BOND BY DEBTOR AND SURETY FOR EXISTING LIABILITY

BOND BY DEBTOR AND SURETY FOR EXISTING  LIABILITY

            This bond is executed on this…………..day of…………..at …………………. jointly by :

1.         Mr. HR s/o BS r/o …………………, hereinafter called the debtor and

1.          Mr. RM  s/o RM r/o …………………..,  hereinafter called the security.

            Whereas  Mr. HR has borrowed a sum of Rs………from  Mr. JS s/o Mr. BS r/o ………………………. on……….with an interest on 18% per annum.

            Whereas the said sum was to be refunded alongwith  interest latest by …………………..

            Whereas the debtor failed to return the principal amount and interest within time.

           

            Whereas the creditor has agreed not to  institute a civil suit for recovery of the said sum, provided some body stands as surety.

            I. RM, above named, stand a surety and give this bond after the signature of debtor and   myself and agree that the debtor shall pay the said sum in 12  monthly instalments alongwith  interest at the rate of 24% per annum.

            I further agree that in case of failure to pay the money by debtor in time, the whole amount shall become payable at once.

Witnesses:

1.         Name…………                                                         Signature …………….

            Address………..                                                                   (HR)

2.         Name…………                                                         Signature…………….

            Address………..                                                                   (RM)