Counter Indemnity-To Bank
This Agreement is made on………………..….day
of……….. between…………………………(hereinafter called “the
Customer which term shall mean and includes, unless repugnant to the context,
him/them, his/their executers, successors and assigns) of the first part and
the ………………………………(hereinafter called “the Bank” which
term shall include its successors and assigns) of the Second part.
Whereas The Bank through its……………………. branch has agreed to guarantee and has
guaranteed the payment of Rs..………………(Rupees……………………..
) obligations/performance/engagement as per contract arrangement entered into
between the customer and ………………………………………….. on behalf of the customer as per the
Letter/Agreement of Guarantee/Deed of Guarantee issued by the Bank at
his/their/its request in favour of…………………………………………….………………., a copy of which is
annexed herewith as part of this agreement and has been signed by customer, on
the customer, on the customer Indemnity agreeing to pay commission and give
his/their/its Counter Indemnity against any claim, loss/liability to be
incurred by the Bank in consequence of giving the said Guarantee.
Now This Agreement Witnessed as Follows:-
1. The customer hereby agrees that the Bank shall be and is entitled/authorized
to pay the amount demanded by the beneficiary of the Guarantee furnished by the
Bank at the request of the customer, without reference to the customer
immediately and un-conditionally notwithstanding any intimation by the customer
to the Bank of any disputes about any default, breach or non-performance of the
guaranteed contract, in whole or in part of any other differences, whatsoever
or any dispute or disputes raised by the customer in any suit or proceeding
pending before any Court of arbitration or Tribunal relating to the guaranteed
Contract, our liability being absolute and unequivocal. The said payment of the
Bank shall be binding in all respect on the customer as validity &lawfully
made on behalf on the customer. The customer agrees to reimburse and
indemnifies the Bank for all the amounts so paid together with interest at the
rate of ………………. and for costs and charges. The Bank shall be entitled to
recover/realize the same from the customer after demand in writing and enforce
all or any of the securities held by the Bank for the Guarantee furnished at
the instance of the customer.
2. That the customer also indemnifies the Bank against all costs, charges and
expenses with respect to any action, claim or proceeding with reference to or
in connection with the said Guarantee which may be incurred by the Bank as a
result of non-fulfillment of obligations by the customer.
3. That to secure
payment of amount or any sum or sums due to the Bank under this Agreement of
Counter Indemnity the customer has deposited cash margin of Rs……….. and/or has
already pledged and handed-over as security his Fixed Deposit Receipt
No………………………………………. dated……………………. duly discharged. The customer authorizes the
Bank to adjust or appropriate the amount of the cash margin/fixed deposit and
interest towards satisfaction of the dues or claim under this Agreement at any
time on or before maturity of the said FDR. In case of renewal of FDR, the
customer agrees that the said FDR shall be and remain with the Bank as security
with interest as aforesaid.
OR Has already pledged as security his GP Notes authorized the Bank
to satisfy its dues herein mentioned in sale of the said GP
Notes……………………………………
OR
Hereby authorizes the Bank to earmarks as security the drawing power in his CC
overdraft account to the extent of Rs……………….. and to utilizes and appropriate
the same for satisfaction of its dues herein mentioned.
4. The Bank is authorized and entitled to appropriate at its discretion and any
credit balance account to the extent of Rs……………….. and utilizes and appropriate
the same for satisfaction of its due herein mentioned. The Bank is authorized
and entitled to appropriate at its discretion and any credit balance/deposit in
the name of the customer without notice for and towards the customer’s
liability. The Bank may at its discretion debit the amount to cash credit
account of the customer, if any for realizing the amount due.
5 (a) The customer has
agreed to pay commission to the Bank at the rate of …………% in consideration of
the Bank furnishing or agreeing to furnish Guarantee to M/s……………………………………………….
The amount of commission shall be payable by the customer as follows:
(b) The customer
further agrees to pay the commission as aforesaid until guarantee issued is
returned with endorsement of released from liability by the beneficiary or
Letter of Release to the satisfaction of Bank is obtained from beneficiary and
produced to the Bank.
(c) In the event of
default of payment, the Bank shall be entitled to realise the amount of
commission due to it from any of the securities of the customer herein
mentioned as dues recoverable by the Bank from the customer and also personally
from him/them/it.
6. The Bank shall be
under no obligation to return any of the securities to the customer unless the
guarantee given by the Bank has been returned to it by the beneficiary
thereof.
7. The Counter Guarantee will not be discharged due to the change in the
constitution of the Bank or the customer.
8. The above terms and
conditions and the security furnished herein shall apply to and secure the
extensions renewals, if any Guarantee made by the Bank from time to time.
In Witness whereof the
parties hereto have set their hands in the presence of…………………………
Witness Signatures
1.
2.
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