SECURITY
BOND BY SURETY
BY
THIS BOND Mr.............. residing at.....................................
hereinafter referred to as the 'Surety' acknowledges himself to be bound to Mr.
B hereinafter referred to as the 'Creditor' in the sum of
Rs....................... lent and advanced by the Creditor to Mr. C residing
at... the Debtor, with interest thereon at the rate of Rs... percent per annum
from the date hereof till payment.
WHEREAS
the Creditor has lent and advanced to Mr. C the Debtor above-named a sum of
Rs... repayable by him with interest thereon at the rate of Rs... per cent per
annum.
AND
WHEREAS the said amount has been advanced against the surety giving a guarantee
for repayment of the said amount by the said Debtor and against the said
guarantee being secured by a mortgage of the property of the Surety described
in the Schedule hereunder written and which the Surety has at the request of
the Debtor agreed to do.
NOW
THIS DEED WITNESSETH that in pursuance of there request made by the Debtor to
the Surety the Surety doth hereby guarantor and covenants with the Creditor
that in default of payment of the amount of Rs... with interest as aforesaid by
the Debtor to the Creditor within the lime stipulated by him in the separate
writing executed by the Debtor-for evidencing the said Debt, in favour of the
Creditor, the surety shall pay to the Creditor the said amount of Rs... or any
part thereof remaining unpaid with Interest at the rate of... aforesaid till
payment on demand made to the Creditor in writing
AND
THIS DEED FURTHER WITNESSETH that pursuant to the said agreement, the Surety as
a security for payment of the said amount by the Surety, both hereby grant and
transfer by way of mortgage the said property described in the Schedule
hereunder written TO HAVE and TO HOLD the same unto the Creditor subject to the
covenant for redemption hereinafter contained, And it is agreed and declared
that in the event of the Surety being required to pay the said amount on
default by the Debtor and on the surety so paying the said amount or any part
thereof due and payable to the Creditor the Creditor shall release and
re-convey the said property to the Surety but at the costs of the Surety. And
it is further agreed that in the event of the Surety becoming liable and
failing to pay the said amount or any part thereof as aforesaid, the Creditor
will be entitled to sell the said property through a Court of law and to
appropriate or apply the net sale proceeds thereof towards payment of the
amount to the Creditor by the Surety and/ or the Debtor including costs of the
suit and sale proceedings and to pay the balance if any to the Surety. And the
Surety covenants with the Creditor that he has full right to mortgage the said
property as aforesaid. And the condition of the Bond is that it will be void if
the Debtor pays the said amount to the Creditor with interest as aforesaid,
within the time stipulated otherwise, and failing which this Bond will remain
in full force and effect.
THE
SCHEDULE ABOVE REFERRED TO ( Attach Schedule below)
Signed
and delivered by the
Within
named Surety Mr. A
WITNESSES;
1.
Name & Signature
2.
Name & Signature
