LOAN BOND WITH SURETY AND HYPOTHECATEION OF PROPERTY

LOAN BOND WITH SURETY AND HYPOTHECATEION OF PROPERTY

            This Loan  Bond is executed on this……….day of…………at ………………….. between:

1.    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 :

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 instalments with interest on half yearly  basis as under :-

INSTLAMENTS DUE DTEA PRINCIPAL AMOUNT INTEREST

1^st instalment                                    ……………                ……………                ………………

2^nd  instalment                      ……………                ……………                ………………

3^rd  instalment                       ……………                ……………                ………………

4^th 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………………

                                                                                                            Surety

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

                                                                                                            Creditor