Deed
of Hypothecation - Machinery
THIS
DEED OF HYPOTHECATION executed at ________ on this the ___________ day of
_________ between
Mr.________________,
son of_____________, aged about ___________ years, residing at
_____________________, hereinafter called the CREDITOR (which expression shall,
unless it is repugnant to the context mean and include his legal
representatives, executors, administrators, and assigns)
And
Mr.________________,
son of_____________, aged about ___________ years, residing at _____________________,
hereinafter called the BORROWER (which expression shall, unless it is repugnant
to the context mean and include his legal representatives, executors,
administrators and assigns);
WHEREAS
The
BORROWER has placed an order for the purchase of, a ___________,
namely________________, {valued at Rs.____________ (Rupees ____________),
(Details of the same are set out in the schedule 'A' hereunder) (hereinafter
referred to as the asset), with the ________________, namely ________________,
having its office at __________, and has remitted an amount of
Rs.______________(Rupees _____________only}, with the said _________________ as
advance towards the sale consideration.
The
BORROWER has approached the CREDITOR for a loan of Rs.______________, (Rupees
_____________only), for the payment of the balance price of the schedule 'A'
mentioned asset. The CREDITOR and BORROWER have agreed that the CREDITOR shall
finance the purchase of the schedule 'A' mentioned asset, on the condition that
the BORROWER hypothecates the schedule mentioned asset with the CREDITOR as
security for the due repayment of the said loan. The parties have agreed to
reduce their agreement to writing
NOW
THEREFORE IN CONSIDERATION OF THE MUTUAL OBLIGATIONS AND UNDERTAKINGS CONTAINED
HEREIN THIS AGREEMENT WITNESSETH AS FOLLOWS:
Payment
by the CREDITOR
The
CREDITOR shall pay to the said manufacturer, on behalf of the BORROWER, a sum
of Rs. ____________/-, (Rupees _______), towards the balance price of the said
asset and shall retain possession of the original invoice of the said asset
till the debt is fully discharged by the BORROWER.
Hypothecation
The
BORROWER hereby hypothecates and creates a charge on the asset more fully
described in the schedule 'A' hereunder to and in favour of the CREDITOR as
security for the repayment of the loan with interest.
Obligations
of the BORROWER
The
BORROWER hereby undertakes to repay the loan amount within a period of ______
months commencing from________ along with interest. The BORROWER shall pay
interest at the rate of ______________ on the principal per month, at
Rs._____________/-, (Rupees ____________only). The Interest and principal are
payable in monthly installments as per schedule-B hereto.
Rights
of the CREDITOR
If
the BORROWER defaults in payment of the amount as per schedule-B hereto then
such defaulted installment will carry interest as if the defaulted installment
is the principal, until it is paid. If the BORROWER fails to pay any ______
installments then the CREDITOR shall be entitled to claim the principal and
interest amount due, and the same shall become payable forthwith, on the
CREDITOR calling upon the BORROWER to make payment of such defaulted principal
amount.
The
BORROWER shall not remove or take the said asset, outside the State without
prior intimation to the CREDITOR.
The
BORROWER agrees and undertakes to insure the asset against all hazards, and
shall produce the relevant receipts, and other documents, whenever called upon
by the CREDITOR so to do.
Any
dispute arising under this Deed or any matter incidental thereto, shall be
submitted to arbitration as per the provisions of the Arbitration and
Conciliation Act 1996 and the venue of the arbitration shall be at Chennai
IN
WITNESS WHEREOF the parties hereto affixed their signatures on the day month
and year mentioned hereinabove
SCHEDULE
'A'
(Describe
the Asset)
SCHEDULE-B
(Describe
the payment schedule)
CREDITOR
BORROWER
WITNESSES
1.
2.
