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

2. 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)