AGREEMENT – MORTGAGES

This LOAN AGREEMENT made at the place and on the date stated in the Schedule 1 between the BORROWER, details whereof are given at the end of this Agreement, hereinafter referred to as the “Borrower” (which expression shall, unless repugnant to the context or meaning thereof, be deemed to include, where the Borrower is a company, its successors, where the Borrower is a partnership firm, the partners for the time being of the firm, the survivors or survivor of them and the heirs, executors, administrators of the last survivor, where the Borrower is a sole proprietor or an individual his/her heirs, executors, administrators) of the One Part

AND
Development Credit Bank Ltd (DCB), having its registered office at 154,S.V.P Road, Dongri, Mumbai-400009, hereinafter referred to as the “Bank” (which expression shall, unless repugnant to the context or meaning thereof, be deemed to include, its successors and assigns) of the Other Part.

WHEREAS relying upon the representations and information provided by the Borrower, the bank has agreed to provide financial assistance to the Borrower on the terms and conditions hereinafter appearing to enable the Borrower to acquire/construct a dwelling place(s).

NOW IT IS HEREBY AGREED AS UNDER
ARTICLE 1
DEFINITIONS

1.1 In this Agreement, unless the context otherwise requires,

  1. “Application” means the application made by the Borrower to the Bank for a Loan and where the context so requires, all other information submitted by the Borrower to the Bank with view to get the Bank to make available the Loan;
  2. “Construction” includes extension of a house or building;
  3. “Guarantee” means the Guarantee (if any) to be given to the Bank by the Guarantor in support of the obligations of the Borrower under this Agreement;
  4. “Guarantor” means the person or persons (if any) named in the Schedule;
  5. “Loan” means the principal amount of the Loan stated in the Schedule upto which the Bank may lend and advance to the Borrower, as provided in Clause 2.1 of this Agreement and includes where the context so requires the outstanding amount of the Loan, from time to time;
  6. “Applicable DCB Mortgage Rate” means any of the DCB Mortgage Floating Rate or the DCB Mortgage Fixed Rate selected by the borrower, as being applicable to the loan, which rate so selected shall form the basis on which the interest on the loan will be computed.
  7. “Benchmark DCB Prime Lending Rate” means the internal prime lending rate as specified by the bank from time to time
  8. “DCB Mortgage Floating Rate” means the Benchmark DCB Prime Lending Rate and the margin, if any, as specified by the Bank from time to time based on the relevant interest determination period.
  9. “DCB Mortgage Fixed Rate” means the fixed interest rate as specified by the Bank from time to time.
  10. The expression ' Equated Monthly Instalment' (EMI) means the amount of monthly payment necessary to amortise the loan with interest over the period of the loan. AND The expression 'Pre Equated Monthly Instalment Interest'(Pre EMII) means interest at the rate indicated in Article 2.2, on the loan from the date / respective dates of disbursement to the date immediately prior to the date of commencement of EMI.

  11. “DCB Mortgage Fixed Rate” means the fixed interest rate as specified by the Bank from time to time.
  12. “Office of DCB” means the office of the Bank mentioned in the Schedule;.
  13. “Pre Equated Monthly Installment Interest” (“Pre EMII”) means interest at the rate indicated in the Schedule on the Loan from the date/dates of disbursement of the Loan to the date immediately prior to the date of commencement of EMI;
  14. “Prepayment means premature repayment of the Loan, on the terms and conditions prescribed by the Bank from time to time and in force at the time of prepayment. Such prepayment, however, shall not exceed more than 25% of the original principal amount during one year”.
  15. “Property” means the immovable property including land described in the Schedule the acquisition/ construction whereof is being financed by the Bank under this Agreement;
  16. “Quarter” means a calendar quarter, the last day of which shall be 31st March, 30th June, 30th September or 31st December.
  17. “Repayment” means the repayment of the principal amount of the Loan and payment of interest and other outstanding amounts in the Loan account, as provided for in this Agreement;
  18. “Sanction Letter” means the letter addressed by the Bank to the Borrower for sanctioning the Loan, particulars whereof are mentioned in the Schedule.
  19. “Schedule” means the Schedule to this Agreement and which forms an integral part of this Agreement.
  20. “Effective date” is the date stipulated as such in the Schedule

1.2 “Borrower”, where the context so require, shall include more than one Borrower.

1.3 Any expression not defined herein but defined in the General Clause Act, 1897, the meaning or interpretation assigned to such expression therein shall also carry the same meaning herein.

1.4 Reference to the masculine gender include reference to the feminine gender and the neuter gender and vice-versa.

1.5 Reference to the plural number include references to the singular number and vice-versa.

ARTICLE 2
FACILITY, INTEREST, ETC.

2.1 Facility
The Borrower agrees to avail from the Bank and the Bank agrees to provide, upon the terms and subject to the conditions herein set forth, the Loan not exceeding the amount stated in the Schedule 1 to enable the Borrower to acquire/ construct the Property or for refinancing / taking over of the existing loan

2.2 Interest and Rate of Interest

  1. The Borrower shall be charged interest , at the rate stated in the Schedule 1. Interest shall be computed on the actual daily outstanding balance of the Loan on the basis of a 365 day’s year and actual number of days elapsed. Interest shall become due at the end of every Month. The Bank shall in its descretion, be entitled, at any time, without prior notice to the Borrower, to revise upwards or downwards the rate of interest having regard to application regulations, conditions in money market, availability of loanable funds, the financial condition of the Borrower and the Benchmark DCB Prime Lending Rate at the relevant time.
  2. In case of floating rate loans, the interest charged will be linked to the Benchmark DCB Prime Lending Rate as mentioned in Schedule 1. In such case the Applicable DCB Mortgage Rate shall be notified to the borrower by the bank only if the rate of interest is varied by the Bank, within 30 days from the 1st day of each financial quarter as the case may be and such rate notified by the bank shall be binding on the borrower. It is clarified that the difference between the interest charged on the loan and the applicable DCB mortgage Prime rate as specified by the bank from time to time will remain unchanged/constant during the course of the loan.
  3. Without prejudice to the Bank’s other rights, interest as aforesaid and the other amounts payable by the Borrower shall be charged/debited to the Borrower’s Loan account on the respective due dates thereof and shall be deemed to form part of the outstanding Loan. Such interest and other amounts shall, accordingly attract interest at the same rate as charged on the Loan in terms of this Agreement until payment thereof.
  4. The Borrower hereby confirms that in order to work out suitable EMI to be paid by the Borrower towards repayment of the Loan and/or payment of interest, the Bank has calculated interest, at the aforesaid rate, on a suitable basis and Borrower agrees to pay interest calculated as aforesaid.
  5. The Borrower shall reimburse or pay to the Bank, on demand, the amount paid or payable by it to any Governmental authority or any another regulatory agency whether in India or abroad on account of any interest tax or other tax levied by such Government authority or agency on the interest or any other amount (and/or other charges including the PRE EMI) payable to the Bank.

2.3 Fees and Operating Expenses

  1. The Borrower shall, on or before the disbursement of the Loan or the first installment of the Loan, pay to the bank as and by way of service fees and expenses an amount calculated at the rate stated in the Schedule 1 on the amount of the Loan sanctioned by the Bank. Such service fee shall be non refundable and shall be payable to the bank whether or not the loan has been sanctioned.

2.4 Details of disbursement

The Loan may be disbursed in one of more installments as may be decided by the Bank having regard to the need of the Borrower. Decision of the Bank in this regard shall be final, conclusive and binding on the Borrower. If so required by the Bank the Borrower shall acknowledge receipt of each disbursement, in the form required by the Bank. The terms and conditions of this Agreement shall cover each installment disbursed and all installments together would be treated as a single loan for the purpose of this Agreement.

2.5 Mode of disbursement

  1. Disbursement of the Loan may be made in such manner as may be decided by the Bank.
  2. Upon the request of the Borrower and if the Bank, in its sole discretion, decides disbursement of the Loan may be made to the Borrower directly.
  3. Save as aforesaid, disbursement of the Loan in one or more installments as may be considered appropriate by the Bank shall, if the Property is under construction, be made directly to the builder or developer of the Property and if the Property is a ready built property, be made directly to the vendor thereof, provided that the Bank may, in its sole discretion, agree to make disbursement in an escrow account with an advocate approved by the Bank pending completion of any required documentation with the builder or developer or as the case may be, vendor of the Property upon such terms and conditions as the Bank may consider appropriate. Such disbursement shall be deemed to have been made by the Bank to the Borrower.
  4. Disbursement shall be deemed to have been made to the Borrower on the date of the cheque or payment advice as the case may be under which such disbursement shall have been made irrespective of the date on which the disbursement may have been received by or on behalf of the Borrower.
  5. The disbursement for the acquisition of the property will be made after the borrower’s own contribution has been made for the same to the builder/developer/seller, and such proof is furnished to the bank by the borrower. The disbursal towards construction/improvement of property shall be made only after the borrower commences the construction/improvement work on the property and such roof is furnished to the bank by the borrower. The disbursal shall be in stages as per the progress of work as prescribed in terms of the internal guidelines of the bank, as applicable from time to time. The decision of the bank in this regard shall be final, conclusive and binding on the borrower.
  6. In case the borrower delays in taking the disbursement the bank shall nonetheless be entitled to encash the postdated cheques on the respective dates/act upon standing instructions, deduct the account of the borrower through electronic clearing system or salary deduction, as the case may be, towards repayment of loan and to credit the loan account without being liable to pay interest to the borrower.

2.6 Terminal Date of Disbursement

Notwithstanding anything contained herein, the Bank may by notice to the Borrower suspend or cancel further disbursement of the Loan or any part thereof if the same shall not have been fully drawn within twenty four months from the date hereof.

ARTICLE 3
REPAYMENT / PREYAMENT

3.1 Amortisation

  1. In case where the Property is under construction, the Loan together with interest thereon shall be repaid by the Borrower to the Bank on the expiry of the tenor of the Loan stated in the Schedule 1 and in any event not later than the date on which possession of the Property is received by the Borrower or as the case may be, the Property is ready for occupation. Provided however that notwithstanding the aforesaid, the Loan is repayable on demand. Until possession of the Property is received by the Borrower or the Property is ready for occupation, if permitted by the bank in that regard the borrower shall have an option to pay the monthly payment of EMIs either comprising of only interest on the Loan at the rate stated in the Schedule 1 or comprising of par principal and part interest at the rate stated in Schedule 1.
  2. In case where the Property is ready built property, the Loan together with interest thereon shall be repaid by the Borrower to the Bank on the expiry of the tenor of the Loan stated in the Schedule, provided however that notwithstanding the aforesaid, the Loan is repayable on demand. Without prejudice to the demand nature of the Loan, for the sake of convenience, the Borrower shall repay the Loan together with interest thereon by way of payment of monthly EMIs comprising of both principal and interest. The bank shall be entitled to appropriate the amount of the monthly EMIs (partly or as the case may be, in full) towards the interest payable on the loan computed as above. For Floating Interest rate Loans the interest component in relation to the EMIs may differ for various interest termination periods.
  3. The computation of EMIs is without prejudice of the Bank’s right to recompute the interest (in case of variation of the rate of interest) and in such case to recomputed the EMI. If the Bank so requires, the Borrower shall give to the Bank post dated cheques payable, from time to time and/or a Mandate/Authorisation for payment through electronic clearing mechanism, in the prescribed form of the Bank, towards payment of the EMI, and other amounts payable by the Borrower. The Borrower hereby unconditionally and irrevocably authorises the Bank to present the post dated cheques on their respective dates, on the bank on which the same are drawn or as the case may be, to issue appropriate instructions pursuant to the Mandate/Authorisation for payment through electronic clearing and mechanism given by the Borrower.
  4. Until the commencement of EMI, the Borrower shall make monthly payment to the Bank and each such monthly payment shall be for payment of PRE EMI at the rate sated in the Schedule.
  5. Provided any prepayment made by the Borrower, shall also not exceed more than 25% of the original principal amount during any one year. Provided further, any additional prepayments made by the Borrower shall be made only with prepayment penalty at the rate set out in the Schedule 1 on the outstanding amount.
  6. Any amount prepaid shall be adjusted towards the principal amount of the Loan without however changing the amount of the subsequent EMIs (for which the Borrower has given post dated cheques or Mandate/Authorisation for payment through electronic clearing mechanism) but each EMI thereafter shall represent interest outstanding as reduced by the amount prepaid and correspondingly increased balance amount towards principal outstanding. No amount prepaid may be withdrawn by the Borrower under this Agreement.

3.2 Computation of EMI for fixed rate loans

The EMI for fixed rate loans will remain constant and will be varied under exceptional circumstances at the Bank’s discretion. The computation of EMIs is without prejudice of the bank’s right to recomputed the interest (in case of variation of the rate of interest) and in such case to recomputed the EMI.

3.3 Computation of EMI for Floating Rate Loans

For the purposes of computing the interest component of each EMI, the applicable DCB Mortgage Floating Rate shall be determined as below:
The Benchmark DCB Prime Lending Rate may be reset by the Bank on the first day of each financial quarter and such reset Benchmark DCB Prime Lending Rate and the margin, if any, shall be the applicable DCB Mortgage Floating Rate for the financial quarter.

3.4 Delay in Payment

  1. The Borrower shall pay in full the PRE EMI, EMIs and all other amounts without any demur, protest or default and without claiming any set-off or counterclaim on the respective dates on which the same are due. No notice, reminder or intimation shall be given to the Borrower regarding his obligation to pay the PRE EMI or EMI regularly on the due dates. The Borrower shall ensure prompt payment and regular payment of PRE EMI and EMI including interest and all other amounts payable by the Borrower to the Bank on the dates and in manner herein provided.
  2. Without prejudice to the Bank’s other rights, in case of any delay in payment of PRE EMI or EMI or non-payment of any amount within the due date thereof, the Bank shall charge the Borrower additional interest at the rate of 2% p.m.or such other rate as per the rules of the rules of the Bank in force time to time, above the prevailing interest rate charged on the Loan, from time to time. Such additional interest shall be charged/debited to the borrower’s loam account on the specific dates thereof and shall be deemed to form part of the outstanding loans. Such interest and other amounts shall accordingly attract interest @ the same rate as charged on the loan in terms of this agreement until payment thereof.

3.5 Alternation and Rescheduling of EMI

  1. If the entire amount of the Loan is not drawn by the Borrower within a period of 24 Months from the date hereof, the EMIs may be altered and rescheduled in such a manner and to such an extent as the Bank may, in its sole discretion, decide and repayment will thereupon be made as per the said altered and rescheduled EMIs.


  2. Notwithstanding anything herein contained, the Bank shall have the right, at any time and from time to time, to review and reschedule the EMIs in such manner and to such an extent as the Bank may, in its sole discretion, decide and repayment will thereupon be made as per the rescheduled EMIs.

  3. As a consequence of an increase in the Applicable DCB Mortgage Prime Rate the amount of each EMI may be less than the interest payable during the period to which the EMI relates and consequently the balance amount of interest as remains outstanding shall be charged/debited to the borrower’s account on the respective due dates thereof.

  4. Notwithstanding that the Post Dated cheques or the Standing Instructions (including any instructions to the employer of the borrower for payment to the Bank through deduction of a part of the salary of the borrower) or Electronic Clearing System Instructions as provided by the borrower to the Bank are in full force and effect, there may be a revision in the amount or the total number of EMIs as aforesaid

  5. Upon revision in the amount or the total number of EMIs as aforesaid, the borrower on demand by the Bank , provide to the Bank additional Post dated cheques or Standing Instructions (including any instructions to the employer of the borrower for payment to the Bank through deduction of a part of the salary of the borrower) or Electronic Clearing System Instructions or pay a lump sum amount as the bank may deem fit, for an amount higher or a period longer than the amount or period of EMIs initially agreed upon by the parties in terms of the loan agreement.


  6. The borrower’s obligation to repay the loan on the expiry of the tenor of the loan is absolute. Accordingly notwithstanding that the borrower may have provided to the bank additional Post dated cheques or appropriate instructions in terms of sub clause (e) above, the borrower will be obliged to repay the entire principal component and the interest component of the loan on the expiry of the tenor of the loan provided that the bank , as its sole discretion but without being bound to do so, may at the request of the borrower, permit the borrower to pay the unpaid amount after the expiry of the tenor of the loan and in such manner as the bank may stipulate.


  7. If the borrower commits a breach of any of its obligations herein then the same shall be treated as an event of default in terms of clause 8.1

3.6 Liability of Borrower to be Joint and Several

Where the Loan is provided to more than one Borrower, then, notwithstanding anything herein stated, the liability of the Borrower to repay the Loan together with interest and all other amounts and to observe the terms and conditions of this Agreement/and any other agreement(s), documents(s) made between the Borrower and the Bank in respect of the Loan is joint and several.

3.7 Set Off

Without prejudice to what is stated hereinabove, the Borrower hereby agrees and confirms that in the event of the Borrowers failing to pay the amount outstanding under the Loan facility, in addition to any general or similar lien to which the Bank may be entitled by law, the Bank shall without prejudice to any of its specific rights under any other agreements with the Borrower, at its sole discretion and without notice to the Borrower, be at liberty to apply any other money or amounts standing to the credit of the Borrower in any account (including fixed deposit account) of the Borrower (whether singly or jointly with another or others) with the Bank in or towards repayment of the amount outstanding under the Loan facility. The rights of the Bank under this Agreement are in addition to other rights and remedies (including without limitation other rights of set off) which the Bank may have

3.8 Terminal Benefits

The entire outstanding principal amount of the loan as well as any outstanding interest and other dues thereon shall be payable by the borrower to the bank, if the borrower opts for any scheme or accepts any offer from his employer providing any benefit on resigning or retiring from the employment prior to super annuation or upon the employer terminating his employment for any reason or upon the borrower resigning or retiring from the service of the employer for any reason whatsoever. The outstanding dues may be paid from the amount or amounts receivable by him from the employer under such scheme or offer or any terminal benefit ad the case may be. Provided, however, in the event of the said amount or amounts being insufficient to repay the said sums to the bank in full, the unpaid amount remaining due to the bank shall be paid by the borrower in such manner as the bank may, in its sole discretion , decide and the payment will be made by the borrower accordingly. The bank is irrevocably authorized to communicate with and receive the said amounts from the borrower’s employers directly.

 

ARTICLE 4
SECURITY

4.1 Security for the Loan

  1. Repayment and payment of the Loan, interest, fees, charges, costs and expenses and all other amounts payable under this Agreement to the Bank shall be secured by a first charge by way of mortgage in favour of the Bank over the Property and such other properties, as the Bank may require.

  2. The Borrower shall also procure Guarantee of the Guarantor, if required by the Bank, as security for the repayment and payment of the Loan, interest, fees, costs, charges and expenses and all other amounts payable under this Agreement to the Bank.

  3. The Bank shall have the right to decide in its sole discretion the type of mortgage or any other security and/or additional security to be created by the Borrower for securing the Loan and all other amounts as aforesaid and the Borrower shall be bound to create such security and shall duly execute documents evidencing the same as may be required by the Bank.

  4. The Borrower shall execute any bond(s) or promissory notes for the Loan and all such other documents, powers of attorney and agreements as may be required by the Bank.

 

ARTICLE 5
CONDITIONS PRECEDENT TO DISBURSEMENTOF THE LOAN

(A) Obligation of the Bank to make any disbursement under the Agreement shall be subject to the condition that:

  1. Credit Worthiness of the Borrower

    The Borrower meets the Bank’s requirement of creditworthiness. The Bank shall be entitled to make or cause to be made inquiries of such nature as the Bank may deem fit of the credit worthiness of the Borrower. The Bank shall be further entitled to call for such credentials from the Borrower as may be required to prove the credit worthiness of the Borrower.

  2. Non-existence of event of default

    No event of default as defined in Article 8 shall have happened.

  3. Extra-Ordinary Circumstances

    No extra-ordinary or other circumstances shall have occurred which may make it improbable for the Borrower to fulfil his obligations under this Agreement.

  4. Pending Legal proceedings

    The Borrower shall have furnished a declaration to the Bank 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 or the Property 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 this Agreement or any of its terms and conditions or which might affect clear and marketable title to the Property.

  5. Utilisation of disbursement

    The Borrower shall have satisfied the Bank at the time of requesting for a dirbursement that the same is required immediately by the Borrower for the purpose of acquisition/ construction of the Property and the Borrower shall produce evidence satisfactory to the Bank of the proposed utilisation of the proceeds of disbursement of Loan. The Borrower shall have satisfied the Bank about the utilisation of the proceed of any prior disbursements.

  6. Ulitisation of Borrower’s Contribution

    The Borrower has utilized his own contribution (i.e. the cost of the property less the loan) for a part of the finance for the acquisition /construction of the property.

  7. Title

    The borrower assures the Bank that he has absolute, clear and marketable title to the property and that the said property is absolutely unencumbered and free from any liability whatsoever.

  8. Additional Security

    In the event of the security furnished by the borrower is found to be insufficient/ incorrect in value the borrower shall be directed to furnish additional security as may be required by the bank. Notwithstanding the above, in the event the security furnished by the borrower is subsequently found to be of inferior value to that as declared by the borrower in the loan application, the loan may be recalled/repayment of the loan may be accelerated by the bank with immediate effect.

(B) The Borrower shall make delilvery of the following items, satisfactory in form and substance to the Bank:

  1. 1. Evidence of the actual existence of the Borrower.
    2. The power of the Borrower to avail of the Loan and to create security.
    3. All corporate and necessary actions for availing the Loan and creation of the security having been taken (Applicable in case of company).

  2. Evidence that all consents, approvals and permission required for availing of the Loans and/or creation of security have been obtained or evidence to the effect that these are not required.

  3. The Security documents and/or Guarantee(s);

  4. In case where the Property is ready built property or to be constructed property, evidence that the Borrower has a clear and marketable title free of all encumbrances to the Property or to the land on which the Property is to be constructed, capable of being mortgaged in favour of the Bank and in case where the Property is under construction, evidence of a valid agreement for sale allotment letter with the builder/developer of the Property.

  5. Insurance cover on the Property as is acceptable to the Bank.

  6. Evidence of subsisting contract for sale of the Property or land on which the Property is to be constructed in favour of the Borrower or the first Borrower as the case may be;

 

ARTICLE 6
BORROWER’S REPRESENTATIONS AND WARRANTIES

The Borrower hereby represents and warrants to the Bank :

  1. That the information given in this Application and any prior or subsequent information provided or explanation furnished to the Bank in this behalf are true, complete and accurate in all respects and that no fact or information necessary to be furnished by the Borrower has been omitted to be stated in order to induce the Bank to provide the Loan;

  2. That subsequent to the Application there has been no material change which would affect the grant of the Loan as requested for in the Application;

  3. That there are no mortgages, charges, lispendens or liens or other encumbrances or any right of way, light, water or other easements or right of support of the whole or any part of the Property.

  4. That the Borrower has a clear and marketable title to the Property free from all reasonable doubts and encumbrances and that the Property is/will be capable of being mortgaged in favour of the Bank.

  5. That the Borrower is not a party to any litigation of a material character affecting himself or the Property; and that the Borrower is not aware of any facts likely to give rise to such litigation or to material claims either against the Borrower or against the Property;

  6. That the Borrower is not aware of any document, judgement of legal process or of any latent defect affecting the title of the Property or of any material defect in the Property which has remained undisclosed and/or which may affect the Bank prejudicially;

  7. That the Property is not included in or affected by any of the schemes of Central/ State Government or the improvement trust or any other public or local authority or by any alignment, widening or construction of road under any such scheme;

  8. That no suit is pending in any Court in respect of the Property nor has the Borrower been served with any notice for infringing the provision of any law, rules or regulations.

  9. That the Borrower has disclosed to the Bank all facts relating to the Property and has made available to it all the title deeds in respect of the Property;

  10. That the Borrower has paid all public demands such as Income tax and all other taxes and revenues payable to the Government 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.

  11. That the Property is insured for all risks and for such value as may be required by the Bank and that the Bank is made the sole beneficiary under the policy.

  12. That the Borrower does not violate any covenants, conditions and stipulations under any existing Agreement entered into by the Borrower with any part, by availing of the Loan from Bank.

  13. That all necessary approvals for availing of the Loan and creating the security/ securities have been obtained or shall be obtained.

  14. That the Borrower (and in case of the Borrower being a firm/ company, the person executing the documents) is entitled and empowered to execute this Agreement, the security documents, the promissory notes/bonds, if any and all other documents and papers in connection herewith and upon execution the same will create legal and binding obligations on the Borrower enforceable in accordance with their respective terms.

  15. That the contract for sale of the Property between the Borrower and the builder/developer or as the case may be, vendor is valid and subsisting.

  16. That apart from the documents of title mentioned in the Annexure hereunder written ( hereinafter called “ the said title deeds”) there are no other title documents pertaining to the property and if any title deeds are found / received in respect of the property the same will form a part of the title deeds deposited with the bank to perfect the security created in favour of the bank..

  17. That in case of default in making repayment of the loan instalments or other amounts due from the borrower in terms of this agreement, the bank will have complete liberty to sell, alienate or encumber the property in any manner whatsoever the bank deems fit and the borrower will handover the vacant possession of the property without any demur, or protest and the bank will have complete liberty to take possession of the property.

  18. That the borrower shall not seek or attempt to further mortgage or charge or seek or attempt to sell, lease, sub lease, give on leave or license , let out, transfer, dispose of or create any third party rights in or over the property or any part thereof or otherwise deal with the property in a manner prejudicial to the interest of the bank and the borrower has not entered into any agreement for sale or otherwise with any person or party in respect of the property;

  19. That the borrower shall abide by all the terms and conditions of this agreement and other documents executed/to be executed by the borrower

 

ARTICLE 7
COVENANTS

7.1 Affirmative Covenants

The Borrower hereby covenants with the Bank that the Borrower shall

  1. Utilise the Loan for the purchase/construction of the Property as indicated in the Application and for no other purpose whatsoever.

  2. Duly complete the purchase/construction of the Property and obtain and submit to the Bank a certified true copy of the occupation/completion certificate issued by the concerned Municipal and/or other concerned authorities;

  3. Promptly notify the Bank any event or circumstances which might delay the purchase of the Property/the commencement of completion of the construction of the Property;

  4. Maintain the Property in good and substantial state of repair;

  5. Notify the Bank of any change in the employment, business or profession of the Borrower within seven days of such change;

  6. Duly and punctually compel with all the terms and conditions of holding of the Property and all the rules, regulation and bye-laws of the concerned co-operative society, association, company or any other authority, if applicable and pay such maintenance and other charges, dues and outgoings pertaining to or in respect of the Property or for the use thereof.

  7. Keep himself/itself acquainted with the rules of the Bank, in force from time to time, in relation to availing of financial facilities from the Bank;

  8. Insure and keep insured the Property against fire and other customary risks and hazards, for a value as may be required by the Bank, with an insurance company acceptable to the Bank and the Bank shall made the sole beneficiary under the policy and shall produce evidence thereof to the Bank whenever called upon to do so; The borrower agrees that in the event of the Borrower failing to insure the Property to the satisfaction of the Bank, the Bank shall be entitled to cause the Property to be insured with an insurance company for all risks that the Bank may in its sole discretion deem fit and to debit the insurance charges to the Loan account of the Borrower.

  9. Promptly inform the Bank of any loss or damage to the Property due to fire, earthquake, flood, storm, tempest or typhoon or malicious damage or any act of God;

  10. Notify and furnish to the Bank details of any additions to or alterations in the Property which might be proposed to be made;

  11. Allow any person authorised by the Bank to have free access to the Property for the purpose of inspection of the Property.

  12. Promptly within 10 days give notice to the Bank of :
    (i) Any dispute which might arise between the Borrower and any person or any governmental body or authority relating to or concerning the Property or otherwise;

    (ii) Any distress or execution being levied against the Property;

    (iii) Any material circumstance affecting the ability of the Borrower to repay the Loan or any amounts due to the Bank in manner stipulated herein;

  13. Inform the Bank at regular intervals of the progress of the construction of the Property;

  14. Do, perform and execute such acts, deeds, matters and things as the Bank may consider necessary either to perfect the security provided for herein or to carry out the intent to this Agreement;

  15. Register the charge created in favour of the Bank, in proper form with the Registrar of Companies (Applicable in case of company).

  16. Submit, on demand to the Bank at any time, for the purpose of verification the originals of any/all copies of documents submitted to the Bank;

  17. Permit the Bank or any authorised representatives or agents of the Bank to inspect all or any of the books of accounts and other records of the Borrower.

  18. Execute all such other agreements, documents, declarations, undertakings as may be required by the Bank at any time during the currency of the Loan.

  19. In case of the property comprising of the vacant plot of land, duly commence the construction on the property within a period of 12 months from the date hereof.

  20. Create in favour of the bank an Equitable, English/First legal mortgage or mortgage in any other form over the property on such terms and conditions the bank may deem necessary and expedient for securing the amounts payable to the bank and execute any documents and complete formalities as may be required by the bank.

 

7.2 Negative Covenants

The Borrower further covenants with the Bank that unless the Bank shall otherwise previously approve in writing, the Borrower shall not:

  1. Utilize the Loan for any speculative or anti-social or illegal or unproductive purpose.

  2. Let out or give on leave and licence or otherwise howsoever part with the possession of the Property or any part thereof;

  3. Sell, mortgage, lease surrender or otherwise howsoever alienate or transfer or create any third party interest in the Property or any part thereof or permit to exist any charge, encumbrance or lien of any kind whatsoever over the Property;

  4. Subject the Property to any family arrangement or partition or convert the Property to HUF property;

  5. Enter into any arrangement with any person, institution or local or Government body for the use, occupation or disposal of the Property or any part thereof;

  6. Change the residential user of the Property, provided that if the Property is used for any purpose other than residential purpose, in addition to any other action which the Bank may take, the Bank shall be entitled to charge and the Borrower shall pay such higher rate of interest as the Bank may, in its sole discretion, determine in the circumstances of the case;

  7. Amalgamate or merge the Property with any other property of the Borrower or with any other adjacent property nor create any right of way or any other easement on the Property;

  8. Stand surety for any person or guarantee the repayment of any loan or overdraft or other obligation of any person;

  9. Prepay or repay any other loan or financial obligation without first repaying the Loan and other amounts due to the bank under this Agreement.

  10. Leave India for employment or business or for long term stay abroad without fully repaying the Loan together with interest and other amount including prepayment charges as per the rules of the Bank then in force (Applicable in case of firm, individual or sole proprietor);

  11. Make any change in the constitution, management or existing ownership or control or share capital of the Borrower (Applicable in case of company or firm);

  12. Alter its share capital or issue any further shares (Applicable in case of company);

  13. Dissolve or admit any new partners (Applicable in case of firm);

  14. Enter into any reconstruction or arrangement or merge or amalgamate with any other company or body corporate or enter into any partnership (Applicable in case of a company or firm);

  15. Execute any Power of Attorney, Indemnity or any other deed, in favour of any third person enabling such person to deal with the Property in any manner.

 

ARTICLE 8
REMEDIES OF THE BANK

In one or more of the event specified in this Article (hereinafter called “Events of Default”) shall have happened, then, the Bank may, by a written notice to the Borrower declare that the principal and all accrued interest on the Loan and all amounts under any agreement or document subsisting between the Bank and the Borrower have become payable forthwith by the Borrower to the Bank and upon such declaration the same shall become due and payable forthwith and the security created in favour of the Bank for the Loan shall become enforceable, notwithstanding anything to the contrary in this Agreement or in any other agreement(s) or instruments.

8.1 Events of Default

  1. Payment of dues :
    If any default shall have occurred in payment of Pre EMIs and/or EMIs of any part thereof and/or in payment of any other amounts or any part thereof due and payable to the Bank in terms of this Agreement and/or in terms of any other agreement(s)/document(s) that may be subsisting or that may be executed between the Borrower and the Bank hereafter;

  2. Performance of Covenants:
    If default shall be occurred in the performance of any other covenants, conditions or agreements on the part of the Borrower under this Agreement or any other agreement(s) between the Borrower and the Bank in respect of the Loan or any other loan or overdraft;

  3. Supply of Misleading Information:
    If any information given by the Borrower to the Bank in the Application or otherwise is found to be misleading or incorrect in any material respect or any representation or warranty referred to in Article 6 is found to be incorrect;

  4. Depreciation of Security:
    If any property on which the security for the Loan is created depreciates in value to such an extent that in the opinion of the Bank further security should be given and such security is not given;

  5. Sale of Disposal of Property:
    If the Property or any part thereof is let out, given on leave and licence, sold, disposal off, charged encumbered or otherwise alienated in any manner whatsoever;

  6. Attachment or Distraint of Property:
    If an attachment or distraint is levied on the Property or any part thereof and/or proceedings are taken or commenced for recovery of any dues from the Borrower of the Property;

  7. Failure to Furnish Information/Documents:
    If the Borrower fails to furnish any information or documents required by the Bank;

  8. Failure to inform Event of Default:
    If the Borrower fails to inform the Bank of the happening of any Event of Default or any event which after the notice or lapse of time or both would become an Event of Default;

  9. Non-payment/Non-renewal of Cheque:
    If a cheque in respect of any monthly payment is dishonoured;

  10. Non-delivery of Cheques:
    If the Borrower fails to deliver post dated cheques in accordance with the terms of the Loan or as and when demanded by the Bank;

  11. Failure to Deliver Balance Confirmation:
    If the Borrower fails to sign and deliver to the Bank the balance confirmation of the Loan as and when required by the Bank in the absence of any manifest error in calculation of such statement pointed out by the Borrower within 10(ten) days after receiving the statement from the Bank;

  12. Security Becoming Unenforceable:
    If any security or guarantee for the Loan becomes infructuous or is challenged by the Borrower or any other person;

  13. Divorce or Death:
    Where the Borrower, or where the Loan has been provided to more than one Borrower, any of the Borrowers is divorced or dies (Applicable in case of an individual);

  14. Cross Default:
    If the Borrower makes a default in performance of any of the terms, covenants and conditions of any other loan or facility provided by the Bank of the Borrower;

  15. Failure to Furnish End Use Statement:
    If the Borrower fails to furnish to the Bank detailed end use statement of the Loan as and when so required by the Bank within 10(ten) days of receiving such request from the Bank;

  16. Change in Constitution, etc.:
    There is any change in the constitution, management or existing ownership or control of share capital of the Borrower (Applicable in case of a company or firm);

  17. Insolvency:
    Where the Borrower is an individual, if the Borrower commits an act of insolvency or makes an application for declaring himself an insolvent or an order is passed against the Borrower declaring him an insolvent/Where the Borrower is a partnership firm, if the Borrower, is dissolved or a notice of dissolution is given to the Borrower or any of its partners or if the Borrower or any of its partners commits an act of insolvency or makes an application for being declared insolvent or an order is passed declaring it or them or any of them an insolvent/ Where the Borrower is a company, if the Borrower is unable to pay its debts within the meaning of section 434 of the Companies Act, 1956 or a resolution for winding-up of the Borrower is passed or any petition for its winding-up is filed or any order for winding-up is made against the Borrower or if a liquidator is appointed in respect of any property or estate of the Borrower.

  18. Involvement in civil litigation and criminal offence
    If the borrower or any of the borrowers is/are involved in any civil litigation or criminal offence.

 

8.2 Notice on the happening of an Event of Default

If any Event of Default or any event which, after notice or lapse of time of 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, which after notice or lapse of time or both would constitute an Event of Default and without prejudice to the rights of the Bank under Clause 8.1, upon such notice by the Borrower, the entire principal amount of Loan together with interest and all other amounts as stated herein shall become due and payable forthwith and the Bank shall be entitled to enforce the security and recover the Loan with interest and all other amounts.

8.3 Rights against Property

In the event of the Bank becoming entitled to enforce the security created in its favour in terms of this Agreement or any security documents then, without prejudice to the rights of the Bank to enforce the security created in favour of the Bank, the Borrower shall authorise the Bank to do any of the following acts, deeds, matters and things and for the purpose execute necessary writings and Power of Attorney in favour of the Bank;

  1. to give the Property on lease/licence or any other basis to such person or persons and on such terms and conditions as the Bank may deem fit;

  2. to obtain and take possession of the Property from the occupant thereof and to use the Property as the Bank deem fit;


8.4 Expenses of Preservation and Collection

All costs incurred by the Bank after an Event of Default has occurred in connection with:

  1. the preservation of the Property; and

  2. the collection of amounts due under this Agreement shall be charged to the Borrower and reimbursed by the Borrower to the Bank.

 

ARTICLES 9
SECURITISATION

The Borrower expressly recognise and accepts that the Bank shall, without reference to or intimation to the Borrower, be absolutely entitled and have full power and authority, to sell and/or assign to any third party or person as the Bank may decide the Loan and all outstanding due to the Bank under this Agreement in any manner, in whole or in part and on such terms as the Bank may decide including reserving to the Bank the power to proceed against the Borrower, on behalf of the assignee, in events of default for any amounts due by the Borrower under this Agreement. Any such sale or assignment shall bind the Borrower and the Borrower shall accept the third party as its sole creditor or creditor jointly with the Bank and in such event the Borrower shall pay to the Bank or such creditor or as the Bank may direct the outstanding amounts due by the Borrower under this Agreement.


ARTICLE 10
COLLECTIONS/ADMINISTRATION

The Borrower expresses, recognises and accepts that the Bank shall, without prejudice to its right to perform such activities itself or through its officers or employees, be entitled and full power and authority to appoint one or more third parties as the Bank may select and to delegate to such third party all or any of its functions, rights and powers under this Agreement relating to administration of the Loan including the right and authority to collect and receive on behalf of the Bank from the Borrower the PRE EMI, EMI and other amounts due by the Borrower under this Agreement and to perform and execute all lawful acts, deeds, matters and things connected therewith and incidental thereto including sending notices, contacting the Borrower, receiving cash/cheques/drafts/Mandates from the Borrower and giving valid and effectual receipts and discharge to the Borrower. For the purpose aforesaid, the Bank shall be entitled to disclose to such third parties all necessary or relevant information pertaining to the Borrower and the Loan and the Borrower hereby consents to such disclosure by the Bank.

The borrower further agrees that in addition to any other right enjoyed by the bank in the event of the borrower committing any act of default, the bank shall be entitled, to disclose to the Reserve Bank of India or any other authority or to any third person, on its being called upon to do so, the name/identity of the borrower and the fact of having committed any act of default as aforesaid.


ARTICLE 11
CROSS LIABILITY

The Borrower expressed accepts that if the Borrower fails to pay any money due or which may be declared due prior to the date when the same would have otherwise become due or commits any default under this Agreement or any other agreement with the Bank under which the Borrower is enjoying financial/credit facilities with the Bank, then, in such event, the Bank shall, without prejudice to any of its specific rights under this Agreement or the other agreements, be absolutely entitled to exercise all or any of its rights under this Agreement and the other agreements as if an event of default has occurred under this Agreement and the other agreements.


ARTICLE 12
CROSS COLLATERAL

The Borrower acknowledges that in the event of repayment by the Borrower of the Loan and other amounts due under this Agreement but there being any outstanding by the Borrower under any other financial facility availed of by the Borrower from the bank, then in such event, the Bank shall not be obliged to release the security created by the Borrower under this Agreement and the Borrower undertakes to extend the security to cover such outstanding financial facility.


ARTICLE 13
WAIVER


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 nor shall it be construed to be a waiver thereof any acquiescence in such default; nor shall the action or inaction of the Bank in respect of any default or any acquiescence in any default, affect or impair any right, power or remedy of the Bank in respect of any other default.


ARTICLE 14
EFFECTIVE DATE OF AGREEMENT

The agreement shall be binding on the parties hereto on and from the date of execution hereof, and shall remain in force and effect until all the monies due and payable to the Bank under this Agreement as well as all other agreement(s), document(s) that may be subsisting/executed between the Borrower and the Bank are fully paid.


ARTICLE 15
MISCELLANEOUS

15.1 Place and Mode of Payment by the Borrower

  1. All cheques or bank drafts towards payment under this Agreement shall be drawn in favour of the Bank on a scheduled bank in the town or city where the Office of the Bank 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 of payment. Credit will be given only on realisation thereof by the Bank.

  2. The Bank shall apportion the monies credited to the account of the Borrower with its office as aforesaid towards repayment and payment of the Loan and interest in accordance with the Schedule of amortisation and interest payments. Any amount deposited by the Borrower before the date on which it is to be appropriated for repayment or payment of any amount due to it shall be appropriated by the Bank towards repayment or payment of amounts due only on its due date.


15.2 Inspection

The Borrower shall permit inspection of all books of accounts and other records maintained by him by the Bank or the person authorised by the Bank.

15.3 Annual Income Statement

The Bank shall have the right to require the Borrower to furnish any information/documents concerning his employment, trade, business or profession at any time and the Borrower shall furnish such information/documents immediately.

15.4 Disclosure & Inspection

The Borrower hereby agrees as a pre-condition of the loan/advances given to the Borrower by the bank that, in case the Borrower 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 the Borrower’s 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.

The borrower shall permit inspection of all books of accounts and other records maintained by him in respect of the loan, to officers of the bank. The borrower shall also permit similar inspection by officers of such other companies, banks, institutions or bodies as the bank may approve and intimate the borrower.
The bank shall have the authority to make available any information contained in the loan application form and/or any document or paper or statement submitted to the bank by or on behalf of the borrower and/or pertaining or relating to the borrower and/or to the loan including as to its repayment conduct, to any rating or other agency or institution or body as the bank in its sole discretion may deem fit. The bank shall also have the authority to seek and/or receive any information as it may deem fit in connection with the loan and/or the borrower from any source or person or entity to whom the borrower hereby authorises to furnish such information.

The Borrower also understands that:

  1. The Credit Information Bureau (India) Limited and any other agency so authorized may use , process the said information and data disclosed by the bank in the manner as deemed fit by them; and

  2. The Credit Information Bureau (India) Limited 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 granters or registered users, as may be specified by the Reserve Bank in this behalf.


15.5 Amendment

Any amendment to this Agreement shall be valid only if made by a written agreement signed by both the Parties. The bank shall be entitled to at its sole discretion, alter or amend the terms or conditions of this agreement by written intimation sent to the Borrower by mail or courier.


15.6 Costs and Expenses

  1. The Borrower shall additionally pay, forthwith on demand to the Bank all costs (including legal costs between legal counsel and clients on a full indemnity basis), charges (including stamp duty) and expenses incurred and/or to be incurred by the Bank in connection with the investigation of title to the Property, valuation of the Property, preparation, execution, performance, enforcement and realisation of this Agreement, security documents and other documents and instruments executed in pursuance hereof. The Borrower acknowledges that stamp duty is applicable to this Agreement and the security documents and undertakes forthwith on demand to pay or reimburse to the Bank all such stamp duty.

  2. Without prejudice to the rights of the Bank under Chapter XVII of the Negotiable Instruments Act, 1881 or their rights under this Agreement, the Borrower shall pay to the Bank a charge not exceeding Rs.300/- for dishonour of any cheque given by the Borrower on the first presentation and a further charge not exceeding Rs.300/- on dishonour on the second presentation.


15.7 Assignment

The obligations herein shall bind not only the Borrower but his heirs, legal representatives, executors, administrators and/or as the case may be, its successors. The Borrower shall not be entitled to transfer or assign any of its obligations herein. The Bank may however transfer or assign any of its rights or obligations herein without any approval or consent of the Borrower. Upon such assignment the Borrower shall fulfil and perform all his obligations to such assignee, in accordance with the terms of this Agreement as if such assignee were the lender herein and shall execute all documents required in this behalf by the Bank. All costs of transfer and assignment shall be borne by the Borrower. The bank shall have the right to create charge over the property in favour of any company, bank, institution or body by way of security for any refinance facility or any loan availed of by the bank from such Company, bank, institution or body. The bank shall also have the right to transfer or assign the mortgage over the property in favour of any Company, bank, institution or body in connection with any sale or transfer of the loan by the bank to them.


15.8 Sharing of Information

The borrower hereby authorizes the Bank or is subsidiaries/affiliates and their agents to exchange, share or part with all the information relating to the borrower’s loan details and repayment history information and all information pertaining to and contained in this agreement to affiliates/subsidiaries of the bank/banks/financial institutions/Credit Bureaus/Agencies/Statutory Bodies as may be required and undertakes not to hold affiliates/subsidiaries of the bank and their agents liable for use of the aforesaid information. The borrower also acknowledges that the findings of the title search and valuation etc., which are done as part of sanction process by the bank, are proprietory to the bank and sole and exclusive property of the bank. The borrower shall have no right to share/access such information


15.9 Service of Notice

Any notice or request to be given or made by a party to the other shall be in writing. Such notice or request shall be deemed to have been duly received by the party to whom it is addressed if it is given or made at such party’s address specified below or at the address which such party shall have designated by written notice to the other party giving such notice or making such request;

For the Bank : At its Office mentioned in the Schedule 1

For the Borrower : The address of the Borrower given at the end of this
Agreement

Any notice by the Bank to the Borrower shall be deemed to have been received by the Borrower on the expiration of 48 hours after the same shall have been sent by registered post and it delivered personally, when left at the address of the Borrower as aforesaid. A certificate by an officer of the Bank who sent such notice that the same was so sent shall be final and conclusive. Any notice or request by the Borrower shall be deemed to have been received by the Bank on actual receipt thereof by the Bank.


15.10 Jurisdiction

In the event of any dispute arising under this Agreement the competent Courts in the City where the Office of the Bank is situated shall alone have exclusive jurisdiction to entertain and try the proceedings arising out of such a dispute and accordingly the parties hereto submit to the exclusive jurisdiction of the said Courts.


15.11 The borrower agrees/confirms as follows:

  1. The bank may return the documents of title to either/any of the borrowers notwithstanding any contrary advice/intimation from either/any of the borrowers at a later date;

  2. To keep alive the Insurance Policy/Policies assigned in favour of the bank by paying on time the premium as they fall due and produce the receipts to the bank whenever required;

  3. The bank shall have the right to receive and adjust any payment that it may receive in connection with any insurance policy/policies against the loan and alter the amortisation schedule in any manner as it may deem fit, notwithstanding anything to the contrary contained in this Agreement or any other document or paper;

  4. That he has scrutinised and is satisfied with the building plan, commencement certificate and all the requisite permissions pertaining to the property and that the construction is as per the approved plan and of a satisfactory quality.

That the terms and conditions and all the covenants and details of the Schedule hereunder shall be read and construed as part and parcel of these presents.


15.11 Arbitration

In case any dispute arises at any time between the parties hereto as to the construction, meaning or effect of this agreement or any clause or provision contained herein or the respective rights, obligations or liabilities of either party hereunder, the parties shall endeavour their best to resolve it by mutual discussions and agreement. If the dispute cannot be resolved within 7 days, then the same shall referred to arbitration of the sole arbitrator appointed by the bank and in accordance with the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof for the time being in force. The arbitration proceedings shall be in English. The venue of the arbitration shall be as decided by the bank at its sole discretion


15.12

This Agreement, Schedule 1 and the relevant Schedules as applicable to the borrower and signed by the borrower and the bank shall form one single agreement and shall be read in conjunction with each other. In case of any contradiction between this agreement and the schedules the latter shall prevail.

IN WITNESS WHEROF the parties hereto have executed/caused to be executed these presents the day and year first hereinabove written in the manner herein after appearing.

For Company
Name :
Registered Office :
Signed and Delivered on _________________)
behalf of the Borrower by _________________)
the hand of its duly _________________)
authorised signatory _________________)
Mr. _________________)
(Note: Execution to be by authorised official and/or under Common Seal as per Board Resolution and Articles of Association of Company)

For Parntership Firm
Name:
Place of Business:
Signed and Delivered on behalf _________________)
of the Borrower by its partners _________________)
Mr.______________________ )
Mr.______________________ )

For Sole Proprietor/INDIVIDUAL/S
Signed and Delivered by the _________________)
Borrower(s) _________________)
Mr./Ms.________________________ )
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ )
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ )
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ )
Address: _________________________)
_________________________________)

For the Bank
Signed and Delivered _________________)
By_____. )
by the _________________)
hand of its authorised )
signatory )
Mr./Ms.______________________ )

 

SCHEDULE I

(As defined in Clause 1.1 (q) of the Loan Agreement)

Address of the Bank’s Branch Office : Development Credit Bank ___________

1. Effective Date : __________________
(As defined in Clause 1.1 (s) of the Loan Agreement)

2. Name and Address of Guarantor (s) :_______________________
(As defined in Clause 1.1 (d) ________________________
of the Loan Agreement) ________________________
________________________
________________________


3. Amount of the Loan Rs.________(Rupees _________________)
(As defined in Clauses 1.1 (e) & 2.1 of the Loan Agreement)

4. Tenor Of Loan : ______ months/years from the date of creation of Loan Account in the records of the Bank.
(As defined in Clause 3.1 (a) of the Loan Agreement)

Number of EMI : __________ Amount Of EMI: ___________

Due Date of First EMI : __________ Due Date of Last EMI: ________

  • Payment of Interest only during the period of construction.
  • Payment of EMI during the construction period.

5. Description of the property : ________________________
(Location, address, area, etc.) ________________________
________________________
________________________
(As defined in Clause 1.1 (n) of the Loan Agreement)

Name of Builder/Developer/Vendor: ________________________

    Property Type:
  • Under Construction
  • Ready-Built
  • Plot


6. Amount of Purchase Consideration/Cost Of Construction: Rs. ___________

Contribution of Borrower : Rs. ____________
(As defined in Clause 5 (A) (f) of the Loan Agreement)


7. DCB Mortgage Fixed Rate of Interest on the Loan: ______% per annum to be charged per Month
OR
Benchmark DCB Prime Lending Rate: ____% per annum to be charged per Month

DCB Mortgage Floating Rate of Interest on the Loan: Benchmark DCB Prime Lending Rate + ____% per annum to be charged per Month
(As defined in Clause 2.2 (a) of the Loan Agreement)

First Cheque Dishonor Charges Rs______________/-
Second Cheque Dishonor Charges Rs______________/-

In case of Flexible Repayment/Step Up

EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date
EMI Rs._____/- from __________________ date to ____________________date

8. a. Part Prepayment penalty of _______% on the amounts pre paid over and above 25% of the
outstanding.

b. Foreclosure penalty of ______% on the principal outstanding amount as well as on all other
payments made in the proceeding 180 days.

SIGNED AND DELIVERED:

For the Borrower

For the Bank

X
Name: __________________
X
Name: __________________
X
Name: __________________
X
Name: __________________
X
Name: __________________
X
Name: __________________
X
Name: __________________
X
Name: __________________
   

 

SCHEDULE II

APPLICABLE TO HOME EQUITY

ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO HOME EQUITY

I. Definitions

1.1 In this Schedule unless the context otherwise requires:

  1. “ Loan Agreement” means the main Loan Agreement along with Schedule I , bearing even date with these presents, executed between the Borrower and the Bank , as modified and altered , from time to time by agreement between the Parties;

  2. “Property” means the immovable property described in Schedule I hereunder written to be mortgaged in favour of the Bank pursuant to the Loan Agreement. This definition shall be in substitution of the definition of “Property” provided in the main Loan Agreement;

  3. “Facility” shall mean the facility of the loan provided to the Borrower, which is either in the nature of an enhancement of the existing Loan or buying over of the existing Loan with enhancement or Personal Loan or Loan for the purposes of business/profession of the Borrower.


II. Facility

2.1 The Borrower agrees to avail from the Bank and the Bank agrees to provide to the Borrower upon the terms and subject to the condition herein set forth, the Loan not exceeding the amount stated in Schedule I.

This Clause shall substitute Clause 2.1 of the main Loan Agreement.


III. Mode of Disbursement

2.5(b) Upon the request of the Borrower and if the Bank, in its sole discretion, decides, disbursement of the Loan may be made by the Bank to any third-party or person as the Borrower may direct. Such disbursement shall be deemed to have been made by the Bank to the Borrower.

This Clause shall substitute Clause 2.5(b) of the main Loan Agreement.


IV. Occupation of the Property

4.2 The Borrower represents and warrants that, the Borrower/Owner is the owner of the Property and

  1. has given the Property on lease/leave and license/occupancy basis to the persons and for the term specified in the Schedule I to the main Loan Agreement and the Borrower will not renew the lease/leave and license without the prior permission of the Bank in writing.

    OR
  2. the property is in the sole occupation and possession of the Borrower/Owner. The Borrower agrees and undertakes that the Borrower shall not without prior permission of the Bank in writing (which the Bank shall in its discretion be entitled to refuse) give the Property on lease/leave and licence or any occupancy basis to any person or party.

V. Conditions precedent to Disbursement of the Loan.

5.B (d) Evidence that the borrower/Owner has a clear and marketable title free from all encumbrances to the Property capable of being mortgaged in favour of the Bank.

This Clause shall substitute Clause 5(B)(d) of the main Loan Agreement.

VI. Negative Covenants

7.2(a) Utilize the loan for any speculative or anti-social or illegal or unproductive purpose and the end use of the Loan shall be as per the declaration furnished by the Borrower to the Bank under Schedule B hereunder written. The Borrower shall furnish detailed statements of end use the Loan as and when required by the Bank.

This Clause shall substitute Clause 7.2(a) of the main Loan Agreement.

VII. Miscellaneous.

  1. The Borrower shall not question or dispute the accounting arrangement contemplated by the facility hereunder, except in the case of manifest error in the computation of figures.

  2. The terms and conditions of this Schedule shall be in addition to and not in substitution of the main Loan Agreement and Schedule I thereto.

The Borrower declares that the loan will be utilized for the following purpose:

  • Marriage Expense
  • Travel
  • Business/Profession
  • Renovation of the Property
  • Education expenses for children/family member
  • Medical Expenses
  • Other

The Borrower undertakes not to utilize the Loan for any speculative or anti-social or illegal or unproductive purpose and use of the Loan would be as mentioned above. The Borrower further undertakes to submit detailed statements of end use of the Loan as and when required by the Bank.

IN WITNESS WHEREOF the parties hereto have executed/caused to be executed these presents the day and year first hereinabove written in the manner hereinafter appearing.

For the Borrowers
Signed and Delivered by the Borrower(s) :

Mr./Ms. ____________________________________ x

Address: ___________________________________

__________________________________________

Mr./Ms. ____________________________________ x

Address: ___________________________________

__________________________________________

Mr./Ms. ____________________________________ x

Address: ___________________________________

__________________________________________

Mr./Ms. ____________________________________ x

Address: ___________________________________

__________________________________________

In the presence of witness :


Mr./Ms. _________________ x


For the Bank
Signed and Delivered by DCB by the
Hand Of its authorized signatory :

Mr./Ms. _________________ x

 

(TO BE SIGNED BY THE BORROWER)
DECLARATION

I/We, ________________________________________________ residing at ______________________________ _______________________________________________________ do hereby solemnly declare and state as under:

*1. I/We say I am/We are competent to make this Declaration.

OR

1. I say that I am making this Declaration on behalf of and in my capacity as Director of _______________________________ Ltd., a company incorporated and registered under the Companies Act, 1956 having its registered Office at ____________________________________ (hereinafter called the “Borrower”) and I am duly authorised to make this Declaration for and on behalf of the Borrower by resolution passed by the Board of Directors of the Borrower. I say that the said resolution has not been rescinded or modified and is in full force and effect. I say that this Declaration creates a legal and binding obligation of the Borrower.

OR

1. We are the partners of M/s. ___________________ a partnership Firm registered under the Indian Partnership having its principal place of business at ______________________________ (hereinafter called the “Borrower”).

*2. I/We declare that I/We am/are or the Borrower is absolutely seized and possessed of and otherwise well and sufficiently entitled to the immovable property described in the First Schedule hereunder written (hereinafter called “Property”).

OR

2. I/We declare that I/We am/are or the Borrower is absolutely seized and possessed of and otherwise well and sufficiently entitled to the immovable property described in the First Schedule hereunder written and to the building/dwelling place being constructed by the Borrower on the said immovable property (hereinafter called “Property”).

3. I/We say that ____, (hereinafter called the “Bank”) has, at my/our/the Borrower’s request, sanctioned/agreed to sanction to me/us/the Borrower a Loan in the principal sum and on the terms and conditions stated/contained in the Loan Agreement executed between me/us the Borrower and the bank.

4. I declare that in consideration of the said Loan sanctioned/agreed to be sanctioned by the Bank to me/us/the Borrower, I/We/the Borrower have/has agreed to create security in favour of the Bank by creating an equitable mortgage by deposit of title deeds over the Property to secure the due repayment to the Bank of the said Loan, interest, fees, commitment charges, costs, charges and expenses and all other amounts payable my me/us/the Borrower to the Bank.

*5. I/We say that I/We am/are or the Borrower is the absolute owner/s or lessees/s of the Property intended to be mortgaged in favour of the Bank.

OR

5. I/We say that I/We am/are or the Borrower is a registered member of ____________________ Co-operative Society Limited and as such are/is entitled to Property.

6. I/We say that apart from the documents of title mentioned in the Second Schedule hereunder written (hereinafter called the “said title deeds”) there are no other title documents pertaining to the Property.

7. I/We state that the original Agreement for Sale/Indenture of Conveyance/Indenture of Lease in respect of the Property has been lodged for registration with the Sub-Registrar for Assurances. I/We undertake to deliver and deposit the said original document with the Bank in case the same is received by me/us/the Borrower and I/we declare that on such delivery and deposit the said document will form part of the said title deeds to be deposited with the Bank.

*8. I/We state that a society of the purchasers of flats in the building where the Property is situated has not been formed till date. I/We undertake to deliver and deposit with the Bank the share certificates relating to the shares to be issued to me/us/the Borrower by the said society as and when the said shares are issued and I/We declare that on such delivery and deposit the said share certificates will form part of the said title deeds to be deposited with the Bank.

9. I/We say that I/We/the Borrower have/has obtained the permission of the society/association/company/owner/builder for mortgaging the Property in favour of the Bank.

*10. I/We say that I/We/the Borrower have/has obtained the permission of the Competent Authority under the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 for mortgaging the Property in favour of the Bank.

OR

10. I/We say no permission is required to be obtained under the provision of the Urban Land (Ceiling and Regulation) Act, 1976 for mortgaging the Property in favour of the Bank.

11. I/We say that I/We have acquired the Property with my/our self acquired funds and I/We am/are the sole and absolute owners/lessees thereof and no other person has any share, right, title or interest of any kind or nature whatsoever in the Property.

12. I/We say that I/We/the Borrower have/has a clear and marketable title to the Property free from encumbrances and reasonable doubts and/or I/We/ the Borrower is/are in exclusive undisturbed possession and occupation of the Property.

*13. I/We say that no material change has taken place which would affect the construction/purchase of the Property.

14. I/We say that the Property is free from any mortgage, charges, liens, demands or claims whatsoever and is not the subject matter of any list pendens, attachment or any other process issued in any Court or authority and no litigation, suit, writ, action, investigation or arbitration proceedings or other proceedings are/have been initiated or are pending against me/us/the Borrower in respect of the Property or any part thereof. I/We say that there is no writ, action, suit or proceeding decided or disposed off or any judgement or order of any Court or authority which has or is likely to have a material adverse effect on me/us/the Borrower or its business, properties or assets.

15. I/We state that the said premises/immovable properties have been given on leave and license / lease for occupation _______________________ the same are in use and occuption of the said licensee/ lessee / occupier. I/We agree and undertake on behalf of the company that on expiry or termination of the lease / license /occupancy term the possession of the said premises will be handed over to the Bank. I/We have given irrevocable instructions and authority to the lessee/licensee/occupier to hand over possession of the said premises to the Bank on expiry of the term of the Lease/License / Occupancy.

OR

Upon the Bank giving to me/us/the Company a written notice to enforce the said security, I/We/the Company, I/Our/the company’s servants, officers and agents shall forthwith vacate / have the said premises/immovable properties vacated and hand over vacant possession thereof to the Bank.

OR

I/We state that the said premises in the occupation of ________________ and I/We have given irrevocable instructions and authority to ______________________ to vacate and hand over possession of the said premises to the Bank immediately on Bank’s request.

16. I/WE hereby agree, confirm and undertake that in case I/We / Borrower(s) default in making repayment of the loan installments or other amounts due from me / us / Borrower(s), in terms of the Agreement with the Bank, the Bank will have complete liberty to sell, alienate or encumber the said property in any manner whatsoever the Bank deems fit and I/We will hand over the entire possession of the said property without any demur or protest and the Bank will have complete liberty to take possession of the said property.

17. I/We have furnished /will furnish all the documents of title in my/our possession to you and the same may be retained or dealt with in such manner as may be in accordance with the Agreement and other documents executed / to be executed by the Borrowers.

18. I/We say that as on date I/We have in my/our possession, power and control only those documents, evidences and writings relating to the said property all of which are more particularly described in the Second schedule hereunder written/hereto attached being the title deeds in respect of the said property. I/We hereby unconditionally agree, confirm and undertake that if at any time hereafter any further title deeds relating to the said property come into my/our possession, power or control, I/We shall hand over the same to the Bank to perfect the security by way of equitable mortgage proposed to be created by me/us over and in respect of the said property in favour of the Bank.

19. I/We have scrutinised and am/are satisfied with the building plans, Commencement certificate and all the requisite permissions pertaining to the property and that the construction is as per the approved plans and of a satisfactory and standard quality.

20. I/We undertake that the I/We/the Borrower shall not seek or attempt to further mortgage or charge or seek or attempt to sell, lease, sub-lease give on leave and licence, let out, transfer dispose off or create any third party rights in or over the Property or any part thereof or otherwise deal with the Property in a manner prejudicial to the interests of the Bank and I/We hereby confirm and undertake that I/We/the Borrower shall and will at all times and as and when required make out a clear and marketable title to the Property to the satisfaction of the Bank and/or its legal counsel, free from all reasonable doubts, claims and encumbrances. I/We declare and confirm that I/We/the Borrower have/has not entered into any agreement for sale or otherwise with any person or party in respect of the Property.

21. I/We declare that there is no impediment or hindrance in law or otherwise preventing me/us/the Borrower from creating a mortgage in favour of the Bank over the Property as security as aforesaid. I/We declare that I/We am/are not aware of any document/judgement or legal process or latent defect in my/our/the Borrower’s title to the said property which may prejudicially affect the interest of the Bank.

22. I/We say that no notice of acquisition or requisition has been issued against or published or received in respect of the Property and no adverse claim has been made against the Property or any part thereof nor is the Property reserved for any purpose.

23. I/We say that the Property is not subject to any trust, inheritance or gift or other right whatsoever.

24. I/We declare that I/We/the Borrower have/has observed and performed and will duly observe and perform all the rules, regulations and bye laws of the society/the association/company/other body in respect of the holding and occupation of the Property and the terms and conditions on which the Property has been acquired and I/We/the Borrower will not do or omit to do anything whereby the security in favour of the Bank may be prejudicially affected in any manner whatsoever.

25. I/We declare that I/We/the Borrower have/has duly paid and will duly pay all rates, rents, taxes, cesses, assessments, revenues, duties, society charges and all other demands and outgoings now or hereafter due in respect of the Property and that at present there are no arrears of such rates, rents, taxes, cesses, assessments, revenues, duties, charges, demands and outgoings and that no attachments or warrants have been served on me/us/the Borrower in respect of any Sales Tax, Income Tax, Government revenues or other taxes.

26. I/We/the Borrower shall abide by all the terms and conditions of the Agreement and other documents executed/to be executed by the Borrower, in so far as the terms and conditions are applicable to me/us/the Borrower as owner/lessee of the Property.

27. I/We confirm that the Property in duly insured and undertake that I/We/ the Borrower shall duly pay all insurance premium in respect thereof.

*28. I say that the Borrower has in General Meeting duly passed the necessary resolution under Section 293(1) (a) of the Companies Act, 1956 for creation of the mortgage over the Property.

29. I/We hereby agree to indemnify and keep the Bank indemnified from any loss, damage, claim, action, costs, charges and expenses which the Bank may suffer or incur as a result of any defect in my/our/the Borrower’s title to the Property or any misrepresentation made by me/us.

AND I/WE declare that I/We am/are making the aforesaid declaration solemnly and sincerely believing the same to be true and knowing fully well that based on the statements and declarations and the indemnity aforesaid the Bank has sanctioned/agreed to sanction the said Loan to me/us/the Borrower.

THE FIRST SCHEDULE ABOVE REFERRED TO :
(Description of the Property)

_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________

THE SECOND SCHEDULE ABOVE REFERRED TO :
(List of Title Deeds)

_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________

 

Solemnly affirmed at ________ )
By the withinnamed

Mr./Ms: __________________. ) x

Mr./Ms: __________________ ) x

Mr./Ms: __________________ ). x

Mr./Ms: __________________ ) x
in the presence of )

Mr/Ms. : __________________. ) x


Before me,
(Notary Public)


(*to be deleted, if not applicable)


(To be signed by the borrower)

POWER OF ATTORNEY

TO ALL TO WHOM THESE PRESENTS SHALL COME, I/WE SEND GREETINGS:

Whereas I/We am/are the owners of the immovable property described in the Schedule hereunder written (hereinafter called the “property’);

And Whereas by a Loan Agreement of even date made between me/us (therein called the “Borrower”) and Development Credit Bank., (hereinafter called the “Bank”), the bank has agreed to sanction to me/us a Loan in the principal sum and of the terms and conditions contained in the said Agreement;

And Whereas as one of the conditions for sanction of the said Loan and for securing the due repayment by me/us of the said Loan, interest, fees, commitment charges, costs, charges and expenses and all other amounts payable by me/us to the Bank, I/We have agreed to create/created a first and exclusive mortgage in favour of the Bank over the Property by way of an equitable mortgage by deposit of title deeds;

And Whereas I/We have agreed to execute irrevocable Power of Attorney in favour of the Bank authorizing the Bank to do certain acts, deeds matters and things in relation to the Property in the manner hereinafter appearing;

Now Know ye All And These Presents Witness that I/We do hereby nominate, constitute and appoint the Bank acting through any of its officers or representatives (hereinafter called the “said Attorneys”) as my/our true and lawful attorney for me/us in my/our name, on my/our behalf and at my/our sole risk and cost to do, execute and perform all or any of the following acts, deeds, matters and things, that is to say:

  1. In the event of default under afore cited Loan Agreement, to give the property on lease/license/tenancy/or any other occupancy basis to any person or party on such terms and conditions and on such rent/compensation as the said Attorneys may deem fit and to execute necessary agreements, deeds or writings therefore.

  2. To execute and deliver in favour of the bank an English/first legal mortgage or a mortgage in any other form over the Property on such terms and conditions including the power to sell or concur in selling privately and without intervention of any Court, appointment of receiver and such other terms and conditions, as the said Attorney may, in their sole discretion, deem necessary or expedient for better securing the outstanding amounts payable to the Bank.

  3. To obtain and take possession of the Property from occupant of the Property.

  4. To receive any rent or compensation payable by the lessee/ licensee/occupant of the property and to give valid and effectual receipt and discharge thereof and to appropriate the same against the outstanding due to the Bank.

  5. To present any agreement or deed or writing (including deed of mortgage) for registration before the Registrar or Sub-Registrar of Assurances and to Admit execution thereof and to receive the same, duly registered.

  6. To apply for and obtain certificates and clearances that may be necessary for mortgage or lease of the Property and registration of any deed of mortgage or lease deed.

  7. To apply for and obtain the consent or permission of the society /Condominium/Company and any authority or body (including the Competent Authority under the Urban Land (Ceiling and Regulation) Act, 1976) in connection with the mortgages of the Property or giving the Property on lease/license/tenancy basis.

  8. To appear on my/our behalf before any Court, Tribunal or Authority and commence, institute, maintain, prosecute or defend any proceedings relating to or in anywise touching the affairs of the Property.

  9. To sign any verify all vakalatnamas, pleadings, documents, memoranda, petitions and other papers and to file the same before any Court/ Tribunal or other authority.

  10. To state, settle, comprise, submit for arbitration, withdraw, file an appeal or other proceedings in respect of any dispute or matter relating to or in anywise touching the affairs of the Property.

  11. To pay, at my/our cost, the necessary stamp duty and registration charges in respect of the deed of mortgage or lease deed or any other deed or writing relation to the property.

  12. To appoint or nominate any other person or persons to act as attorney in place and stead of the said Attorneys and to delegate to such persons or person all or any of the powers and authorities conferred on the said Attorney by these presents.

 

AND Generally to do, perform and execute or cause to be done, performed and executed all acts, deeds, matters and things relating to concerning or touching these presents or every act, deed, matter or thing which the said Attorney may deem necessary or expedient for the purpose of or in relation to these presents.

AND I/We hereby ratify and confirm and agree to ratify and confirm all that the Bank or any of its officers or representatives nominated by the Bank in that behalf shall have done or caused to be done or shall do or shall cause to be done in or concerning the property by virtue of these presents.

AND I/We hereby declares that this Power Of Attorney shall be irrevocable till the entire outstanding Loan together with interest, costs, charges, expenses and all other amounts payable in relation thereto or in connection therewith or with these presents are fully repaid by me/us to the Bank.

AND I/We hereby declare this power of Attorney shall be binding on my/our heirs, executors, and administrators or as the case may be, successors)

IN WITNESS WHEREOF I /We have hereunto has signed this Power of Attorney as set out in the SCHEDULE herein under given:

SCHEDULE
(Details of the Immovable Properties)
____________________________________________
____________________________________________

SIGNED SEALED AND DELIVERED BY:
Signed and Delivered by the )
Borrower(s) )
Mr./Ms.________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
In the presence of Witness:
Mr./Ms. ________________________ x
Date:
Place:

Before me,


(Notary Public)

 

DEMAND PROMISSORY NOTE

To,

Development Credit Bank Ltd

Rs.____________________

Dated:_________________

On demand I/we, unconditionally promise to pay to Development Credit Bank Ltd. or order, for value received, the sum of Rs. ____________ (Rupees _________________ Only) together with interest @ ______ % p.a. with monthly rests and such other charges as may be prescribed by the said bank Chennai/Calcutta/ Mumbai /New Delhi /Bangalore /Pune /Ahmedabad/Hyderabad. Presentment for payment or noting and protest of this note is hereby waived.

Where there is more than one signatory hereto, the liability of each signatory is joint and several with others.

 

___________________________
Signature of the Borrower

Revenue Stamp Re 1/-

 

 

 

 

___________________________
Name of the Borrower:

___________________________
Signature of the Co- Borrower 1

___________________________
Name of the Co-Borrower 1

___________________________
Signature of the Co- Borrower 2

___________________________
Name of the Co-Borrower 2

___________________________
Signature of the Co- Borrower 3

___________________________
Name of the Co-Borrower 3

   

 

(To be signed by Applicant and Co-applicant)

LETTER OF CONTINUITY

To,
Development Credit Bank
Address


Dear Sir/s

I/We enclose my/our Promissory Note for Rs. _________________ (Rupees ________________________________________ only) payable on demand which is given to you as security for the repayment by me/us to the Bank of any sum now due or which may hereafter be or become due by me/us to the Bank by way of Overdraft in Current Account and/or loans notwithstanding the fact that the Overdraft and/or loans may from time to time be reduced or extinguished, the intention being that the security shall be a continuing security for any borrowing by me/us at any time to the Bank. My/Our liability under the Promissory Note is joint and several along with other co-obligants whether as co-borrower, surety or otherwise

Yours faithfully,

Applicant _________________x

Co-applicant1 _________________ x

Co-applicant2 _________________x

Co-applicant3 _________________x

 

LETTER OF GUARANTEE

Date:                  

To,
Development Credit Bank Limited
Branch ____________


Dear Sir/s,

At my/our request, Development Credit Bank Limited,___________ ( herein after refereed to as the “Bank”) has agreed to grant/granted to the “Borrower(s)”) a loan of Rs._______________( Rupees _______________________________________ only)( herein after called the “Loan”) on terms and condition contained in the Loan Agreement of even date made between the Borrower(s) and the Bank.

  1. In consideration of the Bank having agreed to grant/granted, to Borrower(s) the Loan, I/We, the undersigned hereby absolutely, unconditionally and irrevocably agree to guarantee the due repayment to the Bank by the Borrower(s) of the Loan together with all interest, costs, charges, expenses or other sum payable by the Borrower(s) to the Bank under the Loan or any part thereof, for the time being, due to the Bank in the event of failure on the part thereof, or the time being, due to the Bank in the event of failure on the part of the Borrower(s) in payment thereof.

  2. I/We hereby unconditionally and irrevocably agree and undertake to pay to the Bank at __________, on first demand, without demur or objections forthwith on the Bank notifying such default (such notice to be conclusive of default), all amounts payable by the Borrower(s)to the Bank under the Loan towards principal, interest, costs, charges, expenses or otherwise or any part thereof, for the time being, sum to the Bank including legal costs occasioned to the Bank by the reason of omission, failure in such payment by the Borrower(s) and in case of legal costs, also the cost of enforcement or attempted enforcement of any security in the favour of the Bank for the Loan or costs which the Bank may incur by being joined in any proceeding either with or without others in connection with any such security or any proceeds thereof.

  3. I/We declare that my/our liability hereunder shall be enforceable against me/us notwithstanding that any negotiable instruments shall be outstanding at the time when any proceedings against me/us shall be taken.

  4. I/We declare that the Bank shall not be under any liability to marshal in my/our favour any security or any funds or assets which the Bank may be entitled to receive or upon which the Bank has a claim.

  5. In the event the Borrower(s) shall become insolvent or enter into winding-up (compulsory or voluntary) or the Borrower(s) shall make any arrangement or composition with its creditors, the Bank may (notwithstanding any payment to the Bank by me/ us or any other person of the whole or any part of the amount due to the Bank.) rank as creditor and prove against the asset of the Borrower(s) for the full amount of the Bank’s claim against the Borrower(s) or agree to and accept any scheme or composition in respect thereof and the Bank may receive and retain the whole of the dividends or other payments to the exclusion of all my/our rights in competition with the Bank until the Bank’s claims are fully satisfied and I/We shall not by paying the amount payable by me/us or the Borrower(s) or any part thereof prove to claim against the assets of the Borrower (s) has been satisfied in full and the Bank may enforce and recover payment from us/me of all amount due by me/us notwithstanding any such proof of composition.

  6. I/We agree that I/We shall not be entitled to look in to or consider any question or dispute which may arise between the Bank and the Borrower(s) as regards the terms of the said Loan Agreement or the payment of the amounts due there under.

  7. I/We agree that I/We shall not be discharged or released from my/our liability to the Bank by any arrangements or contracts that may be made between the Bank and the Borrower(s) with or without my/our consent or by any forbearance or indulgence whether as to payment, time of performance or otherwise granted by the Bank to the Borrower(s)

  8. I/We agree that I/we shall not be discharged or released from my/our liability to the Bank (i) by any variance in the said Loan Agreement, without my/our consent or (ii) by any act of omission of the Bank or any other matter which would have the effect of discharging or releasing me/us or (iii) by the Bank making any composition with or promising to give time to or agreeing not to sue the Borrower(s) and I/We both hereby waive all suretyship rights that may be available to me/us.

  9. My/Our liability hereunder shall be joint and several and co-extension with the Liability of the Borrower(s) and the Bank shall be entitled to act as if I/We, am/are the Principal debtor to the Bank for all the payments due by me/us hereunder as aforesaid.

  10. Without prejudice to my/our liability to pay the amount due to the Bank as aforesaid I/We declare that the Bank shall be at liberty to sue the Borrower(s) and me/us jointly and severally or the Bank, shall at its discretion, be entitled to proceed against the Borrower(s) in the first instance or me/us or any of us and I/We bind myself/ourselves to pay on the first demand, the amount due on any judgement that the Bank may obtain against the Borrower(s) with costs thereon.

  11. My/Our liability hereunder shall be determined or in any manner prejudiced by any absorption, amalgamation or reconstitution or alteration in the status or change in the constitution or alteration in the status or change in the constitution of the Borrower(s) or the Bank or of our firm or our Company any rights of the Bank hereunder shall accrue to the benefit of the successors and assigns of the Bank.

  12. I/We declare that my/our liability hereunder shall not in any manner be affected by reason of lapses on the part of the Bank to recover the amount due to it from the Borrower(s).

  13. I/We agree declare that my/our liability hereunder shall be continuing liability and I/We shall remain liable until such time as the loan Agreement remains in force and until such time as all the amounts due to the Bank by the Borrower(s) and all amounts due hereunder have been duly paid to the Bank and the Bank has in writing discharged the Borrower(s) in full. My/our liability shall not be considered as wholly or partially satisfied or exhausted by payment of any sum or sums for the time being due but shall extend to cover and be security for every sum and all sums at any time due to the Bank by the Borrower(s) under the Loan.

  14. I/We agree that my/our liability hereunder shall not be affected in the event of the Bank obtaining any other security or guarantee whatsoever from the Borrower(s) nor would it be affected by the Bank failing or electing not to enforce or realize such other security or invoke such other guarantee. This undertaking shall be in addition to any other security or guarantee given to or obtained by the Bank.

  15. If I/We now have or shall hereafter take any security from the Borrower(s) in respect of my/our liability hereunder, I/We shall not prove in liquidation proceedings of the Borrower(s) to the prejudice of the Bank and such security or guarantee shall stand as security for the Bank also.

  16. Without prejudice to any other right or remedy of the Bank, so long as any money remains owing hereunder, the Bank shall have a first and paramount lien and the right of set-off on all my/our money standing to my/our credit in any account whatsoever with the Bank or to proceed against and recover from any of my/our property or security lying with the Bank in relation hereto or any other transaction notwithstanding any restrictive provision there under with respect to right of enforcement, any amount due and payable by me/us to the Bank pursuant hereto. In the default of payment by me/us, on first demand by the Bank, of the sum due and payable hereunder, the Bank shall be entitled and have the authority, without any further notice to me/us, to adjust and/or appropriate the credit balance in such account or any other monies coming to the hands of the Bank towards liquidation of the sum due and payable by me/us hereunder.

  17. My/Our liability hereunder shall be binding on my/our heirs, executors and administrators or successors as the case may be.

  18. Our liability hereunder is joint and several to the Bank.

  19. I/We agree at the request of the Bank to sign, seal, execute and deliver any deed or other documents that may be necessary or required by the Bank in connection with my/our liability hereunder or the enforcement hereof.

  20. If the borrower(s) is a company, or firm the absence of borrowing powers on the part of the Borrower(s) or any irregularities in the exercise thereof shall not affect my/our liability to the Bank and any moneys advanced to the Borrower(s) shall be deemed to be due and owing notwithstanding such absence of any manifest, clerical or arithmetical error, be conclusive and binding on me/us.

  21. Any demand, notice or other communication hereunder shall be given in writing addressed to the my/our address given herein below. Any such demand, notice or communication shall be deemed to be duly served, if delivered personally, when so delivered and if given by registered post, on expiry of 48 hours after the same has been posted.

  22. (1) I/We understand that as pre-condition relating to grant of the Loan, the Bank requires my/our consent for the disclosure by the Bank of information and data relating to me/us, the credit facility availed of/to be availed by the Borrower, obligations assured/ to be assured, by me/us in relation thereto and default, if any, committed by me/us, in discharge thereof.

    (2) Accordingly, I/We hereby agree and give consent for the disclosure by the Bank of all or any such

    (a) Information and data relating to me/us;

    (b) The information or data relating to any credit facility availed of/ to be availed by me/us; and

    (c) Default, if any, committed by me/us in discharge of such obligation

    as the Bank may deem appropriate and necessary to disclose and furnish to Credit Information Bureau (India) Limited and any other agency authorized in this behalf by Reserve Bank Of India.

  23. (3) I/We further declare that the information and data furnished by me/us to the Bank are true and correct.

    (4) I/We also understand that:

    (a) The Credit Information Bureau (India) Limited and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them; and


    (b) The Credit Information Bureau (India) Limited 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 grantors or registered users, as may be specified by the Reserve Bank in this behalf.

  24. Any expression not defined herein shall have the same meaning as assigned to it in the Loan Agreement.

SIGNED SEALED AND DELIVERED BY

Signed and Delivered by the )
Borrower(s) )
Mr./Ms.________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
Mr./Ms.__________________________ ) x
Address: _________________________)
_________________________________)
In the presence of Witness:
Mr./Ms. ________________________ x


Declaration for Signing in Vernacular language

I, Mr./Mrs.______________________________________________, son/daughter of ____________________________________________________, residing at _______________________________________________________________, do hereby state and declare on solemn affirmation as under:

I have read out and explained the contents of the loan documents and all other documents incidental to availing the loan from Development Credit Bank to Mr./Mrs. ______________________________________________________________________ herein after referred to as “Borrower(s)”and he/she/they have understood the same and do hereby agree to abide by all the terms and conditions of the loan and the clauses of the same. Pursuant to the same the Borrower(s) is affixing his signature hereinbelow.
I declare that whatever I have stated hereinabove is true and correct to the best of my knowledge and belief.
Solemnly affirmed at _______________, on this_____________day of _____________, _________

Signature:__________________
Name:____________________                                                             _________________________
Relation to Borrower(s):__________________                                       Signature/Thumb Impression of


Borrower
Date: _______________________

 

ANNEXURE – 1
LETTER

Place:
Date:
To,
DCB Ltd
_____________ Branch
Dear Sirs
Re: My loan Facility upto a limit of Rs. ___________________ inter alia against equitable mortgage

In consideration of your entertaining my/our application for an advance, I/We hereby undertake to pay your cost, charges and expenses between attorney and client of and incidental to the valuation of the property offered as security, the investigations of my/our title thereto and preparation, execution and stamping of the mortgage thereof and all other documents required to complete the security including all out of pocket expenses or surveyor’s fees and the like. I/We shall create or cause to create mortgage of such nature that bank deems appropriate.
The undertaking will hold good notwithstanding that the negotiations may fall through for any whatsoever.

Yours faithfully

 

ANNEXURE - 2

Visited Mr./Mrs./Ms. ______________________________________ on ____________________ in connection with the loan of Rs. _____________________/- sanctioned to him/her/them by Development Credit Bank Limited.

_________________________
(Signature of person from DSA/Counsellor)

 

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