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