Loan Bond with Surety and Hypothecation of Property
This
Loan Bond is executed on this..........day of............at ....................... between:
Mr.
TH s/o MY r/o ....................hereinafter called the debtor on the First Part.
2. Mr.
LA s/o Mr. WM R/o ...................., hereinafter called the surety on the second part,
and
3. MJ,
s/o Mr. BU r/o ......................., hereinafter called the creditor on the third part.
Whereas
the debtor has applied for a loan of Rs.........which shall be repayable in
instalments 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:
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 :-
Installments
Due D tea Principal Amount Interest
1st
instalment ............... ............... ..................
2nd
instalment ............... ............... ..................
3rd
instalment ............... ............... ..................
4th
instalment ............... ............... ..................
3. That
in case of failure to pay any instalment or part thereof with interest, the
debtor amount alongwith 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 alongwith 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 instalment 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
