Loan bond with surety and hypothecation of property[CD1]
This Loan Bond is executed on this..........day
of............at....................... Between:
1. Mr. X s/o......r/o.....................,Hereinafter called
the debtor on the First Part.
2. Mr. Y s/o......r/o.....................,Hereinafter called the
surety on the second part, and
3. Mr. Z s/o.......r/o....................,Hereinafter called the creditor
on the third part.
Whereas the debtor has applied for a loan of
Rs.........which shall be re-payable in installments as specified hereunder
with interest at the rate of 18% per annum.
And whereas the surety has agreed to give
security for the above loan and the creditor has agreed to advance the loan on
such security.
NOW THIS BOND WITNESSES AS UNDER:
1. That in pursuance of the said agreement the creditor has advanced
a sum of Rs.......to the debtor. The debtor and surety have jointly and
severally agree with the creditor as under:-
2. That the debtor and the surety are jointly and severally responsible
for repayment of the above amount in four equal installments with interest on
half yearly basis as under:-
INSTLAMENTS DUE DTEA PRINCIPAL AMOUNT INTEREST
1st
installment................................................
2nd installment................................................
3rd
installment................................................
4th
installment................................................
3. That in case of failure to pay any installment or part thereof
with interest, the debtor amount along with interest shall become payable at
once and the debtor and the surety shall be jointly and severally liable to pay
the same.
4. That for the consideration aforesaid and in further pursuance of
the aforesaid agreement the debtor and the surety grant and transfer by way of
simple mortgage to the creditor. All that property described in the shall
remain and be charged by way of simple mortgage as security for the payment to
the creditor of the said principal amount along with interest in accordance
with the covenants herein contained.
5. The debtor and the surety hereby declare that the said property is
free form all encumbrances.
6. That it is hereby agreed and declared that in cases of failure of
the part of debtor to pay the installment in time, the creditor shall be
entitled to dispose the mortgage property in part or full to recover the
principal amount and interest.
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:
Witnesses:
1.
Name Signature..............
Address Debtor
2.
Name Signature..................
Address Surety
3. Name Signature................
Address Creditor
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