the said Agreements stand secured by the Security of hypothecated goods
charged hereby. In Witness whereof the Common Seal of the Borrower has hereunto
been affixed and these presents executed the day month and year first above written.
5.(fU) IIsc ;fUcfUfUtuW"thfU;totht =ug mCe htrNgtfUt Cwd;tl l n ntust;t ni, stuy;e;,
J;obtl y:Jt CrJg fUe, Jt;rJfUy:Jt ytfUrbfUhtrN ntu, y:Jt rsl fuUrtY W"thfU;to
bqt v muy:Jt r;CqfuUv bRmfuUy"el y:Jt yg:t Wth=tge ntu, y:Jt ntu;t
ntu, W"thfU;toRmct; vh mnb; ntu;t ni rfUcfUtht W"thfU;tofuUtuFufUe y:Jt WmfuU
Ft;ufUe htrN vh y:Jt WmfuUrfUme Ft;uvh rfUme Ce her; y:Jt gtusl murfUme Ce
mbg "trh; mCe r;Cqr;gt;:t/htrN vh d{nKtr"fUth ;:t/y:Jt bwshufUt yr"fUth cfUfuU
vtmntudt>W; r;Cqr;gt;:t/y:Jt "l bmuW"thfU;tofuUW; =trgJty:Jt =ug;tyt
fuUWbtual fuUrtY cfUJ;kt ntudt ;:t begt=e sbthrNgtfuUbtbtub, atnuJuCwd;tl fuU
rtY vrhvJ nwRontuy:Jt l n, W"thfU;tofUtul turxmr=Y rcl t Jt= =tgh fUhl uy:Jt fUtuRo
rJr"fUfUtgoJtne fUhl ufuUvqJoy:Jt vat;) stuCe her; WmuWra; tdu, WmmuRl fUt
rJrl gtusl y:Jt Jmqte fUe st mfuUde>cfUm=TCtJ mutfUrt; WmhtrN fUt bwsht fUh
mfuUdt stuWmfuU=trgJ fUe htrN ntude>OO
317
CHAPTER-10
5. (a) Until payment is made to the Bank of all the amounts, whether past present or
borrower may be or become liable hereunder or otherwise and whether as principal
or surety, the borrower agrees that the Bank shall have a lien and/or right of set off
on all securities and/or monies whatsoever held at any time by the Bank on account
of or to the credit of the Borrower in or for any account or manner or purpose
howsoever. The Bank shall be at liberty to discharge the said obligations or liabilities
of the borrower out of the said securities and/or monies, and in case of term deposits,
whether the same have matured for payment or not, and may appropriate or realise
them in the manner thought fit by it and without notice to the Borrower (and whether
before or after filing suit or taking any legal proceedings). The Bank may set off an
amount estimated by it in good faith to be the amount of that obligation.
5.(F) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY YfUvqJo
N;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"thfU;totht tt fUe dRo/ tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zu<
W"thfU;totht "trh;/"trh; fUe stl uJtte ;mck"e =ug;tytytih WmfuUvttl bW"thfU;totht
fUe dRoaqfU(gr= fUtuRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr=Wra; ytih ytJgfU
mbSu;tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfUtht tr"f]U;
fU) W"thfU;tofuUcthubmqal t ytih ytkfU\zu<
ytkfU\zu, ytih
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih ytkfU\zumg
ytih mne ni>
(iv) W"thfU;togn Jal =u;t ni rf U&
(b) As a pre-condition, relating to grant of the loans/advances/other non-fund based credit
318
CHAPTER-10
bank of, information and data relating to the creditfacility availed of/to be availed, by
borrower, obligations assumed/to be assumed, by borrower, in relation thereto and
b) the information or data relating any credit facility availed of/to be availed, by
borrower and
c) default, if any, committed by borrower in discharge of borrower such obligation,
as the Bank may deem appropriate and necessary, to disclose and furnish
to Credit Information Bureau (India) Ltd., and any other agency authorised
in this behalf by RBI.
a) the Credit Information Bureau (India) Ltd., and any other agency so authorised
may use, process the said information and data disclosed by the Bank; and
b) the Credit Information Bureau (India) Ltd., and any other agency so authorised
may furnish for consideration, the processed information and data or products
thereof prepared by them, to banks/financial institutions and other credit
guarantees, as may be specified by the Reserve Bank of India in this behalf.
r=l tk fU................................................. 200 ................. fUtuytgtu rs; fk Uvl efu Url =u NfU
bk zt fUeci XfUbrtY dY mk fUv fu Uyl w mhK be................................................
........................................................, fkUvl efuU=turl =uNfUtfUeWvr:r; bfkUvl e
fUe mtbtg bwnh tdtRodRo>
The Common Seal of ..................................... was hereunto affixed pursuant
to a Resolution of the Board of Directors of the Company Passed at a
meeting held on the ........................... day of .............................. 200 ......... in
present of Shri ..................................................................................... and
Shri ................................................................................................ two of the
Directors of the Company who have executed these presents.
319
CHAPTER-10
A-12
The Manager,
UCO BANK
........................................ Date ........................... 20
Dear Sir,
With reference to my/our Cash Credit Account with the Bank against securities
mentioned in Schedule A hereunder we admit that the Balance due on ...............................
................................. exclusive of interest from............................................................................
was Rs. .................................. (Rupees ........................................................................................
..................................................). I/We also admit the correctnes of the account on the footing
of which the said amount is due.
As the Bank has agreed to continue the said Cash Credit Account against securities
mentioned in Schedule B hereunder upto the limit of Rs. ......................................... in principal,
I/we have passed a fresh Promissory Note and the other documents for the said amount of
Rs. ................................................ (being the said limit upto which Cash Credit is to be
operated) by way of collateral security and in renewal of my/our previous Pronote and other
documents.
Schedule A Schedule B
Yours faithfully,
Note : In the event of any controversy arising out of Hindi Version of this Form, the original
English Text of it will be treated as authoritative.
320
CHAPTER-10
Y-12
ck"fU,
gqfUtucfU
......................................... r=l tkfU........................20
rg bntu=g,
RmfuUl eau=e dRoyl wmqae IfUObWrrF; r;Cqr;gtvh cfUbbuhu/nbthul fU=e }UK Ft;ufuU
mkck" bnb gn JefUth fUh;un rfU................................................................mugts fUtuAtu\zfUh
.............................................h. (........................................................................................hvgu ) fUe
hfUb...................................................................fUtucfUtgt :e>b/nb WmFt;ufUe mg;t fUtuCe
JefUth fUh;t nq/fUh;un rsmbWvgwo; hfUb cfUtgt ni>
aqkrfU cfU l eaufUe yl wmqae IFObWrrF; r;Cqr;gtvh W; l fU=e }UK Ft;ufUtu
............................................. h. fuUbqt"l fUe mebt ;fUattqhFl uvh mnb; ntudgt ni, y;&
bl u/nbl umkvtrJofUr;Cqr; fuUv bytih yvl urvAtuJal -vt YJkyg =;tJustfUtul Jef]U; fUh;u
nwY..............................................h0 (l fU=e }UK muvrhattl fUe mebt) fUe W; hfUb fuUrtY
l gt Jal -vt ytih yg =;tJus vtrh; rfUgt ni>
yl wmqae_IfUO yl wmqae_IFO
CJ=eg,
321
CHAPTER-10
Y/A 12Y/A
gq fUtucf UCO BANK
NtFt
BRANCH
}UK/ r;Cqr;gtfUetrt mqalt
ACKNOWLEDGEMENT OF DEBT/SECURITIES
mkgt/ No. .......................................... r=l tkfU/ Date : ...............................
muJt b/ To
M/s. .................................................
.................................................
.................................................
rg bntu=g/bntu=gdK/ Dear Sir/Sirs,
mk=Co&ytvfUt }UK/ l fU= W"th Ft;t................................................
Re : Your Loan/Cash Credit A/c. ..................................................
1. nb mq ra; fUh;un rfUytvfu U}UK/ l fU=W"th Ft;ufUt Nu M;theF ..........................................
fUtuhvgu................................ (hvgu......................................................................................) mul tbu
:t>
We beg to inform you that balance of your loan/cash credit account on ........................
was debit Rs. ................................ (Rupees ..........................................................................)
2. gn NuMytih mbg-mbg vh Ft;ubl tbuNuMrl l rtrF; fuUtht r;Cq; ni _
btkd Jal vt h. ........................................................... ;theF ................................. gqfUtucfUfuU
vG b........................................................................................................................ tht ytnrh; >
m;; r;Cq r; vt ;theF .............................................................. dthk xevt ;theF ....................................
h.................................. fUemebt ;fU..................................................................................... tht
n;tGrh; rdhJe fUhth vt ;theF ................................... rdhJe mtbtl ..........................................
..........................................................................;tucfUfuUvtmmbg-mbg vh sbt fUhtY dgun>
=] rck "fUfUhth ;theF ............................................................................................. mCebq ;oat mvrtgt
322
CHAPTER-10
fuUrtY rJNuMv mu........................................................................................................................
.........................................................................................................................................................
......................................................... ytr;gtkNtrbt n ;:t stu.................................................
...........................................................................................................:tl vh hFe ytih v\ze n>
........................................................... br:; yat mkvrt fUt mtbrgfU/Jr"fUck"fUrsmfUt m]sl
.....................................................................b........................................................20 ..............
.........................................................fu............................................ r=l nfUrJtu FtfUtusbt fUhfu U
rfUgt dgt ni>.........................................20 ............................ fu.........................................................
r=l fUtuvksef]U; rJtuF tht rfUgt dgt ni ;:t stucfU fuU r;Cqr; hrsxh fuU Ft;t cne
vtt........................................................................................................................... vh =soni>
This balance and the balance from time to time in debit in the account are secured
by :
Demand Promissory Note for Rs. .................................. dated ..................................... drawn
by .............................................................................................................................. in favour of
UCO BANK .........................................................................................................................................
.................................................................. Letter of Waiver dated ................................................/
Letter of Continuing Security dated ................................................ Letter of Guarantee
dated ................................................ signed by.................................................................................
............................................................................................................................................................
................................................ to the extent of Rs. .................................... Agreement of pledge
dated ................................................ of stocks of ............................................................ from time
to time deposited with the Bank.
Agreement of Hypothecation dated .....................................................................................
of all tangible movables including ................................................................................................
............................................................................................................................................................
........................................................................................................................ situate lying and being
at ................................................ Equitable/Legal Mortgage of immovable property situated
at .................................................................................... created by deposit of title deeds made
at .................................................................................... on the .................................... day
of .................................... 20 ............/ by a registered deed dated the .................................... day
of ................................................ 20 ........................ and recorded in the Banks security register
at folio ................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
323
CHAPTER-10
3. gufUFt;u=th tht htsJ xtv vh ytg-vth n;tGh fUedgel eau=enwRovwr ytih dthkxefU;toyt
tht htsJ, xtv vh ytg-vth n;tGh fUht fUh l eau=e dge mnbr; fuUmt: Jn mvqKoVUtbof]Uvgt
g:tNeD{cfUfUtuttixt =>
Please return this form intact to the Bank as soon as possible with the confirmation
below signed across a revenue stamp by borrower(s) and with the concurrence below of the
guarantor/s also signed across revenue stamps.
4. RmfuUmt: =qmhur; ytvfuUrhfUtzofuUrtY n>
A duplicate is sent herewith for your record.
CJ=eg/ Yours faithfully,
ck"fU/ Manager
mktl fU/ Encl. :
324
CHAPTER-10
r; / To r=l tkfU/ Date ............................. 20 ............
gq fUtucf UCO BANK
1. b/nb Y;=Ttht Qvh c;tY yl wmth h................................................................................ fUe
htrN fuUrtY............................................................................ vh buhe/ nbthe}UKd{;;t yrCJefUth
fUh;t nq/fUh;e nq/fUh;un ytih RmfUe vwr fUh;t nq/fUh;e nq/fUh;un ytih vql &yrCJefUth fUh;t nq/
fUh;e nq/fUh;un rfU}UK Wvh c;tY dY Zkd mur;Cq; ni ytih.....................................................
fUtur;Cqr; ytih nfU/rJtuF fUe sbt tht mtbrgfUck"fUfuUWvgwo; tuF vqKo;&ttdqytih CtJe
n ;:t WmfuUy"el r;Cqr; Ce vqKo;&ttdqytih CtJe n ;:t b/nb WmfUe N;tufuUbw;trcfU
ytvfuUr; rsbu=th nq/n>
I/We hereby confirm and akcnowledge my/our indebtedness to you Bank on ..........................
in the sum of Rs. ..............................................................................................................................
as stated above and futher acknowledge that the debt is secured in the manner stated above
and that the aforesaid doucments of security/and the equitable mortgage by deposit of title
deed on ........................................................... are in full force and effect and the security
thereunder is also in full force and effect and that I/We am/are liable to you in accordance
with the terms thereof.
2. b/nb Y;=Ttht vwr fUh;t nq/fUh;e nq/fUh;un rfUgn yrCJef]Ur; vrhmebl yr"rl gb, 1963 fUe
"tht 18 fuUyk;do; buhe/nbthe =ug;t fuUv brl vtr=; fUe dRon>
I/We hereby confirm that this acknowledgement is executed as an acknowledgement
of my/our liability for the purposes of section 18 of the Limitation Act, 1963.
.................................................................
(xtv)/ (Stamp)
.................................................................
(xtv)/ (Stamp)
.................................................................
(xtv)/ (Stamp)
325
CHAPTER-10
1. b/nb dthkxefU;tovqJor; vwr ytih yrCJefUth mumnb; nq/n ytih DtuKt fUh;t nq/fUh;e nq/fUh;u
n rfUbuhu/nbthutht n;tGrh; ytih Qvh l tux rfUgt dgt dthkxe vt vqKo;t CtJe ytih ttdqni ytih
b/nb WmfUe N;tufuUbw;trJfUytvfuUr; rsbu=th nq/n>
I/We, the guarantor/s, concur in the foregoing confirmation and acknowledge and delcare
that the letter of guarantee signed by me/us and above noted is in full force and effect and
that I/We am/are liable to you in accordance with the terms thereof.
2. b/nb Y;=Ttht vwr fUh;t nq/fUh;e nq/fUh;uni rfUJn yrCJef]Ur; vrhmebl yr"rl gb, 1963
fUe "tht 18 fuUyk;do; buhe/nbthe =ug;t fuUv brl vtr=; fUe dRon>
I/We hereby confirm that this acknowledgement is executed as an acknowledgement
of my/our liability for the purposes of section 18 of the Limitation Act, 1963.
.................................................................
(xtv)/ (Stamp)
r=l tkfU/ Date ...............................
l tux &gufUW"thfU;toytih dthkxefU;tofUtuWra; bqg JdofuUytd-ytd htsJ xtvtvh n;tGh
fUhl uatrngu>
Note : Each Borrower and guarantor must sign across a revenue stamp of appropriate
denomination.
tuF staudY/ Document Checked
..........................................................
r=l tkfU/ Date ......................................
rxvKe&rfUme VUfoUgt rJJt= fUtur:r; bykd{use vtX yr"btrK; mbSt stYdt ytih ykd{use vtX
yrCCtJe ntudt>
Note : In the event of any discrepancy or dispute the English version will prevail.
326
CHAPTER-10
(To be used when Borrowers are a Company or Firm) A-21
To
UCO BANK
................................................................................
Gentlemen,
In consideration of your agreeing to open and/or continue, at my/our request, an account
or accounts i n your books and/or openi ng a l etter(s) of credi t i n the Name
of .....................................................................................................................................................
hereinafter called (the Customers) either in one or more of your branches in Bombay or
the Head Office and branches in Calcutta or any other branches in any part of India or
outside India, I/we ........................................................................................................................
............................................................ of ..........................................................................................
hereby agree and undertake to save you harmless and keep you indemnified from and against
all claims, demands, losses, damages, costs, charges and expenses whatsoever you may
sustain or incur in respect of all moneys already advanced and paid to such Customers and
in respect of any liability incurred by you for such customers or in respect of any moneys
you may at any time advance or pay to or any liability you may incur for the use or
accommodation or on the credit of the Customers whether on current overdraft, cash credit
or any other account or by way of opening or continuing any new account special or otherwise
by opening letters of credit from time to time and negotiating bills thereunder or by way of
discount or otherwise in respect of bills of exchange, promissory notes or other negotiable
securities drawn, accepted or endorsed, by such customers or otherwise howsoever together
with all interest, discount, commission and other banking charges legal and other costs,
charges and expenses which may be or may become payable in connection therewith
PROVIDED NEVERTHELESS that my/our liability, under these presents shall not exceed in
the aggregate the sum of Rupees .......................................................................................... and
interest thereon at the rate of .............................. per cent per annum, from the date on which
demand for payment thereof shall have been made by you upon me/us.
AND I/WE FURTHER, AGREE as follows :
My/Our liability under these presents shall remain in full force until three calendar months
after I/we shall have given or sent to you notice in writing of my/our intention to discontinue
and determine these presents and shall have paid to you all moneys up to the limit of my/
our liability due at the expiration of such notice and in the event of my/all or any of us dying
327
CHAPTER-10
or being under any legal disability the liability of the survivors or survivor of us and of the
estate(s) and executors, administrators or legal, representives of the deceased guarantor shall,
continue until the expiration of three calendar months notice in writing given to you by such
survivors or survivor and the executors, administrators or legal representatives of such
deceased guarantor to determine these presents and you shall be at liberty on receipt of
such notice at any time within the said period of three calendar months to open a fresh
account or accounts for the customers and to appropriate thereto all payments subsequently
made to you by such customers and not expressly appropriated by such customers to the
old account without in any way affecting my/our liability under these presents to the extent
aforesaid.
We hereby consent to your making any variance that you may think fit in the terms of
your contract with the principal debtor to your determining, enlarging or varying any credit to
him, to your making any composition with him or promising to give him time or not to sue
him and to your parting with any security you may hold for the guaranteed debt. We also
agree that we shall not be discharged from our liability by your releasing the principal debtor
or by any act or omission of yours the legal consequence of which may be to discharge the
principal debtor or by any act of yours which would, but for this present provision, be
inconsistent with our rights as sureties or by your omission to do any act which, but for this
present provision your duty to us would have required you to do. Though as between the
principal debtor and ourselves we are sureties only, we agree that as between yourselves
and us we are principal debtors jointly with him, and accordingly we shall not be entitled to
any of the rights conferred on sureties by sections 133, 134, 135, 139 and 141 of the Contract
Act.
If any member or the Customers firm is adjudicated insolvent or if the firm is dissolved
or if the customers company is, taken into liquidation whether voluntary or otherwise or if
the customers firm or company enters into any arrangement or makes any composition with
the creditors thereof you may (notwithstanding payment to you by me/us or any other person
of the whole or any part of the amount of my/our liability under these present(s) rank as
creditors and prove against the assets of such firm or company for the full amount of your
claim or agree to and accept any composition in respect of the same and you may and
shall receive and retain the whole of the dividends composition or other, payments thereon
to the exclusion of all my/our rights under these presents against such customers in
competition with you until your claim is fully satisfied and I/we shall not by paying off the
amount due by me/us to you under these presents or any part thereof or upon any other
ground prove or claim to prove in respect thereof or any part thereof until the whole of your
claim against the customers has been satisfied.
328
CHAPTER-10
To the intent that you may obtain satisfaction of the whole of your claim against the
cmstomers I/we agree that you may enforce the payment of and recover the full amount
due by me/us under these presents notwithstanding any such proof or composition as
aforesaid and notwithstanding any other indemnity security or remedy which you hold or be
entitled to in respect of the sum due to you by such customers and notwithstanding any
charges for interest which may be debited in your accounts with the customers or in any
other accounts upon which such customers may be liable.
Notwithstanding anything hereinbefore contained my/our liability under these presents
shall extend to all accounts of the customers whether the same are the account or accounts
of such customers solely or are accounts on which such customers may become liable jointly
in any manner whatsoever with any company or firm or person or persons and in whatever
name the same may stand and the same shall not be affected by/any change in the
constitution or name of the customers firm or company or any change in the constitution of
the Bank its successors or assigns or by its absorption in or by its amalgamation with any
other Bank or Banks.
You shall also be at liberty to release or discharge any of us from the obligations of
this guarantee, or to accept any composition from or make any other arrangements with any
of us without thereby prejudicing or affecting your rights and remedies against the other or
others or us.
Our liability under these presents shall be joint and several.
As WITNESS my/our hand(s) this ............................................... day of ..............................
one thousand nine hundred and ............................................................
Yours faithfully,
This clause will be deleted when there is only one guarantor.
329
CHAPTER-10
A-21A
(To be used in case of individual Borrower)
To
UCO BANK
.......................................................
In consideration of UCO Bank (Hereinafter called the Bank agreeing to open and/or
continue, at my/our request an account or accounts in the books of the Bank and/or opening/
continuing a letter(s) of credit and/or issuing/having issued guarantees in the name and/or
on behalf of .......................................................................................................................................
................................................................................................................................................................
............................................................ (hereinafter called the Customer) or otherwise giving
credit or affording banking facilities for so long as the Bank may think fit, to the Customers
I/We ......................................................................................................................................................
................................................................................................................................................................
of ......................................................................................................................................................
hereby agree and undertake on demand to pay and discharge all present and future
indebtedness and liabilities of the Customers to the Bank and to save the Bank harmless
and keep the Bank indemnified from and against all claims, demands, Losses, damages,
costs, charges and expenses whatsoever which the Bank may sustain or incur in respect of
all moneys already advanced and paid to such Customers and in respect of any liability
incurred by the Bank for such Customers or in respect of any moneys the Bank may at any
time advance or pay to or any liability the Bank may incur for such Customers whether on
current, overdraft, cash credit, demand loan, term loan or any other accounts or by way of
opening or continuing any new account special or otherwise, or by opening letters of credit
from time to time and negotiating bills thereunder or by way or discount or otherwise in
respect of bills of exchange, promissory notes or other negotiable securities drawn, accepted
or endorsed by such Customers or under the Guarantee(s) issued by the Bank on behalf of
the Customers or otherwise howsoever together with all interest, discount, commission and
other banking charges, legal and other costs, charges and expenses which may be or may
become payable in connection therewith PROVIDED NEVERTHELESS that my/our liability and
the liability of each of us under these presents shall not exceed in the aggregate the sum
of Rupees ............................................................................................................................................
and interest thereon at the rate of .............................. per cent per annum or at such rate or
rates of interest which may be notified from time to time by the Bank to me/us from the
330
CHAPTER-10
date on which demand for payment thereof shall have been made by the Bank upon me/us.
AND I/WE FURTHER AGREE as follows :
(1) My/Our liability under these presents is a continuing one for all sums whatsoever
which may at any time be or become payable by the Customers to the Bank on any account
whatsoever with interest and all costs and charges and expenses and shall remain in full
force until three calendar months after I/we shall have given or sent to the Bank notice in
writing of my/our intention to discontinue and determine these presents and shall have paid
to the Bank all moneys upto the limit of my/our liability due at the expiration of such notice
and in the event of my/all or any of us dying or being under any legal disability the liability
of the surivivors or survivor of us and of the estate(s) and executors, administrators or legal
representatives of the deceased guarantor shall continue untill the expiry of three calendar
months notice in writing given to the Bank by such survivors or survivor and the executors,
adminsitrators or legal representatives of such deceased guarantor to determine these
presents and payment of all moneys due to the Bank and the Bank shall be at liberty on
receipt of such notice at any time within the said period of three calendar months to open
a fresh account or accounts for the Customer and to appropriate thereto all payments
subsequently made to the Bank by such Customers and not expressly appropriated by such
Customers to the old account without in any way, affecting my/our liability under these presents
to the extent aforesaid.
(2) I/We hereby consent to the Bank making any variance that the Bank may think fit
in the terms of the account of the with the Bank and to Banks determining, enlarging or
varying any credit to the Customers and to the Bank making any compositions with him or
promising to give him time or not to sue him and to the Bank parting with any security it
may hold for the guaranteed debt.
(3) I/We agree that the Bank will have full discretionary powers without any further
consent from me/us and without in any way affecting my/our liability under the guarantee to
renew or vary the terms of the overdraft or cash credit account or demand loan or term
loan accounts or other accounts or to renew the facility and obtain fresh documents in renewal
of the documents now taken or to be taken or part with any security or securities received
or to be received from the Customers and that I/We shall not be discharged from my/our
liability by any such act on the part of the Bank or by the Bank obtaining renewal of
documents or fresh documents from the Customers or by extension of the period of validity
of such documents.
(4) I/we also agree that I/we shall not be discharged from my/our liability by the Bank
331
CHAPTER-10
releasing the principal debtor or by any act or omission of the Bank the legal consequence
of which may be to discharge the principal debtor or by any act of the Bank which would,
but for this present provision be inconsistent with my/our rights as sureties or by the Banks
omission to do any act which but for this present provision the Banks duty to me/us would
have required to do. Though as between the Customers and myself/ourselves. I/we am/are
surety/sureties only, I/we agree that as between the Bank and me/us, I/we am/are principal
debtor/s, jointly with the Customers and accordingly I/we shall not be entitled to any of the
rights conferred on sureties by Sections 133, 134, 135, 139 and 141 of the Indian Contract
Act and hereby waive the same.
(5) If the Customer shall die or be adjudicated insolvent or enters into any arrangement
or makes any composition with his creditors the Bank may (notwithstanding payment to the
Bank by me/us or any other person of any part of the amount of my/our liability under these
presents) rank as creditors and prove against the assets of the customer for the full amount
of the Banks claim or agree to and accept any composition in respect of the same and the
Bank may and shall receive and retain the whole of the dividends composition or other
payments thereon to the exclusion of all my/our rights under these presents against such
customer in competition with the Bank until the claim of the Bank is fully satisfied and I/we
shall not by paying off the amount due by me/us to the Bank under these presents or any
part thereof or upon any other ground prove or claim to prove in respect thereof or any
part thereof until the whole of the Banks claim against the customer has been satisfied.
To the intent that the Bank may obtain satisfaction of the whole of its claim against
the Customer I/we agree that the Bank may enforce the payment of and recover the full
amount due by me/us under these presents notwithstanding any such proof or compostion
as aforsaid and notwithstanding any other indemnity security or remedy which the Bank may
hold or be entitled to in respect of the sum due to the Bank by such Customer.
(6) If, I/we now or shall hereafter take any security from the customer in respect of
my/our liability under this guarantee, I/we will not prove in the bankruptcy or insolvency of
the Customers in respect thereof to the prejudice of the Bank and such secruity shall stand
as security for the Bank and shall forthwith be deposited with and transfer to the Bank.
(7) I/we have fully satisfied myself/ourselves about the transaction which the Customer
have entered into/agreed to enter into with the Bank before signing these presents.
(8) Notwithstanding anything hereinbefore contained my/our liability under these
presents shall extend to all accounts of the customer whether the same are the account or
accounts of such customer solely or the account or accounts of a concern of which the
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customer is the sole proprietor or are the accounts or accounts on which such customer
may become liable jointly in any manner whatsoever with any company or firm or persons
and whether such account or accounts stands or stand either in the name of the customer
himself or in the name of any concern of which he is the sole proprietor or in any other
name and the same shall not be effected by any charge in the name of such account or
accounts or any change in the constitution of the Bank, its successors or assigns or by its
absorption in or by its amalgamation with any other Bank or Bank.
(9) I/We agree that a statement of account signed by an officer of the Bank showing
the amount due by the customers as appearing in the books of account of the Bank will be
sufficient proof of the liability of the Customers and the same will be binding on me/us and
I/we promise and agree to pay on demand being made upon me/us by the Bank the amount
due at the foot of the said statement of account with interest mentioned above.
(10) Any admission or acknowledgement in writing by the Customer of the amount of
indebtedness of the Customer to the Bank shall be binding and conclusive on and against
me/us, my/our heirs, executors, administrators and legal representatives in all courts of law
or otherwise and the Customer shall be my/our agent for giving such acknowledgements from
time to time on behalf of myself/ourselves and my/our heirs, executors, adminsitrators and
legal representatives.
(11) The Bank shall also be at liberty to release or discharge any of us from the
obligations of this guarantee or to accept any composition from or make any other
arrangements with any of us without thereby prejudicing or affecting the Banks rights and
remedies against the other or others of us. I/We waive in the Banks favour all or any of
my/our rights against the Bank or the provisions of this guarantee.
(12) The guarantee given by me/us hereunder is in addition and without prejudice to
any other guarantee or securities which the Bank may now or hereafter have from me/us or
any of us or from the Customers or from any one else in respect of any indebtedness or
liabilities hereby guaranteed.
(13) I/We further agree that in respect of my/our liability hereunder the Bank shall
have a lien on all securities belonging to me/us now or hereafter held by the Bank and all
moneys now or hereafter standing to my/our credit with the Bank on any current or any
other account whatsoever.
(14) A demand in writing shall be deemed to have been duly given to me/us or my/
our heirs or assigns by leaving the same at my/our last known address recorded with the
333
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Bank and shall be effectual notwithstanding any change of address or notwithstanding notice
thereof to the Bank and such demand if sent by post shall be deemed to be received by
me/us or my/our heir or assings 24 hours after posting thereof and shall be sufficient if signed
by any officer of the Bank and in proving such service it shall be sufficient to prove that the
letter containg the demand was properly addressed and put into the post.
(15) This guarantee shall ensure for the benefit of the successors and assigns of the
Bank.
Signature(s) of the Guarantor(s)
Date ............................... ..............................................................
Place ............................... ..............................................................
..............................................................
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CHAPTER-10
Y/A-27
gq fUtucf UCO BANK
WvCtu;t }UK
CONSUMER LOAN
gn fUhth yts ............................................................ fuU....................................................
r=l fUtu........................................................................... stu........................................................
fUt/fUevwt/vwte/vl eni ytih........................................................................................................... b
rl JtmfUh;t ni/fUh;eni ;:t ttC fuUrtY..........................................................................................
bfUtgofUh;t ni/fUh;e ni (rsmuRmbRmfuUvat;TIIW"thfU;toOOfUnt dgt ni ytih sc ;fUmk=Cotht
yvJrso; gt WmfuUrJh l ntu;c ;fURmv= bWmfuUWthtr"fUthe, rl vt=fU, NtmfU, r;rl r"
YJkmbl w=urN;eNtrbt mbSustYkdu) ytih..........................................................................................
stu........................................................................................................................ fUt/fUe vwt/vwte/
vl e ni YJk........................................................................... brl JtmfUh;t ni/fUh;e ni ;:t ttC
fuUrtY......................................................................................................... bfUtgofUh;t ni/fUh;e
ni (rsmuRmbRmfuUvat;TIIdthkxefU;toOOfUnt dgt ni ytih sc ;fUmk=Cotht yvJrso; gt WmfuU
rJh l ntu;c ;fURmv= bWmfuUWthtr"fUthe, rl tvt=fU, NtmfU, r;rl r" YJkmbl w=urN;e
Ntrbt mbSustYkdu) ytih gqfUtucfU, stucfUfUthe rJr" (mkNtu"l ) yr"rl gb, 1985 tht g:tmkNtur";
cfUfUthe fkUvl e (Wvf{btfUt ysol ytih yk;hK) yr"rl gb, 1970 fuUy"el drX; YfUrl drb; rl fUtg
ni ;:t rsmfUt "tl fUtgtotg, 10, rJj ce tittug bnthts mhKe, fUtutfUt;t-700 001 bYJkrsmfUe
YfUNtFt, yg :tl tfuUyttJt,.......................................................................................... b
Ce ni (rsmuRmbRmfuUvat;TIIcfUOOfUnt dgt ni ytih sc ;fUmk=Cotht yvJrso; gt WmfuU
rJh l ntu;c ;fURmv= bWmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt mbSustYkdu) fuUcea
rfUgt st;t ni>
THIS AGREEMENT is made this ....................................... day of .........................................
BETWEEN ........................................................................................................., son/daughter/wife
of .........................................................................., residing at ..........................................................
................................................................................................................... and working for gain at
......................................................................................................................................... (hereinafter
called the Borrower which expression shall unless excluded by or repugnant to the context
be deemed to include his heirs, executors, administrators, representatives and assigns) and
..................................................................................................................... son/daughter/wife
of ........................................................................................................................., residing
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CHAPTER-10
at ................................................................................................................................... and working
for gain at ...........................................................................................................................
......................................................... (hereinafter called the Guarantor which expression shall
unless excluded by or repugnant to the context be deemed to include his heirs, executors,
administrators, representatives and assigns) and UCO Bank, a body corporate constituted
under the Banking Companies (Acquisition & Transfer of undertakings) Act, 1970 as amended
by the Banking Laws (Amendment) Act, 1985 and having its Head Office at No. 10, Biplabi
Trailokya Maharaj Sarani, Kolkata - 700 001 and a branch, interalia, at ..................................
........................................................................................... (hereinafter called the Bank which
successors and assigns).
aqrfU/ WHEREAS :
(1) W"thfU;tol uYumbtt Fhe=l unu;wrsmfUt vqht rJJhK RmfuUl eaurtFe dRoyl wmqae br=gt
dgt ni/rsmuRmbRmfuUvat;TIIW; bttOOfUnt dgt ni), cfUfUe WvCtu;t }UK gtusl t fuU
y"el ............................................................h. fuU}UK fuUrtY cfUfuUvtmytJu=l rfUgt
ni>
The Borrower applied to the Bank for a loan of Rs. ....................................................
under the Consumer Loan Scheme of the Bank for purchase of goods, full particulars
where-of are given in a schedule hereunder written (hereinafter referred to as the paid
goods).
(2) cfUl uW"thfU;toYJkdthkxefU;tofuUyl whtu" vh W"thfU;tofUtu.............................................h.
fUe htrN, WmfUe awfUti;e rl l rtrF; her; mur;Cqr; hnl uvh ytih rl l rtrF; rl ck"l , N;tuYJk
mk rJ=t fu Ur; W"thfU;toYJkdthk xefU;tofu Umnb; ntu l uvh............................................................
fUtuW"th YJkyrd{b fuUv br=gt ni&
The Bank has at the request of the Borrower and the Guarantor lent and advanced to
the Borro\ver on .............................................................. a sum of Rs. .................................
on having the repayment thereof secured in the manner following and. the borrower
and the Guarantor agreeing to !he following terms, conditions and convenants :
yc RmfuUtht RmfuUvGfUthtfuUcea gn fUhth rfUgt st;t ni ytih Wl fuUtht gn DturM;
rfUgt st;t ni&
NOW IT IS HEREBY AGREED AND DECLARED by and between the parties hereto
as follows :
1. W; fUhth fu Uyl w mhK byti h c fUtht W"ttfU;tofUtu............................................................
.............................................h. fUeW; htrN W"th YJkyrd{b fuUv br=Y stl ufuUr;VUtJv
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CHAPTER-10
W"thfU;toRmfuUtht yvl uW; btt fUtu, rsmfUt vqht rJJhK RmfuUl eaurtFe dRoyl wmqae br=gt
dgt ni,.........................................................................................................h. fuUbqt"l ytih Wm
vh RmbRmfuUvat;TrJrl r=o =h vh gts YJkW; r;Cqr; fuUmkhGK ytih/gt g"tvqJtuo; cfUfUtu
=ug W; "l fUe Jmqte bcfUtht Wvd; fUe st mfUl uJtte ttd;, Cth YJkFaofUe mgfTU
aqfUti;e fuUrtY "b Cth ytih at; r;Cqr; fuUv bcfUfuUvt b=]rck"fUhF;t ni>
In pursuance of the said agreement and in consideration of the said sum of
Rs. .................................................................. lent and advanced as aforesaid by the Bank to
the Borrower, the Borrower doth hereby hypothycate in favour of the Bank his said goods
fully described in the schedule hereunder written by way of first charge and continuing security
for due repayment of the principal sum of Rs. .................................................................. and
interest thereon at the rate hereinafter specified and costs, charges and expenses that may
be incurred by the Bank for the protection of the said security and/or in the realisation of
said moneys payable to the Bank as aforesaid.
2. W"thfU;to Rmb RmfuU vat;T g:tWrrF; gts, gts fUh YJk muJt Cth
mrn; ........................................................................... h. fUe W; htrN fUt Cwd;tl cfU
fUtu........................................................................... h. fUe............................................................
mbtl btrmfU rfU;htfU fUhudt, Yume :b rfU; fUt Cwd;tl .............................................. fuU
.............................. r=l fUtugt WmfuUvqJorfUgt stYdt ytih gufUytl wf{rbfUrfU; fUt Cwd;tl
gufUytl wf{rbfUfiUtzh btn fu............................................. r=l fUtugt WmfuUvqJorfUgt stYdt>
W"thfU;to............................................. h. fUe W; htrN vh Cth;eg rhsJo cfU fUe =h
mu............................................................yr"fUvhk;wgql ;b..............................%r;JMofUe =h
mu=irl fUNuMvh tibtrmfUyk;htt vh gts YJk..............................%r;JMofUe =h mutibtrmfU
yk;htt vh gts fUh ;:t ..............................%r;JMomuJt Cth fUt Cwd;tl cfUfUtufUhudt>
gts fUtusc YfUt rfUgt st;t ni ytih bqt"l fuUmt: stu\zt st;t ni ;tuYumugts fuUCwd;tl fUe
yvuGt mkck"e cfUfuUyr"fUth vh r;fqUt Cth ztturcl t Jn bqt"l fUt ykN btl t stYdt>
vhk;wrVUh Ce cfUgts fUe Wvgwo; =h bmkNtu"l gt J]r gt ;tuyvl uYfUbtt
rJJufUtr"fUth muW=thfU;tofUtumqal t =ufUh gt mbg-mbg vh Cth;eg rhsJocfUtht sthe btdo=Neo
rmtk;tfuUyl wmth fUh mfU;t ni ytih W"thfU;toRmfuUtht gts-=h bYumumkNtu"l YJkJ]r fuUr;
mnb; ni ;:t RmfUhth mugn y:otdtgt stYdt btl tuYumumkNtur"; gt Jr"o; gts-=h fUt WuF
RmbrfUgt dgt :t YJkW"thfU;toWmfUt Cwd;tl fUhl ufuUrtY mnb; :t ytih Jn RmfuUtht r;Cq;
ni>
The Borrower shall pay to the Bank the said sum of Rs. .....................................
along with interest, interest tax and service charge as hereinafter mentioned by........................
equal monthly instalments of Rs. ...................................... each; the first of such instalment
337
CHAPTER-10
shall be paid on or before ................................. day of .......................................... and each
successive instalment shall be on or before the............................................ day of every
successive calendar month. The Borrower shall also pay to the Bank interest on the said
sum of Rs. .................................... at the rate of .................. % over the Reserve Bank of
India rate with a minimum .............. % per annum with quarterly rests on daily balances
alongwith interest tax at the rate of .......................... % per annum with quarterly rests and
a service charge of .................. % per annum Interest when compounded and added to
principal sum shall form part of the principal but without prejudice to the right of the Bank
to require payment of such interest.
Provided however that the above rate of interest may be revised or increased by
the Bank either in its sole discretion of which notice shall be given to the Borrower or in
accordance with the directives of Reserve Bank of India, issued from time to time and the
borrower hereby agrees to such revision and increase in the rate of interest and this
Agreement shall be construed as if such revised or increased rate of interest were mentioned
herein and agreed to be paid by the Borrower and are hereby secured.
2(Y) gr=bqt"l gt WvhturrF; gts fUe rfUme rfU; fuUCwd;tl bfUtuRogr;f{b ntu;tucfU
Yumugr;f{b fUe htrN vh gr;f{b fUe ;theF muCwd;tl gt Jmqte fUe ;theF ;fUCth;eg rhsJocfU
fUe =h mu..............................%yr"fUvhk;wgql ;b .............................. %fUe =h vh gt yg
Yume =htvh gts Ctrh; fUhl ufUt nfU=th ntudt stumbg-mbg vh W"thfU;tofUtumqra; fUe stY>
2.(a) In case there is any default in payment of any of the instalments either of the
rate of .................. % over the Reserve Bank rate subject to a minimum of ........................... %
per annum or at such other rates as may be notified to the Borrower from time to time on
the amount of such default from the date of default till payment or realisation.
3. W"thfU;toRmr;Cqr; fuUsthe hnl ufuU=tihtl W; btt fUtuyk;rh; l n fUhudt gt Wmu
yvl ufUs muytd l n fUhudt gt W; btt vh fUtuRoCth, ck"fU, "thKtr"fUth gt rJkdb m]rs;
l n fUhudt ytih Yumt fUtuRofUtgol n fUhudt stuW; btt vh cfUfuUvG bRmfuUtht m]rs; r;Cqr;
vh r;fqUt CtJ zttu>
The Borrower shall not during the continuance of this security transfer or part
with possession of the said goods or create any charge, mortgage, lien or encumbrance on
the said goods nor do anything which would prejudice the security hereby created on the
said goods in favour of the Bank.
4. gr= W"thfU;tog:tWvhturrF; mbg fuUCe;h cfUfUtuRmbRmfuUQvh fuUFkz 2 b
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CHAPTER-10
WrrF; rfUme rfU; ytih/gt gts fUt Cwd;tl fUhl ubaqfUgt WvuGt fUh;t ni gt gr= W"thfU;to
r=Jtrtgt gtgrl Keo; ntu;t ni gt W"thfU;tofUe rfUme mkvrt fuUrJh fUtuRorl vt=l sthe gt W=Td]ne;
rfUgt st;t ni gt W"thfU;tomuNtug YJk=ug vqhe htrN RmbRmfuUvqJoyk;rJo rfUme ct; fuUntu;u
nwY Ce cfUfuUrJfUv vh ;fUtt Ntug YJk=ug ntustYde ytih cfUfuUrtY gn rJr"vqKontudt rfU
Jn gt ;tu;fUtt gt WmfuUct=rfUme mbg W; btt fUtuyvl ufUsubtytih/gt W"thfU;tofUtu
fUtuRol turxmr=Y rcl t, atnuttufUl ettbe gt tRJux mkrJ=t tht W; btt fUe rJf{e fUhugt yg:t
WmfUt rl fUxtl fUhu;:t Yume rcf{e fuUNw ytdb fUt Wvgtusl t ;mbg cfUfUtuNtug YJk=ug "l
fuUvrhmbtvl bgt WmfuUr; fUhu>
If the Borrower shall fail or neglect to pay to the Bank anyone of the instalment
and/or interests mentioned in clause 2 hereinabove within the time mentioned as above or if
the Borrower be adjudged insolvent or if any execution is issued or levied against any property
belonging to the Borrower or if any order is passed for the appointment of a receiver of any
property of the Borrower then and in any of such cases the whole amount then due and
payable from the Borrower under this agreement shall at once at the option of the Bank
become due and payable notwithstanding anything hereinbefore contained and it shall be lawful
for the Bank forthwith or at any time thereafter to take possession of the said goods and/or
to sell or otherwise dispose of the said goods, without giving any notice to the Borrower,
either by public auction or by private treaty and to apply the net proceeds of such sale in
or towards the liquidation of the moneys for the time being due and payable to the Bank.
4(Y) gn rfUcfUtht W"thfU;toytfUtu=e stl uJtte }UK/yrd{btfUe vqJoN;ofuUv b
W"thfU;toRmfuUtht Rmct; vh mnbr; g; fUh;un rfUW"thfU;to}UK/yrd{btfUe y=tgde b
y:Jt Wl vh gts y:Jt =ug ;theF fUturfUme mb; rfU; fUe y=tgde baqfUfUh;tucfU
musimt XefUmbSufUx gt fUtrN; fUh mfU;uni>
4.(a) That the Borrowers hereby agree as a pre-condition of the loan/advances given
to them by the Bank that in case the Borrower commit default in the repayment of the loan/
partners/proprietors as defaulter in such manner and through such medium as the Bank or
5. g:tvqJtuo; v bl ettbe tht W; btt fUe rcf{e ntul ufUe =Nt bcfURmct; fuU
rtY J;kt ntudt rfUJn W; btt fuUrtY ctute tdtY ytih WmfUe Fhe= fUhu;:t f{g "l fUt
bwsht RmfUhth fuUy"el W"thfU;totht cfUfUtuNtug YJk=ug htrN fuUr; fUhu>
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CHAPTER-10
In the event of the said goods being sold by auction as aforesaid the Bank shall
be at liberty to bid for and purchase the said goods at such sale and set off the purchase
money against the amount due and payable by the Borrower to the Bank under this
agreement.
6. cfUgt WmfuUck"fUgt mntgfUck"fUgt cfUtht rl gturs; yg yr"fUtrhgttht
n;tGrh; W; rcf{e gt gr;; rcf{e fuUcfUfuUtuFufUtuW"thfU;toYume rcf{e muJmqt fUe dRo
htrN YJkYume rcf{e mumkckr"; FaofuUvgtot mbq; fuUv bJefUth fUhudt>cfUYume rcf{e vh
Yumt btt fuUbqg bntul uJtte fUbe gt rfUme ntrl gt yg:t fuUrtY =tge l n ntudt>
The Borrower shall accept the Banks accounts of the said sale or attempted sale
signed by the Bank or its Manager or Asst. Manager or other officers employed by the Bank
as sufficient proof of the amount realised by such sale and expenses in connection with
such sale. The Bank shall not be liable for diminution in price of the said goods at such
sale or for any loss or otherwise.
7. gr=Yume rcf{e muJmqt fUe dRofUtuRohtrN Wmmbg cfUfUtuNtug YJk=ug mCe "l
fuUvqKoCqd;tl fuUrtY yvgto; ntu;tuW"thfU;tobtkd rfY stl uvh ;fUtt cfUfUtu=ug NuMhtrN
fUt Cwd;tl fUhudt, vhk;wrVUh Ce Rmbyk;rJo rfUme Ce ct; mugn l n mbSt stYdt rfUJn
=]rck"fUhFe dRomkvrt fUe rcf{e gt rl bwor; l n ntul uvh Ce W"thfU;tomu;mbg cfUfUtu=ug NuM
YJkg:tvqJtu; ttd;, Cth YJkFaofUtuW"thfU;tomuJmqt fUhl ufuUcfUfuUyr"fUthtfUtul fUth;e
ni, rJNurM; fUh;e ni gt yg:t Wl vh r;fqUt Cth ztt;e ni gt WnCtrJ; fUh;e ni>
If any sum realised by such sale be insufficient for the payment in full all the
moneys then due and payable to the Bank, the Borrower shall immediately on demand pay
the balance then due to the Bank provided, however, that nothing herein contained shall be
deemed to negative, qualify or otherwise prejudice or affect the rights of the Bank to recover
from the Borrower the balance for the time being due from the Borrower to the Bank and
costs, charges and expenses as aforesaid notwithstanding that the hypothecated property
may not have been sold or released.
7(Y) cfUfUtu=ug ;:t cfUtht tt fUtuRoCe htrN Yumuyl wf{b byl gw; ntudt simurfU
cfUmbg-mbg vh yvl umvqKorJJufUmuyr;b v murl "torh; fUhu(RmfuUyr;rh;, cfUsimu
mbg-mbg vh rl "torh; fUhu, Rmu;c ;fU;:t rsmv batnuWak; Ft;ubsbt hF mfU;t ni)
Wvgwo; fuUvqJtod{n fuUrcl t, tt fUe dRohtrN fUt rJrl gtud rl l rtrF; v bntudt>
ii) r;eg;&Ctrh; gts fuUr;
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CHAPTER-10
iii) ;];eg;&ttd;, Cth ;:t cfUtht WXtY dY FatufuUr;, ;:t
7.(a) Any money due and payable to the Bank and received by the Bank shall be
in such manner as the bank may from time to time determine). Without prejudice to the
above, the monies received shall be appropriated in the following manner :
interest);
7(ce) sc ;fUrfUcfUfUtufwUt htrN fUt Cwd;tl l n rfUgt st;t ni atnuJn Cq;, J;obtl
gt CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, stuW"thfU;totht =ug ntugt rsmfuUrtY W"thfU;to
gntkRmfuUy"el gt yg:t =tge ntumfU;t ntuy:Jt ntuawfUt ntu;:t atnuJn "tl v bntu
gt r;CqfuUv b, W"thfU;togn mnbr; =u;t ni rfUcfUfUe mCe r;Cqr;gtkytih/gt bwtYkstufwUA
mugt rfUme Ce W=T=ug mu"trh; fUe stYde Jn cfUfuU"thKtr"fUth bntde ;:t/gt cfUfUtuWmfuU
}UK Ft;ubmbksl fUhl ufUt vqKoyr"fUth ntu>cfUfUtuW; r;Cqr; YJk/gt bwt bmuW"thfU;to
fuU=trgJ gt =ug;t fUtuWbtura; fUhl ufUe ;:t begt=e sbtytfuUbtbtubatnuJn Cwd;tl fuUrtY
vrhvJ nwyt ntuy:Jt l n, YJkW"thfU;tofUtumqra; rfY rcl t (;:t Jt= =tgh fUhl ugt rJr"fU
rf{gt thkC fUhl ufuUvqJogt vat;T) rsmv batnurJrl gtusl y:Jt Jmqte fUe J;kt;t ntude>
m=TCtJvqJofUytfUrtl htrN, stu=trgJ fUe htrN ntude, WmucfUmbkrs; fUh mfU;t ni>
7.(b) Until payment is made to the Bank of all the amounts, whether past, present or
future, actual or contingent, which may be payable by the borrower or for which the Borrower
may be or become liable hereunder or otherwise and whether as principal or surety the
borrower agrees that the Bank shall have a lien and/or right of set off on all securities and/
or monies whatsoever held at any time by the Bank on account of or to the credit of the
Borrower in or for any account or manner or purpose howsoever. The Bank shall be at liberty
to discharge the said obligations / or liabilities of the borrower out of the said securities and/
or monies, and in case of term deposits, whether the same have matured for payment or
not, and may appropriate or realise them in the manner thought fit by it and without notice
341
CHAPTER-10
to the Borrower (and whether before or after filing suit or taking any legal proceedings). The
Bank may set off an amount estimated by it in good faith to be the amount of that obligation.
7.(F)W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY YfU
vqJoN;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn W"thfU;to
tht tt fUe dRo/ tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zu<W"thfU;totht
"trh;/"trh; fUe stl uJtte ;mck"e =ug;tytytih WmfuUvttl bW"thfU;totht fUe dRoaqfU(gr=
fUtuRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr= Wra; ytih
ytJgfUmbSu;tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfU
tht tr"f]Ur; rfUme yg Ysme fUturl l rtrF; mCe gt RmfUth fUe fUtuRoCe
stl fUthe =umfU;t ni&
F) W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t
gt ytkfU\zu, ytih
d) Wl =trgJtfuUvttl fUW"thfU;totht fUe stl uJtte aqfU, gr= fUtuRontu>
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih ytkfU\zu
mg ytih mne ni>
(iv) W"thfU;togn Jal =u;t ni rf &
fU) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsme cfUtht
fUx fUe dRoW; mqal t ytih ytkfU\zt fUt Wvgtud ;:t mkmt"l fUh mfU;t
ni<;:t
F) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUtuRoYsme mkmtr";
mqal t ytih ytkfU\zt gt yvl utht rl rbo; WmfuUWvt=tfUtuCth;eg rhsJocfU
tht RmfuUrtY rl r=o cfUt/rJteg mk:tytfUturJatht:o;w; fUh mfU;t ni>
7.(c) As a pre-condition, relating to grant of the loans/advances/other non-fund based
bank of information and data relating to the credit facility availed of/to be availed, by borrower,
obligations assumed/to be assumed, by borrower, in relation thereto and default; if any,
(ii) Accordingly, borrowers hereby agree and give consent for the disclosure by
the Bank of all or any such;
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CHAPTER-10
by borrower; and
obligation, as the Bank may deem appropriate and necessary, to
disclose and furnish to Credit Information Bureau (India) Ltd., and any
other agency authorised in this behalf by RBI.
authorised may use, process the said information and data disclosed
by the Bank; and
authorised may furnish fo consideration, the processed information and
data or products thereof prepared by them, to banks/financial institutions
and other credit guarantees, as may be specified by the Reserve Bank
of India in this behalf.
8. W"thfU;toRmfuUtht DturM; fUh;t ni rfURmfuUtht =]rck"fUhFt dgt btt rfUme Ce
fUth fuUmCe Cth, "thKtr"fUth YJkrJkdb mubw; ni ytih W"thfU;tofuUytgr;fUfUsubni ;:t
W"thfU;tol uYumt fwUA l n rfUgt ni gt stl cqS fUh l n ntul ur=gt ni gt rVUh Yume ct; fUt vGfUth
gt mkmdeol n hnt ni rsmfuUtht W"thfU;tofUturfUme fUth Wvgwo; her; muW; btt fUtu=]rck"fU
hFl umuhtufUt stY>
The Borrower hereby declares that the said goods hereby hypothecated is free
from all charges, liens and encumbrances whatsoever and is in the absolute possession of
the Borrower and the Borrower has not done (knowingly suffered to be done or has been
party or privy to anything whereby the Borrower may in any way be prevented from
hypothecating the said goods in the manner aforesaid.
9. W"thfU;toRmr;Cqr; fuUsthe hnl ufuU=tihtl nh mbg W; btt fUtuyAe YJkattq
ntt; bhFudt ytih yvl uFaovh WmfUe bhb; fUhtYdt ;:t gr=ytJgfUntu;turfUn Yumuvwsuo
gt vwstufUtuc=tudt stuxqx-VqUx dY nt>
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CHAPTER-10
The Borrower will at all times during the continuance of this security maintain and
keep in good and working order and repair at his cost the said goods and if necessary
replace any part or parts which may have been worn out.
10. RmrJtuF fuUrl ck"l tfuUyl wmth W"thfU;totht Cwd;tl bgr;f{b rf Y stl uvh gt
W"thfU;totht RmrJtuF fuUrfUn rl ck"l YJkN;tufuUCkd rfY stl ufUe =Nt bgt RmbRmfuU
vqJofuUFkz (4) bWrrF; rfUn Dxl t fuUDrx; ntul uvh ;:t cfUtht gn mtuaustl uvh rfU
WmfUe r;Cqr; F;hubni, cfUytih WmfuUyr"fUthe YJkYsx Rmct; fuUnfU=th ntdurfUJu
W"thfU;tofUtumqal t r=Y rcl t, turfUl W"thfU;tofUtusturFb YJkFaovh ytih gr= yvurG; ntu;tu
W"thfU;tofuUrtY gt WmfuUl tb byxl eofuUv brfUme Yumu:tl bJuN fUhsntW; btt
hFt dgt ntu;:t W; btt fUtuyvl ufUsubtytih/gt WmuW"thfU;toytih gt WmfuU=uJfUtgt
YsxtmuWmuJmqt YJktt fUhu;:t cfUWvgwo; gtusl fuUrtY yvl urfUme yr"fUthe fUtuW;
btt fUt rhmeJh rl gw; fUhl ufUt nfU=th ntudt ytih W; rhmeJh fUtug:tvqJtuo; W; btt yvl ufUsu
btul uJkWmuttufUl ettbe gt tRJux mkrJ=t tht cual ufUe Nr; ntude>
In default of payment by the Borrower in terms of these presents or in the event
of the Borrower committing any breach of any of the terms and conditions of these presents
or on happening of any of the events mentioned in clause (4) hereinbefore and if the Bank
thinks that its security is in jeopardy, the Bank and their officers and agents shall be entitled
without notice to the Borrower but at the Borrowers risks and expenses and if so required
as attorney for or in the name of the Borrower to enter at any place where the said goods
shall be and take possession of the said goods and/or to recover and receive the same
from the Borrower and/or servants or agents and for the purpose aforesaid the Bank shall
be entitled to appoint any of its officer as a Receiver of the said goods with power to the
said Receiver to take possession of the said goods as said and to sell the same by public
auction or by private contract.
11. W"thfU;tombg-mbg vh ytih nh mbg cfU, WmfuUYsxtYJkmuJfUtfUe rfUme Yumudihts
gt CJl b, sntW; btt ;mbg ntu, JuN fUhl u;:t WmfUt yJttufUl YJkrl heGK fUhl ufUe
yl wbr; =udt ytih cfUYJkWmfuUmuJfUtfUtuWvgwo; gtusl t fuUrtY g:tvurG; mCe mwrJ"tYk=udt>
The Borrower shall permit the Bank, their agents and servants from time to time
and at all times to enter upon any garage or building wherein the said good may for the
time being be and to view and inspect the same and shall render to the Bank and their
servants all facilities as may be required for the purpose aforesaid.
12. W"thfU;to=ug ntul uvh W; btt mumkckr"; mCe fUh fUt, gr=fUtuRontu, g:tmbg Cwd;tl
fUhudt>
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CHAPTER-10
The Borrower shall punctually pay all taxes, if any, relating to the said goods as
and when they shall become due.
13. cfURmbyk;rJo gt rJr" fuUyl wmth cfUtht gtu;g rfUn Nr;gtfUt gtud fUhl u
fuUrtY ctg l n ntudt ytih Yume Nr;gtfUt gtud l n fUhl umuntul uJtte rfUme ntrl fuUrtY
=tge l n ntudt>
The Bank shall not be bound to exercise any of the powers herein contained or
by law exerciseable by the Bank and shall not be liable for any loss arising from non-exercise
of such powers.
14. dthkxefU;to fuU yl whtu" vh cfU tht Rmb RmfuU vqJo WrrF; rl ck"l YJk N;tu
vh........................................ h. fUe W; htrN W"th YJkyrd{b fuUv bW"thfU;tofUtur=Y
stl ufuUr;VUtJv dthkxefU;toRmfuUtht..................................................h. fUe W; htrN ytih
Wmvh vqJtuo; =h vh mCe gts YJkmCe ttd;, Cth YJkFaoytih RmrJtuF fuUy"el =ug
yg mCe "l fuUmgfTUCwd;tl fUe dthkxe =u;t ni ;:t Rmbyk;rJo mCe rl ck"l , N;tuYJkmkrJ=t
fUt W"thfU;totht mgfTUmkvt=l YJkyl wvttl rf Y stl ufUe Ce dthkxe =u;t ni>
In consideration of the Bank having lent and advanced the said sum of
Rs. ............................................................... on terms and conditions hereinbefore mentioned
to the Borrower at the request of the Guarantor, the Guarantor doth hereby guarantee the
due payment of the said sum of Rs........................................................ and an interest thereon
at the aforesaid rate and all costs, charges and expenses and all other moneys payable under
these presents and also guarantee the due performance and observance by the Borrower
of all terms, conditions and covenants herein contained.
15. dthkxefU;toRmfuUtht btkd rf Y stl uvh cfUfUtuYumumCe "l fUt Cwd;tl fUhl ufUt fUhth
fUh;t ni stuRmrJtuF fuUy"el W"thfU;tomu=ug ntuytih rsl fUt Cwd;tl W"thfU;totht l n rfUgt
dgt ntu>
The Guarantor doth hereby agree to pay on demand to the Bank all moneys which
may become payable under these presents from the Borrower and not paid by the Borrower.
16. W"thfU;tofUturl bwo fUhl ugt rfUme Ce v bmtifUgofuUv bRmbyk;rJo rl ck"l
YJkN;tufUe ctc; W; W"thfU;tofUtur=Y dY rfUme mbg gt WmfuUr; ch;e dRoW=th;t mucfU
fuUyr"fUthtvh fUtuRor;fqUt CtJ l n v\zudt gt dthkxefU;tofUtuWmfUe dthkxe murl bwo; l n fUhudt
ytih W"thfU;tofUtug"t-vqJtuo; Yumt fUtuRombg, rhgtg; r=Y stl uvh gt WmfuUr; W=th;t ch;e stl u
vh cfUfuUrtY gn ytJgfUl n ntudt rfUJn WmfUe mqal t dthkxefU;tofUtu=uYJkcfUfuUrtY
345
CHAPTER-10
gn rJr"vqKontudt rfUJn W"thfU;tofuUrJh fUtgoJtne rfY rcl t dthkxefU;tofuUrJh fUtgoJtne fUhu
ytih W; r;Cqr; YJkW; W=thfU;tofuUrJh cfUfuUyr"fUthtfUturhsJohFu>
Any time granted to the said Borrower or any indulgence shown to him in respect
of the terms and conditions contained therein either in the shape of releasing or
accommodating the Borrower in any manner whatsoever will not prejudice the Banks rights
or release the Guarantor from his guarantee and it shall not be necessary, upon the Borrower
being granted any such time, concession or indulgence as aforesaid, for the Bank to give
notice thereof to the Guarantor and it shall be lawful for the Bank to proceed against the
Guarantor without proceeding against the Borrower and reserving the Banks rights against
the said security and the said Borrower.
17. cfUfuUr; W"thfU;tofUe }UKd{;;t mumkckr"; rfUme htrN fuUcthubW"thfU;totht
rtrF; v bfUtuRoJef]Ur; gt yrCJef]Ur; mCe gtgttg bgt yg:t dthkxefU;tovh YJkWmfuU
rJh ctgfUthe YJkrl atgfUntudt ;:t dthkxefU;tofUe ytuh mumbg-mbg vh Yume yrCJef]Ur; =ul u
fuUrtY W"thfU;todthkxefU;tofUt Ysx ntudt>
Any admission or acknowledgement in writing by the Borrower of the amount of
indebtedness of the Borrower to the Bank shall be binding and conclusive on and against
the Guarantor in all courts of law or otherwise and the Borrower shall be the Agent of the
Guarantor for giving such acknowledgements from time to time on behalf of the Guarantor.
18. g rv W"thfU;toYJkdthkxefU;tofuUcea dthkxefU;t fuUJt r;Cqni ;:trv dthkxefU;togn
fUhth fUh;t ni rfUcfUytih dthkxefU;tofuUcea dthkxefU;tobwg }UKe ni ;:t dthkxefU;toCth;eg mkrJ=t
yr"rl gb, 1872 fUe "tht 133, 134, 135, 139, 141 YJk145 tht r;CwytfUtu=t rfUn
yr"fUhtfUt nfU=th l n ntudt>
Though as between the Borrower and the Guarantor, the Guarantor is surety only,
the Guarantor agrees that as between the Bank and the Guarantor, the Guarantor is the
principal debtor and the Guarantor shall not be entitled to any of the rights conferred on
sureties by Sections 133, 134, 135, 139, 141 and 145 of the Indian Contract Act, 1872.
19. dthkxefU;toRmdthkxe-fUhth fuUmkck" brfUn Wvck"tfUtuCtJe fUhl ufuUrtY g:tJgfU
cfUgt W"thfU;tofuUrJh yvl umCe gt rfUn yr"fUthtfUtucfUfuUvt byr"grs; fUh;t ni>
The Guarantor waives in the Banks favour all or any of his rights against the
Bank or the Borrower as far as may be necessary to give effect to any of the provisions
regarding this Agreement of Guarantee.
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CHAPTER-10
20. W"thfU;toYJkdthkxefU;togn fUhth fUh;un rfUsc ;fUW"thfU;totht =ug mCe htrN fUt
Cwd;tl cfUfUtul n rfUgt st;t ni ;c ;fUcfUfUt "thKtr"fUth Wl fuUYumumCe btt YJkr;Cqr;gt
vh, stuyCe gt RmfuUvat;TrfUme mbg cfUtht rfUme Ce Ft;ub"trh; rfUgt stY ;:t cfU
fuUvtmW"thfU;toytih/gt dthkxefU;tofuUrfUme Ce Ft;ubyCe gt RmfuUvat;Tsbt mCe "l vh
cl t hnudt atnuJubegt=e sbthtrN fuUv bgt yg:t ntytih atnuYume sbthtrNgtkCwd;tl fuU
rtY vrhvJ nwRontgt l n ;:t cfUyvl ufUtu=ug rfUme htrN fuUcthubW"thfU;togt dthkxefU;to
fUturl r=o rfY rcl t YumurfUme "l fUt bwsht fUhl u;:t W"thfU;togt dthkxefU;tofUtumgfTUv mu
mqal t =ufUh g:tJgfUbtt YJkr;Cqr;gtfUe rcf{e fUhl uytih rcf{e fuUytdb fUt Wvgtusl yvl e
=ug htrN fUe ;wr fuUr; fUhl ufUt nfU=th ntudt ;:t RmrJtuF byk;rJo fUCe Ce ct; fUt gn
y:ol n tdtgt stYdt rfUJn rfUme Ce Ft;ubW"thfU;togt dthkxefU;tomucfUfUtu=ug rfUme NuM
fuUrtY y:Jt cfUtht ;mbg "trh; rfUme yr;rh; r;Cqr; vh rfUme Ce fUth fUe =ug;t fUe
ctc; cfUfuUmt"thK "thKtr"fUth fUtuyvJrso; fUh;e ni>
Until payment is made to the Bank of all the amounts which may be payable by
the Borrower, the Borrower and the Guarantor agree that the Bank shall have a lien upon
all goods and securities belonging to them which may now or at any time hereafter be held
by the Bank on any account whatsoever as also on all monies now or hereafter standing to
the credit of any of the accounts of the Borrower and/or the Guarantor with the Bank, whether
by way of term deposits or otherwise and whether or not such deposits may have matured
for payment and Bank shall be entitled to set off any such monies without reference to the
Borrower or the Guarantor any amounts so due to it and sell the goods and securities as
may be necessary with due notice to the Borrower or the Guarantor and appropriate the
sale proceeds towards satisfaction of its dues and nothing contained in these presents shall
be construed as excluding the general lien of the Bank for any balance due to the Bank
from the Borrower or the Guarantor on any account or in respect of any liability whatsoever
over any excess security for the time being held by the Bank.
RmfuUmtGe fuUv bWvrhl trb; W"thfU;toYJkdthkxefU;tol uWvrhrtrF; r=l , bnel uYJkJMobRm
vh yvl u-yvl un;tGh rf Y>
IN WITNESS WHEREOF the Borrower and the Gurantor abovenamed have hereto set and
subscribed their respective hands the day, month and year as above written.
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CHAPTER-10
yvrhrlr=o ylwmqae
SCHEDULE ABOVE REFERRED TO :
(=]rck"fUhFudY btt fUt rJJhK r=gt stY)
(Description of the hypothecated goods to be set out)
dthkxefU;tofuUn;tGh W"thfU;tofuUn;tGh
Signature of Guarantor Signature of Borrower
ltux &RmVUtbofuUrnk=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
Note : In the event of any controversy arising out of Hindi version of this Form, the original
english text of it will be treated as authoritative.
348
CHAPTER-10
A-36 (Revised)
(Advances to Road Transport Operators)
Memorandum of Agreement made this .............................. day of 20 ..........
BETWEEN .................................................................................................................................. son
of ............................................................................................................................................ residing
at ......................................................................................................................................................
by religion .................................................. by occupation ............................................................
hereinafter called the BORROWER (which expression shall unless excluded by or repugnant
to the context be deemed to include ............................................................ heirs, executors,
adminsitrators, representatives and (assigns) of FIRST PART ..................................................
............................................................ son of ................................................................................
residing at ............................................................................................................................................
by religion .................................................. by occupation ............................................................
hereinafter called the GUARANTOR (which expression shall unless excluded by or repugnant
to the context be deemed to included ...................................................................... heirs,
executors, adminsitrators, representatives and assigns) of the SECOND PART AND UCO
BANK having its head office at 10, B. T. M. Sarani, Kolkata-700 001 in the town of Kolkata
and Branch Office at ................................................................................ hereinafter called the
BANK (which expression shall unless exlcuded by or repugnant to the context be deemed
to include its successors and assigns) of the THIRD PART
WHEREAS :
(1) The Borrower carries on business of Transport Operatiors having its principal place
of business at .............................................................................
(2) In course of its aforesaid business the Borrower is the holder of a Permit
for ............................................ being Permit No. ............................................ granted
by .......................................................
(3) Being in need of funds for purchasing .......................................................bearing
Engine Number ............................................ Chasis Number ............................................ under
the said Permit in connection with his said business the Borrower and the Guarantor have
approached the Bank to lend and advance to the Borrower the sum of Rs. .................................
to be utilized solely by the Borrower for the aforesaid purposes on the security of
hypothecation of the said vehicle to which the Bank has agreed upon the terms and conditions
hereinafter mentioned.
349
CHAPTER-10
NOW THIS MEMORANDUM WITNESSETH as follows :
1. In pursuance of the sai d Agreement and consi derati on of the sum of
Rs. ................................. lent and advanced by the Bank to the Borrower (the receipt whereof
the Borrower doth hereby admit and acknowledge) the Borrower doth hereby charge and
hypothecate i n favour of the Bank as and by way of Fi rst Charge the sai d
................................. bearing Engine Number ............................................ Chasis
Number ............................................ and Policy Registration Number ............................................
including spare wheels, tyres, tubes and other spare parts, fittings, fixtures and tools belonging
thereto (hereinafter collectively referred to as the said Vehicle) as security for due repayment
of the said sum of Rs. ................................. together with interest thereon at the rate of
...................... per annum in the manner as hereinafter mentioned and costs, charges and
expenses that may be incurred by the Bank for the protection of the said security and/or in
realization of the said moneys payable to the Bank as aforesaid and all other moneys that
maybe due owing and payable by the Borrower to the Bank under these presents or by
operation of law or otherwise.
2. The Borrower doth hereby convenant to pay the said sum of Rs. .................................
together with interest thereon at the rate of ...................... per annum by equal monthly
instalments of Rs. ................................. each, first of such monthly instalments to be payable
on or before the ............................................ day of ................................. 20 ........... and
subsequent monthly instalments on or before the ................................. day of each and every
succeeding calendar month and shall also pay all moneys and costs charges and expenses
due owing and payable by the Borrower to the Bank under these presents or by operation
of law or otherwise.
3. The Borrower shall not transfer the said vehicle or create any mortgage charge or lien
or encumbrances affecting the said vehicle nor do anything which will prejudice this security
and the Borrower shall not sell or Part with possession of the said vehicle during the
continuance of this security.
4. The Borrower decl ares that the sai d vehi cl e shal l remai n garaged
at ............................................ The Borrower undertakes not to remove during the continuance
of this security the said vehicle from the said garage or to any place outside the territorial
jurisdiction for which the said vehicle is licenced to ply. The Borrower shall duly notify to the
Bank all change of address of the garage for the said vehicle.
5. It the Borrower shall commit any breach of the covenants conditions and stipulation
herein contained and on his part to be observed and performed or if any of the
350
CHAPTER-10
representations made by the Borrower to the Bank shall turn out to be false or if the Borrower
shall make default in payment of any moneys of the monthly instalment payable in the manner
and within the time hereinbefore mentioned or if any Receiver be appointed on the properties
of the Borrower including the said vehicle or if any attachment be levied on the properties
of this Borrower including the said vehicle or if the Borrower enters into any composition or
arrangement with his creditors or if the Borrower files any petition for insolvency or is adjudged
an insolvent then and in any such case the whole of the amount then remaining due and
owing to the Bank with interest as aforesaid shall forthwith become payable notwithstanding
anything herein before contained AND on the happening of any such events as aforesaid or
if any circumstances shall occur which in the judgement of the Bank is prejudicial to or is
likely to be prejudiced or imperil the security hereby created it shall be lawful for and the
Bank shall have right and power at the risk and expenses of the Borrower to seize and
take possession of the said vehicle from any place where the same may be without giving
any notice to the Borrower or the Guarantor and without recourse to any suit and without
prejudice to the Banks rights against the Borrower or the Guarantor as to any remedy for
any subsequent breach or otherwise under these presents.
6. Upon taking possession of the said vehicle the Bank shall be at liberty to sell the said
vehicle either by public auction or private treaty and at such price and subject to such terms
and conditions and stipulations and in such manner as the Bank may think fit and proper. It
is hereby expressly declared that the Bank shall not be liable under any circumstances
whatsoever for any action civil criminal or otherwise for taking possession of and selling the
said vehicle for enforcement of the security hereby created.
7. Out of the sale proceeds of the said vehicle the Bank will at the first instance retain
all expenses incurred by it for taking possession of the said vehicle and for selling of
attempting to sell the same and thereafter shall retain out of the sale proceeds the sum
sufficien to satisfy the loan given by the bank to the Borrower together with interest thereon
and all other moneys due owing and payable by the Borrower to the Bank under these
presents and also any other moneys and costs charges and expenses to which the Bank
may be entitled under these presents or by operation of law or otherwise and shall pay to
me Borrower balance if any of such sale proceeds.
8. In the event of the said vehicle being sold by public auction or private treaty as aforesaid
the Bank shall be at liberty to bid for and purchase the said vehicle. In the event of the
Bank electing to purchase the said vehicle the Bank shall be at liberty to adjust the purchase
price of the said vehicle against all moneys due to the Bank by the Borrower.
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CHAPTER-10
9. The Borrower and the Guarantor shall accept the Banks accounts of the said sale or
attempted sale sigened by its Manager or Accountant or other officers employed by the Bank
as sufficient proof of the amount realised by such sale and expenses in connection with
such sale. The Bank shall not be liable for any diminution in price of the said vehicle or for
any loss or otherwise.
10. If any sum realised by such sale be insufficient for the payment in full of all the moneys
then due and payable to the Bank. The Borrower shall immediately on demand pay the
balance then due to the Bank provided however that nothing herein contained shall be
deemed to nagative, qualify or otherwise prejudice or effect the rights of the Bank to recover
from the Borrower the balance for the time being due from the Borrower to the bank and
costs, charges, and expenses as aforesaid notwithstanding that the hypothecated property
may not have been sold or realised.
11. The Bank shall not be bound to exercise any of the powers to which the Bank is entitled
under these presents or by operation of law or by otherwise and shall not be liable for any
loss or damages whatsoever for non-exercise of any of such powers.
12. In th event of the Bank electing to file a suit in a Court of Law for enforcement of
security hereby created the Bank shall be at liberty to have one of its nominees to be
appointed a Receiver of the said vehicle for which the Borrower and the Guarantor do and
each of them hereby give consent to such appointment of Receiver.
13. During the continuance of this security the Borrower shall keep the said vehicle in good
and substantial repair including replacement of any parts and for proper working and running
condition and shall pay and discharge all license fee, road tax, garage rent and all other
impositions and outgoings payable in respect of the said vehicle in due time and shall also
company with all rules and regulations relating to the plying of the said vehicle attached to
the said Permit or otherwise and shall also comply with the provisions of the Motor Vehicle
Act. The Borrower shall produce original certificate of fitness for the said vehicle to the Bank
for its inspection.
14. The Borrower shall insure and keep insured said vehicle in the joint names of the Bank
and the Borrower under a comprehensive Policy including loss and damage by fire theft strike
riot civil commotion ....................................................... risk accident to driver conductor crew
passengers and others with some Insurance Office or offices of repute approved by the Bank
for its full value and shall also pay all premia renewal premia and all other moneys payable
to keep such policy or policies afoot and shall deliver to the Bank the original policy or policies
and all receipts for the premia paid immediately upon receipt thereof. In the event of the
352
CHAPTER-10
Borrower falling and neglecting to effect such insurance the Bank shall be at liberty to effect
such insurance at the costs of the Borrower and all expenses incurred and all premia paid
for such insurance shall be added to the principal money hereby secured and be paid with
interest thereon at the rate as aforesaid in such manner as the Bank shall direct.
15. All sums received under any such policy or policies as aforesaid shall be applied at
the discretion of the Bank either in or towards repayment of all moneys due hereunder
together with all interest thereon and all other moneys costs charges and expenses for repair
or replacement of the said vehicle or any component parts thereof or purchase of any spare
parts for the said vehicle. Upon application of the moneys received under any policy or policies
as aforesaid the Borrower shall be enetitled to the surplus thereof if any.
16. The Borrower doth hereby declare that the said vehicle is the sole and absolute property
of the Borrower at his sole disposal and free from all prior charges and encumbrances
whatsoever and that the Borrower has not done or knowingly suffered or been party or privy
to any act deed matter or things whatsoever hereby he is any way prevented from
hypothecating the said vehicle in the manner aforesaid and that the Borrower shall do and
execute at its own costs all such acts deeds matters and things for further and more
effectually assuring the said vehicle unto the Bank as shall or may be required by the Bank.
The Bank and all its directors, officers, employees representatives and agents from time to
time and all times during the continuance of this security shall be entitled without any prior
notice or intimation to enter into any garage or premises where the said vehicle amy for the
time being be and to view and inspect and examine the condition thereof, or to take
possession tehreof in the circumastances hereinbefore mentioned, and the Borrower hereby
undertakes to render all facilities and assistance as may be required for any of the purposes
aforesaid and shall also comply with any requisition of the Bank regarding repairs and
maintenance of the said vehicle within such time and in such manner as may be prescribed
by the Bank.
17. The Borrower shall not do make or commit or cause to be done made or committed
any damage or act of waste to the said vehicle and shall ply the said vehicle in skilful manner
during the continuance of this security.
18. In consideration of the Bank having at the request of the Guarantor agreed to lend
and advance to the Borrower the said sum of Rs. ................................. upon and subject to
the terms and condtions hereinbefore mentioned and on the security hereby created the
Guarantor doth hereby agree to guarantee due repayment of the sai d sum of
Rs. ................................. together with interest thereon at the rate aforesaid and all other
353
CHAPTER-10
moneys costs charges and expenses payable to the Bank under these presents or by
operation of law or otherwise by the Borrower and due performance and observance of other
terms convents and conditions herein contained and on the part of the Borrower to be
observed and performed and also all loss and damages that may be suffered by the bank
on account of the breach of the terms convenants and conditions by the Borrower PROVIDED
ALWAYS AND IT IS HEREBY EXPRESSLY AGREED AND DECLARED that any neglect or
for bearance of the BANK in endeavouring to obtain payment of the money, hereby secured
or any indulgence given by the Bank to the Borrower in the observance and preformance of
the terms convenants an conditions herein contained, and on the part of the Borrower to be
observed and performed or any time given by the Bank to the Borrower for payment of the
moneys hereby secured shall not in any way affect or prejudice the guarantee or the
containing liability of the Guarantor hereby created.
19. The liability of the Guarantor under these presents shall be Co-extensive with that of
the Borrower.
20. The Guarantor doth hereby agree to pay on demand all moneys which may become
payable under there presents from the Borrower and not paid by the Borrower.
21. It shall be lawful for the Bank to proceed against the Guarantor without first proceeding
against the Borrower and reserving the Banks right against the said security and the Borrower.
IN WITNESS WHEREOF the Parties hereto have hereundto act and subscribed their
respective bands and seals the day monthy and year first above written.
SIGNED SEALED AND DELIVERED
by the BORROWER at
(not to be attested)
SIGNED AND SEALED AND DELIVERED
by the GUARANTOR at
(not to be attested)
354
CHAPTER-10
A-38
Place ............................................
Date .............................................
The Manager,
UCO BANK
............................................ Bank
Dear Sir,
On the security of Fixed Deposit(s), amounting to Rs. ................................. made in your
Bank in my/our name at your ....................................................... Branch. I/we request you to
please allow me/us/Mr./Messrs. ........................................................................................ Demand
Loan or Cash Credit Limit of Rs. ............................................ Fixed Deposit Receipt(s), as
hereunder is/are enclosed duly discharged to be kept as security in your possession.
F.D.R. No. Amount
In case you receive instruction from me/us to renew the Fixed Deposit Receipt(s) I/we
agree to your Bank holding this renewed Deposit Receipt(s) with or without interest accrued
thereon as the case may be, as security in the same way as the original Deposit Receipt(s).
I/we further agree that on the renewal of the Promissory Note on the account my/our Fixed
Deposit Receipt(s), will remain as security for the renewed Promissory Note in the same
way as for the original Promissory Note.
I/we hereby undertake not to call back the Deposit(s) until the Loan or Cash Credit
with interest accrued thereon made by you to me/us/Mr./Messrs ..................................................
.................................................................. is fully adjusted. If at any time you wish to call back
the Loan or Cash Credi t you are at l i berty to do so, and i f I/we/Mr./
Messrs. ........................................................................................ fail to repay the Loan or Cash
Credit with interest accrued thereon or any portion thereof. I/we hereby authorise you to
355
CHAPTER-10
appropriate any amount that may be necessary to get the Loan or Cash Credit granted to
me/us/Mr./Messrs. ........................................................................................ adjusted from the
Fixed Deposit Receipt(s) handed to you as security.
Yours faithfully,
Notes : In the event of any controversy arising out of Hindi version of this Form, the original
356
CHAPTER-10
Y-38
:tl ................................................
r=l tk fU...............................................
ck"fU,
gqfUtucfU
.................................................... NtFt
rg bntu=g,
b/nb ytvmuyl whtu" fUh;t nq/fUh;un rfUytvfuUcfUfUe................................................ NtFt
bbuhe/nbthe .............................................. h. fUe mtJr" sbthtrN (sbthtrNgt) fUe r;Cqr; vh
hvgt bw Su /nb /e/bu mmo.........................................................................fUtu.........................................h.
fUe btkd-}UK gt l fU=e-}UK mebt fUe Jef]Ur; =e stY>Cwd;tl nu;wrJr"J;Tn;tGrh; mtJr" sbt
hme= (hme=) fUtul eaurtFuyl wmth ni/n, ytvfuUfUsubr;Cqr; fuUv bhFustl ufuUrtY
mktl ni/n>
mtJr" sbt hme= mkgt htrN
gr= ytv bwSu/nbmumtJr" sbt hme=/hme=tfuUl JefUhK fuUcthubyl w=uN tt fUh;un ;tu
b/nb fUhth fUh;t nq/fUh;un rfUytvfUtucfURml Jef]U; sbt hme= (hme=t) fUtu, Wmvh tu=TCq;
gts mrn; gt Atu\zfUh cime Ce r:r; ntu, yvl uvtmbqt sbt hme= (hme=t) fUe ;hn ne r;Cqr;
fuUv bhFl ufUt nfU=th ntudt>b/nb ytdufUhth fUh;t nq/fUh;un rfUFt;ubJal -vt fUt
l JefUhK rfY stl uvh buhe/nbthe mtJr" sbt hme= (hme=u) l Jef]U; cal -vt fuUrtY bqt Jal -vt
fUe ;hn ne r;Cqr; fuUv bcl e hnude/hnde>
b/nb RmfuU tht Jal c" fUh;t nq]/fUh;u n rfU sc ;fU ytvfuU tht bwSu/nb/e/
bummo......................................................................................... fUtur=gt dgt }UK gt l fU=e }UK
;gt Wmvh tu=TCq; gts vqhe ;hn mbtgturs; l ntustY ;c ;fUsbthtrN (sbthtrNgt) fUtuJtvm
tul ufUe btkd l n fUhkdt/fUhgr=rfUme mbg ytv }UK gt l fU=e }UK fUtuJtvmtul t atn;tuWmfuU
rtY ytv J;kt ntdu<ytih gr=b/nb/e/bummo..................................................................................
}UK gt l fU=e }UK ;:t Wmvh tu=TCq; gts gt WmfuUrfUme Ctd fUtuawfUtl ubymVUt hnt/hnu
;tub/nb RmfuUtht ytvfUturfUme Ce Yume hfUb fUturJrl gturs; fUhl ufuUrtY tr"f]U; fUh;t nq/fUh;u
357
CHAPTER-10
n stubwSu/nb/e/bummo........................................................................................ fUtubksqh rfY dY
}UK gt l fU=e }UK fUtur;Cqr; fuUv bytvfUtumtve dRomtJr" sbt hme=(hme=t) mumbtgturs;
fUhl ufuUrtY ytJgfUntu>
CJ=eg,
rxvKe &RmVUtbofuUrn=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
358
CHAPTER-10
A-38 (Revised)
Application-cum-Letter of lien prescribed for loans against Fixed Deposits including KY,
Lakhpati Deposit Scheme, Money Multiplier Scheme (UCD Double/Treble), Two-way
Deposit Scheme Friend-in-Need Scheme, Flexible Deposit Scheme and Deposit
Certificates.
Place ....................................
Date .....................................
The Manager,
UCO BANK,
.................................. Branch
Dear Sir,
On the security of Deposit(s) made in your Bank in my/our name, I/we request you to please
allow me/us/Mr/Messrs ................................................................... banking facility by way of
Amount
Cash Credit
Demand Loan
Term Loan
Bill Purchase
Letter of Credit
Deposit Receipt(s) as hereunder is/are enclosed duly discharged to be kept as security in
your possession.
Deposit Receipt No. Amount
359
CHAPTER-10
The Deposit/s which expression shall include any other sum or sums in addition to or by
way of renewal or replacement for any sums previously deposited or otherwise together with
all interest accuring from time to time in respect of it or them.
The Deposit/s shall be a continuing security for all money obligations and liabilities, present
or future, actual or contingent (including liabilities as surety or guarantor), of which I/we may
now or hereafter be liable to the Bank on any banking or other account or in any manner
whatsoever in whatever currency denominated and whether alone or jointly with any other
person and in whatever style name or form together with all interests, costs, commissions,
charges and expenses which the bank may in the course of its business as bankers charge
against me/us and all costs, charges and expenses (including all legal fees and expenses)
which the Bank may incur enforcing or obtaining payment from me/us.
I/we shall not be entitled to withdraw the whole or any part of the deposit untill the bank
facility/ies/Accounts mentioned hereinabove is/are fully adjusted by me/us to the satisfaction
of the Bank.
The bank is irrevocably authorised, without prior notice to me/us, at any time or times without
restriction to appropriate the whole or any part or parts of the Deposit in or towards payment
or discharge of any or all of the indebtedness, obligations or liabilities hereby secured whether
then due and payable or not and in such order as it may from time to time conclusively
determine (and to convert the whole or any part or parts of the Deposit into any currency
other than that in which the same is or are then held by the Bank at the then prevailing
spot rate of exchange of the Bank) notwithstanding that the Deposit or any part or parts of
it may have been made or deposited for a fixed period and that period may not have, or
may have expired and the Bank may renew at any time and from time to time all or any of
the deposits with or without any accured interest being capitalised and added thereto in such
manner and for such period or periods as the Bank may think fit and I/we shall execute all
such acts and instruments as may be required by the Bank to effect any such withdrawal or
renewal.
I/we hereby further declare that it shall not be incumbent on the Bank to take any step or
do anything in respect of the aforesaid deposits nor shall the Bank will be answerable for
any loss arising from its having neglected to take or do any such steps or things.
Yours faithfully,
360
CHAPTER-10
A-38A
UCO BANK
Head Office : ............................................ Branch
10, Brabourne Road, Dated ............................ 20 ............
Kolkata-700 001
Dear Sir,
With reference to your letter dated ................................. please note that as desired by
you, we have allowed to Mr./Messrs. ........................................................................................ a
Demand Loan/Credit Limit of Rs. ............................................ (Rupees .................................
.............................................................................) against the security of Fixed Deposit Receipt(s)
amounting to Rs. ............................................ standing in your name at the branch.
Please acknowledge receipt of this letter.
Yours faithfully,
.......................................................
Asst. Manager
(give here the date of Form A-38 signed by the depositor).
361
CHAPTER-10
Y-38Y
gqfUtucfU
"tl fUtgtotg& ............................................... NtFt
10, c{uctul ohtuz, r=l tkfU.............................. 20.........
fUtutfUt;t-700 001
rg bntu=g,
f]Uvgt ytv r=l tkfU.................................. fuUyvl uvt fuUmk=Cobgn l tux fUhrfUnbl u
ytvfUeRAtl wmth RmNtFt bytvfuUl tb fUeh................................ fUemtJr" sbt hme=(hme=t)
fUer;Cq r; vhe/bu mmo.................................................................................... fUtu...............................h.
(.........................................................................................................hvgu) fUtubtkd }UK/l fU=e}UK
mebt fUe Jef]Ur; =u=e ni>
f]Uvgt Rmvt fUe trt-mqal t =>
CJ=eg,
..............................................
mntgfUck"fU
(sbtfU;totht n;tGrh; VUtboY-38 b=e dRo;theF fUtugntrtF)
362
CHAPTER-10
A-39
Place ............................................
Date .............................................
The Manager,
UCO Bank
.......................................................
Dear Sir,
We enclose a letter signed by ........................................................................................
authorising us to take Loan/Cash Credit from you on the strength of the enclosed Deposit
Receipt(s) No.(s) ............................................ for (aggregating) Rs. ............................................
of your Bank in his/their favour duly discharged by him/them to be retained by you as security.
Please credit the amount of loan to our current account with you.
Yours faithfully,
To be deleted in case of Cash Credit Account.
363
CHAPTER-10
Y-39
:tl ............................................
;theF ...........................................
ck"fU,
gqfUtucfU
................................................
rg bntu=g,
nb............................................................................................................tht n;tGrh; YfU
vt mktl fUh;un rsmfuUtht Wml u/Wntl unbtr"f]U; rfUgt ni rfUWmfuU/Wl fuUvG bytvfuUcfU
fuU(fwUt)................................................h. fuUmktl sbt hme=mk..................................................
fuUyt"th vh, rsmu/rsnytvfuUtht r;Cqr; fuUv br;"trh; rfY stl ufuUrtY Wml u/Wntl u
rJr"J;Tn;tGrh; fUh r=gt ni, nb ytvmu}UK/l fU=e }UK tumfU>
f]Uvgt yvl uvtmfuUnbthuattqFt;ub}UK htrN fUtusbt fUh>
CJ=eg,
l fU=e }UK Ft;ufuUbtbtubRmufUtx r=gt stY>
364
CHAPTER-10
A-40
POWER OF ATTORNEY RELATIVE TO SUPPLY BILLS
THIS POWER OF ATTORNEY is made this .................................... day of ........................
20 ............ by me ........................................................................................................................ son
of ................................................................................................ carrying on business under the
name and style of M/s. ......................................................................................................................
at ............................................................................................................................................................
M/s. ............................................................................................................ (a partnership firms
regi stered under the Indi an Par tnershi p Act, 1932) and havi ng i ts offi ce
at ............................................ M/s. ........................................................................... (a Company
incorporated under The Companies Act, 1956) (an existing company within the meaning of
The Companies Act, 1956*) and having its registered office at ................................................
........................................................................ hereinafter called the Appointer in favour of UCO
BANK a Corporate Body constituted under the Banking Companies (Acquisition & Transfer
of undertakings) Act, 1970 and having its Head Office at 10 Brabourne Road, Kolkata-1 and
a Branch Office at ........................................................................ hereinafter called the Bank
WHEREAS I am/we are working as Contractor(s) to the Government of India or State
Government(s) in their various department(s) or autonomous bodies, Government Companies,
Corporations or Corporation Bodies, or any other authority formed constituted or established
by the Govvernment of India or State Goverments) (hereinafter referred to as the said
Authorities which expression shall wherever the context so permits mean and include all of
them or any one or more of them) and have entered into certain contracts and will in future
enter into other contracts. AND WHEREAS an arrangement has been made between me/us
and the Bank in pursuance of which the Bank has agreed to finance contracts and advance
me/us sums of money, against supply bills for payment to be received by me/us under the
contracts issued by the said Authorities on the condition inter alia that the Bank shall have
first charge over the cheques/moneys in payment of bills and shall also be entitled to realise
the amount of the bills direct from the said Authorities and the remittances of such bills will
be made direct by the said Authorities to and in the name of the Bank and the Bank shall
repay themselves from such receipts all moneys due from me/us and in consideration of
such advances by the Bank all moneys payable to me/us under the contracts and bills shall
be considered under the arrangement as assigned upto the Bank and I/we have undertaken
not to create any interest, charge, lien in favour of anyone else over any moneys payable or
that may become payable to me/us under the contracts or encumber or assing the same in
365
CHAPTER-10
any manner whatsoever, AND WHEREAS I/we, for the purposes of carrying out the terms
of the said arrangement more effectively and to secure the interest of the Bank, am/are
desirous of appointing the Bank as my/our lawful Attorney in all matters relating to the receipt
of all payments under the contracts made or to be made hereafter. NOW THESE PRESENTS
WITNESS that I/we do hereby appoint, constitute and nominate UCO BANK to be my/our
lawful Attorney on behalf of me/us and my/our name or names to do the following acts or
things or any of them namely :
1. To sign. present and submit supply bills regarding my/our contracts to the proper
Officer and/or Authority of the Central Government, State Government(s) or autonomous
bodies, Govt. Companies, Corporations or Corporate Bodies, or any other authority formed,
constituted or established by the Govt. of India or State Government(s); to obtain cheques
to sums payable to me/us under the contracts directly in their own name or in my/our name
in payment of such bills or other amounts and to cash the same and to receive the amount
thereof and appropriate such receipts towards and in repayment of the advances made or
to be made hereafter and all other moneys due from me/us to the Bank in any account
whatsoever. No other creditor or representative of mine/ours shall have any concern with such
amounts and the payments thereof by the Government(s) or autonomous bodies, Govt.
Companies, Corporations or Corporate Bodies, or any orther authority formed, constituted or
established by the Govt. of India or State Government(s), I/we having undertaken neither to
create any encumbrance interest chage or assignment over such amounts payable or that
may become payable under the contracts taken or to be taken hereafter nor to appoint or
authorise anyone else including myself or my partners to receive payments on my/our behalf.
2. To ask, demand, sue for, recover and receive, of and from all and every person
all sums of money, debts, dues, effects and things which shall or may become due or owing
or payable to or recoverable by me/us under or in connection with the said contracts and to
compound and settle all accounts relating thereto and to give effectual receipts, realises,
acquittances and discharges therefor.
3. To appoint any counsel, lawyer or solicitor or agent to conduct, prosecute or defend
in court or outside court or before any Government Authority or Officer any such claims and
actions by or against me/us and to remove tham as the Bank may consider fit or proper, to
compromise any such disputes, claims and actions or to refer them to arbitration and to take
proceedings for filing in court any such compromise or award or for execution and realising
sums and for the purposes aforesaid or any of them to sign on my/our behalf and in my/
our name any and all petitions, deeds or documents as may be necessary and also appoint
and remove at its pleasure any substitute for or agent under it in respect of all or any of
366
CHAPTER-10
the matters aforesaid upon such terms as the Bank shall think fit and generally to act in
relation to the above as fully and effectually in all respects as I myself/we ourselves could
do.
4. To execute and sign all such deeds and generally to do all lawful acts necessary
for the abovementioned purposes and matters.
5. For the better doing, performing and executing of the matters and things aforesaid
I/we hereby further grant unto the Bank full power and authority to substitute and appoint in
their place and stead on such terms as they shall think fit one or more Attorney or Attorneys
to exercise for me/us as my/our Attorneys any or all the powers and authorities hereby
conferred and to revoke any such appointment from time to time and to substitute or appoint
any other or others in the place of such Attorney or Attorneys as the Bank shall from time
to time think fit.
6. I/We the Appointor(s) hereby promise to allow, ratify and confirm all and
whatsoever the Bank shall lawfully do or cause to be done in the premises and I/we hereby
declare that these presents and all powers hereby granted are and shall be irrevocable as
long as any claims of the Bank against me/us whether for principle, interest, costs, charges
or otherwise remain outstanding and unpaid.
7. And I/we the Appointor(s) hereby declare and affirm that I/we have not heretofore
granted nor shall I/we in future grant any Power of Attorney in respect of the said contracts
in favour of any person or bank and that the moneys, bills and dues payable to me/us or
recoverable by me/us now or in future in resepct of the said contracts are free from any
prior charge, lien attachment or encumbrance of any kind and that I/we the said Appointor(s)
or any person, Bank or Attorney other than UCO BANK shall not have any right to receive,
recover and realise the moneys dues and bills in respect of the said contracts.
IN WITNESS WHEREOF I/we have set my/our hand(s) to this General Power of Attorney
this ................................................ day of ................................................ 20 ............
Signed and delivered by
in the presence of
(1)
(2)
*(a) Strike out whichever is not applicable,
(b) In case the power is to be given by a Partnership firm, the partners should execute
the document.
(c) In case of a limited Company, the Power of Attorney shall be executed under the its
common seal.
367
CHAPTER-10
A-43
UCO BANK
.................................... Branch
Agreement of Rescheduling loans/advances at the
time of natural calamities
ARTICLES OF AGREEMENT made this ........................................................ day of 20......
BETWEEN Mr./Mrs./Miss/M/s. ............................................................................................
................................................................................................................................................
(hereinafter referred to as the Borrower which expression shall unless excluded by or
repugnant to the context be deemed to include his/her heirs, executors, administrators,
representatives, successors and assigns) of the one Part and UCO BANK, a Body Corporate
constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970
having its Head Office at No. 10, B.T.M. Sarani, Kolkata and a branch office amongst other
places at ............................................. (hereinafter referred to as the Bank, which expression
shall unless excluded by or repugnant to the context be deemed to include its successors
and assigns) of the other Part.
WHEREAS at the request of the Borrower, a loan of Rs. ...................................... was
advanced by the Bank to the Borrower interalia on terms and conditions contained in a Loan
Agreement dated ................................................ entered into between the Borrower and the
Bank and the same was repayable in the manner and by instalments mentioned in the said
agreement and the Borrower had executed documents listed in the Schedule A hereto on
.................................... . The Borrower has not been able to repay the loan as per terms of
the said agreement dated ......................................... A sum of Rs. ................................................
is due and owing from the Borrower to the Bank in respect and on account of the said loan
as on ............................................. which the Borrower hereby admits and acknowledges. The
Borrower has requested the Bank to conver t the sai d bal ance outstandi ng
on .................................... inclusive of interest accrued thereon upto.................................... i.e.
a sum of Rs. .......................................... into a medium term loan and allow him to repay
the sai d l oan i n monthl y/hal f-yearl y/quar terl y i nstal ments commenci ng from
.......................................... and the Bank has agreed to the said request of the Borrower and
in consequence thereof the Borrower has executed fresh documents listed in the Schedule
B hereto which are hereinafter collectively referred to as the security documents.
Head Office :
10, B.T.M. Sarani
Kolkata-700 001
368
CHAPTER-10
NOW IT IS AGREED in consideration of the premises as follows :
1. The Bank shall on execution of this agreement open a medium term loan account in
its books in the name of the Borrower and the said sum of Rs. .......................................
being the amount due and owing from the Borrower as aforesaid shall be transferred to the
said medium term loan account.
2. The loan shall be repayable by the Borrower to the Bank on the dates and by
instalments mentioned hereunder :
Repayment Schedule
(To be set out)
3. The Borrower shall in the mean time pay interest at the rate of ....................... % over
the Reserve Bank rate subject to the minimum of ..............................% per annum or at such
other rates as may be notified to the Borrower by the Bank from time to time as on 30th
June and 31 st December.
4. In case there is any default in the payment of any of the instalments either of the
rate of ..............................% over the Reserve Bank rate subject to the minimum of
............................. % per annum or at such other rates as may be notified, to the Borrower
from time to time on the amount of such default from the date of default till payment or
realisation.
5. Notwithstanding anything herein or in the security documents contained the whole
advance shall become forthwith due and payable by the borrower to the Bank and the Bank
will be entitled at its option to enforce its security upon the happening of any of the following
events, namely :
(a) any instalment of the principal moneys being unpaid on the due date, for payment
thereof:
(b) any interest remaining unpaid and in arrears for a period of three months, after
the same shall have become due whether formally or legally demanded or not;
(c) to the Borrowers committing any breach or default in the performance or
observance of the terms and condition contained in these presents and/or the
Borrowers proposal and/or the security documents or any other terms or conditions
relating to the advance ;
(d) the Borrowers entering into any arrangement or composition with its creditors or
committing any act of insolvency;
369
CHAPTER-10
the borrowers property;
(f) a Receiver being appointed in respect of the whole or any part of the property
of the Borrower;
(g) the occurance of any circumstances which is prejudicial to or impairs or imperils
or depreciates the security given to the Bank;
(h) the Borrower ceasing, or threatening to cease, to carry on business;
(i) the occurance of any event or circumstances which would or is likely to
repay the loan.
6. The Borrower shall not, without the written consent of the Bank, create in any
manner any charge, lien or other encumbrances on the security given to the Bank in respect
of such advance or create any interest on such security in favour of any other party or person.
7. The Borrower shall, upon every request of the Bank, allow the Bank and its agent,
officer, employees, servants or nominees to inspect the Borrowers premises, godown, factory
and Borrowers books of account for ensuring that the Borrower has duly complied with the
terms of the advance.
8. The Borrower will furnish the Bank with all such information as the Bank may
require for the Banks satisfaction as to due compliance of the terms of the loan and all
such periodical reports and information at such times, in such forms and containing such
particulars as the Bank may call for, for the purpose of ascertaining the result of the utilisation
of the said loan.
SCHEDULE A
SCHEDULE B
(here give brief particulars of all security documents obtained by the Bank from the Borrowers)
IN WITNESS WHEREOF the Borrower has executed this Agreement the day, month and year
above written.
(Signature of the Borrowers)
370
CHAPTER-10
A-43A
Agreement with the guarantor(s) on rescheduling of
Plans/advances at the time of natural calamities
UCO Bank
................................................... Date ..................................
Dear Sirs,
WHEREAS at my/our request you had lent and advnaced a sum of Rs. ..................................
to .................................. of .................................. (hereinafter called the principal) on the terms
and conditions contained in the loan Agreement dated .................................. entered into by
the principal with you.
AND WHEREAS the principal has not been able to repay the said loan in terms of the said
Agreement dated .................................. and a sum of Rs. .................................. is due and
owing from the principal to you in respect and on account of the said loan as
on .................................. inclusive of interest.
AND WHEREAS at the request of the principal and also at my/our request you have agreed
to convert the said outstanding balance namely Rs. .................................. into a medium term
loan account in the name of the pricipal and allow him further time to repay the said sum
in such instalments as mentioned in another Agreement dated .................................. entered
into by the principal with you.
1. In consideration of your having at my/our request agreed to convert the said loan into
a Medium Term Loan and to grant time to the Principal as aforesaid, I/We hereby guarantee
the due repayment of the said sum of Rs. .................................. and every part thereof and
also the due payment of all interest accruing due thereon and all costs, charges and expenses
of and incidental to realisation and recovery of the dues and that accordingly, I/we jointly
and severally hereby agree and undertake to repay and pay (as the case may be) on demand
to you all such amounts whether for principal or for interest or for costs, charges, expenses
or for any other moneys aforesaid as also to pay all the costs, charges and expenses that
you may pay, incur or suffer or be put to in any manner whatsoever or in any ways concerning
the said loan and/or this guarantee and your rights hereunder and for protection, preservation,
371
CHAPTER-10
defence or enforcement of your rights and recovery of your dues either from the principal/s
or from me/us.
2. I/We agree that you shall have full discretionary powers without any further consent
from me/us and without in any way affecting my/our liability under the guarantee, to renew
the loan and to hold-over, renew or give up, in whole or in part any security or securities
received or to be received from the principal/s or any one or more of them either alone or
jointly with any other persons or person or from any other person or persons bearing the
name of the principal/s.
3. I/We also agree that you shall be at liberty without in any way affecting my/our liability
under this guarantee and I/We hereby give our consent to you to vary any terms of your
said loan to the principal/s or to release or discharge or to do any act or commission the
legal consequence of which is to discharge or enter into any composition or compound with
or promise to grant time or any other indulgence or not to use either the Principal/s or any
one or more of them or any persons or person liable on the said loan or any security or
securities or any person liable as security or collaterally liable for the Principal/s, or any other
person or persons.
4. I/We further agree that this guarantee shall be a continuing security to you and shall
remain in force and be operative until your dues of and incidental to and in respect of your
loan to the Principal/s either by way of Principal/s amount or interest or costs, charges and
expenses, and all and every part thereof and of any of them are paid and satisfied in full.
5. I/We further agree that copies of accounts maintained in you Books of Accounts in
respect of the said loan of Rs. .................................. to the Principal/s and signed by your
officers for the time being in charge of such accounts shall be conclusive evidence against
me/us as to the amounts for the time being due by the Principal/s to you in any action or
other Proceedings brought against me/us.
6. The demand in writing shall be deemed to have been given to me/us by sending the
same by post or by hand delivery addressed to me/us at the address ..................................
..................................................................................... and shall be effectual notwithstanding any
change of residence or office and notwithstanding notice thereof to you such demand shall
be deemed to be received by me/us as the case may be twenty-four hours after the posting
thereof and shall be sufficient if signed by any one of your officers and in proving such service
it shall be sufficient to prove that the letter containing the demand was properly addressed
and put in the post office.
7. This guarantee shall be additional to any other guarantee for the Principal/s or any
one or more of them signed by me/us or any of us that you may at any time hold.
372
CHAPTER-10
8. I/We respectively waive in your favour all or any of our rights against you or the
Principal/s so far as may be necessary to give effect to any of the provisions of this
guarantee. AND I/We agree that I/we shall not be entitled to claim benefit of any legal
consequences of any variation of any contract entered into by the Principal/s or any one or
more of them with you for and in respect of the loan the liability in respect of which is
guaranteed by me/us as aforesaid.
9. If I/we now or shall hereinafter take any security from the Principal/s or any one or
more of them in respect of my/our liability under this guarantee, I/we will not prove in the
bankruptcy or insolvency of the Principal/s or any one or more of them in resepct thereof to
your prejudice and such security shall stand as security for you and shall forthwith be
deposited with you.
10. I/We agree and declare that you will not be bound or compelled to take any proceedings
whatsoever against the Principal/s for recovery, enforcement or realisation of any of your dues
from or against the Principal/s under or in pursuance of and in respect of and incidental to
your said loan to the Principal/s before calling upon me/us to pay such dues to you under
and in pursuance of the guarantee herein given so that I/we shall be liable and bound to
pay any such dues to you, notwithstanding that no proceedings whatsoever shall have been
taken by you against the Principal/s for recovery, enforcement or realisation of any such dues.
11. I/We further agree and confirm that to give effect to the guarantee, you may act as
though I/we am/are your Principal debtor/s.
12. This guarantee shall ensure for the benefit of your successors and assigns.
13. All moneys whatsoever due and payable by me/us to you under and in pursuance of
thi s guarantee shal l be payabl e by me/us at your Branch Offi ce si tuated
at ....................................................................
Yours faithfully,
Signature ...................................................
(Full name in block letters)
Place Date ..................................
Signature ...................................................
Place Date ..................................
373
CHAPTER-10
Y/A-47
ck"fUThe Manager,
gq fUtucf UCO BANK
.............................................. NtFt/ Branch
rg bntu=gDear Sir,
b/nb RmfuUtht r=l tkfU.......................................fuU..........................................h. fuUbtkd
Jal vt fuU;w;efUhK fUe Aqx =u;t nq/=u;un ytih W; Jal vt fUtubuhu/nbthuvtmCqd;tl fuU
rtY ;w; rfY rcl t Wmvh =ug hfUb fUtuy=t fUhl ufUt cal =u;t nq/=u;un>
Wi th reference to the demand promi ssory note for Rs. .............................
dated .................... I/We hereby waive presentment thereof and undertake to pay the amount
due on the said promissory note without the same being presented to me/us for payment.
CJ=eg,
Yours faithfully,
;theF Date ................................ 200 .
374
CHAPTER-10
A-49 (Revised)
NOT TO BE ATTESTED
Stamp
UCO BANK
AGREEMENT FOR EDUCATION LOAN
This agreement made this ................................................. day of ....................................
20 ............. between .....................................................................................................................
son of ...............................................................................................................................................
residing at ...........................................................................................................................................
hereinafter called The Borrower (which expression shall unless excluded by or repugnant to
the context be deemed to include his heirs, executors, administrators and representatives) of
the FIRST PART AND.....................................................................................................................
son of ..................................................................................................................... residing
at ............................................................................................................................................... and
...............................................................................................................................................son
of ........................................................................................................................................ residing
at ...............................................................................................................................................
hereinafter called the Guarantors (which expression shall unless excluded by or repugnant
to the context be deemed to include their respective heirs, executors, administrators and
representative) of the SECOND PART AND UNITED COMMERCIAL BANK having its Head
Office at No. 10, B. T. M. Sarani, Kolkata and abranch office at ....................................................
................................................................. hereinafter called the Bank (which expression shall
unless excluded by or repugnant to the context be deemed to include its successors and
assigns) of the THIRD PART :
WHEREAS
1. The Borrower is desirous of continuing his studies at ..............................................
................................................................. for a period of .................................................................
but is unable to do so for paucity of funds.
375
CHAPTER-10
2. Being in need of financial assistance for his studies the Borrower and the
Guarantors have approached the Bank to lend and advance to the Borrower a sum of
Rs. ....................................... (Rupees ...........................................................................................)
which the Bank has agreed to do on the basis of and for the purposes set forth in the
Borrowers application dated ....................................... a copy whereof is annexed hereto
(hereinafter called the Borrowers application) and upon the terms and conditions hereinafter
mentioned.
NOW THIS AGREEMENT WITNESSETH as follows :
1. The Borrowers application shall be deemed to constitute the basis of this
Agreement and the loan to be advanced by the Bank hereunder and the Borrower hereby
warrants the correctness of each and every one of the statements and particulars therein
contained.
2. The Bank shall advance the said sum of Rs. ....................................... to the
Borrower in such instalments and at such times as the Bank may from time to time determine
and the amounts shall be paid to the Borrower whose receipt will serve as sufficient proof
of the payment of the amount by the Bank and shall be binding on the Guarantors.
3. The Bank may decline to advance the amount or discontinue further advances at
any time at its absolute discretion on the ground that the Borrower has found other means
of assistance or that the Borrower had discontinued his/her studies or has failed in any
examinations or has failed to produce satisfactory report of his/her studies and progress or
for any other reason which the Bank at its absolute discretion may consider good and
sufficient. In the event of such discontinuance the payments already made shall be deemed
to be a completed loan under this Agreement and shall be repayable accordingly.
4. The amount of the loan will be utilised by the Borrower only for the purposes of
prosecuting his/her studies, such as payrnent of admission fee, expenses on books, stationery
and instruments required for the course taken, monthly college/University fees, examination
fees and hostel expenses for boarding and lodging.
5. At the end of each academic year the Borrower will produce a certificate from
the Head of the Institution at which he/she is studying, testifying the results achieved by
him/her during and at the end of the year as well as about his/her conduct. If the said
certificate is not produced or the certificate furnished for any year is not considered
satisfactory the Bank will (in its absolute discretion) have right to stop giving any further
financial assistance, to the Borrower in terms of this Agreement not withstanding the fact
376
CHAPTER-10
that the total amount of the loan as agreed to in Paragraph 2 above has not been disbursed
to him/her. The Bank will be entitled at its option to recall the loan already given together
with the interest accrued thereon by a demand in writing.
*6. The Borrower will take out a life insurance policy in his/her name for amount to
feast equal to the total amount of the loan granted or agreed to be granted to him/her and
will keep the said the said policy alive at all times during his/her indebtedness to the Bank,
by regular paymant of premia thereon, He/she will assign the said policy in favour of the
Bank. In case the Borrower commits default in payment of any premium due on his/her said
life policy, the Bank shall be at liberty to (but not bound to do so) pay the same and debit
the amount so paid to his/her loan account. The amount so, debited will form part of and
will carry interest at the rate payable in respect of the loan as specified in para 7 below.
* This clause will not be applicable if the student belongs to SC/ST categories.
7. The Borrower undertakes to pay interest on the loan at the rate of ...................... per
cent per annum over Reserve Bank rate subject to a minimum of ..................... per cent per
annum or at such other rates as may be notified to the Borrower by the Bank from time to
time. Such interest shall be calculated and debited to the loan account of the Borrower at
the end of every year.
8. Subject to what is provided in para 5 Supra the Borrower will repay the loan
together with interest accrued thereon in 60 monthly instalments, starting from the expiry of
one year from the date he/she completes the course of studies for which, the loan was
granted or one month from the date he/she gets employment whichever is earlier.
Provided that the entire loan shall become forthwith due and payable by the
Borrower to the Bank upon the happening of any of the following events.
a) any two instalments of the principal monies inclusive of interest remaining unpaid
on the due date for payment thereof ;
b) the Borrowers committing any breach or default, in the performance or observance
of any of the terms and conditions contained in these presents or any other terms
or conditions relating to the advance. On the question whether any of the above
events has happened, the decision of the Bank shall be conclusive and binding
on the Borrower.
9. The Borrower will, during the period of his/her indebtedness to the Bank, keep
the Bank informed of the change in his/her address, vocation and income from time to time.
377
CHAPTER-10
10. The Borrower has informed the Bank that he/she is unmarried. If, during the period
of the course of studies undertaken by him/her, he/she gets married, the Bank will have the
discretion to immediately call back the loan and interest and/or to stop allowing further loan,
under this agreement and recover the loan and interest accrued thereon on demand in writing.
11. In consideration of the Bank having at the request of the Guarantors agreed to
lend and advance to the Borrower the said sum of Rs. .......................... upon and subject to
the terms and conditions hereinbefore mentioned the Guarantors do hereby jointly and
severally guarantee the due repayment of the said sum of Rs. .......................... together with
interest thereon at the rate and in the manner aforesaid and all other monies, costs, charges
and expenses which may at any time be due and payable to the Bank from the Borrower
under this Agreement or by operation of law or otherwise by the Borrower and due
performance and observace of other terms and conditions herein contained and on the part
of the Borrower to be observed and performed and also all loss and damage that may be
suffered by the Bank on account of the breach of terms and conditions by the Borrower
Provided Always AND IT IS HEREBY EXPRESSLY AGREED AND DECLARED THAT any
neglect or forbearance of the Bank in endeavouring to obtain payment of the said loan or
interest or any indulgence given by the Borrower in the observance and performance of the
terms, covenants and condition herein contained and on the part of the Borrower to be
observed and performed or any time being given by the Bank to the Borrower for the payment
of the said loan shall not in any way affect or prejudice the guarantee or the continuing
liability of the Guarantors hereby guaranted.
12. The liability of the Guarantors under this Agreement shall be co-extensive with
that of the Borrower and it shall continue to be in force and will remain operative and in full
effect till all the dues of the Bank from the Borrower under these presents are fully paid
and satisfied.
13. The Bank shall be at liberty to accept any security from the Borrower or part
with the same without to the Guarantors. The liability of the Guarantors shall remain unaffected
in any such event.
14. Any account settled by and between the Bank and the Borrower or admitted by
the Borrower will be conclusive evidence of the amount due from the Guarantors also. Any
admission or acknowledgement in writing by the Borrower or by any person authorised by
the Borrower of the amount of indebtedness of the Borrower to the Bank shall be binding
and conclusive on and against the Guarantors and the Borrower shall be the agent of the
Guarantors for giving such acknowledgements from time to time on behalf of the Guarantors.
378
CHAPTER-10
15. The Bank shall be entitled to proceed against the Guarantors for the recovery of
its dues outstanding against the Borrower without proceeding against the Borrower or
exhausting any of the securities that may at any time be held by the Bank in the account.
IN WITNESS WHEREON THE BORROWER and the GUARANTORS have hereunder set their
respective hands on the date and year first mentioned above.
................................................................
(Borrower)
1. ...........................................................
(Guarantor)
2. ...........................................................
(Guarantor)
379
CHAPTER-10
Y/ A-49ce/B
gq fUtucf UCO BANK
rNGt }UK nu;wfUhth
AGREEMENT FOR EDUCATION LOAN
yts r=l tkfU................................... 20 ............... fUtu:b;&e/ fwU. ..................................
............................................ vwt/vwte.............................................................................................
rl Jtme.............................................................................................................................................
rsnRmfuUvat;TIW"thfU;toOfUnt dgt ni (ytih sc ;fURmyrCgr; fUtunxtgt l stY gt fUtuRo
ct; mk=CofuUrJh l ntu;c ;fUWmfuU/WmfUtuJtrhm, rl vt=fU, NtmfUytih YJkr;rl r" Ntrbt
mbSustYkdu) YJkr;eg;&................................................................................................................
vw t/vw te................................................................................................................................................
rl Jtme................................................................................................................................................
;:t................................................................................................................................................ vw t/
vwte................................................................................................................................................
rl Jtme................................................................................................................................................
rsnIdthkxefU;toOfUnt dgt ni (ytih sc ;fURmyrCgr; fUtunxtgt l stY gt fUtuRoct; mk=Co
fuUrJh l ntu;c ;fUWmfuU/WmfUe Jtrhm, rl vt=fU, NtmfUYJkr;rl r" Ntrbt mbSustYkdu)
;:t ;];eg;&gqfUtucfU, rsmfUt "tl fUtgtotg, 10, ce. xe. Yb. mhKe (c{uctul ohtuz) fUtutfUt;t-700
001 bni ytih rsmfUtuYfUNtFt........................................................................ bni, rsmuRmfuU
vat;TIcfUOfUnt dgt ni (ytih sc ;fURmyrCJgr; fUtunxtgt l stY gt fUtuRoct; mk=CofuU
rJh l ntu;c ;fURmfuUyk;do; WmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt mbSustYkdu) fuUcea
gn fUhth ntu;t ni&
This agreement made this .................................... day of ........................... 20 ............
between ................................................................. son/daughter of ..................................................
.......................................... residing at .......................................................................................
hereinafter called the Borrower (which expression shall unless excluded by or repugnant to
the context be deemed to include his heirs, executors, administrators and representatives) of
the FIRST PART AND............................................................................................... son/daughter
of ...................................................................................... residing at ..........................................
.................................................................................... and .................................................................
380
CHAPTER-10
son/daughter of ...................................................................................................................... residing
at ........................................................................................................... hereinafter called the
Guarantors (which expression shall unless excluded by or repugnant to the context be
deemed to include their respective heirs, executors, administrators and representatives) of
the SECOND PART AND UCO BANK having its Head Office at No. 10, B. T. M. Sarani
(Brabourne Road), Kolkata - 700001 and a branch office at .........................................................
............................................................hereinafter called The Bank (which expression shall unless
excluded by or repugnant to the context be deemed to include its successors and assigns)
of the THIRD PART :
aqkrfU/ WHEREAS :
1. W"thfU;toyvl e v\ZtRo................................................................................................ mk:tl /
fUtptus b........................................ yJr" fuUrtY sthe hFl t atn;u/ an;e n rfkU;wrl r" fUe
fUbe fuUfUthK vqhe fUhl ubymb:on>
The Borrower is desirous of continuing his/her studies at ....................................... for a
period of ........................... but is unable to do so for paucity of fund.
2. yvl e v\ZtRovqhe fUhl ufuUrtY rJteg mntg;t fUe ytJgfU;t fuUfUthK W"thfU;to;:t dthkxefU;to
l ucfUfUtuW"thfU;tofUtuh. ........................................ (hvgt........................................
........................................................................) fUehtrN fUt }UK =tl fUhl ufuUrtY ytJu=l
rfUgt ni rsmfuUrtY cfUl uW"thfU;tofuUytJu=l r=l tkfU........................................ rsmfUe
r; mktl ni (rsmuRmfuUvat;TW"thfU;tofUt ytJu=l fUnt stYdt), br=Y dY gtusl nu;w
;:t gntkWrrF; N;tuYJkrl ck"l tfuUy"el mnbr; =e ni<
Being in need of financial assistance for his studies the Borrower and the Guarantors
have approached the Bank to lend and advance to the Borrower a sum of
Rs. ............................................... (Rupees .....................................................................................)
which the Bank has agreed to do upon the basis of and for the purposes set forth in
the Borrowers application dated ............................................. , a copy whereof is annexed
hereto (hereinafter called the Borrowers application) and upon the terms and conditions
hereinafter mentioned ;
yc gn fUhth rl l rtrF; fUt mtg ni/ NOW THIS AGREEMENT WITNESSETH as follows :
1. W"thfU;tofUt ytJu=l RmfUhth fUt ytih RmfuUy"el cfUtht r=Y stl uJttu}UK fUt yt"th
btl t stYdt ytih }UKfU;toWmby;rJo gufUrJJhK ytih rJrN;t fUe mtg;t fUt RmfuU
tht mb:ol fUh;t ni>
The Borrowers application shall be deemed to constitute the basis of this Agreement
and of the loan to be advanced by the Bank hereunder and the Borrower hereby
381
CHAPTER-10
warrants of correctness of each and every one of the statements and particulars therein
contained.
2. cfUW"thfU;tofUtu................................................h. fUe htrN fUt yrd{b mbg-mbg vh cfU
tht rl ra; rf Y dY rfU;tb=tl fUhudt ;:t W"thfU;tofUtu=tl fUe dRohtrN fUe hme=
cfUtht Cwd;tl fUe dRohtrN fUt btKvt ntude ;:t gn dthkxefU;tovh btg ntude>
The Bank shall advance the said sum of Rs. .................................... to the Borrower in
such instalments and at such times as the Bank may from time to time determine and
the amounts shall be paid to the Borrower whose receipt will serve as sufficient proof
of the payment of the amount by the Bank and shall be binding on the Guarantors.
3. gr= W"thfU;tofUtumntg;t fuUyg ttu; tt ntust;un gt W"thfU;tol uyvl e v\ZtRoAtu\z
=e ni y:Jt Jn rfUme vheGt byl wteKontudgt ni y:Jt Jn yvl e v\ZtRofUe dr; fuU
mkck" bmk;tuMsl fUrhvtuxol n ;w; fUh vt;t/vt;e ni y:Jt rfUme yg fUthK muCe, rsmu
cfUyvl ub= mumne YJkWra; vt;t ntu, fUe r:r; bcfUyrd{b fUe htrN fUe bl tne fUh
mfU;t ni y:Jt CrJg bytih yr"fUyrd{b =tl l n fUh mfU;t ni>RmfUth yrd{b htufU
r=Y stl ufUe r:r; bCwd;tl fUh =e dRohtrN fUtuRmfUhth fuUy"el vqKo}UK btl t stYdt
;:t ;=l wmth Jn y=tgde fuUy"el ntude>
The Bank may decline to advance the amount or discontinue further advances at any
time at its absolute discretion on the ground that the Borrower has found other means
of assistance or that the Borrower had discontinued his/her studies or has failed in
any examinations or has failed to produce satisfactory report of his/her studies and
progress or for any other reason which the Bank at its absolute discretion may consider
good and sufficient. In the event of such discontinuance the payments already made
shall be deemed to be a completed loan under this Agreement and shall be repayable
accordingly.
4. W"thfU;totht }UK fUe htrN fUt gtud fuUJt yvl e v\ZtRofUhl usimuJuN NwfUfuUCwd;tl ,
rJMg mumkckr"; vw;fU, tuFl mtbd{e YJk gkt fUtuFhe=, fUtptus/rJJrJ ttg fUt btrmfU
NwfU, vheGt NwfU;:t Xnhl uYJkFtl uvel umumkckr"; ntuxt Faoytr=mumkckr"; gtusl
nu;wrfUgt stYdt>
The amount of the loan will be utilised by the Borrower only for the purposes of
prosecuting his/her studies, such as payment of admission fee, expenses on books,
stationery and instruments required for the course taken, monthly College/University fees,
examination fees and hostel expenses fpr boarding and lodging.
5. gufUNiGrKfUJMofUe mbtrt fuUvat;TW"thfU;toyvl umk:tl fuU"tl , sntkJn yggl
fUh hnt/hne ni, muJMofuU=tihtl ;:t JMto; btt rf Y dY VUt fuUmt:-mt: WmfuUytahK
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fuUmkck" bYfUbtKvt ;w; fUhudt/fUhude>gr=RmfUth fUt btKvt ;w; l n rfUgt dgt
y:Jt JMofuUrtY ;w; rfUgt dgt btKvt cfUtht mk;tuMsl fUl n vtgt dgt ;tuRmfUhth
fUe N;tufuUy"el cfUfUtugn yr"fUth ntudt rfUJn (yvl urJJufUtl wmth) Rmbyg rfUme
Jt;rJfU;t fuUntu;unwY CeWvgwo; viht 2 b}UK fUe htrN fuUmkck" bnwY fUhth fuUyl wmth
fwUt htrN fUt Cwd;tl l n ntul fuUctJsq= ytih yr"fUrJteg mntg;t =tl fUhl t ck= fUh
mfU;t ni>yvl uRmrJfUv fuUmt: cfUfUtugn yr"fUth ntudt rfUrtrF; btkd fuUtht =t
}UK fUtuWmvh tdugts fuUmt: JtvmfUhl ufUe ct; fUnu>
At the end of each academic year the Borrower will produce a certificate from the Head
of the Institution at which he/she is studying, testifying the results achieved by him/her
during and at the end of the year as well as about his/her conduct. If the said certificate
is not produced or the certificate furnished for any year is not considered satisfactory
the Bank will (in its absolute discretion) have the right to stop giving any further financial
assistance to the borrower in terms of this Agreement notwithstanding the fact that the
total amount of the loan as agreed to in Paragraph 2 above has not been disbursed
to him/her. The Bank will be entitled at its option to recall the loan already given together
with title interest accrued thereon, by a demand in writing.
6. W"thfU;toyvl ul tb bYfUseJl cebt vtprtme tudt/tude>gn vtprtme =t }UK fUe htrN fuU
chtch y:Jt =e stl uJtte htrN fuUchtch fUe ntude ;:t W; vtrtme fUt rl grb; v mu
erbgb y=t fUhfuUWmunbuNt attqyJ:t bhFudt/hFude>Jn W; vtprtme fUtucfUfuUvtm
mbl w=rN; hFudt/hFude>gr= W"thfU;toyvl e seJl cebt vtprtme vh =ug rfUme erbgb fuU
Cwd;tl baqfUfUh;t ni ;tucfUfUtugn Aqx ntude (rfkU;wJn RmfuUrtY ctg l n ntudt) rfU
Jn Wmerbgb fUt Cwd;tl fUh =uYJkCwd;tl fUe dRohtrN fUtuW"thfU;tofuU}UK Ft;ub
l tbuztt =u>l tbuztte dRohtrN }UK fuUYfUCtd fuUv bbtl t stYdt ;:t Wmvh Ce
l eauviht-7 brl "torh; fUe dRogts =h fuUyl wmth gts tdtgt stYdt>
The Borrower will take out a life insurance policy in his/her name for an amount at
least equal to the total amount of the loan granted or agreed to be granted to him/
her and will keep the said policy alive at all times during his/her indebtedness to the
Bank, by regular payment of premia thereon. He/she will assign the said policy in favour
of the Bank. In case the Borrower commits default in payment of any premium due on
his/her said life policy, the Bank shall be at liberty to (but not bound to do so) pay the
same and debit the amount so paid to his/her loan account. The amount so debited
will form part of the loan and will carry interest at the rate payable in respect of the
loan as specified in para 7 below.
7. W"thfU;to}UK vh Cth;eg rhsJocfUhux muQvh........................% r; JMofUe =h mu
gql ;b ........................ % r; JMoy:Jt gql ;b ........................% fUe =h muy:Jt
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CHAPTER-10
mbg-mbg vh cfUtht W"thfU;tofUtu=e dRomqal t fuUyl wmth rl "torh; =h mugts y=t
fUhudt>gufUJMofuUyk; bcfUgts fUe dKl t fUhfuUWmhtrN fUtuW"thfU;tofuU}UK Ft;u
bl tbuztt =udt>
The Borrower undertakes to pay interest on the loan at the rate of ................... per
cent per annum over Reserve Bank rate subject to a minimum of .................. per cent
per annum or at such other rates as may be notified to the Borrower by the Bank
from time to time. Such interest shall be calculated and debited to the loan account of
the Borrower at the end of every year.
8. WvgwoUviht 5 br=Y dY tJ"tl tfuUy"el W"thfU;toyvl e v\ZtRo, rsmfuUrtY }UK =tl
rfUgt dgt :t, vqhe fUhl ufuUYfUJMofuUct= muy:Jt Wmul tifUhe rbtl ufuUYfUbnel t fuU
ct= mu, stuCe vntuntu, gts fuUmt: }UK fUtu60 btrmfUrfU;tbawfUt =udt>
rl l rtrF; bmurfUme Ce Dxl t Dxl ufUe r:r; bW"thfU;totht mkvqKo}UK ;fUtt cfUfUtu
=ug ntustYdt&
fU) gts mrn; bqt "l fUe =turfU; rl g; ;theF fUtuCwd;tl l n rf Y stl uvh
F) yrd{b mumkckr"; yg rl ck"l tYJkN;tuy:Jt Rmbrl rn; rfUme Ce N;tuYJkrl ck"l t
fuUfUtgo-rl vt=l y:Jt vttl bW"thfU;totht rfUme Ce fUth fuUWkDl gt aqfUfUhl u
fUe r:r; bgt Wvgwo; bmurfUme Ce Dxl t fuUDrx; ntul ufUe r:r; vh cfUfUt
rl Kog W"thfU;tovh ykr;b YJkctgfUthe ntudt>
Subject to what is provided in para 5 Supra the Borrower will repay the loan together
with interest accrued thereon in 60 monthly instalments, starting from the expiry of one
year from the date he/she completes the course of studies for which the loan was
granted or one month from the date he/she gets employment whichever is earlier.
Provided that the entire loan shall become forthwith due and payable by the Borrower
to the Bank upon the happening of any of the following events;
a) any two instalments of the principal monies inclusive of interest remaining unpaid
on the due date for payment thereon.
b) The Borrowers committing any breach or default in the performance or observance
of any of the terms and conditions contained in these presents or any other terms
or conditions relating to the advance. On the question whether any of the above
events has happened, the decision of the Bank shall be conclusive and binding
on the Borrower.
9. W"thfU;tocfU}UK fUe y=tgde fuU=tihtl mbg-mbg vh cfUfUtuyvl uv;u, vuNt ;:t ytg
fuUcthubstl fUthe =u;t hnudt/ =u;e hnude
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CHAPTER-10
The Borrower will, during the period of his/her indebtedness to the Bank, keep the
Bank informed of the change in his/her address, vocation and income from time to
time.
10. W"thfU;tol ucfUfUtugn mqra; fUh r=gt ni rfUJn yrJJtrn; ni>gr= v\ZtRofUe yJr"
fuU=tihtl WmfUt rJJtn ntust;t ni ;tucfUfUtugn rJJufUtr"fUth ntudt rfUJn gts mrn;
}UK fUe ;whk; btkd fUhuYJk/ y:Jt RmfUhth fuUyk;do; ytih ytdu}UK =ul t ck= fUh =u
;:t }UK fUe gts mrn; rtrF; v bbtkd fUhu>
The Borrower has informed the Bank that he/she is unmarried. If during the period
of the course of studies undertaken by him/her, he/she gets married, the Bank will
have the discretion to immediately call back the loan and interest and/or to stop
allowing further loan under this Agreement and recover the loan and interest accrued
thereon on demand in writing.
10.(fU) sc ;fUcfUfUtumCe htrNgtfUt, atnuJn rvAte ntu, J;obtl fUe ntugt CrJg fUe ntu,
Jt;rJfUntugt ytl wMkrdfUntustuW"thfU;totht =ug ntuy:Jt rsmfuUrtY W"thfU;toawfUtl u
fUt =tge ntuy:Jt cl stY y:Jt atnuJn bqt fuUv bntuy:Jt r;Cqr; fuUv b
W"thfU;tomnb; ntu;t ni rfUcfUfuUvtmhFe mCe r;Cqr;gtvh YJk/y:Jt cfUfuUvtm
hFe htrN y:Jt W"thfU;tofuUrtY rfUme Ce Ft;ubhFe sbt, atnuJn rfUme Ce fUtgonu;w
ntuy:Jt simt Ce ntu, Wmvh cfUfUt d{nKtr"fUth YJk/ y:Jt Gr;vqKofUt d{nKtr"fUth
hnudt>cfUfUtugn Aqx ntude rfUW"thfU;tofUtu=ug;t YJk=trgJ fUtuvqht fUhl ufuUrtY
Wvgwo; r;Cqr;gtfUturzatsofUh mfuU;:t begt=e sbt fuUbtbtub, atnuJn Cwd;tl nu;w
vrhvJ ntudgt ni y:Jt l n ;:t cfUrsmv batnu;:t W"thfU;tofUturcl t mqal t
r=Y (YJkJt= =tgh fUhl uy:Jt rJr"fUfUthoJtRoNw fUhl ufuUvqJogt ct= b) mbtgturs;
y:Jt Jmqt fUh mfU;t ni>cfUyvl utht ytfUrt; rfUme htrN fUe Wm=trgJ fUe htrN
fuUv bm=TCtJl t fuUmt: mux-ytpVUfUh =udt>
(a) Until payment is made to the Bank of all the amounts, whether past present or future,
actual or contingent, which may be payable by the borrower or for which the borrower
may be or become liable hereunder or otherwise and whether as principal or surety,
the Borrower agrees that the Bank shall have a lien and/or right of set off on all
securities and/or monies whatsoever held at any time by the Bank on account of or
to the credit of the Borrower in or for any account or manner or purpose howsoever.
The Bank shall be at liberty to discharge the said obligations or liabilities of the
borrower out of the said securities and/or monies, and in case of term deposits,
whether the same have matured for payment or not, and may appropriate or realise
them in the manner thought fit by it and without notice to the Borrower (and whether
before or after filing suit or taking any legal proceedings). The Bank may set off an
amount estimated by it in good faith to be the amount of that obligation.
385
CHAPTER-10
10(F) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih-rl r" yt"trh; }UK mwrJ"tytfuUrtY YfUvqJo
N;ofuUv bcfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"thfU;totht tt fUe dRo/ tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih ytkfU\zu<
W"thfU;totht "trh;/"trh; fUe stl uJtte ;mck"e =ug;tytytih WmfuUvttl bW"thfU;totht
fUe dRoaqfU(gr= fUtuRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l w mth W"thfU;toY;=T tht Jef] Ur; ytih mnbr; =u ;t ni rfUcfUgr=Wra; ytih ytJgfU
mbSu;tu}UK mqal t gqhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfUtht tr"f]Ur;
ytkfU\zu, ytih
d) Wl =trgJtfuUvttl fUW"thfU;totht fUe stl uJtte aqfU, gr= fUtuRontu>
(iii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUtu=e dRomqal t ytih ytkfU\zumg
ytih mne ni>
(iv) W"thfU;togn Jal =u;t ni rf U&
(b) As a pre-condition, relating to grant of the loans/advances/other non-fund based credit
bank of information and data relating to the credit facility availed of/to be availed, by
borrower, obligations assumed/to be assumed by borrower, in relation thereto and
a) information and data relating to borrower,
by borrower, and
c) default, if any committed by borrower in discharge of borrower such
386
CHAPTER-10
authorised may use, process the said information and data disclosed by the
Bank; and
behalf.
11. cfUdthkxefU;toytfuUyl whtu" vh rJath fUhl ufuUvat;TW"thfU;tofUtu...........................
............................................. h. fUe htrN gntWrrF; N;tuYJkrl ck"l tvh yrd{b fuU
v b=tl fUhl uvh mnb; ni ;:t dthkxefU;toytd-ytd YJkmkgw; v murl "torh; gts
=h vh ;:t gts mrn; ....................................h. fUe htrN fuUCwd;tl fUe dthkxe =tl
fUh;un ;:t yg mCe "l , ttd;, Cth ;:t gg fUtu, stuRmfUhth fuUy"el y:Jt
rl r" fuUtht gt yg ;hefuUmuW"thfU;tomucfUfUturfUme Ce mbg =ug YJkCwd;tl gtug
ni ;:t gntrl rn; yg N;tuYJkrl ck"l tfUt vttl YJkfUtgorl vt=l ;:t W"thfU;tofuUrtY
Ce WmfUt vttl YJkW"thfU;totht Rl N;tuYJkrl ck"l tfuUvttl bWkDl fUhl ufUe =Nt
bcfUtht WXtRodRomCe ntrl YJkGr; fUtucN;uogntRmct; fUt v fUhth YJkDtuMKt
fUe st;e ni rfUcfUtht W"thfU;tofUtuW; }UK y:Jt gts fuUCwd;tl fUtutt fUhl u
brfUme fUth fUe WvuGt gt :dl =tl fUhl uvh y:Jt W"thfU;tofUtugntkrl rn; N;tuYJk
rl ck"l tfuUvttl YJkrl vt=l bAqx =tl fUhl uYJkW"thfU;totht vttl YJkrl vt=l rf Y
stl uy:Jt W; }UK fuUCwd;tl bcfUtht W"thfU;tofUturfUme fUth fUt mbg r=Y stl u
fUe yJ:t bgn dthkxefU;totht =tl fUe dRodthkxe YJksthe =trgJ fUturfUme Ce fUth
muCtrJ; gt r;fqUt l n cl tYdt>
In consideration of the Bank having at the request of the Guarantors agreed to lend
and advance to the Borrower the said sum of Rs. .................................... upon and
subject to the terms and conditions hereinbefore mentioned the Guarantors do hereby
j oi ntl y and several l y guarantee the due repayment of the sai d sum of
Rs. ........................... together with interest thereon at the rate and in the manner
aforesaid and all other monies, costs, charges and expenses which meant any time
387
CHAPTER-10
be due and payable to the Bank from the Borrower under this Agreement or by
operation of law or otherwise by the Borrower and due performance and observance
of other terms and conditions herein contained and on the part of the Borrower to
be observed and performed and also all loss and damage that may be suffered by
the Bank on account of the breach of term and conditions by the Borrower
PROVIDED ALWAYS AND IT IS HERE8Y EXPRESSLY AGREED AND DECLARED
that any neglect or forbearance of the Bank in endeavouring to obtain payment of
the said loan or interest or any indulgence given to the Borrower in the observance
and performance of the terms and conditions herein contained and on the part of
the Borrower to be observed and performed or any time being given by the Bank to
the Borrower for the payment of the said loan shall not in any way affect or prejudice
the guarantee or the continuing liability of the Guarantors hereby guaranteed.
12. RmfUhth fuUy"el dthkxefU;tofUe =ug;t W"thfU;tofuUmt:-mt: ntude YJksc ;fUcfUfUtu
W"thfU;tomumCe Cwd;tl vqhe ;hn tt l n ntust;t ni ;c ;fUgn =ug;t yvl uvqKoCtJ
fuUmt: sthe hnude>
The liability of the Guarantors under this Agreement shall be co-extensive with that
of the Borrower and it shall continue to be in force and will remain operative and in
full effect till all the dues of the Bank from the Borrower under these presents are
fully paid and satisfied.
13. cfUfUtugn Aqx ntude rfUJn dthkxefU;tofUturcl t RmfUe mqal t r=Y cdih W"thfU;tomu
r;Cqr; tt fUh mfU;t ni y:Jt W"thfU;tofUtur;Cq; ttixt mfU;t ni>Yume rfUme Ce
r:r; bdthkxefU;tofUe =ug;t vh fUtuRoCth l n v\zudt>
The Bank shall be at liberty to accept any security from the Borrower or part with
the same without notice to the Guarantors. The liability of the Guarantors shall remain
unaffected in any such event.
14. cfU;:t W"thfU;totht rfUme Ft;ufuUrl vxtl y:Jt W"thfU;totht JefUth fUe dRohtrN
rl agtbfUbtK ntudt rfUdthkxefU;tofuUvtmCe gn htrN cfUtgt ni>W"thfU;totht y:Jt
W"thfU;totht tr"f]U; rfUme gr; tht rtrF; v muJefUthtur; gt vtJ;e r=Y stl ufUe
cfUfUt W"thfU;tofuUvtmgn htrN cfUtgt ni, dthkxefU;tofuUQvh Ce gn ctgfUthe YJk
rl agtbfUntudt ;:t dthkxefU;tofUe ;hVUmumbg-mbg vh Rm;hn fUe vtJ;e =tl fUhl u
fuUrtY W"thfU;tofUtudthkxefU;tofuUYsx fuUv bbtl t st mfU;t ni>
Any account settled by and between the Bank and the Borrower or admitted by the
Borrower will be conclusive evidence of the amount due from the Guarantors also.
Any admission or acknowledgement in writing by the Borrower or by any person
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CHAPTER-10
authorised by the Borrower of the amount of indebtedness of the Borrower to the
Bank shall be binding and conclusive on and against the Guarantors and the Borrower
shall be the agent of the Guarantors or giving such acknowledgements from time to
time on behalf of the Guarantors.
15. W"thfU;tofuUrJh yvl e cfUtgt htrN fUe Jmqte fuUrtY cfUfUtugn yr"fUth ntudt rfU
Jn W"tfU;tofuUrJh fUthoJtRogt cfUtht mbg-mbg vh Ft;ub"trh; rfUme Ce r;Cqr;
fUtumbtt rfY cdih dthkxefU;tofuUrJh fUthoJtRofUhu>
The Bank shall be entitled to proceed against the Guarantors for the recovery of its
dues outstanding against the Borrower without proceeding against the Borrower or
exhausting any of the securities that may at any time be held by the Bank in the
account.
16. cfUfUtu=ug YJkcfUtgt ;:t tt fUtuRohtrN mbg-mbg vh cfUtht JrJJufUtl wmth rl "torh;
fuUyl wmth (cN;uocfUWmhtrN fUtumbg-mbg vh rl "torh; fuUyl wmth sc ;fUatnuWak;
Ft;ubsbt l fUhu) rcl t Wvgwo; fuUr; r;fqUt CtJ hFutt htrN rl l rtrF; vtb
mbtgturs; fUe stYde&
i) :b;&rl "torh; ntrl ;:t yr;rh; gts (yCtrh; gts mrn;) fUe b= b<
ii) r;eg;&Ctrh; gts fUe b= b<
iii) ;];eg;&cfUtht FaorfY dY gtg YJkttd;, fUth fUe b= bYJk<
iv) yk; bcfUtgt bqt "l fUe b= b<
Any money due and payable to the Bank and received by the Bank shall be applied
determine (save that the Bank may credit the same to a suspense account for so
long and in such manner as the bank may from time to time determine).
following manner:
interest);
17. b/nb Y;=Ttht cfUtht bwSu/nbr=Y dY }UK/yrd{b fUe vqJorl "torh; N;tufuUyl wmth rl g;
389
CHAPTER-10
;theF fUtub/nb gr= }UK/yrd{b fUe awfUti;e bgt gts fUe awfUti;e bgt }UK fUe rfUme
Ce rfU; fUe awfUti;e baqfUfUhl uvh cfUfUtuYJk/y:Jt Cth;eg rhsJocfUfUtuvqKo
yr"fUth ntudt rfUJn buht/nbtht l tb gt nbthe fkUvl e/VUbo/gqrl x YJkWmfuUrl =uNfUt/Ctde=tht/
JJr"fUtrhgtfUt l tb cfUgt Cth;eg rhsJocfUyvl uJrJufUtl wmth simt Wra; mbSuYJk
rsmbtgb muWra; mbSuaqfUfU;tofuUv bWstdh fUhJt gt AvJt mfU;t ni>
I/We hereby agree as a pre-condition of the loan/advances given to me/us by the
bank that in case I/we commit default in the repayment of the loan/advances or in
the repayment of interest thereon or any of the agreed instalment of the loan on
due date/s, the bank and/or the Reserve Bank of India will have an unqualified right
to disclose or publish my/our name or the name of our company/firm/unit and its
directors/ partners/proprietors as defaulter in such manner and through such medium
as the bank or Reserve Bank of India in their absolute discretion may think fit.
RmfuUmtg bRl =;tJustvh W"thfU;toYJkdthkxefU;toytl uWvgwo; r=l tkfUYJkJMobyvl u
n;tGh rf Y>
WITNESS WHEREON THE BORROWER and the GUARANTORS have hereunder set
their respective hands on the date and year first mentioned above.
..........................................................
(W"thfU;to/ Borrower)
1. ...........................................................
(dthkxefU;to/ Guarantor)
2. ...........................................................
(dthkxefU;to/ Guarantor)
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CHAPTER-10
Y/A-58
gq fUtucf UCO BANK
.............................................NtFt/ BRANCH
DtuMKt-mn-fUhth vt _ seJl cebt vtprtmer;Cqr; fuUrJh yrd{b
LETTER OF DECLARATION CUM AGREEMENTADVANCES AGAINST SECURITY OF LIFE POLICY
rg bntu=g,
Dear Sirs,
yvl u/nbthuvtprtme mk.................................................... fuUc;tih r;Cqr; buhu/nbthutht }UK
rtY stl ufuUmk=Cobb/nb gn DtuMKt fUh;t nq/fUh;e nq/fUh;un rfUWvgwo; vtprtme mkgt/ mkgtYk
Cthd{; l n ni/n ytih rfUr=l tkfU......................................vh/ fUtuytvfUtumbl w=uNl muvqJobl u/
nbl urJtuF tht fUtuRombl w=uNl l n rfUgt ni>
With reference to the loan taken by me/us on the security of my/our Policy(ies)
No(s) ...................................................... I/We hereby declare that the above policy(ies) is/are
free from encumbrances and that I/we have not made any assignment by deed prior to
assigning in your favour on ............................................................
2. b/nb Wvgwo; vtprtme(gt) vh sc fUCe rfU; (yr"bqg) cfUtgt/ vrhvJ ntul uvh cebt rfU;
Cwd;tl fUhl uytih ytvfuUmgtvl nu;whme= =ul ufUtumnb= nq/ n>buhu/ nbthutht rfUme rfU; fuU
Cw d;tl fUhl ufu Ubtbtub , b /nb c fUfUtutr"f] U; fUh;t nq / fUh;enq / fUh;un rfUJn yvl uJrJJu fUtl w mth
Wvgwo; vtprtme(gt) vh rfU; Cwd;tl fUhl t sthe hF mfU;t ni ytih b/nb }UK htrN fuUyr;rh;
buhu/nbthuW"thtfuUmkck" bbuhu/nbthutht stuCe Cwd;ug ntudt gts fUe mkrJ=tst; =h mbu; Yumu
rfU;tfUe htrN fUt vwl Cwod;tl fUhl ufUtumnb; nq/n>
I/We agree to pay insurance premium on the above policy (ies) when due and handover
the receipts to you for verification. In case of any payment of premium by me/us, I/we
authorise the Bank at its discretion to continue paying premiums on the above policy (ies)
and I/we agree to repay the amount of such premiums together with the contractual rate of
interest as payable by me/us in respect of my/our borrowings in addition to the amount of
the loan.
3. b/nb cfUfUtuyvl umkvqKoJrJJufUtl wmth vtprtme(gt) fUtucebt fkUvl e fUtuygvoK fUhl ufuUrtY
tr"f]U; fUh;e nq/ fUh;t nq/ fUh;un>
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I/We authorise the Bank to surrender the policy (ies) to the Insurance Company on
the Banks absolute discretion.
4. c/nb Rmct; vh mnb; nq/ n rfUvtprtme (gt) yrd{b YJkytdu=e stl uJtte yrd{b nu;w
c;tih m;; r;Cqr; sthe hnde>
I/We also agree that the policy (ies) shall be a continuing security for the advance and
any further advance that may be made.
5. buhe/nbthe ytgwr=l tkf ..................................................fUtu.......................................(vhtkfUl /
v]tkfUl fuUtht) JurN; ni/ n>
My/Our age has been admitted ....................................... on.............................. (vide
endorsement
6. cfUfUtumb; fUth fUe htrN fuUCwd;tl rf Y stl u;fUatnuJn Cq;, J;obtl y:Jt CrJ,
Jt;rJfUy:Jt mkCtg ntu, stubuhu/nbthutht Cwd;ug ntumfU;t ni/ mfU;un y:Jt rsmfuUrtY b/
nb l eaur=Y dY ;hefuUy:Jt yg:t c;tih bwg }UKe y:Jt sbtl ;e rsbuJth ntumfU;un, Rm
Jt; vh mnb; n rfUcfUfuUvtmrfUme Ce gtusl t:oy:Jt v brfUme mbg rJNuMvh buhu/
nbthuFt;uy:Jt Ft;ubhFl unu;wsbt y:Jt htrNgty:Jt ytih mb; r;Cqr;gtvh cfUfUtu
d{nKtr"fUth y:Jt :tvl tr"fUth (mux ytpVU) tt hnudt>cfUfuUvtmWvgtu; r;Cqr;gtb/vh ytih
y:Jt htrNgtytih mtJr" sbt fuUbtbtub, atnuJn Cwd;tl nu;wvrhvJ nwyt ntuy:Jt l n, vh
buhu/nbthuWth=trgJtfUtuWbtura; fUhl u;:t Wnmbtgturs; fUhl uy:Jt Jmqtl u, simuCe Jn Wra;
mbSu, nu;wJ;kt ntudt ytih cfUm=CtJl tvqJofUyl wbtrl ; htrN fUtuytCth htrN fUe ytuh bwSu/nb
mqal t r=Y rcl t (ytih atnuJn Jt==trFt fUhl ugt fUtl ql e fUthoJtRofUhl umuvqJontuy:Jt vat;)
:trv; fUh mfU;t ni>
Until payment is made to the Bank of all the amounts, whether past, present or future,
actual or contingent, which may be payable by me/us or for which I/we may be or become
liable hereunder or otherwise and whether as principal or surety, I/we agree that the Bank
shall have a lien and/or right of set off on all securities and/or moneys whatsoever held at
any time by the Bank on my/our account or my/our credit or for any account or manner or
purpose howsoever. The Bank shall be at liberty to discharge my/our liabilities out of the
said securities and/or moneys and in case of Term deposits, whether the same have matured
for payment or not and may appropriate or realise them in the manner thought fit by it and
without notice to me/us (and whether before or after filing suit or taking any legal proceedings)
the Bank may set off an amount estimated by it in good faith to be the amount of that
obligation.
392
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7. cfUfUtutt ytih cfUfUtuCwd;ug ;:t =ug fUtuRoCe htrN RmfUth fuUf{b byl wgw; rf Y
stYkdusimurfUcfUJrJJufUtl wmth mbg-mbg vh rl KogbfUv murl "torh; fUhu(RmfuUyr;rh; rfU
cfUsimumbg-mbg vh rl "torh; fUhusimuytih sc ;fUatnuWmuWak; Ft;ubsbt hF mfU;t ni)>
Any money due and payable to the Bank and received by the Bank shall be applied in
such order as the Bank in its absolute discretion may from time to time conclusively determine
(save that the Bank may credit the same to a Suspense A/c. for so long and in such manner
as the Bank may from time to time determine).
Wvgwo; fuUvqJtod{n fuUrcl t, tt fUe dRohtrN rl l vuK mbtgturs; fUe stYde&
Without prejudice to the above, the moneys received shall be appropriated in the
following manner:
ii) :b;&rl Keo; nstol t YJkydtugts (yCtrh; gts mbu;) fUe ytuh
Firstly, towards liquidated damages and further interest (including uncharged interest);
ii) r;eg;&, gts Cth fUe ytuh
Secondly, towards interest charge;
ii) ;];eg;&cfUtht WXtY dY FatuYJkCtht, bqgtfUe ytuh ;:t
Thirdly, towards costs, charges and expenses incurred by the Bank; and
ii) y;;&, cfUtgt bqt fUe ytuh>
Lastly, towards the principal amount due.
CJ=eg
Yours faithfully,
393
CHAPTER-10
A-65
gq fUtucf UCO BANK
.......................................... BRANCH
Date ................................. 200 .........
Dept. ....................................
Messrs ................................................................
................................................................
................................................................
Dear Sir(s),
We beg to advise that your Cash Credit Account is overdrawn by Rs. ..............................
in excess of the limit of Rs. ..................................... sanctioned by the Bank. We shall be
glad if you will kindly adjust the account at your early convenience.
Yours faithfully,
Manager
394
CHAPTER-10
Y/ A-68
gq fUtucf UCO BANK
btuxh fUth/btuxh mtRrfUt/fqUxh/btuvuz/mtRrfUt fUe Fhe= nu;w
fUboathegtfUtur=Y stluJttu}UK fuUrtY ytJu=l-vt
APPLICATION FOR LOAN TO STAFF FOR THE PURCHASE OF A
MOTOR CAR / MOTOR CYCLE / SCOOTER / MOPED / CYCLE
mntgfUbntck"f / bkzt ck"fU
The Asstt. General Manager / Divisional Manager
gqfUtucfU/ UCO BANK
"tl / bkzt....................................................fUtgtotg
Head / Division .............................................. Office
............................................................ (:tl / Place)
rg bntu=g/ Dear Sir,
b ytvfUt ytCthe hnqkdt/ hnqde gr=ytv bwSuyvl uWvgtud fuUrtY btuxh fUth/ btuxh mtRrfUt/
fqUxh/ btuvuz / mtRrfUt Fhe=l unu;wh.................................... (hvgu...............................................
..........................................................................................................) btt fUt }UK Jef]U; fUhstu
(1) Fhe=ustl uJttuJtnl fuUJt;rJfU/ rl "torh; bqg fUt 80%/ 90%n gr=(2)Fhe=ustl uJttu
Jtnl fuUDxtY dY bqg fUt 80%n>b Rm}UK fUtuawfUti;e }UK mkck"e cfUfuUrl gbtfuUyl wmth
fUdt/fUode rsnbil uv\Zt n ytih rsl fUt y:obl umbSt ni ;:t rsnbtl l ufuUrtY b mnb;
nq>}UK fUe awfUti;e h. ................................................. fuU30 / 60 / 84 / 200 btrmfUrfU;e b
fUe stgude>b cfUtht g:tvurG; =;tJustfUtucfUfuUvG brl vtr=; fUhl ufuUrtY mnb; nq>
gr=gn }UK bwSuJef]U; rfUgt st;t ni ytih b RmfUt WvCtud fUh;t nq/ fUh;e nq;tub RmfuUtht
yvl uJu;l mubtrmfUrfU;tfUtuJmqt fUhl ufUtuytvfUtuyvrhJ;ol eg yr"fUth =u;t nq/ =u;e nq>}UK
fUt rJ;hK..................................................... NtFt tht rfUgt stg>
To enable me to purchase a Motor Car / Motor Cycle / Scooter / Moped / Cycle for
my use, I shall be thankful if you will please sanction me a loan of Rs. .............................
(Rupees ............................................................................................. only) being (1) 80% / 90%
of the actual/scheduled price of the vehicle proposed to be purchased. OR (2) 80% of the
395
CHAPTER-10
depreciated cost of the vehicle proposed to be purchased. The loan will be repaid by me
according to the Banks Rules for such loans which I have read and the implications of which
I have understood and I agree to abide by the same. Repayment will be made in 30 / 60
/ 84 / 200 monthly instalments of Rs. ....................................... I agree to execute in favour
of the Bank such documents as may be required by the Bank. If the loan is sanctioned and
is availed of by me, I hereby give you irrevocable authority to recover the monthly instalments
from my salary. The loan may be disbursed through ............................................... Branch.
*buhucthurl l rtrF; rJJhK yrJtc stl fUthe nu;wr=gust;un _
*The following particulars about myself are given for ready information
C0rl 0mk0 mkgt..................................
P. F. M. No.
1. l tb/ Name :
2. v=l tb ytih ;il t;e fUe :tl &
Designation and place of posting
3. v=Cth d{nK fUhl ufUe ;theF / Date of joining :
4. sb fUe ;theF / Date of Birth :
5. ytJu=l fUe ;theF fUe tt Ju;l &
Remuneration drawn on the date of Application
(fU) bqt Ju;l
(a) Basic Salary
(F) bndtRoCtt
(b) Dearness Allowance
(d) bfUtl rfUhtgt Ctt
(c) House Rent Allowance
yg CttfUt WuF fUh
Other Allowance to be specified
fwUt h./ Total Rs. .......................................
(D) Ju;l mufUe stl uJtte fUxtir;gtfUt gtiht&
(d) Details of deductions made from salary
396
CHAPTER-10
CrJg rl r" ykN=tl / Provident Fund Contribution : h./Rs.
ytgfUh/Income Tax : h./Rs.
cebt erbgb/Insurance : h./Rs.
}UK fUe rfU;/Loan Instalments : h./Rs.
*yg fUxtir;gt(WuF fUh)
*Other deductions to be specified
fwUt h./Total Rs. ....................................
Nw Ju;l &
(Net) Take-Home Pay h./Rs. ................................................
6. cfUfuUr; =ug;tytytih yg ctnhe =ug;tytfuUgtihu&
Details of liabilities to the Bank and other outside liabilities
yts fUe ;theF b btrmfUrfU; fUe
=ug htrN htrN
Amount due on Amount of monthly
date instalments
h./Rs. h./Rs.
(i) cfUfUtu/ To Bank
(ii) CrJg rl r" fuUrtY/ To Provident Fund
(iii) d]n-rl btoK fuUrtY/To Housing Loan
(iv) yg ctnhe =ug;t (gtihu=)
Other outside liabilities (give details)
fwUt/ Total
397
CHAPTER-10
7. Fhe=ustl uJtte Jtnl fUt rJJhK&
Particulars of vehicle proposed
to be purchased
(i) bufU
Make
(ii) yJ-Nr;
Horse Power
(iii) rl btoK JMo
Year of manufacture
(iv) rl bto;t fuUcesfU/ rJf{u;t fUhth fuUyl wmth ttd;
(bqt gt btrK; r; mktl fUe stY)
Cost as per manufacturers invoice/sellers Agreement
(original or certified copy to be enclosed)
8. vnte WvCtud rfY dY Jtnl }UK (}UKt) fUt, gr= fUtuRontrJJhK&
Particulars of vehicle Loan(s), if any, availed of in the past
(i) WvCtud fUhl ufUe ;theF &
Date(s) of availment
(ii) Jef]U; }UK (}UKt) fUe htrN&
Amount of Loan(s) sanctioned
(iii) fUc mbtgturs; rfUgt dgt&
When adjusted
CJ=eg/ Yours faithfully,
yl wtl fU/ Enclo :
:tl / Place : n;tGh/ Signature
;theF / Date :
NtFt/ rJCtdeg rxvKe
Branch / Departments Note
398
CHAPTER-10
btrK; rfUgt st;t ni rfU
Certified that -
(i) b Wvgwo; b= mk. 6(vi) br=Y dY rJJhK fUtuAtu\zfUh ctfUe mCe rJJhKtfUe rJr"J;Tstka
fUe ni ytih Wnmne vtgt ni ;:t Wvgwo; b=mk. 6 (vi) br=Y dY rJJhK Ce buhe mJtuotb
stl fUthe YJkrJJtmfuUyl wmth mg ni>
The particulars given above with the exception of item 6(vi) therein have been duly
verified by me and found correct while the particulars furnished under item 6(vi) above
are true to the best of my knowledge and belief.
(ii) fUboathe fUtuvntufUtuRoJtnl }UK Jef]U; l n rfUgt ni/ gn ytJu=l -vt/ =qmhu/ ;emhuJtnl
}UK fuUrtY n>*
No vehicle loan has been sanctioned previously to the employer / this is an application
for second / third vehicle loan*
rmVUtrhN fUe st;e ni/ l n fUe st;e ni/ gtrfU*
Recommended / Not Recommended / because*
.............................................................................................................................................
.............................................................................................................................................
........................................................................
mnt ck"f / ck"fU/ bwg yr"fUthe
Asst. Manager/Manager/Chief Officer
NtFt/ fUtgtotg&
Branch / Office
;theF / Date :
*(f]Uvgt stuttdql ntuWmufUtx =)>*(Please score out the inapplicable)
399
CHAPTER-10
yl wNtme fUtgtotg fUt rJrl a&
Decision by Sanctioning Office
gtusl t fuUyl wmth h.......................................
(hvgu...............................................................
....................................................btt) Jef]U;
Sanctioned Rs. ..............................................
(Rupees ..........................................................
..................................... Only) as per scheme
.............................................. :tl / Place Wv bntck"fU/ mnt0 bntck"fU/ bwg yr"fUthe/
bkzt ck"fU
Dy. General Manager/Asstt. General Manager
Chief Officer/Divisional Manager
l tux &ytJu=l -vt ;el r;gtb;w; rfUgt stY ;:t RmfUe =tur;gtrl bto;t fuUcesfU/gtvthe
fuUrl Jur=; btkd/rJf{u;t fUhth fUe bqt gt btrK; r; fuUmt: YJkWvfUhK fuUttd; ytih
Cth fUt vqht gtiht =u;unwY yl wNtme fUtgtotg fUtuurM; fUe stY>
Note : The application should be submitted in triplicate and two copies of it should have
Manufacturers invoice/Dealers quotation / Sellers Agreement giving full details of cost
of accessories and other charges as well.
400
CHAPTER-10
Y/A. 88ce/B
gq fUtucf UCO BANK
............................................................
............................................................
rg bntu=gdK,
Dear Sirs,
bu hu /nbthuyl w htu " vh bu hu /nbthuFt;ubYJkbu hu /nbthuYfUbtt VUtg=ufu UrtY........................................
..........................................................................................................................................................
fuUvt b(rsmuRmbRmfuUvat;TIIW; rn;tr"fUtheOOfUnt dgt ni) r=l tkfU...................................
fUtuYfUdthkxe, rsmfUtuYfUr; RmfuUmt: mktl ni ytih rsmuRmbRmfuUvat;TIIW; dthkxeOOfUnt
dgt ni ytih stuRmr;dthkxe fUt YfUykN ntudt, ytvfuUtht rl vtr=; rf Y stl uytih WmfuUy"el
hnl uJttu=trgJtfUt Cth yvl uQvh tul ufuUr;VUtJv b/nb RmfuUtht fUhth fUh;t nq/fUh;un
rfUb/nb RmfuUvat;TW; dthkxe fUtu=tl rf Y stl uYJkrl vtr=; rfUY stl ufuUfUthK gt WmfuU
vrhKtbJv nbuNt ytvfuUtht WXtRost mfUl uJtte, Jnl fUe st mfUl uJtte, ytvfuU=trgJt"el
ntust mfUl uJtte gt ytvfuUtht Wvd; fUe st mfUl uJtte mCe ntrl , Gr;, ttd; Cth YJkFao
;:t W; dthkxe mumkm; gt WmfuUmkck" bytvfuUrJh fUe dRogt ;w; fUe dRomCe fUthoJtRo,
Jt=, fUtgoJtne, =tJuYJkbtkd fuUr; ytvfUe Gr;vqr;ofUkdt/fUhduytih ytvfUtuntrl hrn; YJkGr;vqrh;
hFqkdt/hFdu>
In consideration of your having executed, at my/our request on my/our account and or
my/our sole benefit a guarantee dated ..................................................... in favour of
.......................................................................................................................................................
(hereinafter called the said beneficiary) and undertaking the obligations thereunder, a copy
of which guarantee is hereto annexed and is hereinafter called the said guarantee and which
shall form part of this counter guarantee, I/we do hereby agree to in indemnify you and hold
you harmless and indemnified at all times hereafter against all loses, damages, costs, charges
and expenses which you, may sustain or suffer or be put to or may become liable or incur
by reason or as a consequence of your having given and executed the said guarantee and
also against all actions, suits, proceedings, claims and demands whatsoever made or preferred
against you in relation to or arising out of or in connection with the said guarantee.
401
CHAPTER-10
Rmr;dthkxe fuUy"el buhu/nbthuJ;obtl gt CrJg fuU=trgJtfUtuvqKo;&gt ykN;&vqht fUhl u
fuUrtY b/nb gn Ce fUhth YJkJal ck" fUh;t nq/fUh;un rfUytvfuUtht bwSu/ nb=e dRo3(;el )
r=l fUebtkd l turxmvh b/nb ytvfUtu............................................................................................b
Yume htrN fUt, rsmfuUCwd;tl fUe yvuGt ytvmuW; dthkxe fuUy"el fUe stY ytih/gt YumumCe =tJu
fUe htrN fUt, stuW; dthkxe fuUy"el gt WmfuUmkck" bytvfuUrJh fUe stY gt ;w; fUe stY
;:t ytvfuUYumumCe gts, ttd;, Cth YJkFaofUt, stuW; dthkxe fuUrl ck"l tfUtuvqht fUhl u
ytih/gt rJrl bg bW;th-a\ZtJ fuUfUthK dthkxe fUe htrN bnwRorfUme J]r fuUmkck" bytvfuUtht
Wvd; fUe stY ytih ytvfuUtht =ug ntuytih/gt RmfuUy"el bwSmu/nbmu=ug rfUme "l fUtuJmqt
fUhl ubytvfuUtht FaofUe stY, Cwd;tl fUdt/fUhdu>
For the fulfilment in part or in whole of me/our present or future obligations under this
counter guarantee, I/we also agree and undertake to pay to you at ..................................
........................................................................ on 3 (three) days notice of demand being made
on me/us the amount which you may be called upon to pay under the said guarantee and/
or amounts of all claims which may be made or preferred against you under or in relation
to the said guarantee including all your interests, costs, charges and expenses which may
be incurred by you or become payable by you in connection with fulfilment of the terms of
the said guarantee and/or any increase in the amount of the guarantee due to exchange
fluctuation and/or any sums spent by you in recovering moneys due from me/us hereunder.
b/nb W dthkxe fuUmkck" byvl ucal ck" fuUv bgn Ce yrCrtrF; fUh;t nq/fUh;un
rfUW; rn;tr"fUthe tht btkd rf Y stl uvh ytv yvl uvqKoYJkbw; rJJufUtr"fUth fuUy"el W;
btkd fUe rJr"btg;t, ytirag gt Ji";t fuUl vh gtl r=Y rcl t ytih bwSu/nbrl =uorN; rfUY rcl t
W; dthkxe fuUYume vqhe htrN gt WmfuUCtd fUt Cwd;tl fUhl ufuUnfU=th ntdursmfUe yvuGt W;
rn;tr"fUthe tht ytvmufUe stY ;:t bwSu/nbytvfuUtht rfUY stl uJttuYumCwd;tl fuUcthubl
fUhl ufUt fUtuRoyr"fUth l n ntudt ytih b/nb RmfuUtht ytc ntuQkdt/ntdu>
I/We also place on record as my/our undertaking in connection with the said guarantee
that on demand from the said beneficiary you will be entitled in your own absolute and
unfettered discretion to make payment of the whole or part of the amount of the said
guarantee as you may be called upon to do by the said beneficiary without going into the
question of validity, propriety or legality of the said demand and without any reference to
me/us and that I/we shall not have any right to question in anyway whatsoever your making
such payment but shall be bound by it.
b/nb ytdufUhth fUh;t nq/fUh;un rfUgn r;dthkxe buhu/nbthuVUbo/fkUvl e fuUdXl bntul uJttu
rfUme fUth fuUvrhJ;ol mur;fqUt v muCtrJ; l n ntude gt Wmvh fUtuRoCtJ l n v\zudt ytih
buhu/nbthuWthtr"fUthe YJk mbl w=urN;e WmfuUrl ck"l tfuUr; =tge cl uhndu>RmfuUyr;rh; gn
402
CHAPTER-10
r;dthkxe/Gr;vqr;o-vt ;c ;fUJ]t hnudt sc ;fUytv Rmdthkxe fuUy"el mCe =trgJtmuW;
rn;tr"fUthe tht ykr;b v muWbtura; l n fUh r=Y stgu;:t b/nb W; rn;tr"fUthe muWbtual
fUt rtrF; vwrefUhK t; l n fUh tu;t/tu;uytih W; dthkxe fUt btual Wl mul n fUht tu;t/tu;u;:t
RmfuUy"el gt W; dthkxe mumkckr"; ytvfuUmCe cfUtY YJk=tJufUe vqhe awfUti;e YJk;wr buhu/
nbthutht l n fUh =e st;e>
I/We further agree that this counter guarantee shall not be prejudiced or affected by
any change in the constitution of my/our firm/company howsoever arising and that my/our
successors and assigns shall continue to be liable in terms thereof. Further this counter
guarantee/indemnity will remain in force until you are finally discharged by the said beneficiary
of all liabilities under the said guarantee and I/we have got the discharge confirmed in writing
frcm the said beneficiary and got the said guarante redeemed from them and all your dues
and claims hereunder or relating to the said guarantee have been paid and satisfied in full
by me/us.
gn r;dthkxe/Gr;vqr;o-vt W; dthkxe vh r;fqUt CtJ ztturcl t ytih WmfuUbugt WmfuU
mkck" bRmfuUvat;TytvfuUtht "trh; gt "trh; rfUY st mfUl uJtturfUne yg r;Cqr; gt
r;Cqr;gtfuUyr;rh ni>
This counter-guarantee/indemnity is without prejudice to and in addition to any other
security or securities held or which you may hold hereafter on account or in relation to the
said guarantee.
ytv yvl uvqKorJJufUtr"fUth fuUy"el bwSmu/nbmuW; dthkxe fuUsthe hnl ufuU=tihtl rfUme
mbg ytih/gt WmfuUWbtual ytih/gt btual ntul u;fUytvfuUtht dthkxef]U; htrN fuUrtY vqhubtrsol
fUtul fU=v bbtkd fUhl uytih/gt W; dthkxe fuUy"el ytvfuUtht yvl uQvh rtY dY =trgJt
fuUCth fuUfUJh fuUv br;Cqr; ytih r;Cqr;gtfUe yvuGt fUhl ufuUnfU=th ntdu;:t b/nb
Jal ck" fUh;t nq/fUh;un rfUb/nb ytvfUtubtkd fUe ;theF mu3 (=el ) r=l fuUCe;h W; btrsol
l fU= v b=qkdt/=duytih/gt ytvfuUvtmYume r;Cqr;gtkytvfuUth yl wbtur=; v bYJkher; mu
;w; fUkdt/fUhdu>
You shall be entitled in your absolute discretion to demand from me/us, at any time
during the continuance of the said guarantee and/or till the same is discharged and/or
redeemed, full margin in cash for the amount guaranteed by you and/or call upon me/us to
furnish you with security or securities as a cover for the obligations undertaken by you under
the said guarantee and I/we undertake to provide you within 3 (three) days from demand
the said margin in cash and/or furnish you with such securities in such form and manner as
may be approved of by you.
403
CHAPTER-10
buhu/nbthubytvfuUvtmfuUattqsbt rfUme yg Ft;ubmbg-mbg gt sbt hnl uJttumCe
"l vh YJkbuhu/nbthuFt;uvh ytvfuUtht "trh; mCe r;Cqr;gtvh ytvfUt "thKtr"fUth hnudt ;:t
W; dthkxe fuUy"el mCe gts, ttd;, Cth YJkFaomrn; Yume htrN gt htrNgtfUtubtkd rfY
stl uvh, stuW; dthkxe fuUy"el ytvfuUtht cfUtgt gt =ug ntuytih/gt rsmfuUCwd;tl fUe yvuGt
W; dthkxe fuUy"el W; rn;tr"fUthe tht ytvmufUe stY, buhu/nbthutht Cwd;tl l rfUY stl ufUe
=Nt bytdul turxmr=Y rcl t RmfuUy"el buhu/nbthu=trgJtfUe Wmmebt ;fU;wr ntul u;fUbuhu/
nbthuW; Ft;umuW; "l fUtumbtgturs; ytih/gt rJrl gturs; fUhl uytih/gt W; Ft;ubsbt htrN
ytih/gt r;Cqr;gtfUt bqg ytvfuU=tJufUe vqr;ofUhl ufuUrtY yvgto; ntu, ;tuytv bwSmu/nbmuNuM
htrN fUt =tJt fUhl ufuUnfU=th ni>
You shall have a lien on all moneys from time to time standing to my/our credit with
you in any account whether in current deposit or in any other account and all securities
held by you on my/our account and in default of payment by me/us on demand the sum or
sums of money which may become due or payable by you under the said guarantee and/or
which you may be called upon to pay by the said beneficiary under the said guarantee
including all interests, costs, charges and expenses in relation thereto shall have authority
and be entitled without any further notice, to adjust and/or appropriate the sale monies from
my/our said account and/or recover the same from the said security or securities in protanto
satisfaction of my/our liabilities hereuhder. In case the amount at the credit of the above
accounts and/or the value of the securities are insufficient to meet your claims, you are entitled
to claim the balance amount from me/us.
W; dthkxe fUe ctc; ytvfUtu=e dRobtrsol ytih/gt r;Cqr; ytvfuUtht ;Ce rl bwo; fUe
stYde sc buhu/nbthutht W; dthkxe fUt rl btuoal ytih/gt btual W; rn;tr"fUthe murtrF; v b
fUht rtgt stY ;:t W; dthkxe mumkckr"; ytih/gt Rmr;dthkxe fuUy"el ytih/gt rfUme yg Ft;u
gt Ft;tvh ytvfuUr; buhe/nbthe mCe }UKd{;;t YJk=trgJtfUt Cwd;tl YJk;wr buhu/nbthutht
fUh r=gt stY>
The margin and/or securities given to you in respect of the said guarantee shall be
released by you only when I/we have got the said guarantee discharged and/or redeemed
in writing from the said beneficiary and all my/our indebtedness and obligations to you relating
to the said guarantee and/or under this counter-guarantee and/or on any other account or
accounts whatsoever are paid and satisfied by me/us.
b/nb Jal ck" fUh;t nq/fUh;un rfUb/nb WmmkrJ=t fuUmCe rl ck"l , N;oYJkmkrJ=t fUt
vttl YJkyl wvttl fUdt/fUhdursl fuUvttl fuUrtY ytih/gt rsl fuUmkck" bytvl uW; dthkxe =e
ni>
404
CHAPTER-10
I/We undertake to perform and observe all the terms, conditions and covenants of the
contract for the performance of which and/or in connection with which you have given the
said guarantee.
b/nb ytduJal ck" fUh;t nq/fUh;uni rfUbuhu/nbthutht W; mkrJ=t fuUvttl rfUY stl ufuU
mkck" bb/nb ytvfUtumbg-mbg vh mCe mqal tYk=qkdt/=du>
I/We further undertake to furnish you from time to time with all information regarding
the performance of the said contract by me/us.
CJ=eg,
Yours faithfully,
l tux &RmVUtbofuUrnk=e vtX murfUme fUth fuUJt=-rJJt=fuUWvt ntul ufUe r:r; bRmfUt bqt
Note : In the event of any controversy arising out of Hindi version of this Form, the original
405
CHAPTER-10
Y/A-93
;theF / Date ................................
Ctkztdthvtt/ The warehouseman
................................... Ctkztdth rl db/ warehousing corporation
.............................................................
.............................................................
rg bntu=g/ Dear Sir,
rJMg/ Re : ...............................................Jdo...................................... fuUrtY
;theF ..............................................................................fUe Ctkztdth
hme= mk0..........................................................................................
Warehouse receipts no. .................................................................
Dated .................................. for ............................................. bags
of .....................................................................................................
nb ytvfUtumqra; fUh;un rfUnbl ugqfUtucf ........................................fuUvtmWvgwo; Ctkztdth
mbed rdhJe hFt ni>W; hme=/hme=gqfUtucfUgt Wl fuUyt=uN vh Wl fuUvG bv]tkrfU; ni/n ytih
nbmt;t ntude gr=ytv Rm;g fUturhfUtzofUhYJkWvgwo; Ctkztdth hme=tbWrrF; btt vh
cfUfuU"thKtr"fUth fUtuyvl e crngtbl tux fUh>
We have to inform you that we have pledged the subject warehouse receipt with UCO
Bank ..................................................................................... the receipt(s) has/have been
endorsed in favour of UCO Bank or order and we shall be glad if you record this fact and
note in your books this banks lien on the goods covered by the above warehouse receipts.
CJ=eg/Yours faithfully
406
CHAPTER-10
A-97
UCO BANK
........................................................
Dear Sirs,
Re : Cash credit limit of Rs. ..................................... Loan of
Rs. ...................................
With reference to the above cash credit facility allowed and/or to be allowed by you to
us and/or the above loan advanced and/or to be advanced by you to us against security of
hypothecation/pledge of..................................................................we hereby agree and confirm
as follows :
I. That the bank may at any time in its absolute discretion, enter into any
participation arrangement with regard to the said advances with any bank, financial institution,
Insurance companies and others under its Participation Certificate Scheme on such terms
and conditions as the bank may deem fit and may also, in its like discretion, withdraw from,
cancel and annul such participation arrangement.
2. For the purpose of such participation the bank shall be at liberty to transfer and/
or assign in favour of the participating bank, Institution, companies or others the whole or
any part of the debt due to the bank from us in respect of the said advances and the benefit
of the documents executed and the securities given and/or to be given by us to the Bank
relating to the said advances.
3. We shall, if and whenever required by the bank, at our own expense, do and
execute and join in doing and executing all acts, deeds, things, documents or assurances
as the bank may require for effectuation of such participation arrangement and/or transfer
and assignment of the debt and securities.
4. We shall not, without the prior written consent of the bank, create in any manner
any charge, lien or any encumbrance whatsoever on securities given or to be given by us
to the bank in respect of the said advances.
5. The bank shall be at liberty to furnish the participating bank, Institution or
companies any Information or report with regard to the said advances whether received by
407
CHAPTER-10
the bank from us or otherwise in the banks possession as the bank may think fit and proper.
6. Notwithstanding that the bank may enter into any participation arrangement with
regard to the above advance, our liabllity towards the same to repay the advances made
and/or to be made by the bank to us with interest, Costs, charges and expenses will continue
and the banks right to recover the said advances from us will not be prejudiced or impaired
in any manner whatsoever by reason of the said participation arrangement.
Yours faithfully,
408
CHAPTER-10
A-98
UCO Bank
..............................................
Dear Sirs,
By the Deed of Transfer dated ........................................ between us and yourselves, you
transferred to us the sum of Rs. ........................................ being part of a loan made by you
to Messrs. ................................................................................ (the Borrower) together with
interest at the rate of ........................ % per annum on the sum transferred and a proportionate
part of the security mentioned in the schedule to (OR : proportionate part of the Book Debts
mentioned in) the DEED OF HYPOTHECATION/PLEDGE dated ........................ executed in
your favour by the Borrower.
We have agreed that notwithstanding anything contained in the abovementioned Deed
of Transfer you will repay to us on ............................................................... the sum of
Rs. ......................................... being the sum transferred. We have also agreed that
notwithstanding anything contained in the said Deed of Transfer, you shall pay us interest at
the rate of ................ % per annum on the sum transferred, calculated from the date of the
Deed of Transfer until the date of repayment by you, and not at the rate of ................ % per
annum as mentioned in the Deed of Transfer and in the abovementioned Deed of
Hypothecation/Pledge.
On receipt of repayment of the said debt aforesaid, we shall re-transfer the same to you
along with the abovementioned proportionate part of the security by executing a Deed of
Re-transfer in your favour in the form of the specimen attached to this letter.
This letter is being issued in duplicate and as such, please return the duplicate copy of
the letter duly signed on behalf of your Bank with the necessary endorsement regarding
confirmation of the above arrangement made thereon.
Yours faithfully,
(TRANSFEREE)
409
CHAPTER-10
Y/A-100
gq fUtucf UCO BANK
...................................................... NtFt
BRANCH
mtJr" }UK fuUvwlorl"tohK/fUevwlogJ:t fuU
mkck" b}UKfU;to(}UKfU;toyt) fuUmt: fUhth
AGREEMENT WITH THE BORROWER(S) ON
RESECHEDULING/REPHASING OF TERM LOAN
yts r=l tkfU....................................................... 200 ........... fUtuYfUytih e/eb;e/fwUbthe/
bu mmo............................................................................................................................................... (rsn
RmbRmfuUvat;TII}UKfU;toOOfUnt dgt ni ytih sc;fURmyrCgr; fUtunxtgt l stY gt fUtuRo
ct; m=CofuUrJh l ntu;c;fURmfuUy;do; WmfuU/WmfuUJtrhm/rl vt=fU, NtmfU, r;rl r",
Wthtr"fUthe YJkmbl w=uurN;e Ntrbt mbSustYkdu) ;:t =qmhe ytuh gqfUtucfUfuUcea, stucrfkUd rJr"
(mkNtu"l ) yr"rl gb, 1985 tht g:tmkNtur"; crfkUd fkUvl e (Wvf{btfUt ysol ytih yk;hK) yr"rl gb,
1970 fuUy"el drX; YfUrl drb; rl fUtg ni ytih rsmfUt "tl fUtgtotg, 10 rJ. ti. b. mhKe,
fUtutfUt;t bni ytih rsmfUe YfUNtFt yg :tl tfuUyttJt............................................. bCe
ni (rsmuRmbRmfuUvat;TIIcfUOOfUnt dgt ni ytih sc;fURmyrCgr; fUtunxtgt l stY gt
fUtuRoct; m=CofuUrJh l ntu;c;fURmfuUy;do; WmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt mbSu
stYkdu), rl vtr=; rfUY stl uJttufUhth fuUy;rlogb cl tY st;uni>
ARTICLES OF AGREEMENT made thi s .................................. day
of ........................ 20 ........ BETWEEN Mr./Mrs./Miss/M/s. ...................................................
............................................., (hereinafter referred to as the Borrower which expression shall
unless excluded by or repugnant to the context be deemed to include his/her heirs, executors,
administrators, representatives, successors and assigns) of the one part and UCO BANK, a
body Corporate constituted under the Banking Companies (Acquisition & Transfer of
Undertaking) Act, 1970 as amended by the Banking Laws (Amendment) Act, 1985 and having
its Head Office at No. 10, B.T.M. Sarani, Kolkata and a branch office amongst other places
at ........................................................................... (hereinafter referred to as the Bank, which
successors and assigns) of the other part.
410
CHAPTER-10
aqkrfU&
WHEREAS:
(fU) }UKfU;tofuUyl whtu" vh.........................................h. fUt }UK cfUtht }UKfU;tofUtu, yg
ct;tfuUmt:-mt:, cfUYJk}UKfU;tofuUcea r=l tkfU....................................... fUturl vtr=;
rfUY dY }UK fUhth b(rsmuRmbRmfuUvat;TII"tl fUhthOOfUnt dgt ni) rl rn; rl ck"l YJk
N;tuvh r=gt dgt :t ytih rsmu"tl fUthth fuUFkz 5 brJrl r=o her; muYJkrfU;tb
awfUtgt stl t :t>
(a) At the request of the Borrower a loan of Rs. ....................................... was advanced
by the Bank to the Borrower inter-alia on the terms and conditions contained in a loan
Agreement dated ............................... entered into between the Borrower and the Bank
(hereinafter referred to as the Principal Agreement) and the same was repayable in
the manner and by instalments specified in clause 5 of the Principal Agreement.
(F) WfU}UK ;:t Wmvh =ug gts ttd;, Cth YJkFaofuUmgfTUCwd;tl fuUrtY r;Cqr;
fuUv b}UKfU;tol ucfUfuUvG b.......................................fUtu=;tJus rl tvr=; rfUgt
:t stuRmfuUmt: mktl yl wmqae bmwaec ni (rsmuRmbRmfuUvat;TIIr;Cqr; =;tJusOO
fUnt dgt ni)>
(b) As security for due repayment of the said loan with interest thereon and costs, charges
and expenses, the Borrower had executed documents listed in the Schedule hereto on
............................................. in favour of the Bank (hereinafter referred to as the Security
documents)
(d) }UKfU;to"tl fUhth fuUFkz 5 byk;rJo awfUti;e yl wmqae fuUyl wmth W; }UK fUtu awfUtl u
b ymb:o hnt ni ytih .......................................... ;fU fuU cfUtgt NuM fuU v bu
...........................................;fUfu Ugts mrn; c fUfUt ...........................................h. }UKfU;to
fuUvtm=ug ni rsmu}UKfU;toRmfuUtht btl ;t ni YJkJefUth fUh;t ni>
(c) The Borrower has not been able to repay the said loan as per Repayment Schedule
contai ned i n cl ause 5 of the Pri nci pal Agreement and a sum of
Rs. .......................................... being the balance outstanding as on ....................................
inclusive of interest upto ....................................... is due and owing from the Borrower
to the Bank which the Borrower hereby admits and acknowledges.
(D) }UKfU;tol ucfUmuawfUti;e yJr" fUtuvwl rl "torh; fUhl uYJk......................................... muNw
ntul uJttubtrmfU/r;btne/Abtne rfU;tbcfUtgt NuMfUtuawfUtl ufUe yl wbr; =ul ufUt yl whtu" rfUgt
ni rsmucfUl uyg ct;tfuUmt:-mt: Rmbl eaur=Y dY rl ck"l YJkN;tuvh JefUth fUh
rtgt ni>
411
CHAPTER-10
(d) The Borrower has requested the bank to reschedule the repayment period and allow
him to repay the said balance outstanding in monthly/quarterly/half-yearly instalments
commencing from .......................................... which the Bank has agreed to do on the
terms and conditions inter alia as hereinafter appearing.
yc vqJofUr:; ;gtfUtugtl bhF;unwY rllrtrF; ct;tvh mnbr; nwRoni&
1. gn fUthth "tl fUhth fUt yl wvqhfUntudt>
This Agreement shall be supplemental to the Principal Agreement.
2. }UKfU;tocfUfUtu..........................................;fUfu U.......................................h. fUt W; cfUtgt
NuM, rsmb..................................................;fUfUt gts Ce Ntrbt ni, l eau=e dRo;theF
fUtuYJkrfU;tbawfUtYdt&
The sai d bal ance outstandi ng of Rs. ....................................... as on
.................................................. inclusive of interest upto .......................................... shall
be repayable by the Borrower to the Bank on the dates and by instalments mentioned
hereunder:
awfUti;e ylwmqae
REPAYMENT SCHEDULE
3. "tl fUhth fuUFkz 5 byk;rJo awfUti;e yl wmqae fUtuAtu\zfUh, rsmuW; fUth mumkNtur";
fUh r=gt dgt ni, "tl fUhth bWvJrKo; YJkyk;rJo mCe rl ck"l YJkN;urJr"btg YJk
ctgfUthe ntde ;:t vqhe ;hn mN; YJkCtJe ntde>
Save as Repayment Schedule as contained in Clause 5 of the Principal Agreement
which had been revised as aforesaid, all the terms and conditions set out and contained
in the Principal Agreement shall be valid and binding and in full force and effect.
Qvh bg:trlr=o ylwmqae
THIS SCHEDULE ABOVE REFERRED TO :
412
CHAPTER-10
RmfUemtGefuUv b}UKfU;tol uRmrJtuF fUe QvhrtrF; r=l , bnel uYJkJMobrl vtr=;
rfUgt>
IN WITNESS whereof the Borrower has executed these presents the day, month and
...............................................................
}UKfU;to(}UKfU;toyt) fuUn;tGh
Signature of the Borrower(s)
413
CHAPTER-10
A-101
AGREEMENT WITH THE GUARANTOR(S) ON
RESCHEDULING / REPHASING OF TERM LOAN
UCO BANK
.................................................... Date ................................
Dear Sirs,
WHEREAS at my/our request you had lent and advanced a sum of Rs. ...........................
to ............................................................................................ of ................................................
(hereinafter called the principal) on the terms and conditions contained in the loan Agreement
dated .............................. entered into by the principal with you.
AND WHEREAS the principal has not been able to repay the said loan in terms of
the said Agreement dated ............................. and a sum of Rs. ..................................... is the
balance outstanding in respect of the said loan as on ......................................... inclusive of
Interest upto .......................................... .
AND WHEREAS AT THE REQUEST OF THE PRINCIPAL AND ALSO AT MY/OUR
REQUEST YOU HAVE AGREED TO RESCHEDULE THE REPAYMENT PERIOD AND ALLOW
THE PRINCIPAL FURTHER TIME FOR REPAYING THE BALANCE OUTSTANDING OF Rs.
........................................................................................................................ IN SUCH
INSTALMENTS AS MENTIONED IN ANOTHER AGREEMENT DATED...........................
ENTERED INTO BY THE PRINCIPAL WITH YOU.
In consideration of your having at my/our request agreed to reschedule the repayment
period of Term loan and to grant time to the Principal as aforesaid, I/We hereby guarantee
the due repayment of the said sum of Rs. ...................................................... and every part
thereof and also the due payment of all interest accruing due thereon and all costs, charges
and expenses of and incidental to realisation and recovery of the dues and that accordingly,
I/we jointly and severally hereby agree and undertake to repay and pay (as the case may
be) on demand to you all such amounts whether for principal or for Interest or for costs,
charges, expenses or for any other moneys aforesaid as also to pay all the costs, charges
and expenses that you may pay, incur or suffer or be put to in any manner whatsoever or
in any ways concerning the said loan and or this guarantee and your rights hereunder and
for protection, preservation, defence or enforcement of your rights and recovery of your dues
either from the principal/s or from me/us.
Head Office :
10, B. T. M. Sarani
Kolkata-700 001
414
CHAPTER-10
2. I/We agree that you shall have full discretionary powers without any further consent
from me/us and without in any way affecting my/our liability under the guarantee, to renew
the loan and for hold-over, renew or give up, in whole or in part any security or securities,
received or to be received from the principal/s or anyone or more of them either alone or
jointly with any other person or persons or from any other person or persons bearing the
name of the principal/s.
3. I/We also agree that you shall be at liberty without in any affecting my/our liability under
this guarantee and I/We hereby give our consent to you to vary any term or terms of your
said loan to the principal/s or to release or discharge or to do any act or commission the
legal consequence of which is to discharge or enter into any composition or compound with
or promise to grant time of any other indulgence or not to sue either the Principal/s or anyone
or more of them or any person or persons liable on the said loan or any security or securities
or any person liable as security or collaterally liable for the Principal/s or any other person
or persons.
4. I/We further agree that this guarantee shall be a continuing security to you and shall
loan to the Princiral/s either by way of Principal amount or interest or costs, charges and
expenses and all and even thereof and of any of them are paid and satisfied in full.
5. I/We further agree that copies of accounts maintained in your Books of Accounts in
respect of the said loan of Rs. ................................ to the Principal/s and signed by your
me/us as to the amounts for the time being due by the Principal/s to you in any action or
other proceedings brought against me/us.
6. The demand in writing shall be deemed to have been given to me/us by sending the
same by post or by hand delivery addressed to me/us at the address ...................................
......................................................................................................... and shall be effectual
notwithstanding any change of residence or office and notwithstanding notice thereof to you
such demand shall be deemed to be received by me/us, as the case may be twenty-four
hours after the posting thereof and shall be sufficient if signed by anyone of your officers
and in proving such service it shall be sufficient to prove that the letter containing the demand
was properly addressed and put in the post office.
7. This guarantee shall be additional to any other guarantee for the Principal/s or anyone
or more of them signed by me/us or any of us that you may at any time hold.
8. I/We respectively waive in your favour all or any of our rights against you or the
415
CHAPTER-10
guarantee. AND I/we agree that I/we shall not be entitled to claim benefit of any legal
consequences of any variation of any contract entered into by the Principal/s or anyone or
more of them with you for and in respect of the loan, the liability in respect of which is
guaranteed by me/us as aforesaid.
9. If I/we now or shall hereinafter take any security from the Principal/s or anyone or more
of them in respect of my/our liability under this guarantee, I/we will not prove in the bankruptcy
or insolvency of the Principal/s or anyone or more of them in respect thereof to your prejudice
and such security shall stand as security for you and shall forthwith be deposited with you.
10. I/We agree and declare that you will not be bound or compelled to take any
proceedings, whatsoever against the Principal/s for recovery, enforcement or realisation of
any of your dues from or against the Principal/s under or in pursuance of and in respect of
and incidental to your said loan to the Principal/s before calling upon me/us to pay such
dues to you under and in pursuance of the guarantee herein given so that I/we shall be
liable and bound to pay such dues to you, notwithstanding that no proceedings whatsoever
shall have been taken by you against the Principal/s for recovery, enforcement or realisation
of any such dues.
11. I/We further agree and confirm that to give effect to the guarantee, you may act as
12. This guarantee shall ensure for the benefit of your successors and assigns.
13. All moneys whatsoever due and payable by me/us to you under and in pursuance of
thi s guarantee shal l be payabl e by me/us at your Branch offi ce si tuated at
....................................... .
Yours faithfully,
Place: Signature ......................................................
Date ...............................
Place: Signature ....................................................
Date ...............................
416
CHAPTER-10
A-103
gq fUtucf UCO BANK
"tl fUtgtotg&10, rJ. ti. b. mhKe, fUtutfUt;t-700 001
Head Office : 10, B. T. M. Sarani, Kolkata-700 001
gn mt=t ck"fUrJtuF e....................................................................................................
vw t.....................................................................................ytgw..................gJmtg...................... rl Jtme
d{tb............................................................ vwrtm :tl t......................................................
rstt........................................................ :b vG, rsmuY;rbl Tvat;TIIck"fUfU;toOOfUnt dgt ni (Rm
yrCgr; bsc ;fUrJMg gt mk=CofuUrJh gt WmmuyvJrso; l ntu, WmfuUJtrhm, rl vt=fU,
NtmfUr;rl r", mbl w=urN;e ;:t rn;t;rh;e Ntrbt ntdu) ytih gqfUtucfUstufUe cfUfUthe fUvl e
(Wvf{btfUt ysol ytih y;hK) yrl rl gfU, 1970 fuUy;do; drX; YfUrl drb; rl fUtg ni ytih
rsmfUt "tl fUtgtotg 10, rJ.ti.b. mhKe, fUtutfUt;t bni ;:t rsmfUe YfUNtFt.........................
............................................bni, r;eg vG, rsmuY;rbl Tvat; IIcfUOOfUnt dgt ni (RmyrCgr;
bsc ;fUrJMg gt mk=CofuUrJh gt WmmuyvJrsol l ntu, WmfuUWthtr"fUthe, rn;t;rh;e ;:t
mbl w=urN;e Ntrbt ntdu) fuUcea yts r=l tkfU.....................................btn ..............................JMo
............................................. fUturl vtr=; rfUgt st;t ni&
THIS DEED OF SIMPLE MORTGAGE is made this .........................................................
day of ................................................... 200 ...... BETWEEN SRI ...................................................
................................................................................. son of .................................................................
................................................... aged .......................... years by occupation ...........................
............................................................................... residing at Village .............................................
P.S. ................................................ District...................................................... hereinafter called
the Mortgagor (which expression shall unless excluded by or repugnant to the subject or
context include his heirs, executors, administrators, representatives assigns and transferees-
in-interest) of the FIRST PART AND UCO BANK, a Corporate Body constituted under the
Banking Companies (Acquisiti,on and Transfer of Undertakings) Act 1970 and having its Head
Office at 10, B. T. M. Sarani, Kolkata and also a branch at ...................................................
hereinafter called the Bank (which expression shll unless excluded by or repugnant to the
subject or context include its successors, transferees-in-interest and assigns) of the Other
417
CHAPTER-10
Part :
aqrfU/ WHEREAS:
1. ck"fUfU;tod{tb.............................................. ;nmet.....................................................
rstt........................................................................br:;, Cqrb =tg ;:t vrhmh, rsmfUt rJ;];
rJJhK Y;="el yl wmqae br=gt dgt ni ytih sturfUme Ce fUth fuUrJkdb (Rl fUc{m) ytih Cth
mubw; ni, fUtuvqhe ;hn yrCd]ne; ytih fUsubrf Y nwY ni gt Jn yg:t Cte fUth ;:t vgtot
v muRmfUt nfU=th ni>
The Mortgagor is absolutely seized and possessed of or otherwise well and
sufficiently entitled to ALL THAT the land hereditaments and premises situated at Village
........................ .......................................... Tehsil ................................................ District
..................... fully described in the Schedule hereunder written free from all encumbrances
and charges thereon.
2. ck"fUfU;tol usturfUYfUf]UMfU, ni, yvl e Fu;e-cthe fuUgtusl fuUrtY rJteg mntg;t
tt fUhl unu;wcfUmuytJu=l rfUgt ni>
The Mortgagor who is an agriculturist applied to the Bank for financial assistance
for his agricultural operation.
3. cfUl uck"fUfU;tofUtuWmfuUyl whtu" vh yvl e......................................................... NtFt
fUtutuFt crngtbck"fUfU;tofuUl tb vh Ftutudguy:Jt Ftutustl uJttul fU=}UK Ft;ugt Ft;t
vh.............................................. hvgufUe mebt ;fUmbg-mbg vh l fU=}UK mwrJ"t/mwrJ"t =ul ufUe
mnbr; Y;=rbl y;rJo N;tufuUy"el ;:t ck"fUfU;totht Rmct; fuUrtY mnb; ntustl uvh
=tl fUh =e ni rfUJn cfUfUtu=ug mCe "l htrNgt, stuWmvh Rmmbg y:Jt CrJg b=ug
n/=ug ntde ;:t W; Ft;u(Ft;t) vh Wmvh cfUtgt hnl uJtte htrNgty:Jt Rmmbg gt W=vat;T
Wmur=gustl uJttuyrd{bty:Jt yg htrNgt, gts, vrhgg Cth ;:t F;tufUtuWmCqrb, =tg
;:t vrhmh ytih Rmvh rJ btl ;:t/y:Jt ck"fUfU;totht mbg-mbg vh Wdtge stl uJtte VUmtstu
ctuge st awfUe n gt CrJg bctuge stYkde, gt stuFu; bF\ze n gt fUtxe st awfUe ni y:Jt
rsl fUt W; Cqrb bZuh tdt r=gt dgt ni gt rsnck"fUfU;tofuUdtu=tb gt vrhmh bsbt fUh r=gt
dgt ni y:Jt sntkfUn Ce ck"fUfU;tofuUbugt WmfUe ytuh muRnhFt dgt ni gt stuck"fUfU;to
fuUrl gktK bgt yr"fUth bn ;:t Fu;e fuUfUtb ytl uJttuytisth, bNel , vrvkd-mux, f]UrMrl rJrgt
fUe mtbd{e ytr= rsl fUt Y;rbl Tvat;TWuF rfUgt dgt ni, ck"fUhF fUh r;Cq; fUhudt>
The Bank has at the request of the Mortgagor allowed/agreed to allow to the
Mor tgagor cash credi t faci l i ti es from ti me to ti me up to the l i mi t of
Rs. .......................................... in a cash credit account or accounts opened or to be opened
418
CHAPTER-10
by the Bank in its books at its ...................................................... Branch in the name of the
Mortgagor on the terms and conditions contained herein and on the Mortgagor agreeing to
secure all Monies which now are or hereafter shall become due and owing on balance of
such account(s) or in respect of advances now or hereafter to be made or otherwise from
the Mortgagor to the Bank with interest costs, charges and expenses thereon by the Mortgage
of the said land hereditaments and premises and the crop existing thereon and/or to be raised
by the Mortgagor from time to time whether already sown or to be sown in future or standing
crops or cut or stacked in the said land or stored in the Mortgagors godowns or premises
or wherever else held on account of or on behalf of the Mortgagor, or under the Mortgagors
control or disposition and also agricultural implements, machinery, pumping set, articles of
agricultural inputs etc. as hereinafter contained.
yc gn rJtuF rllrtrF; fUt mtGeni&
NOW THIS DEED WITNESSETH as follows:
1. W; fUhth fuUyl wvttl b;:t vrhmh fuUr;VUt Jv ck"fUfU;toY;=Ttht cfUfuUmtg
mkrJ=t fUh;t ni rfUJn yvl uQvh ;mbg =ug ;:t yvl uW; l fU= }UK Ft;u(Ft;t) vh
rl fUtl uJttuNuM(Rmvh ntul uJttugts ;:t yg mtbtg Cth mrn;) ytih RmfUth fUe yg
"l htrN/"l htrNgtfUt, rsmfuUrsl fuUrtY Jn ;mbg W; yrd{btfuUcthubcfUfUt =ul =th ntudt
y:Jt cfUfUe Cwd;tl fUhl ufuUrtY =tge ntudt, btkd fUe stl uvh Cwd;tl fUhudt>
In pursuance of the said agreement and in consideration of the premises the
Mortgagor hereby convenants with the Bank that he the Mortgagor shall on demand pay to
the Bank the sum which shall then be due and owing to the Bank on the balance of the
said cash credit account(s) of the Mortgagor (including interest and other usual charges) and
such other sum or sums of money as the Mortgagor shall than be indebted in or liable to
pay to the Bank upon or in respect of the said advances.
2. ck"fUfU;totht }UK vh rfUY stl uJttugts fuUCwd;tl fUt vrhfUtl Dx;e-c\Z;e bqt
W"th =h mu........................%yr"fU/fUb =h vh rfUgt stYdt ytih sturl l ;b ................... %
r;JMontude>RmfUtvrhfUtl cfUbhFudY }UK Ft;u(Ft;t) fuU=irl fUNuMvh btrmfU/r;btne/
Abtne/mtbtg y:Jt cfUfUe :t fuUyl wmth yg yk;htttvh rfUgt stYdt ytih Rm}UK Ft;u
(Ft;t) bl tbuzttt stYdt>
That the Mortgagor shall pay interest on the loan to be calculated at the rate of
...............% above/below the Banks Prime Lending Rate rising and falling therewith with a
minimum of ......................... % per annum on the daily balances in the loan account(s)
maintained with the bank with monthly/quarterly/half-yearly/yearly or other rests according to
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CHAPTER-10
the practice of the bank which may be debited in the Loan Account/s. .
3. }UK fuUvqhe ;hn Cwd;tl ntul u;fUW; l fU=}UK Ft;u(Ft;t) fuU=irl fUNuMvh W;
gts-=h mugts tdtgt st;t hnudt>
Interest payable at the rate aforesaid shall be calculated and charged on the daily
balance in the Banks favour due upon said cash credit account(s) until the same is fully
liquidated.
4. ck"fUfU;to, r;Cqr; fuUrtY cfUtht J;w;&rfUY dY y:Jt rfUY stl uJttumCe vrhgg
(fUtpx), Cth ytih Fao(bwJrfUt tht yxl eofUtu=ug FatufUe ;hn) fUt Cwd;tl fUhudt, RmbJu
FaoCe mrbrt; ntdustuck"fUfU;tofuUrJh rfUme fUth fUe fUthoJtRofUhl ubgt Rmmumc"
ytl wMkrdfUfUthoJtRofUhl ubcfUfUhudt gt WmufUhl uv\zdu;:t r;Cqr; fUe mwhGt fuUrtY gt WmfuU
cthub;:t Wmmumkckr"; yg ytl wMkrdfUbtbttbnwY Fao;:t Y=;Ttht r;Cq; mb; htrN gt
WmfuUrfUme Ctd fUe Wvtrt gt trt gt Wvtrt gt trt nu;wrfUgudgugl gt WmfUe Jmqte b
nwY Fao;:t yg mCe fUth fuUvrhgg, rsl bcfUtht vhtbNotul ubytih vttath fUhl ubgt
yg:t fUth murfUgustl uJttuFaobmrbrt; n (Y;rbl Tvat;Trsl fuUrtY IImCe vrhgg, Cth
;:t FaoOOfUt gtud rfUgt dgt ni), Cwd;tl fUhl ufuUrtY Wmmbg ;fU=tge hnudt sc;fUrfU
ck"rfU; vrhmh r;n;tk;rh; l n fUh r=gt st;t ni>
The Mortgagor shall pay all costs (including as between attorney and client)
charges and expenses actually paid or payable by the Bank in relation to the security including
those of and incidental to any proceedings which may be had and which the Bank shall
incur or be put to or be liable to pay in or about and incidental to the protection of the
security and for procuring or obtaining or attempting to procure or obtain payment or recovery
of all or any of the moneys hereby secured or part thereof and all other costs whatsoever
including taking of opinion and correspondence or otherwise which the Bank may incur until
the mortgaged premises are reconveyed (hereinafter collectively referred to as all costs
charges and expenses).
5. W; fUhth fuUyl wvttl b;:t vrhmh fuUr;VUt Jv ck"fUfU;toRmmt=uck"fUtht
W; l fU= }UK Ft;u(Ft;t) fuUy;;&c= ntul uvh gt cfUtht rfUme Ce mbg btkd rfUgustl u
vh IIcfUfUtu=ug NuMOO;:t ck"fUfU;totht cfUfUtu=ug W; yrd{btytih/gt r=Y stl uJttuyrd{bt
;:t ck"fUfU;totht yvutugt rfUme gr; gt gr;gtgt fUvl e fuUmt: mkgw; v mubwg
gr; fuUv bgt r;Cq; fuUv brtY dY gufUfUth fuU}UK fUe htrN ;:t ck"fUfU;tofuU
yl whtu" vh gt mtifUgo(YfUtpbzuNl ) fuUrtguyg rfUme gtusl nu;wr=Y dY rfUme }UK, mtF gt
yrd{btfUe htrN gt htrNgtfuUvwl Cwdo;tl fuUrtY W; mvqKoCqrb =tg ;:t vrhmh, rsmfUt mwrJ;];
JKol ;:t WuF Y=el yl wmqae brfUgt dgt ni<;:t mb; CJl Rbth;, mkhal tY, rJrl btoK, rsn
yrCrJrl rbo; rfUgt dgt ni y:Jt stuY;;Tvat;TrJrl rbo; rfUY stYkdugt stuW; vrhmh vh gt
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CHAPTER-10
WmfuUrfUme Ctd vh r:; n<;:t W; Cqrb vh rJgbtl y:Jt mbg-mbg vh Wdtge stl uJtte
mCe VUmt, stuctuge st awfUe n ;:t CrJg bctuge stYkde gt F\ze VUmtgt rsnfUtx fUh
W; Cqrb vh Zuh tdt r=gt dgt ni gt stuck"fUfU;tofuUdtu=tb gt vrhmh b, sntfUn Ce Ju
rJ btl ni, sbt fUh =e dRon gt rsnck"fUfU;tofuUbugt WmfUe ytuh muhFt st mfU;t ni<
;:t Fu;tfuUfUtb ytl uJttuytisth ;:t bNel t, rJ w;-atrt; vrvkd mux ;:t ytpgt Rkrsl , f]UrM
rl rJrgtfuUCkzth simucea, WJohfU, Ft=, l tNfUseJbth (fuUxemtRz) ytih fUexl tNt(RmuxemtRz)
v=t:oytr=, stuJ;obtl bck"fUfU;tofuUvtmWvt" n gt CrJg brsnFhe=t stYdt ;:t/y:Jt
stuck"fUfU;tofuUyr"fUth bn ;:t rsnck"fUfU;tofUe Cqrb bf]UrMWvt=l fuUrtguWvgtud b
ttgt st hnt ni/ttgt stYdt<;:t W; Cqrb, =tg ytih vrhmh fuUgt Wmmumktl gt RmfuUmt:
ytb ;tih mu"trh; gt yr"Ctud y:Jt WvCtud rfUgustl uJttugt WmfuUgt WmfuUmt: mktl fUnu
stl uJttuctdtl , J]G, Str\zgt, ht;u, drtgthu, st-rl dob, mwrJ"tYk(rtxt), mwFtr"fUth, rJNuMtr"fUth ;:t
mCe Wvtkd<;:t W; vrhmh mumkc mCe fUtl ql e yr"fUth ;:t mCe rJtuF, vuyr"fUth vt, tuF
;:t Wmmumkc nfUfuUyg mtg stuck"fUfU;tofUe yrChGt, Nr; y:Jt yr"fUth bJ;obtl
mbg bni gt W;;Tva;TntustYkdugt ntumfU;uni<;:t ck"fUfU;togt WmfuUbtgb mu=tJt fUhl u
JtturfUme gr; gt gr;gtfUe mb; mv=t, yr"fUth, nfUrn;, =tJt ;:t fUtuRoCe btd ytih
WmfUt gufUykN r;Cqr;Jv cfUfuUvtmck"rfU; fUh;t ni>Y;rbl TIIcfUfuU=ug NuMOOyrCgr;
bW; l fU= }UK Ft;u(Ft;t) bmbg-mbg vh =ug ntul uJttubqt"l ytih Wl vh Y;rbbTvat;T
WrrF; =h mur=l -r;-r=l stu\zt dgt gts ;:t ck"rfU; mvrtgtfuUmkck" bgt WmfuUrJf{g
y:Jt rl vxtl fuUmc" bcfUtht Cwd;tl rfUY dY gt Wvd; (Rl fUz) mCe Cthe ;:t Fatu
fUe htrN mrbrt; ntude>
In pursuance of the said agreement and in consideration of the premises, the
Mortgagor hereby mortgages to the Bank by way of Simple Mortgage ALL THAT the said
land hereditaments and premises more particularly described and referred to in the Schedule
hereunder written together with all houses, buildings, structures - erections now erected or
hereafter to be erected or standing thereon or any part thereof together with the whole of
the crops existing or to be raised from time to time on the said land whether already sown
or to be sown in future or standing crop or cut and stacked on the said land or stored at
the Mortgagors godown or premises wherever else they may be or which may be held on
account or on behalf of the Mortgagor and also agricultural implements and machinery,
electrical pumping sets and oil-engine, stocks of agricultural implements inputs viz. seeds,
fertilizers manure, pesticides, insecticides etc. (present as well as future) purchased and/or
belonging to the Mortgagor and which are being/will be utilised/used for agricultural production
on the Mortgagors lands as well as gardens trees shrubs, ways passage, drains, liberties,
easements privileges and appurtenances whatsoever to the said land hereditaments and
premises belonging or in anywise appertaining thereto or usually held or occupied or enjoyed
therewith or reputed to belong or be appurtenant thereto AND all the legal incidents thereof
421
CHAPTER-10
together with all deeds, pattahs, muniments, writing and other evidences of title relating thereto
which now are or hereafter shall or may be in the custody power or in possession of the
Mortgagor AND ALL the estate, right, title interest, claim and demand whatsoever of ~he
Mortgagor or any other person or persons claiming through him and every part thereof by
way of security for the due repayment on demand of the balance due to the Bank at any
time or ultimately on the closing of the said cash credit account(s) and also as security for
payment of all other moneys which shall become due and owing from the Mortgagor to the
Bank on account and in respect of the said advances made and/or to be made and such
other sum or sums of money as the Mortgagor shall then be indebted or liable to pay to
the Bank upon or in respect of any other loans, credits or advances made or for the
accommodation or at the request of the Mortgagor or in respect of any other matter whether
the Mortgagor shall be so indebted or liable solely or jointly with any person or persons or
Company whether as principal or as surety. The expression the balance due to the Bank
used herein shall be taken to include the principal moneys from time to time due on the
said Cash Credit Account(s) and also all interest thereon calculated from day to day at the
rate hereinafter mentioned and the amount of all charges and expenses which the Bank
may have paid or incurred in any way in connection with the mortgage properties or the
sale or disposal thereof.
6. ck"fUfU;toY;=Ttht cfUfuUmt: rl l rtrF; v bytduytih mkrJ=t fUh;t ni rfU&
The Mortgagor hereby further convenants with the Bank as follows: -
(i) cfUtht W"th =edRo;:t/y:Jt W"th =estl uJtte"l htrNgtfUt Wvgtud ck"fUfU;to
yg rfUme gtusl bl fuUJt yvl uf]UrMfUtgtufuUrtY fUhudt<
That the sums advanced and/or to be advanced by the Bank shall be used
by the Mortgagor for the purpose of his agricultural operations and for no
other purpose whatsoever.
(ii) W; l fU= }UK Ft;u(Ft;t) vh yrd{b =ul t gt yrd{b =ul t sthe hFl t cfUfuU
JrJJufUfuUyr;rh; yg rfUme ct; vh rl Coh l n fUhudt<
That the Bank shall not be required to make advances or continue advances
in the said cash credit account(s) otherwise than at the Banks discretion.
(iii) ck"fUfU;toWdtne dRogt WdtRostl uJtte VUmt gt Wvs ;:t f]UrMytisth, bNel ,
rJ w;-atrt; vrvkd mux, ytpgt Rrsl ;:t f]UrMrl rJrgtfuUxtpfUyvl usturFb
;:t Faovh yAe ntt; bYJkrfUme Ce ntrl , Gg ;:t l wfUmtl mumwhrG;
hFudt>
422
CHAPTER-10
That the Mortgagor shall keep at his risk and expenses the crop grown or
to be grown or the produce and the agricultural implements, machinery,
electrical pumping sets, oil engine, stocks of agricultural inputs in good state
and condition and protected against loss, deterioration and damage.
(iv) ck"fUfU;to}UK sthe hnl ufuU=tihtl cfUfUe rtrF; vqJtol wbr; fuUrcl t W; Cqrb
vh Wdtge dRoVUmtl n fUtxudt ;:t cfUfUe mnbr; mufUtxe dRoVUmt;wh;
ne cfUgt WmfuUmbl w=urNr;gtfUturdhJe hF =e stYde ;:t ck"fUfU;tocfUfUe
yl wbr; fuUWvs fuUyrCmkfUhK (tumurmkd) gt rJf{g fuUrJNuMgtusl nu;wne fUtxe
dRoVUmttfUtuyvl e yrChGt bhFl ufUt nfU=th ntudt yg:t l n&
That the Mortgagor shall not cut the crops on the said land without the
express written permission of the Bank during the subsistence of the loan
and the crop so cut with the consent of the Bank shall be delivered
immediately on pledge to the Bank or assigns and the Mortgagor shall not
be entitled to the custody of the cut crops except with the permission of
the Bank and only for the specific purpose of further processing the produce
or sale.
(v) cfU, WmfuUfUboathe, Ysx ;:t WmfuUtht bl tul e; gr; rfUme Ce mbg ck"fUfU;to
gt dthkxe=t;t fUtumqal t r=gurcl t Wvgwo; Cqrb gt vrhmh bsntrfUVUmt vi=t
fUe dRoni gt sbt fUe dRoni, JuN fUhl u, WmfUt rl heGK fUhl uytih sta-v\z;tt
fUhl ufuUnfU=th ntdu;:t mt:-mt: ne Y;=Ttht r;Cq; rfUme Ce htrN fUt Cwd;tl
fUhl ugt cfUfuUr; rfUme =trgJ fUtuvqht fUhl ubck"fUfU;totht aqfUfUe stl u
y:Jt Yume rfUme r:r; fuUvi=t ntustl uvh rsmmurfUcfUfUe htg br;Cqr;
fuUF;hubv\zl ufUe ytNkfUt ni, VUmt gt Wvs fUtuyvl uyr"fUth btul u, Wmu
fUtxl ugt Jntmunxtl uy:Jt mtJosrl fUl ettbe gt rl se rl rJ=t tht rcf{e fUhl u
fuUnfU=th Ce ntdu>rfU;wW; rfUme Ce Nr; fUt gtud fUhl ufuUrtY Wl vh
fUtuRoctg;t l n ntude ytih l ne W; fUtgofUhl ubntul uJtte rfUme ntrl fuUr;
Wl fUe fUtuRosJtc=une ntude ;:t Yumt fUhl umucfUfuUct==tgh fUhl ufuUyr"fUth
y:Jt yg:t v muWmumwtC Wvath-Wvtgtvh fUtuRor;fqUt CtJ Ce l n
v\zudt>
That the Bank, its servants, agents and nominees shall be entitled at all
times without notice to the Mortgagor or guarantor to enter the above said
land or the premises where the produce raised on the said land are stored
and inspect and check the same and also on the default of the Mortgagor
in payment of any money hereby secured of the performance of any
obligation of the Mortgagor to the Bank or occurrence of the circumstances,
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CHAPTER-10
in the opinion of the Bank endangering the security, to take possession, cut
or remove the crop or produce or sell by public auction or private contract,
without being bound to exercise any of these powers or being liable for any
loss in the exercise thereof and without prejudice to the Banks remedies of
suit or otherwise.
(vi) RmfuUyr;rh;, y;rl orn; rfUme Ce ct; mucfUfuUr; ck"fUfU;tofUe }UKd{;;t
gt =ug;t fuUrtY cfUfUtuJ;obtl gt CtJe r;Cqr;, dthkxe =trgJ y:Jt rzf{e
fuUmkck" btt rfUme Ce yr"fUth vh r;fqUt CtJ l n v\zudt<
That nothing herein shall prejudice any rights of the Bank in respect of any
present or future security, guarantee obligation or decree for any
indebtedness or liability of the Mortgagor to the Bank.
(vii) ck"fUfU;toRmct; fUe DtuMKt fUh;t ni ytih Jal =u;t ni rfUJn W; Cqrb ;:t
W; Cqrb vh WdtRodRoJ;obtl gt CtJe VUmttgt Wvs fUturfUme Ce vqJogt
CtJe Cth gt rckdb (RfUc{m) mubw; hFudt ;:t gn ck"fUfU;tofUe vqKo;gt
rl se YJkJtg; mvrt ntude<
The Mortgagor declares and undertakes that the present or future crops or
produce grown on the said land and the said land shall be kept free from
any prior or future charge or encumbrance and be the absolute and
disposable property of the Mortgagor.
(viii) ck"fUfU;toDtuMKt fUh;t ni rfUW; Cqrb vqhe ;hn muWmfUe ni ;:t YfUbtt Wmu
ne RmCqrb fuUmJuomJtobtrtfUfuUv by:Jt yg:t her; muCqrb mutt
ntul uJtte mCe mwrJ"tyt(Jurl rVUx) fUt Wvgtud fUhl ufUt vqht-vqht yr"fUth ni<
That the Mortgagor declares that the said land is the absolute property of
the Mortgagor and the Mortgagor has full and exclusive rights to the
enjoyment of the benefits arising from the said land whether as the absolute
owner of the land or otherwise.
(ix) ck"fUfU;toW; Cqrb fuUmc" bgt WmfuUWvCtu;t fuUv bmCe htsJ,
WvfUh, Cth ytr=fUt Cw d;tl fUhu dt ;:t Jn W; Cq rb mutt ntu l u Jttemw rJ"tyt
fUtumCe fUth fuUmtkrJr"fUgt yg:t Cthtmubw; hFudt<
That the Mortgagor shall pay all revenue, cesses, charges etc. in relation
to the said land or as to the user thereof and always keep the benefits
arising out of the said land free from all charges, statutory or otherwise.
(x) gr= ck"fUfU;tomCe htsJ, fUh, WvfUh, ;:t RmfUth fUe yg mtJosrl fUgt
mtkrJr"fUbtdtu;:t CthtfUt Cwd;tl rl "torh; mbg bl n fUh vt;t ni ;tucfU
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CHAPTER-10
fUtugn J;kt;t ntude (rfU;wJn Yumt fUhl ufuUrtY ctg l n ntudt) rfUJn Rl
=ug;tytfUtuck"fUfU;tofuUW; l fU= }UK Ft;u(Ft;t) bl tbuzttfUh Cwd;tl
fUh =u>RmfUth rfUgt dgt Cwd;tl Y;=Ttht r;Cq; ntudt ;:t W; l fU= }UK
Ft;u(Ft;t) bWmuyrd{b fuUv bbtl t stYdt<
That the Bank shall be at liberty (without being bound to do so) to pay all
revenue, taxes, cesses and other such public or statutory demands and
charges by debiting the same to the said cash credit account(s) of the
Mortgagor if the Mortgagor fails to pay the same within the time, and
payment so made shall be secured hereby and deemed as an advance in
the said cash credit account(s).
(xi) ck"fUfU;tor;Cqr; fuUattqhnl ufuU=tihtl Y;=Ttht ck"rfU; yvl e mvrtgtfuUmCe
nfU-rJtuF cfUbsbt hFudt ytih mt: ne Rmr;Cqr; fuUattqhn;umbg Jn
rfUme Ce r:r; bW; =;tJustfUturfUme Ce =qmhugr; fUtul n =udt y:Jt
Wl fUt rfUme Ce Yume her; muWvgtud l n fUhudt rsmmurfUcfUfuUrn;tvh rfUme
fUth fUt r;fqUt CtJ v\zu<
The Mortgagor shall, during the continuance of the security, keep all title
deeds of his properties hereby mortgaged deposited with the Bank. The
Mortgagor shall in no case deliver the said documents of title to any other
person or deal with them in any manner prejudicial to the interest of the
Bank during the continuance of this Security.
(xii) Rl tuFtgt rfUme rJ"tge yr"rl grb; tht cfUfUtu=t Nr; gt gtmfUt
gtud gt rl vt=l fUh;umbg yl stl ubntul uJtte rfUme ntrl fuUrtY cfUfUe fUtuRo
sJtJ=une l n ntude>
The Bank shall not be answerable or accountable for any involuntary losses
which may happen in or about the exercise or execution of any of the power
or trusts which may be vested in the Bank by virtue of these presents or
by any legislative enactment.
(xiii) Rmck"fUrJtuF fUt Wvgtud W; l fU=}UK Ft;u(Ft;t) vh mbg-mbg vh ckfU
fUtu=ug NuMhtrNgt;:t =ug yr;b NuMfUe r;Cqr; fuUv brfUgt stYdt ;:t
W; Ft;t (Ft;u) Rmr;Cqr; fuUgtusl fuUrtY c= l n mbSt stYdt (mbSu
stYkdu) ;:t Rmr;Cqr; fuUrfUme Ce mbg gt mbg-mbg vh W; l fU= }UK
Ft;u(Ft;t) bte dge }UK htrN muyr"fUhtrN sbt fUh =ul uy:Jt W;
Ft;u(Ft;t) mu..................................................hvgufUe Jef]U; }UK mebt fUe
mvqKohtrN rl fUtt tul ufuUvat;T}UK htrN fUt Cwd;tl fUh yr;rh; htrN sbt
fUh =ul umumbtt l n btl t stYdt>
425
CHAPTER-10
That this Deed of Mortgage is to operate as security for the balance from
time to time due to the Bank and also for the ultimate balance to become
due on the said Cash Credit Account(s) and the said account(s) is/are not
to be considered to be closed for the purpose of this security and this
security is not be considered exhausted by reason of the said Cash Credit
Account(s) being brought to credit at any time or from time to time or of
its/their being drawn upon to the full extent of the said sum of Rs.
.............................................. if afterwards reopened by a payment to credit.
(xiv) cfUtht r=Y dY }UK-yrd{btfUe vqJoN;ofuUv bck"fUfU;toY;=Ttht gn
mnbr; =u;t ni rfUgr= Jn }UK/yrd{btfUe awfUti;e by:Jt Wl fuUgts fUe
awfUti;e by:Jt rl g; ;theF (;theFt) fUturfUme Ce ;g rfU; fUt Cwd;tl fUhl u
bawfUfUh;t ni ;tucfUy:Jt Cth;eg rhsJocfUfuUvtmgn rl &N;oyr"fUth
ntudt rfUJuaqfUfU;tofuUv bWmfuUl tb y:Jt fkUvl e/VUbo/RfUtRoytih RmfuU
rl =uNfUt/ykNe=tht/JJ"trhgtfuUl tb yvl uvqKorJJufUmuWmher; ytih Wmbtgb
mufUx y:Jt fUtrN; fUhsimt JuWra; mbS>
The Mortgagor hereby agrees as a pre-condition of the loan-advances given
to him by the bank that in case commits default in the repayment of the
loan/advances or in the repayment of interest thereon or any of the agreed
instalment of the loan on due date/s, the bank and/or the Reserve Bank of
India will have an unqualified right to disclose or publish his name or the
name of the company/firm/unit and its directors/partners/proprietors as
defaulter in such manner and through such medium as the bank or Reserve
Bank of India in their absolute discretion may think fit. .
(xv) (i) vqJoN;ofuUv bck"fUfU;tofUtu}UK/yrd{b/yg dih-rl r" yt"trh; W"th
mwrJ"t =ul umkck"e btbttbcfUfUtuck"fUfU;tofuUrJteg btbtufUtug;
fUhl unu;wck"fUfU;tofUe mnbr; tt fUhl e ntude>ck"fUfU;tofUe }UK mwrJ"t
mkck"e, =ug;t, ctfUe =ug;t ;:t fUe dRoaqfUmkck"e mqal t fUtufUtrN; fUhl u
fuUcthubCe cfUck"fU;tofUe mnbr; tt fUhudt>
(ii) ;=l wmth, ck"fUfU;togn mnbr; =u;t ni rfUcfUrl l rtrF; mqal t fUtufUtrN;
fUh mfU;t ni&
fU) ck"fUfU;tofuUcthubmqal t YJkytkfU\zu<
F) ck"fUfU;totht te dRo}UK mwrJ"t/te stl uJtte mwrJ"t fUe mqal t,
;:t
d) Rm=ug;t fuUrl Jonl bfUe dRoaqfUfuUcthubsimurfUcfUWvgwo;
426
CHAPTER-10
mbSu, Jn }UK mqal t gqhturt. ;:t Cth;eg rhsJocfUtht tr"f]U;
rfUme Ce Ysme fUtuck"fUfU;tofuUcthubmqra; fUh mfU;t ni>
(iii) ck"fUfU;togn DturM; fUh;t ni rfUck"fUfU;totht cfUfUtu=e dRomqal t mg
YJkmne ni>
(iv) ck"fUfU;t Jal =u;t ni rfU&
fU) }UK mqal t gqhtu(Rkrzgt) rt. ;:t tr"f]U; fUtuRoCe Ysme, cfUtht
=e dRomqal t mkf]U; fUh mfU;e ni<;:t
F) }UK mqal t gqhtu(Rkrzgt) rt. ;:t fUtuRoCe tr"f]U; Ysme mkf]U;
mq al t, ytk fU\ zt rfUmecfU/rJteg mk :t ;:t yg }UK dthk xe;:t Cth;eg
rhsJocfUfUe ytuh murl "torh; rfUme Ysme fUtuYume mqal t =umfU;e
ni>
(i) As a pre-condition, relating to grant of the loans/advances/other non-
fund based credit facilities to the Mortgagor, bank requires Mortgagors
consent for the disclosure by the bank of information and data relating
to the credit facility availed of/to be availed, by Mortgagor, obligations
assumed/to be assumed, by Mortgagor, in relation thereto and default,
if any, committed by Mortgagor in discharge thereof.
(ii) Accordingly, the Mortgagors hereby agrees and gives consentforthe
disclosure ! by the bank of all or any such
a) information and data relating to Mortgagor;
(b) the information or data relating any credit facility availed of/to be
availed by Mortgagor; and
(c) default, if any, committed by Mor tgagor in discharge of
Mortgagors such obligation, as the bank may deem appropriate
and necessary, to disclose and furnish to Credit Information
Bureau (India) Ltd., and any other agency authorized in this
behalf by RBI.
(iii) The Mortgagor declares that the information and data furnished by
Mortgagor to the bank are true and correct.
(iv) The Mortgagor undertakes that:
a) the Credit Information Bureau (India) Ltd. and any other agency
so authorized may use, process the said information and data
disclosed by the bank ; and
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CHAPTER-10
b) the Credit Information Bureau (India) Ltd. and any other agency
so authorized may furnish for consideration, the processed
information and data or products thereof prepared by them, to
banks/financial institutions and other credit guarantees, as may
be specified by the Reserve Bank of India in this behalf.
7. gr= ck"fUfU;tocfUtht btkd rfUgustl uvh W; l fU= }UK Ft;u(Ft;t) b;mbg
cfUtgt NuMy:Jt W; Ft;u(Ft;t) fuUy;;&c=ntustl uvh =ug NuMfUt Cwd;tl gts, vrhgg,
Cth ;:t mCe Fatuytih Y;=Ttht r;Cq; "l htrNgtfuUmt: l n fUh vt;t ni ;tucfUck"rfU;
mvrtgtfUt rJf{g fUhl uytih RmrJf{g-ytdb fUt Wvgtud ;:t/gt rJrl gtusl , cfUfuUr; ck"fUfU;to
fuUW; yrd{b ;:t gt/yg =ug;tytfuUmkck" bntul uJttecfUtgt htrNgt;:t/gt =tJtfuUmbtl wvtr;fU
mbtNtu"l nu;w, fUhl ufUt nfU=th ntudt>
If the Mortgagor fails to pay on demand to the Bank the balance then outstanding
and owing to the Bank or ultimately on the closing of the said cash credit account(s) inclusive
of all interest, costs, charges and expenses thereon and other moneys hereby secured, then
the Bank shall be entitled to cause the mortgaged properties to be sold and to apply and/
or appropriate the sale proceeds thereof in protanto satisfaction of its dues and/or claim of
the Bank in respect of the said advance and/or other liabilities of the Mortgagor to the Bank.
(fU) IIcfUfUtu=ug ;:t cfUtht tt rfUme Ce htrN Yumuyl wf{b byl wgw; ntudt
simurfUcfUmbg-mbg vh yvl umvqKorJJufUmuyr;b gg murl "torh; fUhu
(RmfuUyr;rh;, cfUsimumbg-mbg vh rl "torh; fUhu, Rmu;c ;fU;:t rsmv
batnuWak; Ft;ubsbt hF mfU;t ni)
(a) Any money due and payable to the Bank and received by theBa~k shall
be applied in such order as the Bank in its absolute discretion may from
time to timeconclusively determine (save that the Bank may credit the same
to a suspense account for so long and in such manner as the Bank may
fmm time to time determine).
Wvgwo; fuUvqJtd{n fuUrcl t tt fUe dRohtrN fUt rJrl gtud rl l rtrF; v bntudt&
following manner :
Firstly, towards liquidated damages and further interest (including uncharged
interest) ;
428
CHAPTER-10
ii) r;eg;&, Ctrh; gts fuUr; <
Secondly, towards interest charged;
iii) ;];eg;&tdt; Cth ;:t cfUtht WXtY dY FatuofuUr; ;:t
Thirdly, towards costs, charges and expenses incurred by the Bank; and
Lastly, towards the principal amount due.
(F) IIsc ;fUcfUfUtumkvqKohtrN fUt Cwd;tl l n fUh r=gt st;t ni, stnuJn rvAtt,
J;obl t gt CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, rsmfUt Cw;tl ck"fUfU;totht
rfUgt stl t ni gt rsmfuUrtY ck"fUfU;togntgt yg:t =tge ntumfU;t ni, gt ni
YJkCtune gn bqt htrN fuUv buntugt r;Cqr; fuUv bntu, ck"fUfU;toRm
ct; mumnb; ntudt rfUrfUme Ce mbg cfUtht "trh; gt ck"fUfU;tofuUFt;uvh
r;Cq r; ;:t/gt mCehtrN fUtucu al u;:t htrN fUtutt fUhl ufUt cfUfUtud{ nKtr"fUth
ntudt ;:t/gt mux ytpVUfUt yr"fUth ntudt>WmhtrN gt/;:t mCehtrNgt, r;Cqr;gt
fUtuWbtura; fUhl ufUt Ce cfUfUtuyr"fUth ntudt>begt=e sbt fuUbtbtub
ck"fUfU;tofUturcl t mqra; rfUY cfUfUtusbt fuUvrhvJ ntul uvh WmhtrN fUtu
mbtgturs; fUhl ufUt yr"fUth ntudt>bwfU=bt =tgh fUhl ufuUct=ugt vntugt fUtuRo
gtrgfUfUthoJtRofUhl ufuUct= Ce, cfUfUtuJn htrN mbtgturs; fUhl ufUt yr"fUth
ntudt rsmuJn Wra; mbSudt ytih rJJtmvqJofUytfUrt; fUhudt ;:t stuhtrN Wm
=trgJ fuUrl Jonl fuUrtY ytJgfUntudt>OO
(b) Until payment is made to the Bank of all the amounts, whether past present
or future, actual or contingent, which may be payable by the Mortgagor or
for which the Mortgagor may be or become liable hereunder or otherwise
and whether as principal or surety, the Mortgagor agrees that the bank shall
have a lien and/or right of set off on all securities an/or monies whatsoever
held at any time by the bank on account of or to be credit of the Mortgagor
in or for any account or manner or purpose howsoever. The bank shall be
at liberty to discharge the said obligations or liabilities of the Mortgagor out
of the said securities and/or monies, and in case of term deposits, whether
the same have matured for payment or not, any, may appropriate or realise
them in the manner thought fit by it and without notice to the Mortgagor
(and whether before or after filing suit or taking any legal proceedings). TIle
Bank may set off an amount estimated by it in good faith to be the amount
of that obligation.
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CHAPTER-10
8. cfUfUtugn rl Kog fUhl ufUt vqKoyr"fUth ntudt ;:t gn WmfuUJrJJufUbntudt rfUJn
ck"fUfU;tofUturfUme rJNuMVUmt yJr" gt btimb fuUrtY fUtuRo}UK =tl fUhugt l n ytih gr=
=tl fUhu;turfU;l e bttt bgt Jn cfUfuUvt bY;=Ttht =e dge r;Cqr; fuUntu;unwY Ce fUtuRo
htrN Wl vh cfUtgt hFuy:Jt l n>RmfuUmt: ne cfUfUtuvqKoJrJJufUvh nh mbg gn J;kt;t
ntude ytih RmfuUrtY WmufUtuRofUthK Ce l n c;tl t ntudt rfUJn sc atnuW; l fU= }UK Ft;u
(Ft;t) ytduW"th =ul uck= fUh gt W"th =ul t rcfwUt ne ck= fUh rfUme Ce mbg W; l fU= }UK
Ft;u(Ft;t) vh ck"fUfU;totht ;mbg cfUfUtu=ug mCe "l htrNgtfUtuy=tgde fuUrtY Wmmubtd
fUhu>
That the Bank shall have the absolute right and discretion to decide whether or
not to advance any money to the Mortgagor for any particular crop or period or season and
if so to what extent or allow to remain outstanding any monies even against the security
hereby created in favour of the Bank. Further, the Bank shall be at liberty at anytime at its
sole discretion and without assigning it any reason whatsoever to cease to make any further
advances in the said cash credit account(s) or at all and to recal any time the monies then
due by the Mortgagor to the Bank in the said cash credit account(s).
9. ck"fUfU;toytdugn Ce mkrJ=t fUh;t ni rfUgr= Wvgwo; ck"fUhFe dge mvrtgtfuU
rJf{g ytdb mucfUfuU=tJu;:t y:Jt ck"fUfU;totht cfUfUe =ug htrNgtfUtuy=tgde l n ntu
vt;e ni ;tuck"fUfU;toRmNuMfUt Cwd;tl yvl e rl se ;:t yg mvrtgtmufUhudt ;:t ckfURl
htrNgtfUe Jmqte ck"fUfU;togt WmfuUJtrhNt, rl vt=fUt, NtmfU, r;rl r"gt;:t mbl w=urNr;gtmu
fUhl ufUt nfU=th ntudt>
The Mortgagor further convenants that should the claim and/or dues of the Bank
be not satisfied out of the sale proceeds of the mortgaged properties aforesaid, then the
Mortgagor shall pay the balance for in his personal and other properties and the Bank shall
be entitled to recover the same from the Mortgagor or his heirs, executors, administrators,
representatives and assigns.
10. ck"fUfU;to;:t yg mCe gr;, stuck"rfU; vrhmh gt WmfuUrfUme Ctd bfUtl ql gt
mtrgfUZkd murfUme mv=t gt rn; fUt =tJt fUh;uni, RmfuUct=mbg-mbg vh ;:t nh mbg Rm
r;Cqr; fuUattqhnl ufuU=tihtl yvl uFaomu;:t WmfuUvat;TYume yvuGt fUhl uJttugr; gt
gr;gtfuUFauomumkckr"; vrhmh ;:t WmfuUgufUCtd fUtucun;h ;:t vqKoJv =tl fUhl ufuU
rtY g:tJgfUfUe stl uJtte gt fUe st mfUl uJtte mbwra; yvuGtl wmth cfUfuUttC fuUrtY ;:t
WmfuUttCvgo; Wvgwo; ;hefuUmumCe fUtgofUhdugt rJtuF rl vtr=; fUhdu>
The Mortgagor and all other persons having or lawfully or equitably claiming any
estate or interest in the mortgaged premises or any part thereof shall and will from time to
time and at all times hereafter at their own costs during the continuance of this security
430
CHAPTER-10
and afterwards at the costs of the person or persons requiring the same do and execute all
such acts, deeds and things for further better and more perfectly assuring the mortgaged
premises and every part thereof upto and to the benefit of the Bank in manner aforesaid as
shall or may be reasonably required,
11. ck"fUfU;tocfUfUtu=ug rfUme htrN fuUrJMg bcfUfUe tuFt crngtmu;igth rfUgudgu
;:t tuFtfUth gt rJr"J; tr"f]U; cfUfuUrfUme yg yr"fUthe tht n;tGrh; tuFt-rJJhK fUturcl t
rfUme yg JtWah, =;tJus gt fUtdst; fuUne W; htrN fUtumg;t fuUrl KtogfUbtK fuUv b
JefUth fUhudt>
The Mortgagor shall accept as conclusive proof of the correctness of any sum
claimed to be due from him to the Bank a statement of account made out from the Books
of the Bank signed by the Accountant or any other duly authorised officer of the Bank without
production of any other voucher, documents or paper.
12. gr= ck"fUfU;toRmfuUct= Rmr;Cqr; fuUattqhnl ufuU=tihtl rfUme Ce mbg W;
ck"rfU; vrhmh bfUtuRovrhJ"ol ;:t/gt mw"th fUhtgudt ;tuWmuY;=Ttht =e dge r;Cqr; fuUy;do;
;:t WmfuUCtd fuUv bmbSt stYdt>
If the Mortgagor shall at any time hereafter during the continuance of this security
make any additions and/or improvements in the said mortgaged premises, it shall be covered
by and form part of the security hereby created.
13. Rmr;Cqr; vh, Y;=Ttht r;Cq; rfUme Ce "l htrN fuUrtY, yCe gt RmfuUct= cfU
tht "trh; rfUme yg r;Cqr; gt dthkxe y:Jt RmfUth fUe yg r;Cqr; gt dthkxe fUe rl bwor;,
rJrl bg y:Jt vrhJ;ol mufUtuRor;fqUt CtJ l n v\zudt>
That this security shall not be prejudiced by any ather security or guarantee now
or hereafter held by the Bank for any money hereby secured by or by any release, exchange
or variation of such other security or guarantee.
14. ck"rfU; vrhmh gt WmfuUrfUme Ctd fUtu;mbg J]t Cqrb ysol yr"rl gb y:Jt rfUme
yg yr"rl gb fuUy"el yrso; gt yr"d]rn; fUh rtgustl uvh, g:tr:r; gt yr"d{nK fuUVUtJv
=e stl uJtte mCe bwytJst htrN ck"fU;tofUe ytih mume"ucfUtht tt fUe stYkde ytih Rl htrNgt
fUt Wvgtud ;fUtt, Rl tuFtfUe r;Cqr; vh ;mbg =ug htrN ytih Wmvh tu=TCq; gts ;:t
vrhggtYJkck"fUfU;totht cfUfUtuWvgwo; rfUme Ce Ft;uvh =ug yg htrNgtfuUmbtgtusl fuU
rtY rfUgt stYdt>
In case of acquisitian or requisition of the mortgaged premises or any part thereof
under the Land Acquisitian Act or any other Act for the time being in force all sums of money
awarded as compensation for acquisition or requisition as the case may be, shall be receivable
by the Bank direct on behalf of the Mortgagor and that such money shall be forthwith applied
431
CHAPTER-10
in or towards payment of the money together with interest and casts for the time being
remaining due on the security of these presents and also in payment of all ather moneys in
respect of which the Mortgagor may become indebted to the Bank on any account whatsoever
as aforesaid.
15. mvrt y;hK yr"rl gb, 1881 fUe "tht 79 fuUgtusl t (vh;wrfUme yg gtusl fuU
rtY l n) Y;=Ttht r;Cq; fUe stl uJtte yr"fU;b htrN .................................... hvgurl "torh; fUh
r=gustl ufuUctJsq= Y;=Ttht r;Cq;, cfUvh ck"fUfU;totht yfuUtugt rfUme =qmhugr; gt
gr;gtfuUmt: mkgw; v mugt dthkxe=t;t fuUv bgt yg rfUme nirmg; mugt rfUme Ce
fUth mu=ug ntuawfUe gt =ug ntul uJtte, vrhvJ, gt yvrhvJ, mN;ogt ytfUrbfU, J;obtl gt CtJe
mCe "l htrNgt, Ft;t, }UKt, =ug;tyt;:t rfUme Ce Ft;ubck"fUfU;tovh cfUtht rfUgugumCe
=tJt, btdt, vrhggt, Ctht;:t FatufuUrtY cfUfUtuY;=Ttht tt yr"fUthtfuUyg"el (mb:ofU
y:Jt yg:t fUth fUe) r;Cqr; fuUv byrl Jtgo;&Wvt" ntude>
Notwithstanding the maximum amount intended to be hereby secured as far the
purpose of section 79 of the Transfer of Property Act, 1882 (but for another purposes) has
been fixed at Rs. ............................... the security hereby created shall subject to the rights
of the Bank hereunder be available at the Bank as security (collateral or otherwise) for all
sums of money accounts debts liabilities present or future conditional or contingent whether
matured or not due or not due or to become due to the Mortgagor by the Bank whether
singly or jointly with another or others or as guarantor or any other capacity or otherwise
how occur and for all claims demands costs charges and expenses of the Bank against the
Mortgagor on an account whatsoever.
16. Rmck"fU-rJtuF fuUy"el cfUtht ck"fUfU;tofUtu;tbet fUhl ufuUrtY yvurG; fUtuRo
l turxmgt btd (rzbtz) gr= cfUtht ck"fUfU;tofUtu;trbt fUh =e st;e ni gt cfUbck"fUfU;to
tht r=gudguv;uvh, atnugn v;t Wmmbg Jt;rJfUhnt gt l n, Cus =e st;e ni gt Rmu
ck"rfU; vrhmh fuUmnsdtuah :tl vh ravfUt r=gt st;t ni ;tuWmuck"fUfU;tofUturJr"J;T;trbt
rfUgt dgt btl t stYdt>ck"fUfU;tofUtuCust dgt Yumt l turxm, rl r=o v;uvh ztfUvnwal ufuUmtbtg
mbg bvnwa dgt btl rtgt stYdt Ctune gn ck"fUfU;tofUtuJ;w;&;trbt ntuvt;t ni gt l n>
Any notice or demand by the Bank under this Deed of Mortgage to the Mortgagor
shall be deemed to have been duly delivered to the Mortgagor if delivered to him or if posted
at the address furnished by the Mortgagor to the Bank whether such address is then the
actual address or not or affixed to any conspicuous part of the mortgaged property. Such
notice if posed shall be deemed to have been delivered to the Mortgagor at the time it would
reach the addressee in the ordinary course of post whether it is actually delivered or not.
17. cfUtht ck"fUfU;tomuY;=Ttht r;Cq; htrNgtfUt Cwd;tl tt fUhl uby:Jt cfUtht
ck"fUfU;tofUtur=gudgurfUme mbg gt Rl tuFtfuUWvc"tbrfUgudgurfUme vrhJ;ol fUt yl wvttl
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CHAPTER-10
fUhtl ubWvuGt ch;l ugt J;ol fUhl ubvrhKtbJv fUtl ql gt mtgt fuUr;Cqt rl gb ntul ufuU
ctJsq=, RmfuUvqJoWrrF; ck"fUfU;tofUtumkrJ=tyt;:t WmfuUVUtJv ntul uJtte ck"fUfU;tofUe
attq=ug;t bfUtuRor;fqUt CtJ l n v\zudt>
Any neglect or forbearance on the part of the Bank to require or enforce payment
of the monies hereby secured or any time which may be given by the Bank to the Mortgagor
or any variation which may be made in the provision of these presents, shall not in any way
prejudice or affect the convenants of the Mortgagor hereinbefore contained or the continuing
liability of the Mortgagor by virtue hereof, and rule of law or equity to the contrary
notwithstanding.
ylwmqae&
SCHEDULE :
(gntkck"rfU; Cqrb fuUmvqKogtuhur=gustl uatrnY>gr=f]UrMWvfUhK, bNel , vrvkd mux ytr=Ce
ck"rfU; rfUgudgun ;tuWl fuUgtuhuCe r=gustl uatrnY)
(Full particulars of the land mortgaged should be given here. If agricultural implements
machinery pumping sets etc. are also mortgaged their particulars should also be given here.)
RmfuUmtg bRl =;tJustvh ck"fUfU;tol uWvrhrtrF; r=l tkfU, btn ;:t JMobyvl un;tGh
rfUgu>
IN WitNESS WHEREOF the Mortgagor has set his land to these present the day month
and year above written
SIGNED AND DELIVERED by the Mortgagor at in the presence:
1. .........................................................................
2. .........................................................................
fUe Wvr:r; bck"fUfU;tol u......................................................(:tl ) bRl =;tJustvh n;tGh
rfUguytih WncfUfUtumwvw=orfUgt>
ck"fUfU;tofuUn;tGh
(To be signed by Mortgagor)
(RmfuUrtY fUb-mu-fUb 2 dJtn ntul uatrngu)
(N.B. There should be at least 2 witnesses)
l tux &Rm=;tJus fuUWvgwo; rn=e yl wJt=brfUme N=gt Jtg fuUy:ofuUcthubrJJt=vi=t
ntul uvh gt Rmmkck" brfUme Ce fUth fUe rJath-rJrCt;t fUe r:r; bRmfUt ykd{use vtX
ne fUtl ql fUe =]r mutbtrK; ytih tr"f]U; btl t stYdt>
433
CHAPTER-10
A-103A
UCO BANK
10, B.T.M. Sarani, Kolkata-700 001
THIS DEED OF SIMPLE MORTGAGE is made this .........................................................
day of ........................ 20 ......... BETWEEN SRI .......................................................................
son of .......................................................................................... aged .................. years by
occupation ................................................ residing at Village .....................................................
P.S. .................................... District .................................... hereinafter called the Mortgagor
(which expression shall unless excluded by or repugnant to the subject or context include
his heirs, executors, administrators, representatives assigns and transferees-in-interest) of the
FIRST PART AND UCO BANK, a Corporate Body constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act 1970 and having its Head Office at 10, B.T.M.
Sarani, Kolkata 700 001 and also a branch at ......................................................... hereinafter
called the Bank (which expression shall unless excluded by or repugnant to the subject or
context include its successors, transferees-in-interest and assigns) of the Other Part :
WHEREAS:
1. The Mortgagor is absolutely seized and possessed of or otherwise well and
sufficiently entitled to ALL THAT the land hereditaments and premises situated at
Village ........................... Tehsil .............................. District .......................................... fully
described in the Schedule hereunder written free from all encumbrances and charges thereon.
2. The Mortgagor who is an agriculturist applied to the Bank for financial assistance
for his agricultural operation.
3. The Bank has at the request of the Mortgagor allowed/agreed to allow to the
Mortgagor cash credit facilities from time to time up to the limit of Rs. .............................. in
a cash credit account or accounts opened or to be opened by the Bank in its books at
........................................................ Branch in the name of the Mortgagor on the terms and
conditions contained herein and on the Mortgagor agreeing to secure all Monies which now
are or hereafter shall become due and owing on balance of such account(s) or in respect
of advances now or hereafter to be made or otherwise from the Mortgagor to the Bank with
interest costs, charges and expenses thereon by the Mortgage of the said land hereditaments
and premises and the crops existing thereon and/or to be raised by the Mortgagor from time
to time whether already sown or to be sown in future or standing crops or cut or stacked in
the said land or stored in the Mortgagors godowns or premises or wherever else held on
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CHAPTER-10
account of or on behalf of the Mortgagor, or under the Mortgagors control or disposition
and also agricultural implements, machinery, pumping set, articles of agricultural inputs etc.
as hereinafter contained.
NOW THIS DEED WITNESSETH as follows:
1. In pursuance of the said agreement and in consideration of the premises the
Mortgagor hereby covenants, with the Bank that he the Mortgagor shall on demand pay to
the Bank the sum which shall then be due and owing to the Bank on the balance of the
said cash credit account(s) of the Mortgagor (including interest and other usual charges) and
such other sum or sums of money as the Mortgagor shall then be indebted in or liable to
pay to the Bank upon or in respect of the said advances.
2. The Mortgagor shall pay interest at the rate of .................. % per annum over
the Reserve Bank of India rate subject to a minimum of ...............% per annum with monthly
rests to the Bank on the outstandings in the said cash credit account(s), provided that the
Bank shall at any time or from time to time be entitled to change the rate of interest and
notify to the Mortgagor of such change and this deed shall be construed as if such revised
rate of interest was always mentioned in these presents and agreed to be paid by the
Mortgagor and hereby secured.
3. Interest payable at the rate aforesaid shall be calculated and charged on the daily
balance in the Banks favour due upon said cash credit account(s) until the same is fully
liquidated.
4. The Mortgagor shall pay all costs (including as between attorney and client)
charges and expenses actually paid or payable by the Bank in relation to the security including
those of and incidental to any proceedings which may be had and which the Bank shall
incur or be put to or be liable to pay in or about and incidental to the protection of the
security and for procuring or obtaining or attempting to procure or obtain payment or recovery
of all or any of the moneys hereby secured or part thereof and all other costs whatsoever
including taking of opinion and correspondence or otherwise which the Bank may incur until
the mortgaged premises are reconveyed (hereinafter collectively referred to as all costs
charges and expenses).
5. In pursuance of the said agreement and in consideration of the premises, the
Mortgagor hereby mortgages to the Bank by way of Simple Mortgage ALL THAT the said
land, hereditaments and premises more particularly described and referred to in the Schedule
hereunder written together with all houses, buildings, structureserections now erected or
hereafter to be erected or standing thereon or any part thereof together with the whole of
the crops existing or to be raised from time to time on the said land whether already sown
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CHAPTER-10
or to be sown in future or standing crop or cut and stacked on the said land or stored at
the Mortgagors godown or premises wherever else they may be or which may be held on
account or on behalf of the Mortgagor and also agricultural implements and machinery,
electrical pumping sets and oil-engine, stocks of agricultural inputs viz. seeds, fertilizers,
manure, pesticides, insecticides etc. (present as well as future) purchased and/or belonging
to the Mortgagor and which are being/will be utilised/used for agricultural production on the
Mortgagors lands as well as gardens, trees, shrubs, ways, passages, drains, liberties,
easements, privileges and appurtenances whatsoever to the said land, hereditaments and
premises belonging or in anywise appertaining thereto or usually held or occupied or enjoyed
therewith or reputed to belong or be appurtenant thereto AND all the legal incidents thereof
together with all deeds, pattahs, muniments, writing and other evidences of title relating thereto
which now are or hereafter shall or maybe in the custody, power or in possession of the
Mortgagor AND ALL the estate, right, title, interest, claim and demand whatsoever of the
Mortgagor or any other person or persons claiming through him and every part thereof by
way of security for the due repayment on demand of the balance due to the Bank at any
time or ultimately on the closing of the said cash credit account(s) and also as security for
payment of all other moneys which shall become due and owing from the Mortgagor to the
Bank on account and in respect of the said advances made and/or to be made and such
other sum or sums of money as the Mortgagor shall then be indebted or liable to pay to
the Bank upon or in respect of any other loans, credits or advances made or for the
accommodation or at the request of the Mortgagor or in respect of any other matter whether
the Mortgagor shall be so indebted or liable solely or jointly with any person or persons or
company whether as principal or as surety. The expression the balance due to the Bank
used herein shall be taken to include the principal moneys from time to time due on the
said Cash Credit Account(s) and also all interest thereon calculated from day to day at the
rate hereinafter mentioned and the amount of all charges and expenses which the Bank may
have paid or incurred in any way in connection with the mortgage properties or the sale or
disposal thereof.
6. Mortgagor hereby further covenants with the Bank as follows :
(i) That the sums advanced and/or to be advanced by the Bank shall be used
by the Mortgagor for the purpose of his agricultural operations and for no
other purpose whatsoever.
(ii) That the Bank shall not be required to make advances or continue advances
in the said cash credit account(s) otherwise than at the Banks discretion.
(iii) That the Mortgagor shall keep at his risk and expenses, the crop grown or
436
CHAPTER-10
to be grown or the produce and the agricultural implements, machinery,
electrical pumping sets, oil engine, stocks of agricultural inputs in good state
and condition and protected against loss, deterioration and damage.
(iv) That the Mortgagor shall not cut the crops on the said land without the
express written permission of the Bank during the subsistence of the loan
and the crop so cut with the consent of the bank shall be delivered
immediately on pledge to the Bank or assigns and the Mortgagor shall not
be entitled to the custody of the out crops except with the permission of
the Bank and only for the specific purpose of further processing the produce
or sale.
(v) That the Bank, its servants, agents and nominees shall be entitled at all
times without notice to the Mortgagor or guarantor to enter the above said
land or the premises where the produce raised on the said land are stored
and inspect and check the same and also on the default of the Mortgagor
in payment of any money hereby secured or the performance of any
obligation of the Mortgagor to the Bank or occurrence of the circumstances,
in the opinion of the Bank endangering the security, to take possession, cut
or remove the crop or produce or sell by public auction or private contract
without being bound to exercise any of these powers or being liable for any
loss in the exercise thereof and without prejudice to the banks remedies of
suit or otherwise.
(vi) That nothing herein shall prejudice any rights of the Bank in respect of any
present or future security, guarantee obligation or decree for any
indebtedness or liability of the Mortgagor to the Bank.
(vii) The Mortgagor declares and undertake that the present or future crops or
produce grown on the said land and the said land shall be kept free from
any prior or future charge or encumbrance and be the absolute and
disposable property of the Mortgagor.
(viii) That the Mortgagor declares that the said land is the absolute property of
the Mortgagor and the Mortgagor has full and exclusive rights to the
enjoyment of the benefits arising from the said land whether as the absolute
owner of the land or otherwise.
(ix) That the Mortgagor shall pay all revenue, cesses, charges etc. in relation
to the said land or as to the user thereof and always keep the benefits
arising out of the said land free from all charges, statutory or otherwise.
437
CHAPTER-10
(x) That the Bank shall be at liberty (without being bound to do so) to pay all
revenue, taxes, cesses and other such public or statutory demands and
charges by debiting the same to the said cash credit account(s) of the
Mortgagor if the Mortgagor fails to pay the same within the time, and
payment so made shall be secured hereby and deemed as an advance in
the said credit account(s).
(xi) The Mortgagor shall, during the continuance of the security, keep all title
deeds of his properties hereby mortgaged deposited with the Bank. The
Mortgagor shall, in no case deliver the said documents of title to any other
person or deal with them in any manner prejudicial to the interest of the
Bank during the continuance of this Security-
(xii) The Bank shall not be answerable or accountable for any involuntary losses
which may happen in or about the exercise or execution of any of the power
or trusts which may be vested in the Bank by virtue of these presents or
by any legislative enactment.
(xiii) That this Deed of Mortgage is to operate as security for the balance from
time to time due to the Bank and also for the ultimate balance to become
due on the said Cash Credit Account(s) and the said account(s) is/are not
to be considered to be closed for the purpose of this security and this
security is not to be considered exhausted by reason of the said Cash Credit
Account(s) being brought to credit at any time or from time to time or of
its/ their being drawn upon to the full extent of the said sum of
Rs. .................................... if afterwards reopened by a payment to credit.
7. If the Mortgagor fails to pay on demand to the Bank the balance then outstanding
and owing to the Bank or ultimately on the closing of the said cash credit account(s) Inclusive
of all interest, costs, charges and expenses thereon and other moneys hereby secured, then
the Bank shall be entitled to cause the mortgaged properties to be sold and to apply and/
or appropriate the sale proceeds thereof in protanto satisfaction if its dues and/or claim of
the Bank in respect of the said advance and/or other liabilities of the mortgagor to the Bank.
8. That the Bank shall have the absolute right and discretion to decide whether or
not to advance any money to the Mortgagor of any particular crop or period or season and
if so to what extent or allow to remain outstanding any monies even against security hereby
created in favour of the Bank. Further the Bank shall be at liberty at any time at its sole
discretion and without assigning any reason whatsoever to cease to make any further
advances in the said cash credit account(s) or at all and to recall at any time the monies
then due by the Mortgagor to the Bank in the said cash credit account(s).
438
CHAPTER-10
9. The Mortgagor further covenants that should the claim and/or dues of the Bank
be not satisfied out of the sale proceeds of the mortgaged properties aforesaid, then the
Mortgagor shall pay the balance from his personal and other properties and the Bank shall
be entitled to recover the same from the Mortgagor or his heirs, executors, administrators,
representatives and assigns.
10. The Mortgagor and all other persons having or lawfully or equitably claiming any
estate or interest in the mortgaged premises or any part thereof shall and will from time to
time and at all times hereafter at their own costs during the continuance of this security
and afterwards at the costs of the person or persons requiring the same do and execute all
such acts, deeds and things for further better and more perfectly assuring the mortgaged
premises and every part thereof upto and to the benefit of the Bank in manner aforesaid as
shall or maybe reasonably required.
11. The Mortgagor shall accept as conclusive proof of the correctness of any sum
claimed to be due from him to the Bank a statement of account made out from the Books
of the Bank signed by the Accountant or any other duly authorised officer of the Bank without
production of any other voucher, documents or paper.
12. If the Mortgagor shall at any time hereafter during the continuance of this security
make any additions and/or improvements in the said mortgaged premises, it shall be covered
by and form part of the security hereby created.
13. That this security shall not be prejudiced by any other security or guarantee now
or hereafter held by the Bank for any money hereby secured by or by any release, exchange
or variation of such other security or guarantee.
14. In case of acquisition or requisition ot the mortgaged premises or any part thereof
under the land Acquisition Act or any other Act for the time being in force all sums of money
awarded as compensation for acquisition or requisition, as the case may be, shall be
receivable by the Bank direct on behalf of the Mortgagor and that such money shall be
forthwith applied in or towards payment of the money together with interest and costs for
the time being remaining due on the security of these presents and also in payment of all
other moneys in respect of which the Mortgagor may become indebted to the Bank on any
account whatsoever as aforesaid.
15. Notwithstanding the maximum amount intended to be hereby secured as for the
purpose of section 79 of the Transfer of Property Act, 1882 (but for no other purposes) has
been fixed at Rs. .......................................... the security hereby created shall subject to the
rights of the Bank hereunder, be available to the Bank as security (collateral or otherwise)
For all sums of money accounts debts liabilities present or future conditional or contingent
439
CHAPTER-10
whether matured or not due or to become due to the Mortgagor by the Bank whether singly
or jointly with another or others or as guarantor or any other capacity or otherwise howsoever
and for all claims demands costs charges and expenses of the Bank against the Mortgagor
on any account whatsoever.
16. Any notice or demand by the Bank under this Deed of Mortgage to the Mortgagor
shall be deemed to have been duly delivered to the Mortgagor if delivered to him or if posted
at the address furnished by the Mortgagor to the Bank whether such address is then the
actual address or not or affixed to any conspicuous part of the mortgaged property. Such
notice if posted shall be deemed to have been delivered to the Mortgagor at the time it
would reach the addressee in the ordinary course of post whether it is actually delivered or
not.
17. Any neglect or forbearance on the part of the Bank to require or enforce payment
of the monies hereby secured or any time which may be given by the Bank to the Mortgagor
or any variation which may be made in the provision of these presents, shall not in any way
prejudice or affect the covenants of the Mortgagor hereinbefore contained or the continuing
liability of the Mortgagor by virtue hereof, and rule of law or equity to the contrary
notwithstanding.
SCHEDULE:
(Full particulars of the land mortgaged should be given here, if agricultural implements,
machinery, pumping sets etc. are also mortgaged their particulars should also be given here)
IN WITNESS WHEREOF the Mortgagor has set his land to these present the day month
and year above written.
SIGNED AND DELIVERED by the Mortgagor at in the presence of :
1. ........................................................
2. ........................................................
(N.B. : There should be at least 2 witnesses)
.......................................................
(To be signed by Mortgagor)
440
CHAPTER-10
Rmuyl wtbtrl ; l ne rfUgt stY) Y/A-104 (mkNtur";/Revised)
(NOT TO BE ATTESTED)
xtv
STAMP
(vkv-mux fUtu=]rck"fUhFl ufUt VUtbo)
(FORM OF HYPOTHECATION OF PUMPSET)
muJt bu, ;theF/Date...............20
TO
gqfUtuckifUUCO BANK
.............................................
.............................................
.............................................
rg bntu=gdK
Dear Sirs,
bwSu/nbu
...............................
bufUfUt
...........................
yJ Nr; fUt YfUrJ w;/zest vkv-mux
YJkWmfuUmntgfUWvfUhK/
.......................................
bufUfUt uuxh YJkWmfuUmntgfUWvfUhK/rz[rtkd
gqrl x, rsmfUt rJ;]; rJJhK RmfuUl eau=e dRoyl wmqae fUbur=gt dgt ni, Fhe=l ufuUrtY mGb
cl tl unu;wbwSu/ nbu
...................
h0 fUt (rsmuRmbuRmfUt vnat;TIIbqt "l OOfUnt dgt ni) }UK
=tl fUhl ufuUrtY ytvfuUtht mnb; ntul ufuUr;VUtJv bnbuRmfuUtht mkgwU;&YJkv]:fU;,
ytvfUtu;:t ytvfuUvG bu
...................................
bufUfUt W;
........................
yJ Nr; fUt
rJ w;/zest Rksl vkv-mux YJkWmfuUmntgfUWvfUhK/
....................
bufUfUt x[ixh YJkWmfuUmntgfU
WvfUhK/rz[rtkd gqrl x, rsmfUt rJ;]; rJJhK RmfuUl eau=e dRoyl wmqme IfUOfuUr=gt dgt ni (rsnu
RmbuRmfuUvat;TmkrGt;t fUe =]r mumtbqrnfUv muII=]rck"fUhFudY bttOOfUnt dgt ni)
=]rck"fUhF;t nqi/hF;uni>=]rck"fUhFudY btt bwSu/nbuytvfuUtht r=Y dY }UK fuUy"el ytih
WmfUe ctc; ;;bg cfUtgt bqt "l gt WmfuUNuM;:t RmbRmfuUvat;TWvckr"; =h vh gts
ytih Rmr;Cqr; fuUvrhhGh, r;hGt ytih vqKo;t fuUrtY gt WmfUe gr;; gt Jt;rJfUJmqte fuU
rtY ;:t ytvfuUcfUtY fUe Jmqte fuUrtY ytvfuUtht Wvd; mCe ttd;, Cth YJkFaofUe btkd
fUhl uvh rfUme mbg
.........................
bubuhu/nbthutht mgfUawfUti;e nu;q;:t ytvfuUr; buhe/nbthe
rfUme Ce fUth fUe Yume mCe J;obtl YJkCtJe }UKd{;;t YJk=ug;t fuU, atnuJuyfuUtune gt
mkgw;;&, t:rbfUgt mkvtrNJofUv bumCe mckr"; gts, Cth, ttd; YJkFaoWvra; nwY ntugt
ntuhnuntumgTCwd;t; nu;wCe :b Cth fuUv bur;Cqr; fUe ;hn =]rck"fUhFust;un>
441
CHAPTER-10
In consideration of your agreeing to advance to me/us a loan of Rs. .............................
(hereinafter referred to as the Principal Amount) to enable me/us to purchase herewith
a............... H. P. Electrical/Diesel Pumpset of........................................ make together with
accessories thereto/tractor of.............................. make together with accessories/drilling unit
more particularly described in Schedule A hereunder written. I/We jointly and severally
hereby hypothecate to you and in your favour the said........................ H. P. Electrical/Diesel
Engine Pumpset of.......................... make together with accessories thereto/tractor
of..................... make together with accessories/drilling unit more particularly described in
Schedule A hereunder written (hereinafter for brevitys sake collectively referred to as the
hypothecated goods). The hypothecated goods are hypothecated as security by way of first
charge for due repayment by me/us of...................... to you at any time on demand of the
principal amount or the balance thereof for the time being outstanding under and in re-
spect of your said loan to me/us with interest at the rate hereinafter provided and all costs,
charges and expenses incurred by you for the preservation, defence and perfection of this
security or for attempted or actual realisation thereof and for recovery of your dues AND
ALSO for due repayment of all my/our present and future indebtedness and liabilities to
you of any kind in any manner whether solely or jointly, primary or collateral, accrued or
accruing with all relative interests, charges, costs and expenses.
2. b/nb RmfuUtht fUhth YJkJal ck" fUh;t nqi/fUml un rfUb/nb =]rc"kfUhFudY btt vh
II
..........................
ckifUfuUvG b=]rck"fUhFt dgtOON=tufUt ctuzogt vxTx tdtfUh gt yg
rfUme Yumuv gt her; musimt ytv, ytvfuUyr"fUthe, muJfUytih Ysx mbg-mbg vh rl =uoN =u,
RmfuUy"el ytvfuUvG b=]rck"l Cth m]rs; fUhl ufuUcthubmJomt"thK fUtumqra; fUkdt/fUhdu>
I/We hereby agree and undertake to notice to all members of the public of and about
the hypothecation charge created in your favour hereunder by placing board or a plate on
the hypothecated goods with the words HYPOTHECATED TO................ BANK or in any
other mode or manner which you, your officers, servants and agents may direct from time
to time.
3. b /nb Rmfu Utht fUhth YJkvw r fUh;t nq /fUh;un rfU;mbg =u g W;
................................
0
fuU}UK gt WmfuUNuM vh Cth;eg rhsJocfUfUe =h mu
......................
% r;cMoyr"fUvh;q
gql ;b
...............
%r;cMofUe =h vh gts tdudt ytih Jn gufUJMo30 rm;kch YJk31 btao
fUtuy"oJtrMofUgts mrn; =ug ntudt ;:t Yumt :b Cqd;tl 20
............
fuU
.................
fuU
...............
r=l fUturfUgt stuYdt<vkh;wrVUh Ce ytvfuUYfUbtt rJJufUtr"fUth fuUy"el Wvgow; Jts fUe =h b
mkNtu"l gt J]r bwSu/nbl turxm=ufUh gt mbg-mbg vh sthe rfUY dY Cth;eg rhsJocfUfuUrl =uoNt
fuUyl wmth fUe st mfU;e ni ;:t b/nb RmfuUtht gts-=h brfUY dY YumumkNtu"l YJkJ]r mu
mnb; nq/n ytih RmfUhth mugn y:otdtgt stYdt btl tuYumumkNtur"; gt Jr"o; gts-=h fUt
442
CHAPTER-10
Wj uF RmbrfUgt dgt :t ytih b/nb Rl fUt Cwd;tl fUhl ufuUrtY mnb; :t/:u;:t RmfuUtht gu
mwhrG; n>
I/We hereby agree and confirm that the said loan of Rs. ........................ or the balance
thereof due for the time being shall carry interest at the rate of.................... % over the
Reserve Bank rate with a minimum of.................... % per auumn and shall be payable with
half-yearly interest on the 30th September and 31st March each year, the first of such
payments to be made on the................ day of............ 20........, provided however that the
above rate of interest may be revised or increased by you either in your sole discretion of
which notice shall be given me/us or in accordance with the directives of Reserve Bank of
India issued from time to time to and I/We hereby agree to such revision and increase in
the rate of interest and this Agreement shall be construed as if such revised or increased
rate of interest were mentioned herein and agreed to be paid by me/us and are hereby
secured.
4. b/nb fUhth YJkvwr fUh;t nq/fUh;unpi rfUbtkd rfUY stl uvh
................................................
0 fUt W; }UK Wvgwo; gts mrn;
..............................
r:; ytvfUe NtFt bbhu/nbthutht
mkgw;;&ytih v]:fU;&=ug ntudt>
I/We agree and confirm that the said loan of Rs. ................... shall be repayable by
me/us jointly and severally on demand at your branch situated at..................... with interest
as aforesaid.
5. b/nb RmfuUtht fUhth, vwr YJkJal ck" fUh;t nq/fUh;un rfUsc ;fUbuhu/nbthugt nb
bmurfUme YfUfuUvtmytvfUt fUtuRo"l cfUtgt hn;t n ;c ;fUb/nb gt nb bmufUtuRoCe
ytvfuU, ytvfuUyr"fUtrhgt, muJfUtYJkYsxttht bwSu/nbgt nb bmurfUme YfUfUtumbg-mbg vh
r=Y dY ytih sthe rfUY dY rfUn yl w=uNtufuUrJvhe; ytih/gt yr;f{bK b=]rck"fUhFudY btt
fUe l ;turcf{e fUkdt/fUhdu, l Wl fUt rl vxtht fUkdt/fUhdu, l Wnyvl umuytd fUkdt/fUhdu, l
WnCtrh; fUkdt/fUhdu, l rJtkdbd{; fUkdt/fUhdu, l nxtQkdt/nxtYkduytih l ne Wnnxtl ufUe
yl wbr; =qkdt/=du>
I/We hereby agree, confirm and undertake that so long any moneys remain due by
me/us or any one of us to you, I/We or any of us shall not sell or deal with or part with
the hypothecated goods, charge or encumber the same nor remove nor permit the removal
of the hypothecated goods contrary to and/or in violation of any of the instructions given
and issued by you, your officers, servants and agents to me/us or to any one of us from
time to time.
443
CHAPTER-10
6. b/nb fUhth fUh;t nq/fUh;un rfUb/nb rfUme Yume :tJh mkvr; fUe ctc; mCe rfUhtgt,
hux, fUh, WvfUh, rl "tohK ytih rl dob fUt Cwd;tl fUkdt/fUhdursmbgt rsmvh =]rck"rfU; btt hFu
stYk, yl whrG; rfY stYkYJkv\zuhn;:t Yume mkvr; fUtuytd muntul uJtte ntrl gt Gr; fuUrJh
cebtf]U; fUhtfUh hFqkdt/hFduytih Yume yg sturFb fuUrJh Ce cebt fUhtQkdt/fUhtYkdusime ytv
yvuGt fUh;:t WmfUe ctc; cebt vtrtme YJkcebt hme=, sc Ce yvurG; ntu, ytvfuUvtkm;w;
fUkdt/fUhdu>
I/We agreed to pay all rents, rates, taxes, cesses, assessments and outgoings in re-
spect of any immovable property in or on which the hypothecated goods may be kept,
maintained, lying upon and shall keep such property insured against loss or damage by
fire and shall insure against such other risks as you may require and shall produce the
Policies of Insurance and premium receipts in respect thereof to you whenever required.
7. b/nb fUhth YJkvwr fUh;t nq/fUh;un rfUb/nb Yume sturFb, Yume htrN ytih Yume yJr"
fuUrtY YJkYumuv b;:t Yume cebt fUvl e fuUvtmytvfuUYJkbuhu/nbthumkgw; l tb b=]rck"fU
hFudY btt fUt cebt fUhtQkdt/fUhtYkduYJkWncebtf]U; hFqkdt/hFdusime ytv yvuGt fUhytih
yl wbtur=; fUhytih ytvfUtumgfTUv mumbl w=urN; fUh cebt vtrtrmgtkytvfUtumtiv =qkdt/=duytih
Yumucebt fUtur;Cqr; fuUsthe hnl ufuU=tihtl nbuNt attqntt; bcl tY hFqkdt/hFdu;:t l JefUhK
hme=ytvfUtumtiv =qkdt/=du>Rmbgr;f{b ntul uvh ytv Yumucebt fUtuCtJe fUh mfU;un gt Wl fUt
l JefUhK fUht mfU;un vh ytv Yumt fUhl ufuUrtY ctg l n n ytih Yume =Nt bytvfuUtht
Cwd;tl rfUY dY rfUme erbgb YJkWvd; rfUY dY rfUme ttd;, Cth ;:t FaofUe btkd rfUY stl u
vh b/nb ;fUtt Wl fUe awfUti;e fUkdt/fUhduytih JuawfUti;e ntul u;fUWvgwo; =h vh gts mrn;
=]rck"fUhFudY btt vh Cth cl uhndu>Yumucebt fuUy"el tt mCe htrN fUt Wvgtusl RmfuU
y"el ;mbg ytvfUtu=ug htrN fuUvrhmbtvl bgt fuUrtY rfUgt stYdt>
I/We agree and confirm that I/We shall insure and keep the hypothecated goods in-
sured against such risks, for such amounts and periods and in such form and with such
Insurance Company as you shall from time to time require and approve in the joint means
of yourselves and myself/ourselves AND shall deliver to you the policies of Insurance duly
assigned to you AND shall keep on foot and maintain such insurance throughout the con-
tinuance of the security and deliver to you the renewal receipts. In default you may but
shall not be bound to effect or renew such insurance. In which event any premium paid by
you and any costs, charges and expenses incurred by you shall be repaid by me/us on
demand forthwith AND shall until repayment with interest at the rate aforesaid be a charge
on the hypothecated goods. All sums received under such insurance shall be applied in or
towards liquidation of the amount for the time being due to you hereunder.
8. b/nb RmfuUtht fUhth fUh;t nq/fUh;un rfUb/nb yvl e mCe ytr;gtYJk=]rck"fUhFu
444
CHAPTER-10
dY btt fUt vqKorJJhK ytvfUtu=qkdt/=duytih ytvfUtu, ytvfuUyr"fUtrhgt, muJfUtYJkYsxtfUtu
=]rck"fUhFudY btt ;:t Wl mumkckr"; yvl umCe yrCtuFtfUe stka fUhl ufUe yl wbr; =qkdt/=du>
ytvfuUtht Wvd; rfUY dY YJkYume stka fuUyl wMkde mCe ttd;, Cth YJkFaofUe btkd rfUY stl u
vh Wl fUt Cwd;tl ;fUtt buhu/nbthutht ytvfUturfUgt stYdt ytih sc;fUWl fUt Cwd;tl l ne rfUgt
stYdt ;c;fUJu=]rck"fUhFudY btt vh Wvgwo; =h vh gts mrn; Cth cl uhndu>
I/We hereby agree to give full particulars to you of all my/our assets and of the
Hypothecated goods and shall at all times allow you, your officers, servants and agents
inspection of hypothecated goods and of all my/our records in reference thereof. All costs,
charges and expenses incurred by you of and incidental to such inspection shall be paid
by me/us to you forthwith on demand and until payment shall with interest at the rate
aforesaid be a charge on the hypothecated goods.
9. b/nb RmfuUtht fUhth YJkvwr fUh;t nq/fUh;un rfUytvfUtu, ytvfuUyr"fUtrhgt, muJfUtYJk
YsxtfUtuWmCqrb gt vrhmh bJuN fUhl ufUt rJ;]; yr"fUth YJkvqKotr"fUth ntudt rsmvh
=]rck"fUhFudY btt buhu/nbthugt nb bmurfUme YfUgt nbthumuJfUtgt YsxtbmurfUme YfU
tht rfUme fUth fUe ct"t gt ytvrt rfUY rcl t hFust;un, yl whrG; rfUY st;un gt v\zunwY n
;:t b/nb RmfuUtht ytdufUhth YJkvwr fUh;t nq/fUh;un rfUb/nb ytvfUtu, ytvfuUyr"fUtrhgtk,
muJfUtYJkYsxtfUe Wvgwo; gtusl fuUrtY ytih =]rck"fUhFudY btt ytih/gt Wl mumkckr";
yrCtuFtfUe stka fuUrtY ytih/gt Rm=]rck"l -vt fuUy;do; ytl uJtturfUme yg gtusl fuU
rtY gt yg:t mc ytih nh mbg Yume Cqrb gt vrhmh vh stl unu;wmb; YJkvqKomwrJ"t YJk
mnqrtg; =tl , bksqh fUkdt/fUhdu;:t Wl fuUrtY mnbr; =qkdt/=du>
I/We hereby agree and confirm that you, your officers, servants and agents shall have
full right and complete authority to enter upon the lands or premises on which the
hypothecated goods are kept, maintained or lying on without any hindrance or objection of
whatsoever nature from me/us or from any one of us or from any one of our servants or
agents and I/We hereby further agree and confirm to give, grant and accord all and com-
plete facilities and conveniences to you, your officers, servants and agents for having an
access at all and every times to any such lands or premises for the purpose aforesaid and
for inspection of the hypothecated goods and/or of the records in reference thereof and/or
for any of the other purpose covered by this letter of hypothecation or otherwise.
10. b/nb RmfuUtht ytdufUhth, vwr YJkJal ck" fUh;t nq/fUh;un rfUgr= b/nb btkd rfUY
stl uvh rfUme Yumu"l fuUCwd;tl baqfUt fUh;t nq/fUh;un rsmfUt Cwd;tl RmfuUy"el buhu/nbthu
tht rfUgt stl t :t gt Rmbyk;rJo rfUme fUhth fUtuCkd fUh;t nq/fUh;un gt fUtuRoYume vrhr:r;
Wvt ntu;e n stuytvfuUYfUbtt rl Kog fuUyl wmth Rm=]rck"l -vt tht m]rs; =]rck"l r;Cqr; vh
r;fqUt CtJ ztt;e n gt WmumkfUx bztt;e n gt Wmvh r;fqUt CtJ v\zl ugt WmumkfUx
445
CHAPTER-10
bzttl ufUe ytNkfUt ni gt buhe/nbthe rfUne mkvrt gt ytr;ytfuUrJhtu" fUtuRofUhgbTgt fwUfUeo
W=Td]ne; gt Jr;o; ntu;e ni gt gr= fUtuRogr; bwSu/nbgt nb bmurfUme YfUfUtur=Jtrtgt
gtgrl Ke; rfUY stl ufuUrtY ytJu=l fUh;t n gt buhu/nbthugt nb bmurfUme fuUrJh r=Jtrtgtvl
fUt yt=uN sthe rfUgt st;t n gt b/nb gt nb bmufUtuRoCe r=Jtrtgt gtgrl Keo; rfUY stl ufuU
rtY ytJu=l fUh;t nq/fUh;un ;c ytih YumurfUme btbtubytvfuU, ytvfuUyr"fUtrhgt, muJfUtYJk
YsxtfuUrtY gn rJr"vqKontudt rfUJu;fUtt gt WmfuUct= rfUme mbg ;:t rcl t rfUme mqal t
fuUrfUme Yume Cqrb gt Gut gt vrhmh bJuN fUhsntgt rsmvh =]rck"fUhFudY btt hFu
stYk, mkra; rfUY stYkgt v\zunt;:t Yume rJr fuUgtusl t:oYumumCe fUtgo, f]Ug gt fUbofUh
rsnytv ytJgfUmbS;:t =]rck"fUhFudY btt fUe stka fUh, Wl fUt bqgtkfUl fUh, Wn
cebtf]U; fUhtYkytih/gt Wl fUtuyvl e mwvw=ode btuytih/gt Wl fUt yrCd{nK fUh, WnJmqt fUh, tt
fUh, Wl fuUrtY rhmeJh rl gw; fUhytih/gt Wl vh fUst fUh;:t WmfuUct= gt ;tu;fUtt gt
rfUme mbg gt mbg-mbg vh atnuttufUl ettbe gt rl rJ=t y:Jt tRJux mkrJ=t gt rl rJ=t tht
ytih YfUgt yr"fUttx b=]rck"fUhFudY mCe btt gt Wl fuUrfUme Ctd fUtuYume her; muYJk
Yume N;tuovh rcf{e YJkggrl ; fUhsimt ytv Wra; mbS;:t Rl bmurfUn Nr;gtfuUgtud
fuUrtY ytc nwY rcl t gt Wl fuUgtud muntul uJtte ntrl fuUrtY =tge nwY rcl t ;:t Jt==tgh
fUhl ufuUytvfuUyr"fUthtYJkWvathtvh fUtuRor;fqUt CtJ ztturcl t Wvgwo; rfUn yr"fUthtfUtu
Jr;o; fUh, yt; fUh, ;g fUh, Wl fuUrtY mbSti;t fUhYJkWl fUt rl vxtht fUh;:t fUtuRotkrc; Jt=
gt yg fUtgoJtne ntu;unwY Ce b/nb ytih nb bmunhufURmfuUtht Jal ck" fUh;t nq/fUh;un rfU
b/nb ytvfUtumCe mkckr"; mkrJ=t, r;Cqr;, cesfU, rct, l tux, nwkze YJk=;tJus =qkdt/=du;:t b/
nb fUhth fUh;t nq/fUh;un rfUytvfuUtuFtytih rcf{e YJkJmqte fUtuJefUth fUkdt/fUhdu;:t Wl b
=rNo; rfUme fUbe fUt Cwd;tl fUkdt/fUhdu>=]rck"fUhFudY btt fUe rJf{e gt Jmqte fuUYumuytdb
fUt, stuWmmuYume rJf{e ytih/gt Jmqte fUe gt Wl fuUyl wMkde ttd;, Cth ytih FaofUe fUxti;e fUhl u
fuUct= ca;t ni, Wvgtud gts mrn; W; Yumu}UK fuUNuM;:t RmfuUy"el buhu/nbthugt nb b
murfUme YfUfuUtht ytvfUtu=ug mCe ttd;, Cth YJkFaoytih yg Yumu"l fUe, rsmfUt Cwd;tl
RmfuUtht mwhrG; ni, awfUti;e fuUr; rfUgt stYdt stubuhu/nbthugt nb bmurfUme YfUfuUtht
ytvfUtu=ug n>
I/We hereby further agree, confirm and undertake that if I/We fail to pay on demand
any moneys which ought to be paid by me/us hereunder or shall commit breach of any
agreement on my/our part herein contained or if any circumstances shall occur which in
your sole judgment is prejudicial to or imperils or is likely to prejudice or imperil the
hypothecation security created by this Letter of Hypothecation or if any distress or execu-
tion is levied or enforced against any of my/our property or assets whatsoever or if any
person shall apply to have me/us or any one of us adjudicated insolvent or if any order of
insolvency is made against me/us or any of us or I/We or any one of us apply to be ad-
judicated insolvent then and in any such case as it shall be lawful for you, your officers,
servants and agents forthwith or at any time thereafter and without any notice to enter into
446
CHAPTER-10
upon any lands or fields or premises where or whereon the hypothecated goods may be
kept, stored, maintained or lying upon and for the purpose of such entry to do all acts,
deeds or things deemed necessary by you and to inspect, value, insure and/or take charge
of and/or to seize, recover, receive, appoint receivers of and/or to take possession of the
hypothecated goods and thereupon either forthwith or at any time or from time to time
either by public auction or tender or private contract or tender and in one or more lots to
sell and dispose of all or any part of the hypothecated goods in such manner and on such
terms as you shall think fit and to enforce, realise, settle, compromise and deal with any
rights aforesaid without being bound to exercise any of these powers of being liable for
any losses in the exercise thereof and without prejudice to your rights and remedies of suit
or otherwise and notwithstanding there may be any pending suit or other proceeding. I/We
and every one of us hereby undertake to transfer and deliver to you all relative contracts,
securities, invoices, bills, notes, hundies and documents and agree to accept your accounts
and sales and realization and to pay any shortfall or deficiency thereby shown. The pro-
ceeds of sale or realization of the hypothecated goods remaining after deducting therefrom
the costs, charges and expenses of and incidental to such sale and/or realization shall be
applied in repayment of the balance of the said loan due by me/us or any one of us to
you together with interest and all costs, charges and expenses and other moneys payable
by me/us or any one of us to you hereunder and the payment of which is hereby secured.
11. ytvfuUtht yrCd{nK rfUY stl u;fU=]rck"fUhFudY btt YJ rfUme yg =;tJus ytih
cebt mutt "l fUtubuhu/nbthutht ytvfUe yg mkvrt fuUv burJNuMfUh r;Cqr; murJrl gturs;
fUhfuUhFt stYdt ;:t b/nb Wl fUtugt Wl fuUrfUme Ctd fUtuCtrJ; fUhl uJttt fUtuRock"fUgt Cth
gt "thKtr"fUth gt rJtkdb l ;tum]rs; fUkdt/fUhduytih l ne fUtuRoYumt fUtgofUkdt/fUhdugt fUhl u
fUe yl wbr; =qkdt/=dusti =]rck"fUhFudY btt ytih Wl fuUrJf{g ytdb fUe ctc; RmfuUy"el
r;Cqr; vh r;fqUt CtJ ztt;t ni>
Pending seizure by you, the hypothecated goods and any documents and any Insur-
ance moneys received will be held by me/us as your exclusive property specially appropri-
ated to the security and I/We will not create any mortgage or charge or lien or encum-
brance affecting the same or any part thereof nor do or allow anything which may preju-
dice security hereunder in respect of the hypothecated goods and the sale proceeds
thereof.
12. b/nb RmfuUtht DturM; fUh;t nq/fUh;un YJkdthkxe =u;t nq/=u;un rfU=]rck"fUhFudY
btt Wl vh ggl fUe vqKoNr; mrn; buhe/nbthe ytgtkr;fUrJtkdbhrn; mkvrt n ytih hndu>
I/We hereby declare and guarantee that hypothecated goods are and will be my/our
447
CHAPTER-10
absolute unencumbered property with full power of disposition thereover.
13. b/nb fUhth fUh;t nq/fUh;un rfUb/nb mbg-mbg vh ytih ytvfUe yvuGtl wmth mCe rJJhK,
rhvtuxo, rJJhKe, btKvt YJkmqal t =qkdt/=du;:t Wnmgtrv; fUkdt/fUhduytih Rmr;Cqr; fUtu
CtJe fUhl ufuUrtY yvurG; fUtuRoytJgfU=;tJus =qkdt/=duYJkrl vtr=; fUkdt/fUhdu>
I/We agree to furnish and verify all statements, reports, returns, certificates and infor-
mation from time to time and as required by you and give and execute any necessary
documents required to give effect to this security.
14. RmfuUy"el m]rs; r;Cqr; mbg-mbg vh ytvfUtu=ug NuM htrN fuUrtY at; r;Cqr;
ntude>
The security created hereunder shall be a Continuing Security for the balance from
time to time due to you.
15. Rmbyk;rJo fUtuRoCe ct; ytvfuUr; buhe/gt nb bmurfUme YfUfUe }UKd{;;t gt
=trgJ fuUrtY rfUme J;obtl gt CtJe r;Cqr;, dthkxe, =trgJ gt rzf{e fUe ctc; ytvfuUyr"fUtht
gt Wvathtvh fUtuRor;fqUt CtJ l n zttude>
Nothing herein shall operate to prejudice your rights or remedies in respect of any
present or future security, guarantee, obligation or decree for any indebtedness or liability
of mine/our or any one of us to you.
16. ytvfuUtht bwSu/nbgt nb bmurfUme YfUfUtuRmfuUy"el yl whtu" fuUv bgt
yg:t fUtuRol turxm=e st mfU;e ni gt
..............................
bvnwatRost mfU;e ni gt bwSu/nbgt
nb bmurfUme YfUfUtuW; v;uvh ztfUtht Cuse st mfU;e ni ;:t gr=ztfUtht Cuse st;e
ni ;tuYume l turxmWmmbg =e dRombSe stYde sc Jn ztfUfuUmgfTUyl wf{b b=tl fUe stY
ytih Yume l turxmfUt ztfUtht =tl rfUgt stl t mtrc; fUhl ufuUrtY gn mtrc; fUhl t gto; ntudt
rfUrsmrtVUtVuUbl turxmhFe dRo:e WmuztfUbzttt dgt :t ;:t ytvfuUyr"fUthe tht
n;tGrh; RmytNg fUt btK vt rl atgfUntudt rfUrtVUtVuUfUtuztfUbzttt dgt :t>
Any notice by way of request or otherwise hereunder may be given by you to me/us or
any one of us or may be left at........................................... or may be sent by post at the
said address to me/us or to any one of us and if sent by post, such notice shall be
deemed to have been given at the time when it would be delivered in due course of post
and in proving such notice when given by post, it shall be sufficient for you to prove that
the envelope, containing the notice was posted and a certificate signed by your officer that
the envelope was so posted shall be conclusive.
448
CHAPTER-10
ylwmqaeIfUO
Schedule A
(vkvmux ytih WmfuUmntgfUWvfUhK/x[ixh ytih WmfuUmntgfUWvfUhK/rz[rtkd gqrl x fuUrJJhK)
(Description of Pumpset and Accessories/Tractor and Accessories/Drilling unit)
CJ=eg
Yours faithfully
ltux &RmVUtbofuUrn=e vtX murfUme fUth fuUJ t=-rJ J t=fuUWvt ntul urfUr: r; bRmfUt
Note : In the event of any controversy arising our of Hindi Version of this Form, the origi-
nal English text of it will be treated as authoritative.
449
CHAPTER-10
A-105 (Agr)
(Combined & Modified)
gq fUtucf UCO BANK
Hypothecation cum Agreement
for Agricultural Loans
(To be stamped as an Agreement, not to be attested)
To,
............................................... (Name of the Bank)
..............................................
..............................................
This AGREEMENT EXECUTED at..............................................................................
this.............................................. day of..................................... Two thousand..........................
in favour of UCO Bank a Corporate Body constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act 1970 and having its Head Office at 10,
B.T.M. Sarani, Kolkata (hereinafter called the Bank which expression shall includes its
successory and assigns) by.................................... #................................................................
son/wife/daughter of.............................................................................................................
(address) of............................................................................................................... (Name of
village, tehsil and district) ........................................................................... son/wife/daughter
of.......................................................................................................................... (address)
of.................................................................................................................... (Name of village,
tehsil and district)................................................................................................. son/wife/
daughter of.........................................................................................................................
(address) of..........................................................................................................................
(Name of village, tehsil and district)........................................................................................
M/s. ..................................................................................................................................
situated at.................................................................................................................................
# here enter the name(s) of the Borrowers Co-borrows (hereinafter referred to as the
Borrower(s) (which experession shall unless the context of subject otherwise requires
include them jointly and/or severally and his/their heir(s), executor(s) and administrator(s)
assigns jointly and severally.
450
CHAPTER-10
Y-105 (f]UrM)
(mkgw;)
gq fUtucf UCO BANK
f]UrM}UKtfuUrtY=]rck"l-mn-fUhth
(RmvhfUhthfUe;hn xtkv tdtgt stY>RmuyrCbtrK; l nrfUgt stY>)
urM;e,
..............................................
(cfUfUt l tb)
.............................................
.............................................
gn fUhth
.....................................................................................................
b
.....................................
20
.............
fUtu
........................................................................
fuUr=l
............................................
*e/eb;e/fw Ubthe
...........................................................................................................................................
vwt/vl e/vwte
......................................................................................................................................
v;t
...................................................................................................................................................................
.....................................................................................................
(dtJ, ;nmet ytih rstufUt l tb)
e/eb;e/fw Ubthe
..........................................................................................................................................
vw t/vl e/vw te
..........................................................................................................................................
v;t
.........................................................................................................................................................................
.................................................................................................
e/eb;e/fw Ubthe
.......................................................................................................................................
vw t/vl e/vw te
..........................................................................................................................................
v;t
.........................................................................................................................................................................
......................................................................................................
................................................................................................................................
:tl vh yJr:;
bu mmo
...............................................................................................................................................................
* gntW"thfU;to (yt )/mn W"thfU;o tytfUt (fu U) l tb rtFt stY/rtFustY>(gn t Rmfu Uvat;TIIW"thfU;o t
(yt) fuUv brl r=o) RmyrCgr; bsc ;fUmk=Cogt rJMg byg:t fwUA yvurG; l ne,
Jumkgw; v bytih/gt ytd-ytd v b;:t WmfuU/Wl fuUJtrhm(JtrhmdK), rl vt=fU(rl vt=fUdK)
ytih NtmfU(NtmfUdK), mbl w=urN;e (mbl w=urN;edK) mkgw; v byuih ytd-ytd v bNtrbt
n) tht gqfUtucfU, stucfUfUthe fkUvl e (Wvf{btfUt ysol ytih yk;hK) yr"rl gb, 1970 fuUy"el
drX; YfUrl drb; rl fUtg ni ;:t rsmfUt "tl fUtgtotg 10, rJ. ti. b. mhKe, fUtutfUt;t b(rsmu
RmbRmfuUvat;TIIcfUOOfUnt dgt ni ytih rsmbWmfuUWthtr"fUthe YJkmbl w=urN;e Ntrbt ni) fuU
vG brl vtr=; rfUgt dgt>
451
CHAPTER-10
WHEREAS at the request of the Borrower(s) as contained in his/their application
dated............................................................................ the Bank has agreed to grant/granted
to the borrower(s) from time to time upon the terms and conditions stated hereinafter and
as stipulated in the Schedule-I and in the application form and/or sanction letter and other
schedule(s) hereto which form part of this agreement.
(a) Cash Credit at any time up to limit of Rs. ..................................
(Rupees ............................................................................................................... only)
(b) Overdrafts at any time to the extent of Rs. ..................................
(Rupees ............................................................................................................... only)
(c) Demand Loans at any one time for Rs. ..................................
(Rupees ............................................................................................................... only)
(d) Term Loans at any one time of Rs. ..................................
(Rupees ............................................................................................................... only)
(e) Other credit facility at any one time of Rs. ..................................
(Rupees ............................................................................................................... only)
(hereinafter collectively and individually referred to as the loans) for the purpose of
facilitating finance to the borrower(s) for :
#.....................................................................................................................................................
NOW IN CONSIDERATION of the Bank having granted/agreed to grant the loan(s), the
Borrower(s), hereby agree, undertake and declare :
#(here please fill up the purpose of the loan)
1. That each and all of the borrowers (s), present and future.
i) Crop whatsoever and wherever raised or to be raised including standing crops
on the land described in the second Schedule hereto or cut or stocked or
stored or in course of transit or delivery:
ii) herd/flock/silkworms and coccoons including those described in the third
Schedule hereto wherever they may be;
iii) tools/equipments/fixtures/boats/machines, tractor/power tiller/tubewell/electric
motor/diesel engine and/or other movables connected with and relating to
farming/rearing of cattle and/or flock/fishing/sericulture including those described
in the fourth Schedule hereto wherever they may be;
452
CHAPTER-10
y;&W"thfU;to(yt) fuUyl whtu" vh, simtrfUWmfuU/Wl fuUytJu=l r=l ktfU
..........................................
brl rn; ni, cfUl ugntRmfuUl eauJrKo; rl ck"l tytih N;tuvh ;:t yl wmqae-I ytih ytJu=l VUtbo
ytih/gt mkJef]Ur; vt YJkRmfuUmt: mktl yg yl wmqae (mqragtk), stuRmfUhth fUt Ctd ni, b
g:t yl w c *
............................................
fu UrtY W"thfU;to (yt ) fUturJteg mntg;t =u l ufu Ugtu sl t:o
*(f]Uvgt gnt }UK fUt gtusl Ch)
fU)
........................................
h.(
..........................................................................
vgubtt)
fUe mebt ;fUrfUme Ce mbg l fU=e }UK>
F)
........................................
h.(
..........................................................................
vgubtt)
fUe mebt ;fUrfUme Ce mbg ytuJhz[tx
d)
........................................
h.(
..........................................................................
vgubtt)
fUe mebt ;fUrfUme Ce mbg YfUfUtrtfUbtkd }UK
D)
........................................
h.(
..........................................................................
vgubtt)
fUe mebt ;fUrfUme Ce mbg YfUfUtrtfUbegt=e }UK
E)
........................................
h.(
..........................................................................
vgubtt)
fUe mebt ;fUrfUme Ce mbg YfUfUtrtfUyg }UK mwrJ"t
(gnt RmfuUat;TmtbqrnfUv muytih Jigr;fUv muII}UKtOOfuUv brl r=o) Jef]U; fUhl u
fuUrtY mnbr; =e ni/Jef]U; rfUgt n>
yc }UK (}UKt) fUtuJef]U; rfUY stl u/Jef]U; fUhl unu;wmnbr; r=Y fuUcfUfuUr;VUtJv
W"thfU;to(dK) Y;=Ttht fUhth fUh;t ni/fUh;un, Jal =u;t ni/=u;un ytih DtuMKt fUh;t ni/fUh;un>
1. rfURmmbg ytih CrJg bgufUytih mCe W"thfU;to(dK)
i) RmfUe r;eg yl wmqae bJrKo; Cqrb vh F\ze VUmt mrn; rfUme Ce ;hn fUe ytih fUn
Ce rJ btl Yume VUmt stuWdtRodRontuy:Jt WdtRostl uJtte ne y:Jt fUtxe dRontu,
Ckzth bhFe dRontu, mkd]ne; fUe dRontugt btdo: gt vrh=tl fUe r:r; bntu<
ii) RmfUe ;];eg yl wmqae bJrKo; nzo/bAte/vttfU/huNb fUex ytih fwUfwUm, atnuJusntCe
nt<
iii) RmfUe a;w:oyl wmqae bJrKo; f]UrMfUtgo/vNwvttl ytih/gt j tpfU/bg d{nK/huNb Wvt=l
musw\zunwY ytih mkckr"; ytisth/WvfUh/sw\zl th/l tJ/bNel , x[ixh/vtJh rxth/l tfqUv/rcste
atrt; btuxh/zest Rksl ytih/gt yg skdb J;wYk, atnuJusnt Ce ntu<
453
CHAPTER-10
iv) receivable and investment, movable assets and valuables.
(All or any of items detailed in (i) to (iv) above hereinafter referred to as the
security).
SHALL BE AND STAND HYPOTHECATED to the Bank by way of first charge as
security for the loans and also for all indebtedness or liabilities of the Borrower(s) to the
Bank together with all interest, commissions, costs, charges and expenses payable to or
incurred by the Bank including those for the enforcement of any of the security(ies).
2. The loan(s) will be disbursed/has/have been disbursed by the Bank to the borrower(s)
in instalments or in one lump sum.
3. This agreement shall operate as a security to the Bank in addition to any other
security, if any, already held by the Bank for the repayment to the Bank on demand or
otherwise of the balance due to the Bank by the borrower at any time or ultimately on the
closing of the said Accounts. The expression the balance due to the Bank in this and
subsequent clauses of this Agreement shall be taken to include the principal moneys from
time to time due on the said account(s) whether demanded or not an including also all
interest(s) including, additional interest, penal interest/commission charges, interest tax,
liquidated damages by whatever name called, calculated from day to day in manner and at
the rate hereinafter mentioned and the amount of all cost (between Attorney and Client)
charges and expenses of the Bank which the Bank may have paid or incurred in any way
in connection with the loans and other assets including the sale and disposal thereof and
the realisation of the loans and any other sum that is hereunder or otherwise declared as
debitable to the accounts and interest thereon.
4. That the Borrower(s), shall pay interest on the Loans to be calculated on the daily
balance in the loan account(s) maintained with the Bank with monthly/quarterly/half yearly/
yearly or other rests according to the practice of the Bank which may be debited in the
Loan Accounts in the case of :
(a) Cash credits at the rate of.........................................................%
#
above/below
the..................................... Banks prime lending rate rising and falling therewith
with a minimum of................................................% per annum.
(b) Overdraft at the rate.................................................................................. %
#
above/below the.......................................................... Banks prime lending rate
rising and falling therewith a minimum of ............................................... % per
annum.
454
CHAPTER-10
iv) tg J;wytih rl JuN, skdb ytr;gt;:t bwgJtl J;wY
(Wvh (i) mu(iv) ;fUbgtuhuJth mCe b=gt Wl bmufUtuRoCe b=-gntRmfuUvat;TIIr;Cqr;OO
fuUv brl r=o>
rfUme Ce r;Cqr; (r;Cqr;gtbmurfUme YfU) fuUJ;ol fuUrtY rfUY dY mCe Faomrn;
cfUfUtu=ug gt cfUtht mCe gts, fUbeNl , ttd;, Cth ytih gg fuUmt: mCe }UKtnu;w;:t
cfUfuUr; W"thfU;to(yt) fUe mCe }UKd{;;t y:Jt =ug;tytfuUrtY r;Cqr; fUe ;hn :b Cth
fuUv bcfUfuUr; =]rckr"; ntduytih hndu>
2. cfUtht W"thfU;to(yt) fUtu}UK rfU;tbgt YfUbw; htrN bmkrJ;rh; rfUgt stYdt rfUY
stYkdu/mkrJ;rh; rfUgt dgt ni/rfUY dY n>
3. gn fUhth rfUme Ce mbg y:Jt yk;;&W; Ft;tfuUck=ntul uvh W"thfU;totht cfUfUtu=ug
NtuMhtrN fUe btkd rfUY stl uvh gt yg:t cfUfUtuawfUtl ufuUrtY cfUtht "trh; rfUme yg
r;Cqr;, atnufUtuRoCe ntu, fuUyr;rh; YfUr;Cqr; fuUv brf{gtNet ntudt>gnt;:t RmfUhth
fuUvat;J;eoFkztbIIcfUfUtu=ug htrNOOyrCgr; bW; Ft;u/Ft;bmbg-mbg vh =ug
bqt"l , atnubtkdt dgt ntugt l n, Ntrbt btl t stYdt ;:t RmbgntRmfuUvat;TWrtrF; her;
muytih =h vh ytfUrt; yr;rh; gts mrn; mCe gts, =tkrzfUgts/fUbeNl Cth, gtsfUh,
vrhrl "torh; l wfUmtl , atnuJurfUme Ce l tb mustl ust;unt, ;:t }UK mumkckr"; rfUme Ce v b
cfUtht y=t rfUY dY gt Wvd; mCe Fao(yxl eoytih bwJrfUt fuUcea), Cth ytih gg fUe
htrN ;:t ytr;gtfUe rcf{e ytih Wl fUt ggl mrn; yg ytr;gtYJkgnt RmfuUl eaugt yg:t
Ft;tbl tbugtug fuUv btturM; }UKtytih yg htrN ;:t Wl vh tu=TCq; gts fUe Jmqte
Ce Ntrbt btl e stYde>
4. gn rfUW"thfU;to(dK) rl l rtrF; btbtub}UK vh cfUbart; vr; fuUyl wmth btrmfU/
r;btne/Abtne/ctrMofUgt yg yk;htt mrn; cfUfuUvtm}UK Ft;u(Ft;t) fuU=irl fUNuMvh ytfUrt;
gts fUt Cwd;tl fUhudt rsmfuUrtY }UK Ft;tbl tbuztt stYkdu_
fU) l fU=e }UK fuUbtbtubcfUfUe bqt W"th =h
..................................................
*mu
yr"fU/fUb
.................................................
% fUe=h vh stuRmfuUmt: c\Zudeytih Dxude
vhk;wst gql ;b
..............................
% r;JMontude>
F) ytuJhz[tx fuUbtbtubcfUfUe bqt W"th =h
...................................................
* mu
yr"fU/fUb
.................................................
% fUe=h vh stuRmfuUmt: c\Zudeytih Dxude
vhk;wstugql ;b
.......................................
% r;JMontude>
455
CHAPTER-10
(c) Demand loans at the rate of ..................................................................... %
#
above/below the.......................................................... Banks prime lending rate
rising and falling therewith a minimum of .............................................. % per
annum.
(d) Term loans at the rate of ........................................................................... %
#
above/ below the .......................................................... Banks prime lending rate
rising and falling therewith with a minimum of ...................................... % per
annum.
Provided that the Bank shall at any time and from time to time be entitled to change
the rate of interest and such revised rate of interest or change shall always be construed
as agreed to be paid by the Borrower(s) and hereby secured. Borrower(s) shall be deemed
to have notice of change in the rate of interest whenever the changes in Prime Lending
Rate (PLR) takes place and is displayed/noticed at/by the branch/published in newspaper/
made through entry of interest charged in the pass book/statement of accounts, balance
confirmation sent to the borrower(s).
Borrower(s) shall also pay interest tax and any other charges and dues as may be
levied.
Further without prejudice to the Banks other rights and remedies, the Bank shall be
entitled to charge at its own discretion enhanced rates of interest of the outstanding in the
loan account(s) or a portion thereof for any default or irregularity on the part of the
borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of
interest for such period as the Bank may deem fit.
5. Borrower(s) agrees/agree that subsidy of Rs. ............................... to be provided by
the Government shall be kept in Term Deposit Account in his name for a minimum period
of................... years, which may be adjusted towards loans as per the subsidy scheme or
may be renewed depending upon the circumstances of the case.
6. The borrower(s) further agrees/agree as a pre-condition of the loan/advances given
by the bank that if he/they commit(s) default in the repayment of the loan/advances or in
the repayment of interest or any of the agreed instalment of the loan on due dates, the
Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish
the name of the borrower(s) and its directors/partners/proprietors as defaulter in such
medium as the Bank or Reserve Bank of India in their absolute discretion may think fit.
#
(strike out whichever is not applicable. Unless struck off it would indicate a rate above Banks
prime lending rate)
456
CHAPTER-10
d) btkd }UK fuUbtbtubcfUfUe bqt W"th =h
........................................................
*mu
yr"fU/fUb
..............................................................
% fUe =h vh stuRmfuUmt: c\Zude
ytih Dxude vhk;wstugql ;b
...........................................
%

r;JMontude>
D) begt=e }UK fuUbtbtubcfUfUe bqt W"th =h
.........................................................
*muyr"fU/fUb
............................................................
% fUe=h vh stuRmfuUmt: c\Zude
ytih Dxude vhk;wstugql ;b
.........................................
%

r;JMontude>
vhk;wgn rfUcfUrfUme mbg ytih mbg-mbg vh gts-=h bvrhJ;ol fUhl ufUt nfU=th ntudt
ytih Yume mkNtur"; gts-=h gt YumuvrhJ;ol fuUrtY nbuNt gn btl stYdt rfUWmfUt Cwd;tl fUhl u
nu;wW"thfU;to(dK) mnb; nwyt ni/nwY n ytih Y;=Ttht gn r;Cq; ni>W"thfU;to(yt) fUtuvrhJ;ol fUe
mqal t rbtl t Wmmbg btl rtgt stYdt sc bqt W"th =h (ve.Yt.yth.) bvrhJ;ol rfUgt st;t ni
ytih RmvrhJ;ol fUtuNtFt b/NtFt tht =Ntogt st;t ni/yr"mqra; rfUgt st;t ni/mbtath vt b
fUtrN; rfUgt st;t ni/vtmcwfU/tuFt rJJhK bCtrh; gts fUe rJr, W"thfU;to(yt) fUtuurM; NuM
htrN fuUvwrfUhK tht rfUgt st;t ni>
W"thfU;to/fU;todK tdtY stl uJttugts fUh YJkrfUn yg Ctht;:t cfUtgt htrNgtfUt Ce
Cwd;tl fUhudt/fUhdu>
Rmfu Uyr;rh;, cfUfu Uyg yr"fUthtYJkWvathtvh r;fq Ut CtJ ztturcl t cfUW"thfU;to (yt )
fuUrfUme Yumugr;f{b gt yrl grb;;t fuUrtY }UK Ft;u(Ft;t) fUe cfUtgt htrN gt RmfuUrfUme
Ctd vh JrJJufUtl wmth Yume Jr"o; gts =h Ctrh; fUhl ufUt nfU=th ntudt rsmucfUfUe htg bYume
yJr" fuUrtY, simt cfUWra; mbSu, Ctrh; fUhl t ytJgfUni>
5. W"thfU;toRmct; mumnb; ni rfUmhfUth tht =e stl uJtte
..........................................
h. fUe
mntgfUe WmfuUl tb FtutudY begt=e sbt Ft;ubgql ;b
...............................................
JMtufUe
yJr" fuUrtY hFe stYde rsmubtbtufUe vrhr:r; fuUyt"th vh mntgfUe gtusl t fuUyl wmth }UK
fuUrtY mbtgturs; rfUgt st mfU;t ni gt Rmul Jef]U; rfUgt st mfU;t n>
6. RmfuUytducfUtht r=Y dY }UK/yrd{b fUe vqJoN;ofuUv bW"thfU;toRmct; fuUrtY
htse ntu;t ni rfUgr= Jurl "torh; ;theF fUtu}UK/yrd{btfUe awfUti;e by:Jt gts fUe awfUti;e buk
y:Jt }UK fUe rfUme Jef]Ur; rfU; fUe awfUti;e baqfUfUh;un ;tucfUytih/y:Jt Cth;eg rhsJo
cfUfUtugn vqKoyr"fUth ntudt rfUJn gr;f{be fuUv bW"thfU;toytih RmfuUrl =uNfUt/Ctde=tht/
JJ"trhgtfuUl tb Yumubtgb fuUtht fUx fUhugt fUtrN; fUhusimtrfUcfUgt Cth;eg rhsJocfU
yvl umkvqKorJJufUtr"fUth bWvgqo; mbSu>
* (stugtug l ntu, WmufUtx =>sc ;fUfUtxt l n st;t ni ;c ;fUgn cfUfUe bqt W"th-=h mu
yr"fU=h c;tYdt)
457
CHAPTER-10
7. That in the case of cash credit, overdraft and demand loan, the borrower(s) shall on
demand forthwith pay to the Bank the outstanding(s) owing to the Bank in respect of the
loans inclusive of interest, commissions, costs, charges and expenses. However, in a case
where for any reason cash credit or overdraft or demand loan is permitted by the Bank at
its absolute discretion to be repaid in instalments and on such terms as may be stipulated,
the conditions as to term loans herein shall apply to the said loan subject to such changes
as may be stipulated by the Bank. The term loan will be repayable by instalments as
stipulated in the Fifth Schedule hereunto attached and in the event of any default
committed, the bank will have right to demand at its option the entire amount of principal
and interest thereon remaining due and outstanding which will then become payable
forthwith.
Event of default :
In one or more of the following happenings, it would be treated as an event of default
for this agreement:
a) Any breach of the terms of this Agreement;
b) Any one or more instalment(s) are not paid on time;
c) Interest has not been paid on due date
d) If any distress or execution is levied or issued upon or against any part of the
property of the borrower and the same is not discharged or vacated within 14
days or if a receiver is appointed for the borrower(s)s business or if any
substantial part of the borrower(s)s assets or business shall be deemed to be
seized or any action by any Government or any other authority is instituted to
suspend business or agricultural pursuit of the borrower(s).
e) If the borrower(s) stop payment or ceases or decides to cease to carry on his/
their business, agricultural pursuit or dispose of the whole or substantial part of
his business or agricultural pursuit.
f) If any other indebtedness or obligation is not discharged when due prior to or
on the specified maturity thereof.
g) If any information furnished by the borrower to the Bank is found to be incorrect
or incomplete in any material particulars.
h) Existence of any circumstances, in Banks opinion which jeopardises its interests
or security.
458
CHAPTER-10
7. rfUl fU=e }UK, ytuJhz[tx ytih btkd }UK fuUbtbtubW"thfU;to(dK) btkd fUe stl uvh gts,
fUbeNl , Fao, Cth ytih gg mrn; }UK fuUmkck" bcfUfUtu=ug cfUtgt htrN(gt) fUt Cwd;tl
;fUtt fUhudt>;:trv YumubtbtubsntcfUtht yvl umkvqKorJJufUtr"fUth bYJkg:trl "torh; Yume
N;tuvh l fU=e }UK gt ytuJhz[tx gt btkd rfU;tbawfUtY stl ufUe yl wbr; =e st;e ni, Jnt
begt=e }UK mumkckr"; gntWrtrF; N;ucfUtht rl "torh; vrhJ;ol tfuUy"el ttdqntde>begt=e
}UK, RmfuUmt: mktl vtaJ yl wmqae bg:t yl wc" rfU;tbawfUtgt stYdt ytih fUtuRogr;f{b
rfUY stl ufUe =Nt bcfUfUe gn yr"fUth ntudt rfUJn yvl urJfUv vh, yJrN =ug bqt"l fUe
mkvqKohtrN ytih Wmvh tu=TCq; gts ;:t cfUtgt htrN fUe btkd fUhu, stuWmmbg ;fUtt =ug ntu
stYde>
gr;f{b fUe =Nt&
rl l rtrF; Dxl tytbrfUme YfUgt yr"fUfuUDrx; ntul uvh RmfUhth fuUvrhug b, Rmu
gr;f{b fUe YfU=Nt fuUv bbtl t stYdt>
fU) RmfUhth fuUrl ck"l tfUt rfUme Ce fUth muCkd rfUgt stl t<
F) rfUme YfUgt yr"fUrfU;/rfU;tfUt mbg vh l n awfUtgt stl t<
d) rl g; ;theF fUtugts y=t l n rfUgt stl t<
D) Yume =Nt bW"thfU;tofUe mkvrt fuUrfUme Ctd vh gt WmfuUrJh fUtuRofUh:b gt
rl vt=l W=d]ne; gt rl dorb; rfUgt st;t ni ;:t Rmu14 r=l tfuUCe;h Wbtura; gt
rl v{CtJe l n rfUgt st;t ni y:Jt W"thfU;to(yt) fuUfUthcth fuUrtY gt W"thfU;to(yt)
fUe ytr;gtfuUvgtot Ctd fuUrtY fUtuRorhmeJh rl gw; rfUY stl uvh Wmus; rfUgt
nwyt btl t stYdt ytih sc W"thfU;to(yt) fuUfUthcth gt f]UrM mkck"e fUtbfUts fUtuck=
fUhl ufuUrtY rfUme mhfUth gt rfUme yg tr"fUthe tht fUtuRofUthoJtRofUe st;e ni<
E) gr=W"thfU;to(dK) awfUti;e ck=fUh =u;t ni/=u;un y:Jt yvl t/yvl ufUthcth, f]UrMmkck"e
fUtbfUts fUhl t ck= fUh =u;t ni/=u;un gt ck= fUhl ufUt rl Kog fUh;t ni/fUh;un y:Jt
yvl ufUthcth gt f]UrMmkck"e fUtbfUts fuUmkvqKogt vgtot Ctd fUt rl vxtl fUh;t ni/fUh;u
n<
a) gr= fUtuRoyg }UKd{;;t gt =trgJ fUtuvrhvfU;t fUe rl r=o ;theF fuUvqJogt Wm
;theF fUtuWbtura; l n rfUgt st;t ni<
A) gr= W"thfU;totht cfUfUtu;w; fUtuRomqal t dt; vtRost;e ni y:Jt fUtuRobnJvqKo
rJJhK ymkvqKovtgt st;t ni<
s) Yume vrhr:r; fUt ntul t rsl fUt cfUfUtuhtg bRmfuUrn; gt r;Cqr; vh r;fqUt CtJ
v\z;t ni>
459
CHAPTER-10
In the event of any one default as above the Bank shall have the right:
a) to recover the entire dues,
b) to suspend any withdrawal to be effected,
c) to take possession of the security so created forthwith and
d) to take any other action as it may deem fit for recovery of its dues and
enforcement of its securities.
8. Lien
Until payment is made to the Bank of all the amounts, whether past present of
Borrower(s) may be become liable hereunder or otherwise and whether as principal or
surety, the borrower agrees that the Bank shall have a lien and/or right of set off on all
securities and/or monies whatsoever held at any time by the bank on account of or to the
credit of the Borrower in or for any account of manner or purpose howsoever. The bank
shall be at liberty to discharge the said obligations or liabilities of the borrower out of the
said securities and/or monies, and in case of term deposits, whether the same have
matured for payment or not, and may appropriate or realise them in the manner thought fit
by it and without notice to the Borrower (and whether before or after filing suit or taking
any legal proceedings). The Bank may set off an amount estimated by it in good faith to
be the amount of that obligation.
8.(a) The borrower shall take all steps to get the hypothecated goods/vehicles etc.
registered with the Authorities immediately may be required under the law and shall submit
the proof of such registration to the bank within 7 (seven) days from the date of the
registration.
9. The borrower shall also provide suitable third party guarantee as and when required.
10. Right of possession :
On the happening of any event of default, the bank will have a right to take over
possession of the securities charged and sell them and recover its dues and/or to exercise
right of lien and/or set off without any notice. The borrower(s) hereby authorises the bank
to act as his/their attorney/agents for all intents and purposes for effectual implementation
of the aforesaid action.
11. The Borrower(s) hereby agree and undertake to notify all members of the public
460
CHAPTER-10
Wvgwo; rfUme YfUgr;f{b fUe =Nt bcfUfUtugn yr"fUth ntudt rfUJn_
fU) mbd{JfUtgt htrN fUe Jmqte fUhu,
F) rfY stl uJtturfUme ytnhK fUtuhtufU=u,
d) RmfUth m]rs; r;Cqr; vh ;fUtt fUst fUh tu;:t
D) yvl e =ug;tytfUe Jmqte YJkyvl e r;Cqr;gtfuUJ;ol fuUrtY Yume fUtuRoyg fUthoJtRo
fUhursmuJn Wvgwo; mbSu>
8. d{nKtr"fUth
IIsc ;fUcfUfUtumkvqKohtrN fUt Cqd;tl l n fUh r=gt st;t ni, atnuJn rvAtt, J;obtl gt
CrJg fUt ntu, Jt;rJfUgt ytfUrbfUntu, rsmfUt Cqd;tl W"thfU;totht rfUgt stl t ni gt rsmfuU
rtY W"thfU;togntgt yg:t =tge ntumfU;t ni, gt ni YJkCtune gn htrN fuUv bntugt
r;Cqr; fuUv bntu, W"thfU;toRmct; mumnb; ntudt rfUrfUme Ce mbg cfUtht "trh; gt
W"thfU;tofuUFt;uvh r;Cqr; ;:t/gt mCe htrN fUtuJual u;:t htrN fUt tt fUhl ufUt cfUfUtu
d{nKtr"fUth ntudt ;:t/gt mux ytpVUfUt yr"fUth ntudt>WmhtrN gt/;:t mCe htrNgt, r;Cqr;gtfUtu
Wbtura; fUhl ufUt Ce cfUfUtuyr"fUth ntudt>begt=e sbt fuUbtbtubW"thfU;tofUturJl t mqra;
rfUY cfUfUtusbt fuUvrhvJ ntul uvh WmhtrN fUtumbtgturs; fUhl ufUt yr"fUth ntudt>(bwfU=bt
=tgh fUhl ufuUct=ugt vntugt fUtuRogtrgfUfUthoJtRofUhl ufuUct=Ce), cfUfUe Jn htrN mbtgturs;
fUhl ufUt yr"fUth ntudt rsmuJn Wra; mbSudt ytih rJJtmvqJofUytfUrt; fUhudt ;:t stuhtrN Wm
=trgJ fuUrl Jonl fuUrtY ytJgfUntudt>OO
8.(fU)IIW"thfU;to=] rck "fUbtt/Jtnl tytr=fUt, simt rfUrJr" fu Uyk ;do ; yvu rG; ni, mk ck r"; tr"fUtrhgt
fuUvtmyrJtkc vksef]U; fUhl uunu;wnh mkCc fUthoJtRofUhdu;:t vksefUhK fUt btK vksefUhK fUhtY
stl ufuUr=l 7 (mt;) r=l tfuUyk=h ;w; fUhdu>
9. sc fUCe Ce yvurG; ntuW"thfU;toyg vG fUe g:tura; dthkxe fUe Ce gJ:t fUhudt>
10. fUsufUt yr"fUth
gr;f{b fUerfUmeDxl t fuUDrx; ntul uvh cfUfUtugn yr"fUth ntudt rfUJn Ctrh; r;Cqr;gt
vh fUst fUh tuytih Wl fUe rcf{e fUh =uYJkyvl e cfUtgt htrN fUe Jmqte fUhuytih/gt mqal t r=Y
cdih d{nKtr"fUth ytih/gt bwshufuUyr"fUth fUt gtud fUhu>W"thfU;to(dK) cfUfUtuY;=Ttht W;
fUthoJtRofuUCtJe fUtgtoJgl nu;wmCe ytNgtYJkgtusl fuUrl rbt yvl uYxl eo/Ysx fuUv b
tr"f]U; fUh;t ni/fUh;un>
11. W"thfU;to(dK) Y;=Ttht Cqrb vh gt sntkCe r;Cqr; yJr:; ntuJntkctuzogt ;;e tdtfUh
461
CHAPTER-10
about the hypothecation, charge created in Banks favour by placing a board or a plate on
the land or wherever the security is situated with the words crops hypothecated
to.............................................................................................. Bank or in any other mode or
manner which the Bank direct from time to time.
12. That the loan shall be used only for the purposes for which it has been given.
13. Notice :
Any information/communication sent through post/courier or otherwise to the
Borrower(s) or at the address(es) last known to the bank will be treated as sufficient
service for all intents and purposes.
The contents of the Agreement have been read over and transl ated
into.........................
#
And explained to Borrower(s) and he/they having understood the
contents thereof subscribes to these presents.
IN WITNESS WHEREOF the borrower(s) has/have set his/their hand(s) to these
present on this the day and year first above written.
#
Here enter the name of the language.
Place........................................
Date..........................................
...............................................................................
Signatures/Thumb impression of borrowers
462
CHAPTER-10
ytih Wmvh IIVUmt
.......................................
cfUfUtu=]rck"rfU;OOrtFfUh gt mbg-mbg vh cfU
fuUrl =uNtl wmth rfUme yg vr; gt her; murtFfUh cfUfuUvG bm]rs; =]rck"l , Cth fuUmkck"
bytb sl ;t fUtumqra; fUhl ufuUrtY mnb; ntu;t ni/ntu;un ;:t Jal =u;t ni/=u;un>
12. rfU}UK fUt Wvgtud fuUJt Wn gtusl tfuUrtY rfUgt stYdt rsmfuUrtY gn rtgt dgt ni>
13. lturxm
W"thfU;tofUtuztfU/JtnfUmuJt gt yg:t fuUCtgb mugt cfUfUtutt; ykr;b v;uvh urM;
rfUme mqal t/vt fUtumCe ytNgtYJkgtusl tfuUrtY vgtot v mu;tbet rfUgt stl t btl t stYdt>
fUhth fUe rJMg-J;wfUtuv\Zt dgt ni ;:t
.............................................................
*byl qr=;
rfUgt dgt ni YJkW"thfU;to(yt) fUtuv fUh r=gt dgt ni ytih Wml u/Wl ttudtl uRmfUe rJMg-J;wfUtu
mbSl ufuUvat;TRl rJtuFtvh yvl un;tGh rfUY n>
RmfuUmtGe fuUv bW"thfU;to(yt) l uWvrhrtrF; r=l YJkJMofUtuRl rJtuFtvh n;tGh
rfUY n>
*gnt CtMt fUt l tb rtF>
:tl
..........................................
r=l ktfU
........................................
..........................................................
W"thfU;tofuUn;tGh/ykdwXt-rl Ntl
463
CHAPTER-10
The First Schedule (Referred to above)
Terms and Conditions :
1. That the borrower(s) will at all times maintain a sufficient quantity and market value
of the security to provide the necessary margins of security required by the bank
wherever applicable.
2. That the borrower(s) shall not except in the normal course of business but subject to
the powers of the bank herein contained, cut, remove/dispose of the security from
the place(s) wherever normally they may be kept/preserved, stored without the prior
written permission of the bank during the time any money herein mentioned shall
remain outstanding. Such security, if so required by the bank, shall be immediately
delivered to the bank.
3. That the bank without being bound to do so or being liable for any loss on account
thereof and without prejudice to the rights and remedies of suit or otherwise shall be
entitled to :
i) Without notice to the borrower(s) and at the borrowers(s) risk and expenses
enter any place(s) where the security may be kept/stored and inspect, value,
insure, dispose of and/or take possession thereof.
ii) Without prejudice to the foregoing on default of the borrower(s) in payment of
any money hereby secured or on the non-performance of an obligation on the
part of the borrower(s) or on the occurance of any circumstances in the opinion
of the bank, endangering the security, the Bank may at its option take
possession or recover and/or sell by public auction or private contract or
otherwise deal with the security and appropriate the proceeds to the outstanding
loans.
iii) Apply towards the outstanding loans any money in its hand belonging to the
borrower(s) and to recover the balance if any, of the loans notwithstanding that
all or any of the security may not have been realised.
iv) The Bank shall be entitled to settle, compromise, submit to arbitration and deal
in any manner with any rights, debts, claims of Borrower(s) relating to the
security.
464
CHAPTER-10
:b ylwmqae(Qvhrlr=o)
rlck"l YJkN;u&
1. rfUW"thfU;to(dK) cfUtht yvurG; g:tgtug r;Cqr; fuUytJgfUbtrsol fUt tJ"tl hFl ufuUrtY nh
mbg r;Cqr; fUevgtot bttt YJkctsthbqg fuUcl tY hFudt/hFdu>
2. rfUW"thfU;tofUthcthfuUmtbtg yl wf{b fuUyttJt vhk;wRmbrl rn; cfUfUeNr;gtfuUN;to"el cfUfUtu
rtrF; vqJotl wbr; fuUcdihWm:tl mu;c ;fUr;Cqr; fUefUxti;el nfUhudt, Wmul nnxtYdt/WmfUt rl vxtl
l nfUhudt, sntkvhmtbtg;&JuhFest;en/vrhhrG; fUest;eni, CkzthbhFest;eni, sc ;fUgnt
WrtrF; fUtuRohtrN cfUtgt hnude>Yumer;Cqr; fUtu, gr=cfUtht yvuGt fUest;eni, ;fUtt cfUfUtumwvw=o
fUhr=gt stYdt>
3. rfUcfUYumt fUhl ufuUrtY ctg nwY rcl t y"Jt RmfUthK =wRontrl fuUrtY =tgenwY cdih;:t Jt==trFt
fUhl ufuUyr"fUthtytihWvathtgt yg:t vhr;fqUt CtJ ztturcl t rl l rtrF; fUthoJtRofUhl ufUt nfU=th
ntudt&
i) W"thfU;to(yt) fUtumqra; rfUY rcl t ;:t W"thfU;to(yt) fUesturFb YJkgg vhYumu:tl /:tl tvh
st mfU;t ni, sntkr;Cqr; hFedRontu/CkzthbhFedRontu;:t WmfUt rl heGK fUhudt, bqg rl "tohK
fUhudt, cebt fUhJtYdt, WmfUt rl vxtl fUhudt ytih/gt WmvhfUst fUhudt>
ii) vqJtuo; rJggtvhr;fqUt CtJ ztturJl t Y;=Ttht r;Cq; rfUme"l htrN fuUCwd;tl bW"thfU;to(yt)
fuUgr;f{b vhy:Jt W"thfU;to(yt) fUtu;hVUmurfUme=trgJ fUt rl vt=l l rfUY stl uvhy:Jt
YumerfUmevrhr:r; fuUWvt ntul uvh, sntkcfUfUehtg br;Cqr; fUtuF;ht vi=t ntumfU;t ni, Jntk
cfUyvl urJfUv vhr;Cqr; vhfUst fUhudt y:Jt WmfUeJmqtefUhudt ytih/gt ttufUrl ttb tht
WmfuUrcf{efUhudt y:Jt rl seXufuUgt yg:t muRmfUt rl vxtl fUhudt ;:t RmfuUytdb mucfUtgt
}UKtfUturJrl gturs; fUhudt>
iii) RmJt; fuUntu;unwY CerfUmCegt rfUmer;Cqr; fUeWdtnel fUedRontu, yvl uttmW"thfU;tofUe
rfUmeCehtrN fUtucfUtgt }UK fuUrtY Wvgturs; fUhudt ;:t Nuv htrN, gr=fUtuRontu, fUeJmqtefUhudt>
iv) cfUmbSti;t ;g fUhl u, bg:b fuUrtY rl Ju=l fUhl u;:t r;Cqr; mumkckr"; W"thfU;to(yt) fuUrfUme
yr"fUth, }UK =tJufUturfUmeCeher; murl vxtl ufUt nfU=thntudt>
465
CHAPTER-10
4. That all the security are free and shall be kept free from any charge or encumbrance
except those in favour of the Bank.
5. That the borrower(s) shall at times keep such items of security as are of insurable
nature, insured against loss or damage by fire and other risks as may be required by
the bank and shall deliver to the bank all such policies. It shall be also lawful for but
not obligatory upon the bank to insure by debit to the borrowers (s) account(s) in
respect of the security as are of insurable nature. The proceeds of such insurance
shall at the option of the bank either be applied towards replacement of the security
or towards the satisfaction of the Banks dues.
6. That the borrower(s) shall pay all charges and taxes statutory or otherwise in respect
of the security. The Bank may also without being bound to do so, pay all such
charges and taxes at the cost of the borrower(s) by debit to the borrower(s)s
account(s).
7. That the agreement is intended to and shall operate as a continuing security for all
loans indebtedness and liabilities of the borrower(s) to the bank at all times during
the subsistence of the agreement notwithstanding :
a) The existence of a credit balance or Nil balance in the loan account(s) at any
time or any partial payment of fluctuation of accounts or
b) Any loan or any part thereof have been repaid either after demand has been
made by the bank or otherwise or has not been so repaid on demand.
8. That if the borrower(s) be more than one individual each one or any of them is/are
authorised and empowered by the other(s) of them to admit and acknowledge
his/their liability to the bank by any payment into the account(s) or by way or express
writing in any manner or otherwise and any such admission and acknowledgement of
the liability by one or more of them shall be construed to have been made on behalf
of each of them.
9. That the borrower(s), hereby gives his/their consent for the loans being recovered as
a public demand/money in terms of any legislation relating to recoveries thereof,
where such consent is necessary under any legislation.
10. (i) As a pre-condition, relating to grant of the loans/advances/other non-fund bases
credit facilities to the borrower(s), bank requires borrowers(s) consent for the
disclosure by the bank of, information and data relating to the credit facility
availed of/to be availed, by borrower(s), obligations assumed/to be assumed, by
borrower(s), in relation thereto and default, if any, committed by borrower(s) in
discharge thereof.
466
CHAPTER-10
4. rfUmCer;Cqr;gtkyct" n ytihcfUfuUvGfuUyr;rh; gurfUmeCthgt rctkdb mubw; hFestYkde>
5. rfUcfUr;Cqr; fUeYumeb=tfUtu, stucebt gtug f]Ur; fUeni, cfUtht g:tvurG; ytd ytihyg sturFbt
munwRontrl gt l wfUmtl fuU;n; cebt fUhJtYdt ;:t cfUfUtuYumemCevtprtrmgtkmwvw=ofUhudt>cfUfuUrtY
Cegn rJr"gw; ntudt vhk;wWmvhctgfUthel nntudt rfUJn cebt-gtug f]Ur; fUer;Cqr; fuUmkck" b
W"thfU;to(yt) fuUFt;u/Ft;tbl tbuzttfUhcebt fUhJtY>Yumucebt fuUytdb fUtucfUfuUrJfUv vhgt
;tur;Cqr; fUtur;:trv; fUhl ufuUrtY Wvgturs; rfUgt stYdt gt RmmucfUfUeJfUtgt htrN fUe;wr fUe
stYde>
6. rfUW"thfU;to(dK) mtkrJr"fUgt yg:t mCeCthtytihfUhtfUt Cwd;tl fUhudt/fUhdu>cfUCeYumt fUhl ufuU
rtY ctg nwY JdihW"thfU;to(yt) fuUFt;u/Ft;tbl tbuzttfUhW"thfU;to(yt) fuUFaovhYumumCeCtht
ytihfUhtfUt Cwd;tl fUhudt>
7. rfUgn fUhthrl l rtrF; ct;tfuUntu;unwY CecfUfuUr; W"thfU;to(yt) fuUmCe}UK, }UKd{;;t YJk
=ug;tytfuUrtY nhmbg YfUm;; r;Cqr; fuUv bRmfuUyr;J bhnl ufuU=tihtl rf{gtNet ntudt_
fU) rfUmeCembg }UK Ft;tbsbt htuMy:Jt IINqgOONuMfUt rJ btl hnl t y"Jt Ft;tfuUW;th-
v\ZtJ fuUyl wmthrfUmefUthfUt ytkrNfUCwd;tl fUhl t y:Jt
F) rfUme}UK WmfuUrfUmeCtd fUtugt ;tucfUtht btkd fUestl uvhgt yg:t awfUt r=gt dgt ni y:Jt
btkd fUestl uvhRmfUthawfUtgt l ndgt ni>
8. rfUgr=W"thfU;to(dK) YfUmuyr"fUgr; nt;tuWl bmugufUgt rfUmefUtu=qmhu/=qmhttht Ft;u/Ft;t
bCwd;tl fUhy:Jt rfUmeCeher; mugt yg:t v rtFfUhcfUfuUr; yvl e=ug;t fUtuJefUthfUhl u/
yr"JefUthfUhl ufuUrtY tr"f]U; YJkmN; rfUgt st;t ni ;:t Wl bmurfUmeYfUgt yr"fUtht fUedRo
YumeJef]Ur; YJkyrCJef]Ur; fuUrtY gn btl rtgt stYdt rfUJn Wl bmugufUfUeytihmufUedRoni>
9. rfUW"thfU;to(dK) Y;=Ttht Jmqtemumkckr"; rfUmerJ"tl fuUvrhug b, ttufUbtkd/"l htrN fuUv b}UK
fUeJmqtefUhl unu;wyvl emnbr; Wmr:r; b=u;t ni/=u;un sntkrfUmerJ"tl fuUy"el Yumemnbr; =ul t
ytJgfUntu>
10. (i) vqJoN;ofuUv bW"thfU;tofUtu}UK/yrd{b/yg dih-rl r" yt"trh; W"thmwrJ"t =ul umkck"ebtbtt
bcfUfUtuW"thfU;tofuUrJteg btbtufUtug; fUhl unu;wW"thfU;tofUemnbr; tt fUhl entude>
W"thfU;tofUe}UK mwrJ"t mkck"e, =ug;t, ctfUe=ug;t ;:t fUedRoaqfUmkck"emqal t fUtufUtrN; fUhl u
fUt cthubCecfUW"thfU;tofUemnbr; tt fUhudt>
467
CHAPTER-10
(ii) Accordingly, borrower(s) hereby agree/agrees and give/gives consent for the
disclosure by the Bank of all or any such;
a) information and data relating to borrower:
by borrower; and
c) default, if any, committed by borrower(s) in discharge of borrowers(s) such
and furnish to Credit information Bureau (India) Ltd. and any other agency
authorized in this behalf by RBI.
iii) Borrower(s) declare/declares that the information and data furnished by
borrower(s) to the Bank are true and correct.
iv) Borrower(s) undertake/undertakes that :
authorized may use, process the said information and data disclosed by
the Bank; and
authorized may furnish for consideration, the processed information and
and other credit guarantees, as may be specified by the Reserve Bank of
India in this behalf.
Borrower(s)
THE SECOND SCHEDULE referred to above :
All the pieces or parcel of land as detailed hereunder (specify here for identification the
details like survey number, village name etc.)
Borrower(s)
468
CHAPTER-10
(ii) ;=l wmth, W"thfU;to(dK) mnb; ntu;un/mnbr; =u;t ni rfUcfUrl l rtrF; mqal t fUtufUtrN; fUh
mfU;t ni&
fU) W"thfU;tofuUcthubmqal t YJkytkfUzu<
F) W"thfU;totht tedRo}UK mwrJ"t/testl uJttemwrJ"t fUemqal t, ;:t
d) Rm=ug;t fuUrl Jonl bfUedRoaqfUfuUcthubsimt rfUcfUWvgw; mbSu, Jn }UK mqal t gqhtu
rt. ;:t Cth;eg rhsJocfUtht tr"f]U; rfUmeCeYsmefUtuW"thfU;tofuUcthubmqra; fUh
mfU;t ni>
(iii) W"thfU;to(dK) DturM; fUhl un rfUW"thfU;totht cfUfUtu=edRomqal t mg YJkmneni>
(iv) W"thfU;toJal =u;t ni rfU_
fU) }UK mqal t gqhtu(Rkrzgt) rt. ;:t tr"f]U; fUtuRoCeYsme, cf tht =edRomqal t fUtumkf]U;
fUhmfU;t ni&;:t
F) }UK mqal t gqhtu(Rkrzgt) rt. ;:t fUtuRoCetr"f]U; Ysmemkf]U; mqal t, ytkfU\zt rfUmecfU/
rJteg mk:t ;:t yg }UK dthkxe;:t Cth;eg rhsJocfUfUeytuhmurl "torh; rfUmeYsme
fUtuYumemqal t =umfU;eni>
W"thfU;todK
Qvhrlr=o r;eg ylwmqae&
gntRmfuUl eaur=Y dY rJ;]; rJJhK fuUyl wmthfuUCqrb fuUmCeFkz gt xwfU\zu(vnatl fuUrtY mJuoGK mkgt,
d{tb fUt l tb simugtuhtfUtugntkrl r=o fUh)
W"thfU;todK
469
CHAPTER-10
THE THIRD SCHEDULE referred to above :
The herds/flock/fish catch/silk worms and cocoons, etc. Short particular whereof are given
hereunder :
Borrower(s)
THE FOURTH SCHEDULE referred to above :
The tools equipment/fixtures/boats/machines, tractor/power tiller/tubewell/electric motors/
diesel engine and other movables connected with and relating to farming/rearing of cattle
and/or flock/fishing/sericulture.
Borrower(s)
THE FIFTH SCHEDULE referred to above :
(Repayment programme for Term Loan granted)
Due date Amount of instrument
Borrower(s)
470
CHAPTER-10
Qvhrlr=o ;];eg ylwmqae&
gntkRmfuUl eaur=Y dY mkrGt rJJhK fuUyl wmthnzo/j tpfU/huNb fUex ;:t fwUfwUm&
W"thfU;todK
Qvhrlr=o a;w:oylwmqae&
f]UrMfUtgo/vNwvttl ytihgt j tpfU/bg d{nK/huNb Wvt=l musw\zunwY ytihmkckr"; ytisth/WvfUh/sw\zl th/
l tJ/bNel , x[ixh/vtJhrxth/l t fqUv/rcsteatrt; btuxh/zest Rksl ytihyg skdb J;wYk>
W"thfU;todK
Qvhrlr=o vkab ylwmqae&
(Jef]U; begt=e}UK fuUrtY awfUti;efUtgof{b)
rlg; ;theF rfU; fUehtrN
W"thfU;todK
l tux&RmVUtbofuUrnk=evtX murfUmefUthfuUJ t=-rJ J t=fuUWvt ntul ufUer: r; bRmfUt bqt ykd{usevtX ne
471
CHAPTER-10
A.-107
gq fUtucf UCO BANK
................................................
(dthkxevt fUt v)
(FORM OF LETTER OF GUARANTEE)
r=l tkfU/Date..............................
rg bntu=g,
Dear Sirs,
buht/nbthuyl whtu" vh e
.............................................................................................
e
.....................................................................................................................................
ytih
e
.....................................................................................................................................
fUtu
h0
...................................... .................................................................................................
(vgubtt)
fuU yrd{b =ul u fUtu ytvfUe mnbr; fuU r;VUtJv b/nb rl l n;tGhfU;to RmfuU tht
e
...........................................................................................................................................................
e
..........................................................................................................................................
ytih
e
...................................................................................................................................................
mu
(rsnRmbRmfuUat;TIIbwg }UKeOOfUnt dgt ni) rtrF; v bbtd rfUY stl ufuU=tur=l
vnat;TW; bqt"l h0
..............................................
ytih WmfuUgufUCtd ;:t Wmvh tu=TCq;
vqhu=ug gts fUtuawfUti;e YJk=ug htrN fUe Wdtne ytih Jmqte mumkJkr"; vqhe ttd;, Cth yth gg
fuUmgfTUCwd;tl fUe dthkxe =u;t nq/=u;un ytih ;=l wmth b/nb mkgw; YJkytd-ytd v muRmfuU
tht Yume mCe hfUb fUtu, atnuJubqt"l gt gts gt ttd;, Cth ytih gg gt aqJtuor; rfUme yg
"l rfUv bntu, ytvfUe btkd vh (g:tr:r;) ytvfUtuawfUtl uYJky=t fUhl ufuUrtY ;:t W;
}UK ytih/gt Rmdthkxe fuUrtY ytih RmfuUy"el yvl uyr"fUthtfuUrtY gr= rfUme fUth fUtu
ttd;, Cth ytih gg ytvfuUtht y=t, Wvd; gt cnl rfUY dY n ;tuWmfUt Cwd;tl fUhl ufuUrtY
YJkytvfuUyr"fUthtfuUmkhGK, vrhhGK, r;hGt gt J;ol fuUrtY ytih bwg }UKe/}UrKgtgt bwSmu/
nbmu=ug cfUtgt htrN fUe Jmqte fuUrtY fUhth fUh;t nq/fUh;un YJkJal =u;t nq/=u;t n>
In consideration of your agreeing at my/our request to advance an amount of
Rs. .................................. (Rupees .................................................................................. only)
to Mr. ....................................................................................................................................,
Mr. .............................................................................................................................. and
Mr. .................................................................................................................................. I/We,
the undersigned hereby guarantee the due repayment, two days after demand in writing by
Mr. ...........................................................................................................................,
472
CHAPTER-10
Mr. .................................................................................................................... and
Mr. .........................................................................................................................................
(herei nafter cal l ed the pri nci pal /s) of the sai d pri nci pal amount of
Rs. ............................................ and every part thereof and also the due payment of all
interest occurring due thereon and all costs, charges and expenses of and incidental to
realisation and recovery of the dues and that accordingly, I/we jointly and severally hereby
agree and undertake to repay and pay (as the case may be) on demand to you all such
amounts whether for principal or for interest or for costs, charges, expenses or for any
other moneys aforesaid as also to pay all the costs, charges and expenses that you may
pay, incur or suffer or be put to in any manner whatsoever or in any ways concerning the
said loan and/or this guarantee and your rights hereunder and for protection, preservation,
defence or enforcement of your rights and recovery of your dues either from the principal/
s or from me/us.
2. b/nb fUhth fUh;t nq/fUh;un rfUytdumubuhe/nbthe rfUme fUth fUe mnbr; fuUrcl t ytih Rm
dthkxe fuUy"el buhe/nbthe =ul =the fUturfUme Ce fUth muCtrJ; rfUY rcl t }UK fUt l JefUhK fUhl u
ytih bwg }UKe/}UKegtgt Wl bmurfUme YfUgt YfUmuyr"fUmuytd-ytd gt rfUn yg
gr; gt gtr;gtfuUmt: mkgw; v mugt bwg }UKe/}UrKgtmumkckr"; rfUn yg gr; gu
gr;gtmutt gt tt ntul uJtte rfUne r;Cqr; gt r;Cqr;gtfUtuvqKo;&gt ykN;&htufUtul u, l Jef]U;
fUhl ugt Atu\z =ul ufUe vqKorJJufUt"el Nr;gtytv brl rn; ntude>
I/We agree that you shall have full discretionary powers without any further consent
from me/us and without in any way affecting my/our liability under the guarantee to renew
the loan and to hold-over, renew or give up in whole or in part any security or securities
received or to be received from the Principal/s or any one or more of them either alone or
jointly with any other person or persons or from any other person or persons bearing the
name of the Principal/s.
3. b/nb gn Ce fUhth fUh;t nq/fUh;un ytih RmfuUtht Rmct; fUe mbr; =u;t nq/=u;un rfU
ytv Rmdthkxe fuUy"el buhe/nbthe =ul =the fUturfUme Ce fUth muCtrJ; rfUY rcl t bwg }UKe/
}UKegtfUtur=Y dY W; }UK fUe rfUn gt mCe N;tufUtuc=t mfUdugt Wmmurl bwo; gt
Wbtura; fUh mfUdugt fUtuRoYumt fUtgofUh mfUdursmfUt rJr"fUvrhKtb Wbtual fUhl t gt Nbl gt
mbSti;t fUhl t gt mbg Jef]Ur; nu;wJal =ul t gt rfUme yg fUth fUt yl wd{n fUhl t ntugt bwg
}UKe/}UrKgtgt yl bumurfUme YfUgt YfUmuyr"fUvh gt W; }UK gt rfUn r;Cqr; gt
r;Cqr;gtfuUrtY =tge rfUn gtr; gt gtr;gtvh gt bwg }UKe/}UrKgtfuUrtY r;CqfuUv
bgt mkvtrJofUv mu=tge rfUme gr; vh gt rfUn yg gr; gt gtr;gtvh =tJt Jr;o;
l n fUhl t ntu>
I/We also agree that you shall be at liberty without in any way affecting my/our
liability under this guarantee and I/we hereby give our consent to you to vary any term or
terms of your said loan to the Principal/s or to release or discharge or to do any act or
473
CHAPTER-10
omission, the legal consequence of which is to discharge or enter into any composition or
compound with or promise to grant time or any other indulgence or not to sue either the
principal/s or any one or more of them or any person or persons liable on the said loan or
any security or securities or any person liable as surety or collaterally liable for the
Principal/s or any other person or persons.
4. b/nb ytdufUhth fUh;t nq/fUh;un rfUgn dthkxe ytvfuUrtY at; r;Cqr; ntude ytih gn ;c
;fUJ]t hnude ytih CtJe ntude sc ;fUbwg }UKe/}UrKgttht ytvmurtY dY mCe }UK fUe =ug
htrN, WmfuUytl wMkrdfUytih WmfUe ctc; htrN ytih WmfuUgufUCtd fUtuatnuJubqt"l gt gts
gt ttd;, Cth ytih gg fuUv bnt, vqhe ;hn y=t l rfUgt dgt ntugt awfUtgt l dgt ntu>
I/We further agree that this guarantee shall be a continuing security to you and shall
loan to the Principal/s, either by way of principal amount or interest or costs, charges and
expenses and all and every part thereof and any of them are paid and satisfied in full.
5. b/nb ytdufUhth fUh;t nq/fUh;un rfUbwg }UKe/}UrKgtvh
................................................
h0 fuUW; }UK fUe ctc; Yume tuFt r;gt, stuytvfUe tuFt vw;fUtbyl whrG; fUe st;e ni ytih
rsl vh ;bbg fUtgoh; YumutuFufuUCthe yr"fUthe n;tGh fUh;un, rfUme Yumuyl wgtusl gt yg
fUtgoJtne bbuhu/nbthurFttVUrl atgfUmtg ntude stubwg }UKe/}UKegttht ;mbg ytvfUtu=ug
htrN fUe ctc; buhu/nbthuQvh ytvfuUtht ttgt d:t ntu>
I/We further agree that copies of accounts maintained in your Books of Accounts in
respect of the said loan of Rs. ..................................... to the principal/s and signed by your
me/us as to the amounts for the time being due by the principal/s to you in any action or
other proceedings brought against me/us.
6. bwSu/nb btkd-vt r=gt dgt mbSt stYdt gr= Jn bwSu nb mkctur";
fUh
.............................................................................................................................................
fu Uv;u
vh ztfUtht Cust dgt ntugt nt:tunt: r=gt dgt ntuytih Jn rl Jtmgt fUtgtotg fuUv;ubrfUme
fUth fuUvrhJ;ol fuUntu;unwY Ce ;:t RmfUe mqal t ytvfUtuntu;unwY Ce CtJe ntudt ytih Yumubtkd-
vt fuUztfUbzttustl ufuUg:tr:r; aticemDkxufuUct=Jn buhu/nbthutht tt rfUgt dgt mbSt
stYdt YJkfUuJt gne vgtot ntudt gr=Jn btkd vt ytvfuUrfUme yr"fUthe tht n;tGr; rfUgt dgt
ntuytih Yume ;tbet mtrc; fUhl ufuUrtY gn mtrc; fUhl t vgtot ntudt rfUbtkd-vt vh XefUv;t
rtFt dgt :t ytih WmuztfUbzttt dgt :t>
The demand in writing shall be deemed to have been given to me/us by sending
the same by post or by hand del i ver y addressed to me/us at the
address............................................................................................................ and shall be
effectual notwithstanding any change of residence or office and notwithstanding notice
thereof to you and such demand shall be deemed to be received by me/us as the case
may be twenty-four hours after the posting thereof and shall be sufficient if signed by any
474
CHAPTER-10
one of your officers and in proving such service it shall be sufficient to prove that the letter
containing the demand was properly addressed and put in the post office.
7. buhu/nbthugt nbbumurfUme YfUfuUtht n;tGrh; gn dthkrx bwg }UKe/}UrKgtgt Wl bmu
rfUme YfUgt YfUmuyr"fUfuUrtY rfUme yg dthkxe fuUyr;rh; ntude ytih Rmuytv rfUme Ce
mbg "trh; fUh mfUdu>
This guarantee shall be additional to any other guarantee for the Principal/s or any one or
more of them signed by me/us or any of us that you may at any time hold.
8. Rmdthkxe fuUrfUme Wvck" fUtufUtgtorJ; fUhl ufuUrtY b/nb g:tr:r; yvl umCe gt rfUn
yr"fUthtfUtug:tJgfUytvfuUgt bwg }UKe/}UrKgtfuUrJh ytvfuUvG byr"grs; fUh;t nq/
fUh;un>ytih b/nb fUhth fUh;t nq/fUh;un rfUbwg }UKe/}UrKgtgt Wl bmurfUme YfUgt YfU
muyr"fUfuUtht Wm}UK fUe ctc; Jt WmfuUrtY rsmfUe =ul =the buhu/nbthutht Wvgwo; v b
dthkxef]U; ni, ytvfuUmt: rfUY dY rfUme mkrJ=t brfUme fUth fuUVUuhVUth fuUrJr"fUvrhKtb muWvt
ttC fUt =tJt fUhl ufUt b/nb nfU=th l n ntuQdt/ntdu>
I/We respectively waive in you favour all or any of our rights against you or the
guarantee. AND I/We shall not be entitled to claim benefit of any legal consequences of
any variation of any contract entered into by the Principal/s or any one or more of them
with you for and in respect of the loan, the liability in respect of which is guaranteed by
me/us as aforesaid.
9. gr= Rmdthkrx fuUy"el buhe/nbthe =ul =the fUe ctc; b/nb Rmmbg gt RmbRmfuUvat;T
bwg }UKe/}UrKgtgt Wl bmurfUme YfUgt YfUmuyr"fUmufUtuRor;Cqr; tu;t nq/tu;un ;tub/
nb WmfUe ctc; ytv vh r;fqUt CtJ zttl ufuUrtY bwg }UKe/}UrKgtgt Wl bmurfUme YfU
gt YfUmuyr"fUfUe Ntu"l yGb;t gt r=Jtrtgtvl fUtumtrc; l n fUdt/fUhuduytih Yume r;Cqr;
ytvfuUrtY r;Cqr; cl e hnude ytih gn ;whk; ytvfuUvtmsbt fUe stYde>
If I/We now or shall hereinafter take any security from the Principal/s or any one or
more of them in respect of my/our liability under this guarantee, I/we will not prove in the
bankruptcy or insolvency of the Principal/s or any one or more of them in respect thereof
to your prejudice and such security shall stand as security for you and shall forthwith be
deposited with you.
10. b/nb fUhth YJkDtuMKt fUh;t nq/fUh;un rfURmdthkxe fuUy"el ytih RmfuUyl wmhK brfUme
=ug htrN fUtuy=t fUhl ufuUrtY bwSmu/nbmuyvuGt fUhl ufuUvqJoytv bwg }UKe/}UrKgtfUtur=Y dY
W; }UK fuUy"el gt WmfuUyl wmhK bytih WmfUe ctc; ytih WmfuUytl wMkrdfUrfUme =ug htrN
fUe cmqte, J;ol gt Wdtne fuUrtY bwg }UKe/}UrKgtfuUrJh rfUme fUth fUe fUtgoJtne attl ufuU
rtY ctg gt rJJN l n ntdugtrfURmfUth b/nb Yume rfUme =ug htrN fUt cmqtt, c;ol gt
Wdtne fuUrtY ytvfuUtht bwg }UKe/}UrKgtfuUrJh rfUme fUth fUe fUtgoJtne l n attY stl uvh
Ce ytvfUtuYume =ug htrN y=t fUhl ufuUrtY rsbu=th YJkytc ntuQdt/ntdu>
475
CHAPTER-10
I/We agree and declare that you will not be bound or compelled to take any proceedings
whatsoever against the Principal/s for recovery, enforcement or realisation of any of your
dues from or against the Principal/s under or in pursuance of and in respect of and
incidental to your said loan to the principal/s before calling me/us to pay such dues to you
under and in pursuance of the guarantee herein given so that I/we shall be liable and
bound to pay any such dues to you, notwithstanding that no proceedings whatsoever shall
have been taken by you against the principal/s for recovery, enforcement or realisation of
any such dues.
11. b/nb ytdufUhth YJkvwr fUh;t nq/fUh;un rfURmdthkxe fUtufUtgtorJ; fUhl ufuUrtY ytv
RmfUth fUtgofUh mfUdubtl tub/nb ytvfUt/ytvfuUbwg }UKe nq/n>
I/We further agree and confirm that to give effect to this guarantee, you may act as
12. gn dthkxe ytvfuUWthtr"fUtrhgtytih mbl w=urNr;gtfUt ttC mwrl ra; fUhudt>
This guarantee shall ensure for the benefit or our successors and assigns.
13. Rmdthkxe fuUy"el ytih RmfuUyl wmhK bstuCe "l htrN buhu/nbthutht =ug ni Wl fUt Cqd;tl
buhu/nbthutht
.............................................................
br:; ytvfuUNtFt fUtgtotg brfUgt stYdt>
All moneys whatsoever due and payable by me/us to you under and in pursuance of
thi s guarantee shal l be payabl e by me/us at your Branch Offi ce si tuated at
............................................................................................................................ .
CJ=eg/ Yours faithfully.
(vqht l tb v yGhtb)
(Full name in Block letters)
r=l tkfU/ Date
(vqht l tb v yGhtb)
(Full name in Block letters)
r=l tkfU/ Date
rxvKe&RmVUtbofuUrn=e vtX murfUme fUth fuUct= rJ J t= fuUWvt ntul ufUe r: r; bRmfUt
Note : In the event of any controversy arising out of Hindi version of this form, the
476
CHAPTER-10
Y.-107(Y)/ A-107(A)
dthkxevt
LETTER OF GUARANTEE
r=l tkfU/ Dated........................
c"fU,
gqfUtucfU
The Manager,
UCO Bank
rg bntu=gDear Sir,
Rm ct; fUtu gtl b hF;u nwY rfU ytvl u buhu/nbthu yl whtu" vh e/eb;e/
bummo
.............................................................................................................................................
,
rl Jtme
........................................................................................................
fUtu(rsmuRmbRmfu Uvat;
IIW"thfU;toOOfUnt dgt ni) l fU=e }UK/}UK gt rfUme yg Ft;ub
................................................
h.,
;fU fUt yrd{b =ul u fUe mnbr; =e ni, b/nb
..................................................................
........................................................
Y;=tht gn dthkxe =u;t nq/=u;un rfUW"thfU;toW; yrd{b mu
mkcr"; mCe rl ck"l tytih N;tufUt rl vt=l YJkyl wvttl fUhudt ytih gn Ce dthkxe =u;t nq/=u;un
rfUW"thfU;toytvfuUtht rfUY dY ytih/gt r=Y stl uJttuW; yrd{b ;:t Wmvh mbg-mbg vh
Wvra; gts fUe, sc fUCe =ug ntu, awfUti;e fUhudt ;:t W; yrd{b mumkckr"; mCe ttd;, Cth YJk
FatufUt Cwd;tl yttfUtufUhudt ytih gr= W"thfU;toW; htrN ytih/gt WmfUe ctc; =ug NuMhtrN
fUt Cwd;tl l n fUh;t ni ;tub/nb Y;=tht fUhth fUh;t nq/fUh;un YJkJal =u;t nq/=u;un rfU
ytvfuUtht btkdustl uvh W; yrd{b mumkckr"; =ug mCe bqt gt gts fUe htrN ytih W; Ft;u
fuUmc" bytvfuUtht "trh; r;Cqr; fUe hGt fUhl uytih WmuttdqhFl ub;:t W; yrd{b fuU
mc" brfUme fUth muytvfuUtht Cqd;tl rfUY dY, Wvd; gt WXtY dY mCe ttd;, Cth YJk
FaofUt Cqd;tl rcl t ytvrt fuUfUdt/fUhdu>
In consideration of your agreeing at my/our request to advance moneys to the extent
of Rs. ............................................................. in Cash Credit/Loan or any other account to
Mr./Mrs./Miss./M/s. .............................................................................................................
of..................................................... (.......................................................................................
(hereinafter referred to as the borrower) I/We............................................................
477
CHAPTER-10
........................................................ hereby guarantee the due performance and observance
by the borrower of all the terms and conditions relating to the said advance and also
guarantee the due repayment by the borrower of all moneys advanced and/or to be
advanced by you to the said borrower as aforesaid and also the due payment of all interest
accruing due thereon from time to time as and when the same shall become due and
repayable and also all costs, charges and expenses due and payable by the borrower to
you relating to the said advances and in the event of non-payment by the borrower of the
said moneys and/or the ultimate balance due in respect thereof, I/we hereby agree and
undertake to pay to you on demand without demur and money due or owing to you in
respect of the said advances either on account of the principal or interest and all costs,
charges and expenses that you may pay, incur or suffer or be put to in any manner
whatsoever in any way concerning the said advances and for the protection and
enforcement of securities held by you in the said account.
b/nb Y;=Ttht ytdufUhth fUh;t nq/fUh;un rfUW"thfU;tofUe r=Y dY rfUme mbg gt W;
yrd{b mumcr"; rl ck"l ytih N;tufuUr; rfUgudY yl wd{n fuUfUthK b/nb Rmbyk;rJo yvl e
dthkxe mubw; l n ntuQkdt/ntdytih gn rfUQvh fUnudY yl wmth W"thfU;tofUtuRmfUth fUe Aqx
=tl fUh;umbg gt Wl vh yl wd{n fUh;umbg gn ytJgfUl n ntudt rfUbwSu/nbmqra; rfUgt
stY>b/nb Y;=Ttht yvl umCe r;CqJ yr"fUthtfUt vrhgtd fUh;t nq/fUh;un YJkWnygrvo;
fUh;t nq/fUh;un stuRl tJ"tl tfuUl hnl uvh bwSu/nbY;=Ttht =e dRodthkxe fUtumbtt fUhl ufUt
yr"fUth =u;t nq>gn dthkxe W"thfU;tofUe =ug;tytfuUmt: mbrJ;eKontudt>
I/We hereby further agree that any time granted to the borrower or any indulgence
shown in respect of the terms and conditions relating to the said advances shall not
release me/us from my/our guarantee herein contained and that it shall not be necessary
for while granting any such concession or indulgence as aforesaid to the borrower to give
any notice to me/us. I/We hereby waive and surrender and my/our suretyship rights which
but for these provisions could entitle me/us to the termination of this guarantee hereby
given. This guarantee shall be co-extensive with the liabilities of the borrower.
b/nb DtuMKt fUh;t nq/fUh;un rfU}UKtYJk=ug;tytmrn; mCe ytNgtYJkWugtfuUrtY
W"thfU;toRmdthkxe fuU;n; buht/nbtht rJr"J;Ttr"f]U; Ysx btl t stYdt>
I/We declare that the borrower shall be deemed to be my/our duly authorised agent for
the purpose of this guarantee for all intents and purpose including acknowledgement of
debts and liabilities.
buhu/nbthurJh fUe dRorfUme fUthoJtRogt yg fUtgoJtne bytvfUtu;mbg =ug htrN fuUrl Kog
fuUrtY ytvfuUck"fUgt Wmmbg W"thfU;tofuUWmFt;ufuUCthe yr"fUthe gt rfUme yg
yr"fUthe tht n;tGrh; tuFufUe r; fUturl atgfUmtg btl t stYdt>
478
CHAPTER-10
A copy of the account of the borrower in your books of accounts signed by your
Manager or the Officer for the time being in charge of such accounts or by your any other
officer shall be conclusive evidence against me/us of the account for the time due to you
in any action of other proceeding brought against me/us.
CJ=eg,
Yours faithfully
rxvKe&RmVUtbofuUrn=evtX murfUmefUth fuUJ t=-rJ J t=fuUWvt ntul ufUer: r; bRmfUt bqt
479
CHAPTER-10
Y/A.-109
gqfUtucfU UCO BANK
mtJr" }UK mkck"efUhth
Agreement relating to Term Loan
yts r=l ktfU
....................................................................
20 fUtuYfUytuh e/eb;e/fwU./
bummo
....................................................................................................................................
v;t
.................................................................................................................................................
(rsmu
RmbRmfuUvat;TIIW"thfU;toOOfUnt dgt ni ytih sc ;fURmyrCgr; fUtunxtgt l stY gt fUtuRo
ct; mk=CofuUrJh ntu;c ;fURmfuUy;do; WmfuU/WmfUe Jtrhm, rl vt=fU, NtmfU, r;rl r",
Wthtr"fUthe YJkmbl w=urN;e Ntrbt mbSustYkdu) ;:t =qmhe ytih gqfUtucfUfuUcea, stucfUfUthe
fUvl e (Wvf{btfUt ysol ytih y;hK) yr"rl gb, 1970 fuUy"el drx; YfUrl drb; rl fUtg ni ytih
rsmfUt "tl fUtgtotg, 10 rJ. ti b. mhKe, fUtutfUt;t bni ;:t rsmfUe YfUNtFt yg :tl tfuU
yttJt
.....................................
bCe ni (rsmuRmbRmfuUvat;TIIcfUOOfUnt dgt ni ytih sc ;fU
RmyrCgr; fUtunxtgt l stY gt fUtuRoct; mk=CofuUrJh l ntu;c ;fURmfuUy;do; WmfuU
Wthtr"fUthe YJkmbl w=urN;e Ntrbt mbSustYdu), rl vtr=; rfUY stl uJttufUhth fuUy;rl ogb cl tY
st;un>
ARTICLES OF AGREEMENT made this ........................... day of....................................
20....... BETWEEN Mr./Mrs./Miss/M/s. ......................................................................................
of ..........................................................................................................................................
(hereinafter referred to as the Borrower, which expression shall unless excluded by or
repugnant to the context be deemed to include his/her/its heirs, executors, administrators,
representatives, successors and assigns) of the One Part and UCO Bank, a Body
Cor porate consti tuted under The Banki ng Compani es (Acqui si ti on & Transfer of
undertakings) Act, 1970 having its Head Office at No. 10, B.T.M. Sarani, Kolkata and a
branch office amongst other places at ........................................................................
(hereinafter referred to as the Bank, which expression shall unless excluded by or
repugnant to the context be deemed to include its successors and assigns) of the Other
Part.
aqrfUW"thfU;tol ur=l tkfU
....................................
fuUyvl u}UK ;tJ fuU, (RmbRmfuUvat;
II}UKfU;tofUt ;tJOOfUnt dgt ni) rsmfUe YfUr; RmfUhth fuUmt: mktl ni, fuUyt"th vh ytih
WmbWvJrKo; gtusl tfuUrtY
...........................
h. fuU}UK nu;wcfUfuUvtmytJu=l rfUgt ni>
480
CHAPTER-10
WHEREAS the Borrower has applied to the Bank for a loan of Rs. ...........................
upon the basi s of and for the purposes set forth i n the Borrowers proposal
dated............................., a copy whereof is annexed to this Agreement (hereinafter called
the Borrowers proposal).
aqrfUW"thfU;tofuUyl whtu" vh cfURmrJtuF ytih RmfUe yl wmqae bmqaec yg =;tJust
b(RmbRmfuUvat;TmtbqrnfUv muIIr;Cqr; =;tJusOOfUnt dgt ni) WvJrKoo; rl ck"l tfuU
yl wmth
..................................................
h. fUt yrd{b mtJr" }UK fuUv bW"thfU;tofUtu=ul ufuU
rtY mnb; ntudgt ni>
WHEREAS at the request of the Borrower the Bank has agreed to advance a sum of
Rs. .............................................. by way of term loan to the Borrower upon the terms set
forth in these presents and in other documents listed in the Schedule hereto (hereinafter
collectively referred to as the Security documents).
y;&yc vqJofUr:; ;gtfUur;VUtJv rl l tl wmth fUhth rfUgt st;t ni&_
1. W"thfU;tobu;tJ fUtuRmfUhth fUt ytih RmfuUy"el cfUtht r=Y stl uJttu}UK fUt
yt"th btl t stYdt ytih W"thfU;toWmby;rJo gufUrJJhK ytih rJrNr fUe mg;t fUt RmfuUtht
mb:ol fUh;t ni ;:t Wmbr=Y dY ;tJ fUtufUtgtorJ; fUhl ufuUrtY Jal =u;t ni>
The Borrowers proposal shall be deemed to constitute the basis of this Agreement
and of the loan to be advanced by the Bank hereunder and the Borrower hereby warrants
the correctness of each and every one of the statements and particulars therein contained
and undertakes to carry out the proposal therein set forth.
2. W"thfU;toRmfuUtht fUhth fUh;t ni rfURmrJtuF tht r;Cqr; =;tJustfUtuv v mugt
ytJgfUrJJGt tht Wvtk;rh; fUhl ufuUrmJtg W; }UK Rmbytih RmfUe yl wmqae bmqaec
r;Cqr; =;tJustby;rJo rl ck"l tfuUyl wmth rJrl grb; ntudt>
The Borrower hereby agrees that the said loan shall be governed by the terms
contained herein as well as those embodied in the Security documents listed in the
Schedule hereto except in so far as the security documents may expressly or by necessary
implication be modified by these presents.
3. W"thfU;tov v mufUhth fUh;t ni ytih Jal =u;t ni rfUJn W; }UK fUt Wvgtud }UKfU;to
fuU;tJ bWvJrKo; gtusl tfuUrtY fUhudt, yg rfUme gtusl fuUrtY l n>
The Borrower expressly agrees and undertake that the said loan shall be utilised
exclusively for the purposes set forth in the Borrowers proposal and for no other purposes.
481
CHAPTER-10
4. W"thfU;tofUhth fUh;t ni ytih Jal =u;t ni rfU}UKfU;tofuU;tJ bWvJrKo; rfUne rJrNrgt
fUe mg;t fUtuCtrJ; fUhl uJtte rfUme Dxl t fuUDrx; ntul uvh W; Dxl t fuUDrx; ntul ufuUmt;
r=l tfuUCe;h Jn rtrF; v bRmfUe mqal t cfUfUtu=udt>
The Borrower agrees and under takes to noti fy the Bank i n wri ti ng of any
circumstances affecting the correctness of any of the particulars set forth in the Borrowers
proposal within seven days after occurrence of any circumstance.
5. W"thfU;tocfUfUtul eaurtFe ;theFtfUtuYJkrfU;tb}UK fUe awfUti;e fUhudt&_
The loan shall be repayable by the borrower to he Bank on the dates and by
instalments mentioned hereunder :
awfUti;eylwmqae/ Repayment Schedule
6. W"thfU;toRmcea gts fUt Cw d;tl gq fUtucfUfUebq t W"th =h stuRmmbg
..............................
% r; JMoni mu
................................
% r;JMoyr"fUfUe =h vh stugql ;b
..............................
% r;JMontudtu,
...............................
yk;htt vh fUhudt>vhk;wcfUJrJJufUtl wmth gt Cth;eg rhsJo
JfUtht mbg-mbg vh sthe rfUY stl uJttur=Ntrl =uoNtfuUyl wmth Wvgqo; gts-=h fUtumkNtur"; fUh
mfU;t ni gt c\Zt mfU;t ni rsmfUe mqal t W"thfU;tofUtu=e stYde ytih W"thfU;toRmfuUtht gts-
=h brfUY stl uJttumkNtu"l YJkJ]r fuUr; yvl e mnbr; =u;t ni ;:t Rmmnbr; fUt gn y:o
tdtgt stYdt rfURmfUth mkNtur"; gt Jro; gts-=h fUt WtuF RmfUhth brfUgt dgt :t ytih
W"thfU;toWmfUt Cwd;tl fUhl ufuUrtY mnb; :t ytih WmfuUtht gn hrG; ni>
The Borrower shall in the mean time pay interest @................... % p.a. above the
UCO Bank Prime Lending Rate which is at present................... % p.a. subject to minimum
rate of interest of................% p.a. with.................. rests. Provided, however, that the above
rate of interest may be revised or increased by the Bank either in this sole discretion of
which notice shall be given to the Borrower or in accordance with the directives of Reserve
Bank of India, issued from time to time and the Borrower hereby agrees to such revision
and increase in the rate of interest and this Agreement shall be construed as if such
revised or increased rate of interest were mentioned herein and agreed to be paid by the
Borrower and are hereby secured.
7. gr=Qvh WrtrF; bqt"l gt gts fUe rfUme rfU; fuUCwd;tl bgr;f{b ntu;tucfU, Wm
htrN vh rsmfuUmc" bgr;f{b nwyt ntu, gr;f{b fUe ;theF muCwd;tl gt Jmqte fUe ;theF ;fU
rhsJocfUfUe =h mu
...................
% yr"fUfUe =h vh stugql ;b
.................................................
% r;JMontude gt yg Yume =htvh stumbg-mbg vh }UKfU;tofUtumqra; fUe stY, gts Ctrh;
fUhl ufUt nfU=th ntudt>
In case there is any default in the payment of any of the instalments either of the
rate of................. % over the Reserve Bank rate subject to the minimum of................... %
482
CHAPTER-10
per annum or at such other rates as may be notified to the Borrower from time to time on
the amount of such default from the date of default till payment or realisation.
8. cfUtht =ug ;:t tg ytih cfUtht tt fUtuRoCe "l Rmv btdtgt stYdt simt rfU
cfUmbg-mbg vh yvl uvqKorJJufUmuykr;b v murl "torh; fUhudt (rmJtg RmfuUrfUcfURmu
rfUme Wak; Ft;ub;c ;fUYJkWmher; musbt fUhudt simt rfUJn mbg-mbg vh rl "torh;
fUhudt)>
Wvgqo; vh r;fqUt CtJ zttucdih tt "l fUt rJrl gtud rl l rtrF; her; murfUgt stYdt_
i) :b;&, vrhmbtt nstol tytih ct= fuUgts fuUrtY (yCtrh; gts mbu;)
ii) r;eg, Ctrh; gts fuUrtY
iii) ;];eg;&cfUtht rf Y dY Fatu, Ctht;:t ttd;tufuUrtY ytih
iv) yk;;&cfUtgt bqt"l fuUrtY>
Any money due and payable to the Bank and received by the Bank shall be applied
following manner :
interest);
9. IIsc ;fUcfUfUtuW"thfU;totht mCe htrNgtfUt Cwd;tl l n ntust;t n, stuy;e;, J;obtl
y:Jt CrJg fUe, Jt;rJfUy:Jt ytfUrbfUhtrN ntu, y:Jt rsl fuUrtY W"thfU;tobqt v mu
y:Jt r;CqfuUv bRmfuUy"el y:Jt yg:t Wth=tge ntu, y:Jt ntu;t ntu, W"thfU;toRmct;
vh mnb; ntu;t ni rfUcfUtht W"thfU;tofuUtuFufUe y:Jt WmfuUFt;ufUe htrN vh y:Jt WmfuU
rfUme Ft;uvh rfUme Ce her; y:Jt gtusl murfUme Ce mbg "trh; mCe r;Cqr;gt;:t/htrN vh
d{nKtr"fUth ;:t/y:Jt bqshufUt yr"fUth cfUfuUvtmntudt>W; r;Cqr;gt;:t/y:Jt "l bmu
W"thfU;tofuU W; =trgJty:Jt =ug;tytfuUWbtual fuUrtY cfUJ;kt ntudt>;:t begt=e
sbthtrNgtfuUbtbtub, atnuJuCwd;tl fuUrtY vrhvJ nwRontuy:Jt l n, W"thfU;tofUtul turxmr=Y
rcl t (ct= =tgh fUhl uy:Jt fUtuRorJr"fUfUtgoJtne fUhl ufuUvqJoy:Jt vat;) stuCe her; Wm
Wra; tdu, WmmuRl fUt rJrl gtusl y:Jt Jmqte fUe st mfuUde>cfUm=TCtJ mutfUrt; WmhtrN
fUt bwsht fUh mfuUdt stuWmfuU=trgJ fUe htrN ntude>OO
483
CHAPTER-10
Until payment is made to the Bank of all the amounts, whether past present or
borrower may be or become liable hereunder or otherwise and whether as principal or
surety, the borrower agrees that the Bank shall have a lien and/or right of set off on all
securities and/or monies whatsoever held at any time by the Bank on account of or to the
credit of the Borrower in or for any account or manner or purpose howsoever. The Bank
shall be at liberty to discharge the said obligations or liabilities of the borrower out of the
said securities and/or monies, and in case of term deposits, whether the same have
matured for payment or not, and may appropriate or realize them in the manner though fit
by it and without notice to the Borrower (and whether before or after filing suit or taking
any legal proceedings). The Bank may set off an amount estimated by it in good faith to
be amount of that obligation.
10. Rmbgt r;Cqr; =;tJus brfUme ct; fuUntu;unwY Ce mvqKoyrd{b ;fUtt W"thfU;totht
cfUfUtu=ug ntudt YJkcfUrl l rtrF; Dxl tytbmurfUme YfUfuUDrx; ntul uvh r;Cqr; Jr;o;
fUhtl ufUt nfU=th ntudt, g:t&_
Notwithstanding anything herein or in the security documents contained the whole
advance shall become forthwith due and payable by the borrower to the Bank and the
Bank will be entitled to enforce its security upon the happening of any of the following
events, namely :
(fU) y=tgde fUe ;theF fUtubqt"l fUe rfUme rfU; fuUy; hnl uvh WmfuUCwd;tl fuUrtY<
(a) Any instalment of the principal moneys being unpaid on the due date for
payment thereof:
(F) atnuytivatrhfUgt Ji" v mubtkd fUe dRontugt l n, rfUme gts fuU=ug ntustl u
fuUvat; ;el bnel u;fUy=t gt cfUtgt hnl uvh<
(b) any interest remaining unpaid and in arrears for a period of three months, after
the same shall have become due whether formally or legality demanded or not:
(d) Rl rctuFtytih/gt W"thfU;tofUe :tvl t ytih/gt r;Cqr; =;tJus by;rJo rl ck"l
ytih N;tuy"Jt yrd{b mumkckr"; yg rfUme rl ck"l gt N;tufuUvttl gt yl wvttl
bW"thfU;totht rfUme fUth bu, Ckd gt gr;f{b rf Y stl uvh<
(c) the Borrowers committing any breach or default in the performance or
observance of the terms and conditions contained in these presents and/or the
Borrowers proposal and/or the security documents or an, other terms or
conditions relating to the advance:
484
CHAPTER-10
(D) W"thfU;totht yvl u}UK=t;tytbfUtuRoXnhtJ gt Nbl fUhl uvh gt r=Jtrtgtvl fUt
(d) the Borrowers entering into any arrangement or composition with its creditors
or committing any act of insolvency:
(E) W"thfU;tofUe vqhe mvrt gt WmfuUrfUme Ctd vh fwUfUeogt fUh:bTfuUyt=uN sthe ntul u
vh<
the Borrowers property;
(a) W"thfU;to(gr= Jn fUtuRofUvl e ntu) mbtvl fUe r:r; bntu(mbtbutl gt vwl rl obtoK fuU
gtusl t:ofuUrmJtg)<
(f) the Borrowers (if a Company) going into liquidation (except for the purpose of
amalgamation or reconstruction);
(A) W"thfU;tofUt (gr= Jn fUtuRoVUbontu) fUtuRoCtde=th r=Jtrtgt gtgrl Keo; nwyt ne gt
r=Jtrtgt }UKe fuUyl w;tuMfuUrtY rfUme rJr" fUt ttC WXt hnt ntu<
(g) any of the partners of the Borrower (if a firm) being adjudicated insolvent or
taking advantage of any law for the relief of insolvent debtors;
(s) W"thfU;tofUe vqhe mvrt gt WmfuUrfUme Ctd fUe ctc; rhmeJh rl gw; ntul uvh<
(h) a Receiver being appointed in respect of the whole or any part of the property
of the Borrower;
(S) W"thfU;tofUthtucth Atu\z hnt ntugt WmfuUfUthtucth Atu\zl ufUe ytNkfUt ntu<
(i) the Borrower ceasing or threatening to cease, to carry on business;
(@) Yume vrhr:r;gtkWvt ntul uvh stucfUfUtu=e dRor;Cqr; vh r;fqUt CtJ zttl u
Jtte ntgt Wmul wfUmtl vnwat;e ntgt mkfUx bztt;e ntgt WmfuUbqg fUtufUb
fUh;e nt<ytih
(j) the occurrence of any circumstance which is prejudicial to or impairs or imperils
or depreciates the security given to the Bank; and
(x) Yume Dxl t Drx; ntul ugt vrhr:r; fuUWvt ntul uvh stuW"thfU;tofuU}UK awfUtl ufUe
Gv;t vh rfUme fUth fUt r;fqUt gt rJhtu"e CtJ ztt;e ntugt zttl ufUe ytNkfUt ntu>
(k) the occurrence of any every of circumstance which would or is likely to
repay the loan.
485
CHAPTER-10
Wvgwo; bmufUtuRoDxl t Drx; nwRoni gt l n, Rmmkck" bcfUfUt rl Kog ykr;b ytih
W"thfU;tovh ctgfUthe ntudt>
11. W"thfU;to, cfUfUe rtrF; mvr; fuUrcl t Yumuyrd{b fUe ctc; cfUfUe =e dRor;Cqr; vh
rfUme fUth fuUCth, "thKtr"fUth gt yg rJtkdbtfUtum]sl l n fUhudt gt Yume r;Cqr; vh yg
rfUme vGfUth gt gr; fuUvG brfUme rn; fUt m]sl l n fUhudt>
The Borrower shall not, without the written consent of the Bank, create in any
manner any charge, lien or other encumbrance on the security given to the Bank in
respect of such advance or create any interest on such security in favour of any other
party or person.
12. W"thfU;tocfUtht Wmur=Y dY }UK-yrd{btfUe vqJoN;ofuUv bY;=Ttht gn mnbr; =u;t
ni rfUgr=Jn rl g; ;theF/;theFtfUtu}UK/yrd{btfUe awfUti;e y:Jt WmfuUgts fUe awfUti;e y:Jt
}UK fUe rfUme Ce mnb; rfU; fUtuawfUtl ubaqfUfUh;t ni ;tucfU;:t/y:Jt Cth;eg rhsJocfU
fuUvtmgn yrJNurM; yr"fUth ntudt rfUJuaqfUfU;tofuUv bWmfUt l tb y:Jt fkUvl e/VUbo/RfUtRo
;:t RmfuUrl =uNfUt/Ctde=tht/JJCtrhgtfuUl tb Wmher; muytih btgb mufUx fUhy:Jt fUtrN;
fUh, rsmucfUy:Jt Cth;eg rhsJocfUyvl uvqKorJJufUmuWra; mbS>
The borrower hereby agrees as a pre-condition of the loan advances given to him by
the bank that in case he commits default to the repayment of the cash advances or in the
repayment of interest thereon or any of the agreed instalment of the loan on due dates,
the bank and/or the Reserve Bank of India will have an unqualified right to disclose or
publish his name or the name of the company firm/unit and its directors/partners/proprietors
as defaulter in such manner and through such medium as the bank or Reserve Bank of
India in their absolute discretion may think fit.
13. (i) W"thfU;tofUtur=Y stl uJttu}UK/yrd{b/yg dih_rl r" yt"trh; }UK mwrJ"tytfuUrtY YfU
vqJoN;ofuUv cfUfUtuW"thfU;tomuRmct; fUe mnbr; tt fUhl t she ni rfUJn
W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkckr"; mqal t ytih
ytkfU\zu<W"thfU;totht "trh;/"trh; fUe stl uJtte ;mkck"e =ug;tytytih WmfuUvttl b
W"thfU;totht fUe dRoaqfU(gr= fUeRontu) fUtufUx fUh mfU;t ni>
(ii) ;=l wmth W"thfU;toY;=Ttht Jef]Ur; ytih mnbr; =u;t ni rfUcfUgr=Wra; ytih ytJgfU
mbSu;tu}UK mqal t gwhtu(Cth;) rt. ytih RmfuUrtY Cth;eg rhsJocfUtht tr"f]U;
F) W"thfU;totht tt fUe dRo/tt fUe stl uJtte }UK mwrJ"tytmumkJkr"; mqal t gt
ytkfU\zu, ytih
486
CHAPTER-10
(ii) W"thfU;togn DtuMKt fUh;t ni rfUWmfuUtht cfUfUe =e dRomqal t ytih ytkfU\zumg
ytih mne n>
fU) }UK mqal t gqhtu(Cth;) rt. ytih Rm;hn mutr"f]U; fUeRoYsme cfUtht fUx
13. (i) As a pre-condition, relating to grant of the loans/advances/other non-fund based
credit facilities to the borrower, bank requires borrowers consent for the
disclosure by the bank of, information and data relating to the credit facility
availed of/to be availed by borrower, obligations assumed/to be assumed by
borrower, in relation thereto and default, if any, committed by borrower in
discharge thereof.
(ii) Accordingly, the borrower hereby agree and give consent for the disclosure by
the Bank of all or any such;
(a) information and data relating to borrower;
(b) the information or data relating any credit facility availed of/to be availed
by borrower; and
(c) default, if any, committed by borrower in discharge of borrower such
and furnish to Credit Information Bureau (India) Ltd., and any other
agency authorised in this behalf by RBI.
(iii) The Borrower declares that the information and data furnished by borrower to
the Bank are true and correct.
(iv) Borrower undertakes that :
authorised may use, process the said information and data disclosed by
the Bank; and
authorised may furnish for consideration, the processed information and
and other credit guarantees, as may be specified by the Reserve Bank of
India in this behalf.
487
CHAPTER-10
14. c fUfu Unh yl w htu " vh W"thfU;toc fUyti h Wmfu UyrCfU;to , yr"fUthe, fUbo athe, mu JfUgt l tbrl =u o rN;e
fUtugn mwrl ra; fUhl ufuUrtY rfUW"thfU;tol uyrd{b fUe N;tufUt mgfUv muyl wvttl rfUgt
ni gt l n, yvl uvrhmh, dtu=tb, fUthFtl t ytih yvl e tuFt-vw;fUtfuUrl heGK fUe yl wbr; =udt>
The Borrower shall, upon every request of the Bank, allow the Bank and its agent,
officers, employees, servants or nominees to inspect the Borrowers premises, godown,
factory and Borrowers books of account for ensuring that the Borrower has duly complied
with the terms of the advance.
15. W"thfU;to}UK fUe N;tufuUmgfUyl wvttl fuUmkJk" bcfUtht yvurG; mCe stl fUthe
m;tuMsl fUv bWmfuUmbG ;w; fUhudt ytih sc Ce fUCe cfUW; }UK fuUmne Wvgtud fuU
cthubv;t tdtl ufuUrtY fUtuRoCe ytJr"fUrhvtuxogt mqal t rsmrfUme Ce v bytih rsmrfUme
Ce rJJhK mrn; btkduJn cfUfuUmbG ;w; fUhudt>
The Borrower will furnish the Bank with all such information as the Bank may require
for the Banks satisfaction as to due compliance of the terms of the loan and all such
periodical reports and information at such times, in such forms and containing such
particulars as the Bank may call for, for the purpose of ascertaining the result of the
utilisation of the said loan.
ylwmqae/ SCHEDULE
(cfUtht W"thfU;tomutt mCe r;Cqr; =;tJustfUe rJrNrgtfUtumkrG; v mugntkrtFu)
(here give brief particulars of all security documents obtained by the Bank from the borrower)
RmfUemtGefuUv bW"thfU;tol uRmfUhth fUtuWvrhrtrF; r=l , bnel uYJkJMobrl vtr=;
rfUgt>
IN WITNESS WHEREOF the Borrower has executed this Agreement the day, month
and year above written.
(W"thfU;tofuUn;tGh)
488
CHAPTER-10
FR. 2 (Revised)
UCO BANK
.................................................. BRANCH
Irrevocable Documentary Credit Issuing Banks Credit No.
Applicant Beneficiary
Advising Bank Amount not exceeding :
In Figures :
In Words :
Expiry Date :
For Shipment : ....................................
For Negotiation : .................................
at the counters of Advising Bank
To
The Manager,
.......................................... Bank
.......................................... Branch
Please open by
Mail/ Airmail
Cable at urgent Ordinary rate /
an Irrevocable Documentary Credit available
at the aggregate sum not exceeding .............................................................................. by
negotiation/acceptance/payment of beneficiarys right/.............................................. days
usance drafts drawn on ....................................................................... and accompanied by
(name & address)
489
CHAPTER-10
1. Signed Commercial Invoices for a value not exceeding the draft amount quoting
i mpor t l i cence No. ............................. and cer ti fyi ng goods are per order/
i ndent...................................... Coveri ng consi gnment
of............................................................................... . The gross FOB/CIF/C&F value of
the goods before deduction of Agents Commission, if any, must not exceed the credit
amount.
2. Certificate of (Name of Counter) origin issued by a Chamber of Commerce.
3. Full set, signed, Clean, On Board, Ocean Bills of Lading of a Conference Line
Vessel made out to order and blank endorsed marked Freight prepaid/freight payable
at destination and notify Bank-full address) and (importer full address) L/C. No., and
date evidencing current shipment of merchandise stated above.
Short from Bill of Lading and Third Party Bill of Lading or document produced by
reprographic process/computerised system/carbon copies marked original are not
acceptable.
3.a) Airway Bills/Air consignment notes addressed to (bank) for account openers indicating
letter of credit number and marked Freight Prepaid/Payable at destination. Airway
Bills/Air consignment notes must indicate flight number and date.
4. Lloyds Certificate that carrying steamer is seaworthy and not more than 15 years old.
5. Marine Insurance Policies/Certificate dated not later than the date of Bill of Lading
unto order and blank endorsed for 10% over invoices value covering Institute Cargo
Clause (A). Institute War Clause (Cargo) and Institute Strikes Clause (Cargo),
Warehouse to Warehouse Clauses with claims payable in India irrespective of
percentage. Transhipment risks must be covered if goods are subject to transhipment.
6. Test Certi fi cate/Inspecti on Cer ti fi cate dated........................ and i ssued
by........................ specifying date content wording etc.
7. Packing List with the same details as in No. 6 above.
8. Certificate by........................, certifying that the goods have been loaded On Board
the vessel.
Shipment/Despatch should be effected from................... to (specify port). Bill of
Lading must be dated not later than................. nor prior to the date of this credit.
Bills of exchange must be dated and negotiated not later than.............................. days
after the date of Shipment/Despatch, in any case not later than the expiry date of
the credit.
490
CHAPTER-10
Transhipment is permitted/prohibited.
Part-shipment is permitted/prohibited.
Additional Conditions :
1. All bank charges outside India are for beneficiary/Openers account.
2. A transport document which is produced :
(a) by reprographic system or
(b) by or as a result of automated or computerised systems or
(c) as carbon copy
will not be accepted as an original document even if it is marked as original or
appears to have been authenticated.
3. The transport document :
(a) must contain all the conditions of carriage on the original document
(b) must not indicate the place of final destination as being different from the port
of discharge
(c) must not contain the indication intended or similar qualification is relation to
the vessel or other means of transport or port of leading or port of discharge
(d) must be issued by the carrier or his agent and not by any freight forwarder
(e) must not contain a provision the goods may be carried on deck.
4. LASH transport documents are not acceptable.
5. Transport documents bearing reference by stamp or otherwise to costs additional to
the freight charges are not acceptable.
6. Short from or blank-back transport documents are not acceptable.
7. A transport document bearing a date of issuance prior to that of the credit is not
acceptable.
IN CONSIDERATION of your opening the above credit. I/We hereby agree and
undertake as follows :
1. I/We hereby agree and undertake to accept and pay all bills of exchange drawn or
purported to be drawn pursuant to the terms of the credit and take up and pay for
491
CHAPTER-10
all the documents negotiated thereunder in accordance with the terms thereof, as
also for any disbursement made or liability incurred by you for my/our account under
the Credit, together with interest, costs, charges and expenses due you in respect
thereof as hereinafter mentioned.
2.i) I/We further agree to pay to you interest on the amount(s) payable in respect of my/
our liability under the Credit, at the rate of................... per cent per annum over the
Reserve Bank of India rate subject to a minimum of....................... per sent per
annum or at such other rate as may be prescribed by Reserve Bank of India from
time to time for advances to non-priority sectors.
ii) The aforesaid rate of interest shall however be applicable only during the period from
the date of negotiation of the bill/documents under the Credit up to and inclusive of
the date immediately preceding the date of payment by me/us or the date of
crystallisation of my/our liability on the foreign currency bill pursuant to Clause 5(i)
below, whichever is earlier, after which interest shall be payable at the rate stipulated
in the said Clause 5(i).
3. I/We further agree to pay to you on demand (i) the charges that may be levied as
per the Foreign Exchange Dealers Association of India Rules in force from time to
time for any early/late delivery of the relevant foreign exchange/currency under the
Forward Exchange Contract, if any, booked by me/us and (ii) the commission or
handling charges at the rate of 0.15% on the amount of the bill(s) drawn under the
Credit.
4. I/We also agree to pay to you on demand, all costs (legal) costs on full indemnity
basis) customs duty, penalty, demurrage, storages charges, clearing and forwarding
charges and all other charges and expenses which you may be put to or suffer or
incur in connection with the goods and or the documents of title to goods covered by
the Credit including for re-shipment thereof for any reason whatsoever, or in the
exercise or enforcement of any right or power hereby conferred or otherwise
howsoever, and further agree and undertake to hold you safe and harmless and keep
you indemnified against any claim, action or proceeding made or brought against you,
your correspondents or agents, as also against any liability or loss incurred or
suffered by you, your correspondents or agents by reason of your having established
the Credit pursuant to my/our application or otherwise howsoever in the premises.
5. i) If I/We fail to make due payment to you of a sight bill on its presentation or a usance
bill on the date of its maturity, which is drawn or purported to be drawn under the
Credit and expressed to be payable in a foreign currency, then you shall be at liberty
without prejudice to your rights hereunder to crystallise my/our liability on the foreign
492
CHAPTER-10
currency bill Indian Rupees on the 10th day after the date of receipt of documents
by you under the Credit in the case of sight bill remaining unpaid till then, or on the
date of maturity in the case of a usance bill, whereupon I/We shall be liable to pay
to you the Indian Rupees equivalent of such foreign currency amount as calculated
at the rate of exchange mentioned below, together with interest thenceforth at the
rate of................... per cent per annum with quarterly rests, or at such other rate and/
or with such other rests as may be notified by you from time to time, until payment
or realisation, and all costs, charges and expenses payable by me/us hereunder.
ii) The rate of exchange applicable to such conversion of the foreign currency amount
into Indian Rupees shall be
a) your applicable bill selling rate prevailing on the date failing on the 10th day
after the date of receipt of documents by you under the Credit in the case of a
sight bill or on the date of maturity in the case of a usance bill Provided
However that if the relevant rate of exchange is not quoted or available for any
reason on such 10th day in the case of sight bill or on the date of maturity in
the case of a usance bill, then the rate prevailing on the immediately next
working day when such rate shall be quoted or be available, shall be the
applicable rate of exchange, or
b) the forward exchange contract rate in case a forward exchange contract has
been booked by me/us with you.
iii) The date of receipt of documents by you under the Credit as registered in your
record shall be conclusive and binding on me/us.
iv) I/We confirm that crystalisation of my/our liability on the foreign currency bill by you
and the charging/payment of interest at a higher rate as aforesaid shall not be
deemed to create any right in me/us to keep any bill unpaid when due.
6. I/We further agree that you shall a pledge upon all goods and documents of title to
goods and other documents covered under the Credit which may have been already
delivered or shall be hereafter delivered into your possession or into the possession
of your agents by me/us or by any person, firm or company on my/our behalf as a
result of your opening the Credit or in connection with the transaction thereunder. The
said goods and the documents shall be deemed to be so delivered in pursuance of
my/our this agreement to pledge them to you as security for all payments which may
be made by you or your correspondents or agents under the Credit for my/our
account as also for any liability whatsoever incurred or which may be hereafter
incurred by you or your correspondents or agents as a result of the opening of this
Credit, together with interest, costs, charges and expenses as hereinabove mentioned.
493
CHAPTER-10
7. In the event of my/our committing a default in making due payment of any bill drawn
or purported to be drawn under the Credit or in making reimbursement on demand
of any payment made by you for my/our account in respect of any liability that may
be suffered or incurred by you or your correspondents or agents under or in
connection with the Credit, then you shall be entitled without prejudice to any of your
rights and without notice to me/us (which I/We hereby expressly waive), to sell the
goods covered under the credit (the said goods) whether before or after their arrival,
either by public auction or tender or by private contract and subject to such conditions
as you may deem fit to impose, or otherwise dispose of or deal with the said goods
or any part thereof and or with the relative documents of title to goods in any manner
whatsoever, without being bound to exercise any of these powers or liable for any
loss in the exercise or non-exercise thereof. The net proceeds realised from sale of
the said goods or transfer of any document of title, remaining after deducting there-
from the costs and expenses of and incidental to such sale or transfer shall be
applied in or towards payment or satisfaction of the amount(s) due to you in respect
of any payment or disbursement made by you under the Credit for My/our account,
and interests thereon and all costs, charges and expenses as hereinabove mentioned.
I/We agree to accept Banks account of sale or realisation as conclusive evidence
both in and out of court as to the amounts realised and expenses incurred, and to
pay forthwith any shortfall or deficiency remaining after such application. I/We further
agree that you shall not be liable to me/us for any loss which may occur pending
sale or disposal of the goods and/or documents of title to goods, whether by reason
of theft, damages, deterioration or decay of the goods or depreciation in the value
thereof or otherwise whatsoever be the cause.
8. I/We agree to keep the said goods further insured from the time of expiry of
insurance cover under the initial policy or policies of insurance, against all risks which
are normally covered for goods of the nature purchased under the Credit as also
against such other risk(s) as may be required by you, and in the event of my/our
failing to do so, you shall be at liberty so insure the said goods at my/our cost and
expense without prejudice to your rights hereunder. Until all your dues in respect of
the credit are paid in full, I/We agree to pay you forthwith all moneys if received by
me/us under any policy or policies of insurance and until payment to you of such
insurance moneys. I/We undertake to hold the same in trust for you.
9. I/We further agree and undertake to sign, execute and deliver to you from time to
time on demand made by you, such further or other deeds, documents and writings
and do all such acts, matters and things as may be required by you for better
perfecting your title to the said goods and the documents covered under the Credit
494
CHAPTER-10
and/or to render the same readily saleable or transferable by you to any purchaser(s)
at all times.
10. It is understood that the transmission of all instructions and communications under
the above Credit and the shipping of documents and goods thereunder is entirely at
my/our risk. You and your correspondents or agents shall not be responsible for any
error or delay in such transmission or loss or delay in delivery of the documents or
the goods nor shall you or your correspondents or agents be liable in any respect
beyond ensuring that the bill(s) drawn under the Credit and relative documents
covered thereunder purport to comply with the terms and conditions of the Credit.
11. I/We have made adequate arrangement for retiring the bills under the Credits and do
not contemplate to seek any financial assistance from you for the purpose.
12. I/We agree to the negotiation of the drafts drawn under the Credit being confined to
your branches or agencies or to any bank acceptable to you.
13. I/We confirm that the goods described above are covered under my/our below
mentioned Import Licence.
14. I/We enclose for your perusal :
i) Order together with the order confirmation of overseas supplier or
ii) Proforma Invoice of overseas supplier duly countersigned by us or
iii) Indent/Offer from overseas supplier or his authorised agent together with the
exchange control copy of the relative import licence.
I/We undertake to submit to you the exchange control copy of the relative Customs
Bill of Entry after clearance of the said goods.
15. This application shall be deemed to have been accepted and the Credit deemed to
have been established when written advise there has been sent to the beneficiary.
16. I/We agree and confirm that this Credit may be amended and/or modified by you in
your absolute discretion, including for an increased limit, on our giving you written
instructions for the same and in such an event, such amendment/modification will be
deemed to form part of this Credit application and will be governed by the terms
hereof and I/We agree, covenant, record and confirm that I/We shall be bound by the
same as if such amendment/Modification including the increased limit had originally
constituted the term of this Credit.
17. This Agreement shall be binding upon me/us, my/our heirs, executors and
495
CHAPTER-10
administrators/successors and shall enure to the been of and be enforceable by you,
your successors, transferees and assigns.
EXPORT AS OTHERWISE EXPRESSLY STATED TO THIS CREDIT IS TO OPENED
SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY
CREDITS (1983 REVISION) AS CONTAINED IN THE INTERNATIONAL CHAMBER OF
COMMERCE PUBLICATION NO. 400 AS AMENDED FROM TIME TO TIME.
License No. Dated
for Rs. valid upto :
Date
Yours faithfully,
Signature
496
CHAPTER-10
FR-126
PACKING CREDIT FORM
UCO BANK
..................................... Branch
Dear Sirs,
This is to put on record that you have, at my/our request agreed at your discretion to
advance me/us sums upto the limit of Rs. ......................... and in consideration thereof we
hereby undertake and agree as follows :
1. That I/we shall utilise the above advances in the purchase of goods specified in
schedule below and for no other purpose.
2. That the said goods will either be shipped by me/us to foreign buyers under
approved letter of Credit or subject to banks consent in writing without letters of credit or
be sold in India. Until the goods are shipped or sold and delivered as aforesaid, I/We shall
store them at such places and in such manner as you may from time to time approve.
3. In the case of goods intended to be shipped abroad.
a) I/We shall as soon as they are shipped hand over to you duly endorsed
and/or negotiated in your favour drafts, bills of landing, invoices and other
documents required for negotiation of foreign bills and/or those called for
under letters of Credit if any in respect of the said goods to be held by you
as security for your advances with full power and authority to you to realise
either yourselves or through your agent the proceeds thereof and to
appropriate the same towards the above advances or any other sum or
sums that may for the time being remain due by me/us to the Bank on any
account whatsoever.
b) Until I/We make over to you the Bills of Lading etc. as mentioned in the
preceding paragraph. I/We shall hold the moneys and/or the goods
purchased therefrom and/or the shipping and other documents in respect
thereof on your behalf and as trustees for you and you will have the first
lien over the same for your dues and be entitled at any time at your
497
CHAPTER-10
discretion to call upon me/us to make over the same to you and to take
possession thereof notwithstanding anything to the contrary herein
contained.
4. In the case of goods intended to be sold in India, they shall as from the time
they are delivered to me/us or the property therein passes to me/us be and remain
hypothecated and/or pledged with you until they are redeemed by me/us.
5. The Bank will be entitled at any time at its discretion to call upon me/us to refund
the above advances and in default of payment thereof with interest and other charges the
Bank will be entitled at its discretion to sell the said securities at such time and in such
manner and whether by public auction or by private treaty and with or without any notice
to me/us as it may think it.
6. I/We shall keep the goods purchased as aforesaid insured against fire and all riot
risk to them to value and to hand over to the Bank on receipt all moneys received from
the insurance under the policy effected by me/us such policy being in the meantime held
by me/us as trustee for the Bank and to be transferred to the Bank at any time on
demand.
7. I/we further declare that I/we shall not create any lien or charge against the said
goods or otherwise encumber the same.
8. That the rights, powers and authorities given to the Bank under these presents
shall be in addition to all the rights and powers the Bank will have against me/us in
respect of the said advances and also in addition to all other rights and powers the Bank
will have as the mortgagee and/or pledgee of the above goods.
SCHEDULE
Yours faithfully
498
CHAPTER-10
ztfUbtrK; Ym-14
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...................................
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..........................
20
muJt b
..............................................................................
.........................................................................
..................................................................
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499
CHAPTER-10
UNDER CERTIFICATE OF POSTING S-14
UCO BANK
............................... BRANCH Date.....................20
To ........................................................................
......................................................................
...............................................................
Dear Sir/s
Your Loan/Cash Credit/Overdraft account on which you are liable singly/jointly and
severally with Mr./Messrs...................................................................... was balanced on 30th
September / 31st March, 20....... and i t showed a debi t/credi t Bal ance of Rs.
.................................. (Rupees................................................................. only) on that day
inclusive of interest upto............... September/March, 19................
The securities listed at foot were held by the bank on your account on that day.
Please confirm correctness of the balance and the security by returning this form duly
signed.
Yours faithfully.
Manager
Details of Securities
I/We do hereby confirm the correctness of the securities mentioned above and
acknowledge that the sum of Rs. ................................................. is due
by me us
to me us
/
/
as stated.
Stamp
Dated...................... 20 ..... Signature
Note :1. This form should be returned infact with the balance duly certified. The duplicate
may be retained for your file.
2. If no reply is received in a months time the statement shall be treated as if it has
been confirmed by you as correct.
Head Office
10, B.T.M. Sarani
(Brabourne Road)
Kolkata 700 001
500
CHAPTER-10
JAL-70 (Revised)
UCO BANK
10, B.T.M. SARANI, KOLKATA - 700 001
Kolkata Main Branch
Dear Sirs,
In consideration of you agreeing at our request to advance from time to time
during the season Subject as hereinafter mentioned, such sums
of money within a limit of Rs. (Rupee
) in the aggregate as may be necessary for the cultivation,
manufacture and despatch of Tea at opr from our Tea Garden known as
Tea Estate, situated at District
We
having our registered office at
HEREBY HYPOTHECATE to you by way of first charge the whole of the crop or crops
of tea and other produce now growing and all the tea manufactured or in process of
manufacture (including green tea leaves after plucking, tea nurseries, tea waste and tea
seeds) and which shall from time to time hereafter during the continuance of this security
be growing in or upon the said garden as well as all the stocks of tea manufactured or in
process of manufacture (including green tea leaves after plucking, tea nurseries, tea waste
and tea seeds) of the said garden (hereinafter collectively referred to as The said
Tea)whether stored in or about the said garden or our factory or wherever else the same
may be (including any stock in transit) both present and future from year to year together
with all permits, permissions and licences, export quota rights, export licences special
export licenses over the said (hereinafter referred to as the said quota Rights) from time
to time granted by any Authority and held by us together with the sale proceeds of the
said Tea and the said quota Rights respectively. AND ALSO hypothecate to you by way of
floating charge the plant, machinery, implements, applicances tools, stocks stores, furniture,
fixtures and all other property and assests for the time being both present and future
including book debts etc. of the said Tea Estate and the business appertaining to the said
Tea Estate and the goodwill thereof as security for such advances aforesaid and any other
advances you may make to us together with interest thereon at the rate below mentioned,
and charges, commission and expenses of realisation or otherwise and also for all our
501
CHAPTER-10
other preseent and future indebtendness and liabilities (if any) to you of any kind we
undertake as follows :
1. That the said Tea and said Quota Rights and the sale proceeds thereof
respectively shall stand hypothecated and charged by way of first charge and the said
plant, machinery, implements, tools, stocks stores, furniture and all other property and
assets belonging to us and including book debts shall also stand hypothecated and
charged by way of floating charge with the repayment to you first of all such advances,
interest, charges, commission, expenses was aforesaid and secondly of all other indebtness
and liabilities, if any, as aforesaid and all the said sale proceeds shall be applied by us
accordingly and on receipt shall forthwith be paid to you for that purpose and in the event
of such sale proceeds being insufficient for such repayment we will pay to you a sum equal
to such insufficiency on the same becoming payable hereunder.
2. That all moneys received by us from you shall be applied solely for the purpose
of clutivation and manufacture of Tea at the said Tea Garden during the said season and
not in repayment of any existing debts or for new extension of land or building or for any
purpose not directly connected with such cultivation and manufacture as aforesaid.
3. That our account with you in respect of all such advances, charges, costs,
commissioin and expenses as aforesaid (and although the relation of financier and
customer may have ceased) shall be made up with interest at ........... percent per annum
quarterly rests and the amount of such account with interest as aforesaid for the time
being paybale to you shall be held and treated as principal amount and repaid on demand
in writing at any time. Provided however that the above rate of interest and the manner of
charging it may be revised or increased by you either in your sole discretion of which
notice shall be given to us or in accordance with the directives of Reserve Bank of India
issued from time to time and we hereby agree to such revision and increase in the rate of
interest and this Agreement shall be construed as if such revised of increased rate of
interest were mentioned herein and agreed to be paid by us and are hereby secured.
4. That we will keep the said Tea and also the growing Tea on the said Tea Garden
and the said plant, machinery, implements, appliances tools, stocks, stores and all other
property hereby hypothecated insured against such risks and for such amount and in such
a form as you may require from the date hereof to sale as shipment and will hold the
policies of insurance in trust for you on the understanding that they will be duly assigned
and handed to you whenever required by you and that we will on receipt of any moneys
thereunder pay the same to you to be credited to the said account.
5. That we will duly pay all rents taxes and or outgoing in respect of the said
garden and all coolie and other wages and expenses in connection with the said cultivation
502
CHAPTER-10
manufacture and despatch of tea as the same become due and if required produce all
receipts for such payments to you.
6. That unless instructed by you to the contrary we are at liberty (subject to the
provisions of this security) to sell in the ordinary course of business all or any of the said
Tea provided always that upon every sale thereof in India we will forthwith pay or cause to
be paid to you the net proceeds of sale to be credited to the said account and that upon
every shipment of the said Tea (whether for sale out of India or for delivery after sale in
India where at the time of shipment we shall not have paid the sale price thereof to you)
will pay to you the invoice value of the Tea shipped to be credited to the said account,
such payment to be made either in cash or from the proceeds of our drafts for the invoice
value to be negotiated by you and secured by all the relative shipping documents duly
endorsed in your favour including Bills of Lading and Insurance Policies and that except as
aforesaid we will not sell encumber or part with the said Tea except in accordance with
your written instructions.
7. That in the event of the said Tea being shipped out of India we will insure the
same to the full value thereof in an office and in manner approved by you and endorse
and deliver the insurance policies to you.
8. That unless instructed by you to the contrary we are at liberty (subject to the
provisions of the security) to sell in the ordinary course of business all or any part of the
said Quota Rights to which we are or may hereafter be entitled in respect of the said
Estate Tea Garden for the said Tea provided that upon every sale thereof we will forthwith
pay or cause to be paid to you the net proceeds of sale to be credited to the Account and
expect as aforesaid we will not sell encumber or part with the said Quota Rights or any
part thereof except in accordance with your written instructions as provided always that if
you shall become entitled to seize and sell the said Tea and / or the said quota Rights or
any part thereof respectively at any time under the provisions of Clause 9 hereof we will
forthwith at your request execute and do all such deeds and things as shall be necessary
to transfer to and vest in you or your nominee the said Quota Rights or the balance
thereof respectively than outstanding and all the respective rights appertaining thereto the
benefits and sale proceeds whereof you shall be entitled to use and apply towards
satisfaction of any moneys for the time being owing to you by us.
9. That you and your Agent or any receiver appointed by you shall be permitted
from time to time to enter upon the said Tea Garden and seize, take possession or remove
sell and transfer in your absolute discretion and on such terms (either with or without a
reserve price) and in such manner as you may think fit all or any part of the said Tea and
in like manner to sell and cause to be transferred the said Quota Rights or any part or
parts thereof and in like manner to take possession on remove, sell and transfer in your
503
CHAPTER-10
absolute discretion and on such terms and in such manner as you may think fit all or any
of plant, machinery, implements, tools, stocks, stores, articles and other assets hereby
hypothecated without being liable for any loss or damage sustained thereby and also to
demand, receive, seize and recover the net proceeds of the sale of the said Tea and of
the said Quota Rights in the hands of any person and to apply the net proceeds of the
sale towards payment of the amount for the time being owing on the said account and all
costs charges and expenses incurred by you in taking possession of keeping insuring,
shipping, selling or attempting to sell the said Tea and / or the Quota Right in any of the
events following, that is to say
a) If we shall make any default in payment of the moneys intended to be
hereby secured in accordance with the terms hereby or in the performance
of any undertaking contained in this security and on our part to be
observed performed.
b) If we shall become insolvent (or being a company shall go into liquidation
voluntarily) or otherwise or if any attachment execution appointment of a
Receiver or other process shall be levied against or made over the said Tea
or the said Quota Rights or the Tea Garden or any part there of respectively
or any other of our assets for rent of other outgoings in connection with the
provisions in which said Tea or any part thereof is or may be or under or
on account of any order or decree obtained against us.
c) If we shall remove or suffer the said Tea or any part thereof to be removed
from the said Tea Garden or elsewhere except fo the purpose of sale in due
course of business or without making Provisions to your satisfaction for the
payment of all the moneys intended to be secured thereby.
d) If in your opinion the security hereby created is in jeopardy.
Upon the happening of any of these events you shall be entitled to appoint a Receiver
(and from time to time vary such appointment) of the said Tea and said Quota Rights and /
or the sale proceeds thereof respectively and such Receiver shall be deemed to be our
Agent.
10. That you shall be under no liabliity to continue to make advances to us hereunder
if any moneys hereby secured shall have become payable under any of the provisions
hereof or if you have made or become entitled to make any entry or seizure or sale
referred to in Clause 9 hereof or if any of our obligations hereunder have been broken.
Provided however you will not be under any obligation to make advances to us
hereunder otherwise than at your absolute discretion and to the extent and manner though
504
CHAPTER-10
fit by you and that it may be reduced or discontined at any time by you for any reason
whatsoever without any reference or notice to us or the same may be increased at our
request upon terms and conditions as you think proper and you shall be entitled at any
time to terminate the agreement to finance us and to close our account and to demand
payment of all moneys owing to you but without prejudice to your right from time to time
after demand to make further advances to us or on our behalf for the purpose of
maintaining the said garden and the tea crops thereof and of supplementing and enforcing
the security hereby given such further advances being secured by the hypothecation hereby
intended to be created and such further advances shall not release any such demand as
aforesaid not the right of the Bank to enforce the same by suit or otherwise.
11. That the security hereby created shall be a continuing security unaffected by any
fluctuations of account or the said account at any time coming to credit or the repayment
of any particular account or any partial payments or fluctuations of accounts until either
you or us shall have terminated the agreement and we shall have satisfied and discharged
all our indebtendness and liabilities to you including all further advances made by you for
the purpose of maintaining the said garden and the said Tea and of supplementing and
enforcing the security as referred to in clause 10 hereof.
12. That you shall have a lien on all the said Tea and on the said Quota Rights and
the said plants, machinery implements, appliances, tools stocks, stores, furniture fixtures
and all other property and assets hereby hypothecated of which you shall take possession
or seize and on the sale proceeds thereof respectively in your hands for all moneys for the
time being owing by us to you on any other account and whether owing severally or jointly
with any other person or corporation.
13. We undertake to pay to you all moneys due and payable hereunder by the 31st
Day of March Two Thousand or earlier on demand.
14. We undertake to make all payments at your branch or at your option at your
office at 10, Brabourne Road, in the town of Calcutta.
15. (a) That we will carry on the business of the tea garden properly, efficiently and
will from time to time furnish and verify all statements, reports, accounts,
documents and information in such manner may be required by you and will
arrange with our Brokers from time to time to furnish you to such
statements, reports etc. in such manner as may be required by you and will
also execute all documents and do all acts and things which you may
require to give effect hereto and we authorise you and each of your Agent
and Nominesse as Attorney for and in our name to do whatever you may
be required to do hereunder. In particular we shall furnish to you forthwith
505
CHAPTER-10
or demand made by you with the following information, reports, accounts
returns and documents :-
i) Such periodical reports as you may ask for showing the state and
condition of the growing tea bushes planted on the said garden and
the benefits derived by us therefrom.
ii) Such returns and reports relating to our business, accounts, working
etc. as may from time to time be called for by you.
iii) Quarterly reports setting out the progress of planting replanting and
replacement of tea bushes for extension of tea cultivation in the said
Garden and improvements in operation accruing therefrom with such
details as you require.
iv) Copies of our balance sheets and profit and loss account as and when
they are circulated to our shareholders or as and when they are
signed by our Auditors.
b) We will afford full facilites to your representatives to enter upon and inspect
the state and condition of the said Garden from time to time. You may
charge us with all expenses of such inspection and you shall be entitled to
give such directions and instructions to us as you shall think fit whether as
a result of any such inspection or otherwise and we shall forthwith comply
with such directions and instructions.
16. We further take that we shall not remove the said plant, machinery implements,
tools, stocks, stores etc. from the Tea Estate without your previous consent in writing and
shall repair and replace the same or any part thereof as and when damaged or destroyed.
17. That nothing herein shall operate to prejudice your rights or remedies in respect
of any of our present or future security, guarantee obligation or decree or for any of our
indebtendness or liability.
18. We hereby declare that there was no encumbrances at present subsisting on all
or any part of Tea of the said Garden manufactured and to be manufactured therefrom or
of the said Quota Rights other than the security hereby given. We hereby also declare that
there are no encumbrances at present subsisting on all or any part of the said plants,
machinery, tools implements, stocks, stores etc. hereby hypothecated by way of floating
charge. We will nor so long as any money remaining due from us to you create or permit
to be created any such encumbrances thereon or on the crops and rights during the next
subsequent season without your written consent.
506
CHAPTER-10
19. That if we fail for seven days to repay to you all moneys hereby secured after
the same shall have become payable hereunder we will at your request but at our cost
execute and register a full and complete mortgage to you in English form as approved by
you of the whole of the Block and Crop and produce and other assets present and future
and said Tea Garden for further securing all moneys payable to you with interest at
.......... percent per annum.
20. We hereby appoint you and all and any of your principal officers jointly and
severally to be the attorney or attorneys of us to give any notice or to do any act or thing
in your opinion requisite for the maintenance and enforcement of the security intended to
be hereby created.
21. Any notice by way of request, demand or otherwise hereunder may be given by
you to us personally or may be left at our the then at last known place of business or
residence int he Dominion of India addressed to us at such address or may be sent by
post to us as aforesaid and if sent by post it shall be deemed to have been given at the
time when it would be delivered in due course of post and in proving such notice when
given by post it shall be sufficient to prove that the envelope containing the notice was
posted and a Certificate signed by you local Agent that the envelope was so posted shall
be conclusive. If by reason of absence from the Dominion of India or otherwise we or any
of us cannot be given any such notice the same inserted once as an advertisement in a
newspaper circulating in the District where the last known addressee is situated by deemed
to have been effectually given and received on the day on which such advertisement
appears.
Date this......................day of......................Two thousand......................
For & on behalf of
Directors
Secretary by

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