Loan Bond with Sureties and Lower Rate of Interest in Case Punctuality in Payment[CD1]
THIS DEED is executed on this day of at between:
1. Mr. X s/o Mr. Y r/o , hereinafter called the debtor on the first
part.
2. Mr. A s/o B, r/o ., and Mr. DC s/o RA r/o ., hereinafter jointly
called the sureties on the second part, and
3. Mr. C s/o D, r/o , hereinafter called the creditor on the third
part.
Whereas the creditor has agreed to advance a loan of
Rs.5,00,000.00 to the debtor, which is to be repayable in four years with
interest at the rate of 18% per annum, provided two persons stand as surety of
the debtor.
And whereas sureties above named are ready to stand as sureties of
the debtor.
NOW THIS DEED WITNESSES AS UNDER:
1. That in pursuance of the said agreement the creditor has advanced
a sum of Rs.5,00,000.00 (Rupees five lacs only), the receipt of which has been
acknowledged by the debtor.
2. The debtor shall repay the loan in five years in half yearly
installments of Rs.50,000/- with interest at the rate of 12% per annum.
3. That in case the debtor repays the installment of loan before at
least 15 days of the due date, the interest shall be paid at the rate of 10%
per annum.
4. That in case of failure on the part of the debtor or repay the
loan and interest or its part thereof, the sureties shall be liable to repay
such unpaid amount of loan and interest, for which sureties are agreed.
We the above noted parties have signed this deed on the date and
place mentioned above, after fully understanding the contents of this deed in
the presence of the following witnesses.
1. Name.......... Signature...............
..
Address.......... Debtor
2. Name.......... Signature
Address............. Surety
3. Name........... Signature.
Address........ Creditor
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