Bond Loan Bond With Surety And Hypothecation Of Property

Loan Bond with Surety and Hypothecation 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 installments with interest on half yearly basis as under :-

Installments Due D tea Principal Amount Interest

1st instalment ______ ______ _______

2nd instalment ______ ______ _______

3rd instalment ______ ______ _______

4th 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_______

    Address______                                                         Surety

3. Name______                                                             Signature _______

    Address_____                                                          Creditor