LOAN BOND WITH SURETIES AND LOWER RATE OF INTEREST IN CASE PUNCTUALITY IN PAYMENT

LOAN BOND WITH SURETIES AND LOWER RATE OF INTEREST

                        IN CASE PUNCTUALITY IN PAYMENT

THIS DEED is executed on this………day of…………at ……………… between :

1.    Mr. VK S/o  Mr. GD r/o …………………, hereinafter called the debtor on the first part.

2.    Mr. PC, s/o RP r/o ………………., and  Mr. DC s/o RA r/o  ………………., hereinafter jointly called the  sureties on the second part, and

3.    Mr. KB, s/o RB, r/o …………………, hereinafter called the creditor on the third part.

Whereas the creditor has agreed to advance a loan of Rs.5,00,000.00 to the  debtor, which  is to be repayable in four years with interest at the rate of 18% per annum, provided  two persons  stand as surety of the debtor.

            And whereas sureties above named are ready to stand as sureties of the debtor.

NOW THIS DEED WITNESSES AS UNDER:

            1.  That  in pursuance of the said agreement the creditor has advanced   a sum of Rs.5,00,000.00 (Rupees five lacs only), the receipt of which has been acknowledged by the debtor.

            2.         The debtor shall repay the loan in five years in half yearly instalments of Rs.50,000/- with interest at the rate of 18%    per annum.

            3.         That in case the debtor repays the instalment of loan before at   least  15 days  of the due date, the interest shall be   paid at the rate of 12%  per annum.

4.    That in case of failure on the part of the debtor or repay the loan and

interest or its part thereof, the sureties shall be liable to repay  such unpaid amount of loan and interest, for which sureties are agreed.

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.

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

            Address…………                                                                 Debtor

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

                                                                                                            Surety

            Address………….                                                    Signature…………….

                                                                                                            Creditor