central staff college - uco online college... · the execution of document in a proper form and...

CENTRAL STAFF COLLEGE

HANDBOOK

ON

DOCUMENTATION

UCO BANK CENTRAL STAFF COLLEGE

KOLKATA

FOR PRIVATE CIRCULATION ONLY

Version 1 : 01.01.2015

1. This booklet is a training material. While due care has been taken in preparation of this booklet, readers are required to take a final call on the selection of documents depending on the facts of the case.

2. Bank may not necessarily be in agreement with the views expressed in the hand book. In case of any variation with Bank‟s circulars, the Bank‟s circulars would prevail.

यूको बैंक UCO BANK

(A Govt. of India Undertaking)

C.Ramakrishna Central Staff College

DGM / Principal GE-8, Sector III

Salt Lake,

Kolkata – 700 106

FOREWORD

Any commercial transaction the world over is backed by legal agreements. An

agreement sets forth in clear, lucid terms the operational aspects of the transaction

including the amount involved, the interest and repayment aspects, the consequences of

default and the rights and liabilities of the parties to the transaction.

In the banking scenario loans are sanctioned on a daily basis. The facilities offered, the

security obtained and the terms and conditions on which these facilities are offered vary

from case to case. In order to safeguard its commercial interests the Bank has a

standard set of agreements also referred to as “documents”. A document is a written

representation of thought and originates from the Latin word “Documentum” which

means “written proof used as evidence”.

The operational staff at the field level have to ensure that the correct combination of

documents are obtained based on the constitution of the borrower, facility required and

the security offered. Further, stamping of documents and execution of documents are

also of prime importance to make the documents legally valid and enforceable.

Needless to add, the documents have to be preserved safely and care should be taken

to ensure that they do not become barred by limitation.

Central Staff College has come out with this “Handbook on Documentation” which has

also been vetted by Law Department, Head Office. I will be failing in my duty if I do not

place on record the untiring efforts of the faculty and support staff of CSC but for whom,

it would not have been possible to bring out this handbook. I am sure the book fulfills the

long felt need at the operational level and will be well received and be of much use to the

field level functionaries.

With best wishes,

C. Ramakrishna

D P Panda UCO Bank Deputy General Manager Head Office Law Department 10, B T M Sarani

Kolkata – 700 001 MESSAGE

When you do the common things in life in an uncommon way, you will command the

attention of the world - George Washington Carver

I am very pleased to learn that the Central Staff College, Kolkata is bringing an elaborated

version of „Handbook on Documentation‟ with the assistance of Law Department, Head Office.

„Document‟ means a written or printed instrument that conveys information. The term document

generally refers to a particular writing or instrument that has a bearing upon specific transactions

Section 3(18) of the General Clauses Act, 1987 defines document as „a document shall include

any matter written, expressed or described upon any substance by means of letters, figures or

marks or by more than one of those means which is intended to be used or which may be used

for the purpose of recording that matter‟.

A document in the present context of commercial transactions is, therefore, the substratum of

commercial law. The application received from the borrower, and the other written agreements

executed by the borrower and/or the guarantor, in connection with a particular loan transaction,

constitute documents. The process of obtaining proper documents and completion of the

necessary formalities connected therewith is called "Documentation".

The documents are necessary to be procured to identify the borrower/the guarantor; to identify

the security; to have a written evidence of the transactions of lending made by the Bank; to

ensure due repayment of the loan by the borrower/or guarantor; to entitle the Bank to take legal

steps for recovery of the loan, in the event of non-payment by the borrower/or guarantor; to

create a valid and effective security in favour of the Bank and to create charge on security.

Because, in the absence of a document capable of being legally enforceable, the Bank would find

it difficult to prove and establish before a Court of law that the amount was lent and the same has

not been repaid.

It is reiterated that documents must be properly executed by the constituents to whom the credit

facilities have been granted. Utmost care must be taken in execution of the documents to ensure

that they are free from any flaw or defect and legally perfect in all respects. Hence, taking correct

and proper documents is a „sine qua non‟ while disbursing loans and advances.

In the recent times, our Bank has welcomed young and energetic recruits in our fold who are still

in the ongoing process of gaining knowledge on the delineated system of documentation for

various credit facilities. This Handbook shall be a ready referencer and also act an auxiliary to the

knowledge gained from classroom sessions.

The Branch Manager or the officer attached to the advance department of any Branch / Office of

the Bank is required to select the right type of document according to the facts and circumstances

of each case and care and caution be exercised to ensure that proper and valid execution of loan

document is completed prior to disbursement of the credit facility. This publication has been

designed to familiarize the reader/Field Functionaries with various intricacies of documentation

relating to commercial finance and banking law.

Last but not the least, I would be failing in my duty if I do not appreciate the conscientious and

painstaking efforts of the Law Officers of Law Department at Head Office and the entire Faculty

and Staff Members of Central Staff College, Kolkata in compiling and consolidating this

Handbook on Documentation under the creditable leadership of Shri C Ramakrishna, Principal,

Deputy General Manager.

(D. P. Panda)

TABLE OF CONTENTS

Sl.

No Subject

Page

No

1 Loan Documentation 1

2 Selection of Appropriate Documents 1

3 Stamping of Documents 1

4 Execution of Documents 4

5 Scrutiny of Documents 6

6 Custody of Documents 7

7 Validity Period of Documents 7

8 Renewal of Documents 9

9 Miscellaneous Issues 10

10 Letter to be taken in case of vernacular signature / Thumb Impression Cases –

Annexure 1 11

11 Letter to be sent to guarantor informing him of outstanding balance in the

account guarantee by him – Annexure 2 12

12 Attestation Memo – Annexure 3 13

13 Insertion of Clause – Annexure 4 14

14 Standard Documents of the Bank – Annexure 5 15

15 Suggested List of Documents to be Taken – Annexure 6 22

16 Execution of Documents in Representative Capacity – Annexure 7 25

17 Letter to be obtained from the Borrower for Revival of Documents – Annexure 8 26

18 Letter to be obtained from the Guarantor for Revival of Documents – Annexure 9 27

19 Different methods of using Stamp Paper – Annexure 10 28

20 Declaration-Cum-Undertaking - Annexure 11 29

1

LOAN DOCUMENTATION The term “document” relates to a written record created for the purpose of evidence of a

financial transaction acceptable to a court of law and offers legal protection to the banker

for loans and advances granted by the bank.

The execution of document in a proper form and according to law is known as

“documentation”. Execution means the whole procedure of obtaining the signature of

borrower on the necessary documents after proper stamping and registration thereof,

wherever necessary, and other formalities connected herewith.

The following issues need to be addressed with relevance to documentation:

1) Selection of appropriate documents

2) Stamping of documents

3) Execution of documents

4) Scrutinizing of documents

5) Custody of documents

6) Validity period of documents

7) Renewal of documents

8) Miscellaneous issues

SELECTION OF APPROPRIATE DOCUMENTS

The nature and type of documents to be executed depend on the:

1) Constitution of the borrower.

2) Type of facility availed.

3) Type of security and charge to be created.

A list of standard documents available are given in annexure – 5. A suggested list of

documents to be taken having regard to the constitution, facility and security is listed in

annexure – 6. Documents to be taken in respect of Retail loans is given in the relevant

scheme guidelines.

STAMPING OF DOCUMENTS

The Indian Stamp Act, 1899 is applicable all over India except the State of Jammu &

Kashmir. The State Governments are permitted to pass their own acts and prescribe

different rates of stamp duty for instruments not covered under item 91 of the Union list.

In case of demand promissory notes, promissory notes and usance bills of exchange the

2

stamping is common throughout the country. In the case of all other instruments stamp

duty is payable as per the local act passed by the State Government concerned. If any

State Government has not passed any Stamp Act, the Indian Stamp Act will be

applicable in that State. The place of execution of the document is to be taken into

consideration for determining the applicability of the local act and consequentially stamp

duty on the instrument.

Stamping where Execution is Done in Different States

Where a document is to be executed by persons in different states, it must bear the

stamp duty as applicable in the state where the first person signs the document. In case

the stamp duty is more in the second state, then the difference is to be paid before it is

signed by the person in the second state. The payment of such difference should be

certified by the stamp officer in the second state within three month of its first receipt in

that state.

In the case of documents brought into the State of Jammu and Kashmir after it is

executed in another State full stamp duty as required under Jammu and Kashmir Stamp

Act will have to be paid. Similarly where a document has been executed in the State of

Jammu and Kashmir and relating to properties or things to be done in another State, the

documents when brought into that State will have to be stamped with the full stamp duty

applicable in that State.

Different Types of Stamping

Stamps can be grouped into three types: i) Judicial, ii) Non-judicial & iii) Postage

1) Judicial stamps are used as per provisions of Court fees Act and are utilized in

connection with filing suits, court fees and other judicial matters.

2) Non-judicial stamps are used as per provisions of the Indian Stamp Act for

commercial transactions.

3) Postal stamps are covered under the Indian Post Office Act for postal charges to

be paid.

Non-judicial stamps are of three kinds:

1) Adhesive Stamps.

2) Special Adhesive stamps.

3) Embossed or Impressed stamps.

Adhesive Stamps

Adhesive stamps are those which are affixed by using adhesives (i.e. gum). There are

many varieties of adhesive stamps such as revenue stamps, foreign bill stamps, share

transfer stamps, insurance stamps, notary stamps, attorney stamps, consular stamps,

3

etc. These stamps must be used for the relevant transactions as per stamp rules. For

example, Revenue Stamps are to be used for Demand Promissory Notes, Receipts &

Proxies etc. Foreign Bill Stamps are to be used for Usance Foreign Bills. Share Transfer

stamps are to be used for transfer of shares and so on.

Adhesive stamps should be cancelled by the person who affixes the stamp or by the

executants of the documents. The cancellation must be done at the time of or before

execution of the document. The cancellation must be done in such a manner that the

stamps cannot be used again. It can be done by signing over the stamp.. Crossing a

stamp by drawing a line & signing on the second adjacent stamp is not a cancellation of

the first stamp. The best way of cancelling the adhesive stamps is to get the signatures

over the stamps and such signatures should extend partly to the documents.

Special Adhesive Stamps

Special adhesive stamps are substitutes for Non-judicial stamp papers. These are

affixed on all agreements such as Letter of Pledge, Letter of Hypothecation, Letter of

Guarantee, Letter of Continuity etc. The Special adhesive stamps are to be affixed and

cancelled only by a proper officer notified under the Stamp Rules. The documents before

execution should be presented to Treasury Office / Stamp Authority to be stamped with

special adhesive stamps of requisite value. Special adhesive stamps should be

cancelled at the time of or before execution of the documents by “Proper Officer”.

“Proper Officer” means the Superintendent of Stamps, the Collector of Stamp Revenue

etc. Branch Managers of Nationalized Banks have also been designated as “Proper

Officers” in some of the States..

Embossed or Impressed Stamps

Embossed or Impressed Stamps are:

1) Hundi papers on which Hundis are to be drawn.

2) Non-judicial stamp papers on which stamps are already printed.

“Hundis” refer to financial instruments evolved on the Indian sub-continent and used in

trade and credit transactions. They are used as remittance instruments, credit

instruments, and for trade transactions. A hundi subject to certain guidelines has to be

written on paper on which a stamp of the proper value bearing the word 'Hundi' has been

engraved or embossed. These papers are called “Hundi Papers”.

Non-judicial stamp papers may be used in any of the following ways:

1) The matter of the document may be typed on the face of the paper (not on the

reverse) and on ordinary plain continuation sheets for completing the matter.

Continuation sheet where required should be on water marked paper.

4

2) Document itself may be pasted to non-judicial stamp paper of requisite value. In

such cases, signatures of executants should be taken in such a way so as to run

on the document and the paper by way of authentication.

3) Stamp papers of requisite value may be stapled to the document. The stamp

papers should bear the following notation under the signature of the borrower(s).

Attached to and forming part of the bank‟s form No. ___, (Letter of hypothecation

/ Agreement / Guarantee / Indemnity), executed on ------------------ by --------------

in favour of UCO Bank as security for an advance of Rs. --------------------------.”

4) Some of the Bank branches have now been authorized to receive stamp duty

and then frank the documents with the amount received. The necessary amount

has to be paid in cash to the concerned branch and the required denomination

will be franked on the document and returned to the applicant. The franking

should be done before the execution of the document.

The different ways of utilizing stamp papers are illustrated in Annexure - 10

Non-stamping or under-stamping

In case of under-stamping or non-stamping the same can be validated by paying the

shortfall. However it is necessary to get the document first adjudicated by the Collector

of Stamps and payment of penalty. The branches should ensure that all documents are

properly stamped and the stamping is done before or at the time of execution.

EXECUTION OF DOCUMENTS

Proper execution of document serves the following purposes:-

1. It helps to identify the borrower.

2. It helps to identify the security.

3. It helps in recording the transactions as written evidence.

4. It helps in producing evidence acceptable to a court of law.

5. It is a means of creating a charge over the security.

6. It serves as an acknowledgement of debt.

7. It gives the right to file a summary suit.

8. It incorporates the terms and conditions on which the loan / advance was

sanctioned or commitment was made.

In order to make the documents legally valid and enforceable in a court of law, it should

be executed properly by a person who has the legal capacity to execute it. In other

words the borrower should be competent enough to enter into a legal contract. As per

the provisions of the Indian Contract Act, only a person who is of sound mind and of the

age of majority and not expressly debarred by a court of law is competent to enter into a

contract. Hence, minors, lunatics and insolvents are not competent to execute a

document.

5

Date and place are important aspects of proper documentation. Any lacuna in these

areas can render the whole documentation invalid and put the entire loan amount at risk.

When any document is executed the date should be the date on which it is executed.

There should not be any over writing. The name of the place where the borrower or

guarantor has actually signed the documents should be clearly mentioned at the

appropriate place. This is necessary in the event of legal recourse for recovery, to

prevent the borrower taking the defense that he / she was not present in that place on

the particular date .The place of documentation also ultimately decides the jurisdiction of

the court. Any overwriting in date can give the benefit of doubt to the borrower or

guarantor in respect of expiry of limitation.

Normally documents should be executed in the branch premises. However, if the

borrowers are staying at different places, documents should be got signed either by

deputing a competent bank official or through the branch located at that place.

Documents so got executed at different places and different dates should bear the name

of the place where it actually got executed and the date on which the concerned person

actually signed the document. Though, such documents are being signed on different

dates, the same are said to have been completed on the date when the last of the

documents was signed. The mode of execution in representative capacity is given in

annexure – 7.

Illiterate Borrowers

In case of illiterate borrowers, the left hand thumb impression in case of men and right

hand thumb impression in the case of women should be got affixed to the document in

the presence of the bank‟s official and the wording “ Left / Right hand thumb impression

of Mr / Ms ………” should be written just below the thumb impression. Thumb

impression should not be attested on the documents.

Vernacular Signature

Documents of most of the banks are in bilingual format i.e. in Hindi and English. When a

document is signed in the language other than the language of the document, then it is

said to be signed in vernacular language.

In the case of illiterate borrowers and those borrowers who sign in vernacular the

contents should be explained to him / her in a language known to him / her by a

responsible person (third party) conversant with English language and known to the

bank and a certificate as per annexure–1 should be obtained from such person and kept

with the documents. In the absence of this declaration, it may lead to a situation where

the entire documents may be treated as invalid.

6

Witnessing a Document:

Some documents mainly deeds executed to cover the debt against mortgage,

guarantee, sale, assignment etc require witnessing under the law. It is implied that all the

documents where a space has been provided for the signature of the witness should be

got witnessed and should not be left blank. Any document which requires witnessing, if

not got witnessed, is an invalid document and carries no legal weight. Moreover, all the

documents executed by blind people and illiterates should be got witnessed to avoid any

complications. Care should be taken that independent witnessing by not less than two

persons is obtained along with their complete address.

General Precautions to be taken for Execution of Documents

1. Branch official or other persons should not initial or verify the signatures on the

document.

2. Documents should be filled up with the same ink and pen by the same person

and completed in one sitting.

3. Documents should be executed in the presence of Manager or any other

responsible officer.

4. If required to be sent out, the documents are to be carried by an officer and

should be executed in front of the officer.

5. All insertions / cancellations should be authenticated by the executants with their

full signature.

6. Documents should be properly stamped.

7. Documents should be dated prior to the date of advance or the date of advance

but not subsequent to the date of advance.

8. Where documents contain more than one sheet / page, every page should be

signed and in addition signature should be taken at the end of the schedule of

securities.

9. ROI mentioned in the document should be as per sanction stipulations.

SCRUTINY OF DOCUMENTS

The executed documents should be examined by the Officer in Charge of Advance /

Asst. Branch Head and Branch Head. An Attestation Memo should be attached with

each set of documents and should be signed by the Officers concerned in token of their

having verified the document before submitting to the Assistant Branch Head / Branch

Head for final scrutiny. A copy of the Attestation Memo is given in Annexure - 3. The

following points should be borne in mind while scrutinizing the documents:

1. All necessary documents have been obtained.

2. The documents are properly stamped.

3. Deletions, insertions and alterations are duly authenticated by full signatures.

4. The documents are properly filled and complete in all respects. .

7

5. In case of limited companies whether Board Resolution has been obtained

clearly stating who would sign the documents on behalf of the company and who

would witness the affixing of the common seal.

Documents will be considered defective in the following cases: –

1. Inappropriate documents

2. Incomplete set of documents

3. Documents not filled in / partially filled in / incorrectly filled in.

4. Documents with overwriting / erasures.

5. Documents with unauthenticated insertions / corrections / alterations.

6. Unstamped / under stamped / improperly stamped documents.

7. Documents not executed by the required number of parties.

8. Documents executed by persons not authorized to execute.

9. Documents executed by incompetent persons.

CUSTODY OF DOCUMENTS

Due care should be given to the custody of documents. The following points should be

kept in mind with regard to storage of documents:

1. All documents obtained should be entered in Security Ledger (S3), checked and

initialled by joint custodians.

2. Documents pertaining to each party should be placed in separate covers / folders

with brief particulars of contents and name of account marked on the cover.

3. All documents should be kept in fire proof safe in strong room under joint

custody.

VALIDITY PERIOD OF DOCUMENTS

The Limitation Act, 1963 is applicable throughout India except Jammu & Kashmir.

Limitation period is the time limit within which action can be taken in a court of law to

enforce any legal right. A suit filed after limitation period will not be accepted by the

court. The limitation period bars the remedy of filing a suit but it does not take away the

right of recovering the debt. There is no limitation period for recovering the debt by

exercising the right of lien, set-off or selling the goods pledged to bank which does not

involve filing of suits.

Period of Limitation

Cash Credit Accounts: Cash credit accounts can be generally be considered as a

mutual, open and current account. This is because there are a series of transactions in

the account. The limitation period in such cases is three years from the close of the year

8

in which the last entry is admitted or proved. The entry may be of debit or of credit but it

must be an actual advance and not an item of interest or bank charges. However, it

there are only withdrawals and no deposits, or deposits was only towards repayment of

interest on money advanced, the account will not be a “mutual” one. In other words

there must be frequent operations in the accounts by withdrawals and deposits for a

cash credit to qualify as a mutual, open and current account. Otherwise the period of

limitation will be three years from the date of each such advance. .

Overdraft Accounts: Limitation period is three years from the date of the overdraft. Each

payment by the customer would go to extend the limitation in regard to the particular

overdraft which it goes to repay and which would be the earliest item outstanding on the

debit side.

Demand Loan Accounts: Limitation period is three years from the date of the loan.

Term Loan Accounts: In a term loan the moneys lent are to be repaid by way of fixed

installments over a period of time. Limitation runs for each installment separately from

the date of installment. However the term loan agreement provides that if default is

made in payment of any one installment, all subsequent installments shall immediately

become due and payable. Hence we may take the period of limitation as three years

from the date of the first default as the bank elects to sue for the whole amount when

one or few installments are defaulted.

Bill of Exchange : The limitation period in the case of Bills of Exchange is as follows :

On a bill of exchange or promissory note payable at a fixed period after date - 3 years

from the date when the bill or note falls due.

On a bill of exchange payable at sight or after (but not at a fixed time) - 3 years from the

date when the bills is presented for sighting.

On a bill of exchange accepted payable at a particular place - 3 years from the date

when the bill is presented at that place, and

On a bill of exchange or promissory note payable at fixed time after sight or after

demand - 3 years from the time when the fixed time expires.

Mortgage: When an account is secured by a mortgage or charge upon an immovable

property, the period of limitation for recovery of money due in such an account is 12

years from the date when the money sued for becomes due. It may be noted that the

above period of limitation applies only to suits to recover money by sale of immovable

property charged and not from the borrower personally. Personal remedy becomes

barred on expiry of 3 years from the date when the money becomes due unless there is

an acknowledgement or payment and endorsement of such payment.

9

Extension of Period of Limitation

The period of limitation is extended if there is a payment on account of a debt, provided

the payment is made before the expiration of the prescribed period of limitation by the

person liable for the debt or by his agent duly authorized in this behalf. If there has been

such payment, a fresh period of limitation starts from the date when the payment was

made.

Where, before expiration of the prescribed period of limitation, an acknowledgement of

liability in respect of the debt has been made in writing signed by the party from whom

the debt is due or by any person duly authorized by him in this behalf, a fresh period of

limitation starts from the date when the acknowledgement is so signed. In view of this, at

every half-yearly / yearly closing of books, branch should obtain Debit Balance

confirmation (S14) duly signed by the borrower and the guarantor. Each borrower and

guarantor should sign the Debit Balance Confirmation across a revenue stamp in

representative capacity, if any. In case it is difficult to get Debit Balance Confirmation

signed by guarantor(s), a notice as per annexure – 2 should be sent to guarantor(s) by

Registered Post..

RENEWAL OF DOCUMENTS

Whenever there are any variances in credit facilities i.e. changes in nature of facilities

and limits (enhancement / reduction) or terms and conditions of finance, documents are

to be renewed by obtaining full set of documents and also A-12 (link document). When

there is no change in facilities / sanction terms and documents are more than two years

old “Acknowledgement of Debts / Securities” in Form A-12A is to be obtained for each

credit facility. Board resolution for renewing documents should be obtained. Board

resolution is not necessary for executing A-12A. Agreement relating to Term Loan (A-

109) does not require renewal but “Debit Balance Confirmation” (S-14) should be

obtained every half year.

Revival of time-barred documents

If the borrower / guarantor indicates an express promise to pay the time-barred debt as

per section 25(3) of the Indian Contract Act, the period of limitation is extended from that

date. Separate letters should be taken from borrower (annexure – 8) / guarantor

(annexure – 9) and such letter should be stamped as an agreement.

It is also advisable to get duly executed a fresh promissory note from the borrower and a

fresh letter of guarantee from the guarantor. Other prescribed security documents in the

account, if any, may also be got executed as may be necessary.

10

MISCELLANEOUS ISSUES

Sanction Advice

Whenever a loan is sanctioned a sanction advice should be issued to the borrower

containing detailed “terms of sanction”. This is an important part of the documentation

process. The borrower and guarantor should both accept the terms of sanction and it

should be kept with the documents.

Documentation in case where Limits are utilized at Different Branches

If a borrower wants to avail a limit at different branches of a bank then the

documentation is to be done at the branch where the proposal was submitted .The other

concerned branches are to be advised of sub-limits, terms and conditions for availing the

limits and other important instructions relating to the sanction.

Insertion of additional clause in documents

The clause regarding Bank‟s right of lien and / or set off on all securities and / or monies

held by the Bank on account of the borrowers is to be inserted in the relevant documents

in the place noted against each document in annexure – 4.

Declaration–cum–Undertaking to be obtained in the case of Car / Two Wheeler /

Commercial Vehicle Loans.

The car loan / two wheeler loan agreement the details of Engine Number / Chassis

Number will not be available at the time of execution of the documents. The details of

the vehicle will be available only after the borrower takes delivery of vehicle and obtains

registration number from the Regional Transport Authority. Hence it is advisable that a

Declaration-cum-Undertaking be obtained from borrower(s) on a later date i.e. as soon

as he takes delivery of the vehicle from the dealer and gets the registration number from

the Regional Transport Authority. The Declaration-cum-Undertaking attracts stamp duty

of Rs.100/-. The Declaration-cum-Undertaking format is given in Annexure - 11

11

Annexure – 1

Date : ……..

The Manager

UCO Bank

………………..

Dear Sir,

I hereby declare that signature / left / right hand thumb impression of ………….

………………… was placed on the following documents dated ………………… in my

presence.

1) D.P.Note for Rs. ………..

2) Letter of Waiver

3) …………………..

4) …………………

The contents of the above documents were read over and explained by me to the

executants in his / her language and he / she executed the same of his / her own free

will without any undue influence or coercion, after fully understanding the terms and

effect thereof by putting his / her thumb impression / signature on them.

Yours faithfully,

…………………..

12

Annexure - 2

Date ………………..

……………………

……………………

……………………

Dear Sir(s),

Re : Banking facilities extended to M/s …………………. under your guarantee.

We wish to give below for your information, the liabilities in our books as at the close of

business on ……………………. in the name of M/s ……………… in respect of banking

facilities extended to them by / under your guarantee:

Nature of Credit Facility Balance Due (Rs)

1

2

3

Yours faithfully,

Manager

13

Annexure – 3

ATTESTATION MEMO

UCO BANK

--------------------------- BRANCH

Name of the party

Nature of limit

Amount of limit

Details of documents

Signature of Officer in whose presence

documents were signed

Signature of Officer verifying signature of

executants

Documents examined by:

Officer-in-Charge (Advance Department) Manager / Assistant

Manager

Date :

14

Annexure - 4

INSERTION OF CLAUSE

The following clause should be inserted in the documents at the places indicated in the

table given below in case it is not already inserted.. The clause may be got

printed/typed/handwritten in a separate sheet of paper and pasted firmly in the existing

document format at the place as indicated in the Appendix in case the same has not

already been incorporated. The person(s) executing the document would be required to

put his/their signature(s) in the left hand margin of the newly inserted clause.

“Until payment is made to the Bank of all the amounts, whether past, present or future, actual or contingent, which may be payable by the Borrower or for which the Borrower may be or become liable hereunder or otherwise and whether as principal or surety, the Borrower agrees that the Bank shall have a lien and/or right of set off on all securities and/so on monies whatsoever held at any time by the Bank on account of or to the credit of the Borrower in or for any account or manner or purpose howsoever. The Bank shall be at liberty to discharge the said obligations or liabilities of the Borrower out of the said securities and/or monies, and in case of term deposits, whether the same have matured for payment or not, and may appropriate or realise them in the manner thought fit by it and without notice to the Borrower (and whether before or after filing suit or taking any legal proceedings). The Bank may set off an amount estimated by it in good faith to be the amount of the obligation.”

Control Number

of document

Particulars of document The place where the additional clause is to be

inserted

Number of clause to

be allotted to the additional

clause inserted

A-8 Agreement for pledge of goods to secure demand cash credit / loan.

After clause 15 15(a)

A-9 Hypothecation of goods to secure a demand cash credit


A-9A Deed of hypothecation of movable Plant and machinery to secure a term loan

After clause4(j) 2nd

paragraph

A-9B Hypothecation and Book Debts to secure demand cash credit


A-9D Extension of charge of hypothecation over current assets for non-fund based facilities

After clause 5 5(a)

A-9E Agreement for hypothecation of Machinery for deferred payment guarantee


A-20 Agreement for inland / foreign bills purchased and advances against bills in course of collection

After clause15(a) 15(b)

A-87 Hypothecation of goods & debts to secure a demand cash credit

After clause 12(a) 12(b)

A-103 Deed of Simple Mortgage After clause 7(a) 7(b)

FR-2 Irrevocable documentary credit After clause 7(a) 7(b)

Hypothecation of Plant & Machinery as additional security

After clause 8(g)

(The additional clause is to be inserted in the same clause 8(g) without allotting any new clause)

JAL-70 (Revised)

Agreement relating to tea hypothecation After clause 20 20(a)

15

Annexure - 5

STANDARD DOCUMENTS OF THE BANK

The Bank has a standard set of documents which are to be utilized depending on the

requirement in each case. The documents along with the Code No, description and

stamping requirement are given below for ready reference:

Sl No

Document No

Description Stamping

1 A-1 It is a “Demand Promissory Note” and contains an unconditional undertaking by the borrower to pay the amount he /she has borrowed from the Bank, as and when the Bank demands it, along with interest as agreed to. This document is taken where the borrower is an individual or company.

To be signed on

Revenue Stamp.

2 A-2 It is a “Demand Promissory Note” and contains an unconditional undertaking by the borrower to pay the amount he /she has borrowed from the Bank, as and when the Bank demands it, along with interest as agreed to. This document is taken where there are more than one borrower and also in the case of partnerships.

To be signed on

Revenue Stamp.

3 A-3 This document is what is called a “Letter of Continuity”. It is taken in case of cash credit / over draft advances. This is taken to avoid the rule in Clayton‟s case.

To be stamped as an agreement

4 A-4 This document is taken while granting advances against shares, National Savings Certificate, Govt. Promissory Notes, Debentures, etc.


5 A-5 Partnership Letter is taken in case of partnerships which do not have a written “Partnership Deed”. It is a declaration signed by the partners confirming the existence of the partnership and also specifies the joint and several character of liability of the partner as also their power to bind other partners.

Stamping not required

6 A-6 This document is to be executed by the borrower whenever the borrower authorizes another person to operate his / her cash credit / overdraft account for a temporary period of time. The form has provision for obtaining the specimen signature of the person so authorized.


7 A-7 “HUF letter” is taken when the bank grants loan and advances to a Hindu Undivided Family. This document records the name of the Karta and other adult Co-parceners. It also specifies their liability as also their power to bind all members. It serves the purpose of a resolution.


8 A-8 This document is an “Agreement of Pledge” and is taken while granting loan and advances against security of pledge of goods.


9 A-8A The document “Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility for


16

adult property as security” is taken when there is an enhancement in the existing limit/facility along with additional property pledged as security.

10 A-8B The document “Form of Supplemental Agreement to Pledge of Goods for Increase in Limit/Facility without Additional Property as Security” is taken when there is an enhancement in the existing limit/facility granted to the Borrower without additional property pledged as security.


11 A-9 The document is the “Deed of Hypothecation”. It is taken while granting loans and advances against security of hypothecation of goods.

To be stamped as an agreement. (If the State has prescribed ad valorem stamp duty for “hypothecation document” then the document would attract ad valorem stamp duty as prescribed.)

12 A-9A Deed of hypothecation of movable plant and machinery to secure a term loan


13 A-9B The document relates to Hypothecation of Book Debts to secure a Demand Cash-credit This document is taken when the Bank allows a demand cash credit against hypothecation of book- debts.

To be stamped as an agreement. (If the State has prescribed ad valorem stamp duty for “hypothecation document” then the document would attract ad valorem stamp duty as prescribed).

14 A-9D The “Agreement for extension of Charge by way of Hypothecation over Current Assets to secure Non-Fund Based Facilities” is obtained when accommodation by way of cash credit facility and other additional facilities are granted to the borrower and the borrower agrees that the first charge created by hypothecation will also extend over the additional facilities.


15 A-9E Agreement for hypothecation of machinery for deferred payment guarantee

To be stamped as an agreement. (If the State has prescribed ad valorem stamp duty for “hypothecation

17

document” then the document would attract ad valorem stamp duty as prescribed.)

16 A-12 Letter of Acknowledgement – cum – Balance (A-12) is obtained whenever a fresh set of documents are obtained from the borrower. A fresh set of documents is to be taken before the expiry of every three years or whenever there is change in sanction terms whichever is earlier. The document acts as an acknowledgement of debt and also as a link document as it links the old documents with the new ones. .

To be stamped as an acknowledgement of debt and signed on Revenue Stamp.

17 A-12A Acknowledgement of Debt / Securities (A-12A) is taken whenever documents are to be renewed on the same terms and conditions. Once this document is taken the entire set of documents need not be obtained and it serves the purpose of renewal of documents.

To be stamped as an acknowledgement of debt and signed on Revenue Stamp. Each borrower and guarantor should sign across a revenue stamp

18 A-20 The “Agreement of Bills Purchase” is taken for Bill Purchase facility / advance against bills in course of collection. It lays down the terms and conditions on which the Bills Purchased facility are granted to the party. In case of bills purchased, the bills are endorsed in favour of Bank and the Bank becomes a holder-in–due-course and has a right to sue the party concerned on the instrument itself. The Bank has recourse against the party for whom the bills have been purchased and normally in case of dishonour the party is asked to reimburse the amount and on failure to do so, his account is debited. If the full amount is not recovered by debiting the account an overdraft would be created and this will have to be recovered within a period of 3 years otherwise it will become time- barred. Even otherwise the suit on the instrument must be filed within a period of 3 years. In order to save limitation confirmation of balance is to be obtained. A-20 does not require renewal.


19 A-21 “Letter of Guarantee” is obtained from the guarantor whenever loans and advances are sanctioned on the guarantee of a third person. A-21 is obtained from the guarantor when the borrower is either a company or a firm.

To be stamped as an indemnity

20 A-21A “Letter of Guarantee” is obtained from the guarantor whenever loans and advances are sanctioned on the guarantee of a third person. A-21A is obtained from the guarantor when the borrower is an individual.


21 A-27 “Consumer Loan Agreement” is obtained in the case of consumer loan. The document is executed

To be stamped as a guarantee-cum-

18

by both the borrower as well as the guarantor.

agreement

22 A 36C “UCO Car / Two Wheeler Agreement” is obtained in the case of UCO car loans and UCO two wheeler loans.


23 A-36R “Agreement for Transport Loan” is obtained while granting Transport Loan. This document is executed by the borrower as well as the guarantor.

To be stamped as a guarantee-cum-agreement

24 A-38R Letter of Lien on Fixed Deposit Receipt is taken while granting advances against the security of Fixed Deposit Receipt. It gives the bank the right of appropriation by foreclosing the FDR

To be stamped as an agreement only in case of advance to a person other than the depositor. Otherwise it need not be stamped.

25 A-39 “Agreement for advances against Fixed Deposit Receipt not belonging to the Borrower” is taken from a borrower who borrows against the security of a Fixed Deposit Receipt belonging to another person.


26 A-40 “Power of Attorney relative to Supply Bills on Government” is an irrevocable Power of Attorney granted by the borrower in favour of the Bank empowering the Bank to sign, present and submit supply bills on behalf of the borrower to the Government Departments concerned and also to obtain payment thereof. It is obtained from borrowers to whom advances against government supply bills has been sanctioned.

To be stamped as a Power of Attorney.

27 A-47 “Letter of Waiver” is a document is obtained from the borrower whenever the advances are granted against Demand Promissory Notes (A-1 and A-2). As per section 64 of Negotiable Instruments Act, 1881, the Promissory Note must be presented for payment to the maker. If it is not presented to the borrower he can‟t be held liable for the amount. As it is very difficult for the Bank to present the DP Notes to the borrower for payment the “letter of waiver” is taken whereby the borrower waives presentation of the DP Note.

Stamping not required

28 A-49B “Agreement for Education Loan” is executed by the borrower and guarantor(s) in the case of Education loans.

To be stamped as agreement-cum-guarantee

29 A-58 “Agreement-cum-Declaration for loan against LIC Policy This document is taken while granting loan against the security of LIC Policy. No charge on security is created by this document and hence has to be assigned by the borrower in favour of the Bank.


30 A-88B “Counter Guarantee” is obtained from the borrower whenever Bank executes a guarantee


19

Bank Guarantee) to a third party at the request and for the sole benefit of the borrower. In case of borrower‟s default in fulfilling his obligation to the third party, guarantee may be invoked against the Bank. This document though called a counter-guarantee is more of a counter-indemnity. On the strength of this document, the Bank can recover from the borrower all losses, damages, costs, charges and expenses incurred/ sustained by the Bank in connection with the fulfillment of the terms of the guarantee executed by it.

31 A-100 Agreement with the borrower(s) on rescheduling / rephasing of term loan


32 A-101 Agreement with the borrower(s) on rescheduling / rephasing of term loan


33 A-103 Deed of Simple Mortgage is executed when the Bank obtains collateral security by way of simple mortgage of land and building while granting agricultural advances.

To be adequately stamped and registered with the sub-registrar of assurances.

34 A-103A Deed of Simple Mortgage (A-103A) is executed when the Bank obtains collateral security by way of simple mortgage of land and building while granting Cash Credit facility to farmers for cultivation of crops. These documents have got to be witnessed by at least two witnesses and registered with the Registrar of Assurance of the area where the property is situated.

To be stamped on ad valorem basis.

35 A-104 “Agreement of Hypothecation of Pump Set” is obtained from the borrower while granting loan for the purchase of a Pump Set.


36 A-105 “Hypothecation of Standing Crops” is obtained to create a charge of hypothecation on standing crops to secure agricultural advances e.g. Crop Loan, Pump Set Loan, Tractor Loan, Dug-well Loan, Land Development Loan, Other Agricultural Implements Loan etc.


37 A-107 Letter of Guarantee in case of Joint borrower


38 A-107A Letter of Guarantee in case of loan amount of Rs.5000/- or less

To be stamped as

an indemnity

39 A-108 “Agreement of Hypothecation of Tractor” is obtained from the borrower while granting loan for the purchase of a Tractor.


40 A-109 “Agreement relating to Term Loan” is taken from the borrower while granting a Term Loan. A copy of the borrower‟s proposal should be enclosed to this document. It should be stamped as an agreement.


20

41 S-14 “Acknowledgment of Debt & Security” (S-14) is to be obtained every half–year showing the balance outstanding in the account and details of securities. This is a document of Balance-cum-Security Confirmation. It also serves as an acknowledgement of debt. This document is to be signed by both the borrower and the guarantor. Every acknowledgement of debt (in writing) obtained before the expiration of the period of limitation ensures that a fresh period of limitation starts from the time when the acknowledgement is signed.

To be stamped as an acknowledgement of debt and signed on Revenue Stamp.

42 FR-2 “Application for Letter of Credit” is obtained from the borrower each and every time while opening Letter of Credit on his behalf. It should be stamped as an agreement. This document is taken for foreign as well as inland Letter of Credit. Only one “Letter of Credit” can be opened on the strength of one FR-2 form.

To be stamped as an agreement.

43 FR-126 “Packing Credit Form” is obtained in case the borrower has been sanctioned “Packing Credit” facility.


44 Permanent / Omnibus Counter Guarantee is obtained whenever a Bank Guarantee limit is sanctioned against which several Bank Guarantees within the overall limit needs to be issued.


45 “Supplemental Deed of Hypothecation of Goods for increase in limit / facility without additional property as security” is obtained whenever there is an enhancement in the limits but there is no change in the property offered for hypothecation. This document is obtained in the case of advance to companies.


46 “Supplemental Deed of Hypothecation of Goods for additional security for an increase in limit / facility” is obtained whenever there is an enhancement in the limits along with hypothecation of additional property. This document is obtained in the case of advance to companies.


47 “Supplemental Deed of Hypothecation of Goods for additional security for an existing limit / facility” is obtained whenever whenever additional security is taken for an existing limit. This document is obtained in the case of advance to companies.


48 Hypothecation of Plant and Machinery as additional security

To be stamped as an agreement as well as a Power of Attorney

49 “Composite Deed of Hypothecation” is a document to create charge in Bank‟s favour by way of

To be stamped as an Agreement

21

hypothecation over various movable assets of the borrower

and Power of Attorney

50 PSLD-1 “Priority Sector Loan Document – 1” is taken in the case of KCC loans


51 PSLD-1A Documents for all Priority Sector loans including General Credit Card upto Rs.25000/-


22

Annexure – 6

SUGGESTED LIST OF DOCUMENTS TO BE TAKEN

List of documents to be taken on the basis of the borrowers constitution, facility and security is

given below. The list is only indicative and certain variations in the selection of documents may be

required in some cases depending on the terms of sanction. The following points have to be kept

in mind while carrying out documentation.

1) A copy of the sanction advice wherein the borrower(s) and guarantor(s) have accepted the sanction

terms should be kept with the documents.

2) In the case of Partnerships if Partnership Deed is not available, Letter of Partnership (A5) is to be

taken.

3) In the case of Joint Stock Company copy of Board Resolution authorizing borrowing, execution of

documents and operation of the account should be obtained.

4) In the case of Public Limited Company if the borrowing exceeds Paid-up-Capital and Free

Reserves, copy of special resolution permitting borrowing in excess of Paid-up-Capital and Free

Reserves should be obtained.

5) In case of change in credit facilities or terms of sanction full set of documents along with A12 and

S14 should be obtained.

6) In case there is no change in limits or sanction terms A12A is to be obtained for each credit facility

before expiry of 3 years. S-14 should also be obtained.

7) Some documents require certain annexures to be attached to the document. In such cases care

should be taken to attach the relevant annexure. For example Term Loan document (A109)

requires a copy of the borrower‟s proposal to be attached. Agreement for Education Loan (A49B)

requires a copy of the borrower‟s application to be attached to the document. Composite deed of

hypothecation requires a copy of the accepted sanction letter to be attached to it.

Type of Facility Individual More than One

Individual

Sole Proprietary

firm

Partnership Hindu Undivided

Family

Joint Stock Company

Clean Demand Loan A1,A47 A2, A47 A1,A47 A2,A47 A2,A47,A7 A1, A47

Clean Cash Credit / Overdraft

A1, A47, A3 A2, A47, A3 A1, A47, A3 A2, A47, A3, A2, A47, A3,A7

A1, A47, A3

Demand Loan against FDR

A1, A47, A38(R)

A2, A47, A38(R)

A1, A47, A38(R)

A2, A47, A38(R)

A2, A47, A38(R)A7

A1, A47, A38(R)

Cash Credit / Overdraft against FDR

A1, A47, A3, A38(R)

A2, A47, A3, A38(R)

A1, A47, A3, A38(R)

A2, A47, A3, A38(R)

A2, A47, A3, A38(R),A7

A1, A47, A3, A38(R)

1. FDR duly discharged by depositor(s) across revenue stamp should be obtained. 2. In case of advance against third party FDR: Letter on Form A39 signed by borrower should be obtained. Letter on Form A 38A should be sent to the depositor. Form A38(R) should be signed by the depositor(s).

Demand loan against Recurring Deposit

A1, A47,D48 A2,A47,D48 A1, A47,D48 A2,A47,D48 A2,A47,A7, D48

A1, A47,D48

1.Recurring deposit Pass Book duly discharged by depositor(s) across revenue stamp should be obtained.

Demand loan against LIC Policy

A1, A47, A58

A2, A47, A58

CC / OD against LIC Policy

A1, A47, A3, A58 LIC Policy duly assigned

A2, A47, A3, A58 LIC Policy duly assigned

1.Last Premium Receipt or a letter from LIC stating that no premium is outstanding should be obtained. 2. Life Policy with endorsement of assignment should be obtained.

23

3. Letter addressed to LIC of India by assignor(s) regarding assignment should be obtained. 4. Assignment should be got registered with LIC of India and Life Policy and acknowledgement of notice of assignment should be obtained from LIC of India.

Demand loan against NSC

A1, A47, A4 A2, A47,A4 A1, A47, A4 A2, A47, A4 A2, A47, A7,A4

A1, A47, A4

CC / OD against NSC

A1, A47, A3, A4

A2, A47, A3, A4

A1, A47, A3, A4

A2, A47, A3, A4

A2, A47, A3,A7,A4

A1, A47, A3, A4

1.NSC along with necessary form should be obtained and endorsement for transfer from Post Office should be obtained on it.

Demand loan against Govt. Securities – Promissory Notes

A1,A47, A4 A2,A47, A4 A1,A47, A4 A2,A47, A4 A2,A47, A7,A4

A1,A47, A4

CC against Govt. Securities – Promissory Notes

A1, A47, A3, A4

A2, A47, A3, A4

A1, A47, A3, A4

A2, A47, A3, A4

A2, A47, A3,A7,A4

A1, A47, A3, A4

1. The Government Promissory Note duly endorsed in favour of the Bank by the borrower should be obtained.

Demand loan against Pledge of Shares / Debentures

A1,A47,A4, S16

A2,A47,A4, S16

A1,A47,A4, S16

A2,A47,A4, S16

A2,A47,A7,A4S16

A1,A47,A4, S16

CC / OD against Pledge of Shares / Debentures

A1,A47,A3, A4,S16

A2,A47,A3, A4,S16

A1,A47,A3, A4,S16

A2,A47,A3,A4 S16

A2,A47,A3,A7A4,S16

A1,A47,A3, A4,S16

1. Shares to be in Demat format 2. A-4 and S-16 should be modified by adding the text given below: “Wherever the shares / securities are held in dematerialized form with depository, I undertake to comply with the provisions contained in the Depositories Act, 1996, and the Rules, Regulations and bye-laws framed thereunder from time to time to give effect to the aforesaid transactions of pledge / hypothecation, transfer and sale of shares / securities and also to execute such further or other deeds or documents or instruments as may he called upon by you to do so. “

Demand loan against Pledge of Goods and Commodities

A1,A47,A8 A2,A47,A8 A1,A47,A8 A2,A47,A8 A2,A47,A7,A8 A1,A47,A8

CC / OD against Pledge of Goods and Commodities

A1,A47,A3, A8

A2,A47,A3, A8

A1,A47,A3, A8

A2,A47,A3,A8 A2,A47,A3,A7A8

A1,A47,A3,A8

Demand loan against Hypothecation of Goods and Commodities


CC / OD against Hypothecation of Goods and Commodities

A1,A47,A3, A9

A2,A47,A3, A9

A1,A47,A3, A9

A2,A47,A3, A9

A2,A47,A3,A7A9

A1,A47,A3,A9

Demand loan against Warehouse Receipts


CC/OD against Warehouse Receipts

A1,A47,A3, A8

A2,A47,A3, A8

A1,A47,A3, A8

A2,A47,A3,A8 A2,A47,A3, A7, A8

A1,A47,A3,A8

1. Warehouse Receipt duly endorsed in favour of Bank accompanied with a Letter (A-92) signed by the borrower should be obtained. 2. A letter (A-93) addressed to Warehousing Corporation by the borrower notifying them about pledge of Warehourse Receipt and Bank‟s lien on stocks to be obtained. 3. A notice (A-94) in duplicate should be sent to Warehousing Corporation about Bank‟s lien on stock and acknowledgement on duplicate to be obtained. 4. Storage Order (A-52) should be obtained from the borrower for the stocks represented by the Warehouse Receipt.

Demand loan against Hypothecation of Book Debts

A1,A47,A9B A2,A47,A9B A1,A47, A9B A2,A47,A9B A2,A47,A7, A9B

A1,A47,A9

CC/OD against Hypothecation of Book Debts

A1,A47,A3, A9B

A2,A47,A3, A9B

A1,A47,A3, A9B

A2,A47,A3, A9B

A2,A47,A3, A7,A9B

A1,A47,A3, A9B

24

Term Loan against Hypothecation of Movable Plant and Machinery

A109, A9A A109, A9A A109, A9A A109, A9A A109, A7,A9A A109, A9A

Documentary Bills Purchased

A20 A20 A20 A20 A20 A20

Bills in Course of Collection

A1, A47, A3, A20

A2, A47, A3, A20

A1, A47, A3, A20

A2, A47, A3, A20

A2, A47, A3, A20

A1, A47, A3, A20

Bank Guarantee (One Time)

A88B A88B A88B A88B A88B A88B

Bank Guarantee (Limit)

Omnibus Counter Guarantee






KCC A1,A47.A3, A105,A21A / A107 / A107A

A1,A47.A3, A105,A21A / A107 / A107A

Rescheduling / Rephasing of loans

A100, A101 A100, A101 A100, A101 A100, A101 A100, A101 A100, A101

25

Annexure - 7

EXECUTION OF DOCUMENTS IN REPRESENTATIVE CAPACITY

Sole Proprietorship For Jayadeep & Co Sanjoy Jayadeep

Sole Proprietor

Sole Proprietorship where a limited company is the sole-proprietor For Manirathnam & Sons For Karthik Electricals Ltd.

Karthikumar Vandana

Director Director

Sole Proprietor

Sole Proprietorship where a partnership firm is the sole proprietor For M/s Jayaraman & Sons For Ashok Bros

Ashokan

Sudip Banarjee

Partners

Sole Proprietor

Hindu Undivided Family (HUF) For Vikram Shah HUF Nikhil Shah

Karta A-7 should be executed in individual capacity.

Partnership For Agarwal & Brothers Mohanlal Agarwal

Sohan Agarwal

Partners

Mohanlal Agarwal*

Sohan Agarwal*

The DPN alone should be signed by the partners both in individual as well as representative capacity. In all other documents it should be executed in representative capacity only.

Partnership where one of the partners is a HUF For Chandramoul & Sons For Rajan & Bros

Rangarajan

Karta Ashokan Chandran

Partner Partner Partner

Partnership where one of the partners is a Limited Company For Prakasham & Sons For Ramamurthy &Company Ltd.

Mani Rajan

Director Director

Jayaraman

Mahesh Kumar

Partners

Limited Company For Bombay Metal Products Limited Vikram Shah Ashok Deshmukh

Director Director The common seal should be affixed in the loan documents in the presence of the officer / director as stated in the Board Resolution.

Trust For Hiralal Shah Trust Satyam Shah Dirubhai Shah

Trustee Trustee Authorised signatories as per Trust Deed should execute the document

Society / Association For Cosmos Employees Society Pendarkar Shivarae

President Treasurer Authorised signatories as per bye laws should execute the document

26

Annexure - 8

LETTER TO BE OBTAINED FROM THE BORROWER FOR REVIVAL OF

DOCUMENTS

DATE : ____________________

The Manager

UCO Bank

.........................

.........................

Dear Sir,

Sub : My .........................................................Account with you

I acknowledge and confirm that a sum of Rs. .............. is due and owing from me to you

inclusive of interest upto ..................... (date) in my above account with you. I promise to

pay to you the said sum with further interest to accrue thereon. I have executed / shall

execute* in your favour and delivered / shall deliver* to you a fresh pronote also for the

said amount evidencing my above liability and undertaking to pay.

Yours faithfully,

*Delete whichever is inapplicable.

27

Annexure - 9

LETTER TO BE OBTAINED FROM THE GUARANTOR FOR REVIVAL OF

DOCUMENTS

DATE : ____________________

The Manager

UCO Bank

.........................

.........................

Dear Sir,

With reference to the loan granted by you to ........................................ which was

guaranteed by me, I confirm that a sum of Rs......................... is due and owing to you as

on................................ (date) inclusive of interest upto ............. (date) under my

guarantee. I regret I could not pay to you the said amount in discharge of my

guaranteed obligation. I promise to pay to you the said amount with further interest to

accrue thereon at the agreed rate. I have executed / shall execute* in your favour and

deliver / shall deliver to you* a fresh letter of guarantee also in token of my continuing

liability and undertaking.

Yours faithfully,

*Delete whichever is inapplicable.


29

Annexure - 11

DECLARATION-CUM-UNDERTAKING

To

UCO Bank,

____________________ Branch

__________________________

Sub : UCO Car / Two Wheeler / Transport Operator Loan

In consideration of the Bank having granted / sanctioned a car / two wheeler / transport loan at my / our request to the tune of Rs._____________/- (Rupees _______ _____ _____ _______ __ _____________________________ ____________________________ ______________ ) for the purpose of purchase of a car / two wheeler / commercial vehicle in my / our name(s), I / we ______________ ___ _________________________ S/o / W/o / D/o ___________________ _____ ______ _ _ ___________________ residing at _____________________________ ______ _ _ _ _ _ ________ ____________________________________________ , do hereby confirm having availed such credit facility and executed the following documents in favour of the Bank on _________ (a)

(b)

In compliance with my / our obligation and / or undertaking by virtue of the aforesaid agreements, I / we do hereby furnish the details of the Vehicle i.e. Registration Number, chasis Number, Engine Number etc. to the Bank hereunder. i. Car / Two Wheeler / Transport vehicle ----- Make, Model : ii. Engine No : III Chassis No : iv. Registration No : v. Insurance Policy No ................................................ with Bank Clause. I/We further declare and confirm that the aforementioned vehicle stands hypothecated / charged by way of First Charge in favour of the bank as a secured asset and in case of any default on my / our part in repayment of the said loan, the bank shall have the right to repossess the said car / two wheeler / transport vehicle in accordance with law and I / we shall be liable for all such expenses relating to such repossession. I / We also declare that this Declaration cum Undertaking shall be treated as part of the documents already executed by me / us, the details whereof have been mentioned in the preceding paragraph. Dated this ______ day of ______ , 20___. Place : Signature of the Borrower(s)