MANUAL ON DOCUMENTATION

Indian Overseas BankCentral office

763 Anna Salai, Chennai – 600 002

R.V. SHASTRI Indian Overseas BankChairman & Managing Director Central Office

Chennai – 600 002

Date : 18.01.2000

FOREWORD

Lending is an important function of banking. Documentation is a vital

aspect governing the advances portfolio. Proper documentation is sine qua non

for effective recovery of the loans advanced and it needs to be ensured that

documentation is perfect. Understanding this need, the Bank is bringing out

this updated manual on Documentation. A thorough reading of this Manual and

frequent reference will enhance the quality of documentation, thus enabling

the Bank to have a set of enforceable documents on a continuous basis.

I appreciate the efforts put in by Shri. V. Sreenivasan, Faculty member,

Staff College, Chennai and Shri. K. Elangovan, former Deputy Chief Officer,

Legal Services Department, in bringing out this updated Manual. It is earnestly

hoped that branches would make effective use of this publication to ensure

documentation is perfect in all respects.

R.NATARAJAN Indian Overseas BankGeneral Manager Central Office

Chennai – 600 002

Date : 18.01.2000

PFEFACE

Manual on documentation was first brought out in the year 1983 and the

second edition in 1992. The banking scenario witnessed a sea of change during

the last decade; as a result, a number of new forms/documents were

introduced, besides amending many. In the process, a few documents became

redundant as well . Hence, this third edition which is in your hands.

2. In the previous editions, specimen of documents with distinctive

number alone were given. But in this edition, specimen documents even without

distinctive numbers have been incorporated. By this process, the present

edition is made comprehensive and complete in itself without the need for

cross- references to the previous editions.

3. Considerable efforts have gone into updating this manual. Branches

should make use of this manual to the fullest extent and ensure that proper

documents are taken for each advance. While getting documents executed,

Branches should be guided by Bank’s Book of instruction and other circulars

issued from time to time. Any suggestion regarding this publication is welcome

and may be addressed to Management Services Department, Central Office.

Contents

Page No.

Part I Introduction to Documentation 3-15

Part II Description of documents with distinctive numbers 19-20

Part III Types of advance and documents to be taken 23-31

Part IV General guidelines on each type of advance 35-61

Part V Specimen of formats:

Sec. (A) Documents with distinctive number 67-244

Sec. (B) Documents without distinctive numbers 247-395

Part VI Important circulars on documentation 399-460

PART –I

INTRODUCTION TO DOUCMENTATION

General

1. Documentation is an essential part of

Bank lending. It establishes a legal

relationship between the lending

banker and borrower as the terms

and conditions are reduced in

writing. Hence correct

documentation is essential to ensure

the safety of an advance. The

documents should be rightly

stamped, properly executed and

should effectively create the

necessary charge on the security.

The documents should mention the

correct name of the parties, contain

proper recitals, give a detailed

description of the security, if any,

to be charged, the consideration,

rate of interest, terms of payment

and other important conditions

agreed to. Any deviation from the

standard form should not be

permitted without obtaining the

requisite permission from the

Controlling Administrative Office.

The legal formalities as to

registration of charge with the

Registrar if Assurances and/or the

Registrar of Companies should be

compiled with, within time wherever

necessary. All sanction letters are to

be advised to borrowers in form

F568 in duplicate. One copy is to

be retained along with documents

after obtaining the signature of the

borrower as a token of acceptance

of terms and conditions.

2. Stamping

Section 17 of the Indian Stamp

Act, states that all documents

chargeable with duty and

executed by any person in India

shall be properly and duly

stamped before or at the time of

execution. An unstamped or

insufficiently stamped documents

will not be admitted in evidence

or form the basis of a suit.

Permission however can be

accorded in certain cases by the

court or an appropriate authority

to admit an unstamped or

insufficiently stamped document

in evidence, on payment of

certain penalties in addition to

the duty with which the

document is chargeable or in the

case of an Instrument

insufficiently stamped the amount

required to make up the

required stamp duty. It must

however, be remembered that

unstamped or insufficiently

stamped promissory note, or bill

of exchange is an invalid

document ab initio and cannot

be admitted in evidence even on

payment of duty and or any

penalty.

In some states like Punjab, an

unstamped or insufficiently

stamped acknowledgment will be

invalid and cannot be admitted in

evidence even on payment of

penalty. Similarly in the States of

Madhya Pradesh and Uttar

Pradesh, the defect in stamp

duty on a receipt cannot be cured

by paying penalty.

Stamps

3. Stamps are of different kinds:

Impressed Stamps (Stamp Paper)

a. Judicial Stamp Paper (Used

for filing suits in civil courts)

b. Non-Judicial Stamp Paper

(Used for all commercial

documents, such as

agreement, sale deed,

partition deed, gift deed,

Settlement deed, Power of

Attorney, Mortgage deed,

Lease deed etc).

c. Hundi Paper

Adhesive Stamps

a. Special adhesive stamp used in

the place of non-judicial stamp

paper

b. Revenue Stamp

c. Foreign Bill Stamp

d. Share Transfer Stamp

e. Insurance Stamp.

f. Notary Stamp

g. Consular Stamp

h. Brokers’ Note Stamp

i. Court Fee Label Stamp

4. Adhesive revenue stamps are affixed on

promissory notes, receipts and

acknowledgement of debts (Revival

letters. Balance confirmation letters).

Revenue stamps are cancelled by the

borrowers by singing across or otherwise.

The best way of canceling a revenue

stamp is by ensuring that the executant

signs over all the stamps, in such a

manner, that the signature extends even

beyond the stamps.

5.Special Adhesive Stamps, when affixed to

documents are cancelled by the treasury

by punching dates across them. Special

Adhesive Stamps are affixed on

Agreements. Bill of Lading, Insurance,

Bills of Exchange, Shares, etc.

Sometimes, the treasury impresses or

engrosses the stamp value on the

documents when Special Adhesive

Stamps are not available. If special

Adhesuve Stamps or impressed

/engrossed documents are not readily

available documents may be executed

on non-judicial stamp paper for the

requisite value of stamps. The stamp duty

must be in accordance with the provision

of the stamp law in force in the respective

states.

As per the Stamp rules, a document should

begin on non-judicial Stamp Paper and if it

is affixation of special adhesive stamp, the

Stamp should appear on the face of the

document. Therefore the non judicial

Stamp Paper should be made as the first

page and the beginning portion of the

standard format should be written or typed

on it and such portion of the standard format

should be struck of under authentication of

the executants signature. The non-judicial

Stamp Paper should form part of the

standard format and should be stapled or

stitched so that it appears as the first page

of the document. The executant should sign

each page of the document including the

non- judicial stamp paper.

Procedure to be followed only in places

where Branch Managers are empowered

to affix and cancel stamps:

6. In certain states, the Managers of the

nationalised banks have been declared

as “Proper Officers” for the purpose of

Rule 10 of the Stamp Act, 1889.

Accordingly they are empowered to affix

and impress special adhesive stamps.

The managers are required to obtain the

required numbers of special Adhesive

Stamps under various denomination by

remitting the value in cash in the Treasury.

The stamp for the required amount can be

affixed by the Branch Manager on the

documents as and when necessary. The

following procedure should be followed.

a. Required Special Adhesive Stamps

shall be affixed by the Branch Manager

on the printed forms in the space

provided for, if no space is provided, the

stamps may be affixed on the right side

top of the first page of the form.

b. Such Special Adhesive Stamps shall

be affixed on the printed forms as stated

above, before or at the time of

execution of the documents by the

borrower. Any stamps affixed after

execution of the documents will amount

to contravention of law.

c. Branch seal, should be put on the

Adhesive Stamps so as to cancel the

stamps. If more than one stamp is

affixed, each stamp should bear the

Bank seal.

d. Branch Manager should put his signature

across the stamp and put the date under

the signature. This must be done

immediately after affixing the stamp on

the form. On no account the date put by

the Manager should be later than the

date of execution of the document by the

borrower.

e. The stamp may be affixed and cancelled

with date by Branch Manager in

minimum required forms or as and when

the form is required to be used.

Branches should not affix the stamps on

the forms in bulk.

f. Branch Managers alone are empowered

to affix the stamps and put the seal on

them with their signature.

g. In all other places where the managers

are not empowered to cancel the

stamping it must be cancelled by an

authority so designated by the Act (viz.

a treasury). Refer para 5 above for

details.

Bill of exchange stamps

7. Usance Bills drawn and payable in India.

Usance Bills drawn in India and payable

outside India, and Usance Bills drawn

outside India and payable in India, are

liable for stamp duty. Usance Bills drawn

in India and payable in India or outside

should be drawn on hundi paper or

Special Adhesive Stamp should be used

and cancelled by Treasury before

execution. On usance Bills drawn outside

India and payable in India. Foreign Bill

Stamps’ are to be affixed before

negotiation or presentation.

Execution

8. All documents must be executed in the

presence of the Manager or Deputy

Manager or any official. The parties

should sign in full according to their

specimen signatures. If a document

consists of a number of pages, all of them

should be signed by the borrower. As far

as possible, there should be no correction

or over-writing or interlineations in the

document. Correction or over-writing or

interlineations, if any, must be

initialled/signed by the executants. All

blank spaces in the document should be

filled with the relevant particulars and

authenticated by the executants in

addition to signing at the end of each

page. The execution of documents and

disbursement of the advance should be

on the same date preferably. However

documents should not be dated later

than the date of advance.

Documents execution register

9. The date, names of executants, amount

/ limit of the advance and the nature of

documents executed should be clearly

entered in the register. The entries in the

register should be signed by the

Manager/Deputy Manager after verifying

that the executed documents are in order.

No entry need be made in the register in

regard to documents for advances against

fixed and other deposits, jewel loans,

personal and small loans and agricultural

advances

Documentation cum Due Date Register and

Diary for Renewal of documents are to be

maintained by the branches to ensure

timely renewal of documents. Refer GM’s

Circular No.21 of 1983 dated 3-12-83 given

in page No.401. Branches should preserve

the documents borrower wise and limit wise.

Loan documents relating to a particular limit,

say, CC Limit or Term Loan limit should be

kept under a docket giving the following

details on the docket sheet.

1. Name of the borrower

2. Nature of credit facility

3. Amount

4. Date of document.

5. Form number of

documents

6. Due date for taking

confirmation of balance/

revival letter.

7. Date of current sanction

letter.

Executants

10. All persons competent to

contract, can execute documents.

However a minor, lunatic or an

undischarged insolvent cannot execute

any document.

Execution of documents by illiterate

persons

11. a. In the case of illiterate

persons left hand thumb impression of

the borrowers should be obtained.

Thumb impression of a person once

affixed to a document cannot be

disputed as not belonging to him and

therefore, it can be treated as a

proper mode of execution of by

illiterate person. To vouch-sale about

the person affixing the thumb

impression, it can be certified as

belonging to a particular individual.

Such a certificate cannot be treated

as an attestation (witnessing) to the

contents of the documents. In such

cases a certificate has to be added as

under: “Contents of the above were

read over and explained to the

executant(s) in vernacular language

and he/she understood the same

before affixing his/her impression.”

Left Hand thumb impression of

Shri/Smt …………….. taken by

……………. (in whose presence the

left hand thumb impression was

taken). Before the certificate the

concerned officer should sign and

indicate his designation.

Execution of documents by blind

persons

11.b.1 Loans can be granted to blind

persons individually. In that case, the

loan document should be read over

and explained to the blind borrower

before he executes the same and a

letter to that effect may be taken

from a witness as per Annexure

11. Further the borrower may be

asked to open a SB Account. The

Loan amount may be released

through that account.

2. When the blind person desire sanction

of a loan jointly with another person whom

he considers reliable, the loan may be

granted to them jointly. In such an event

while obtaining the document the

contents of the document as well as

terms and conditions of the sanction

should be read and explained to the

borrower in the presence of a witness as

detailed above.

3. In case of advances made to a blind

person jointly with another person,

alternatively the other borrower may be

authorised by the blind person to execute

the loan documents, sign the revival

letter and / or confirmation of balance,

create mortgage, charge etc. by

executing a special power of attorney

(attested by notary public or First Class

Magistrate) and the loan documents

could be executed by the other borrower

agent. Before obtaining the document

from the agent the contents of the Power

of Attorney should be read over and

explained to the blind person in the

presence of a witness and only when he

confirms the execution of such a Power

of Attorney, the documents should be

obtained. The fact of such confirmation

should be recorded under the signature of

the witness as detailed above.

4. The witness may be another customer or

a person known to the bank but should not

be related to the blind person. Staff

members should not be a witness.

Attestation (Witnessing)

12. Some documents are required to

be compulsorily attested while

others are not. Mortgage deed,

Gift deed, Sale deed of

immovable property or Will

require to be attested atleast by

two witnesses. Other documents

should not be attested unless

provision has been made in the

document for such attestation.

Renewal

13. In India under the Limitation Act,

Demand Promissory Note cannot

be used upon after three years

from the date of their execution.

The documents have, therefore,

to be renewed before expiry of 3

years. Branch should, therefore

diarise for renewal of the

pronotes 9 months before they

become time barred.

Comprehensive

14. Comprehensive Renewal letter in F 301

(Revised) must be obtained from the

borrower within three years from the date

of execution of the loan documents or

within three years from the date of the last

revival letter. Revival letter (F.301) meant

for the borrowers should be obtained from

them for all types of borrowal accounts

after 27 months if the date of loan

documents/last Revival letter, but before

expiry of 3 years from the date of loan

documents/last revival letter. It can be

taken now for all borrowal accounts

(including borrowal accounts where DPN

is not taken) since has been revised to

revive loan agreement and DPN.

Comprehensive Revival letter (F.301B)

meant for guarantors should be obtained

from guarantors for all type of borrowal

accounts after 27 months of date of

guarantee document/last Revival Letter,

but before 3 years from such date. (Even

though Madras High Court had held that

borrower’s acknowledgement will not

extend the limitation as against the

guarantor, the Supreme Court had held

very clearly in Margaret Lalitha Samuel Vs

Indo Commercial Bank case that such

borrower acknowledgement shall extend

the limitation against the guarantor also)

Confirmation of balance should be

obtained each year from the borrowers for

all cash credit accounts and overdraft

except loan accounts and it should be

obtained each year from the guarantors

for all borrowal accounts.

Limitation for filing a suit against the

borrower and guarantor will get extended for

further period of three years by their

confirmation of balance, Revival Letter and

part payment under their signature.

Whenever revival letters are taken, details

should be entered in the Documents

Execution Register immediately below the

documents listed, taking care to mention the

name of executants and the date.

Special precautions

Advances to Limited Companies

15.1.The Branch Manager should verify the

Memorandum and Articles of

Association of the borrower company

to ensure that it authorises the

company (a) to engage itself in the

activities for which the loan/advances

is considered by the bank and (b) to

borrow money against the security of

its assets. The Articles of Association

should have a clause empowering the

Board of Directors of the borrower

company to borrow money by creating

mortgage/charges on the whole or part

of the undertaking. The Branch

Manager should ensure that the

provisions of Section 293 (i) (a) & (b)

of the Companies Act, 1956 are

compiled with, wherever necessary.

15.2 Section 293 (i) (a) & (b) of the Indian

Companies Act 1956 (Restrictions on

powers of Board) run as under:

1. The Board of Directors of a public

company or of a private company which

is a subsidiary of a public company shall

not except with the consent of such

public company or subsidiary general

meeting.

a. Sell, lease or otherwise dispose of the

whole, or substantially the whole, of the

undertaking of the company, or where

the company owns more than one

undertaking, of the whole, or

substantially the whole of any such

undertaking.

b. Borrow moneys after the commencement

of this Act, where the moneys to be

borrowed, together with the moneys

already borrowed by the Company

(apart from temporary loans obtained

from the Company’s bankers in the

ordinary course of business) will exceed

the aggregate the paid-up capital of the

Company and its free reserves, that is to

say reserves not set apart for any

specific purpose.

15.3 It is therefore necessary before

allowing advances (other than

Temporary loans obtained from the

Company’s Bankers i.e Loan repayable

on demand or within six months from the

date of the loan, such as short term cash

credit arrangements discounting of Bills

and other short term loans of seasonal

character) to (i) Public Limited

Companies or (ii) Private Limited

Companies which are subsidiaries of

Public Limited Company to verify that

the total borrowings of the Company do

not exceed the paid-up capital plus free

reserves, if the borrowing should exceed

these limits, a prior resolution

authorising such an excess has to be

passed in a General Body Meeting of the

Company Certified copies of such

resolutions must be obtained and kept

with the documents.

15.4 A certified copy of the resolution

passed at a meeting of the Board of

Directors of the Company aurthorising

the advance stating the terms and

conditions thereafter etc should be

obtained . The resolution should further

state the names of person or persons

who would execute the documents on

behalf of the company. In the case of a

mortgage, the resolution should also

state the name(s) of the person/persons

who are authorised to deposit the title

deeds on behalf of the Company. All

resolutions of the company should be

certified by the Chairman of the Meeting.

15.4.a. Documentation procedure when

Private Limited companies change

into Public Limited Companies.

As per the provision of Sec 43(A) of

Companies Act a private limited

company will become a public limited

company when the average annual turn

over exceed a certain limit prescribed by

Central government. A private limited

company shall become a public limited

company when it accept deposits after

an invitation is made by an

advertisement or renew deposits from

public.

When a private limited company changes

into a public limited company, its rights and

liabilities already undertaken to the bank are

not affected and therefore, it may not be

necessary to disturb the loan documents

already executed by the company. It may

not also be necessary to close and open the

account for the reason of conversion of

private limited company into a public limited

company. Branches should follow the under

noted procedure in this eventually.

1. Copy of the amended Certificate of

Incorporation issued by the Registrar

of Companies should be obtained

and kept on branch records.

2. Confirmation of Balance and Revival

letter should be obtained from the

public limited company indicating that

it is formerly known as private limited

company e.g:- for ABC Ltd (formerly

known as XYZ LTD)……..Authorised

Signatory

3. The change of the name is to be

noted in the ledger and accounts.

4. No correction is required in the loan

documents already executed by the

company. However, while taking

further documents in future, the

company should execute the

documents in their new name as a

public limited company. Refer

circular 7(e) 6/96-97 dt 30/10/96 for

the procedure to be adopted in case

of change in the name of the limited

company.

15.5 Registration of charges:

In the case of all companies

including Private Limited Companies,

certain charges on their assets have to be

compulsorily registered with the Registrar

of Joint Stock Companies under Section

125 of the Companies Act 1956.

The following charges require compulsory

registration:

a. a charge for the purpose of

securing any issue of debentures;

b. a charge on uncalled share

capital of the company;

c. a charge on any immovable

property, wherever situate or any

interest therein;

d. a charge on any book debts

of the company;

e. a charge, not being a pledge

on any movable property of the

company(i.e. hypothecation charge);

f. a floating charge on the

undertaking (or) any property of the

company including stock-in-trade ;

g. a charge on calls made but

not paid;

h. a charge on a ship or any

share in a ship;

i. a charge on goodwill, on a

patent or licence under a patent, on a

trade mark , or on a copyright or a

licence under a copyright.

15.6. It should be noted that the charge has

to be registered in Form 8 along with

Form 13 within 30 days of its creation

after verification of prior charge, if any,

by making a search in the books of the

Registrar of Companies(ROC).

Registrar may allow for registration

upto 30 days after expiry of 30 days, if

the delay is genuine. When the terms

and conditions or extent of operation of

any charge already registered are

modified, a modification of charge

should also be registered in Form 8

along with Form 13 under the

provisions of Section 135 of the

Companies Act within 30 days . An

increase in the rate of interest higher

that the rise in RBI rate, constitutes a

modification of charge and hence has

to be registered with the Registrar of

Companies . When the existing limit

of advance is enhanced or additional

facility is sanctioned to the company, it

is not necessary that the account

should be closed and new account

opened for the total limit on the basis

of fresh documents. It is sufficient to

take documents only for the enhanced

portion of the limits or the additional

facility and register such charge with

the Registrar of Companies within the

prescribed time of 30 days. A

declaration in the form of a negative

lien that the assets are free and

unencumbered and an undertaking

that the said assets shall not be sold,

mortgaged, pledged hypothecated or

in any way encumbered without

previous consent of the bank in

writing , should be obtained in Form

419 . This document does not require

filling of any charge with Registrar of

Companies as, such a document does

not create any charge on any property

of the company. For detailed

procedure of filling charge with ROC

refer circulars 7 (e) 3/95-96 dt

27.06.95 and 7 (e) 1/96-97 dt.

12.06.96.

15.7 Affixing of Company’s common Seal

necessary wherever it is stipulated

either in the Article of Association of

the Company or in the resolution

passed by the Board of Directors.

There are some advantages in proving

a document containing Common Seal.

Therefore in all loan documents such

as DPN, Hypothecation Agreement

and indemnities executed by the

Company, branches may insist for

Common Seal of the Company , which

should be affixed in the presence of

the Directors/Secretary authorised

under a Board resolution.

15.8 Before granting an advance any form

to a limited company , a search should

invariably be made in the Office of the

Registrar of Companies to ascertain if

any prior charge exists over the

security offered.

Advances to partnership Firm

16. Though a partner has implied power

to borrow or pledge the movable

property of the firm, the loan or

advances documents should be

signed by all the partners .If,

however , one or more partners are

specially authorised by the

partnership deed or by a letter is

signed by all the partners of the firm,

the documents may be signed by

such authorised partners . Execution

of the documents should be under

the firm’s rubber stamp . Format of

letter of authority is given in

Annexure.

Sec 49 of Indian Partnership Act reads

where there are joint debt due from the

firm and also separate debts due from

any partner, the property of the firm

shall be applied in the first instance in

payment , of the debts of the firm and

if there is any surplus, then the share

of each partner shall be applied in

payment of his separate debts or paid

to him. The separate property of any

partner shall be applied first in the

payment of his separate debts and the

surplus (if any) in the payment of the

debts of the firm.

In view of this provision , branches

should obtain the personal guarantee

of all the partners, for the debts of the

firm.

Sole proprietary concern

17. The proprietor of the concern

should sign the loan or advance

documents as proprietor by affixing

the rubber stamp of his concern.

Pegging of Deposits/Loan

18. Branches who have got credit

limits sanctioned , with the stipulation

that the investments by way of

deposits and loans by the

partners/directors should be pegged

during the currency of the advance,

should obtain letters from the

depositors undertaking not to withdraw

their deposits/loans during the

currency of the loan to the borrower,

such letter of pegging should be

obtained in Form F 418.

Title Deeds

19. a.The title deeds must be

deposited by the owner of the property

or his agent, specially authorised for

such purpose by a power of attorney ,

who must attend the office of the Bank

for the purpose. If there are more than

one owner , and all cannot attend , a

power of attorney in the name of one

of them must be executed by the

others, for depositing the title deeds.

Where the title deeds are in favour of

a partnership firm, and all the partners

of the firm cannot attend the bank’s

office , they must execute /authorise

by a power of attorney one or more of

them to attend and deposit the deeds

on their behalf. This power of attorney

must be notarially attested and be kept

along with title deeds. If the borrower

is a company, a resolution delegating

the powers to one of the Directors or

to one of their officers, to deposit the

title deeds must be passed by the

Board of Directors. The power of

attorney/certified copy of the resolution

should be kept along with the title

deeds. The execution of power of

attorney must be notarially attested.

Whenever a third party offers immovable

property as mortgage security, personal

guarantee should be obtained from such

third party. Otherwise it can be contended

that there was no consideration for the

mortgage.

The title deeds , should be originals, Copies

of title deeds should not be accepted without

prior reference to Central Office. The

narration in the specified form as given in

page No. of this manual (para 12

Chapter XG of Book of instructions) has to

be made in the Title Deeds Register by an

Officer of the Bank and witnessed by two

Officers. The borrower should not sign the

register and no acknowledgement of receipt

should be passed on to him by the Bank.

The borrower should however execute a

letter of confirmation of deposits of title

deeds in Form F379 preferably on the next

day of the deposit. For purpose of

extending the scope of security of equitable

mortgage (viz, mere deposit of title deeds or

deposit accompanied by Registered

Memorandum) the mortgagor should call at

the Branch. A supplementary narration

should be entered in the title deed register

as per narration given in page No. On

the next day, a confirmation letter in Form

No. 379A should be obtained from the

owners. The encumbrance Certificate for

the period during the date of earlier title

deed narration and the supplementary

narration should be obtained and kept on

record. If there is any intervening

encumbrance, the matter should be referred

to the sanctioning authority.

In the case of Limited Companies, the

supplemental narration should be obtained

as given in Page No. of this manual and the

confirmation letter signed by the authorised

signatory of the company on the next day as

detailed in Form No. 379A. It is necessary

to file modification of charge since the

supplemental narration is for the purpose of

extending the scope of security.

Revival of Mortgage

19b. Mortgage by deposit of title deeds of

registered mortgage is valid for a period

of 12 years from the date of mortgage.

To extend the mortgage beyond this

period any one of the following

procedure should be adopted.

i. Before the lapse of 12

years from the date of mortgage branch

should obtain balance and security

confirmation letter as per the format

given in Annexure2. The balance and

security confirmation letter should be

properly filled and signed by the

borrower/guarantor over Revenue

stamps as in the case of Revival letter.

ii. The branch can also

create a fresh equitable mortgage by

redeposit of title deed provided there is

NIL encumbrance during the indemnity

period. Care should be taken to obtain

nil encumbrance till date of redeposit of

title deeds.

iii. In case of Registered

Mortgages branch should not arrange for

redeposit title deeds. The period of

limitation can be extended by an

endorsement by the mortgagor on the

Registered Mortgage Deed as to the

repayment of principal and interest. The

endorsement should be made on any of

the reverse page of the Registered

Mortgage Deed and the endorsement

should be on the following lines; “I/We

hereby confirm and acknowledge my/our

indebtness in the outstanding sum of

Rs……………(Rupees

Only ) as on ……………………..and

further acknowledge that the debt is

secured by this Registered Mortgage

and that the Mortgage security is in full

force and effect.

Place:

Date

Signature of Mortgagor

Alternatively it will suffice if branches

takes security confirmation letter within

12 years from the date of the Registered

Mortgage Deed and follow the procedure

outlined in para 19.1 (i)

Guarantees

20.a. Joint Stock Company(Limited

Company)

Branches should examine the

Memorandum and Articles of Association of

the company to see if it has power to give a

guarantee or offer security. Whenever

branches have to examine this aspect of

power either. In the Memorandum and

Articles of Association or in the power of

Attorney , specific guidance will have to be

given that the authority to give a guarantee

or to create a mortgage ought to be clearly

spelt out and not to be interred from general

terms.

20.b. Partnership

As the giving of guarantee is

outside the normal business of a partnership

, it is always advisable to require all the

partners of the firm to join in signing a

guarantee given on its behalf, unless an

individual partner has express authority to

give a guarantee, binding the firm. It is

however preferable to obtain guarantees of

all the partners in their individual capacities.

Guarantees should be obtained in

all cases on Form 111 from the guarantor

either prior to or simultaneously with the

execution of loan documents by the

borrower. If it is a case of securing and

existing advance , the appropriate form of

guarantee is Form 111A .This may be noted

carefully as Form 111 is not a valid

document for guarantee relating to existing

debts.

Consortium Advances

21. In consortium advances, two or more

financial institution join together in

meeting the financial requirements of a

borrower . They share the securities on

pari passu basis or in such manners as

per the terms of the agreement among

themselves.

Generally, the following procedure is

adopted before entering into pari passu

agreement.

1. When the working capital

facilities are granted against the security

of current assets , single window

concept is to be adopted . The following

documents are to be executed. Refer

Permanent Circular ADV.541/89 dated

23-6-89.

a. Board Resolution to be passed

by the Borrower Company.

b. Resolution to be passed by the

member banks for appointing the

First Lead Bank and Second

Lead Bank.

c. Resolution to be passed by the

Second Lead Bank.

d. Letter of authority to be given by

the member banks to the First

Lead Bank.

e. Letter of authority to be given by

the member banks to the Second

Lead Bank.

f. Working capital consortium

agreement between the borrower

and the Participating Banks- to

be signed by the Borrower , the

first Lead Bank for self and on

behalf of other banks.

g. Joint Deed of Hypothecation to

be executed by the Borrower

company in favour of the

Participating Banks - to be

signed by the borrower only.

h. Inter – see Agreement between

the participating Banks- to be

executed by the consortium

banks only.

i. Undertaking letter from the

Borrower company for creating

Second charge and on Fixed

Assets- to be obtained by the

First Lead Bank.

j. Revival Letter (RL) to be signed

by the Borrower Company- to be

obtained by the First Lead Bank.

2. 2. When term loans are granted against

the security of immovable property ,

the Lead Bank examines the title to

the property. The opinion on title

deeds obtained from the

advocates/solicitors is circulated

among the participants.

The participating Banks exchange

among themselves a letter ceding pari

passu charges expressing their willingness

to share the security equally without

claiming any priority. The format of the letter

will be ordinarily as follows , but it may be

varied according to circumstances.

“Dear Sirs,

Letter ceding pari passu charges

Financial assistance to

…………………………………………………

…………………..

We Indian Overseas Bank (IOB) hereby

agree and confirm that notwithstanding

anything to the contrary contained in or by

virtue of the mortgage and charge created/

to be created by …………………………….

(hereinafter called “the Borrower” ) in our

favour in respect of the Borrower’s

immovable and movable properties to

secure the term loan of Rs………………

with the interest and other monies payable

by the Borrower to us in respect thereof,

the mortgage and charge of IOB shall in

all respect rank pari passu with the

mortgages and charges created / to be

created by the Borrower in favour of

1……………………In respect of its term

loan of Rs………..

2…………….In respect of its term loan

of Rs……………..

(Name of the participating

Institutions with the detail of

their amount of loan)

together with interest thereon at the

respective rates, compound interest in case

of default , commitment charges ,

prepayment premia, costs,

charges ,expenses and their monies

payable by the Borrower to you under your

Heads of Agreement /loan agreement

sanction letters entered into by the Borrower

issued by you to the Borrower without any

preference or priority of one over the other

or others of them for all purposes and to all

intents.

We all authorise you to make a mention of

the pari passu charge in favour of ourselves

and/or your institutions on the assets of the

Borrower company in the form of particulars

of charge required to be filled by the

borrower with the Registrar of Companies

pursuant to the Companies Act, 1956 . We

hereby further agree to undertake and

confirm that we shall enter into a pari passu

agreement with you and the Borrower

defining the rights and obligations of the

parties Inter –se and also providing that the

securities created/to be created by the

Borrower under or by virtue of the aforesaid

mortgages and charges shall rank pari

passu in point of security and for the

purpose of realization without any

preference or priority of one over the other

or others for all purposes and to all intents

and including specific provisions regarding

insurance, custody of insurance policies ,

custody of title deeds, application and

realisation of sale proceeds etc. in such

form and in such manner as may be

mutually agreed upon.

We also request you to issue a

similar letter to us conceding pari passu

charge in our favour on the Borrower’s

assets in respect of our above term

loans if not already issued.

Yours faithfully,

…………………

A joint equitable mortgage is created in

favour of all the participating Institutions.

The lead bank accepts the title deeds

for itself and on behalf of other

participants as their agent.

In respect of the movable machineries,

each participating bank may either take

its own hypothecation deed or they may

take a joint deed of hypothecation as

agreed between them. Finally a pari

passu agreement is executed by all the

participants.

Before execution of the pari passu

agreement and other joint documents,

the lead bank or the Solicitors nominated

by the participants circulate the drafts

among the participants for the purpose

of getting their approval. The

suggestions made by the participating

institutions as may be agreed upon, will

be incorporated in the drafts.

If the borrower is a company, whenever

charge is created over its assets in

favour of the institutions either

individually or jointly, it should be

registered with the Registrar of

Companies. When there is any change

in the terms and conditions of the charge

due to subsequent execution of

documents, modification of charge is to

be filed.

Insurance

22. All securities such as stocks, buildings,

machineries, vehicles etc. charged to

the bank should be insured for the full

value in the joint names of the bank and

the borrower and the relative Insurance

policy(ies) should be held with the

security documents. Insurance should

cover risks of theft, damage due to fire

and riots. Cover for any special type of

risk depending on the location of

godown, nature of machinery or stocks

should be taken in consultation with

Central Office. In cases of insurance for

machineries, cover should be available

for erection, break down, etc. wherever

necessary.

In case of goods delivered under trust, a

suitable endorsement in the policy must

be obtained, as ordinary policies do not

cove goods held under trust. While

obtaining cover notes/policies it should

be ensured that proposal forms have

been filled in and filed by the borrower

with the Insurance Company.

Insurance may be waived in the following

cases.

Category Type of risk Type of assetsa. All category of Priority Sector advances Fire & Other risks Equipment and upto and inclusive of Rs.10,000 Current assets b. Advances to SSI Sector upto and inclusive of Rs.25,000 by way ofi. Composite loans to artisans village Fire -do-

and cottage industries.ii. All term loans Fire Equipmentiii. Working Capital where these are against non- hazardous goods/Current assets Fire Current assets

Where however, Insurance of vehicles of machinery or other equipment/assets is compulsory under the provisions of any law or where such a requirement is stipulated in the refinance scheme of any refinancing agency or as part of a Government sponsored programmes such as IRDP, Insurance should not be waived even if the relative credit facility does not exceed Rs.10,000 or Rs.25,000 as the case may be.

Obtention of Documents on behalf of

other branch

23. Branch which requests the other

branch to obtain documents, should fill

up the form in all respects and

forward the same to the branch, where

it has to be duly stamped and got

executed. At the executing branch,

party should call in person and

execute the documents in the

presence of the Manager. The

Manager should get himself satisfied

about the identity of the party.

Manager shall forward the documents

to the concerned branch under

registered post, with acknowledgement

due and in the covering letter should

state specifically that the named

executant had called on the branch in

person and executed the documents.

Mention should be made on the time

and date of execution also. The other

branch should keep this letter along

with the documents. If at the branch

where documents has to be enforced,

higher stamp duty is payable, the

deficient stamp will have to be paid.

In states where our Branch Managers

are authorised as ‘proper officers’ to

cancel special adhesive stamps, they

can affix the deficient stamp and

cancel with their full signature

mentioning the actual date of

cancellation. In other states, such

deficient stamp duty must be made

good by the Treasury

Officials/collector of stamps.

In case of Sub Limits

23.A it is the practice to allow certain

parties to enjoy sub limits at various

centres on the basis of proposals

submitted by one branch. In such

cases, the parent branch (proposals

submitting branch) should obtain

documents in the aggregate for the

entire limits, arrange for insurance,

creation and registration of charge

etc and confirm to the other branches

that they are holding valid documents

and insurance cover covering the

entire limits.

Transferring of Advance Account

from one branch to another

24. Advance accounts can be

transferred from one branch to

another at the written request of the

borrower and on obtaining permission

from Central Office/Regional Office.

While Regional Office can accord

permission for transferring an account

within the region, in cases where

limits have been sanctioned under the

discretion of the Regional Manager, a

report should be sent to Central

Office, detailing the reasons for such

transfer of an account. In case of

limits sanctioned by Central Office,

and where inter regional transfer is

involved, prior permission from

Central Office is necessary. It is also

necessary for the Regional

Office/Central Office to obtain the

concurrence of the transferee branch

for effecting transfer of a borrowal

account.

Branches should first obtain a letter,

requesting for transfer of the account,

duly countersigned by the guarantor,

as per specimen provided in

Annexure 3. On obtaining the

permission from Regional

Office/Central Office, Branch should

transfer the account, after debiting

interest upto the date of transfer.

Branch should note to forward the

following, along with the debit advice,

under registered post with

acknowledgement due. It is also

incumbent on the part of the transferor

branch to rectify all the rectifiable

mistakes pointed out by the

Inspectors/Auditors in the previous

inspection reports, before the account

is transferred.

1. Copy of permission

received from Regional Office/

Central Office for transferring the

account.

2. Copy of the letter of

request from the party duly

countersigned by the guarantor

as per Annexure 3.

3. Loan documents and

the insurance policies on the

assets charged to the Bank.

4. Latest copy of

sanction endorsement of limits

(copies of all sanction

endorsements)

5. F 209 upto the date

of transfer from the last

sanction.

6. Relevant extract of

the Inspection report on the

account and reply of the Branch.

7. A confidential note

prepared by the Manager of the

transferor branch giving a critical

comment on the conduct of the

account, the past experience

with the borrower and his

recommendations about the

party.

On receipt of the above, the

transferee branch should open the

account on the account on the basis

of the advice received from

transferor branch. While doing so,

branch should also ensure that

interest for the interegnum period is

calculated and debited (interegnum

period is the time lag between the date

of transfer from the transferor branch

and the date of debiting the account at

the transferee branch). Transferee

branch should obtain debit

confirmation letter from the borrower

and guarantor on the date of debit.

If the credit facilities are secured by a

mortgage, while transferring the

facilities, branches need not disturb

the title deeds lodged with the

transferor branch. However, branches

should seek instructions from Legal

Services Department whenever any

enhancement is made in the limits

already sanctioned prior to the transfer

of facilities, as a supplemental

narration has to be recorded.

In the case of limited companies,

while ensuring that all the above

formalities are complied with,

branches should note to obtain a

resolution passed by the directors, at

their meeting, for transferring the

account. A supplemental agreement

as per specimen provided in Annexure

9 & 10 should be filed along with form

8 and from 13 with the Registrar of

Companies, for modification of charge,

within 30 days from the date of

execution of supplemental agreement.

Branches should also note to obtain

necessary endorsement from the

Insurance Company in the Insurance

policies.

Branch should seek instructions from

Legal Services Department in respect

of documentation whenever accounts

are transferred inter-State.

Transfer of a borrowal account may

involve transfer of outstanding under

contingent liability also. In such cases,

transferor branch, may transfer the

outstandings, including the contingent

liabilities, but should handle

documents very expeditiously

whenever received under letter of

credit opened by the transferor

branch, as it is not possible to advise

the negotiating Bank/beneficiary of

the guarantee about the transfer of

account to another branch. On

receipt of bills, transferor branch

should examine the documents and

ensure that there is no discrepancy

and forward the documents

immediately to the transferee branch

under registered post with

acknowledgement due. In case of any

discrepancy the negotiating Bank

should be advised about the

discrepancy in the usual manner and

advising the Bank that the Branch is

holding the document at the

negotiating Bank’s risk and

responsibility. However, the

documents should be forwarded to the

transferee branch immediately.

Similarly, when a claim under a

guarantee issued by the transferor

branch is received, the transferor

branch should immediately forward the

letter to the transferee branch under a

copy to Regional Office and Central

Office. An acknowledgement should

be sent to the beneficiary of the

guarantee, wherein, inter alia, the

branch should state that the account

has been transferred to another

branch and the matter has been

referred to them and request the

beneficiary to contact the transferee

branch. In all these type of cases, it is

the duty of the Chief/Senior

Manager/Deputy Manager to ensure

prompt steps.

While taking over an account from

another bank

25. Branches can take over a borrowal

account from another bank on

obtaining permission from Central

Office. (in case of accounts where the

aggregate credit facilities exceed

Rs.50 lakhs from the Banking System

‘No Objection Letter’ from the other

Bank is necessary). Branches should

follow the following procedure while

taking over an account.

1. Obtain permission from Central

Office

2. Obtain a letter from the

transferor Bank listing out the

dues from the borrower

3. Obtain a letter of confirmation

from the borrower as to the

correctness of the outstanding.

4. Obtain documents as per this

Manual.

5. Obtain letter of authority

authorising payment to the

transferor bank.

6. Comply with the instructions

issued by Central

Office/Regional Office in

respect of advances from time

to time.

7. To the debit of the Loan/Cash

Credit account, prepare a

cheque on Reserve Bank of

India State Bank of India or

Bankers Cheque favouring the

Bank mentioning the name of

the borrower viz., ABC Bank

A/C: XYZ Ltd.,

8. Draft a covering letter, in which

clearly indicate as to the

appropriation of the amount as

per instructions of the borrower

and call for “No due Certificate”

and “No lien certificate” from

the transferor Bank.

9. Send the Bankers Cheque

/cheque along with the covering

letter through our bank

messenger only.

In case of limited companies , In

addition to the above, the following

formalities should be complied with

1. Conduct a search in the files

of the Registrar of Companies

and take out a list of subsisting

charges ; if any second charge

is in evidence , branch should

seek instructions from Legal

Services Department enclosing

a copy of list of charges priority

wise and copy of sanction from

Central Office to taking over of

the account.

2. Exchange the Bankers

Cheque/Cheque on Reserve

Bank of India /State Bank of

India for Form 17 (Satisfaction

of charge) No due Certificate

and No Lien Certificate.

3. File Form 17 (given by the

transferor Bank) and Form 8

and Form No:13 (creation of

charge in our favour with the

Register of Companies

Preferably on the same day).

Branches should not commit to the

Bank either in writing or orally as to the

other outstandings which have not

been covered under the arrangement.

Branches should not disburse the

money directly to the borrower for

remitting the same at the other bank

for adjusting the outstanding under any

circumstances . The Bankers cheque/

cheque favouring the transferor bank

should be sent only through our Bank’s

messenger. For other detailed

procedure on take over of borrowal

accounts from other banks, refer

permanent circular Adv.234/98 dated

28.4.98.

Regularisation of time–barred debt

For any reason, if a loan

account is time-barred for enforcing

personal remedy in the absence of any

revival letter or confirmation of

balance, or any letter of

acknowledgement or payment under

the borrower’s signature, the matter

should be immediately reported to

Regional Office and the concerned

advances Department at Central

Office. In consultation with Regional

Office/ concerned Advances

Department , remedial measures

should be taken to revive the time-

barred debt.

There are two ways to revive a

time-barred debt. viz.

a. New loan account

can be opened after taking fresh

loans /security /guarantee

documents for the present

outstanding together with upto date

interest along with a written request

to close the debit balance in the old

(time –barred) account out of the

new loan amount.

b. Without closing and

opening the account an express

promise agreement can be taken

from the borrower and fresh

guarantee F111A can be taken from

the guarantor.(If there is any

mortgage security , only this method

should be adopted instead of first

one).

Modification of charge

27. In para 15(6) above, it has been

laid down that when the existing limit

of advance is enhanced or additional

facility is sanctioned to the company,

to obtain documents for the

enhanced portion/additional facility

supplemental deeds are to be

obtained in any of the following three

cases and the deed in respect of

each case is prescribed hereunder.

(Refer permanent circular ADV

423/88 dated 31.5.88)

Enhanced limit with the same

security 110F

Enhanced limit with additional security

110G

Same limit with additional security

110H

Creation of Collateral Security

(Machineries & Current Assets)

General Hypothecation Agreement

28. Whenever a sanction endorsement

contain a stipulation that

machineries or current assets or

book debts should be held as

collateral security for other credit

limit(s) ,branches should obtain the

general Hypothecation Agreement

for collateral securities in

F.No.110E. This is to be obtained

in addition to the usual loan

documents take for the concerned

limits.

The General Hypothecation

Agreement (110E) must specify the

nature and amount of credit facilities

for which collateral security has been

stipulated and schedule column

should be filled in appropriately eg.

All present and future ------ of the

borrower at the factory premises or

elsewhere.

Branches should note that we can

secure only movable things in

hypothecation agreements.

Therefore, in the schedule column

either land or building should not be

mentioned as hypothecated security.

29. When limits are enhanced where

pronotes and connected documents

are taken afresh for the full limits the

old account should be closed by

transfer to a new account on the

basis of new documents. In the case

of cash credit or overdraft, the

borrower should be asked to issue a

cheque against the new account

equal to the outstandings in the

account inclusive of interest upto the

date of closure and the amount of

the cheque which must be endorsed

by the borrowers should be credited

to the old account. Both the debit to

the new account and the credit to the

old account should be treated as

cash transaction.

This procedure should be followed

in all cases where documents are taken not

withstanding the limit being the same,

reduced or enhanced. This however will

not be applicable in the case of LIMITED

COMPANIES when the existing limit of

advance is enhanced or additional facility

is sanctioned to a firm/company , it is not

necessary to obtain fresh documents for

the total limits and to close and open a new

account , to obviate disturbing the security

mortgaged. It is sufficient to take

documents only for the enhanced portion

of the limits or the additional facility.

Procedure to be followed by our bank

while ceding second charge on current

assets in favour of financial institutions.

30. Branches must obtain prior

approval of the competent authority

before ceding second charge on the

current assets of the company. Further

our ceding second charge on the

current asset should be on a reciprocal

basis. Hence branches should only

agree for ceding second charge on the

current assets provided Financial

Institutions cede in our favour second

charge on the fixed assets to secure

the working capital facilities extended

by us to the company. Further

branches are aware that by our bank

ceding second change on the current

assets in favour of the Financial

institution, we cast upon ourselves the

responsibility of safeguarding.

Financial Institutions interest also. Our

responsibility towards Financial

Institutions includes informing

Financial Institution, the fact that our

bank is contemplating action against

the borrower for realisation of our dues

and to pass on the surplus, if any, to

the Financial Institutions. Hence

branches should keep with the

documents, our letter ceding second

charge in favour of the Financial

Institution and also make note of the

same in “Document Execution

Register”. Similarly branch should

record the fact that Financial

Institution have ceded second charge

on the fixed assets in favour of the

bank. Draft of No-objection letter to be

given to the borrower in respect of

ceding second charge on current

assets is appended in Annexure 16.

Procedure for creation of second

charge on fixed assets in our

favour, where first charge has

already been created in favour of

other financial institutions.

31. As first step, a consent letter/no

objection letter from the first charge

holder either addressed to the

borrower or bank should be obtained

for extending second charge on fixed

assets for facilities granted by the

bank. Normally the first charge

holder will address the consent letter

to the borrower added with some

conditions. Thereafter,

hypothecation deed will have to be

obtained by bank creating second

charge on machinery. Then an

authorisation letter should be sent

by the Bank to the first charge holder

requesting them to act as agent for

the purpose of extending the

mortgage.

In order to extend the mortgage by

way of equitable mortgage, the

borrower should call at the office of

the first charge holder and authorise

them to continue to hold the title deeds

on behalf of the Bank also as

continuing collateral security for the

working capital facilities or any other

facilities granted/to be granted by the

Bank. Subsequently, the borrower

should confirm his representation by

writing a letter to the first charge

holder with a copy endorsed to the

Bank. Based on such representation

and the letter received from the

borrower, the first charge holder

should confirm in a letter addressed to

the Bank that the mortgage has been

extended in favour of the Bank.

When a borrower is a limited

company, Board resolution should be

passed authorising a Director to

extend the mortgage and execute

necessary documents as may be

required by the Bank for purpose of

creating a second charge on the fixed

assets.

The extended mortgage will cover the

fixed assets such as land, building,

fixtures, fittings, plant and machinery

(fixed) in order to have a second

charge on movable machinery, it may

be necessary to have hypothecation of

machinery, for the concerned limits as

stated above. When any of the

working capital limits such as cash

credit/packing credit is already

secured by stocks by a hypothecation

deed F.251B/F 110A a supplemental

hypothecation deed in F 110H should

be obtained for securing machinery. In

respect of other working capital

facilities for which there is no earlier

letter of Hypothecation, F110E should

be taken for the aggregate of such

limits mentioning therein the schedule

as:

“All present and future machinery of

the borrower including vehicles at the

factory premises or elsewhere.”

In respect of Limited Company

borrower, modification of charge

should be filed based on F110-H in

respect of limits for which charges

have been already filed on stocks. In

respect of other limits, fresh charges

should be filed based on F110E.

On extension of mortgage also these

charges may have to be modified.

In order to put notice of our Bank

holding the second charge on

machinery branch should arrange for

display of a hypothecation board with

the following wordings at the business

premises/ factory of borrower after

obtaining the consent of the first

charge holder.

The machinery in this premises are

hypothecated to:

1)………………………………Bank

……………….(Name of the first

chargeholder)

2.Indian Overseas Bank

Refer Annexure regarding format of

letters/undertaking to be executed.

32.Where lending rate is at par or

has gone below RBI lending rate:

Wherever advances are granted with

lending rates at par or below the RBI

lending rate, branches may henceforth

obtain DPN which does not contain

RBI interest clause.

Accountability

33. No advance should be released

without first obtaining proper

documents complete in all respects.

The second in command of the

branch (i.e) Assistant Manager

/Deputy Manager/Senior Deputy

Manager /Manager/Senior Manager,

as the case may be, should give a

certificate to the Branch Manager

before disbursement of advances that

all the relevant documents for

releasing the facility have been

obtained duly filled in and completed

and signed by the execucants in the

capacity intended. The format of the

certificate is given in Annexure 13.

This certificate should be obtained in

respect of each loan/advances.

Branch Chief Manager /Senior

Manager/Manager/Senior Deputy

Manager/Deputy Manager should not

disburse the loan/credit facility without

obtaining this certificate.

The branches manned by only one

officer (i.e) Manager, the Manager

should himself send the above

certificate to his Regional Manager as

per Annexure 14.

Death of Borrower

34. On receipt of the report that a

borrower is deceased, the branch

should take up the matter immediately

with the respective Regional Office

regarding documentation, Branch

should simultaneously obtain a letter

of undertaking as per Annexure 35

signed by all the legal heirs of the

deceased borrower.

PART-II

DESCRIPTION OF DOCUMENTS WITH

DISTINCTIVE NUMBERS

PART – III

TYPES OF ADVANCES AND DOCUMENTS TO BE TAKEN

Part IV

GENERAL GUIDELINES ON EACH TYPE ADVANCE

Advances against Government

Securities/Relief Bonds/

National Deposit Scheme

1. Ensure ownership of the borrower

or the guarantor, as the case may

be, of the security.

2. Owner should deliver the security to

the Bank, duly endorsed in favour

of the Bank

3. In case of advance against security

standing in the name of third party,

obtain letter from the owner

authorising the Bank to hold the

certificate as security for the

advance to the borrowers.

4. Obtain documents as per

instructions.

5. Forward the Government

Promissory Notes to Public Debit

office to ensure that endorsements

are in order and Government

Promissory Notes are genuine (If

there are a number of

endorsements, ask the party to

have in renewed before

endorsement to be Bank).

6. Enter all the particulars in the

Security Ledger and Loan Ledger.

7. Retain margin as per instructions.

8. On obtention of the Government

Promissory Notes from Public Debt

Office, release the loan amount.

9. In the case of National Deposit

Scheme, Bank should get the

deposit receipt discharged by the

depositor, without specifying any

date on the reverse of the receipt in

the column “Receipt of Discharge”

at the time of granting advance.

Advance against Indira Vikas Patra

1. Obtain documents and

application cum security deliver

letter as Annexure 15.

2. Repayment programme not to

exceed 36 months depending

upon the maturity pattern of

patra.

3. Margin at such stipulated rate of

paid up value of patra inclusive

of interest accrued for each

completed year from the date of

issue.

4. Indira vikas Patra are payable

only on the due date, and

premature closure is not

permitted. They are payable on

maturity to the holder and no

endorsement is required. No

lien can be registered, as the

patra are issued without

mentioning the name, Branch

should be very careful for the

sale custody of the patras

lodged to them as security.

Advance against National

Savings Certificate/ Kisan Vikas

Patra/10 year social security

certificate

1. Ensure ownership of borrower

or guarantor as the case may

be, of the security.

2. Retain stipulated margin on the

face value of certificate at the

time of granting advance.

3. Borrowers should not

discharge NSCs if they are

pledged as security. At the

time of enforcement of

certificates, they are to be

discharged by the bank, as

bank being the pledgee is

deemed to be the holder of

certificate as per rule No.16(i),

of National Savings Certificate

Rules, 1982 Refer Annexure

12.

4. When the loan is fully repaid

return the certificates to the

borrower along with the letter

addressed to Post Office

concerned informing that loans

have been paid and the

certificates may be transferred

into the name of pledgor.

Obtain acknowledgement in

F396.

5. For advance against Kisan

vikas Patra, documents as

applicable to advance against

NSC may be taken with

suitable modification.

6. For advance against 10 year

Social Security Certificate,

documents as applicable to

advance against NSC may be

taken with suitable

modification. Margin on the

invested value of certificate

and suitable repayment

programme not exceeding 36

months may be fixed

depending upon maturity of

certificates.

Margin and repayment as per

stipulation in the sanction or latest

guidelines, if any

Advances against Units of Unit

Trust of India

1. Obtain documents as

applicable to Govt. Securities.

2. Obtain relative Unit Certificates.

3. Obtain blank transfer deed

signed by the owner of the

Units.

4. Obtain letter of authority as per

Annexure 7.

5. Forward the letter of authority to

the office of the Trust.

Forwarding letter as per

Annexure 8.

6. Follow-up and obtain the

confirmation that the Unit Office

had made a note on its record

that the certificate is held in the

Bank as security and the grant

the advance.

Advance against Term Deposits

1. Obtain prescribed document

and got the deposit receipt duly

discharged by the depositor(s).

2. Enter particulars in the Loan

Ledger, particulars must contain

the details of security, its

distinctive number, date of

issuing of security its maturity

date and value etc.

3. Verify the signature of the party

with specimen on record.

4. Prepare the debit cash voucher

in case loan is disbursed as

cash or transfer debit voucher

and credit voucher crediting the

amount to the account as per

instructors of the borrower, in

writing.

5. Post the amount in the loan

ledger.

6. In case of loan against Term

Deposits (Fixed Deposit

/Recurring Deposit) record the

lien in the Term Deposit register

and Due date Register in the

case of fixed

Deposit/Reinvestment Deposits.

Also record on the face of the

receipt or RD pass books as the

case may be “UNDER LIEN TO

BANK’ in red ink.

7. In case of term deposits held at

a different branch, before

granting the loans forward the

deposit receipt duly discharged

under Regd. Post and ensure

(1) Verification of the discharge

of the FDR (2). Lien has been

marked in the books of Deposit

Receipt issuing branch.

8. Margin for advance against

deposit receipts should conform

to the directives on the subject

from the Reserve Bank of India.

Retaining a margin lower than

prescribed by the Reserve Bank

of India should be avoided.

9. In case where deposits stand

more than in one name and where

all the depositor are not able to

discharge the deposit receipt, the

depositors, who discharges the

receipt should be authorised by all

the other joint depositors to

discharge the receipt for the

purpose of availing of an advance

from the bank there against.

* F60 H is Loan Application-cum-letter

of Authority. If the borrowers(s) and

depositor(s) are different, the Loan

Application should be signed by the

borrower(s) and the Letter of Authority

should be signed by the depositor(s).

Advance against Shares and

Debentures

Ensure

1. Actively Quoted Shares and

debentures of limited liability

companies registered under

the Companies Act, declaring

dividend for the last 3 years.

2. Shares are fully paid for

3. Shares stand in the name of

the borrower as far as

possible.

4. Any alteration in the share

certificate bears attestation by

the company under its stamp.

5. Neither torn nor stamped with

any Bank stamp nor mutilated.

6. Shares not of a private limited

company.

Procedure

1. Obtain prescribed documents.

2. All shares under pledge to the

Bank are accompanied by Blank

Transfer Deeds in duplicate signed

by the shareholder duly witnessed

by other than husband or wife of

the shareholder. Witness is to be

easily traceable.

3. One set of transfer deed is to be

dated and other undated. In the

case of dematerialised shares.

Obtention of transfer deed is not

necessary.

4. Forward Notice of Bank’s lien to

the respective company in

duplicate under Registered Post

Acknowledgement Due and keep

the copy, postal acknowledgement

and the company’s acceptance or

refusal of the notice along with the

security documents. In the case of

dematerialized shares, instruct the

prospective borrower for create a

pledge in our favour through his

depository participant and get the

same confirmed by our depository

services at Regional Office,

Mumbai (Metro).

5. For limits exceeding Rs.10

lakhs where shares are held as

prime, additional collateral security,

shares should be transferred

Bank’s name. Shares lodged by a

shares broker are exempt from this

clause provided shares are held for

a period not exceeding 9 months.

“Whenever the limit/limits of

advances granted to a borrower

exceeds Rs.10 lacs, it should be

ensured that the said

shares/debentures/bonds are

transferred in the bank’s name and

that the Bank has exclusive and

unconditional voting rights in

respect of such shares. For this

purpose of aggregate of limits

against shares/debentures/bonds

granted by a Bank at all its

branches to a single borrower

should be taken into account.

Where securities are held in

dematerialised form, the

requirement relating to the transfer

of shares in Banks name will not

apply and the decision in this

regard will be taken by the

sanctioning Authority. However,

the Bank should avail of the facility

provided in the depository system

for pledging securities held in

dematerialised form under which

the securities pledged by the

borrower get blocked in favour of

the lending Bank. In case of

defaults by the borrower and on the

Bank excercising the option of

invocation of the pledge, the shares

and debentures get transferred in

the Bank’s name immediately.

Shares in physical form lodged by

a share broker are exempt from

this clause provided shares are

held for a period not exceeding

nine months”,

6. ”In case cited in clause No.5 in

respect of shares in physical

form, only Form 1 has to be

filed by the Bank with the

company in duplicate within 30

days from the date of

registration of transfer”.

7. Enter the securities in security

register.

8. Enter the details in Drawing

Power Register (Shares) with a

separate opening for each

party.

9. Arrive at the current drawing

power i.e. market value of the

shares less margin or

sanctioned limit whichever is

lower.

10. ”Drawing power should be

arrived atleast once in a

fortnight”.

11.Enter particulars in the Register

maintained Company wise,

against whose shares advances

has been granted.

12. When the advance in adjusted

ensure:

a. Recording of withdrawal

in Security Ledger and

Security Register.

b. Notice of lien to the

Company is withdrawn.

c. If the shares were

registered in the name of

the Bank, they should be

delivered with the

transfer deed property

completed and stamped.

d. Recording in the

Drawing Power Registers

maintained party wise

and company wise.

e. Return of securities to

the owner against

acknowledgement.

13. Advance exceeding Rs.5 lakhs

must have a definite repayment

programme.

14. If transfer feeds are signed by

attorneys on behalf of the share

holders, the powers in favour of

the attorney should be registered

with the concerned company.

15. No proxy should be issued by

branches in respect of shares

standing in the name of the Bank.

16. Reserve Bank of India’s

approval is necessary for

i. repayment schedule arranged in

respect of long term advance

against shares exceeding Rs.5

lakhs and if such schedules extend

beyond a period of 5 years.

ii. continuance of such long term

advances exceeding Rs.5 lakhs

without repayment programme if it

is not feasible immediately to

determine a repayment

programme.

17. “As per section 19 (2) of the

Banking Regulations Act, Bank shall

not hold shares in any company , as

pledgee or Mortgagee or Absolute

owner of an amount exceeding 30% of

the paid up share capital of that

company or 30% of the Banks own

paid up capital and reserves

whichever is less. In order to comply

with this stipulation, Regional Offices

shall maintain a register with a

separate opening for each approved

Company and branches shall advise

respective Regional Offices as and

when shares are lodged as securities

and released in the following format, in

the case of approved companies.

Name of the

Company…………………………………

…………………………

Authorised Capital………………shares

of Rs………….. each Rs.

Subscribed Capital………………

shares of Rs. ………. each Rs.

Paid up capital……………………

shares of Rs. ………. each Rs.

Limit of holding…………………..

……………. Rs. …………………….

(30% of the paid up shares capital of

the company or 30% of the paid up

capital and reserve of the Bank

whichever is lower).

___________________________________________________________________

Sl. No. Date Name of Borrower Name of the Company Nature of Shares No. of Shares Face value whose share are lodged ordinary/ of each

preferences etcshare

1. 2 3 4 5 6 7

Market value Total Market No. of shares Paide up value of Initials of each shares Value under security Shares under security Deposited withdrawn Balance Cr. Dr. Balance

8 9 10 11 12

In case of companies which are

not in the approved list, Central Office

shall maintain a register with a

separate opening for each company

and branches shall advise Central

Officer as and when shares are

lodged as securities and released in

the above format. In the case of

companies, not in the approved list,

prior clearance, has to be obtained

from Banking operations Department ,

Central Office, through their respective

Regional Offices”.

i. Advances against shares may be

extended to corporates (not to

individuals) to meet promotors’

contribution to the equity or new

companies, in anticipation or raising

resources. Such advances should

be treated as Bank’s investments in

shares and would thus come under

the ceiling of 5 per cent of the

incremental deposits of the previous

year prescribed for investments in

shares/Sector Undertakings. Prior

clearance from Central Office should

be obtained through Regional office

to ensure our exposure is well within

the 5 per cent as stated above.

ii. The minimum margin on loans to

individuals against equity shares and

debentures is 50 per cent and for

loans against shares and debentures

held in dematerialised form is 25 per

cent.

iii. The ceiling limit for advances

against shares and debentures to

an individual borrower is Rs.10 lakh

and if the shares and debentures

are held in dematerialized form,

the ceiling limit is Rs.30 lakh to an

individual.

Further, changes due to recent

directives of RBI/SEBI for restriction of

certain scrips only in ‘demat form’ are

on the anvil.

Advances against L.I.C Policies

1 Policy:– Points to be verified are

a. Date of the Policy, Policies issued

prior to 1938 are not acceptable

unless accompanied by a

confirmation from the LIC that there

are no prior assignments.

b,. Age of the insured must have been

admitted. If not, arrangements

must be made to have it admitted.

c. Policies attracting the provision of

Section 6 of the Married Women’s

Property Act are not to be

accepted.

d. Policies must be freely assignable.

e. Policies which had been assigned

to a minor are not to be accepted.

f. Whole life policies should not be

accepted without the prior approval

of the Central Office.

g. Endowment policies participating in

profits are the best acceptable type

of policies.

II. Procedure

a. Scrutinise the policy as

mentioned above.

b. Obtain the prescribed

documents.

c. Obtain the Last Premium

Receipt and examine. Also get

the Bonus Certificates and keep

them with the documents.

d. Get the policy assigned and

witnessed. Wording of

assignments given in the Book

of Instruction.

e. Obtain the notice of assignment

addressed to the LIC signed by

the insured.

f. Ascertain the surrender value

either from the manual supplied

or from the LIC.

g. Forward the policy, the notice of

assignment along with outer

covering letter as given in the

Book of Instruction to L.I.C. for

registration and return.

h. Enter the policies in the

Miscellaneous Security

Register.

i. Fix the Drawing Power or the

amount of the loan after

applying the margin prescribed

by the bank. Drawing Power =

Surrender value minus the

margin or loan amount

whichever is lower.

j. Enter the details of the policies

in the Drawing Power register

for cash credit against LIC

Policies. Mark the drawing

power arrived at in the credit

ledger.

k. Obtain a standing instruction

from the borrower authorising

the bank to remit the premium

directly, so as to ensure prompt

payment of premia. In the

alternative, diarise the due

dates of the payment of premia

and watch for the receipt of the

latest premia receipts thus

ensuring that payment or

premia is made.

l. On receipt of the insurance

Policy from the LIC keep it

along with the documents,

m. Diarise the dates of repayment

of the advance and ensure

adjustment promptly.

n. After the advance has been fully

repaid reasign the policy to the

borrower and forward it by

Registered Post to the LIC

requesting them to register the

reassignment in their books and

return it to the insured.

o. Endorse a copy of the above

letter to the borrower so that he

watches for the returning of the

policy. Draw the attention of the

borrower that he has again to

file a fresh nomination, as, an

assignment vacates the

nomination made earlier.

Advance against Merchandise (Key

Loan/Key Cash Credit)

General

1. Quality and Quantity easily

ascertainable.

2. Readily marketable.

3. Not subjected to violent fluctuation

in price.

4. Not subjected to rapid deterioration

in quality.

5. Not perishable and inflammable.

6. Does not evidence any speculative

hoarding.

7. Duration period for retention of

different commodities is not

exceeded.

8. Cash bill or invoice repressing

payment of cost price of

Merchandise to be seen.

Godowns

1. Located in safe localities and within

town limits.

2. Easily and directly accesible.

3. Covered on all sides and top.

4. Acceptable for Insurance.

5. Partition wall, if any, in adjoining

room which is not under the Bank’s

lock and key built upto the roof.

6. All doors are locked by padlocks

with the Bank’s name engraved in

full.

7. The main door being locked

outside and other doors inside with

Bank’s lock with book’s name

engraved.

8. Bank’s name evidencing pledge,

screwed prominently on each door

on the outside of godown.

9. Bank’s name board evidencing

pledge should also be displayed

inside the godown.

10.Godowns are cleaned and

disinfected with Malathion before

storage of foodgrains.

11.Suitable dunnage such as wooden

crafts or polythene sheets provided

to avoid damage from ground

moisture.

12.Preventive curative treatments are

undertaken for insect and rodent

control

13.Record range and individual

number, postal address, municipal

number, owner’s name boundaries

construction internal dimension and

insurance rating in the Godown

Register.

14.Record the key and lock number in

Godown Key Register.

15.Godown Inspection Chart wherein

deposit and withdrawal of stocks is

recorded should be displayed.

16. If merchandise is stored in rented

premises, latest receipt in respect

of rent paid and every month

thereafter until advance is cleared.

17. No lien letter from the owner of the

godown premises. In case of

rented godowns format of no lien

letter is provided in Annexure.

Storage

1. Storage to be effected

a. In the presence of the godown

keeper.

b. In a countable manner

c. Leaving sufficient and uniform

space from the roof.

d. Not near the doors giving access to

godown.

2. Enter the particulars in godown

inspection Register and Godown

inspection Chart. Chart to be kept

inside the godown.

Valuation of Stock

1. Verify the invoice and ascertain the

market price and record the later in

Market Price Register.

2. In the case of seasonal crops, at the

beginning of season ascertain from

Central Office the maximum

advance rate and minimum

margins for each product.

3. Ensure there is nothing in invoices

evidencing goods on consignment

basis.

4. Revaluation of goods upwards is not

permitted.

Releasing the advance

1. Obtain documents as prescribed.

2. Enter particulars in Stock Register–

cum-Drawing Power Register

based on godown keeper’s

certificate.

3. Arrive at the drawing power (value

less margin) (value = Market price

or cost, whichever is lower)

4. In the case of loan, enter

particulars in Demand Loan

Register and record it in Demand

Loan Liability Register.

5. In case of cash credit, send the

Drawing Power Register to cash

credit section for taking note of

drawing power and ensure getting

back the register.

6. Attach one tag bearing borrower’s

name, loan number and godown

number to the key of the godown.

7. Retain the keys (both original and

duplicate) in joint custody in the

safe.

8. Arrange for insurance and enter the

particulars in Insurance Policy

Register.

9. Record particulars in analysis of

Advances Register.

10.As far as possible, goods under

pledge to the Bank, should be

directly paid for by the bank to the

debit of the account of the

borrower. In exceptional cases,

payments could be made by way

of cheques issued by Customer’s

borrower.

Inspection

1. Conduct inspection at irregular

intervals atleast once a month.

2. Count the number of bags and

conduct random check in regard to

weight and quality.

3. Ensure there are no identifying

marks indicating borrowers are not

owners.

4. In case of loose storage, estimate

cubic capacity by measuring the

height of storage and area of

godown.

5. Thrust Testing rod and ensure

against extraneous matter.

6. Ensure precautions laid down for

godown, storage valuation of stock

are followed.

7. Initial in the godown Inspection

Register and also Godown

Inspection Chart which is kept in

the godown.

Release of Merchandise

1. On remittance of money, record

in the Loan Register and Loan Liability

Register in case of loans. In case of

cash credit record the remittance in the

cash credit ledger.

2.Enter the particulars of goods

released in Godown Inspection

Register.

3.Enter particulars of goods released

in Drawing Power Register in case of

cash credit.

4.Prepare Delivery Order authorising

Godown Keeper to deliver the goods.

5.Delivery order should be issued in

favour of the borrowers.

6.Obtain borrower’s

acknowledgement with date on the

reverse of the delivery order.

7.Discharge on the Delivery Order

should be made by the authorised

person only.

8.Delivery order should be

countersigned by the goodown

keeper.

9.Deliver the goods to the borrower.

10.Receipted delivery orders, on

receipt from the godown keeper should

be separately filed and kept safely.

11.Keys of the godown should not be

handed over to the borrower even if

the loan is fully adjusted.

In case of goods with clearing

Agents

1. Clearing Agent should be in

the current approved list.

2. Value of goods stored

should be within the overall limit and

the individual limit, where a sublimit is

specified for the particular

merchandise.

3. A storage certificate in

Bank’s name from the Clearing Agent

should be obtained before advancing.

4. An undertaking to effect

delivery will be made only to the Bank

or its order, need be obtained.

Insurance

1. Insure goods under pledge against

fire, theft, burglary, SRCC etc.

2. Full market value of the goods or

original cost whichever is higher

under pledge should be insured.

3. Policies must be in the joint names

of the borrower and the Bank with

Bank’s clause.

4. Where stocks are stored in more

than one godown, necessary

endorsement, in the policy should

be made specifying the particulars

of each godown.

5. Description of the goods and

godown in the insurance policy

should be correct.

6. Ensure all warranty clauses are

complied with.

7. Expiry of the policy should be

diarised and renewed promptly.

8. Particulars of Insurance policy should

be recorded in the Insurance Policy

Register.

Advance against Merchandise

(Open Cash Credit)

General

1. Limits fixed for Open Cash Credit

should be need-based and

purpose-oriented.

2. In view of the risk involved,

collateral security or a sound

guarantee must be obtained.

3. Advance of this type should be

restricted to cases where goods

require processing.

Documentation

1. Obtain documents as prescribed,

Stocks and Drawing Power

1. Stocks are held by the borrower in

trust for the bank.

2. Goods should not be removed

without adjustment of advance or

substitution of acceptable security.

3. Bank’s name board indicating

hypothecation should be

prominently displayed.

4. Certified stock statements

submitted by borrowers weekly.

5. Value of the stock therein should

be conformity with the current

market rate or invoice price,

whichever is lower.

6. Goods listed in the stock statement

should be in regular demand and

those permitted by Central

Office/Regional Office in sanction,

with strict adherence to submits.

7. Goods should not be obsolete or

out of fashion or perishable nature.

8. Record particulars of goods, their

quantity value in Drawing Power

Register and arrive at Drawing

Power.

9. Record the Drawing Power in

ledger and allow operations upto

the Drawing Power.

10.Study the statement and keep a

close watch on the conduct of the

account.

11.Drawing in the relative accounts

should at all times be covered by

the borrowing value of the

hypothecated securities.

12.Sale proceeds of hypothecated

stocks are to be routed through the

account.

13.Clean loan/Overdraft/facilities are

not concurrently allowed with a

view to maintain the prescribed

margin.

14.Composition and age of the

hypothecated stocks are

satisfactory.

15.Borrowers maintain proper up–to–

date stock records and stock

statements which tally with the

stock register.

Insurance:

1. Insure the goods hypothecation

against fire, theft, burglary and

SRCC.

2. Full market value of the goods or

original whichever is higher under

hypothecation should be insured.

3. Policies must be in the joint names

of the borrower and the Bank with

Bank’s clause.

4. Description of the goods and

godown in the insurance policy

should be correct.

5. Ensure all warranty clauses are

complied with.

6. Expiry of the policy should be

diarised and renewed promptly.

7. Insurance Policy should be

recorded in the Insurance Policy

Register.

Inspection

1. Inspection of stock under

hypothecation should be conducted

atleast twice in a month at irregular

intervals, once by the Deputy

Manager and again by the

Manager.

2. Ensure Stock books maintained by

the borrowers are real stock books

which are presented to sales tax,

Income tax authorities etc and

stock statements presented to the

Bank are the extractions from the

recordings of such books.

3. Record the dates of inspection

conducted in the “Register of Open

Cash Credit Inspection”.

4. Forward ‘Summary of Inspection’

done on hypothecation cash credit

accounts to the Regional Office

before the 5th of succeeding month.

Jewel Loans

1. Ensure

a. Borrower is respectable and easily

identifiable.

b. Jewels offered as security

belongs to the borrower.

c. Fineness and weight of the

gold offered as security.

d. Adequate margin for

extraneous matters such as

wax, string, fastenings,

precious stones etc.

e. In all cases exceeding

Rs.1,000/- appraisal is done

by an approved goldsmith

/appraiser.

2. Ornaments should be delivered

by the borrower in person to

the Manager as security.

3. Obtain documents.

4. Appraiser should certify about

the weight, fineness and

valuation of the jewel duly

counter signed by the Manager.

5. Enter all particulars in Jewel

Loan ledger and all entries

should be authenticated by the

joint custodians.

6. Place the ornaments in a strong

cloth bag.

7. Prepare jewel loan cards in

triplicate. Enter the printed

serial number of the jewel loan

card in the ledger and the

Branch Jewel loan number

allotted in the ledger in the jewel

loan card.

8. Keep the first copy of the jewel

loan card inside the bag, tie the

second copy around the jewel

loan bag and hand over the

third copy to the borrower.

9. Keep the jewel loan bags in a

tray serially in the safe room in

a safe.

10. Issue a token card to the

borrower for identification,

showing name of the borrower,

loan number, amount and date

of loan.

11. Enter particulars in the Register

of Jewel Lodged /Withdrawn

from the safe (Movement

register)

12. Movement register must be

signed by the joint custodians.

13. Loan amount should be in the

multiple of Rs.10 with a

minimum of Rs.100/-.

14. Prepare debit cash voucher and

obtain signature of the borrower

over revenue stamp and

disburse the loan amount.

15. Closure of the Jewel Loan on

full payment.

a. Obtain triplicate copy

of the jewel loan card from the

borrower.

b. Obtain

acknowledgement of the borrower in

jewell loan ledger.

c. Ensure repayment of entire

outstanding.

d. Enter particulars in jewel

movement register under joint initials.

e. Take out the bag pertaining to the

loan, verify the contents and then

hand over the jewels to the borrower.

f. Attach the jewel loan

card to the application and retain it

along with the jewel loan application

closed documents.

16.In case of part payments, ensure

that ornaments in possession of the

Bank cover the balances

outstanding. Borrowers receipt for

each article delivered should be

obtained.

Credit facilities against Title Deeds

1.Ensure

a. Documents of title to the property is

in original.

b. Property offered as security is urban

vacant land and it is not in excess of

ceiling limit provided under the Urban

Land Ceiling Act.

c. In case of urban vacant lands, the

land is within the ceiling limit of the

partly (An affidavit as per

Annexure 1 must be obtained).

d. If the property is a building with

adjoining land, such adjoining land

is within the ceiling area.

e. When an urban vacant land within

the ceiling limit of the property is

offered as security, the party has

given notice under Section 26 of

the Urban Land Ceiling Act.

f. Legal opinion on the title to

the property from the approved

lower certifying ownership as clean

and satisfactory.

g. Obtention of

Valuation Report from the bank’s

approved valuer.

h. No-encumbrances certificate for a

period of last 13 years till the date

of creation of mortgage.

i. Obtention of latest Property Tax

paid Receipts.

j. Obtention of layout plans of the

building/factory.

Deposit of Title Deeds.

a. Deposit of the deeds (Equitable

Mortgage) can be done only at

notified centres.

b. Ensure the place is a notified

place

c. If yes, proceed further, if no, refer

para 7.

d. All persons interested in the

property as owners must be

present.

e. All the terms and conditions on

which the advance is made must

be recited to the owners in the

presence of three employees of the

Bank, one of whom must be

Manager or Deputy Manager.

f. Obtain VERBAL acceptance of the

owners.

g. Record the particulars of the title

deeds in the Title Deeds Deposit

Register.

h. Entries to be verified

and signed by three officers of the

Bank, one of whom must be

Manager/Deputy Manager.

i. Mortgagor should not

sign in the Title Deeds Deposit

Register.

j. (i) After entering the

title deeds, the following narration

should be recorded in the Title

Deeds Deposit Register.

“Shri/Smt/Sarvashre…….called at the

bank and deposited the above

mentioned title deeds. When making

the deposits he/they stated that he

/they did so with an intent to create a

mortgage in favour of the Bank as

continuing collateral security for

advances made and/or to be made by

the bank of…………by way of (nature

of facility) ……..or otherwise and for all

other indebtedness and liability of

his/theirs whatsoever and all costs and

charges outstanding at any one time

together with interest thereon.”

(ii) In case where title

deeds stand in the name

of Limited companies,

narration should be as

follows:

“Shri/Smt/Sarvashree

Diretor/Officer of M/s.

……………………………

Company Ltd called at

the Bank and deposited

the above mentioned title

deeds. When making the

deposit he/ they

……………stated that

he/they did so with an

intent to create a

mortgage in favour of the

Bank as continuing

security for advances

made and or to be made

by the Bank of

M/s…………….Company

Ltd. By way of ……..

(Mention nature of

facilities) or otherwise

upto an extent of

Rupees…………………

……………..(Rs…….)

and for all other

indebtedness and liability

of the Company

whatsoever and all costs

and charges outstanding

at any one time together

with interest thereon.

k. Letter of confirmation in Form 379

should be obtained on the

subsequent day

3.Registered Memorandum of

Deposit of Title Deeds:

a. Follow all the procedures

outlined above.

b. Obtain Registered Memorandum of

Deposit of Title Deeds in 417 and

register the same with the sub-

Register of the area.

4. Registered Mortgage

a. Follow the

procedures outlined

in para 1.

b. Mortgage deed to be

drafted by the

approved lawyer of

the Bank.

c. Register the

Mortgage with Sub-

Registrar.

5. If title deeds stand in the

name of partnership firm and

if all partners cannot attend

for depositing of title deeds,

they must authorise/execute

by a power of attorney in

writing one or more of them

to attend and deposit title

deeds on their behalf. Such

power of attorney should be

kept along with the

documents. Refer page No.

8 Para 19.

6. If title deeds stand in the

name of limited companies,

a resolution delegating the

powers to one of the

Directors or to one of their

officers to deposit the title

deeds must be passed by

the Board of Directors . The

power of attorney and

certified copy of the

Resolution should be kept

along with the documents.

7. In the case of non notified

centers:

a. All formalities connected with legal

examination of the title deeds and

valuation should be complied with

ibid 1 (a) to (i)

b. Forward the title deeds to Branch

situated at the nearest notified place

under Registered Post along with

lawyer’s certificate in original,

specimen signature of the owner

who will call at the other Branch to

formally lodge the title deeds, a

covering letter from the branch to the

effect that title deeds have been

scrutinised by Bank’s approved

lawyer at their end and that it convey

a clear and absolute marketable title

to the owner thereof and the name’s

of persons’ who are required to

deposit the title deeds as per legal

opinion . The Manager should also

confirm that the requirements, if any

stipulated by the lawyer have been

fully complied with

c. Request the owners of the

property to be present at the

notified centre along with

introductory letter issued by

the branch.

d. Obtain, a certificate after the

deposit of the deeds at the

notified centre is over from

the Branch certifying that the

title deeds have been

deposited. Title deeds can

be returned to the lending

branch on request, only on

return of this certificate.

e. Obtain letter of confirmation

of deposit of title deeds in F

379 on the following day to

the date of deposit of title

deeds and forward the same

to the Branch where the title

deeds have been deposited

under Registered Post.

f. When the depositor calls at

the Branch at the notified

centre, obtain a letter as per

Annexure.

g. Follow procedure in para 2

(Excluding k)

h. Ensure F 379 is received

and retain the same along

with the documents, along

with the relative cover

showing the postal

acknowledgement stamp.

8. Obtain loan documents as

applicable for the advance.

9. Insure the building with

fittings and fixtures against

fire and SRCC in the joint

names of the owner and the

Bank, with the Bank’s

clause and enter the same

in Insurance Policy Register.

10. Ensure prompt renewal of

Policy.

11. Inspect the property

periodically and retain the

inspection report in the title.

12. In case of loans, enter

particulars in the Demand

Loan Register.

13. Post the amount in Loan

Liability Register.

14. Release the loan amount

according to the progress of

the construction, calling up

the prescribed margin at

each stage, based on

Architect’s certificate.

15. Ensure progress made in

construction is according to

schedule and deviation, if

any, is for valid reasons.

16. Ensure

a. Terms and conditions of

the loan, particularly

restrictive covenants, are

being duly implemented.

b. There is no interlocking

of funds.

17. In case of further advance

after deposit of title deeds,

against the same security:

Ensure

a. Documents have been obtained for

the enhanced portion.

b. Owners of the property/authorised

persons to deposit the title deeds

are present.

18. Record the narration as

follows except in case of

Limited Companies.

“Shri………………called at the

bank and stated that the title deeds

of the property situated at

………………..(full description of

property and its address) already

deposited by him on…………..with

intent by him on……………..with

intent to create a mortgage in

favour of the Banks as security for

the advance made and /or to be

made by the Bank to

Shri…………..may be continued to

be held as continuing collateral

security for all advances made

and/or to be made by the bank to

Shri…………….and for all the other

indebtedness and liabilities of his

whatsoever and all costs and

charges outstanding at any one

time together with interest thereon”.

In case of Limited companies,

narration should be as under

“Shri………………..Director/Officer

of M/s……………….Company Ltd

called at the Bank and stated that

the title deeds of the property

situated at

………………………………………

……..(full description of the

property and its address) already

deposited with the Bank on

M/s……………………..with intent to

create a mortgage I favour of the

Bank as security of the advances

made and/or to be made by the

Bank to

M/S……………………………………

………to the extent of

Rs…………………….

(Rupees………………………………

……….) may be continued to be

held as continuing collateral

security for the further advances

made and/or to be made to

M/s……………………………and for

all costs and charges to an extent

not exceeding Rs…………………..

(Total of original and additional

limit) outstanding at any one time

together with interest thereon.”

19. Obtain confirmation letter in

F 379A

Repayment

20. Recover the instalments and

interest as and when due to

the debit of Current Account,

on the strength of letter of

authority obtained from the

borrower.

21. Reduce the liability in liability

ledger as and when

recovered.

22. Period on loan may be

computed from the date of

signing Term Loan

Agreement or the date of

first disbursement of Term

Loan, if it is later

Release of documents: On

adjustment of the advance

23. Return the title deeds to the

depositor against

acknowledgement in Title

Deeds Deposit Register. If

the depositor is deceased,

the title deeds maybe

returned to all the legal heirs

or to any of them against the

written consent of others.

Legal heir can be

ascertained from the legal

heirship certificate issued by

the Revenue authorities or

an affidavit given by two

independent respectable

persons. The format of the

affidavit used in settlement

of claims can be adopted.

24. In case of Registered

Mortgage and Registered

Memorandum of deposit of

Title Deeds release has to

be registered with Sub-

Registrar.

25. Branches in the State of

Gujarat and Maharashtra

As simple deposit of title deeds

attracts stamp duty, branches in

these States are advised to

have Registered Memorandum

of/Deposit to Title Deeds or

Registered Mortgage as per

sanction or as per the

procedure laid down by

Regional Office.

26. Properties situated at

Cantonment Area

1. In case of properties situated at

Cantonment area, if the

Cantonment area is not notified

place, only registered mortgage

can be created. Simple deposit

of the deeds /Registered

Memorandum of Deposit of Title

Deeds is not acceptable .

However, if Cantonment Area

itself a notified place (like Indore

Cantonment) simple deposit of

Title Deeds may be accepted.

27.Limitation period for

enforcement of mortgage is 12

years. In case of equitable

mortgage limitation will get

extended by any supplemental

narration and by obtaining

confirmation letter in F379-A

Limitation period of registered

mortgage will also get extended by

obtaining the security confirmation

letter.

Advances against Ware house

Receipts

1. Advance should be made only

against receipts issued by Central

or State Warehousing Corporation.

2. Obtain documents as prescribed.

3. Enter particulars in the loans

ledger. Particulars must contain

the details of security, its distinctive

number, date etc.

4. Verify the signature of the

warehouseman.

5. Verify the endorsement of the

original depositor or the first

endorsee (Advance should be

sanctioned only to the original

depositor or the first endorsee)

6. Forward the notice of pledge

(F374) in Duplicate to the

warehouseman. Obtain duplicate

copy duly acknowledged by the

warehouseman and retain the

same along with the documents.

7. Arrive at the amount of finance

after allowing the margin as per

requirements.

8. Post the amount in liability ledger

and loan ledger.

9. Credit the party’s account with the

loan amount to the debit of loan

account.

10. In case the loan is adjusted in full,

return to the borrower the receipt

duly discharged.

11.Obtain acknowledgement of the

warehouse receipt from the

borrower and hold it in the file.

12. In case of part payments and

releases, address a letter to

warehouseman authorising the

release of specified quantity.

13.When partial releases are

authorised, the releases are

incorporated in the Warehouse

Receipts, indicating the balance

quantity still held under the

warehouse Receipt forward the

letter and the warehouse Receipt

through the godown keeper for

effecting partial releases.

14.Ensure return of the warehouse

receipt to the bank duly endorsed

regarding the part release

15. Issue delivery order to the borrower

and after being receipted by the

borrower keep the same on record.

This condition will apply only in the

case of part payment and release.

16.A letter should be obtained from

the borrower authorising the Bank

to pay future rent to the debit of the

borrower account.

17.A letter from Warehousing

Corporation should be obtained

indicating the amount of insurance

cover earmarked for the goods

pledged to the Bank Letter must

contain an undertaking that in the

event of any claim arising and

materialising on the goods held for

account of the Bank, the amount

will be paid to the Bank subject to

any legitimate charges.

Term Loan (Machinery)

1. General

a. Ensure borrower has a

licence to import the

machinery if to be

imported.

b. In other cases suppliers

are established concerns

of good repute, it is

advisable to obtain a

status report on the

manufacturers and

suppliers of machinery.

c. Payment for the

machinery is not on a

deferred basis.

d. Land and Building is

ready for installation of

machinery.

e. Cost of Machinery as per

proforma invoice is not over valued

or inflated.

2. Obtain documents as

prescribed.

3. Record full details of the

Machinery in Demand Loan

Register.

a. Date of

purchase

b. Details of

machinery with

identification

number of

machine.

c. Name of

supplier with

address.

d. Invoice /Bill

Number

showing costs

i.e. purchase

price.

e. Depreciated

value of

machinery

showing basis

of calculating

depreciation

and rate

thereof.

f. Condition of

machinery

4. Enter the loan amount in Loan

Liability Register maintained

partywise.

5. Release the amount to the

credit of borrowers current

account wherein borrower has

provided the requisite margin.

Under the authority of borrower,

issue bankers cheque/demand

draft directly to the supplier of

machinery as per Proforma

invoice; obtain receipt and

retain with documents.

6. Ensure requisite margin is

provided by the borrower.

7. Specific machinery to be

purchased from specific

suppliers from whom proforma

invoice has been obtained and

sent to sanctioning authority

and mentioned in the project

Report.

8. Paint Bank’s name prominently

on all machines hypothecated

to the Bank.

9. A list of hypothecated

machineries to be hung in the

main hall of the factory. Where

a waiver of this condition is

needed, specific written

approval to be obtained from

the sanctioning authority.

Insurance

10. Insure machinery against fire,

theft, burglary, SRCC,

breakdown, erection etc

(Storage cum erection

insurance)

11.Policy to be in joint names of

the borrower and Bank, with

Bank’s clause.

12. Ensure prompt renewal of

policy.

13. Enter particulars in Insurance

Policy Register.

Repayment

14.Recover as per repayment

schedule

15. Period of loan may be

computed from the date of

signing Term Loan agreement

or the date of first disbursement

of Term Loan, whichever is

later.

16.On the basis of letter of

authority obtained from the

borrower, recover the

instalments and interest on due

dates from the current account.

17.On recovery of the instalment,

the outstanding in Loan Ledger

as well as in Liability Register to

be reduced.

Inspection

18. Inspect the machinery every

month and submit report.

Conduct of the advance

19 Ensure

a. Anticipated capacity has been

attained.

b. Anticipated sales has been

reached.

c. Except where the Bank’s

instalments and interest are being

paid regularly, Bank’s consent in

the matter of distribution of net

profit available after deduction of

tax, is obtained.

Storage –cum- Erection Insurance

In case where advance has been

granted for purchase and installation of

machineries this cover should be

taken. The cover from the time of

arrival of first consignment at site and

until commissioning the machines,

equipments and materials, against the

risks of fire, explosion, lightning etc

besides damage due to defects in

material, casting and workmanship,

accidental damage during the course

of handling, assembly and erection at

site like collusion, collapse, impact

faulty manipulation dropping or failing,

breaking of slings, electrical and

mechanical breakdown during testing

of new plant and machinery.

Forward Contract

A. Purchase

Obtain request letter from the

exporter - customer with the

following documents:

1. Documentary proof of export in any

one of the following from.

a. Irrevocable letter of credit

b. Firm Order

c. Cable/telex message through

Overseas Communication Centre.

2. Prepare the

contract in F 258. The original to be

stamped as per rules. (See

Annexure 30)

B. Sales

Obtain request letter from the

importer-customer with the following

documents:

1. Exchange control copy of import

licence or declaration as per import

policy.

2. Sales contract or letter of credit

or any other document in lieu of it as

permitted by exchange control

authorities.

3. NRE/FCNR deposit to Non –

Residents.

4. Prepare the contract in F258A –

original to be stamped as per rules

(See Annexure 31)

Defered Payment Guarantee:

(Imports)

1. Forward an application to

Reserve Bank of India on the basis

of a deferred import licence,

accompanied by the following

documents:

a.Exchange Control copy of the

Deferred Payment Import Licence.

b. Statement in duplicate in the

prescribed form as per Exchange

Control Manual.

c. A certified copy of the contract

entered into between importer and

the foreign supplier.

d. An Application on an appropriate

exchange control Form (Form A-1)

for remittance of the advance

payment if any has to be effected.

e. A draft copy of the Bank

guarantee proposed to be issued by

the Bank.

2. Obtain R.B.I. approval and

separate code number for the

approved arrangement. This code

number should be quoted in all

correspondence with RBI on this

matter.

3. In the case import of machinery

against DPG or COD basis, obtain

confidential opinions on the

manufacturer/Supplier of

machinery. The bank should be

satisfied that the reports are

absolutely satisfactory.

4. Obtain documents as

prescribed.

5. Remit the advance payments, if

any.

6. Enter into forward sale contract,

on a roll over basis.

7. Collect commission as per

FEDAI Rules and permanent

circular FX 51/98-99 dt. 13.10.98 &

any other guidelines issued from

time to time.

8. After receipt of import

documents diarise the due date of

installment.

9. Advise Foreign Exchange Dept;

Central Office one week in advance

regarding the installment due and

remittance.

10. Remind the party a fortnight in

advance prior to the due date and

request them to make necessary

funds arrangements.

11. On the due date, remit the

instalment.

12. Include the remittance in R

Return.

13. While the guarantee is in force,

branches should exercise all

precautions that are required for

term loans.

a. Fixation of Bank’s name plate

on the machinery.

b. Periodical inspection.

c. Periodical appraisal, economic

viability, technical feasibility,

commercial aspects, financial

aspects, managerial aspects.

Packing credit

1. Ensure

a. Borrower is a bonafide exporter

and has Exporter Code No. or

IECN and is registered with

respective Export Promotion

Council.

b. Production of Letter of Credit or

Confirmed Order or exchange

of cables or telex message.

C. Letter of Credit in force in all

respects.

(i) Not revoked

(ii) Date of shipment and

negotiation not expired.

(iii) Genuine

d) In the absence of letter of credit,

obtention of report on the buyer

or ECGC Policy on the buyer.

e) Country to which export is

made, does not face any foreign

exchange problems.

f) Goods to be shipped are

usually traded by the exporter.

g) Terms of payment.

h) Export of goods for which

preshipment finance is sought,

is not barred.

i) Exporter is in possession of

necessary export quota

wherever necessary.

j) Clause in L.C. or order does not

run contrary into the rules of

FEDAI and UCPDC and rules

and regulations in export

trade/export credit regulations.

k) Obtention of L.C./Confirmed

Mail Order within a reasonable

time wherever telex message

have been accepted.

2.Arrive at drawing power applying

stipulated rate of margin to the value of

the exports to be made under LC.

While arriving at the drawing power,

care should be taken to restrict the

drawing power, to the domestic

cost/FOB value whichever is less.

3.Obtain documents as prescribed.

4.Record in the Letter of Credit,

evidencing granting of packing credit.

5. Obtain original of the Letter of

Credit or firm order and retain it

along with documents

6. Packing credit should be

granted preferably by way of

loan, or byway of cash credit as

per sanction terms.

7. In case of Loans

a. Obtain Form 251 B for the entire

limit.

b. Obtain Form 251 (need not be

stamped) every time fresh loan is

sanctioned.

c. A running simple loan account need

be maintained.

d. Whenever loans are granted, loan

amounts be debited to the running

account.

e. Except the loan amount and

interest, there should be no other

debit.

f. There should be a separate credit or

set of credits in respect of each debit

in the account.

g. Contra dates of the debits and

credits should be marked.

h. Interest debited should be adjusted

by transfer from current or any other

account.

8. In case of Cash Credits

a. Obtain documents as prescribed.

b. A separate cash credit account to

be opened for each borrower.

c. No cheque book for drawings on this

account be allowed.

d. Operations in this account are only

by way of vouchers.

e. Maintain a subsidiary register

recording details of orders,

allocating a folio for each order with

columns for date, particulars of the

order number L.C. Number,

debit/credit balance, number of

days, products and interest.

f. In each folio admissible amount to

be debited.

g. Total of such debits to be debited to

packing credit, cash credit account

and credited to customer’s

Current/Cash Credit Account.

9. Disbursements to be linked to actual

purchases of products and/or raw

material meant for export and to

meet such other expenses

concerning the export order.

10.Ensure against the misuse of funds

of adjustment of any other

expenses.

11.Obtain Stock statements and paid

invoices periodically.

12. Arrange for insurance of stock upto

the time they are placed on ‘board’.

This applies even in FOB & CF

basis) and display of the Bank’s

hypothecation/pledge board.

13.Inspect the stock periodically.

14.Submit monthly declaration under

the Whole Turnover Packing Credit

Guarantee in duplicate to

controlling office along with the

credit advice for the premium at

prevailing rate debited to

customer’s account.

15.When bills are tendered, follow the

procedure laid down for

negotiation/purchase of bills and

adjust packing credit.

Note

1.Advise party to book forward

contract while granting packing

credit.

2.If the exporter is not able to export

against the original contract due to

circumstances beyond his control

branch can adjust the packing

credit advance by negotiating

export bills relating to another

contract to another country

provided the same goods financed

by the Bank by packing credit

advance are exported within a

reasonable time under the

substituted contract. The proceeds

of the export are to be received in

an approved manner within the

prescribed period.

3.Incase of Packing Credit granted to

exporters who do not have letters

of credit or confirmed order in their

own name but are routing their

exports through Export

House/Agencies.

a. Obtain suitable letter from the

Export House/Agency stating (i)

that it has entrusted a part of export

order to the supplier –customer for

fulfilment and (ii) that no

preshipment credit would be

availed by them against the same

and further giving details of exports

orders.

b. Export House/Agency should open

Inland L.C. favour of the supplier

customer or the latter should draw

bills on the Export House/Agency.

In case such bills drawn on the

Export House/Agency are not

accompanied by documents

evidencing export, a certificate

should be obtained every quarter

from the Export House/Agency

stating the goods have in fact been

exported and indicating the

particulars of the bills such as date,

amount and the name of the Bank

through which the bills have been

negotiated.

c. Obtain Undertaking letter from the

supplier-customer for remitting to

Bank the advance payment if any,

received from the Export

House/Agency against the export

order.

Advance against Duty Draw Back

1.Ensure

a. Declaration by the borrower on

the relative shipping bill in respect

of the claim of duty draw back.

b. Obtention of a copy of shipping bill

bearing the certificate of the

customs authorities stating that the

amount of duty of draw back

provisionally determined and on

sanction, the same will be paid to

the bank by them through the R.B.I.

c. Borrower is entitled to duty draw

back by referring to (i) notifications

issued by Central Government (ii)

Export promotion council.

2.Verify that the actual quality declared

in the shipping bill has been

shipped, by calling for shipping bill

from the borrower with the customs

endorsement and a copy of bill

Lading.

3.Obtain documents

4.Enter full particulars in the Loan

Ledger and post the amount in

party-wise liability ledger.

5.As refinance has to be availed,

forward the statement to main

branch at the metropolitan centre

as per instructions (at present Fort

Bombay Branch).

6.Obtain Export Finance Guarantee,

Export Production Finance

Guarantee in the case of post

shipment/preshipment respectively.

7.Collect a commission at the

stipulated rate on the amount of

each bill from the date of granting

the loan to the date of obtaining

refinance from R.B.I. with a

minimum of Rs.10/-.

8. Collect actual postage incurred in

forwarding bills/cheques for

payment.

9.Eventhough the advances against

duty draw back are granted only

against an assessment of the

provisional eligible amount, made

by the Customs authorities, if may

so happen in some cases that the

exporter is eligible only for a

reduced amount. In such cases,

maximum rate of Interest stipulated

for Cash Credit account should be

charged for the excess amount.

Advance against Export Incentive

Ensure

1.Commodity exported is entitled to

export incentive and percentage.

2.Application is submitted to JCCI &

E / Other authorities through the

branch.

3.Application is supported by export

documents viz., Original Bank

certificate, Attested Invoice, copy of

shipping bill authenticated by the

customs.

4.Obtention of documents and

recording of particulars in the loan

ledger and partywise liability

register.

5.Registration of the power of attorney

executed by the exporter in favour

of the Bank to receive incentive

amount, with the disbursing

authorities.

6.Advance is covered under Export

Finance Guarantee of ECGC.

Letter of Credit

The importer-customer should submit

the following documents for

opening L/C

1.Application in form 104X(Rev).

2.Exchange control copy of valid

import licence or declaration as

stipulated in Import-Export Policy or

Hand Book of Procedure.

3.Sale contract or any other document

in lieu of it, as permitted by the

Exchange Control authorities.

4.In the case of FOB C & F contracts

cover note from insurance

company.

Advance against Book Debts

1.Advance against Book Debts can be

granted by way of Cash Credit

only.

2.Ensure

a. A proper accounting system exists

in the borrower’s organisation.

b. Debtors are widespread.

c. Existence of satisfactory debt

collection mechanism.

d. Book Debt represent genuine trade

transactions by verifying original

orders, credit invoices, delivery

challans and other books of

account.

e. Periodical reconciliation of the

statements of receivable submitted

by borrowers with their books of

account.

f. Periodical statements of individual

ledger accounts are submitted.

g. No one particular party is the

recipient of disproportionate large

credit sales from the borrower.

h. Verification of goods returned

register to check any increase in

the volume of goods returned or

the frequency thereof.

i. Marked variations in the level of

trade debtors satisfactorily

accounted for

j. Satisfactory reasons for any increase

in period for which credit sales are

permitted.

k. Against interlocking of funds,

manipulation of receivables among

the associate concerns.

3.Obtain document as prescribed.

4.Based on the statement of the party

and after conducting a check with

the books of account of the

borrower, enter details in the

Drawing Power Register and arrive

at Drawing Power and advise Cash

Credit Section.

5.Ensure receipt of Audited Statement

of debts outstanding once in 3

months.

6.Receipted invoices to be verified.

7.Ensure that no advance is made

against book debts outstanding

beyond 90 days, unless specially

permitted by Central Office.

8.Ensure that all collection of book

debts are promptly lodged with the

Bank.

9.No bad debts are written off without

the prior approval of the Bank.

10.No discount or rebate is allowed to

the buyers in excess of percentage

as advised by C.O/R.O. of invoice

value declared to the bank.

11.Debts due from sister concerns,

associate firms, family

members/groups are to be

excluded from the outstanding

taken for arriving at Drawing

Power.

Advance against Tea Delivery Order

1.Ensure

i. Tea Delivery Order stands in the

name of the pledgor.

ii. Tea Delivery order is not old,

iv. Prompt date has

fallen due.

2.Obtain the Tea Delivery Order duly

endorsed in favour of the bank.

3.Retain adequate margin.

4.Forward the lien notice to the

warehouseman and the

auctioneer/broker by Regd. Post

Ack. Due.

5.TDO/Invoices should contain.

a. Grade of Tea

b. Gross Weight

c. Tare Weight

d. Net Weight

e. Garden Name

f. No. of chests in Break/Chest

Number.

g. Invoice prefix

h. Invoice Number

i. Number of chest in invoice

j. Year of manufacture

6.Keep the acknowledgement card

received from the warehouseman

and broker along with documents.

7.Enter particulars in loan ledger and

liabilities ledger.

8.When the advance is repaid re-

endorse the Tea Delivery order to

the Pledgor or his order and

intimate the warehouseman and

the broker/auctioneer.

*Prompt date is the date within which

the bidder, who has purchased tea

in the auction has to make payment

to the auctioneer/broker.

Advance against Pucca Delivery

Order

1.Ensure

a .Credit worthiness of jute mill issuing

the pucca delivery order.

b. No advance has been already

availed by the jute mill in respect of

those goods covered under the

pucca delivery order issued.

c. The date of the Pucca delivery order

is not unduly old.

d. Payment for the goods covered

under Pucca Delivery Order is fully

made by the pledgor. The relative

invoice has to be verified in order to

ensure that the goods covered

under the Pucca Delivery Order

and that of invoice are one and the

same.

e. Pucca Delivery Order is properly

endorsed by the pledgor in the

name of the bank.

f. Bank ‘s name as the ultimate holder

of the Pucca Delivery Order is

registered in the books of the jute

mill.

g. Where the goods covered by the

Pacca Delivery Order to be

exported, the Bank has to ensure

that the shipping instructions are

passed on to the jute mill always

through it by the pledger and the

delivery orders replaced by or

Warehouse Receipt of approved

shipping agents with an

undertaking to forward the relative

Bill of Lading direct to us. If the

shipping instructions have already

been issued by the pledgor before

pledge, then there is no harm for

the bank to accept such Pucca

Delivery Order but branch has to

ensure that Pucca Delivery Order is

replaced by Mate’s Receipt within

reasonable time.

h. Obtain documents as prescribed.

j. Arrive at amount of finance after

allowing the requisite margin.

j. Post the Loan amount in the Loan

Ledger and Liability Ledger and

credit the party’s account with the

amount.

k. Advise the Jute mills regarding

probable date of taking delivery of

the goods covered under the Pucca

Delivery order to ensure that

adequate insurance has been done

by the jute Mills: any

postponement of the date of taking

delivery should also be advised to

jute Mills.

Demand/Usance Bills

Purchased/Discounted (Inland)

1. On receipt of Bills, affix

special crossing stamp on all

sheets submitted.

2. Ensure

a. Bills represent a genuine trade

transaction and is not an

accommodation.

b. Bill of Exchange is properly drawn in

all respects.

c. Usance Bills should not exceed a

period as stipulated in sanction

letter.

d. In case of usance, bills are

adequately stamped.

e. Not an old bill.

f. Comparison of Railway Receipt or

Lorry Receipt regarding description

of the goods, weight and other

particulars.

g. Goods are consigned to Bank’s

name in case of lorry Receipts and

self in case of Railway Receipt.

h. Lorry Receipt is issued by an

approved Lorry Company.

i. The Bill is accompanied by insurance

Certificate.

j. Amount of the bill is not inflated.

k. Commodity covered by the bill is the

one in which the borrower is known

to trade in.

j. None of the instruments is forged.

m. Satisfactory credit reports on

drawee of bills.

n. There is no undue time lag

between despatch of goods and

lodgement of relative bill.

o. Bills are drawn on centres where

goods are consigned.

p. Bills are not under “open delivery of

goods at destination”

q. Bills are not drawn on

Associate firms.

r. Bills are not drawn on a person

care of a hotel, lodging house,

postmaster or post box.

s. The lines of business of the drawer

and drawee are not different.

t. The borrower does not discount bill

for an amount when bill earlier

discounted falls due similar to the

amount.

u. Bills are not drawn in respect of

commodities which are normally

consigned from centres at which

bills have been drawn.

v. Freight has been paid.

w. Satisfactory credit report on drawee

of the bill of exchange exceeding

Rs.10,000/-.

3.Enter the Bill, in Bills Referred

Register.

4. On obtaining sanction from the

Manager, enter particulars of bill in

Demand Bills Purchase

Register/Usance Bills Discount

Register.

5. Post the amount in Bills Liability

Register.

6. Collect Exchange/Discount and

PTTR as per rate in force.

7. Debit Demand Bills Purchased

(Inland) and credit proceeds less

Discounte/Exchange to Current

Account in case Demand Bills

purchase and debit Usance Bills-

discounted in case of bills on usance

terms.

8. Enquire fate, if bill not paid

within 7 days.

9. On receipt of realisation advice,

credit Demand Bills Purchased /

Usance Bills Discounted and

reverse the entry in liability.

In the case of usance Bills

a. Verify whether DA

(Documents against

Acceptance) or DP

(Documents against

Payment) terms.

b. Period of usance should not

exceed 90 days or as

specified in sanction letter.

c. Diarise and watch for

intimation acknowledgement

of acceptance from the

collecting branch.

d. Notify acceptance and due

date to the drawer.

e. Due date is determined by

allowing three days of grace,

unless the bill provides

otherwise, after the day on

which it is expressed to be

payable.

f. If due date falls on a public

holiday, bill should be paid

on the preceding business

day.

10. Retiring at places other than

those upon which they are

drawn be watched with

suspicion.

11.While dispatching bills, indicate

in the remittance schedule

regarding

a. Whether non payment advice

should be sent by letter

ortelegram.

b. Whether the bill may be

retained pending arrival of

goods.

c. Whether or not in the event of

non payments after the arrival

of goods should be cleared,

stored or insured.

d. Whether the bills should be

noted or protested for non-

acceptance and / or non-re-

payment; and

e. Whether the bills should be

returned after a stated period, if

unpaid.

12. If any margin is retained, the

amount should be debited to the

Current/Cash Credit account

separately. The entire

proceeds of bills purchase

amount should be credited to

the Cash Credit/Current

Account and margin amount

should be debited separately.

13.No exchange need be collected

on the margin amount while

purchasing / discounting bill.

14.When part payments are

received on bills

purchased/discounted, such

amounts should be credited to

the Bills Purchased Account.

15.Details of the part payments

received should be recorded in

the Bills Register by entering

the date of receipt of the part

payment, the foreign currency

amount (in case of foreign

bills) and the rupee equivalent.

16.Similar posting should be made

in the Liability Register also.

Date also should be marked in

the contra column. To indicate

that it is only part payment, the

date should be suffixed with

Word “P”. When the bill is fully

settled, the last instalment dates

should be suffixed with the

world “F”.

17.Margin retained, if any, can be

released in proportion to the

part payment received.

Bills Purchased/Discounted

(Foreign)

Refer also the booklet on Bills Under

Letter of Credit

Ensure the Exporter-Customer is

having/Import Exporter Code

Number and is registered with

respective Export Promotion

Council.

1. Verify whether bills presented by

the party are under Letter of Credit.

If so, ensure that documents are in

strike conformity with the terms of

Letter of Credit.

2. Ensure Letter of Credit

a. If revocable no advice of revocation

is received from the opening Bank.

b. is not restricted.

c. is valid and current

d. does not contain “offending

clauses”

3. Remember ‘Doctrine of strict

compliance’ while scrutinising bills

under L.C.

4. Ensure all documents are

submitted as per terms of Letter of

Credit with required number of

copies.

5. Ensure Bill of Exchange.

a. Is drawn by beneficiary

and signature verified.

b. Amount is within the

credit amount

c. Tenor, endorsement and

drawee as per terms of

Letter of Credit.

d. Mode Payable or

endorsed in favour of the

negotiating Bank.

e. Bears reference Number

as instructed by the

issuing bank.

6.Ensure invoice.

a. Mode out in the name

of the credit opener

unless required

otherwise.

b. Commercial invoice

and /or consular

invoice as required.

c. Description of goods

and merchandise

correspond with

description in the

credit.

d. Unit price and basis

of calculating it (CIF,

FOB etc) as per

terms of Credit.

e. Quantity of goods

checked from invoice.

f. Number of packages

shipped and marks

thereof given in the

invoices agree with

those in Bills of

Lading.

g. Name of port or place

of shipment and of

destination stated.

h. No adjustment of

account or

adjustments on prior

shipments are

permissible.

i. There should not be

any excess drawing

on shipment.

j. If a Credit allows part

shipment, the

amount drawn should

be pro rata to the

quantity actually

despatched unless

the credit stipulates

otherwise, or unit

price is indicated in

the L.C. and drawings

confirm there.

7. Ensure Marine Insurance Policy.

a. Policy or certificate as required

in Letter of Credit.

b. Document issued by an

insurance company or

underwriter covering risks as

per terms of Letter Credit.

c. Does not bear a data later than

the date of Bill of Lading.

d. Amount and currency as per

terms of Letter of credit.

e. In duplicate endorsed in blank

or it favour of negotiating bank.

f. Description of goods not

conflicting in terms with that in

other documents.

g. Covers the shipment during the

entire voyage.

8. Ensure Bill of lading conforms to

stipulations in UCP 500

a. Issue by a steamship

company or its

accredited agents.

b. Dated not later than

the last date of

shipment in the credit.

c. Not a stale bill of

lading.

d. Full set of clean on

board Bill of Lading

e. Port of shipment and

port of destination as

given in the credit.

f. If there is

transhipment at an

intermediary port,

whether Letter of

Credit permits such

transshipment.

g. Description of goods

in the Bill of Lading

does not conflict with

the description as

given in the credit.

h. Charter, Party, Short

form Blank back Bills

of Lading are not

acceptable.

i. If credit stipulates CIF

or C&F basis, Freight

paid bill of lading.

j. Does not evidence

“On Deck” shipments

unless so permitted

by the Letter of

Credit.

k. Not made out in

favour of the

consignee (Importer)

unless permitted by

letter of credit.

9. Verify documents such as

Certificate of Orign, Weight,

Quality, Analysis etc as

required by Credit.

10. Enter the bills in Bills

Referred Register and

record discrepancies. If

any, and refer to Manager,

Refer to Advances Section

and ascertain whether any

Packing Credit Advance is

outstanding against the

goods that is being

exported.

11. a. If documents are in order

and authorised by Manager

to Purchase, refer para 12.

b. If documents contain rectifiable

discrepancies, instruct the party to

rectify discrepancies and to resubmit

for negotiation. After ensuring

discrepancies rectified, follow

procedure as per para 12.

c. If the documents

contain minor or

superficial

discrepancies,

negotiate the bill

under reserve against

indemnity of the

beneficiary. Obtain

indemnity in Form

283 from the exporter

and proceed as per

para.12 in the case of

parties who are not

our customers,

indemnity should be

countersigned by

their bankers.

d. If documents contain

major discrepancies.

i. Call for

instructions

from the credit

opening bank.

ii. Send the bit for

collection and

pay only after

realisation.

12. a. Enter all details in

Foreign Documentary Bills

Purchased/Discounted

Register.

b.Post the amount in Liability Register.

c. Collect Exchange or Discount as per

rate laid down

d.If bills are negotiated under reserve,

record the particulars in a Register.

13. Prepare remittance schedule, sort

the documents as called for in

Letter of Credit.

14. Despatch original set of documents

by air mail and duplicate set by

next airmail.

15. In case of bills negotiated under

reserve mention discrepancies in

the remittance schedule.

16. Scrutiny of GR/PP forms should be

done as per the direction given in

exchange control manual.

Advance against Supply Bills

1. Facility against supply bills can

be sanctioned by way of Cash

Credit/overdraft and discounting.

2. Verify the terms of contract

of terms of payment.

3. Ensure

a. Inspection certificates

are attached to the

bills.

b. Inspection certificates

are genuine.

c. Bills are drawn for

amounts in relation to

the value of the

goods.

4. Obtain irrevocable power

of attorney and register

with concerned department

of the Government or the

purchaser concerned.

5. Obtain document as

prescribed.

6. Obtain endorsement of

assignment for each bill as

follows:

“ We ………………………………

for valuable consideration received

from Indian Overseas Bank,………

hereby assign and transfer all our

rights, title and interest in this bill

and the moneys thereby secured to

the said Indian Overseas Bank and

its successors and assigns and

declare that the receipts granted by

the said Bank or it successors or

assignee shall be good and valid

discharge of all moneys secured

under this Bill”.

7. Obtain letter from the

contractor/Supplier,

authorising the authority

responsible for making

payment on the bill, to

effect payment to the

Bank.

8. In case of cash credit,

record in Drawing Power

Register (Supply/

Collection Bills Register)

maintained partywise and

advance.

9. In case of purchase, debit

Demand Bills Purchase

and credit current account

and post the amount in

Demand Bills Purchase

Liability Register

maintained partywise.

10. Present the Bills on

drawees for payment.

11. When bills are returned for

any endorsement or

amendment ensure their

resubmission through the

Bank.

12. Bills entered in the

Supply / Collection Bills

Register need not be

entered in ODB/OUB

Register.

13. Allot Separate running

number for supply Bills.

14. Passing of contra and

balancing to be included in

ODB.

15. Watch on the due date and

ensure payment of bill.

16. If payment is not

forthcoming, delete the bill

and reduce drawing power.

In case of purchase,

recover the amount from

the party.

17. If part payment is received

towards any bill (supply

bill) before the due date,

entire bill amount should

be debited and drawing

power reduced unless

chance of recovering the

balance amount is bright

18. Cheques received in

payment of bills should be

scrutinized carefully and

ensure that they represent

genuine payments of bills.

19. In case of purchase, credit

the proceeds to DBP and

reverse liability

outstanding.

Advance against Hire purchase

Agreement

1. Advance Against Hire Purchase

Agreement can be sanctioned by

way of cash credit only.

2. Outstanding at any time should not

exceed the total amount of

instalments due at the time of the

owner from the hirer less margin

stipulated.

3. Ensure that the interest of the

financiers (borrowers) in respect of

vehicle covered by hire purchase

agreement are registered with the

Registering Authority.

4. Verify Registration certificate and

original invoices in respect of new

vehicles covered under Hire

Purchase Agreement.

5. Ensure vehicles are road worthy

6. Ensure road tax has been paid

7. Obtain documents as prescribed.

8. Hirers should execute all

documents in favour of borrowers.

9. Demand Promissory Note and Hire

Purchase Agreement executed by

hirers should be absolutely

assigned in favour of the Bank

reading as under.

“We, within named………………..

for valuable consideration hereby

assign and transfer all our rights,

title and interest in the within

written agreement and in the

moneys hereby secured to Indian

Overseas Bank and its successor

and assigns and declare that the

receipts of the said Bank or its

successors or assigns shall be

good and valid discharge of all

moneys payable under this

Agreement”

10.Release the advance to debit of

Cash Credit Account and proceeds

credited to Current Account

Operations by cheque are not

permitted on this cash credit

account.

11. Enter following particulars in

subsidiary register to ensure that

the cash credit balance agrees for

each vehicle.

1. Name of the financier (borrower)

2. Name and address of the hirer

3. Amount of Pronote

4. Amount due Rs…………..

5. Margin

6. Instalment as per agreement

7. Engine No. & Chasis No.

8. Registration No.

9. Make & Model.

10. Address of the place of stationing

of the vehicle.

Instalment Due Date Amount Amount

No. Date Paid Advanced Debit Balance

Paid Credit.

To amount advanced………………

12. Send notice in 107C to each

hirer under Registered Post.

13. Send a notice under Registered

Post with Ack. due to each hirer in

107E

14. Last instalment should fall due

before the vehicle becomes 3 years

old.

INSURANCE

15. All vehicles should have

comprehensive Insurance including

third party risks, With Riot, Strike,

Extension endorsement in the joint

names of the owner and hirer with a

special endorsement stating that the

vehicle is hypothecated to Bank with

Bank clause.

Repayment

16. Diarise the due dates

Instalments should be paid to the

Bank direct by the hirers.

17. All instalments paid by the hirer (s)

and other remittances to be

credited to borrower’s Current

Account.

18. Proportionate amount due to Bank

in respect of each instalment will,

on due date, debited to current

Account and credited to Cash

Credit account under irrevocable

letter of authority.

Inspection

1. Obtain a quarterly statement from

the borrower listing out the names

of hirers, vehicle No. amount

outstanding and a certificate that

the vehicle has been inspected

and found to be road worthy.

2. Verify periodically borrower’s

records and books of accounts to

verify the correctness of the

information furnished in periodical

statement.

3. If hirer continuously defaults

payment of instalments, he should

be excluded for the purpose of

advance.

Guarantee (Refer Permanent Circular

ADV 22/90-91 DT 31.7.90.)

1. Shipping Guarantee: Obtain

request letter in F 286F for issuing

shipping guarantee.

a. Ensure

i. Bonafide on the request by

reference to invoice.

ii. Invoice relates to genuine

movement of goods.

iii. Invoice is signed

iv. Letter of Credit has been

established relating to import.

v. If Letter of Credit has been

established collect full margin

before issuance of guarantee in

case of documents against

payment.

vi. If Letter of Credit has been

established and party is enjoying

Trust Receipt facilities obtain Trust

Receipt.

vii. If letter of Credit has not been

established, collection is routed

through us, recover the actual or

approximate amount due on the bill

(whether it is Documents against

Acceptance or Documents against

Payment) and retain it in margin.

b. Enter details in Business Referred

Register and obtain approval of the

Manager.

c. Obtain letter of indemnity in F 286 E

duly executed by the importer (F286E

to be stamped).

d. Enter particulars in Shipping

Guarantee Register and assign a

consecutive number.

e. Collect margin and commission as

per rules in force.

f. Await for arrival of documents.

When received, process as per

procedure.

g. Surrender Bill of lading to Shipping

Company or through borrower with a

request to return shipping guarantee

duly cancelled.

h. On receipt of concelled shipping

guarantee, reverse contra and round

off in shipping guarantee register.

i. Obtain general Hypothecation

agreement in F 110 E for securing

stocks/book debt/machinery as the

case may be.

Railway Guarantee

All the above formalities to be followed

Financial Guarantee & performance

Guarantee

Ensure

a. Guarantee relate to

normal business

requirements of the

constituent.

b. Guarantee amount is

consistent with the

means, standing etc

of the constituent.

1. Obtain letter of request for issuing

the guarantee in F 286F. The letter

of request to be preserved with copy

of the guarantee till the guarantee is

eliminated. The letter of request

should contain as enclosure, the

format of guarantee to be issued,

duly authenticated by the applicant. If

the guarantee is secured by

hypothecation of any movable assets

obtain F 110 E.

2. Record particulars in Business

Referred Register.

3. Obtain Manager’s approval.

4. Prepare the guarantee with the

Bank’s limitation clause (revised).

5. Ensure against any onerous clause

in the guarantee.

6. Obtain indemnity in Form 286E

from the applicant of the guarantee.

7. Record full particulars in Guarantee

Register and post the amount in

Liability Register.

8. Guarantee to be signed by two

officials of the Bank.

9. Collect necessary commission and

margin, if any.

10.Obtain documents as prescribed.

11.Retain the margin in margin on

Guarantees.

12.Retain copy of guarantee along

with indemnity and letter of request.

13.Pass contra voucher.

Dr. Customer’s Liability on Guarantees

account.

Cr. Bank’s Liability on Guarantees

account.

14. Ensure, on the date of expiry, that

Guarantee is returned to the Bank duly

cancelled.

15. If not received write a letter under

Registered Post with

Acknowledgement Due to the

beneficiary calling for the return of the

original guarantee duly cancelled and

also stating that in case the cancelled

guarantee is not received within 10

days from the date of receipt of the

letter, the guarantee will be eliminated

from the books without any reference

to the beneficiary.

16. If no reply is received or if

guarantee is returned duly cancelled,

margins kept may be returned to the

applicant, while doing so ensure.

a. The validity of the guarantee is

carefully verified by the branch as per

the restrictive clause including claim

period, if any

b. No claim including a demand

has been made on the branch by

beneficiary under the guarantee during

its validity period.

c. If the guarantee has been

extended beyond the dates given in

the original guarantee/ extended

guarantee, guarantees stand lapsed

even after the extended date.

17. Reverse the contra (i.e.)

Dr. Bank’s Liability on Letter of

Guarantee.

Cr. Customer’s Liability on Letter of

Guarantee.

18.Reduce the liability in Liability

Register and round off in

Guarantee Register.

19.No guarantee should exceed a

period of more than 10 years.

20.Guarantee should be for a

specific amount.

21.Revolving guarantee should not

be issued.

22.Period of liability should be

clearly indicated.

23. Incorporate the following

restrictive clause as last para in

all Guarantees.

Not withstanding anything contained

herein :

i). Our liability under this Bank

Guarantee shall not exceed

Rs…………………. (Rupees ……….

…………………………………. ..

only)

ii) This Bank guarantee shall be

valid upto…………………. and

iii) our liability to make payment

shall arise and we are liable to pay

the guaranteed amount or any

part there of under this guarantee

only and only if you serve upon us

a written claim or demand in terms

of the guarantee on or

before…………………… “

Refer Permanent Adv.194/97-

98/6.12.97

Advance against Motor Vehicle

1. Cash Bill or Invoice representing

payment of purchase price of Motor

Vehicle.

2. In the case of Old Motor Vehicle,

certificate of fitness, road

worthiness and value from

approved qualified Automobile

Engineer/ Engineering company.

3. Comprehensive Insurance Policy

on each vehicle with the Bank

Clause.

4. Vehicle Registration Certificate

recording the Bank as financier –

hypothecate Bank.

5. Documentary evidence of payment

of road tax (carrier licence fee if

company is a transport operator)

upto date.

Obtain following documents in

duplicate as per Motor Vehicle Act:

(Refer Permanent circular ADV

32/90-91 dt. 4.9.90)

a. Form 29 - undated from of

note of transfer of ownership

of a motor vehicle see

Annexure 23.

b. Form 30 – undated report of

transfer of ownership of a

motor vehicle - See

Annexure 24.

c. Form 34, application for

making an entry of an

agreement of hire

purchase/lease/hypothecati-

on subsequent to

registration Refer Annexure

25.

If the advance is completely adjusted

send form 35 –notice of termination of

an agreement of hire purchase

lease/hypothecation as per Annexure

26.

Agriculture

Crop Loans

1. Application duly filled in Agri 1

and Agri 15.

2. Chitta and Adangal duly signed

by the Village Officer showing

the survey number and extent

of dry and wet land, land

revenue, crops raised. In case

of land cultivated by tenants

lease deed or consent of the

owner or village officers

certificate’s showing survey no

and extent of lands cultivated

on lease and owner’s name.

3. No due certificate/Non member

certificate from the village co-

operative credit society.

4. Valuation report on the land by

the village officer when

collateral security obtained.

5. Two copies of passport size

photographs of the applicant.

6. It is not necessary to insist on

village officers certificate on

holdings every year when the

parties after repaying,

approach for fresh loan for

cultivating the same lands

unless branch see reasons to

believe that there is change in

the holdings.

Loans for Purchase of Electric

Motor/Oil Engine with Pump

sets:

1. Application duly filled in Agri

5 and 15.

2. Chitta and Adangal duly

signed by the village officers

showing the survey number

and extent of dry and wet

land, land revenue, crops

raised, etc.

3. No due certificate from the

village co-operative credit

society/land Development

Bank.

4. Valuation Report on the

lands issued by the village

officer when collateral

security is obtained.

5. In case of loans for electric

motors and pumpsets

feasibility certificate from the

Electric Board/Department

regarding extension of

power supply.

6. Proforma invoice for electric

motor/oil engine, pump sets

and accessories.

7. Estimate and plan for

construction of pump rooms.

8. Two copies of passport size

photographs of the

applicant.

9. No objection certificate from

the Sale Ground Water

Directorate in case for

purchase of pumpsets as

per guidelines in force in

respective states /Regions.

10.Authorisation to pay the

amount to the dealer.

11.Registered mortgage or

Regd. Memorandum of

Deposit of title deeds or

equitable mortgage as the

case may be.

Loans for Sinking and Deepening of

Well

1.Application duly filled in Agri 2

and Agri 15 (for sinking well) or Agri

3 and Agri 15 (for repairs to well).

2. Chitta and Adangal duly signed

by the Village Officer showing the

survey number and extent of dry and

wet land, land revenue, crops raised

etc.

3. No due certificate from Co-

operative society/Land

Development Bank.

4. Valuation Report on the land by

the village officer when collateral

security obtained.

5. Detailed estimate and plans for the

various works proposed from

qualified engineer.

6. No objection certificate from the

State Ground Water Directorate as

per guidelines in force in respective

states/Region.

7. Regd. Mortgage of land or Regd.

Memorandum of deposit of title

deeds or equitable mortgage as the

case may be.

Loans for Land Development/

Reclamation

1. Application duly filled in Agri 9

and Agri 15.

2. Chitta and Adangal Extract

showing the Survey numbers

and extent of dry and wet lands,

land revenue crops raised etc

duly signed by the village

officer.

3. Valuation Report on the land by

village officer when collateral

security obtained.

4. No due certificate from Co-

operative Society/Land

Development Bank.

5. Detailed estimate and plan for

the works proposed from a

qualified engineer.

6. Feasibility certificate from the

Agricultural / Irrigation Engineer

or Agricultura Officer of the

State Govt.

7. Regd. Mortgage of Land or

Regd. Memorandum of deposit

of title deeds or equitable

mortgage as the case may be.

8. Soil Test and water analysis

reports from Soil Testing

Laboratory in case of

reclamation.

Loans for Purchase of Tractors

Trailers and Agricultural

Implements

1. Application duly filled in Agri 10

and Agri 15.

2. Chitta and Adangal Extract

showing the Survey number

and extent of dry and wet land,

revenue crops raised etc signed

by the village officer.

3. No due certificate from the Co-

operative Society Land

Development Bank.

4. Valuation Report on the land of

the village officer when

collateral security is obtained.

5. Two copies of passport size

photographs of the applicant.

6. Profoma invoice of the tractor /

power tiller implements / trailer.

7. Allotment letter from the

supplier.

8. Comprehensive insurance of

the tractor / power tiller and

trailer with the Bank clause.

9. An undated sale letter signed by

the borrower in PL 7A.

10. Incorporation of Banks lien as

financiers in the Registration

Certificate (R.C.) book of the

tractor / power tiller.

11.Regd. Mortgage of land or

Regd. Memorandum of deposit

of title deed or equitable

mortgage as the case may be.

Advance to Dairy Development.

1. Application duly filled in Agri 7

and Agri 15.

2. Two copies of passport size

photographs of the borrower.

3. Plan and estimate for the

construction of cattle shed.

4. Proforma invoice for dairy

equipments / utensils to be

purchased if any

5. Copy of village record duly

signed by the village officer for

the landed property owned by

the applicant including the land

in which the dairy will be

located.

6. Valuation certificate for the

property offered as security.

7. Letter of undertaking from Co-

operative Milk Supply / Mill

Union/ Dairy project / Dairy

Development Corporation

agreeing to purchase the milk

from the applicant and to remit

the milk proceeds direct to our

branch.

8. Regd. Mortgage or Regd.

Memorandum of deposit of the

title deeds as the case may be.

9. Certificate from veterinary Asst.

Surgeon on valuation, age and

health of the animals.

10.Comprehensive insurance with

Bank’s Clause under Cattle

Insurance Scheme.

Advance to Poultry Farming

1. Application duly filled in Agri 8

and Agri 15.

2. Regd. Mortgage of land and

other immovable property or

Regd. Memorandum of deposit

of title deeds as the case may

be or equitable mortgage.

3. Two passport size photographs

of the borrower.

4. Insurance of the shed against

fire

5. Plan and estimate for the

construction of poultry shed, if

loan is required for construction.

6. Proforma invoice for poultry

cages, equipments, birds feeds

etc.

7. Copy of village record duly

signed by Village Officer for the

property in which the poultry is

located.

8. Valuation report of the property

offered as security.

Advance to Sheep Development /

Piggery

1. Application duly filled in Agri 7

and Agri 15

2. Two copies of passport size

photographs of the borrower

3. Copy of village record duly

signed by the village officer for

the landed property owned by

the applicant

4. Valuation Certificate for the

property offered as security

5. Regd. or equitable mortgage of

property or Regd. Memorandum

of deposit of titile deeds as the

case may be

6. No due certificate from the Land

Development Bank / Village

Agriculture Credit Society

7. Insurance of Sheep under

Livestock Insurance Scheme

Advances to Fisheries Development

1. Application duly filled in Agri 18

and Agri 15.

2. Technical feasibility report from

the fisheries Department

showing the availability of

catches in the area, suitability of

the vessel and engine,

applicant’s competence etc.

3. Proforma invoice for supply of

hull, marine engine and

accessories from established

boat building yards /

manufacturers / dealers

indicating the period required

for supply.

4. Certificate on valuation of

immovable property offered as

security.

5. Reports on the worth of

guarantors.

6. Where the Govt. Assistance for

margin money is sought or

where any subsidy is available

from Govt. the application

should be recommended by the

Fisheries Department of the

State.

7. Regd. Mortgage of immovable

property or Regd. Memorandum

of deposit of the title deeds or

equitable mortgage as the case

may be.

8. Registration of bank’s charge

with Port Authorities.

9. Registration of vessel with

MPEDA.

10.Comprehensive insurance of

the boat with Bank’s clause.

Advance of Gobar Gas Plants

1. Application duly filled in Agri 11

and Agri 15

2. Branch Manager’s inspection

report on the site where the

applicant proposes to install the

gas plant.

3. Estimate with break up of

various costs and feasibility

certificate from Technical staff

of Khadi commission / Board /

State Govt.

4. Registered or equitable

mortgage or Regd.

Memorandum of deposit of title

deeds as the case may be

5. Authorisation letter in favour of

the branch to receive the

subsidy direct from the

sponsoring authority.

6. No due certificate from the

village Co-operative Credit

society / Land Development

Bank concerned and any other

Bank, financing in the area.

7. Village official’s certificate on

the value of land when collateral

security is obtained.

8. Two copies of passport size

photographs of the applicant.

For other type of agricultural

advances and for other minor

agricultural advance please

refer to the “Guidelines and

Norms for Agricultural Financing

– 1992 Edition”.

Wherever Regd. Memorandum of

deposit title deeds are executed the

same should be executed in F-417.

In cases of advance under agriculture

where registered mortgage of lands is

one of the conditions, mortgage should

be executed by the borrowed /s in F

512.

Wherever F512 has been obtained

and registered with the Sub registrar,

Branch need not obtain documents

afresh whenever loans are sanctioned

to the same borrower. The following

instructions should be followed.

1. Do not close the cash credit

accounts, but keep a nominal

balance (credit balance) after

adjustment of the seasonal

advance.

2. Though the account is treated

as cash credit, do not issue

cheque book. While effecting

payment, obtain the signature

of the borrower on the reverse

of the debit cash voucher duly

stamped.

3. Whenever there is an

enhancement in the limit obtain

DPN and hypothecation deed

as well as guarantee for the

amount of enhancement. In

case of registered mortgage a

supplementary deed has to be

drafted and registered. Similarly

in case of equitable mortgage a

supplementary narration has to

be made in the Title Deeds

Deposit register and F 379 A

should be obtained.

Personal Loans

1.Ensure

a. Applicants are salaried

individuals, professionals and self

employed persons with steady

income.

b. Loan is for purchase of new

items such as radio cycle, wooden

and metal furniture, sewing

machine, electric fan, cooker, wall

clock, water heater, washing

machine, cotton mattresses, tape

recorder, wet grinder, sofa-cum-

bed, scooter, motor cycle,

refrigerator, radio-gram, television,

gas stove including cylinder)

computers, fax/xerox machines,

VCR etc.

c. Applicant has a stable income

with reasonable prospects of its

continuance during the term of the

loan.

d. Applicant’s age is not over 50

years. In case the applicant is aged

over 50, a suitable guarantee or

collateral security by way of Life

Insurance Policy will be required.

2. Satisfy about the integrity, ability

to meet his commitments,

character, home and office

environment etc.

3. No second loan is granted for

item already purchased.

4. No second loan is ordinarily

granted when one loan is

outstanding.

5. Obtain the application form in

duplicate (PL2).

6. Interview the borrower.

Consider the guarantee. Guarantor

should be of higher financial status

than the borrower.

7. Forward ’Enquiry Form’ PL3 to

the referees, PL18 to his employer

and PL4 to the guarantor.

8. Obtain the Enquiry form duly

filled in.

9. Repayment period should not

exceed 30 months for consumer

durable. Entire loan should be

repaid either within 6 or 12 or

18 or 24 or 30 months. For

automobiles such as scooters &

motorcycles (not mopeds)

repayments up to 48 E.M.I.

could be considered in

deserving cases.

10.The maximum loan amount is

85% of the cost of the article or

5 times the gross emoluments,

whichever is lower for consumer

durable. For two wheelers 10

times of gross salary or 75% of

the cost of the vehicle

whichever is less

11. Total deductions inclusive of

the instalments of the loan

applied for should not exceed

50% of the applicant’s gross

income.

12. If the applicant is not a

customer of the Bank, ask him

to open a current or savings

account.

13.Ask the party to deposit the

applicable margin amount.

14.Enter particulars in Personal

Loan Ledger giving details of

documents taken, nature of

security, instalments received

outstanding balance etc. Also

record cost of article, margin,

discount, name of dealer etc.

15.From tables supplied to

Branches, find out the Discount

Amount for the period, amount

of DPN and monthly instalment.

16.Obtain Documents as

prescribed.

17.Ask the party to remit the

margin amount in his account.

18.Debit personal Loan account

with the loan Amount and

Discount. Credit SB/CD account

of the borrower with the

amount. Debit SB/CD account

of the borrower with the

discount amount Credit

Discount with the discount for

the half year. Credit Balance

amount or discount portion to

unexpired Discount. Debit the

cost of the article to SB/CD

account of the borrower and

Credit Bankers cheque Account

with the amount.

19.Write the Bankers Cheque,

forward the same along with the

covering letter (PL9) to the

dealer.

20. In case of members of staff

refer to appropriate discount

charts and margin as per latest

circular on the subject.

General formalities to be

complied with in case of

advances to Limited Companies.

1. Certified copies of the

Company’s Memorandum and

Articles of Association.

2. Certificate of incorporation.

3. Certificate of commencement

of business (in case of private

limited companies, this does

not arise)

4. Certified true copy of

Resolution passed by

Company’s Board of Directors

authorising borrowing from

Bank and naming committee

of Directors/Managing

Director/Managing

Agents/Secretaries and

Treasurers/Managers or any

other Principal Officers of the

Company to create Deeds

/Documents on behalf of the

company. Such a resolution

delegating the power to

borrow must specify the total

amount outstanding at any

one time upto which money

may be borrowed by the

delegates.

5. Certified extract from the files

of the registrar of Companies

after advice of registration has

been received and every year

thereafter a research

conducted by an official of the

Branch before renewal of

credit facility.

6. All copies of resolution

forwarded by a limited

company must be signed by

the Chairman of the Meeting

and countersigned by the

Secretary.

7. For all types of advances,

there should be an application

for the facility duly signed by

the authorised signatories.

8. Letter of acceptance of terms

and conditions for sanction of

limit should also be obtained

and signed by authorised

signatories.

9. Documents to be obtained in

duplicate (one stamped and

the other unstamped) duly

executed by the authorised

signatories of the company.

10. Attested copy of the

documents should be filed

along with Form 8 and Form

13 by the authorised

signatories of the company

with the Registrar of the

Companies within 30 days of

creation of charge. Branches

should note to file the

documents with the Registrar

of the Companies at the earlier

date as there is dictum in Law

that he “who comes first is first

in point of law.” and should not

wait to avail the time of 30

days allowed by the Act.

11. Charge to be registered in the

case of following securities

a. Debentures

b. Uncalled share capital

of the company

c. Immovable property

d. Book debts of the

company

e. Hypothecation of

merchandise,

vehicles, furniture,

fixtures etc of

movable types.

f. Floating charge on

the undertaking of

any property of the

company including

stock in trade.

g. A charge on calls

made but not paid.

h. A ship or any share

in a ship.

i. Good will, patent,

licence under patent,

trademark copyright,

licence under

copyright.

12. Following constitutes

modification of charge:

a. Variation in the rate of

interest, (to avoid filing of

modification on account of revision

in the interest rate, in the original

Form 8 and 13 itself, after

mentioning the interest rate

indicate that it is subject to revision

from time to time e.g 16% +

interest rate subject to revision by

the Bank from time to time.

b. Variation of margin for the loan

c. Additional securities

d. Increase or decrease in the limits

13. Modification of charge should

also be filed within 30 days of such

modification in Form No. 8 and

Form No. 13.

14. In case of public limited

companies and private limited

companies which are subsidiaries

of a public limited company, if the

borrowings exceed the paid up

capital and free reserve a

resolution authorising such an

excess has to be passed in

General Body Meeting of the

Company and certified copy of

such resolution should be obtained.

15. A certified copy of resolution

passed at a Meeting of Board of

Directors of the Company. Authorising

the advance, stating the terms and

conditions thereof, such as, limit,

security, margin, rate of Interest etc to

be obtained.

16. A floating charge is a charge on

the assets of the Company generally.

The assets which are continuously

changing in the course of business will

be covered by floating charge.

17.Negative lien should be

incorporated in a resoluting of the

board of directors and a certified copy

of the resolution should be obtained.

Resolution to be properly drafted to

suit each case.

18. Demand Promissory Note should

be obtained.

PART – V

SPECIMEN OF FORMATS

Section A

Documents with Distinctive Numbers

Rs.______________________________ Place . ……………………………… Date …………………………………

On Demand I/We …………………………………………..................................................

…………………………………………………………..….. jointly and severally promise

to pay to Indian Overseas Bank, or order, the Sum of Rupees …………………………….

.………………………………………. for value received together with interest thereon at

the rate of …..……………………………… per cent per annum from this date until pay-

ment in full with ……………………… rests or at such rates and rests as may be revised

by the Bank on its own or as per the instruction of the Reserve Bank of India from time to

time.

Incase of discrepancy between the English version and tran- lated version in other languages, English version shall prevail Stamp

F.12 A (Revised)

Rs.______________________________ Place . ……………………………… Date …………………………………

On Demand I/We …………………………………………..................................................

………………………………………………………….. …..jointly and severally promise

to pay to Indian Overseas Bank, or order the Sum of Rupees ……………………………

.………………………………………. for value received together with interest thereon at

the rate of ..……………………………… % per annum over/below the PTLR/PLR of

the from this date until payment in full with ……………………… rests or at such rates

and rests as may be revised by the Bank on its own or as per the instructions of the

Reserve Bank of India from time to time.

Incase of discrepancy between the English version and trans- lated version in other languages, English version shall prevail Stamp

F.14 A (Revised)

DPN (INTEREST RATE LINKED WITH LIBOR)

Place : Date :

On demand I / We …………………………………………………………………………

………………………………………………………………………………………………

promise to pay to Indian Overseas Bank of order, the sum of Rupees

…………………….(amount in foreign currency) for value received together with

interest thereon at the rate of……………… % p.a. over and above LIBOR (London Inter

Bank Offered Rate) from this date until payment in full with quarterly / half yearly roll

over basis depending upon the availability of the foreign currency for determination of

LIBOR or at such rates and rests / roll over as may be advised by the branch and / or as

per instructions of Reserve Bank of India, from time to time.

F. 15 Revenue Stamp

Revenue Stamp

Place ………………………

Date ……………….19…...

On demand I ………………………………………………………………………..

………………………………………………………………………………………………

promise to pay Indian Overseas Bank or order the sum of Rupees .………………………

……………………………………………………………………………………………

for value received.

Rs. …………………

PL 5

Stamp

Indian Overseas Bank

Letter of Hypothecation

Loan No ………………………………Amount Rs. …………………………….Name. …………………………………..

Indian Overseas Bank (hereinafter called “the Bank”) having at the request of ……………………….......………………………………………….. (nereinafter called “the Borrower”) granted a loan to the extent of Rupees ……………………… which loan the Borrower hereby undertakes to repay in ……………………………. monthly instalments of Rs………………………each the first of such instalments commencing on ………………………and to be secured by the article(s) which the borrower hereby hypothecates to the Bank. It is hereby agreed between the Bank and the Borrower as follows:

1. That in consideration of the Bank having granted the above said loan to the Borrower under the Bank’s Personal Loan Scheme with the express object of enabling the Borrower to purchase with the said loan amount, article/s described in the schedule annexed hereto (hereinafter called “the article/s” which expression shall be deemed to include all fittings, tools, parts and accessories whatsoever pertaining to the said article/s and all replacements or

additions made therein or thereto from time to time) and the Borrower having purchased the said article/s with the loan amounts and having the said article/s under his/her possession or control for his/her personal use at ……………….....hereby hypothecates to the Bank as security to the Bank for all moneys for the time being owing by the Borrower to the Bank or at any time or ultimately on the closing of the said loan account and for the payment of all debts and liabilities mentioned in the 16th Clause hereof.

2. That the Borrower shall not during the continuance of this Agreement, sell, dispose, pledge or otherwise charge or encumber the article/s which is/are the subject of this Agreement nor do or permit any act whereby the security herein before expressly given to the Bank shall be in anywise prejudicially affected.

3. That the Borrower hereby undertakes that he/she will not at any time so long as any money remains due in respect of the said loan account remove or cause or permit to be removed the said article/s from the premises where it/they is/are presently

kept as mentioned in the schedule without the consent in writing of the Bank having been obtained first and that the Borrower will not do any other act by means of which the Bank’s security over the said article/s may be in anywise impaired or affected.

4. That the Borrower hereby undertakes to keep the article/s in thorough working order and good condition and to make no alteration therein without the previous written consent of the Bank

5. That the Borrower hereby undertakes to indemnify the Bank against loss by reason of claims by third parties.

6. That the Borrower hereby agrees to notify the Bank at once of any change in his/her own address and the address of the premises to which the article’s may be moved.

7. That the borrower hereby empowers the Bank or anyone from time to time authorised by them in that behalf and without previous notice to the Borrower to enter the said premises or places of storage whatsoever,wherever situate, for the purpose of inspecting and taking account of the said article/s under hypothecation to the Bank.

8. That where so required by the Bank, the Borrower shall at all time during the continuance of

this agreement and so long as any money shall remain due and owing to the Bank by virtue hereof, insure and keep insured the article/s to the full extent of its/their value from time to time against fire and theft risks in some Insurance Office or Offices approved by the Bank and in the name of Bank and shall duly and punctually pay the premia payable in respect thereof at least one week before the same shall have become due or payable and shall hand over the policies of Insurance and the receipts for premia paid in respect thereof to the Bank and the Borrower agrees not to raise at any time any dispute as to the amount or nature of insurable interest of the Bank. If default shall be made in payment of such premia or in keeping the article/s so insured, then and in such case it shall be lawful for but not obligatory upon the Bank to pay such premia and to keep the article/s so insured and to recover from the Borrower the expenses incurred by the Bank with interest.

9. That all sums received under any such Insurance as aforesaid shall be applied to or towards the liquidation of the balance due to the Bank for time being and in the event of there being surplus the same shall be applied as provided by 16th Clause hereof.

10. That the Borrower hereby empowers the Bank or any one authorised by them; for the purpose so long as any

instalment remains due to the Bank in respect of the said loan account beyond the due date fixed for the payment of the said instalment to take possession of the said article/s and if necessary to break open any place of storage whatsoever, wherever situate, where the said articles/s is/are stored, with or without notice to the Borrower.

11. That this loan amount is inclusive of Rs…………………..being the discount at

……………….% per annum for a period of

……….months and that no further discount or interest save and except the penal interest referred to in the 13th Clause hereof would be charged and that no reduction in discount would be made for payment made by monthly instalments from time to time.

12. That not withstanding what has been stated hereinbefore the loan amount outstanding shall become payable on demand and in one lump sum and the banks shall also become entitled to possession of the article/s and to sell it/them and to apply the sale proceeds as stated in para 14 infra towards the loan in case:-

(a) The monthly instalment or part thereof is in arrear and left unpaid for one month from the date fixed for its payments.

(b) The borrower commits or suffers any breach of the conditions and obligation

stipulated to be observed and performed by him.

( c ) The borrower dies,becomes insolvent, or has a receiving order made against him/her allows the article to be seized in distress or execution or under any other process of law.

13. That the Borrower hereby agrees that if he/she fails to pay the monthly instalments punctually on or before the due dates, he/she shall be liable to pay a penalty of R.0.015 paise per each month or part thereof for every rupee which he/she has failed to pay on the due dates.

14. That in the event of the Borrowers failing to pay the loan instalment on the due date, the Bank reserves the right to sell the article/s apply the proceeds thereof towards the loan amount due and the Borrower hereby agrees to accept the account of the Bank for such sale or realisation signed by their Manager or Accountant or other duly authorised officer of the Bank as sufficient proof of the amount realised by the Bank and the costs, charges and expenses in such sale or realisation.

15. That if the net sum realized by such sale be insufficient to cover the balance then due to the Bank, the Bank shall be at liberty to apply any other money or moneys in the hands of the Bank standing to the credit of or belonging to the Borrower in or towards payment of the balance for the time being due to the Bank and in the event of there

being no such money or moneys as aforesaid in the hands of the Bank or in the event of such money or moneys being still insufficient of discharge in full of such balance the Borrower hereby promises and agrees forthwith on production to him/her of an account to be prepared and signed as in the 18th

clause hereof to pay any further balance which may be shown therein to be due by the Borrower provided always that nothing herein contained shall be deemed to negative, qualify or otherwise prejudicially affect the right of the Bank (which it is hereby expressly agreed the Bank shall have to recover from the Borrower, the balance for time being remaining due from the Borrower to the Bank upon the said loan account notwithstanding that the security may not have been realised.

16. That in the event of there being a surplus available out of the net proceeds of such sale after payment in full of the balance due to the Bank it shall be lawful for the Bank to apply the sale surplus together with any other money or moneys belonging to the Borrower for the time being in the hands of the bank in or under whatever accounts as far as the same shall extend in or towards payment or liquidation of any and all other moneys which shall be or become due from the Borrower whether solely or jointly with any other person, firm or Company to the Bank by way of Loans,

Discounted Bills, Letters of Credit, Guarantees, Charges or of any other demands legal or equitable which the Bank may have against the Borrower of which the law of set-off or mutual credit would in any case admit and whether the Borrower shall become or be adjudicated bankrupt or insolvent or be in liquidation or otherwise and interest thereon from the date on which any and all advance or advances in respect thereof shall have been made at the rate or respective rates at which the same shall have been so advanced.

17. That any surplus of the net proceeds of any such sale after payment of loan amount penal interest and all other moneys due by the Borrower to the Bank for or in respect of the said loan account or in anywise relating thereto all and other moneys due from him/her to the Bank on any account whatsoever as aforesaid, shall be paid to him/her by the Bank as and when he/she may so direct.

18. That the Borrower agrees to accept as conclusive proof of the correctness of any sum claimed to be due from him/her to the Bank under this Agreement and a statement of account made out from the books of the Bank and signed by the Accountant and or other duly authorised officer of the Bank without the production of any other voucher, document or paper.

19. That the Bank shall not be in any way liable or responsible for any damage or depreciation with the article/s for the time being hypothecated to the Bank and forming part of the security the subject of this Agreement or any part thereof may suffer or sustain on any account whatsoever while the same shall at any time come into possession of the Bank.

20. That any notice required to be served hereunder shall be in writing and shall be deemed to be sufficiently served if addressed to the Borrower at his/her (address registered in the Bank or in the event of no such address being registered, at his/her last known place of residence or business and left at such address or place or forwarded to him/her) by post

at the address or place aforesaid. A notice sent by post shall be deemed to have been served at the time when in due course of post it would be delivered at the address to which it is sent.

21. That the Borrower affirms that the security is free from any prior charge or lien or encumbrance whatsoever.

22. That the Borrower agrees to open and maintain with the Bank a current account or savings bank account and keep the account in sufficient funds and hereby authorises the Bank to debit the same with the amount of each instalment to the loan as and when it falls due.

In witness whereby the Borrower has hereunto set his/her hand this ………….............day of …………………………….. in the Christain year ………………….............

……………………………… Signature

(Schedule of Securities )

(Referred to in the foregoing agreement)

……………………………… Signature

INDIAN OVERSEAS BANK

Stamp

Indian Overseas Bank ………………..Branch

THIS DEED OF HYPOTHECATION executed on this day of ………………………………….. (Date)……………………….. at …………… (month) (Year)by ……………………………………….(hereinafter referred to as “the borrower” which expression shall mean and include his heirs and legal representatives) in favour of Indian Overseas Bank a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 and carrying on banking business amoung other places at ………………… hereinafter referred to as “the Bank” which expression shall mean and include its assigns and successors, witnesseth.

Whereas the Bank, at the request of the borrower has advanced/has agreed to advance a loan of Rs. ………………..………………………………………………………. (Rupees ……………….....Only) to the borrower in lumpsum/stages for the purchase of ……………………..(hereinafter called the vehicle) described in general terms in the schedule hereunder:

Whereas to secure the due payment of the said loan Rs. …………...

with interest/discount the borrower has agreed to create charge over the said vehicle in favour of the Bank.

Now This Deed Witnesseth:-

1. In consideration of the sum of Rs.…………………….. (Rupees …………………………….. only)

advanced by the bank to the borrower, the borrower hereby hypothecates and charges the said vehicle in favour of the Bank to form and remain as security for the due repayment to the Bank of the money advanced with interest and incidental costs and charges.

2. The borrower hereby undertakes to repay the said loan in equal instalments of Rs. ,,,,,,,,,,,,,,,,,,,,,,,,,,,

each the first of such instalment payment shall commence from …………… 19 …………

3. a) This loan amount is inclusive of Rs. …………………….. being the discount at ……………………………………… % per annum for a period of …………months. The rate of discount and interest is subject to the revision as per the instructions of the Reserve Bank of India received from time to time and/or as per the Bank rules. The borrower

agrees that if he fails to pay the instalments punctually on or before the due date, he shall be liable to pay a penalty of 1.5 paise per each month or part thereof for every rupee which he failed to pay on the due dates.

3. b) The borrower shall, so long as the said loan or any part thereof remains unpaid to the Bank, pay interest at the rate of …………… % over Prime lending rate of the bank or at such other rate as may be notified by the Bank to the Borrower from time to time rising and failing therewith calculates respectively on the daily balance of the amount due with quaraterty rests, on the last days of March, June, September and December each year and pay such interest within seven days from the date from which it falls due for payment of any of the instalments either of the principal or interest mentioned above, the Bank shall be entitled to charge interest at …………….. % per annum over the rate mentioned in the preceding para on the amount of such default from the date of default all payment or realisation of such defaulted principal or interest.

Clause 3 (a) will be applicable to personal loan and Clause 3 (b) will be applicable to Term Loan-Delete the inapplicable portion depending upon whether the loan is granted as Personal Loan or Term Loan)

4. In the event of default of payment of any one instalment as aforesaid the Bank shall be at liberty, through it is not obligatory, to demand the entire loan amount immediately. The bank shall however have discretion to call for the entire

amount at any time notwithstanding the Bank’s acceptance for allowing the borrower to pay the due instalments.

5. The borrower hereby declare and assures the Bank that the said Vehicle is his absolute property and is not subject to any hire purchase agreement or charge in favour of any other person.

6. At all times during the continuance of this agreement the borrower undertakes to maintain and to keep in good condition and working order the said vehicle and if necessary (with the written permission of the Bank) replace the said vehicle and in that event the charge created by this instrument shall attach itself to the replaced vehicle.

7. The borrower further undertakes to pay regularly all the rates and taxes on the said vehicle as well as the Insurance Premia and file the receipts or sufficient proof thereof with the bank.

8. If the borrower neglects or refuses to pay such rates and taxes on the said vehicle or to effect such insurance or keep the same in force by paying such premia, the Bank may pay (through not obligatory on its part) such rates or taxes or effect such insurance of pay such Insurance premia and all such expenses incurred by the Bank shall be recovered from the borrower as if they formed part of the money advanced to him by

the Bank and the security shall extent to such payment made by the Bank.

9. The borrower hereby undertakes not to create any further charge over the said vehicle other than the charge created in favour of the Bank under this instrument without the written permission of the Bank.

10. All moneys received under the insurance effected in pursuance of this agreement of the said vehicle shall at the option of the Bank be applied EITHER in or towards the payment of the money hereby secured OR in or towards payment or replacing the said vehicle in respect of which such Insurance money was received.

11. The borrower hereby empowers the Bank of anyone from time to time authorised by them on that behalf without previous notice to the borrowers to enter the said premises for the purpose of inspecting the said vehicle described hereunder and shall, when required by the Bank give full particulars to the Bank of the hypothecated vehicle.

12. The borrower shall, if required by the Bank, have the name of the Bank written on any part of the vehicle to indicate that the vehicle is under hypothecation to the Bank.

13. The borrower may, at any time, pay to the Bank, any sum of not less than Rs.50/- on account of

the moneys hereby secured and that all sums so paid shall be applied first, in reduction or payment of interest, costs and charge than due and then in reduction or payment of the principal amount hereby secured.

14. The borrower hereby agrees and declares that in default of the payment of money advanced,or demed to be advanced on demand by the Bank or in default of condition set out hereinabove, the Bank shall have power without intervention of the Court to take possession of the said vehicle and sell the said vehicle either by public auction or by private sale with or without notice and to realise the amount due to the Bank from such sale proceeds after defraying the necessary expenses reserving its right to proceed against the borrower personally for shortfall, if any.

15. In the event to such sale or realisation, the borrower agrees to accept the account of the Bank for such sale or realisation signed by the Manager or Accountant or duly authorised officer of the Bank as sufficient proof of the amount realised by the Bank and costs and charges and expenses incurred in such sale or realisation.

16. The Bank shall not be in any way liable or responsible for any damage or depreciation which the said vehicle hypothecated to the Bank and subject of this agreement may suffer or sustain

on any account of whatsoever while the same shall at any time come into the possession of the Bank.

17. The borrower hereby undertakes to furnish to the Bank the details

of Engine Number and Chassis Number of the vehicle within 10 days from the date of acquisition/purchase of the vehicles.

18. The borrower hereby gives the assurance that the vehicle shall be driven only by an person duly qualified under the Motor Vehicle Act and that in all respects he will comply with all the terms and conditions of his Vehicle Insurance policy.

IN WITNESS WHEREOF the Borrower has signed and affixed his seal, if any, on the day and at the place first above written.

……………………………………….Signature of borrower

SCHEDULEGeneral description of the vehicle

No.

Engine No.

PL 7

Name of Manufacture

Make & Model

Chassis No.

Name of supplier or suppliers

Year of Manufacture

Tools & Plant

Signature of Borrower

ANNEXURE

To Place:

Indian Overseas Bank Date:

……………………………….. Branch

Reg: Vehicle Loan granted to me/us

Further to the Deed of Hypothecation dated ………………. executed by me/us. I we furnish the following details about the hypothecated vehicle.

Description --

Chassis No. –

Make & Model --

Engine No. –

Other details, if any --

This letter may be treated as part and parcel of the said Deed of Hypothecation.

Yours faithfully.

Signature of Borrower.

PL 7

The Manager Place :Indian Overseas Bank Date :

…………………………………….. Branch

Dear Sir,

Ref: Personal Loan No. ……………………………. For Rs. ……………………

A sum of Rs. …………………………… ( Rupees ……………………………….only ) has been advanced under Personal loan as per Demand Promissory Note/relevant document dated ……………………………………………………. executed by myself and …………………………………………… undertaking to repay the amount in equal monthly instalments spread over a period of ………………………………. months. I hereby irrevocably authorise you to recover the above such instalments and interest due thereon from my Saving Bank Account No …………………………. with your branch until the loan is completely liquidated notwithstanding any accidental loss, theft or damage to the article(s) purchased.

Further I authorise you to credit the proceeds of the above loan to my Current/Savings Bank Account with you. I also authorise you to pay ………………… to the debit of my Current/Savings Bank Account a sum of Rupees …………………….. being the cost of ……………….......... purchased from him/them with instructions to deliver the article(s) to me.

Yours faithfully,

Signature

Name : …………………………………………

Address : …………………………………………

.………………………………………...

.…………………………………………

………………………………………….

…………………………………………..

PL 8 (Revised)

From : Place :

Name : Date :

Roll No.:

To

The General ManagerIndian Overseas BankMadras – 600 002.

Dear Sir,

……………………………. Loan No …………………………….

A sum of Rs. ……………………. (Rupees ………………………………………only) was advanced as per Demand Promissory Note/ Relevant document dated …………………………….. executed by myself and ……………………………………..undertaking to repay the amount in equal monthly instalments spread over a period of ……………………….. moths. I hereby irrevocable authorise you to recover the above such instalments and interest due thereon from the salary payable to me every month beginning from ……………………. month’s salary until the loan is completely liquidated. Further, I would like to place on record that each appropriation made/to be made from my salary and/or gratuity shall be payment made by me and/or on my behalf for the purpose of Limitation Act.

Yours faithfully,

Signature

PL 8A (EH) (Revised)

Indian Overseas Bank ……………………….. Branch

HYPOTHECATION DEED TO BE EXECUTED BY THE GURARANTOR

THIS DEED OF HYPOTHECATION executed on this day of ………………by ……………………… (hereinafter referred to as the guarantor which expression shall mean and include his heirs, legal representatives) in favour of Indian Overseas Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking ) Act 1970 and carrying on banking business among other places at ……… …….. hereinafter referred to as “the Bank” which expression shall include its assigns and successors.

Now this Deed witnesseth.

In consideration of your at my/our request making and agreeing to make loans and advances or otherwise giving credit to ………………. of …………………………(hereinafter referred to as “the borrower”) whether by advancing him/them money or by allowing him/them to overdraw his/their account or by granting to him/them an advance by way of Cash Credit or otherwise/from the ……………….. day of ……………………..until closed by you, I/We ………………….. guarantor/s herein hypothecate and charge the ……………………. described in the schedule hereunder in favour of the bank to remain as security for the due payment to the bank of the money advanced with interest and incidental costs.

Whereas the guarantor declares and assures the bank that the said ………………… is his absolute property and is not subject to any hire purchase agreement or charge in favour of any other person.

At all times during the continuance of this agreement the guarantor undertakes to maintain and to keep in good condition and working order the …………………………and if necessary with the written permission of the bank to replace the said……………...in that event the charge created by this instrument shall attach itself to the replaced ………………..

The guarantor undertakes at all times during the continuance of the security at his own expense and cost insure and keep insured in the name of the guarantor and the bank with an insurance company approved by the bank …………….. described hereunder against all risks including fire and accident for an amount of not less than Rs…………….

The guarantor further undertakes to pay regularly all the rates and taxes on the ……………………….. as well as the insurance premia and file the receipts as sufficient

Stamp

proof thereof with the bank.

It is further agreed that if the guarantor neglects or refuses to pay such rates and taxes on the ………………………… or to effect such insurance or keep the same in force by paying such premia, the bank may pay (though not obligatory on its part) such rates or taxes or effect such insurance or pay such insurance premia and all such expenses incurred by the Bank shall be recovered from the guarantor as if they formed part of the money guaranteed by him and the security shall extend to such payments made by the Bank.

The guarantor hereby undertakes not to create any further charge over the said …………………………………………………… other than the charge created in favour of the Bank under this instrument without the written permission of the Bank.

……………………………………

All moneys received under the Insurance effected in pursuance of this agreement on the said ……………….. shall at the option of the Bank be applied either in or towards the payment of the money secured or in or towards payment of replacing the ……………in respect of which such Insurance money was received.

The guarantor/s hereby empowers the Bank or any one from time to time authorised by them on that behalf without previous notice to the guarantor/s to enter the said premises for the purpose of inspecting the said …………. described hereunder and shall, when required by the Bank give full particulars to the Bank of the hypothecated …………..

The guarantor shall, if required by the Bank, have the name of the Bank written in any part of the vehicle to indicate that the vehicle under hypothecation to the Bank.

The guarantor hereby agrees and declares that in default of the payment by the borrower of money advanced, or deemed to be advanced on demand by the Bank or in default of condition set out therein above, the Bank shall have power, without the intervention of the Court to take possession of the ……………. described in the schedule hereunder and sell ……………………. either by public auction or by private sale with or without notice and to realise the amount due to the Bank from such sale proceeds after defraying the necessary expenses reserving its right to proceed against the guarantor personally for shortfall, if any.

In the event of such sale or realisation, the guarantor/s agree to accept the account of the Bank for such sale or realisation signed by the Manager or Accountant or duly Authorised Officer of the Bank as sufficient proof of the amount realised by the Bank and costs and expenses incurred in such sale or realisation.

The Bank shall not be in any way liable or responsible for damage or depreciation which the said ………………… hypothecated to the Bank and subject of this agreement may suffer or sustain on any account whatsoever while the same shall at any time come into the possession of the Bank.

The guarantor hereby gives the assurance that the said ……………….. (vehicle) shall be driven only by a person duly qualified under the Motor Vehicles Act and that in all respects he will comply with all the terms and conditions of his Vehicles Insurance Policy.

SCHEDULE

No.

Engine No.

Make & Model

Chassis No.

Accessories

Year of Manufacture

Tools & Plant

In witness where of the guarantor has signed and affixed his seal the ……………day ………………….. month and year first above written.

…………………………………..Signature

PL 11

Indian Overseas Bank

Stamp

…………………………….

…………………… 19 …….

Dear Sirs,

I/We beg to enclose an On Demand Promissory Note for Rs. …………. (Rupees …………………………………………………………… ) signed by me/us which is given to you as security for the repayment of any overdraft/cash credit or any other credit facility which is at present outstanding in my/our name and also for the repayment of any overdraft/cash credit or any other credit facility to the extent of Rs. ……………………...(Rupees ……………………………………………………………………………………………) which I /We may avail of hereafter and the said Promissory Note is to be a security to you for the repayment of the ultimate balance or sum including interest and expenses remaining unpaid on the overdraft/cash credit or any other credit facility and I am/we are to remain liable on the Promissory Note not withstanding the fact that by payments made into the account of the overdraft/cash credit or any other credit facility from time to time the said overdraft/cash credit or any other credit facility may from time to time be reduced or extinguished or even that the balance of the said account may be at credit.

Yours faithfully,

Signature

In case of any discrepancy between the English version and translated Version in other languages. English version shall prevail.

F 16

APPLICATION FOR FINANCIAL ASSISTANCE AGAINST SECURITY OF TERM

DEPOSITS

From ………………………………… ………………………………... …………………………………

ToThe ManagerIndian Overseas Bank

………………………………. Branch

I/We …………………………….…………………………………………..request you to extend me/us financial assistance by way of loan/overdraft/cash credit/letter of Guarantee/Letter of Credit for a sum of or upto a limit of Rs. …………………………………………..(Rupees ………………………………...…………………………………………)against the security of undermentioned term deposit(s) which are offered by the depositors in consideration of the facility on the terms provided below:

1. Margin of ……………. % of the deposit amount shall be retained by the Bank.

2. Interest …………… % p.a.compounded quarterly/……. or at such other rests/rates as may be charged by the Bank from time to time shall be applied by the Bank at any of its offices in India or abroad and paid by me during the next quarter/ or period of rest.

Place ……………………..Date ……………19……….

3. For issuance of Bank Guarantee/letter of credit, commissions and interest as applicable per Bank’s rules shall be charged.

4. The loan will be repaid by me/us together with interest thereon in ………monthly ………. instalments starting from …………………

Please release the facility by:

i) Payment in cashii) Credit to my/our ………..

account No……… with you.

iii) by allowing drawings in my/our cash credit/current account.

iv) issue of the letter of Guarantee/Credit as per request.

Purpose : (i) …………………………….…………………………………………..

(ii) The loan amount is required for the benefit of the Minor (depositor) and it will be utilised for the same purpose.

Particulars of the Borrower(s)

Occupation : …………………………………………………………………

Social Status : …………………………………………………………………(SC/ST/BC etc.)

Religion : ………………………………………………………………….

Strike out whichever is not applicable. Signature(s) of Applicant(s)

60 H

LETTER OF AUTHORITY CUM UNDERTAKING SCHEDULE OF TERM DEPOSIT

LODGED

Deposit Receipt/ Name of the Date Rate of Amount/ Date of A/C No. Depositor(s) Issued Interest balance Maturity

I/We ……………………………………………………………………………….

(Name of Depositor(s))

tender herewith the Pass Book/Discharged Deposit Receipt(s) relating to the

above mentioned term deposit(s) standing in my/our names(s) and I/we hereby

authorise the bank to hold it/them as security for all moneys now owing or which

shall at any time hereafter be owing from me/us/Sri/Smt/M/s

………………………………………………………………………………………………

(Name of the Borrower)

…………………………………………………………………….

Signature of Depositor(s)

60 H

In consideration of the grant or continuation of the facilities to the

depositor and/or the third party, I/We agree with the Bank as follows :

1. I/We hereby authorise the bank to hold the deposits(s) under lien to the bank as security for the repayment of moneys that may become due to the bank at any of its offices in India or abroad on account of balance in the loan/overdraft/cash credit account and/or on account of the dues under the Letter of Guarantee/Letter of Credit including interest, commission, cost, charges, expenses etc., thereon.

2. The Lien/charge hereby created by me/us over the said deposit(s) held by the bank will be available as a continuing security even if the overdraft cash credit runs into credit or the balance is reduced or extinguished at any time or from time to time. I/We am/are willing to be personally liable for any balance that may become due to the bank at any of its offices in India or abroad on account of the dues under the Letter of Guarantee or Letter of Credit or for any ultimate balance that may become due to the bank at any of its offices in India or abroad in the overdraft/cash/credit/loan or any other account whatsoever from time to time.

3. Notwithstanding the above, in case, where term deposit is withdrawn before stipulated period (Presently ……………… days/months), interest on the above facility can be charged as applicable to such facility at the

rates as may be fixed by Reserve Bank of India from time to time.

4. I/We irrevocably authorise the bank to appropriate the balance in the above deposit(s) for the repayment of the outstanding balance or any claim on account of Guarantee(s) invoked or Letter of Credit issued by you including interest, commission, cost, charges, expenses etc. on any account whatsoever even before the maturity of the deposit(s), paying interest on such deposits as per Bank’s rules for premature withdrawals and pay/credit only the balance, if any, to my/our account.

5. I/We further authorise the bank to apply the proceeds of the above deposit(s) on it/their due dates) towards adjustment of advance/facility dues against Guarantee claims setlled or payment made on account of Letter of Credit issued by the bank at any of its offices in India or abroad that may then remain unadjusted including interest, charges, etc. thereon.

6. I/We further authorise the bank to automatically renew for a similar period the deposit(s) on its/their due date(s), when the advance/limit secured by the deposit(s) are continued beyond the due date(s) of the deposit(s) and to hold such renewed deposit(s) as continuing security for all outstanding account, including interest, commission, cost, charges, expenses, etc. payable by me/us in any of

my/our account(s) or account(s) of third party borrower mentioned hereinbefore.

7. I/We authorise the bank to receive the interest accrued on deposit(s) from time to time as and when it becomes payable and appropriate such interest to the loan/overdraft/cash credit account/dues against guarantee claims settled/payment made on account of letter of credit or towards arrears of interest or other charge due in the borrowal account(s).

8. I/We undertake to pay the periodic interest charged to the loan/overdraft/cash credit account or any other dues arising out of letter of guarantee/letter of credit etc.

9. I/We hereby undertake not to call back the deposit(s) until my/our liability to the bank at any of its offices in India or abroad on account of the Bank Guarantee(s)/Letter(s) of Credit/Loan/Cash Credit/overdraft account or any other facility extended to me/us/borrower stands fully adjusted.

10. I/We hereby agree that in the event of my/our borrower requiring the bank at any of its offices in India or abroad to

advance any loan/overdraft/cash credit/Letter of Guarantee/Letter of Credit facilities and/or extended financial facilities at any time hereafter and the bank granting/extending the facility, it is hereby understood and accepted that such facilities were extended on the basis of this Letter of authority and the bank may hold the above deposit receipt(s) outstanding Credit Balance in the aforesaid accounts) including interest accrued thereon as security for repayment of all or any amounts that may be outstanding at any time and from time to time, apart from my/our personal liability until this letter is cancelled, by the bank and/or is returned to me/ us duly cancelled, after I/We comply with all the requirements as may be required by the bank.

11. Notwithstanding anything to the contrary contained herein before or in any agreement or otherwise, it is specifically agreed that the bank shall always be entitled to have the Bank’s right of general lien/set off on the above deposit(s) against any of my/our liability as borrower or guarantor. The lien hereby created shall not in any way affect or prejudice the bank’s lien which the bank shall always be entitled to exercise.

…………………………………………………………..Signature of Depositor(s)

Place …………………………………… Date ………………………

(In case of any discrepancy between the English version and translated version in other languages English version shall prevail.)

60 H

Place ………………………….Date ………………………….

The Manager Indian Overseas Bank…………………………………..

Dear Sir,

SECURTIY DELIVERY LETTER(Government & Authorised Securities)

Please take delivery of the under noted securities which have been endorsed by me/us in the name of the Bank and hold them as security for all moneys now owing or which shall

at any time hereafter be owing from me/ us ……………………………………... …………………………………………………………………………………………..

(Name of borrower)…………………………………………………………. in any manner whatsoever.

Interest on the securities may be credited as and when it falls due to my/our …….. …........................................................................................... account.

Yours faithfully,

Signature

F.64

Indian Overseas Bank ………………………………………. Branch

Account No …………………………………..

Ledger No ……………………………………

Folio No ……………………………………...

MEMORANDUM OF SECURITIES

DEPOSITED with Indian Overseas Bank ……………………………………………. on account of ………………………………………………………………………….. ( Name of party).......................................................................................................................................... on the ………………………20…….

Particulars Amount

Deputy Manager Manager

F.64(A)

The ManagerIndian Overseas Bank…………………………………… …………….20…….

SECURITY SURVIVORSHIP FORM

Dear Sir,

With reference to the securities standing in your books in our joint names at present, we shall be obliged if you will hold, with benefit of survivorship, all securities which are now or which may hereafter be deposited in these joint names.

Yours faithfully,

---------------------------------------------

--------------------------------------------- Each person to sign here

---------------------------------------------

---------------------------------------------

F.64 C

TRUST RECEIPT

Received, upon the trust hereinafter mentioned, from Indian Overseas Bank the following goods and merchandise, the property of the said Bank specified in the Bill of Lading as follows:

Date Vessel Marks and Nos. Merchandise

and in consideration thereof, I/we hereby agree to hold the said goods in trust for the said Bank, and as its property, with liberty to sell the same for its account, but without authority to make any other disposition whatever of the said goods or any part thereof (or the proceeds thereof) either by way of conditional sale, pledge or otherwise.

In case of sale, I/we further agree to hand the proceeds, as soon as received, to Indian Overseas Bank to apply against acceptance of …………… under the terms of Credit No ………….. dated …………….. issued for my/our account and for the payment of any other indebtedness of mine/ours to Indian Overseas Bank.

I/We agree to keep the said goods insured to their full value against fire, the sum insured to be payable in case of loss to Indian Overseas Bank, with the understanding that the Bank is not to be chargeable with the storage, Premium of Insurance or any other expenses incurred on the said goods.

I/We further agree that no failure of the Bank to take advantage of any current failure or omission on my/our part to carry out fully and of the provisions of this or any similar receipt or agreement, or of the agreement, under which Indian Overseas Bank, issued the Letter of Credit under which the said goods were purchased, shall be deemed to be a waiver by Indian Overseas Bank, of any of its rights or remedies under either of

the said papers, unless the said waiver shall be in writing endorsed hereon and signed by Indian Overseas Bank.

Indian Overseas Bank, may at any time cancel this trust and take possession of the said goods or of the proceeds of such of the same as may then have been sold, wherever the said goods or proceeds may then be found; and in the event of any suspension or failure, or assignment for the benefit of creditors, on my/our part or filing of any petition in bankruptcy by or against

Dated ………………………..

F. 65

me/us, of the non-fulfilment of any obligations or of the non-payment at maturity of any acceptance made by me/us under the said credit or under any other credit issued by Indian Overseas Bank, on my/our account or of any indebtedness on my/our part to the said Bank all obligations, acceptance, indebtedness and liabilities whatsoever shall hereupon (with or without notice) mature and become due and payable.

………………………………………

Signature

Stamp

Indian Overseas Bank

Cable : Telex :

IrrevocableDocumentary Credit

In continuation of our cable/telex dated

Expiry Date :

Place of presentation

Number:

Place and date of issue

APPLICANT BENEFICIARY

ADVISING BANK REFERENCE NO. Amount

in figures

in words

Partial despatch allowed not allowed

Transhipment allowed not allowed

Credit available with Nominated Bank :

by payment at sight by deferred payment at by acceptance of drafts at by negotiation

Against the documents details herein :

and beneficiary’s draft(s) drawn on :

Shipment/Despatch as defined in UCP 500 Article 46From :For transportation to :Not later than :

Covering shipment of ……………………………………………………………… …………………………………………… FOB C&F CIF

Signed commercial invoices, original plus copies, indicating import licence no ……… dated ……………. and certifying that the goods are as per order/indent/contract No ………………… dated …………… or as per Article 39 of UCP 500 notify ………………… Name and address of BankNotify ……………………….. Name and address of Applicant

Full act of clean on board/Marine/Ocean Bills of Lading, covering port to port shipment. Full set of mullimanded Transport document covering atleast two different modes of

transport.Airway Bill (original for consignor) in the case of despatch by Air, indicating FLIGHT

NUMBER & DATE.Transport document made out of the order of Indian Overseas Bank Transport Document endorsed in Blank Third party transport document not acceptable Freight prepaid Freight payable at destination Notify party …………………………………………………………………………

Transport documents must not be dated prior to the date of this credit.Short term/blank back transport documents are not acceptable.

In the case of despatch by post or courier Courier receipt Postal receipt Marine insurance/insurance policy issued to the beneficiary and blank endorsed for full

invoice value plus ………….. percent in the courier of the credit with claims payable in India.

Covering in the case of carriage by sea Covering in the case of despatch by airIndicate Cargo Clauses(A) Indicate Cargo Clauses (Air)Indicate Cargo Clauses (Air charges) Institute War Clauses (Cargo)Institute War Clauses( Air Cargo)

Insurance covered by Applicant locally.A certificate from the beneficiary certifying that they have cabled telexed, immediately

on shipment/despatch details of despatch as under to …………………………. quoting insurance policy No……………… dated ……… (Name & Address of the Insurance company)In the case of despatch by sea In the case of despatch by Air : 1. Name of the carrier 1. Name of the carrier2. Name of vessel 2. Flight number & Date3. Bill of lading number & Date 3. Airport of departure 4. Port of shipment/place of taking incharge 4. Airport of destination5. Port of discharge/place of final destination 5. Commodity6. CommodityAll Bank charges outside India are for account of beneficiary/ applicant.

For Indian Overseas BankThis document consists of …….. signed pages. ( Name Sig No.) (Name Sig No.)

F80B Authorised Signatures

Indian Overseas Bank

Cable Telex :

Continuation of irrevocable

Documentary credit

Number :

Place and date of issue :

APPLICANT BENEFICIARY

CERTIFICATES : Certificate from Lloyds surveyor that the carrying vessel is a conference

vessel on Lloyds classification and that the vessel is not more than 25 years old.

Certificate issued by ………………………………………………………… to the effect that the carrying vessel is a conference vessel and is registered with an approved classification society as per the Institute classification. Clause and class maintained equivalent to Loyods 100A 1 and the vessel is not more than 25 years old.

Preshipment inspection certificate issued by Society Generals De survelance S.A. Genova or their local accredited representatives of …………………….. certifying ……………………………………………………………………… (1) that goods conform to specification in indent/order/contract no …………. dated ………………… of ……………………………(2) that the carrying vessel called at the port of loading indicated in the bill of lading presented and that the merchandise indicated in the bill of lading have actually been loaded on board the carrying vessel(3) That the carrying vessel is not more than 25 years old.

Certificate of ……………………. Origin in duplicate issued by a Chamber of Commerce or attested by a Chamber of Commerce.

Analysis Certificate issued by ………………… certifying that ………….. Chemical Analysis certificate issued by ……………. certifying that ……….. Health certificate (specify details of certificate required) Others (specify)

OTHER DOCUMENTS : Packing List Weight List Measurement List

Document to be presented within ……….. days allot date of shipment but within the validity of credit.

All documents unless otherwise indicated must be attested in DUPLICATE. The number and date of this credit and name of our Bank should be mentioned on all date if called for, if the credit is available by negotiation, each presentation must be noted on reverse of this advice by the nominated bank. The original documents should be sent to use by first available REGISTERED AIRMAIL/COURIER and the rest of the documents by the next registered airmail.

We hereby issue this documentary credit in your favour. Except so far as otherwise expressly stated it is subject to UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 Revision) ICC, Parris, France publication No.500 and engages us in accordance with the terms thereof.

This documentary credit is subject to uniform rules for bank to bank reimbursement under documentary credits. I.C.C. Publication No.525.

DIRECTIONS FOR ADVISING/NEGOTIATING BANKWe request you to notify the credit to the beneficiary.

Without adding your confirmation adding your confirmation

REMIBURSEMENT INSTRUCTIONS Debit our…………………….. account number …………………….. with

you We have authorised

……………………………………………………………. to honour your claim to the debit of INDIAN OVERSEAS BANK ……….. Account No. ………….. with them. Negotiating Bank should advice us by authenticated telex/fax atleast two clear working days in advance before they make a claim, on the Reimbursing Bank, if the claim is not satisfied by them on first demand, we are to be informed by telex/cable.

Please advise us two clear working days in advance by an authenticated telex/cable message, details of the presentation. On receipt of such an advise we shall remit the value of the drawing for your account as indicated by you.

For drafts at usance terms we shall advise the due date on acceptance and remit the value of the drafts at maturity, for your account as indicated by you.

On receipt of Credit conforming documents at our counters, we shall remit the value for your account as indicating by you.

For Indian overseas Bank

(Name Sig.No.) (Name Sig.No.) Authorised Signature This document consists of ………………………… signed page.

F 80 B(010087) 500 P X 25 5/2 FO 5/96 CENTRAL OFFICE : 763, Anna Salai, Chennai – 600 002. India.

Date ofPresentation

Amount in Figures and Words Name Stamp andSignature of the Bank

Stamp

Indian Overseas Bank

Cable : Telex:

IrrevocableDocumentary Credit

In continuation of ourCable/telex dated

Expiry Date :

Place of presentation

Number :

Place and date of issueAPPLICANT BENEFICIARY

ADVISING BANK REFERENCE NO. Amount

In figures

In words

Partial despatch allowed not allowed

Transhipment allowed not allowed

Credit available with Nominated bank : by payment at sigh

by deferred payment at

by acceptance of drafts at

by negotiation

Against the documents detailed herein :

and beneficiary’s draft(s) drawn on:

Shipment/Despatch as defined in UCP 500 Article 46From :

For transportation to :

Not later than :

Covering Shipment of ……………………………………………………………………... ………………………………………………. EXW FCA CPT CIP Signed commercial invoices, original plus copies, certifying that the goods are as per order/indent/contract No ………………………………… dated ……………….. Consignee copy of Railway receipt. Airway Bill (original for consignor) in the case of despatch by Air, indicating FLIGHT NUMBER & DATE. Transport document made out to the order of Indian Overseas Bank Transport document endorsed in Blank Third party transport document not acceptable Freight prepaid Freight payable at destination Signed Delivery orders in duplicate made out in favour of Indian Overseas Bank or order evidencing receipt of goods at ………………………………………………… Transport documents must not be dated prior to the date of this credit. In the case of despatch by post or courier Courier receipt Postal receipt Insurance policy issued to the beneficiary and blank endorsed for full invoice value plus ………………….. percent. Covering in the case of carriage by Rail/Road Covering in the case of despatch by air Inland Transit Clauses (A) Institute Cargo Clauses (Air) Institut Strike Clauses (Air cargo) Strikes, Riots, Civil Commotion Clauses Institue War Clauses (Air Cargo)

Insurance covered by applicant A certificate from the beneficiary certifying that they have cabled telexed,

immediately on shipment/despatch details of despatch as under to…………………………. quoting insurance policy No……………… dated ……… (Name & Address of the Insurance company)In the case of despatch by Rail/Road In the case of despatch by Air : 1. Name of the carrier 1. Name of the carrier2. Railway Receipt No. or 2. Flight Number & Date

Lorry Receipt No. 3. Airport of departure3. Place of taking in charge 4. Airport of destination 4. 4. Place of final destination 5. Commodity

For Indian Overseas Bank

This document consists of …… signed pages. ( Name Sig No.) (Name Sig No.)

Authorised SignaturesF80D

Negotiation charges are for the account of the Beneficiary Applicant

Documents are to be presented within ………………….. days of the date of issuance of transport documents, but within the validity of the credit. The number and date of this credit and name of our bank should be mentioned on all drafts. Each presentation must be noted on this advice by the nominated bank. The documents are to be sent to us by Registered Post.

We hereby issue this documentary credit in your favour. Except so far as otherwise expressly stated it is subject to Uniform Customs & Practice for Documentary Credits (1983 Revision) ICC, Paris, France Publication No.500 and engages us in accordance with the terms thereof,

Reimbursement instructions :

On receipt of Credit Conforming documents at our counters, we shall remit the value of the drafts to the negotiating bank as per their instructions.

Details of the negotiations are to be advised to us by an authenticated telex/telegram. On receipt of documents we shall reimburse the negotiating bank as per their instructions.

For drafts at Usance terms drawn on the applicant, we shall advise the due date on acceptance and remit the value of the drafts at maturity, as per negotiating bank’s instructions.

for Indian Overseas Bank

(Name Sig.No.) (Name Sig.No.) Authorised Signatories

Date ofPresentation Ref. No. Amount in Words and Figures

Name, Stamp, andSignature of the Bank

REQUEST FOR LOAN ON THE SECURITY OF GOLD JEWELLERYThe Manager Place …………………………Indian Overseas Bank Date ………………………… …………………………… Branch Loan No ……………………...

Status of Borrower

SC / ST / BC (Tick whichever is applicable)

Dear Sir,

Please grant me a loan of Rs. ……………. repayable on or before …………… with interest ……………… % above R.B.I rate with a minimum of …………………. % and at such rate of interest as may be charged by the Bank from time to time without reference to me.

Signature of Borrower

Schedule of Jewellery Deposited

No. Description GrossWeight

Net Weight AdvanceRate

Value Remarks

I ……………………………………….. son of ………………………………… residing at ……………………………………………………………………………….. hereby declare, that the above jewels are my own property, which I can pledge or sell or dispose of as I like. Yours faithfully,

(Signature of Borrower)F 89E

I declare that I am an agriculturist holding ………………………………….. acres of land as per details given below and this loan is required for …………………………………… (Please specify the purpose)

Name ofVillage

anddistance

Survey No.

Extent of land owned

/ cultivated

In case of loan for meeting thecultivation expenses Loan

Amountapplied

Name of crop

Acreage Sowingseason

Harvesting season

Irrigated Rainfed

To be filled in the case of loans for agricultural purposes only.

Yours faithfully,

(Signature of Borrower)

APPRAISER’S CERTIFICATE

Indian Overseas Bank ……………………. Branch Date ………………….

Jewel Loan No ……………………………

Schedule of Jewellery Deposited as Security Name of Borrower ……………………

No. Description GrossWeight

NetWeight

FinenessIn carats

AdvanceRate

AdvanceValue

MarketValue

Remarks

The ornaments referred to above were appraised by me and valued at Rs. ………..(Rupees …………………………………………..) I guarantee the above weight, fineness and valuation.

Countersigned ……………………………. Signature of Appraiser (MANAGER)

89 E.

CONDITIONS ON WHICH LOANS ARE ADVANCED ON THE SECURITY OF ORNAMENTS AND JEWELLERY PLEDGED WITH

Indian Overseas Bank, Chennai and its Branches

1. Ornaments and jewellery pledged with the Bank to be kept at the risk of the borrower, in their ordinary safes, the bank exercising only the ordinary care of safe custody. The Bank shall not be liable in case of any damage to the articles by reason of accident.

2. The borrower shall maintain at least a margin of ………. % on gold ornaments and in case of fluctuations of price or accrual of interest the bank may demand repayment to cover the margin on one week’s notice.

3. The Bank shall be entitled to re-value the jewels at any time and if the borrower does not attend the Bank for the purpose on notice sent to him, the Bank may proceed to do the same in his absence.

4. The Bank shall not be bound to receive part-payment of the loan and delivery of jewellery can be obtained only on payment in full at principal, interest and costs.

5. The borrower shall arrange to repay the loan in full at the office of the Bank, on demand and in default of such payment the Bank will be entitled to sell the jewellery at the risk of the borrower either by public auction or by private contract without further notice to the borrower, In case of deficit the Bank will recover the same from the borrower.

6. A prepaid letter sent through the post duly addressed to the borrower at the address notified by him to the Bank shall be sufficient notice to him for any purpose.

7. Interest will be payable every quarter. A minimum of a week’s interest will be payable even if the loan is repaid earlier.

8. The Bank shall have a lien on the jewels in respect of any other sum of sums of money which the borrower may by liable to pay to the Bank either solely or jointly with other persons at any office of the Bank

9. The rules of the Bank for the time being relating to the pledge of jewels shall be binding on the borrower.

I/We have read the above conditions and will be bound by them in this transaction.

Signature of the borrower …………Address …………………………………………………………………..Date ………..19…….

Branch Manager’s Recommendation

A jewel loan of Rs. ………………… adhering to a scale of finance of Rs. ………………………………. per acre is sanctioned …………………..………………………………………(Please specify the due date / repayment schedule)

Signature of Manager.

To

Indian Overseas Bank …………………………….. Branch

Irrevocable Documentary Credit

Application

Date of Application

APPLICANT Branch Manager/First Line Manager’sRemarks and approval

ADVISING BANK : Expiry date and place for presentation of documents Expiry Date

Place for presentation Issue by (air) mail with brief advice by teletransmission (see UCP 500 Article 11) Issue by teletransmission ( see UCP 500 Article 11) Transferable Credit as per UCP 500 Article 48

BENEFICIARY

Confirmation of the Credit : not requested requested authorised if requested by beneficiary

Amount in figures and words ( Please use ISO currency codes)

Partial Shipments allowed not allowedCredit available with Nominated Bank

by payment at sight by deferred payment at by acceptance of drafts at by negotiation Against the documents detailed herein: and Beneficiary’s draft(s) drawn on :

Transhipment allowed not allowedPlease refer to UCP 500 Transport Articles for exceptions to this condition.

Insurance will be covered by usShipment as defined in UCP 500 Article 46

From :For transportation to :Not later than :Goods (Brief description without excessive details - see UCP 500 Article 5) Terms :

FAS CIF FOB Other Terms GFR as per INCOTERMS

Signed commercial invoice, original plus copies, invoice should indicate import Licence No ……….. dated ……….. and certify that goods are as per Order/Indent/Contract No …………. dated ………… Full set of Mulimodal Transport document covering atleast two different modes of transport. Full set clean on board Marine/Ocean Bills of Lading covering port to port shipment Airway Bill (original for the consignor) indicating Flight Number port to port shipment. Third party transport document not acceptable. Transport document to the order of Indian Overseas Bank Freight prepaid Freight payable at destination Notify party ………………………………………………………………………. Transport documents must be dated prior to the date of this credit. Short form/blank back transport documents are not acceptable. In the case of despatch by post or courier Courier Receipt Postal Receipt INSURANCE DOCUMENT Insurance policy issued to the beneficiary and blank endorsed for full invoice value plus ………….. % in the currency of the credit with claim payable in India. Covering in the case of carriage by sea: Covering in the case of despatch by air Institute Cargo clauses/(Air) Institute Cargo clauses (Air) Institute strike clauses (Air cargo) Institute War clauses (Cargo) Institute War clauses (Air cargo)

Insurance covered by me/us & relative cover note, policy or certificate of insurance enclosed. A certificate from the beneficiary that they have faxed/telexed, immediately on shipment/despatch to ……………………………………………………………….. quoting insurance/policy No ………………… dated ……………………… Fax No. Telex No. (Name & address of the insurance company)quoting Insurance Policy No. ……... dated ………. with details of shipment as under In case of carriage by sea In the case of despatch by Air :1. Name of the carrier 1. Name of the carrier2. Name of vessel 2. Flight Number & Date3. Bill of lading number & date of issue 3. Airport of departure 4. Port of shipment/place of taking of taking in charge 4. Airport of destination5. Port of discharge/place of final destination 5. Commodity 6. Commodity

CERTIFICTES:

Certificate from Lloyds surveyor that the carrying vessel is a conference vessel on Lloyds classification and that the vessel is not more than 25 years old.

Certificate issued by …………………………………………………………… to the effect that the carrying vessel is a conference vessel and is registered with an approved classification society as per the institute classification clause and class maintained equivalent to Lloyds 100A 1 and the vessel is not more than 25 years old.

Preshiment inspection certificate issued by Societe Generate De Survelliance S.A. Geneva or their local accredited representatives ………………………… certifying ………………………………………………………………….(1) that goods conform to specification in indent/order/contract No. ………..

dated ………………… of…………………..(2) that the carrying vessel called at the port of loading indicated in the bill of

lading, presented and that the merchandise indicated in the bill of adding have actually been loaded on board the carrying vessel.

(3) that the carrying vessel is not more than 25 years old. Transport documents must not indicate the place of final destination as being different from the port of discharge. (This will not apply in the case of multimodal transport document).

Invoices for amounts in excess of amounts drawn under the credit are not acceptable.

All bank charges outside India are for applicable beneficiary’s account refused by beneficiary the charges are for our account.

Certificate of …………… origin in duplicate issued by a chamber of Commerce or attested by a Chamber of commerce.

Analysis certificate issued by …………………… certifying that …………. Chemical Analysis Certificate issued by …………….certifying that ………

Health certificate, certificate issued by …………… certifying that ………… Others (specify)

OTHER DOCUMENTS:

Packing List Weight List Measurement ListDocuments are to be presented for PAYMENT/ACCEPTANCE/NEGOTIATION within…………………… days after the date of issuance of transport documents but within the validity of the credit. All documents unless otherwise indicated must be atleast in DUPLICATE. The number and date of the credit and the name of your bank should be mentioned on all drafts if called for. The original documents should be sent to you by COURIER/REGISTERED AIRMAIL and the rest of the documents by the next Registered Airmail.

This credit may be notified to the beneficiary by your branch/ agent/ correspondent Without adding their confirmation Adding their confirmation and authorise them to add their conformation, if requested by the beneficiary. I/We confirm that the goods described above are not covered b the negative

list of imports. We confirm that the goods are covered by the import licence No……………

dated ……….. and the Exchange control copy of this licence is enclosed.I/We enclose for your perusal :

(1) Order together with the order confirmation of overseas supplier OR(2) Proforma invoice of overseas supplier duly countersigned by us OR(3) Indent/Offer from overseas supplier or his authorised agent duly accepted by

us.We request you to issue our behalf and for our account your irrevocable Credit in accordance with the above instructions (marked (x) where appropriate). This credit will be subject to the Uniform Customs and Practice for Documentary Credits(1993 Revision, Publication No. 500 of the International Chamber of Commerce, Paris, France) insofar as they are applicable.

Authority and signature verified Authorised signature(Delete whichever is not applicable) Assistant Manager, I.O.B Importer’s Code No.

104 X

(To be stamped as an agreement in accordance with the Stamp Act in force in the State in which this document is executed. Not to be attested)

Indian Overseas Bank…………………………………………

Document Credit No. …………………………….. for ……………………….…In consideration of your opening this credit I/We hereby agree :

1. That you are hereby authorised to accept and/or pay all drafts drawn upon me/us/you/nominated bank stipulated to be drawn on, in the Documentary Credit pursuant hereto and accept the documents above described hereafter referred to as the said documents.

2. That I/we engage ourselves to provide you with cash funds to meet such drafts at or before maturity as you may require.

3. That you are hereby authorised to debit without previous notice to me/us the amounts of any payments made by you pursuant hereto and/or the amount of any drafts accepted by you at the time of such acceptance or before maturity to my/our current account with you.

4. To accept upon presentation and pay at maturity all drafts drawn on me/us/you/nominated bank pursuant hereto or drafts drawn upon me/us by you for settlement of the payment based upon the letter of credit or promissory notes made by me/us in compliance with your request. To pay on maturity/on the due date the value of the documents received by me/us released by you under the credit and you are hereby authorised to debit

without previous notice to me/us the amounts of payments made by you on the due date pursuant thereto, to my/our current account with you.

5. That the said documents and the merchandise covered thereby (fully insured) shall be held by you as collateral security for the repayment of the amount of all drafts drawn upon me/us/you/nominated bank pursuant hereto together with interest, commission and all charges and for the due acceptance and payment of drafts drawn hereunder.

6. That you have full discretionary power upon arrival of the goods, at my/our expense, risk and responsibility to have them warehoused in you name by employing clearing agents or other agents and insured against fire and burglary, but without obligation upon you to so warehouse and insure and you will be in no way responsible for any loss or damage entitled through your omission so to warehouse and in the event of my/our non-acceptance of any drafts drawn upon us pursuant thereto or our failing to repay on demand all moneys due by me/us to you from time to time

Stamp

hereunder or in case you deem the goods subject to the drafts, will considerably decrease in price, then without prejudice to any other rights or remedies to which you may be entitled, you are hereby authorised and given full discretionary power without notice to or further consent from me/us or any other person interested, pledge and/or sell the said goods either before or after arrival at destination and/or by public auction/private sale in one or more lots in such manner or at such times as you think fit and after deducting all expenses including commission connected therewith, to apply the net proceeds of any such sale in or towards the discharge of the moneys due from me/us to you and I/we undertake to pay you on demand the amount of any deficiency remaining after such sale together with all usual commission, charges and any other expenses whatsoever and interest as may be due.

7. That insurance shall be effected on the shipments to the full invoice value plus….. percent thereof, such insurance to be made available for your benefit by the deposit of the policies or certificate of insurance and in case of default your bank is at liberty to effect insurance thereon and the premium and expenses connected therewith I/We engage to pay. Such insurance shall be effected in our joint names by an insurance company to be approved by you and in the event of loss, the insurance moneys shall be paid to you and your

receipt shall be a good discharge thereof.

8. That in connection with 6 & 7 and generally for the purpose of implementing and realising your security I/We undertake to sign, obtain, execute and/or deliver any documents, deeds, licences, clearances or instruments which you may require.

…………………………Authorised Signatory

9. It is understood that our engagement to provide funds and indemnify you generally shall continue in force not-withstanding any changes in the individuals composing the respective firms or in the powers granted by the respective companies.

10. That it is at your sole discretion to claim payment of all drafts drawn pursuant hereto at your bills selling rate on the date payment is due from me/us unless exchange rate has been fixed by you earlier, either (a) in exercise of your option herein referred to or (b) under my/our exchange contracts with you, or at any official rate prescribed for such bills from time to time and also that it is at your sole option to fix the rate of exchange at any time during the currency of the credit or if I/we fail to make due payment to you of a sight bill on its presentation or a usance bill on the date of maturity, which is drawn or purported to be drawn under the credit and expressed to be payable in a foreign currency, then you shall be at liberty without prejudice to your rights

hereunder to crystallise my/our liability on the foreign currency bill by converting the foreign currency amount into Indian Rupees on the 10th day after the date of receipt of documents by you under the credit in the case of a sight bill remaining unpaid till then or on the date of maturity in the case of an usance bill or at any time after receipt of drafts negotiated under the credit as you may deem expedient, and the rate of exchange applicable to the payment by me/us in Indian Rupees shall be :

a. Your applicable bills selling rate shall be the rate prevailing on the

(i) date of payment by me/us ……………….. or

(ii) the date failing on the 10th day from the date of receipt of documents by you, under the credit in the case of sight bills or on the date of maturity in the case of usance bills. In case the 10th day or the due date falls on a holiday or a

Saturday, the bills selling rate prevailing on the next working day shall be applied to crystallise my/our liability.

(iii) The next working day when the relevant rate of exchange is quoted following the date on which the bills are received if the foreign currency liability is crystallised immediately on receipt of bills.

(b) the forward exchange contract rate in case a forward exchange contract has been booked by me/us with you.(‘c) the date of receipt of documents under the credit as registered in your record shall be conclusive and binding on me/us.(d) I/We confirm that crystallisation of my/our liability on the foreign currency bill by you as aforesaid and charging /payment of interest at a higher rate as under noted shall not be deemed to create any right in me/us to keep any bill unpaid when it is due and binding on me/us.

11. To pay :

(i) Your commission at your rates for opening the Letter of Credit.

(ii) Interest to you on the amount payable in respect of my/our liability under the credit at the rate of ………… % per annum with quarterly rests or at such rates and rests as may be revised by the Bank on its own or as per the instructions of the Reserve Bank of India, from time to time. Interest at the aforesaid rate shall be payable during the period from the date of payment/acceptance/negotiation of the bill by your branch/correspondent/nominated bank of the bill/documents under the credit up to and inclusive of the date of expiry of a period of 10 days from the receipt of documents by you or the date of crystallization of foreign currency liability as above, and thereafter at the penal rate of ………….. percent per annum with quarterly rests until payment/realisation or/at such other rate as may be revised by the bank, from time to time. In case of payment before maturity of usuance drafts, waiver of any interest from date of payment till the maturity date being optional on your part. If no rate of interest is specified in the above columns, interest shall apply as prescribed by RBI or by the Bank for advances to non priority sectors, from time to time till the date of expiry of a period of 10 days from receipt of documents or the date of crystallisation of Foreign Currency liability and thereafter at the rate of interest applicable for overdue advances.

(iii) The commission or handling charges as prescribed by FEDAI rules

from time to time presently at the rate of 0.15% on the amount of the bills irrespective of the fact whether the bill is retired within 10 days or later and in the case of foreign currency bills to be charged at the time of converting foreign currency liability into Indian rupees and an additional commission as prescribed by FEDAI rules from time to time presently at 0.25% on all bills which are drawn in Indian Rupees and on all bills drawn in a foreign currency, proceeds of which will not ordinarily be remitted abroad and on which the bank does not earn exchange by way of difference in rates.(iv) The charges that may be levied as per the Foreign Exchange Dealers Association of India Rules in force from time to time for any early/late delivery of the relevant foreign exchange / currency under the forward exchange contract if any, booked by me/us.(v) All charges, obligations and liabilities of any nature incurred by you or your correspondent/branches/nominated bank under or in connection with this credit.

12. That on no account shall any claim be made against the bank after delivery of the documents to me/us and/or retirement of the drafts by me/us.

13. That I/we open this credit entirely at my/our own risks and will honour all drafts presented even should the goods not arrive or be refused landing through any act of war or restriction imposed by Government Ordinance or legislation or orders.

14. That the Transmission of instructions under the above credit and the forwarding of documents are entirely at my/our risk.

15. That I/we undertake to fulfill all formalities prescribed by the relevant authorities from time to time.

16. To pay a cash margin of not less than ……… % and such additional margin as may be demanded in future.

17. That you or your branch / correspondent/nominated bank shall not be held responsible for genuineness or regularity of drafts and documents that may be negotiated under the credit and that I/we not only assume entire responsibility for all that you or your branch/correspondents/nominated bank may do, based upon the letter of credit where-under the beneficiary thereof applies to you or you branch / correspondents/nominated bank for the payment/acceptance/negotiation of a documentary bill of exchange in accordance with the provisions stipulated in the letter of credit but shall also make no objection to variations from provisions of the letter of credit which you or your branch / correspondents/nominated bank made at your or their discretion to conform to local regulations and laws in respect of the handling of exchange business of the place of the negotiation or commercial customs and practices thereof in accordance with the surrounding circumstances without notifying me or us.

18. That the transport documents themselves need only contain a general description of the relative goods and it will be sufficient if documents tendered under this credit taken as a whole contain the description required by this credit and that no responsibility is to attach to you or your branch /

correspondents/nominated bank as to the documents beyond seeing that they purport to be in order.

19. To hold you and your branches/correspondents/nominated bank harmless in respect of any loss or any damage that may arise in consequence of error or delay in transmission of you or your branch/correspondents/nominated banks message or misinterpretation thereof, damage to merchandise shipped or error relating thereto deficiency or defect therein or in the said documents and generally from any cause beyond your control.

20. That the bank shall not be answerable or liable for any damage arising out of shortage, theft, pilferage, deterioration, depreciation and other causes which the goods may suffer at the time of storages or releases or while in its possession or custody or in the possession or custody of its employees, agents, including clearing agents whether by accidential or willful wrong or fraud and that no responsibility of any kind shall attach to the Bank in respect of non/wrong delivery of the goods by clearing or other Agents/Employees of the Bank.

21. That the rights and powers conferred by this agreement are in addition and without prejudice securities you may now or hereafter hold for account.

22. That this credit may be amended and/or modified by you in your/absolute discretion, including for an increased limit, on my/our giving you, written instructions for the same and in such an event, such amendment, modification will be deemed to form part of this credit

application and will be governed by the terms hereof and I/we agree, covenant, record and confirm that I/we shall be bound by the same as if such amendment/ modification including the increased limit had originally constituted the terms of this credit.

23. That this agreement and all contracts arising out of it is and are to be construed according to the law of the place where this credit is applied for.

24. I/We undertake to submit to you the Exchange control copy of the Bills of Entry/Postal/Courier wrappers immediately after clearance of the goods but within three months from the date of remittance as per Exchange Control Regulations.

25. My/Our obligations and liability under this L.C. shall be construed to have arisen on the basis of this request for opening this credit, irrespective of the fact whether Bill of Exchange/draft is drawn on me/us/you/nominated bank or not. I/we unconditionally and irrevocably assure and undertake to provide funds to the Bank immediately on receipt of the documents by the bank or before the due date of instalments in case of deferred credit and the bank’s decision that my/our obligation under the LC has arisen shall be final and binding on me/us. We irrevocably and unconditionally further authorise you

including the confirming bank/Nominated bank/agent bank, whatever name be called/designated for making payment under the letter of credit opened at my/our request, to effect payment on you/their satisfaction and that the documents are in terms of the Letter of credit.

26.I f the drafts are required under this credit, I/we shall bear the cost of stamp duty, if any, and provide funds to meet it and on my/our default to do so, the cost of stamp duty and other expenses may be debited to my/our account.

27. I/we undertake to abide by the Foreign Exchange Dealers Association of India (FEDAI) Rules and pay the charges / interest rates as stipulated under the FEDAI Rules.

28. Except as otherwise expressly stated, this credit, shall be governed by the Uniform Customs and Practice for Documentary Credits (1993 Revision ) as contained in the International Chamber of Commerce Publication 500 and as amended from time to time.

Authorised Signatory

F104X

LETTER OF HYPOTHECATION

To Indian Overseas Bank

………………………………

1. As you may from time to time

(at my/our request) make

advances to me/us or for

my/our account and/or accept

a Bill or Bills of Exchange on

my/our account and/or

negotiate a Bill or Bills of

Exchange drawn or accepted

or endorsed by me/us against

goods and or merchandise

( hereinafter referred to as

goods) or shipping or other

documents and/or hold such

or any other Bills or Bills of

exchange and/or documents

for collection on my/our

account under lien to you or

otherwise it is agreed

between us that the

stipulations contained in this

letter shall be continuing and

ambulatory and shall apply

whether any such bill or bills,

goods and/or documents be

received by you from me/us or

from other parties and shall

bind the members of my/our

firm for the time being as if a

separate similar letter were

signed on the occasion of

each transaction by each and

every such member.

2. I/We authorise you or any of your Managers or any of your Agents or any of the holders of such goods and/or documents at any place, but not so as to make it imperative, to insure or arrange for the insurance of such goods as aforesaid from all or any risks of transit including loss by capture and also from loss by fire on share and to add the premiums and expenses of such insurance to amount chargeable to me/us and for the purpose of reimbursing yourselves, to take recourse upon such goods in priority to any other claims thereon and/or against me/us without prejudice to any claim against any parties to any Bill or Bills and also to sell or cause to be sold such goods or any portion thereof as may be necessary for payment of freight, insurance and other expenses. And I/we consent to the goods being warehoused at any wharf or warehouse selected either by you, or in case you offer no

objection by the Drawees or Acceptors of the Bills or the Consignees of goods.

3. I/We also authorise you as aforesaid to take conditional acceptance or acceptances to any Bill or Bills as a aforesaid to the effect that on payment thereof and of your charges and of any expenses incurred by you in respect thereof, the relative documents shall be delivered to the Drawees or Acceptors thereof and such authorisation shall be taken to extend to cases of acceptance for honour, subject nevertheless to the power hereinafter given in case the Drawees or Acceptors shall at any time or times suspend payment, become bankrupt or go into liquidation.

4. I/We further authorise you as aforesaid at any time to time to grant a partial delivery or partial deliveries of any goods to the Drawees and/or acceptors of any Bill or Bills of the consignees of any goods, or their representatives, or in the event of any default on the part of/or at the request of any of the aforementioned parties to any other person or persons, on payment of a proportionate amount of the invoice cost of such goods, or of the amount of such bill or bills of exchange drawn against the same or of the advances made by you.

5. I/We further authorise you as aforesaid on default being made in acceptance on presentation, or in payment at maturity, of any such Bill or Bills or in case of the Drawees or Acceptors of any Bill

or Bills, or consignees of goods at any time or times suspending payment, becoming bankrupt, or taking any steps whatever towards entering into liquidation or compromising or arranging with creditors, or in the case of advances against goods and/or shipping or other documents, upon my/our failure to pay on demand the amounts advanced together with all interest, including overdue interest as applicable from time to time commission and other charges and expenses thereon, to sell or cause to be sold all or any part of the goods at such times and places and in such manner as you may deem fit without responsibility to yourselves for the default of any warehouse-keeper, broker, auctioneer or other person employed by you for such purpose and without notice to me/us or any other person or persons and after deducting the usual merchants commission to which you are entitled and charges incurred, to apply the net proceeds in payment of such advances and/or such Bill or Bills and/or any debt of liability of mine/ours to you with interest thereon, and with re-exchanges and charges where payable, the balance, if any to be placed at your option against any other of my/our bills secured or otherwise, including bills and/or advances current and subject thereto to be accounted for to me/us. In case the net proceeds of such goods and/or insurance policies shall be insufficient to pay the amount of my/our

indebtedness to you (on any account whatsoever) including re-exchange and all charges I/we authorise you as aforesaid to draw on me/us at sight for the deficiency, or debit my/our account with such amount of delivery without prejudice nevertheless to any claim against any parties to any Bill or Bills or their estates for recovery of the same and I/we engage to honour such drafts on presentation in case of loss of goods or documents insured at any time I/we authorise you to realise the policy or policies and charge the same commission on the proceeds as upon a sale of goods and apply the net proceeds, after such deduction as aforesaid, in manner hereinbefore provided.

6. The receipt of goods and or documents by you shall not prejudice your rights on any Bill or bills in case of dishonour nor shall any recourse or proceedings taken thereon or your granting time to or entering into any composition or arrangement with any parties to such bill or bills prejudice or affect your title to such securities and it is also agreed that your rights against me/us as aforesaid shall not be prejudiced in any manner whatsoever owing to any such bill or bills not having been noted and/or protested in the event of dishonour by non-acceptance and / or non-payment.

7. I/we further authorise you as aforesaid, whether the aforesaid power-of-sale shall or shall not have arisen, at any time or times

to accept payment from the Drawees and/or acceptors of any Bill or Bills or the consignees of any goods, against delivery of goods and/or documents and furthermore I/we authorise you as aforesaid to allow a discount in consideration of such payment being made before maturity at the current rate of rebate allowed by the Exchange Banks.

8. It is understood and agreed that the account current with me/us in your books shall at all times be conclusive evidence of the amount owing by me/us to you from time to time.

9. This letter of hypothecation is retrospective in its action and is applicable to all current and future transactions and continues operative notwithstanding any alteration by death, retirement introduction of new partners or otherwise in the persons from time to time constituting our firm, or in the style under which the business is carried on from time to time. Notice of our desire to terminate the agreement embodied in this letter must be given in writing.

Dated …………….. this ………… day of ……………………………. Two Thousand and ………………. …………………………………….

……………………….Signature

HYPOTHECATION OF BOOK DEBTS

Stamp

Indian Overseas Bank (hereinafter

called ‘The Bank ‘ which

expression shall include its

successors and assigns) having

at the request of

……………………………………

… (hereinafter called “the

borrower” which expression shall

include its successors and

assigns) agreed to grant

accommodation to the Borrower

by way of Cash Credit under a

drawing limit of Rs………... on

the security hereof, it is agreed

as follows:

1. The Borrower doth hereby hypothecate and charge to the Bank by way of first charge all the book-debts, outstandings, moneys receivable, claims and bills which now due and owing or which may at any time hereafter during the continuance of this security become due and owing to the Borrower in the course of its business by any person, firm, company or by the Government or any local or public body or authority (all of which are hereinafter collectively referred to as “the said debts’) as security for the due repayment to the bank at any time on demand at ………………….

(a) of all moneys which are now due or which at any time or times

hereafter may become due and owing from the Borrower to the Bank either in the said Cash Credit Account of the Borrower with the bank with a limit of Rs …………… or in any other account and whether alone or in partnership with any person, firm or company including moneys owing upon any cheques, promissory notes or bills of exchange made drawn, accepted or endorsed or discounted or purchased or paid at the request or on behalf of for credit of the Borrower either solely or jointly with another or others.

(b). Interest will be charged at the rate of …………….% per annum over Prime Lending Rate of the Bank with monthly rests or such other rates and rests as may be notified by the bank to me / us from time to time and shall be calculated and charged as the daily balance in the bank’s favour due upon the said account until the same is fully liquidated and shall be paid by the borrowers as and when demanded by the Bank.

(‘c) All costs (between Attorney and Client) charges and expenses which the Bank is entitled to add to its security by these presents or by-law.

(d) And for the payment and discharge of all the borrower’s present and future indebtedness and liabilities to the bank of any kind in any manner whether solely or jointly, primary, or collateral, accrued or accruing with all relative interest costs (between Attorney and Client) charges and expenses.

2. That on any default of the Borrower in payment on demand of any money hereby secured on the performance of any obligation to the Bank under this or any other security or the occurrence of any circumstances in the opinion of the Bank prejudicing or endangering this or any other security, the Bank shall be entitled at the borrower’s risk and expenses as Attorney for and in the name of the Borrower or otherwise (the borrower hereby irrevocably appointing the Bank to be its Attorney) to take possession and/or appoint receivers of the said debts under this security give notices and demands to borrowers and third parties liable that for and to demand sue for recover receive and give receipts and discharges for the same and sell or realise by Public auction or private contract or otherwise dispose of all or any part of the said debts or claims under this security without being bound to exercise any of these powers or liable for any loss in the exercise thereof the Borrower undertaking to transfer and deliver to the Bank all relative documents and papers and agreeing to accept the bank’s accounts or receipts from realisation under this security and to pay any shortfall or deficiency thereby shown.

3. That this security is to continue notwithstanding the existence of a credit balance on the said accounts at any time or any partial payments or any fluctuations of accounts.

4. That nothing herein shall prejudice the bank’s rights or remedies in respect of any present or future security guarantee obligation or decree for any indebtedness or liability of the borrower to the bank.

5. All accounts rendered to the borrower by the bank shall be conclusive evidence both in and out of court of all matters therein stated.

6. The borrower agrees to execute on demand by the Bank such further documents as may be required by the Bank to vest the said debts or any of them in the Bank to render the same readily realisable or transferable by the Bank at any time.

7. The borrower also agrees that notwithstanding anything hereinbefore contained the bank shall not be bound to allow or to continue their Cash Credit Account or any other Account whether overdraft or loan on grant the Borrower any financial or other facilities or accommodation to any extent or for any time further than the Bank shall in its absolute discretion see fit to do.

8. The borrower hereby declares that the said debts shall always be their absolute property at their sole disposal and free from any prior charge or encumbrance and declares that nothing herein shall operate to prejudice the bank’s rights or remedies in respect of any present or future security guarantee obligation or decree for any indebtedness or liability of the borrower to the bank.

9. The security hereby constituted is to operate as a continuing security for all sums due or owing to the Bank at any time and in the event of the Borrower’s current account, loan or Cash Credit or any other account with the Bank running to a credit balance at any time, the Bank’s security hereunder shall still continue and the borrower shall be liable for all sums due or contingently due on any account whatsoever.

10. That the borrower will not receive compound or release any of the said debts nor do anything whereby the recovery of the same may be impeded, delayed or prevented without the consent of the bank and will keep proper books of account of its business and will at any time when required produce such books for the inspection of the bank and its officers and agents and allow it or them access thereto and to make copies of or extracts from the same.

11. Any notice by way of request, demand or otherwise hereunder may be given by the bank to the borrower or any of the

individuals constituting the borrower personally or may be left at the then or last known place of business or residence in the Indian Union of the borrower or any of such individuals addressed to the borrower or any such individuals or may be sent by post to the borrower or any such individuals addressed as aforesaid and if sent by post, it shall be deemed to have been given at the time when it would be delivered in due course of post and in proving such notice when given by post, it shall be sufficient to prove that the envelope containing the notice was posted and a certificate signed by the bank’s local Manager that the envelope was so posted shall be conclusive.

Dated ……………….. this ……………. day of …………………………………. …………………………………………..

…………………….Signature.

F 107A

AGREEMENT FOR CASH CREDIT/OVERDRAFTAGAINST HIRE PURCHASE DOCUMENTS

In consideration of the Indian Overseas Bank ………………………………………… (hereinafter referred to as “the Bank”, which expression shall include its assigns and successors in interest ) allowing us Messrs ………………………… The undersigned ( hereinafter called “ the borrowers” which expression unless repugnant to the context shall include our assigns and successors in interest ) an advance by way of cash credit /overdraft upto the extent and limit of Rs. ………………… ( Rupees ……………….. …………………… only) (hereinafter referred to as “the said limit”) repayable to the said Bank on demand being made by the Bank, the borrowers hereby agree as follows :

1. That the bank shall not under this agreement be required to make advances to exceed the said limit. The borrowers shall, however be responsible for the payment on demand of the entire amount that may, at any time, be due in this account although such amount may exceed the said limit.

2. As security for the said advances, the borrowers shall deliver to the Bank such promissory notes and hire purchase agreements relating to vehicles given by the borrowers to their customers on hire purchase basis, (charging and hypothecating the said vehicles by way of first charge) as are acceptable to the bank and are drawn on and payable in India and arising out of bonafide transactions and which promissory notes shall be endorsed by the borrowers to the bank.

3. The borrowers undertake that each such promissory note so delivered to the bank will be paid on its maturity and in default of payment by the principal debtor thereon will be paid by the

borrowers to the bank. It shall be open to the bank to realise the amounts due to them from the borrowers under this agreement and the relative promissory notes, by proceeding against the vehicles covered by the hire Purchase Agreements deposited with the bank.

4. Without prejudice to bank’s remedies aforementioned it is agreed that the borrowers shall, if the bank so requires, act as the bank’s agent for the realisation of any promissory note at maturity and take all such steps as may be necessary for that purpose and that on realisation and pending payment to the bank of the proceeds of any such promissory note the borrowers shall hold such proceeds of any such promissory note the borrowers shall hold such proceeds as trustees for the bank it shall forthwith pay such proceeds to the bank.

5. It is agreed that the fact of the bank’s not taking steps to enforce payment of such promissory notes against the principal debtor

Stamp

thereon shall in no way release the borrowers from liability thereon and that it shall be unnecessary for the bank to give any notice of dishonour.

6. it is agreed that the bank shall not be bound to take any legal action or proceedings against the hirers on the hire purchase agreements or on the promissory notes and the borrowers shall not hold the bank liable for any loss or damage caused to them on that account. If it is intended to take any proceedings against the hirers, the borrowers shall take back the documents from the bank by making payment of the amount shown in the pronotes and/or the relative hire purchase agreements.

7. The borrowers undertake not to deliver to the bank any promissory note in terms of this agreement unless they are satisfied that all parties liable thereon are financially sound, solvent and credit-worthy and that by delivery the borrowers certify the signatures of such persons thereon and verify the authority of the signatories to sign such documents.

8. That the interest at the rate of ……… percent per annum over Reserve Bank of India rate with a minimum of …… percent per annum or such other rate as may be fixed by the Bank from time to time shall be calculated and charged on the last working day of each quarter and it will form part of the principal and will carry interest at the above mentioned rate.

9. That the borrowers agree to pay incidental charges for every half year of part thereof (according to labour involved ) as fixed by the Bank from time to time during the time the account remains open.

10. That the borrowers also undertake and agree to insure and keep the hypothecated vehicles insured against all risks (including third party risks) and assign such policies to the Bank and to pay the premia due in respect of such policies duly and punctually and not to permit such policies to lapse.

11. That on demand being made by the bank, the borrowers shall pay to the bank the balance then outstanding and owing to the bank on the said account inclusive of interest at the rate mentioned above to the rate of payment, together with all the charges and expenses charged or incurred by the bank as ascertained from the books of the bank (which the borrowers agree to accept as sufficient proof of the correctness thereof without production of any voucher or paper).

12. That the borrowers will be liable for all costs of recovery incurred by the bank before filling a suit and also for all costs in connection with the suit till recovery of full amount.

13. That the borrowers shall not be entitled to interest for any sum which may at any time stand to their credit in this account.

14. That the bank will always be at liberty to stop making fresh advances at any time without

previous notice which notice is hereby expressly waived and without assigning any reason even though the said limit have not been fully availed of.

15. That the borrowers hereby agree that any notice in writing requires to be served hereunder shall be sufficiently served if addressed to their address registered in the bank or left at such address.

16. That the security hereby created shall operate as a continuing security for the ultimate balance due on the said account which is not to be considered closed for the purpose of this security and the security is not to be considered exhausted by reason of the said account being brought

to credit at any time or from time to time and if the whole of the Bank’s advances shall be repaid and the entire security be withdrawn the said account may nevertheless at any time before the said account has been closed be continued under the said account under this agreement upon security being again furnished.

17. IN WITNESS WHEREOF, we the Borrowers, hereunto set our hands this ……………………… …………………………… day of …………………………. Two thousand ……………………….

………………………..Signature

F107B

LETTER NOTIFYING ASSIGNMENT OF VEHICLE AND DIRECTING PAYMENT TO THE BANK

FORM – A

To(Name and address of the Hirer) Date …………………….

………………………………… Place ……………………

…………………………………

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

Dear Sir,

We ………………………………… Financiers, …......................... hereby notify that we have this …………………………. day of ……………………….. 20 assigned in favour of the Indian Overseas Bank ……………….. our contractual rights and interest in the Hire Purchase Agreement in respect of …………………… Registration no. …………. entered into by us on ……………………………. and whereas under the said assignment all amounts due (Rs. ……………. as on ……………..) and becoming due and payable to us under the said Hire Purchase Agreement with future interest have been assigned in favour of the Indian Overseas Bank and you are hereby required to pay all the sums due/becoming due and payable under Hire Purchase Agreement to the said Indian Overseas Bank and receipt be obtained on such payments.

Yours faithfully

………………………….. F 107 C

TAKE DELIVERY LETTER

The ManagerIndian overseas Bank……………………………

Re : Agreement dated ……………………… for cash credit against

Hire Purchase Documents

Please take delivery of the following :

Pronote and Particulars of vehicles Hire purchase Executed by Registration Mark, Make, AmountAgreement Date Engine No., Chassis no. and year of Manufacture

…………………………..F 107 D (Signature)

Indian Overseas Bank……………………… Branch

To

…………………………….…………………………….…………………………….

Dear Sir(s)

Hire Purchase Agreement dated …………………. executed between you and M/s …………………………. …………………………………… relating to Vehicle No ……………………….......................

This is to inform you that M/s ………………………………………………… for valuable consideration received from us, have assigned and transferred all their rights, title and interest in the above mentioned Hire Purchase Agreement and the moneys thereby secured, to us, our successors and assigns.

Please therefore take notice that we have an interest in the vehicle/article and moneys secured under the agreement above mentioned.

Yours faithfully,

MANAGERF 107 E

The ManagerIndian Overseas Bank ……………………………………

Name ………………………………Loan No. …………………………..Amount Rs. ………………………..

I/We hereby acknowledge to have deposited with Indian Overseas Bank ………The goods documents and securities for property of money, hereunder mentioned ( hereinafter referred to as “the said goods and securities” in which expression are included unless the same is inconsistent with the context any further goods documents and securities for property or money to be deposited as hereinafter mentioned) as a collateral security for the due payment of my/our promissory note to the said Bank dated this …… day of ………. 20….. for the sum, Rupees …………. as well as of all interest at the rate of …………… % over Reserve Bank of India rate of interest with a minimum of ……. % per annum or at such other rates as may be notified by the Bank to me/us from time to time with …………. rests and charges thereon, and also for the cost and charges of keeping the said goods and securities as a security and in case I/we shall make default in paying the said sum of Rs. ……….. to the said Bank on demand according to the tenor of my/our said Promissory Note I/We hereby authorise and empower the said Bank or any recognised Agent there for to sell or remove and sell absolutely dispose of the said goods and securities in such manner as they or he may think most advisable without any reference to me/us the undersigned or consent on my/our part.

I/We further hereby authorise the said Bank to reimburse itself out of the proceeds of the said goods and securities all costs, charges and expenses of keeping and selling the said goods and securities, but so that the said Bank shall not be responsible for any loss from or through any Employee/Agent Broker or Auctioneer employed in the sale of the said goods and securities, or in any other manner whatsoever in respect of the said goods and securities and the said Bank shall also reimburse itself in the amount of the said Promissory Note and all interest and charges thereon, and should any balance remain over I/We authorise the said Bank to place the amount against all such sum or sums of money as may at the time to such sale be due or owing by or from me/us to the said Bank upon or in respect of any other Promissory Note, Bill of Exchange or other engagement, although it shall happen that such sum or sums of money shall not be due at the time of such sale, and I/we further engage to pay to the said Bank the balance, if any, remaining unsatisfied and I/we further engage to grant such further documents as may be found necessary effectually to vest in the said Bank the said goods and securities to enable them to sell or transfer the same and I/we further engage to maintain a margin either by payment in cash or by the deposit of further approved goods, documents or securities for property, money, so that the amount advanced be not more than ………… per cent of the market value of the goods or securities deposited as security for the time being and I/we agree that the Bank’s decision as to market value shall in all cases be final and binding

Stamp

upon me/us. And in the event of my/our failing to maintain such margin as aforesaid I/we hereby authorise the said Bank to sell at any time before the maturity of my/our said Promissory Note the portion of or all the said goods and securities for the time being the subject of this security which may be necessary to the full payment of my/our said Promissory Note with interest and charges as agree on. And all fresh security added is to be subject to the same conditions as herein before stated or as stipulated for by any separate document. I/we further agree and engage not to revoke or make viod any Power of Attorney or other authority which I/We have given or may give to the said Bank to enable it to sell and transfer the said goods and securities for the time being the subject of this security.

The Bank shall not be answerable or liable for any damage arising out of shortage, theft, pilferage, deterioration, depreciation and other causes which the said goods and securities may suffer while in its possession or custody or in the possession or custody of its servants or Agents including clearing Agents.

The Bank shall not be responsible for the shortage in weight of the goods pledged since it will not ordinarily be possible to ascertain their correct weight by the Bank either at the time of storage or release.

It is distinctly understood that I/we take full responsibility for the correctness of the quality, weight and quantity of the goods and for their safety and insurance and for taking such measures or precautions as may be necessary in this connection.

I/We further agree that the Bank shall not be responsible for any accidental or willful wrong or fraud on the part of its employees committed in respect of the said goods and securities while in the custody of the Bank.

And I/we hereby declare that I/we am/are the owner/owners of the said goods and securities and that the same are, except for such deposit, within my/our own disposition and control and free from any prior charge.

And I/we hereby also agree that any notice in writing requiring to be served hereunder shall be sufficiently served if addressed to me/us at my/our address registered in the Bank or in the event of no such address being registered at my/our last known place of residence of business in ……………….. and left as such address or place or if forwarded to me/us by post at the address or place aforesaid. A notice sent by post shall be deemed to be given at the time when in due course of post it would be delivered at the address to which it is sent.

……………………20………….………………………………….

PARTICULARS OF SECURITIES ABOVE REFERRED TO

F108 ………………………..

Dated : ……………20………

To

Indian Overseas Bank

……………………….

I/we the undersigned hereby agree that all goods, documents of title to goods and securities of every description other than securities for immovable property (which goods, documents and securities are hereinafter referred to as “the said goods and securities”) including the property, money and advantages comprised in, covered or represented by and derivable under or by virtue of such documents and securities which I/we now and which we may from time to time deposit with Indian Overseas Bank (hereinafter called “the Bank”) by way of security shall be deemed to have been deposited with and shall be held by the bank upon and subject to the terms and conditions hereinafter mentioned, that is to say :

1. The said goods and securities shall be a security to the Bank for the payment to the Bank by me/us on demand of

(a) all moneys to extent of Rs………(Rupees…….………………………) which now or which at any time or times hereafter may become due and owing from me/us to the Bank whether alone or in partnership with any person, firm or company by way of overdraft in current account or by way of loan or by way of cash credit with the Bank or otherwise (including money owing upon any cheques, promissory notes or bills of exchange drawn, accepted or endorsed by me/us or which shall

have been paid for my/our credit either solely or jointly with another or others).(b) Interest will be charged at the rate of …………..% per annum over Prime Lending Rate of the Bank with monthly rests or such other rates and rests as may be notified by the Bank to me /us from time to time and shall be calculated and charged as the daily balance in the Bank’s favour due upon the said accouunt until the same is fully liquidated and shall be paid by the borrowers as and when demanded by the Bank.(c) commission and other customary charges.(d) all expenses which may be incurred by the bank in selling or attempting to sell the said goods and securities or any of them or in realising the said goods and securities or any of them.(e) all costs, charges and expenses including legal charges as between attorney and client which the bank may be put to in connection with the premises or the exercise or enforcement of any right or powers hereby conferred.2. In consideration for the said

advances I/we hereby promise to pay to the Bank on demand made by the Bank or the Manager or any other officer thereof the said several items specified in paragraphs 1(a) to (e) of the last preceding clause.

3. I/we hereby agree at all times while any money remains hereby secured to deposit and keep deposited with the Bank, goods, documents of title to goods and securities approved by the Bank of such value that the agreed margin shall be maintained for

the benefit of the Bank. The agreed margin shall be the rate of margin which the Bank may from time to time in its absolute discretion fix (whether generally with regard to all its customers or some of them or specially for the purpose of these present(s) with regard to the nature of goods, documents of title to goods and the goods therein comprised and securities so deposited. The value of goods, documents of title to goods and the goods therein comprised and securities shall for the purpose of the presents be the market value thereof or the normal value thereof whichever be less. The decision of the Bank as to what is the normal value of any goods shall be conclusive. Should the Bank through its Manager or other Officer so require, such margin shall be maintained by me/us either by the immediate delivery of further security to be approved by the Bank or by an immediate cash payment. The terms and conditions contained in these presents shall apply to all goods, documents and securities so deposited from time to time.

4. I/we hereby agree that the Bank shall be entitled if default shall have been made by me/us in the repayment of moneys due by me/us for 48 hours after notice demanding payments to sell or remove and sell the said goods and securities in such manner as the Bank may think fit and that such 48 hours notice shall be reasonable notice of such intended sale. For the purpose aforesaid or to effect any sale of

the said securities the Bank may stamp complete and register any transfer or other documents and pending any such sale, the Bank may collect, receive and recover any dividend interest and money relating to said securities or any of them and give receipts thereof.

5. The bank shall at any sale of the said goods and securities have power to buy in or rescind any contract for sale and resell without being accountable for any loss or diminution in the price thereof or being answerable for any deterioration of the said goods or for any depreciation in the value of the securities.

6. I/We hereby agree to execute from time to time on demand made by the Bank or the Manager or any other Officer thereof and make over to the Bank all such further or other documents and do all such acts as may be required by the Bank to vest the full legal title to the said goods and securities or any part thereof in the Bank and to tender the same readily saleable or transferable by the Bank at any time.

7. The Bank shall not be liable to me/us for any involuntary losses which may occur during its custody of the said goods and securities or by reason of the sale of said goods and securities or any other or for any deterioration of the goods or for any depreciation in the value of the said securities.

8. The bank shall not be answerable or liable for any damage arising out of shortage, theft, pilferage, deterioration, depreciation and

other causes which the said goods and securities may suffer while in its possession or custody or in the possession or custody of its servants or Agents including clearing Agents.

9. The Bank shall not be responsible for the shortage in weight of the goods pledged since it will not ordinarily be possible to ascertain their correct weight by the Bank either at the time of storages or releases.

10. It is distinctly understood that I/we take full responsibility for the correctness of the quality, weight and quantity of the goods and for their safety and insurance and for taking such measures or precautions as may be necessary in this connection.

11. I/We further agree that the Bank shall not be responsible for any accidental or willful wrong or fraud on the part of its employees committed in respect of the said goods and securities while in the custody of the bank.

12. The Bank may out of the proceeds of sale of the said goods and securities retain all moneys owing by me/us in my/our said account under the said several items specified in paragraph(a) to (e) of clause I hereof, the surplus if any is to be paid to me/us subject however to the Bank’s general lien and I/we agree to make good the deficiency if any, to the bank on demand.

13. All account sales rendered to me/us by the Bank shall be conclusive evidence both in and out of all matters therein stated.

14. I/We hereby also agreed that notwithstanding anything herein

before contained, the bank shall not be bound to allow or continue my/our overdraft in current account, loan or cash credit to any extent or for any time/further than the Bank shall in its absolute discretion see fit to do.

15. I/we hereby also agree that if at the time when the said current account, loan or cash credit shall be closed, a balance shall be owing from me/us to the Bank I/we will so long as such balance or any part thereof shall remain owing, pay interest thereon to the Bank at the rate aforesaid with rests as aforesaid from the time when such balance shall be ascertained.

16. This security shall operate as continuing security for all money owing by me/us and all my/our indebtedness and liabilities(whether absolute or contingent) to the Bank as aforesaid notwithstanding the existence of a credit or a nil balance on the said account or any other account at any time or any payment of fluctuations of accounts and shall remain in force until terminated by the Bank on notice in writing by the Bank to me/us.

17. The above terms and conditions shall apply and shall be deemed to have applied to all goods and securities which may from time to time hereafter be deposited by me/us with the Bank as security for any moneys due by me/us to the bank on any account whatsoever.

18. I/We hereby declare that the said goods and securities are and shall always be my/our absolute

property and at my/our sole disposal and free from any encumbrance whatsoever and I/we hereby undertake not to deposit with the bank any goods and securities which shall not be my/our absolute property and at my/our sole disposal and free from encumbrance and that it shall be taken as a term between me/us and the Bank that all goods and securities deposited by me/us with the Bank as security are my/our absolute property and at my/our sole disposal and free from encumbrances.

19. And I/we hereby also agree that any notice in writing requiring to

be served hereunder shall be sufficiently served if addressed to me/us at my/our address registered in the Bank or in the event of no such address being registered at my/our last known place of residence or business in ……………………. and left at such address or place or if forwarded to me/us by post at the address or place aforesaid. A notice sent by post shall be deemed to be given at the time when in due course of post it would be delivered at the address to which it is sent.

………………………….

Schedule of Securities

……………………………

F 109 (A)

LETTER OF INDEMENITY WITH RESPECT TO LOST SAFECUSTODY/DEPOSIT RECEIPT

To

The Manager Date : ……………Indian overseas bank…………………………….

In consideration of your having this day delivered to me/us the under noted, securities/articles covered by your custody/deposit receipt specified below which has been lost or mislaid I/we hereby (jointly and severally) agree to hold you harmless from and against all claims, demands and expenses in respect thereof and from an against all loss, damage, costs, charges and expenses which may be incurred or sustained by you in the event of the said safe custody/deposit receipt being forthcoming at any future time to otherwise in consequence of such delivery as aforesaid, at any future time or otherwise in consequence of such delivery as aforesaid. I/we further undertake to deliver to you the said safe custody/deposit receipt, if and when found.

Dated …………………. this ………………………… day of ……………..20………

Particulars of Safe Custody / Deposit Receipt

Serial No. DateSecurities included in the receipt and now delivered

Description of article delivered

Signature(s) ……………………………. …………………………….

F109 (c)

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Indian Overseas Bank(CENTRAL OFFICE :762, ANNA SALAI, CHENNAI 600 002)

LETTER OF HYPOTHECATION (IN CASE OF OPEN ADVANCES ONLY)

No. …………………………….

Amount Rs. ……………………

Name : …………………………

Indian Overseas Bank (hereinafter called “the Bank”) having at the request of ………… …………………………………………………………………………………………… (hereinafter called “the borrowers” ) opened or agreed to open in the Books of the Bank at …………………………………………………………………………….. a cash credit account to the extent of Rupees ……………………………………… with the borrowers, repayable on demand and to be secured by goods to be hypothecated to the bank. IT IS HEREBY AGREED between the Bank and the borrowers (the borrowers agreeing jointly and severally) as follows:

1. That the goods, described in general terms in the schedule which have already been stored in the premises at …………. ………………….. and the goods which shall hereafter be stored in the said premises or in any other premises in addition to the goods now stored or by way of substitution for and in lieu of any goods which may from time to time have been withdrawn, are hereby hypothecated to the Bank and or to be deemed to have been so hypothecated as security to the Bank for all moneys for the time being owning by the borrowers to the Bank and for the Balance due to the bank at any time or ultimately on the closing of the said Cash Credit Account for the payment of all debts and liabilities mentioned in the 16th

Clause hereof. The expression “the balance due to the Bank” in this and subsequent Clauses of this Agreement shall be taken to

include the principal moneys from time to time due on the said Cash Credit Account and also all interest thereon calculated from day to day at the rate hereinafter mentioned and the amount of all charges and expenses which the Bank may have paid or incurred in any way in connection with the securities or the sale or disposal thereof.

2. That the Bank shall from time be at liberty to have the Securities valued by an Appraiser appointed by the Bank and the fees and expenses of such appraisement shall be paid by the borrowers.

3. That the borrowers shall not during the continuance of this agreement pledge or otherwise charge or encumber any of the goods for the time being the subject or intended to be the subject of this Agreement nor do or permit any Act whereby the securities hereinbefore expressed

Stamp

to be given to the Bank shall be in anywise prejudicially affected.

4. That the borrowers shall be at liberty from time to time in the ordinary course of business to sell or dispose of any of the said goods but the proceeds of sale of any of the goods sold shall be held in trust for the Bank and as soon as the same are received shall be paid to the Bank for credit of the said cash credit Account.

5. The borrowers hereby undertake that except for the purpose of such sale in the ordinary course of business they will not at any time so long as any money remains due in respect of the said cash credit account, remove or permit to be removed all or any of the said goods from the said premises or place of storage whatsoever, wherever situate without the consent in writing of the Bank having been obtained first and that the borrowers will not do any other act by means of which the Bank’s security over the said goods may be in anywise impaired or affected and that further the borrowers will not, whilst any moneys may be so owing as aforesaid, place or permit to be placed any goods in the said godown or godowns or other places of storage, whatsoever situate, other than goods being the borrowers absolute property free of all lien or charge in favour of any other person, firm or company.

6. The Borrowers hereby empower the Bank or anyone from time to time authorised by them in that behalf and without previous

notice to the borrowers to enter the said premises or places of storage whatsoever, wherever situate, for the purpose of inspecting and taking account of the said goods therein. The borrowers shall punctually pay all rents, rates, taxes and other outgoings of the godown and premises, wherein, the hypothecated goods shall be stored and keep the same free from distress.

7. The borrowers shall at all times during the continuance of this Agreement and so as any money shall remain due and owing to the Bank by virtue hereof insure and keep insured the securities to the full extent of their value from time to time against fire risks in some Insurance Office or Offices approved by the Bank and in the name of the Bank and shall duly and punctually pay the premia payable in respect thereof atleast one week before the same shall have become due or payable and hand over the policy or policies of Insurance and the receipts for premia paid in respect to the bank, and borrowers agree not to rise at any time any dispute as to the amount of the insurable interest in the Bank. If default shall be made in payment of such premia or in seeking the securities so insured, then and in such case it shall be lawful for but not obligatory upon the Bank to pay such premia and to keep the securities so insured and the expenses incurred by the Bank shall be debited to the borrower’s account and shall be paid by the borrowers with interest as

provided for the 11th clause hereof.

8. That all sums received under any such Insurance as aforesaid shall be applied in or towards the liquidation of the balance due to the bank for the time being, in the event of there being a surplus the same shall be applied as provided by the 16th clause hereof.

9. That the borrowers shall make and furnish daily/weekly to the bank such statements/returns of the cost and market value of the securities and a full description thereof and produce such evidence in support thereof as the Bank may from time to time require and shall keep and maintain in favour of the Bank a margin of ……………………… percent between the market value from time to time for the Securities and balance due to the Bank for the time being, such margin shall be calculated on the open market value of the Securities as fixed by the Bank from time to time and shall be maintained by the borrowers either by the deposit of further Security to be approved by the Bank or by Cash payment by the borrowers immediately on the market value for time being of the Securities becoming less than the aggregate of the balance due to the bank plus the amount of the margin as calculated above. In default of provision of such margin as aforesaid the balance due to the Bank shall be immediately paid by the borrowers if the Bank so requires

notwithstanding anything herein contained to the contrary.

10. The borrowers hereby empower the Bank or any one from time to time authorised by them for the purpose, so long as any money remains due to the Bank in respect of the said Cash Credit Account, from time to time to take possession of and remove the said goods or any of them and if necessary to lock or break open any place of storage whatsoever, wherever situate, where the said goods are lying or are stored with or without notice to the borrowers. The borrowers hereby agree that they shall not hold the bank liable or responsible for any such actions.

11. Interest will be charged at the rate of …………..% per annum over Prime Lending Rate of Bank with monthly rests or such other rates and rests as may be notified by the Bank to me/us from time to time and shall be calculated and charged on the daily balance in the Bank’s favour due upon the said borrowal account until the same is fully liquidated and shall be paid by the borrowers as and when demanded by the Bank.

12. That on demand by the Bank, borrowers shall pay to the Bank the balance then due to the Bank together with all further charges and expenses (if any) to the date of payment provided that nothing in this clause contained shall be deemed to prevent the Bank from demanding payment of the interest for the time being due at the above mentioned rate without at the same time demanding

payment of the balance due to the Bank exclusive of such interest.

13. That if the borrowers shall fail to maintain such margin as aforesaid or if the borrowers fail or neglect to repay to the bank on demand the balance then due to the Bank or in the event of the borrowers committing a breach or making default in the observance or performance of any of the terms of the Agreement or in the event of the borrowers committing any act of insolvency becoming or being adjudicated bankrupt or insolvent or executing any Deed of Agreement, composition or Inspectorship or in the event o any distress or execution being levied or enforced upon or against any of the property of the borrowers whether the said Property shall or shall not be the subject of this Security or (whether the borrowers are not a Joint Stock Company) in the event of any person, firm or company taking any step towards applying for or obtaining an order for the appointment of a Receiver of the borrower’s property or any part thereof or (in the event of the borrowers being a Joint Stock company) if any person, firm or company, shall apply for or obtain an order for the Winding up of the borrowers or if any such order is made or any step be taken by any person, firm or company, in or towards passing any resolution to wind up the borrowers or if any such resolution be passed whichever may first happen it shall be lawful for the Bank forth with or

at any time thereafter and without any notice to the borrowers (without prejudice to the Bank’s right of suit against the borrowers) either by public auction or private contract and subject to such conditions as the Bank shall think fit absolutely to sell or otherwise dispose of all or any of the securities either together or in lots or separately and to apply the net proceeds of such sale in or towards the liquidation of the balance then due to the Bank.

14. In the event of such sale or realisation as aforesaid, the borrowers agree to accept the accounts of the Bank for such sale or realisation signed by their Manager or Accountant or other duly authorised Officer of the Bank as sufficient proof of the amount realised by the Bank as costs, charges and expenses incurred in such sale or realisation.

15. That if the net sum realised by such sale be insufficient to cover the balance then due to the Bank, the Bank shall be at liberty to apply any other money or moneys in the hands of the Bank standing to the credit of or belonging to the borrowers or any one or more of them in or towards payment of the balance for the time being due to the Bank and in the event of there not being any such money or moneys as aforesaid in the hand of the Bank or in the event of such money or moneys being still insufficient for the discharge in full of such balance the borrowers promise and agree

forthwith on production to them of an account to be prepared and signed as in the 19th clause hereof provided, to pay any further balance which may appear to be due by the borrowers thereon provided always that nothing herein contained shall be deemed to negative, qualify or otherwise prejudicially affect the right of the Bank (which it is hereby expressly agreed the Bank shall have) to recover from the borrowers, the balance for the time being remaining due from the borrowers to the Bank upon the said Cash Credit Account notwithstanding that all or any of the Securities may not have been realised.

16. That in the event of there being a surplus available in the net proceeds of such sale after payment in full of the balance due to the Bank it shall be lawful for the bank to apply the said surplus together with any other money or moneys belonging to the borrowers or anyone or more of them for the time being in the hands of the Bank in or under whatever accounts as far as the same shall extend in or towards payment or liquidation of any and all other moneys which shall be or shall have become due from the borrowers or any one or more of them whether solely or jointly with any other person or persons, firm or company to the Bank by way of loans, discounted bills, letters of credit, guarantees, charges or any other demands legal or equitable which the bank may have against the borrowers or any one or more of

them or which the law of set-off or mutual credit would in any case admit and whether the borrowers or any one or more of them shall become or be adjudicated bankrupt or insolvent or be in liquidation or otherwise and interest thereon from the date on which any and all advance or advances in respect thereof shall have been made at the rate of respective rates at which the same shall have been so advanced.

17. That any surplus of the net proceeds of any such sale after payment of all principal and interest and other moneys due by the borrowers or any one or more of them to the Bank for or in respect of the said cash credit account or in anywise relating thereto and of all other moneys due from them to the Bank on any account whatsoever as aforesaid shall be paid to them by the Bank when they shall or may direct.

18. The borrowers shall if so required by the Bank display its name board or boards conspicuously at all times in place or places where the goods hypothecated as aforesaid are stored stating distinctly that the goods in the premises are under hypothecation to the Bank, in default, the Bank may itself cause its name board/s to be displayed in the aforesaid manner.

19. That the borrowers agree to accept as conclusive proof of the correctness of any sum claimed to be due from them to the Bank under this agreement a statement

of account made out from the books of the Bank and signed by the Accountant or other duly authorised officer of the Bank without the production of any other voucher, document or paper.

20. That this agreement is to operate as security for the balance from time to time due to the Bank and also for the ultimate balance to become due on the said Cash Credit Account and the said Account is not to be considered to be closed for the purposes of security and the security is not to be considered exhausted by reason of the said Cash credit Account being brought to credit at any time or from time to time or its being drawn upon to the full extent of the said sum of Rs. ………………………………… if afterwards re-opened by payment to credit.

21. That this agreement is not to prejudice the rights or remedies of the Bank against the borrowers irrespective and independent of this Agreement in respect of any portion of the ultimate balance of the said account and interest in excess of the said sum of Rs. …………… only or in the respect on any other advances made or to be made by the Bank to Borrowers.

22. That the bank shall not be in any way liable or responsible for any damage or depreciation whichthe goods for the time being

hypothecated to the bank and forming part of the Securities the

subject of this Agreement or any part thereof may suffer or sustain on any account whatsoever while the same shall at any time come into possession of the Bank.

23. That any notice required to be served hereunder shall be in writing and shall be deemed to be sufficiently served if addressed to the borrowers at their address registered in the Bank or in event of no such address being registered at their last known place of residence or business in ………………… and left at such address or place or forwarded to them by post at the address or place aforesaid. A notice sent by post shall be deemed to have been served at the time when in due course of post it would be delivered at the address to which it is sent.

24. That Securities are within the disposition and control of the borrowers and are free from any prior charge.

25. That in case the borrowers shall be a firm or members of a firm no change whatsoever in the constitution of such firm during the continuance of this Agreement shall impair or discharge the liability of the borrowers or any one or more or them there under.

Borrowers have hereunto set their hand this …………………………………… ………………….. in the Christian Year Two thousand ………………………….

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SCHEDULE OF SECURITIESReferred to in the foregoing Agreement

…………………………………F 110 (A)

(To be stamped as an agreement)

TERM LOAN AGREEMENT

This Agreement made

at……………………………………the

………………………………….day of

…………………….Two Thousand

…………………………………………

……………………………by

……………………………………….

(hereinafter referred to as “the Borrower

which expression shall, where the

Borrower is.

a) an individual, include his/her

heirs, executors, administrators

and assigns; where the Borrower

is more than one individual,

include all of them jointly and

each of them severally and their

survivor or survivors and the

respective heirs, executors,

administrators or other legal

representatives;

b) a firm, include the partners for

the time being of the firm their

heirs, executors administrators

and assigns,

c) a company, include its successors

and assigns.

d) A joint and undivided Hindu

family or a joint family firm,

include all its coparceners,

e) An Association, corporate,

include its successors and assigns

all members and their respective

heirs, executors, administrators

and assigns.

In FAVOUR OF INDIAN

OVERSEAS BANK, a body

corporate constituted under the

Baking companies (Acquisition

and Transfer of Undertakings)

Act, 1970 and having its Head

Office at 762, Annasalai,

Chennai and a Branch office

amongst other places

at………………..(hereinafter

referred to as “the Bank” which

expression shall include its

successors and assigns).

WHEREAS the borrower

has applied to the bank for a loan

which the Bank has agreed to

grant to the extent of

Rs………………………

Stamp

(Rupees…………………………

……

…………….only) upon having

the repayment there of secured

on the terms and conditions and

in the manner hereinafter

mentioned.

AND WHEREAS the

Bank at the request of the

Borrower, agreed to disburse the

said loan to the extent of

Rs……………………………….

(Rupees…………………………

………

…………………………………

…………………………only) on

or after execution of this

agreement either in one lump

sum or in such amounts as may

be mutually agreed upon by the

parties to be utilised by the

Borrower for purchase of the

machinery described in Schedule

‘A’ hereunder written and for no

other purpose.

NOW IN

CONSIDERATION of the

premises it is hereby agreed as

follows:

1. The Borrower hereby agrees

that the said loan shall be

governed by and subject to

the terms contained herein as

well as those contained in the

security documents listed in

schedule B here under except

in so far as the security

documents may be modified

by these presents.

2. The Borrower expressly

agrees and undertakes that

the said loan received from

the Bank shall be utilised

exclusively for a aforesaid

purpose.

3. The borrower promises and

undertakes to repay the

amount of the said loan to the

Bank by instalments in the

manner mentioned hereunder;

First installment Rs………

Payable on ………….

Second installment Rs………

Payable on …………. Third

installment Rs………Payable on

…………. Fourth installment

Rs………Payable on ………….

Fifth installment Rs………

Payable on …………. Sixth

installment Rs………Payable on

…………. Seventh installment

Rs………Payable on ………….

Eighth installment Rs………

Payable on …………. Ninth

installment Rs………Payable on

…………. Tenth installment

Rs………Payable on …………

4. The Borrower shall, so long

as the said loan or any part

thereof remains unpaid to the

Bank, pay interest at rate of

………………percent over

the Reserve Bank of India

lending rate with minimum

of. ……………percent per

annum or at such other rates

as may be notified by the

Bank to the Borrower from

time to time rising and

falling therewith calculated

respectively on the daily

balance of the amount due

with quarterly rests, on the

last days of March, June,

September and December

each year and pay such

interest within seven days

from the date from which it

falls due for payment.

5. In case there is any default in

the payment of any of the

instalments either of the

principal or interest

mentioned above, the Bank

shall be entitled to charge

interest at two percent per

annum over the rate

mentioned in the preceding

Para on the amount of such

default from the date till

payment or realisation of

such defaulted principal or

interest.

6. As security for the repayment

to the bank of the amounts

due under this Agreement,

the Borrower hereby

hypothecates and charges

unto the Bank by way of first

charge machineries.

(Whether fixed or movable

and whether attached to the

premises or not) more

particularly described in the

schedule A, hereunder

written (hereinafter called

“the securities” the

expression securities shall

wherever required or

necessary include all fittings,

fixtures, furniture, tools

accessories and part

whatsoever pertaining to the

said hypothecated machinery

and all replacements of or

additional made to the

hypothecated machinery from

time to time as continuing

security for due repayment by

the Borrower to the Bank

at…………………………….

of the said loan of

Rs………………..

………….

(Rupees……………………

……………………..only)

and interest thereon by

instalments in the manner

aforesaid and costs, charges

and expenses incurred by the

Bank for the protection,

preservation, defence and

perfection of this security and

for attempted or actual

realisation thereof.

7. The borrower declares and

guarantees that the securities

are and shall remain the

absolute and unencumbered

property of the borrower with

full power of disposition and

undertakes to indemnify the

Bank against every and any

kind of loss or damage or

destruction to the securities

from any cause whatsoever or

by reason of any claims by

third parties.

8. So long as any money

remains due in respect of the

said loan, the Borrower

shall not remove or cause or

permit to be removed the

securities from the Borrower

premises

at………………………...

………………………………

……………….where the

same are presently kept and

other placces wherever kept

or stores for the benefit of the

Borrower except in the

manner and to the extent

allowed by the Bank.

9. The Borrower shall, if so

required by the Bank display

its name board or boards

conspicuously at all times in

place/fixed or lying loose in

addition to fixing up the

name plates or painting on

the machinery wherever

necessary stating distinctly

that the machinery in the

premises are under

hypothecation to the Bank

and on the failure of the

Borrower to do so, the Bank

may itself cause it’s name

board(s) name plate(s) to be

displayed/fixed or painting

done in the aforesaid manner.

The borrower shall also

display the list of machinery

prominently in the place

whether the items of

machinery are stored or fixed

and/at such other places in

the office/factory of the

borrower as the Bank may

desire.

10. The securities shall at all

times during the currency of

this agreement and so long as

any money shall remain due

and owing in the said loan

account be maintained in

good working and saleable

condition and insured and

kept insured by and at the

expenses of the Borrower

against fire and such other

risks as may be required by

the Bank or be required by

law to the full extent of the

value thereof in an insurance

office or offices approved by

the Bank in the joint names

of the Bank and Borrower,

with the Bank clause and the

policies shall forthwith be

handed over to the Bank The

Borrower shall duly and

punctually pay the premia

due on the policies atleast

one week before the same

shall have become due or

payable and handover the

receipts to the Bank and the

Borrower agrees not to raise

at any time any dispute as to

the amount of the insurable

interest of the Bank if the

Borrower shall make default

in effecting such insurance as

aforesaid or renewing any

policy or in payment of such

premia, or in keeping the

securities so insured or in

delivering to the Bank the

policies or receipts for the

premea, it shall be lawful (but

not obligatory) for the Bank

to effect such insurance or to

renew or to pay such premia

and keep securities insured

and to debit the expenses

incurred by the Bank for this

purpose to the said account

and the same shall be treated

as advances secured by this

agreement. The Borrower

agrees to pay the same on

demand with interest at the

rate aforesaid. All sums

received under any such

insurance as aforesaid shall

after deduction of all

expenses, be applied either in

reinstating the security or in

or towards the liquidation of

the balance due to the Bank

for the time being and in the

event of there being a surplus

the same shall be paid to the

Borrower subject to the

Bank’s lien in respect of the

Borrower’s other dues to the

Bank if any. The Borrower

agrees that if any moneys

under any such insurance are

received by the Borrower, he

shall pay the same forthwith

to the Bank and in the event

of the insurance amount so

applied for liquidation of the

insurance amount of the

balance due to the Bank

leaving a shortfall in the

account, the Borrower agrees

to remit cash or give

adequate alternate security to

cover the shortfall.

11. The Borrower shall not,

during the continuance of this

agreement sell, dispose of,

pledge hypothecate or

otherwise charge, encumber,

or in any manner part with

the possession of the

securities or any part thereof

except in the manner

prescribed by the Bank nor

shall the Borrower do or

permit to be done any act

whereby the security

hereinbefore expressly given

to the Bank shall in any way

be prejudicially affected or

whereby any distress or

attachment or execution may

be levied thereon by any

creditor or other person

including any Government or

Municipal authority or body.

12. The Borrower shall duly and

punctually pay, perform and

observe all rents, rates, taxes,

assessments and other

outgoings and whatsoever

covenants and obligations

which ought to be paid or

performed or observed by the

Borrower in respect of the

said premises and shall

inform the Bank promptly of

any notice or intimation

received from any of the

authorities, viz., Government,

Semi Government, Municipal

or local or other authorities

regarding any dues default,

delay etc. by the Borrower in

the performance of the

Borrower’s obligations

towards them.

13. The Borrower shall pay to

the Bank a commitment

charge of 1 % (one per cent)

per annum on the principal

amount of the loan which

shall not have been drawn by

the Borrower from time to

time or shall not have been

cancelled by the Bank. Such

commitment charge shall

accrue from the date of first

availment of the loan or the

date of execution of this

agreement whichever is

earlier and shall be payable

along with the quarterly

interests on the date

mentioned above.

14. The Borrower shall, so long

as the loan or any part hereof

remains unpaid, maintain

books of accounts and

ledgers and other records

documents relating to his

business for the purpose and

promotion of which the loan

has been obtained by him

from the bank, and allow

inspection thereof by any of

the officers authorised by the

Bank in this behalf.

15. It shall be lawful for the Bank

and any of the officers

authorised by it in this behalf,

without notice and at the

expense in all respects of the

Borrower, to enter at any

time into or upon the offices,

godowns factories of the

Borrower or places where the

securities are kept for the

purpose of making inspection

of or checking the securities

and taking account and

inspection of the books of

account of the Borrower

(which the Bank is hereby

authorised to do so) and it

shall also be lawful for the

Bank from time to time as it

may deem fit to have all or

any of the securities for the

time being so hypothecated

and charged as aforesaid

valued an appraiser or other

valueer to be appointed by

the Bank and all expenses

and the fees of such

inspection and expenses of

such valuation shall be

debited to the Borrower in

the said Loan Account and be

payable accordingly and shall

until payment be treated as an

advance secured by this

Agreement.

16. The Borrower shall furnish to

the Bank all such information

declarations, affirmations etc.

as the Bank may from time to

time require including change

in his address or the address

to which the securities may

be removed subject to clause

8 above, and shall give and

execute necessary documents

required to give effect to this

security, or for any other

purpose.

17. The Borrower shall furnish to

the Bank statements and

returns of the cost and market

value of securities and a full

description thereof and

produce such evidence in

support thereof as the Bank

may from time to time

require and shall at all times

during the continuance of this

agreement keep and maintain

such margin of security as

may be required by the Bank

from time to time. If and so

often as the margin shall fail

to be maintained then the

Borrower shall forthwith (as

the Bank may require) either

hypothecate to the Bank

further machinery or other

securities of sufficient value,

approved by the Bank to

make up the deficiency or

shall reduce the amount for

the time being due to the

Bank by a cash payment so as

to maintain the said margin.

18. If the Borrower makes any

default in payment of any

instalment of principal or

interest on the said loan or

any part of such instalment

on the respective due dates of

payment thereof as

mentioned above or if any

event or circumstances shall

occur which shall in the

opinion of the Bank be

prejudicial to or endanger or

likely to endanger the

security or any other event or

circumstance mentioned in

clause 22 hereunder happens

or occurs the Bank, if it

thinks fit, shall be entitled at

the risk and expenses of the

Borrower without any notice

at any time or times after

such default or event or

circumstance occurs or

happens, to enter (and for that

purpose to do any necessary

act, deed or thing) and remain

upon any place where

securities or the books of

account of the Borrower may

be kept and to inspect, value,

insure and take charge or

possession and / or to seize,

remove to other place or

places as the Bank may deem

it necessary, recover, receive,

appoint Receivers of, all or

any part of the securities or

books of account and

thereupon forthwith or at any

time and from time to time

but after giving not less than

48 hours notice to sell either

by public auction or private

contract or otherwise dispose

of or deal with the securities

in such manner and upon

such terms and conditions as

the Bank shall think fit and to

apply the net sale proceeds

towards repayment of the

ultimate balance due in the

said Loan Account and

interest due thereon upto the

date of such application and

to enforce, realise, settle,

compromise and deal with

any rights aforesaid without

being bound to exercise any

of these powers or being

liable for any losses in the

exercise thereof and without

prejudice to the Bank’s rights

and remedies of suit or other

proceeding. The Borrower

hereby also agrees to accept

the Bank’s accounts of sales

and realisations and to pay to

pay any shortfall or

deficiency thereby shown

immediately on demand

made by the Bank and if the

net sum realised by such sale

shall be insufficient to pay

the amount hereby secured,

the Bank shall be at liberty to

apply any other money or

moneys or securities in the

hand of the Bank standing to

the credit of or belonging to

the Borrower towards the

payment of the balance and

in the event of there being

still a deficiency, the

Borrower shall forthwith pay

such deficiency, on demand

provided nothing herein

contained shall in any manner

prejudice of affect the Bank’s

remedy to proceed against the

other assets of the Borrower.

19. The Borrower agrees to

accept as conclusive proof of

the correctness of any sum

claimed to be due from him

to the Bank under this

Agreement and as shown or

reflected in the statements of

account made out from, the

books of the Bank and signed

by the Manager / Accountant

/ or other duty authorised

Officer of the Bank without

the production of any other

voucher, document or paper.

20. The bank shall not in any

way be liable or responsible

for any loss, damage or

depreciation which the

securities or any part there of

may suffer or sustain on any

account whatsoever while the

same shall at any time come

into possession of the Bank

or any Agent or Receiver

appointed by the Bank.

21. The Borrower shall not

during the continuance of this

Agreement without the

written consent of the Bank.

(a) change or in any

way alter the capital

structure of the

borrowing concern /

company

(b) effect any scheme of

amalgamation or

reconstruction;

(c) implement a new

scheme of expansion

or take up an allied

line of business of

manufacture.

(d) Enlarge the scope of

the other trading

activities if any

undertaken at the

time of the

application and

notified to the Bank

as such;

(e) Declare a dividend

or distribute profits

after deduction of

taxes, except where

the instalments of

principal and interest

payable to the Bank

are being paid

regularly;

(f) Withdraw or allow

to the withdrawn

during the currency

of the loan any

moneys brought in

by the Borrower or

the proprietors,

partners or directors

of the Borrower;

(g) Invest any funds by

way of deposits, or

lonesor in share

capital of any other

concern so long as

any money is due to

the Bank’s the

Borrower will

however be free to

deposit funds by

way of security, with

third parties in the

normal course of

business or if

required for the

business;

(h) Borrow or obtain

credit facilities of

any description from

any other Bank or

credit agency or

moneylenders or

enter into any hire

purchase

arrangement during

the currency of the

loan;

22. Notwithstanding herein or in

the security documents

contained the whole of the

loan or the entire balance

there of outstanding at the

time shall become forthwith

due and payable by the

Borrower to the Bank and the

Bank will be entitled to

enforce its security upon the

happening of any of the

following events, namely.

(a) any installment of

principal remaining

unpaid for a period

of 15 days after the

respective due date

for the payment

there of;

(b) any interest

remaining unpaid

and in arrears for a

period of 3 months

after the same shall

have become due

whether demand or

not;

(c) any representation or

statement made

herein by the

Borrower being

found to be

materially incorrect;

(d) the Borrower

committing any

branch or default in

the performance of

or observance of any

term or condition or

provision contained

in these presents and

/ or in the security

documents or any

other term or

condition relating to

the advance;

(e) the borrower

entering into any

arrangement or

composition with the

Borrower’s creditors

or committing any

act of insolvency;

(f) the Borrower

committing any act

the consequences of

which may lead to

the winding up of

the Borrower’s

business;

(g) execution or distress

or other process

being enforced or

levied upon or

against the whole or

any part of the

Borrower’s property

whether secured to

the Bank or not;

(h) the Borrower going

into liquidation

(except for the

purpose of

amalgamation or

reconstruction with

the approval of the

Bank);

(i) the Borrower (if an

individual) or any of

the partners of the

Borrower (if a firm)

being adjudicated

insolvent or taking

advantage of any

law for the relief of

insolvent debtors; or

entering into any

arrangement or

composition with his

creditors or

committing any act

of insolvency;

(j) a Receiver being

appointed in respect

of the whole or any

part of the property

of the Borrower;

(k) the Borrower

ceasing or

threatening to cease

to carry on business;

or giving of

threatening to give

notice of its

intention to do so or

dispose of the whole

or any substantial

part of the business;

(l) if the Borrower shall

stop payment or

threaten to do so;

(m) if the Borrower shall

without the consent

in writing of the

Bank create or

attempt or purport to

create any mortgage,

charge, pledge,

hypothecation, or

lien or encumbrance

ranking in priority to

or pari passu with or

create any mortgage,

charge pledge,

hypothecation or lien

or encumbrance

subsequent to the

security given or to

be given to the Bank

for the above loan;

(n) it being certified by

an accountant or a

firm of accountants

appointed by the

Bank (which the

Bank is entitled and

authorised to do at

any time) that the

liabilities of the

Borrower exceed

its/his assets or that

the Borrower is

carrying on business

at a loss;

(o) the occurrence of

any event or

circumstance which

is likely to

prejudicial to or

impairs or imperils

or depreciates or

jeopardizes or is

likely to prejudice or

impair or imperil or

depreciate or

jeopardize the

security given to the

Bank; and

(p) the occurrence of

any event or

circumstance which

would or is likely to

prejudicially or

adversely affect in

any manner the

capacity of the

Borrower to repay

the loan.

On the question whether any of the

matters, events or circumstances

mentioned in the sub-clause (a) to (p)

above has happened, the opinion and/or

decision of the Bank shall be conclusive

and binding on the Borrower.

23. It is hereby expressly agreed

that the Bank shall be at

liberty to assign the debt and

the benefit of these presents

and the security/documents

for the advance to the

Industrial Development Bank

of India, Agricultural

Refinance Corporation or any

other Financial Institutions as

security for any refinance

obtained by the Bank from

the said Development Bank,

Refinance Corporation or

Financial Institution or any

other institution of like nature

in respect of the loan agreed

to be advanced by the bank to

the Borrower and the

Borrower shall, if and

whenever required by the

Bank to do so, at the

Borrower’s own expense do

and execute and join in doing

and executing all such acts,

things, deeds, documents or

assurances as the Bank may

require for the effectuation of

such assignment.

24. The Bank shall be at liberty

land the Borrower hereby

gives its consent to Bank) to

furnish to the said

Development Bank,

Refinance Corporation and

Financial Institution any such

information or report,

whether received by the Bank

from the Borrower or

otherwise in the Bank’s

possession.

25. If the Borrower is more than

one individual, all shall be

bound hereby jointly and

severally and if a firm or

members of a firm, such firm

and all members from time to

time thereof shall be bound

hereby jointly and severally

notwithstanding any changes

in the constitution or type

thereof and whether such

firm consists of or be reduced

to one individual at any time

and that if the Borrower is

more than one individual at

any time any notice served on

any one such individuals

shall be deemed to be

deemed to be of service of

such notice on all of such

individuals.

26. The acceptance by the Bank

of the security created and

effected by these presents

shall not be deemed in any

manner whatsoever to

supersede, vary, limit,

extinguish or otherwise

prejudice the other rights and

remedies available to the

Bank and no delay in

exercising or omission to

exercise any right, power or

remedy accruing to the Bank

upon any default on the part

of the Borrower to comply

with this Agreement or any

other document shall impair

any such right, power or

remedy or shall be construed

to be a waiver thereof or any

acquiescence by the Bank in

such default; nor shall the

action of the Bank in respect

of any default of the

Borrower as aforesaid or any

acquiescence by the Bank in

any such default affect or

impair any right, power or

remedy in respect of any such

default on the part of the

Borrower.

27. Any notice by way of request

or otherwise hereunder may

be given by the Bank to the

Borrower personally or may

be left at the address given

above or at the then or last

known place of business or

residence of the Borrower in

the Republic of India as the

case may be addressed to the

Borrower or may be series

cost to the Borrower as

aforesaid and if sent by post,

such notice shall be deemed

to have been given at the time

when it would be delivered in

due course of post and in

proving such notice when

given by post shall be

sufficient to prove that the

envelope containing the

notice was posted and a

certificate signed by the

bank’s local Manager,

Accountant or any Officer

authorised in that behalf that

the envelope was so posted

shall be conclusive. If by

reason of absence of the

Borrower from the place

mentioned above or

otherwise any such notice to

the Borrower cannot be

given, then the same if

inserted once as an

advertisement in a newspaper

circulating in the district

where the Borrower was last

known to reside or carry on

business, shall be deemed to

have been effectually given

and received on that day on

which such advertisement

appears.

28. The securities shall operate as

a residuary security for all

moneys, indebtedness and

liabilities due to the Borrower

to the Bank under any other

accounts.

29. The agreement shall become

binding on the Borrower on

and from the date of this

Agreement first accrue

written. It shall be in force

till all the moneys due and

payable under this

Agreement are fully paid.

----------------------

SCHEDULE ‘A’

SCHEDULE OF SECURITES

----------------

SCHEDULE ‘B’

Brief particulars of all other documents obtained by the Bank from the Borrower

Date of Documents Brief Description Brief Particulars of assets

secured by instrument

……………………………

Signature of the Borrower

(Not to be attested)

F110 C

Indian Overseas Bank

Indian Overseas Bank …………………………………………….. Branch

LETTER OF HYPOTHECATION

(FOR SECURING MACHINERIES / GOODS / BOOK – DEBTS)

No. ……………………………………………………………………….

Amount ………………………………………………………………….

Name …………………………………………………………………….

Indian Overseas Bank (hereinafter called “The Bank) through ……………

Branch or any other branch having at the request of ………………………

…………………………………………………………………………….

…………………………………………………………………………….

(hereinafter called “the borrowers”) agreed to grant and / or agreed to continue credit

facilities of.

Nature of Facility Amount

(Rupees)

1.

2.

3.

4.

5.

6.

7.

8.

aggregating to Rs. ……………………………………………………… (Rupees ………

………………………………………………………………………………… (only)

(hereinafter called “Credit facilities”) and / or agreed to enhance credit facilities of.

Signature ……………………………

Stamp

Nature of Facility Amount Amount

1. From Rs. to Rs.

2. From Rs. to Rs.

3. From Rs. to Rs.

4. From Rs. to Rs.

5. From Rs. to Rs.

6. From Rs. to Rs.

7. From Rs. to Rs.

8. From Rs. to Rs.

aggregating to Rs.

……………………………………….

(Rupees …………………

…………………………………………

……………………….. only)

(hereinafter called” enhanced credit

facilities”) to the borrowers repayable on

demand or otherwise and to be secured

by machineries / goods / book – debts to

be hypothecated to the Bank. IT IS

HEREBY AGREED by the borrowers

( the borrowers agreeing jointly and

severally) with the Bank as follows:

1. The expression “the Borrowers”

shall, when the borrower is

a) an individual, include his

or her heirs, executors

administrators and

assigns.

b) A firm, include the

partners for the time

being of the firm, their

heirs, executors

administrators and

assigns.

c) a Company, include its

successors and assigns.

d) a joint and undivided

Hindu family or a joint

family firm, include all its

coparcener.

e) an Association, corporate,

or incorporate, include its

successors and assigns

and all members and their

respective heirs

executors, administrators

and assigns.

2. That the machineries / goods /

book – debts (hereinafter called

“the Securities”) described in

general terms in the Schedule

hereto are hereby hypothecated

to the Bank as security and are to

be deemed to have been so

hypothecated as security to the

Bank for all monies for the time

being owing by the Borrowers to

the Bank and for the balance due

to the Bank at any time or

ultimately under the said credit

facilities / enhanced credit

facilities and for the payment of

all debts and liabilities mentioned

in the 16th clause hereafter. The

expression “the balance due to

the Bank” in this and subsequent

Clauses of this Agreement shall

be taken to include the principal

moneys from time to time due

under the said credit facilities /

enhanced credit facilities and

also all interest thereon

calculated from day to day at the

rate hereinafter mentioned and

the amount of all charges and

expenses which the Bank may

have paid or incurred in any way

n connection with the securities

or the sale or disposal thereof the

term machineries / goods which

have already been fixed or lying

loose in the premises at

………………………………..

…………………………………

…………………… and the

machineries / goods which are

hereafter be fixed in or brought

into the said premises in addition

to the machinery / machineries /

goods described in the schedule

or by way of substitution for and

in lieu of any machineries /

goods which may from time to

time be replaced or stored.

3. That the Bank shall from time to

time be at liberty to have the

Securities valued by an Appraiser

appointed by the Bank and debit

the Borrower’s account with the

fees and expenses of such

appraisement. Any such

valuation shall be conclusive and

binding on the borrowers.

4. That the Borrowers shall not

during the continuance of this

Agreement pledge, mortgage sell

or otherwise charge or encumber

any of the Securities for the time

being the subject or intended to

be the subject of this Agreement

nor do not permit any act

whereby securities herein before

expressed to be given to the Bank

shall be not anywise prejudicially

affected.

5. The Borrowers hereby undertake

that they will not at any time so

long as any money remains due

in respect of the said credit

facilities / enhances credit

facilities remove or cause or

permit to be removed all or any

of the said securities from the

said premises without the consent

in writing of the Bank having

been obtained first and that

borrowers will not encumber or

do any other act by means of

which the Bank’s security over

the said goods / machineries may

be anywise impaired or affected.

6. The Borrowers hereby empower

the Bank or anyone from time to

time authorised by them in that

behalf and without previous

notice to the borrowers to enter

the said premises for the purpose

of inspecting the said goods /

machineries therein and shall,

when required by the Bank, give

full particulars to the bank of the

hypothecated goods /

machineries.

7. The Borrowers shall at all times

during the continuance of this

Agreement and so long as any

money shall remain due and

owing to the Bank by virtue

hereof insure and keep insured

the securities to the full extent of

their value from to time against

fire risks in some insurance

Office or Offices approved by

the Bank and in the name of the

BANK and shall duly and

punctually pay the premia

payable in respect thereof atleast

one week before the same shall

have become due or payable and

shall handover the policy or

polices of insurance and the

receipts for premia paid in

respect thereof to the Bank, and

borrower agree not to raise at any

time any dispute as to the amount

or the insurable interest of the

Bank. If default shall be made in

payment of such premia or in

keeping the securities so insured

then and in such case it shall be

lawful for but not obligatory

upon the Bank to pay such

premia and to keep such

securities so insured and the

expenses incurred by the Bank

shall be debited to the borrower’s

account and shall be paid by the

borrowers as and when

demanded by the Bank.

8. That all sums received under any

such insurance as aforesaid shall

be applied in or towards the

liquidation of the balance due to

the Bank for time being and in

the event of there being a surplus

the same shall be applied as

provided by the 16th clause

hereof.

9. The borrowers shall pay all rents,

rates taxes and other outgoings in

respect of the premises in which

the securities are fixed or lying.

10. The borrowers hereby empower

the Bank or any one from time to

time authorized by them for the

purpose so long as any money

remains due to the Bank in

respect of the said credit facilities

/ enhanced credit facilities to take

possession of the machinery /

machineries or any of them and if

necessary to lock the premises

and / or to break open the

premises with or without notice

to the borrowers.

11. Interest / Commission / Discount

will be charged as per the loan

documents, if any, executed / to

be executed by the borrower

and / or as per the Bank Rules /

RBI guidelines.

12. That on demand by the Bank

borrower shall pay to the Bank

the balance then due to the Bank

together with all further charges

and expenses (if any) to the date

of payment provided that nothing

contained in this clause shall be

deemed to prevent the Bank from

demanding payment of the

interest for the time being due

without at the same time

demanding payment of the

balance due to the Bank

exclusive of such interest.

13. That if the borrowers fail or

neglect to repay to the Bank on

demand the balance due to the

Bank or in the event of the

borrower committing a breach or

making default in the observance

or performance of any of the

terms of the Agreement or in the

event of the borrowers

committing any act of

insolvency, becoming or being

adjudicated bankrupt or insolvent

of executing any Deed of

Agreement, composition, or

Inspectorship or in the event of

any distress or execution being

levied or enforced upon or

against any of the property of the

borrowers whether the said

property shall or shall not be the

subject of this security or

(whether the borrower are not a

Joint Stock Company) in the

event of any person, firm or

company taking any step towards

applying for or obtaining an

order for the appointment of a

Receiver of the Borrower’s

property or any part thereof or (in

the event of the borrowers being

a Joint Stock company) if any

person firm or Company, shall

apply for or obtain an order for

the winding up of the borrowers

or if any such order is made or

any step be taken by any person,

firm or Company in or towards

passing any resolution to wind up

the borrowers or if any such

resolution be passed which-ever

may first happen it shall be

lawful for the Bank forthwith or

at any time thereafter and

without any notice to the

borrower (without prejudice to

the Bank’s right of suit against

the borrowers) either by public

auction or private contract and

subject to such conditions as the

Bank shall think fit absolutely to

sell or otherwise dispose of all or

any of the Securities either

together or in lots or separately

and to apply the net proceeds of

such sale in or towards the

liquidation of the balance then

due to the Bank/

14. In the event of such sale or

realization as aforesaid, the

borrowers agree to accept the

accounts of the Bank for such

sale or realization signed by their

Manager/Accountant or other

duly authorized officer of the

Bank as sufficient proof of the

amount realized by the Bank and

costs charges and expenses

incurred in such sale or

realisation.

15. That if the net sum realised by

such sale be insufficient to cover

the balance then due to the Bank,

the Bank shall be at liberty to

apply any other money or

moneys in the hands of the Bank

standing to the credit of or

belonging to the borrowers or

any one or more of them in or

towards payment of the balance

due to the Bank and in the event

of there not being any such

money or moneys as aforesaid in

the hands of the Bank or in the

event of such money or moneys

being still insufficient for the

discharge in full of such balance

the borrowers promise and agree

forthwith on production to them

of an account to be prepared and

signed as in the 14th clause hereof

provided, to pay any further

balance which may appear to be

due by the borrower thereon

provided, always that nothing

herein contained: shall be

deemed to negate, qualify or

otherwise prejudicially affect the

right of the Bank (which it is

hereby expressly agreed that the

Bank shall have) to recover from

the borrowers, the balance for the

time being remaining due from

the borrowers to the Bank under

the said credit facilities/enhanced

credit facilities notwithstanding

that all or any of the Securities

may not have been realized.

16. That in the event of there being a

surplus available of the net

proceeds of such sale after

payment in full of the balance

due to the Bank it shall be lawful

for the Bank to apply the said

surplus together with any other

money or moneys belonging to

the borrowers or any one or more

of them for the time being in the

hands of the Banks in or under

whatever accounts as far as the

same shall extend in or towards

payment or liquidation of any

and all other moneys which shall

be or shall have become due

from the borrowers or any one or

more of them whether sole or

jointly with any other person or

persons, firm or company to the

Bank by way of loans,

discounted bills, letter of credit,

guarantees, charges or any other

demands legal or equitable which

the bank may have against the

borrowers any one or more of

them of which the law of set-off

or mutual credit would in any

case admit and whether the

borrowers or any one or more of

them shall become or be

adjudicated bankrupt or insolvent

or be in liquidation or otherwise

and interest thereon from the date

on which any and all advance or

advances in respect thereof shall

have been made at the rate of

respective rates at which the

same shall have been so

advanced.

17. That any surplus of the net

process of any such sale after

payment of all principal and

interest and other moneys due by

the borrowers or any one or more

of them to the Bank for in respect

of the said credit

facilities/enhanced credit

facilities or in anywise relating

thereto and of all other moneys

due from them to the Bank on

any account whatsoever as

aforesaid shall be paid to them by

the Bank when they shall or may

direct.

18. That the borrowers agree to

accept as conclusive proof of the

correctness of any sum claimed

to be due from them to the Bank

under this Agreement a statement

of account made out from the

Books of the Bank and signed by

the Accountant or other duly

authorized officer of the Banbk

without the production of any

other voucher, document or

paper etc.

19. That this Agreement is to operate

as security for the balance from

time to time due to the bank and

also for the ultimate balance to

become due under the said credit

facilities/enhanced credit

facilities and any account relating

to the said credit

facilities/enhanced credit

facilities is not to be considered

to be closed or the purposes of

security and the security is not to

be considered exhausted by

reason of any such account being

brought to credit at any time or

from time to time.

20. That this agreement is not to

prejudice the rights or remedies

of the Bank against the

borrowers and other securities

furnished/to be furnished by

them to the Bank irrespective and

independent of this Agreement.

21. That the Bank shall not be in any

way liable or responsible for any

damage or depreciation which

the goods/machineries for the

time being hypothecated to the

Bank and forming part of the

Securities the subject of this

Agreement or any part thereof

may suffer or sustain on any

account whatsoever while the

same shall at any time come into

possession of the Bank.

22. Borrowers shall also display

board(s) conspicuously at all

time in place(s) where the

securities are

kept/stored/available stating

distinctly that the goods

machineries in the premises are

under hypothecation to the Bank,

and or in case of machinery, have

an inscription to that effect

painted on the machines and in

default the Bank may itself cause

its board(s) to be displayed in the

aforesaid manner or paint the

inscription.

23. That on any default of the

borrowers in payment on demand

of any money hereby secured or

the performance of any

obligation to the Bank under this

or any other security or the

occurrence of any circumstance

in the opinion of the Bank

prejudicing or endangering this

or any other security, the Bank

shall be entitled at the borower’s

risk and expenses as Attorney for

and in the name of the Borrowers

or otherwise (The borrowers

hereby irrevocably appointing

the bank to be its Attorney) to

take possession and/or appoint

receivers of the said debts under

this security give notices and

demands to borrowers and third

parties liable that for and to

demand, sue for recover, receive

and give receipts and discharges

for the same and sell or realise

and discharges for the same and

sell or realise by public auction

or private contract or otherwise

dispose of all or any part of the

said debts andenforce, settle,

compromise submit to arbitration

or deal in any manner with any

of the said debts or claims under

his security without being bound

to exercise any of these powers

or liable for any loss in the

exercise thereof the borrowers

undertaking to transfer and

deliver to the Bank all relative

documents and papers and

agreeing to accept the Bank

accounts or receipts from

realisation under this security and

and to pay any shortfall or

deficiency thereby shown. The

borrowers agree to execute on

demand by the Bank such further

documents as may be required by

the Bank to vest the said debts or

any of them in the Bank to render

the same readily realisable or

transferable by the Bank at any

time. The borrowers hereby

declare that the said debts shall

always be their absolute property

at their sole disposal and free

from any prior charge or

encumbrance and declares that

nothing herein shall operate to

prejudice the Bank’s rights or

remedies in respect of any

present or future security,

guarantee, obligation or decree

for any indebtedness or liability

of the borrowers to the Bank.

That the borrowers will not

receive, compound or realise any

of the said debts nor do anything

hereby the recovery of the same

may be impeded, delayed or

prevented without the consent of

the Bank and will keep proper

books of account of its business

and will at any time when

required produce such books for

the inspection of the Bank and its

officers and agents and allow it

or them access thereto and to

make copies of or extract from

the same.

24. That any notice required to be

served hereunder shall be in

writing and shall be deemed to

sufficiently served if addressed to

the borrowers at their address

being registered (in the Bank or

in the event of no such address

being registered) at their last

known place of residence or

business and left at such address

or place or forwarded to them by

post at the address or place

aforesaid. A notice sent by post

shall be deemed to have been

served at the time when in due

course of post it would be

delivered at the address to which

it is sent.

25. That the Securities are within the

absolute disposition and control

of the borrowers and are free

from any prior charge in favour

of any other creditor.

26. That in case the borrowers shall

be a firm or members of a firm

no change whatsoever in the

constitution of such firm during

the continuance of this

Agreement shall impair or

discharge the liability of the

borrowers of any one or more of

them hereunder.

27. The borrowers hereby agree that

the security hereby created would

stand hypothecated for other

amounts due by the borrowers to

the Bank under any other account

eventhough the ultimate balance

under this Agreement is fully

repaid.

28. This Letter of Hypothecation is

Supplemental to the Letter of

Hypothecation

dated……………………..execut

ed for the credit facilities

aggregating

Rs………………………………

…………………………………

…………….which has been now

enhanced to

Rs……………………………….

Applicable in case of treating this

Letter of Hypothecation as

Supplemental.

IN WITNESS whereof the

borrowers have hereunto set their

hands this

…………………….day………

………….in the Christian year

Two T housand………………

Signature………………

****In case of any discrepancy

between the English version and

translated version in other

language, English version shall

prevail”

F 110 (E)

Indian Overseas BankSUPPLEMENTAL DEED OF HYPOTHECATION/PLEDGE

(Enhanced Limit with Same Security)

No. …………………………………………………….

Amount. ……………………………………………….

Name. ………………………………………………….

By this Agreement made at ……………………………………………..………………….

………………………… ……….…………… on the …………………............. day of

…………………………… …………………………….…...….20……………… which is

supplemental to the Agreement of Hypothecation/Pledge dated ….…………………......

(hereinafter called “The Principal Deed/s of Hypothecation/Pledge”) I/We the undersigned

hereby agree and undertake with Indian Overseas Bank that in consideration of the Bank having

at my request agreed with effect from …….………………………………………………..……

………………………………………………………………………………………………………

…………....…………………………………………………………………………

to advance an additional sum of Rs. ….……………………………………………………

in my/our loan …………………………………………………….......................... account/to

raise my/our cash credit limit from Rs. ………………………………………. To Rs.

………………….. Those the movables specified in the Principal Deed/s of

Hypothecation/Pledge shall with effect from the said ………..…………………... constitute

security to the Bank not only for the original advance/limit but also for the additional/increased

advance/limit of Rs. ……............. and that the Principal deed(s) of Hypothecation/Pledge shall

be read and constructed as if the advance/limit therein mentioned was

Rs……………………………………………………………………..……

AND I/WE confirm in all respects the Principal Deed/s of Hypothecation/Pledge.

IN WITNESS WHEREOF I/We have executed these Presents the day and year first

above written.

Stamp

(Not to be attested) Signature

In case of any discrepancy between the English version and translated version in other

languages English version shall prevail.

F 110 (F)

Indian Overseas Bank

Schedule of securities referred to in the foregoing agreement

SUPPLEMENTAL DEED OF HYPOTHECATION/PLEDGE

(Enhanced Limit with Same Security)

No. …………………………………………………….

Amount. ……………………………………………….

Name. ………………………………………………….

By this Agreement made at …..…………………………………………..…...…… ……………………………………………………………………………………………………………………….. on the ………..…………………………………………..……… ……………………………............................. day of ….……………………………… ……...…………200 which is supplemental to the Agreement of Hypothecation/Pledge dated ….………………….................................................... (hereinafter called “The Principal Deed/s of Hypothecation/Pledge”) I/We the undersigned hereby agree with Indian Overseas Bank that in consideration of the Bank having at my request agreed with effect from …………………..… to advance an additional sum of Rs. ……………………………………………………………………………...……………… ……………...………………………………………………………………………………………………………………………………………………………………………………………in my/our loan account/to raise my/our cash credit limit from Rs. …….……… to Rs……………………. …………………………………………………………………… all those the movables specified in the Principal Deed/s of Hypothecation/Pledge shall with effect from …...…………... constitute security to the Bank not only for the original advance/limit but also for the additional/increased advance/limit of Rs. ………..…………….... and that the Principal Deed/s of Hypothecation/Pledge shall be read and construed as if the advance/limit therein mentioned was Rs.………..........................................................................................................................AND FURTHER that all those the movables described in the Schedules hereunder together with the movables specified in the Principal Deed/s of Hypothecation/Pledge stand security AND FURTHER that all the provisions in the Principal deed/s Hypothecation/Pledge (including margin) shall apply for the purpose of the security conferred by this further Hypothecation/Pledge of the movables specified in the Schedule hereunder AND I/WE confirm in all respects the Principal Deed/s of Hypothecation/Pledge.

The Schedule

All those the movables consisting of …………………………………………………….. …………………………………………………………………………………………………………………..………………………………………………………………………………………………………

Stamp

……………..……………………………………………………………………………………………………………………..………………………………………………………………………………………………………………….….....………………………………………………………………………………………………

IN WITNESS WHEREOF I/We have executed these Presents the day and year first above written.

(Not to be attested) Signature

In case of any discrepancy between the English version and translated version in other

languages English version shall prevail.

F 110 G

Indian Overseas Bank

SUPPLEMENTAL DEED OF HYPOTHECATION/PLEDGE

(Enhanced Limit with Same Security)

From No

No. …………………………………………………….

Amount. ……………………………………………….

Name. ………………………………………………….

By this Agreement made at …..…………………………………………………….………………………………………………………………………………………………on the ………..………………………………day of ……...………………………....200 which is supplemental to the Agreement of Hypothecation/Pledge dated ….……………...……………...... (hereinafter called “The Principal Deed/s of Hypothecation/Pledge”) I/We the undersigned hereby agree with Indian Overseas Bank that in consideration of the Bank having at my/our request agreed to forbear from recovering the advance granted to me/us my/our said account, all those the movables described in this Schedule hereunder shall be security for the amount from time to time due by me/us to the Bank in my/our/loan/cash credit account with interest at the agreed rate and for all other the sums for which the movable specified in the Principal Deed/s of Hypothecation / Pledge stand as security under there terms thereof AND FURTHER that all the provisions in the Principal Deed/s Hypothecation/Pledge (including margin) shall apply to the security conferred by this further Hypothecation/Pledge of the movable specified in the Schedule hereunder And. I/We confirm in all respects the Principal Deed/s of Hypothecation/Pledge.

The Schedule

All those the movables consisting of ……………………………………………………… …………………………………………………………………………………………………………………..………………………………………………………………………………………………..……………………………………………..………………………………………………………..………………………………………………………….….....

IN WITNESS WHEREOF I/We have executed these Presents the day and year first above written.

……..……………………………

Signature

F 110 H

Stamp

Indian Overseas Bank

(Central Office: 762, Anna Salai, Madras 600 002)

LETTER OF HYPOTHECATION

(Agricultural Advances)

Stamp

This letter of Hypothecation executed at ………………. this …………...… day of ……………… 200……………..by….……………..………………………………………S/o/W/o/D/o ...…………………………….aged………………………residing at…………………………hereinafter called the Borrower(s) which expression wherever the context so requires or admits shall be deemed to include his/their heirs, executors, administrators, assigns and all persons deriving title from them in favour of Indian Overseas Bank, a Banking company wholly owned by Government of India under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Central Office at 763, Anna Salai, Chennai and a branch among other places at ……………………………………………………………………Hereinafter referred to as the ‘Bank’ which expression shall be deemed to include its administrators, successors and assigns witnesseth:

Whereas the borrower(s) is/are in need of financial assistance for the purpose of raising crops and/or purchase and/or repair of machineries/equipment and/or purchase of livestock and/or development and improvement of his/their land/farm by increasing production and minimizing expenditure, at the request of the borrower(s) the Bank has agreed to grant to the borrower(s) credit facility of Rs. ……………………….

……………………………………… (Rupees…………………………………………………………….only)cut of which Rs. ………(Rupees ………………………………………………………………….……only)for the purpose of raising crops described in Schedule A hereto and/or Rs. …….................................……………………………………… (Rupees …………………………..…………………………………………………………………….....only)Is for purchase and/or repair of (nature of goods/ machinery) described in Schedule B hereto and/or Rs…………………………………………………………………… (Rupees……………………………..………………………………only)Is for purchase of livestock valued at Rs.…………………………………….…(Rupees…………………………………………….only) described in Schedule C hereto and/or Rs…… …………… (Rupees ……………..……………………………………………………………………….only)Is for construction of structure on sinking of wells in/or development of the land specified in Schedule A hereto on the stipulating that apart from other securities offered or to be offered by way of equitable/ registered mortgage of creation of charge on agricultural lands and lands appurtenant thereto and other properties described in Schedule A hereto, the borrowings should be secured by hypothecation of crops raised and now standing/to be raised on the lands as specified in Schedule A and/or goods/machinery/livestock

purchased in future as specified in Schedule B and/or C hereto as the case may be hereinafter called ‘Hypothecated item’ and also such other documents as may be executed by the borrower(s) hereinafter referred to as “Security Documents”.

1. In consideration of the above premises the borrower(s) hereby agree/s undertake/s and declare/s that each and all borrowers present and future crops whatsoever and wherever raised or to be raised including standing crops on the land though not specified by name fully described in Schedule A hereto and/or all the hypothecated goods/ machinery/livestock described in Schedule B and/or C hereto not kept or hereafter kept from time to time at yards, godowns/premises of the borrower or kept in any other premises wheresoever whether in transit or in the possession or control or power of the borrower or of the bank and all other

hypothecated goods as may come into existence by natural increase, accretion of purchase or otherwise shall stand hypothecated to the bank as security for the due payment by the bank from time to time and ultimately and by virtue of this agreement.

2. The borrower/s hereby agree/s that he/they shall repay to the Bank the principal sum of Rs …………………………………………(Rupee ………. ……… ……………………………………………………………………………………...…only) On demand / by fortnightly/monthly/Quarterly/Half yearly / Annually on the due dates described in the Schedule D along with interest, commission, cost, charges and expenses etc., provided the Bank, at the request of any of the borrower(s) and/or in this absolute discretion may extend the time for repayment from time to time and may convert one type of loan into another type or a Demand Loan/Cash Credit /Overdraft into a Term Loan and the mode of repayment and rate of interest shall be stipulated and intimated by the Bank to the Borrower(s) and the new terms thus stipulated will be binding on the Borrower(s) and shall be deemed to have been incorporated in this Agreement and shall form part of this Agreement and the Borrower(s) agree9s) that any such extension of time or conversion will not in any way absolve any of the Borrower(s) from the borrower(s) liability to the Bank in any manner whatsoever and the nature and extent of the Borrower(s)’s liability and that of the security shall subsist and continue subject to such changes:

Provided further that on the occurrence of any circumstances in the opinion of the Bank hampering repayment of the loan as agreed upon by the Borrower(s) or the repayment period originally provided is found insufficient or in the case of advances to plantations where the area of plantation approved by the appropriate authority is reduced the Bank at the appropriate authority is reduced the Bank at the request of the

Borrower(s) and / or in its absolute discretion may reschedule the schedule of disbursement and/or repayment and the new schedule of disbursement and or repayment shall be stipulated and intimated by the Bank to the Borrower(s) and the new terms thus stipulated will be binding on the Borrower(s) and shall be deemed to have been incorporated in this agreement and shall form apart of this Agreement and the Borrower(s) agrees that any such rescheduling will not in any way absolve any of the borrower(s) from the Borrower(s) liability to the Bank in any manner whatsoever and the nature and extent of Borrower(s)’ liability and of the security offered shall subsist and continue subject to such modifications and/or rescheduling.

Provided further that in case of default in payment of any of the installments or interest or any part thereof of any other irregularity on the part of the Borrower(s), the entire balance outstanding with interest, commissions and charges shall, if the Bank so chooses, become payable at once and in lump. However, nothing in this proviso shall preclude the Bank from granting any extension of time to the Borrower(s) for repayment in lump or otherwise and it shall be deemed that the Bank has granted such extension of time at the request of the Borrower(s).

3. Interest will be charged at the rate of ________ % per annum over Prime Lending Rate of the Bank with monthly rests or such other rates and rests as may be notified by the Bank to me / us from time to time and shall be calculated and charged as the daily balance in the Bank’s favour due upon the said account until the same is fully liquidated and

shall be paid by the borrowers as and when demanded by the Bank.

Other to receive such notice for himself and for others. All dealings between the borrower/s and the Bank shall be governed by the rules of business of the Bank that are now in force, subject however to the condition that the Bank shall be entitled to charge overdue interest as mentioned in Clause 4(a) here below and also to compound interest every quarter/half year. The bank shall be entitled to compound the interest along with the principal outstanding in case of default of the borrower to repay the installments on due dates.

4. a) The borrower shall be liable to pay additionally, interest at the rate of 2% or at the rate specified by the bank from time to time over and above the normal interest on the amount outstanding upon the happening of any of the following events, namely.

1. When loans/installments are not repaid on the due dates.

1. When the account becomes irregular due to

a. Excess drawings over drawing power/sanctioned limit.

b. non-submission of stock statements.

c. non-submission of quarterly/ half yearly financial data causing delay in review of

limits, consequently the limits expire and the advances still continue.

2. Failure to honor specific borrowing covenants, inter alia relating to diversion of funds, making other borrowing arrangements, taking up new projects or large scale expansion, merger etc.,

3. Excess borrowings arising out of excess current assets as recommended by RBI.

4. Non-payment/non-acceptance demand/usance bills of exchange on presentation/ due dates.

4. (b) Applicable when the loan is repayable in equated instalments comprising of both principal and interest.

The Borrower/s hereby agree/s that he/they shall repay the Bank the principal sum together with applicable interest in equated instalments as mentionedn in Schedule D and in case of delay in repayment of any instalment he/they shall pay overdue interest on the defaulted amount at Rs. …………….Per Rs. 100 per month till the date of the payment of the instalment.

5. The borrower/s hereby undertake/s that he/they shall use the amount only for the purpose for which it is sanctioned. Further, the borrower/s agree/s that if the bank suspects or has reason to believe that the borrower/s has/have violated or is/are violating this understanding, the bank may recall the loan amount or any part thereof at once notwithstanding anything to the contrary contained in this agreement or any other agreement.

6. That in the event of the Borrower committing breach of any of the terms and conditions stipulated by the Bank or misutilisation, non-utilisation or only partial utilisation of the proceeds of the loan, notwithstanding the stipulations if any that the borrower is allowed to pay the amounts due in instalments the bank shall have right to demand payment of entire liability forthwith and to take such other steps as may be necessary to recover the same by enforcing the securities.

7. That the security offered by these presents shall be continuingsecurity for the balance ultimately due to the

bank and it is not to be considered as closer for the purpose of this security and he security is not to be considered as exhausted by reason that my loan/advance is cleared or the

account/s is/are brought to credit at any time or from time to time and shall ensure to the benefit of the Bank until the Borrower/s fully satisfy/ies on demand by the Bank all and every sum or sums of money which are now or at any time owing to the Bank at any offices or in any account whatsoever whether solely due from the Borrower(s) or jointly with other or others as Principal or as surety and whether indebtedness is in respect of the amount presently payable or not including all liability arising out of encashing cheques, hundies, pronotes, bills of exchange and other negotiable instruments drawn, accepted. ndorsed or guaranteed by the Borrower/s interest on all advances at the rates agreed upon in the several instruments, commission Banking charges, etc., costs, expenses incurred by way of rents, taxes, duties, maintenance, management and inspection of any other asstes charged in favour of the Bank.

8. The Borower/s hereby declare’s and confirm that he/they is/ are

the absolute owner/s of the hypothecated goods and/or is/are in possession of the lands mentioned in Schedule Ahereto and is/are raising crops on the said land for his/their benefits. The borrower/s agree/s to hold the hypothecated goods and otheraccessories as trustees and agents for and on behalf of the Bank. the borrower/s expressly undertake/s not to mortgage, pledge, charge, hypothecate, sell

or cause to be sold/disposed of in any manner, to keep the hypothecated goods in good in good condition and to make noalteration thereon, deletion or addition thereto without the previous written consent of the Bank. The hypothecated goods, sales realisations and the insurance benefits and proceeds of goods shall be held by the borrower as trustee for the Bank and paid to the Bank as and when received by the Borrower. The security afforded by this agreement shall remain in force until all sums due to the Bank by the Borrower either by way of this loan or otherwise are fully paid or adjusted.

9. That the Bank shall be at liberty at their absolute discretion to reduce the limit or to call for such margin as they shall deem fit for any reasons whatsoever or for any anticipating shortage of said crops, reductionin the market value or for any other reasons whatsoever at any time during the continuance of these presents.

10. The borrower/s hereby request/s the Bank to credit the amount under …........……....................... loans to his/ their SB/CA/OD account /remit the amount on his/ their behalf to concerned supplier//seller at his/their cost risk and responsibility and the Borrower/s shall and the Bankshall not be considered as liable for any default or non-supply ordefective implements/ inputs/machinery/ livestock to any extent if the said supplier/seller does not comply with any of the

terms and conditions as agreed to or at anytime with the Borrower/s alone shall be liable for any loss, damage or claim and the Borrower/s shall not be entitled to require the Bank to proceed against the supplier/seller for recovery of any monies receivable by him/them or the claim diminution of liability or discharge from liability in respect of any sums advanced by the Bank under the Borrower’s loan account/s.

11. The borrower/s hereby request/s and authorise/s the Bank to debit an amount of Rs. ……………………… (Rupees …………………………….………………………………………To his/their SB/CA A/C. No. ………with them towards margin for the loan hereby sasnctioned and to deal with the same in the manner agreed to in clause 10 herein aqbove. The borrower/s further agree/s to maintain sufficient balance in his/their aforesaid account for this purpose.

12. This agreement shall continue to remain in force and be avialble to the Bank at all times and the Bank shall be at liberty at its absolute discretion to grnat such further advances as it deems fit under this agreement and such advances shall stand secured and covered under this agreement until this agreement is specifically cancelled in writing with respect to future

transactions only and without prejudice to the antecedent rights and obligations of the respective parties to this agreement.

13. In the event of the Borrower/s availing any further or additional loans fro the Bank either under anyone or more of the heads of account or under any other caregory the Borrower/s hereby expressly agree/s that the Bank shall have the right of security/ies as provided in this agreement on the asstes purchased/to be purchased by availing further and/or additional loans and such asstes shall automatically become and stand hypothecated to the Bank as security for the due repayment of all the amounts outstanding with interest., cost expenses and charges including overdue interest as if such security is given under this agreement.

14. That if the Borrower/s be more than one individual, each one or any of them is authorized and empowered by the othr/s of them including the co-obligant/surety to admit and acknowledgement his/their liability to the Bank by any payment into the accounts/s or by way of express writing in any manner or otherwise and any such admission and acknowledgement of the laibility by one or more of them including the co-obligant/surety sahll be construed to have been made on behalf of each of them and shall save limitation against all of

them jointly and/or severally for the purpose of law of limitation.

15. The Borrower/s hereby agree/s and

undertake/s the following:

a) To pay all taxes, rates and rents regularity and in time and to meet all charges relating to maintenance and all outgoings in respect of hypothecated goods and also the premises where they may be kept and to keep the goods free from distress attachments, sale or the like.

b) To pay to the Bank on demand all costs charges and expenses anywise incurred by the bank in the negotiation, execution or carrying into effect of this agreements or in relation to the exercise of any powers hereto or other power in relation to any act, deed, matter or things arising out of this agreement and incidental thereto and also to pay interest thereon at the rate and in the manner aforesaid.

c) To indemnify and keep the Bank indemnified at all times.

d) No to obtain any financial assistance from any other person/institutions whil any liability with the

Bank is outstanding.

e) To execute and completed any other records and create such other or additional charge, mortgage or lien in favor of the Bank whenever called upon by the Bank to do so at his/their expenses.

f) To arrange for registration of charge/lien or hypothecation in favour of the Bank with the prescribed authorities within the time prescribed or allowed by the Bank.

g) To sell the cardamom/coffee through the registered auctioner/coffee board/ curers with whom his/their power of attorney is registered. A copy of the Registered Power of Attorney is enclosed/will be submitted within 30 days.

16. In the event of the Borrower failing to pay the balance or any other moneys due to the Bank under or by virtue of this agreement or in the event of the Borrower becoming bankrupt or if for any reason the Bank thinks the security is in jeopardy the Borrower undertakes to deliver to the Bank on demand made by the Bank the said hypothecated goods without raising any question to enable the Bank to sell or otherwise dispose of the same for the purpose of realisation of the balance due.

17. The Bank and their Officers or nominees shall be entitled at any time but at the Borrower’s risk and expenses and if need be as Agents or Attorneys for and on behalf of the borrower and the borrower shall render to the bank or its Officers or its nominees all such facilities as may be required for any of the purposes herein below mentioned viz., to enter, repose and remain at any place or places where the hypothecated goods may be kept to view, inspect and value the same and to make any inventories thereof or to take possession of the said hypothecated goods, to use or utilise the same for the purposes of plying, to sell or use otherwise dispose of all or any of the hypothecated goods by public auction or by private treaty. The banks shall have the above said rights without in any way being bound to exercise any of the rights or being liable for any loss occasioned thereby and also without prejudice to Bank/s rights or remedies against the Borrower personally and to apply the net proceeds of such sale or other dealings after deduction of the expenses incurred towards the liquidation of all sums due by the Borrower in his loan accounts with the Bank. The Borrower hereby agrees to accept the Bank’s account of any such sale or realisation and the Borrower shall not be entitled to raise any question or dispute about the sale or the amount realised. If net sales proceeds of the hypothecated goods or the net

proceeds of the policies hereinbefore mentioned shall be insufficient to cover the amount due by the Borrower, the Bank shall be at liberty to apply any other money or moneys in the hands of the Bank standing to the credit or belonging to the Borrower or any one or more of them towards payments of the Balance due to the Bank and in the event of there being no such money or such moneys being still insufficient to discharge such balances in full the Borrower promises to forthwith on production to him a statement of the account by the Bank, to pay such further balance as may be due by the borrower thereon.

18. In the event of there being a surplus In such sale proceeds or other realisation of the hypothecated goods after payment in full of the balance due to the Bank, it shall be lawful for the Bank to retain and apply the said surplus so far as the same shall extend in or towards payment or liquidation of any other moneys due from the Borrower by way of loans, discount of bills, Letter of Credit, Guarantee Charge of any other demand, legal or equitable against the Borrower or any other indebtedness of the Borrower or any other indebtedness of the Borrower future or contingent and whether matured or not due solely by the Borrower or in conjunction with any person or persons which the law of set off or mutual credit would in any case admit, together with interest on the said claims at such rates as the said documents provide and after adjustment of all liabilities as stated above, the surplus if any shall be held by the Bank at the disposal of the Borrower.

19. Nothing herein contained shall operate or be deemed to negative, quality or otherwise prejudicially affect any of the Bank’s rights or remedies (which it is expressly agreed the bank shall have) in respect of any present or future securities, guarantees, obligations or decree for any indebtedness or liability of the borrower to the Bank Whether the said securities referred to herein are renewed/altered to any extent or modified in any manner.

20. The Borrower/s hereby authorise/s the Bank to debit the loan account and/or SB or any account at its absolute discretion all charges, cost, etc, as mentioned in clause 15 hereof and the Borrower/s hereby undertake/s to maintain sufficient balance at all times in his SB or other account as the cse may be to enable the bank to appropriate such amounts as may be necessary from time to time.

21. The Borrower/s hereby expressly undertake/s and declare/s as

follows:

a) That he/they shall take insurance cover against such risk as may be directed by the Bank with Bank Clause appended there to at his/their cost and in case this cover against such risks is not taken he/they hereby authorise the Bank to take such insurance cover at borrower’s risks and cost and to debit the premia payable on the policy

renewed from time to time to his/their account with the Bank which he/they hereby undertake to repay on demand made on borrower/s failing to repay the amount so debited he/they hereby declare and agree that he/they shall be liable to pay interest at the rate charged or to be charged by the Bank from time to time and the Bank shall be entitled to hold the policy referred to as security until payment is made in full and to the satisfaction of the Bank.

b) The Bank is at liberty and is bound to effect such insurance, at the risk, responsibility and expenses of the borrower with any insurance company only to the extent of the value of the security as estimated by the Bank and that in the event of insuring the security, the Bank shall not be considered or deemed to be responsible or liable for non-admission or rejection to the claim wholly or in part whether the claim is made by the bank or the Borrower.

c) That he/it shall himself/itself of his/its own accord take all steps like initiation of filing

claims/furnishing necessary information to the Bank/ Insurance Company without being informed of details of loss/damage for any reasons whatsoever.

d) In the event of claim either in whole or in part on account of loss/damage to the security the Borrower shall be liable to repay to the Bank the entire outstanding liability without requiring the Bank to proceed in the first instance against the insurance Company at the Borrower’s cost and responsibility and to make a demand on him/it only in the event of non-recovery of the amounts from the Insurance Company. In the event of non-settlement of claim the Bank may at its absolute insurance Company without being under any obligation to do so or require the borrower himself/itself to take action in which the Borrower shall not be entitled to question the decision of the Bank.

e) If the Bank does not lodge any claim under the Policy within the time limit prescribed under such policy the Bank shall not filing any claim or suit for recovery of the

insured amount against the Insurance company or any other person.

22. The Borrower/s hereby declare/s and authorise/s the Bank to take insurance cover against such risk as may be deemed fit by the Bank under comprehensive Crop Insurance scheme or any revised scheme introduced by the Government of India at borrower/s risk and cost and to debit the premia payable under the Policy/ies renewed from time to time to his/their account with the Bank and remit to GIC which he/they hereby undertake/s to repay on demand made on him/them failing to repay the amount so debited, he/they hereby declare and agree that he/they shall be liable to pay interest at the rate charged or to be charged by the Bank from time to time and the Bank shall be entitled to hold the policy referred to as security until payment is made in full and to the satisfaction of the Bank.

23. In case the loan is eligible for Guarantee cover under Small Loans Guarantee Scheme 1971/Small Loans (SSI) Guarantee Scheme 1981 of DICGC, the borrower/s is/are agreeable to bear the guarantee fee on the said loan at the rates specified from time to time in accordance with the rules relating thereto and hereby expressly authorise/s the Bank to debit his/their SBI/CA/Loan A/c. or such other account with the said guarantee fee and undertakes to maintain sufficient balance in his/their SB/CA or

such other account for the above purpose.

24. The Borrower(s) hereby give/s his/their consent for the loans being recovered as a public demand/moneys is terms of any legislation relating to recovery/ies thereof where such consent is necessary under such legislation and hereby deal in any manner with any rights, debts, claims of the Borrower/s relating to the security.

In Witness Whereof the Borrower/s have hereunto set their hands on the date mentioned above.

Place :Date :

Borrower(s)

The contents of this deed and the Bank’s rules of business have read by/read over/explained to me/us and I/We have understood the same and signify my/our consent to abide by the same.

Borrower(s)

SCHEDULES

SCHEDULE ‘A’

Village. Taluk & District Survey No. Extent Crops hypothecated Estimated

Value

BORROWER(S)

SCHEDULE ‘B’

Sl.No. Trade Name & Mark Model New/Old Engine Regn. Value Location

Description of the (Year) Description HP No./ No. Installation

Goods/machinery Chassis No.

SCHEDULE ‘C’

Sl.No. Nature of Livestock(Cow, Buffaloes, etc.) Breed/identification Mark Age Value

BORROWER(S)F 100(i)

SCHEDULE ‘D’

Due Date Amount Rs. Due Date Amount Rs.

In case of any discrepancy between the English version and translated version in other languages. English version shall prevail.

Place :

Date ;

BORROWER(S)

F 110(i)

Letter to be obtained from the borrower(s) furnishing the details of hypothecated security

Place:

Date:To

The ManagerIndian Overseas Bank……………………………………..Branch

Dear Sir,

Credit facility extended to me/us

When I/We have executed Letter of Hypothecation dt. …………………………………containing the terms of the credit facility and covenants relating to the hypothecated security. The details of the security were not available at the time of execution since the security was purchased by me/us only after availing the loan from the Bank. Further to the said letter of hypothecation. I/We furnish the details of the hypothecated security, which may be treated as incorporated in the Schedule of the said Letter of Hypothecation.

SCHEDULE ‘B’

Sl.No. Trade Name & Mark Model New/Old Engine Regn. Value LocationDescription of the (Year) Description No./ No. InstallationGoods/machinery HP Chassis No.

SCHEDULE ‘C’

Sl.No. Nature of Livestock(Cow, Buffaloes, etc.) Breed/identification Mark Age Value

Yours faithfully,

BORROWER(S)F 110(i)

Gurantee for Cash Credits etc.

To

Indian Overseas Bank………………………………………

Gentlemen,

1. In consideration of your at my/our request making and agreeing to make loans and advances or otherwise giving credit to ………………………..……………………………………………………………………of (hereinafter referred to as “the principal”) whether by advancing him/them money or by allowing him/them to overdraw his/their account or by granting to him/them an advance by way of cash credit or otherwise from the ………………… day of …..…………………………………… until closed by you I/We the undersigned …………………….……………………………………………………….……. jointly and severally guarantee the payment upto but not exceeding in the aggregate the sum of Rs. …………………………………………………………………..and of all moneys (which terms shall include all interest due or to become due in respect of the said advances from the date or dates of the advances until repaid at the rate charged by you from the time of such advances with quarterly interests and your usual Banker’s charges) which are now or shall at any time hereafter

during the continuance of this guarantee be due

from the principal to you either for loans or advances in respect of which the principal shall or may be solely or jointly with others liable to you and of all costs, charges and expenses which you may incur in enforcing or obtaining payment of all such.

2. And I/We expressly declare that this guarantee shall be a continuing guarantee to you for any amount from time to time not exceeding as aforesaid the said sum of Rs. …………………… ……………………………………………………………………………………………………… together with interest and charges thereon due on the said account and whether or not from time to time there be nothing owing on the said account of the same be from time to time brought to credit.

3. And I/We hereby consent and authorise and declare that, you may at any time or times and at all times grant pr allow time or indulgence to or compound with the principal me/us without

Stamp

affecting this guarantee and that all compositions and payments received by you from the principal or from any other person or parsons, firm or company or his or their estate or estates shall be regarded for all purposes as payment in gross and you shall be entitled to prove against the estate of the principal should the principal become bankrupt or insolvent in respect of the whole of the principal’s indebtedness to you without any right on the part of me/us on any or either of us or my/our or any of my/our representatives or any representatives of any or either of us to stand in your place in respect of or to claim the benefit, of any such compositions or payments or any security held by you until you shall apply to and secure any ultimated balance which shall remain due to you within the limit aforesaid.

4. And it is expressly provided and declared that this guarantee shall not be affected by your taking or varying or giving up any securities held by you, or by any variation in the rate of interest or margin or other terms of sanction.

5. And I/We further declare that this guarantee shall not be affected by death of all/ any of us but shall remain in full force and effect until cancelled by me/us and shall continue to be binding notwithstanding any changes which may from time to time take place in the partners or

constitution of my/our firm or in the partners or constitution of the principal.

6. And I/We further agree that any entries which may be in your Banking Books kept by you and made in the ordinary course of Banking business may be adduced by you and shall be conclusive evidence against me/us or any or either of us and my/our or any or our representatives or representative or the representatives of representative of any or either of us of the various transactions therein contained and of the amounts from time to time hereby appearing due from the principal to you and shall not be disputed or questioned by me/us or any or either of us and my/our or any or either of our representatives or representative or the representatives of representative of any or either of us.

7. And I/We further agree that the amount hereby guaranteed shall be due and payable to you on demand after notice requiring payment of the same shall have been delivered or sent through the post by registered letter addresses to me/us at my/our representative’s last known place/places of abode or business in ……………………………...

8. The guarantee shall bind my/our representative heirs, executors and administrators and shall be enforceable by you and your assigns.

9. And it is further agreed and declared that this guarantee shall be a continuing guarantee irrespective of any sum or sums which may be paid into the account of the principal at any time during the continuance of the guarantee and shall remain in force until cancelled by my/our written authority, the amount then due to be subject to this guarantee and secured thereby.

10. And I/We hereby expressly declare that this guarantee and the powers and provisions herein contained are in addition to and not by way of limitation of or substitution for any former or other guarantee or guarantee heretofore given to you by me/us (whether jointly with some other persons or alone) and now existing uncancelled and that this guarantee is not intended to and shall not revoke or limit such other guarantee or guarantees.

11. It is also agreed that any admission or acknowledgement in writing by the principal debtor of the amount of indebtedness of the principal debtor in relation to the subject matter of this guarantee or any judgment or award which may be obtained by you against the principal by debtor shall be binding on me/us and I/We accept the correctness of any statement of account served on the principal debtor which is duly certified by any Manager or Officer of the Bank, and shall be binding and conclusive as against me/us also, and I/We further agree that in making an acknowledgement or making a payment he shall be treated as my/our duly authorised agent for purpose of Indian Limitation Act of 1963.

………………………………

Place :

Date :

F (lll)

Guarantee for cash credits etc.

To

Indian Overseas Bank………………………………..Gentlemen,

1. I/we in consideration of

your agreeing at my our request

to give ……………………………………………

…………………………………………………

of…………………………………… (hereinafter referred to

as “The principal”) time for

repayment of his/their dues to

the bank upto this date and

further for continuing to make

loans or advances or otherwise

giving credit to him/them whether

by advancing him/them monies or

by allowing him/them to

overdraw his/their account by

granting to him/them an advance

by way of cash credit or

otherwise, I /We the

undersigned ………………………

………………………………..

jointly and severally guarantee

the payment upto but not

exceeding in the aggregate the

sum of Rs…………………..and of

all monies (which terms shall

include the principal advances

already received by the principal

and all interest due to become

due in respect of the said

advances from the original or first

of the date or dates of the

advances until repaid at the rate

charged by you from the time or

such advances with monthly

/quarterly /half-yearly rests and

your usual Banker’s charges)

which are now or shall at any

time hereafter during the

continuance of this guarantee be

due from the principal to you

either for loans or advances in

respect of which the principal

shall or may be solely or jointly

with others liable to you and of all

costs, charges and other

expenses which you may incur in

enforcing on obtaining payment

of all such.

2. And I/We expressly

declare that this guarantee

shall be a continuing

guarantee to you for any

amount from time to time

not exceeding as aforesaid

the sum of

Rs…………………………

……………………………...

together with interest and

charges thereon due on

the said account and

whether or not from time to

time there be nothing

owing on the said account

or the same be from time

to time brought to credit

3. And I/We hereby consent

and authorise and declare

that, you may at any time

or times and at all times

grant or allow time or

indulgence to or

compound with the

principal or me/us without

affecting this guarantee

and that all compositions

and payments received by

you from the principal or

from any other person or

persons firm or company

or his or the estate or

estates shall be regarded

for all purposes as

payment in gross and you

shall be entitled to prove

against the estate of the

principal should the

principal become bankrupt

or insolvent in respect of

the whole of the principal’s

indebtedness to you

without any right on the

part of me/us on any or

either of us or my/our

representatives or any

representatives of any or

either of us to stand in

your place in respect of or

to claim the benefit of any

such compositions or

payments or any security

held by you until you shall

have received the full

amount of all your claim

against the principal

which are covered by this

guarantee and that this

guarantee shall apply to

and secure any ultimated

balance which shall

remain due to you within

the limit aforesaid.

4. And it is expressly

provided and declared that

this guarantee shall not be

affected by your taking or

varying or giving up any

securities held by you, or

by any variation in the rate

of interest or margin or

other terms of sanction.

5. And I/we further declare

that this guarantee shall

not be affected by my

death/our death but shall

remain in full force and

effect until cancelled by

me/us and shall continue

to be binding

notwithstanding any

changes which may from

time to time take place in

the partners or

constitution of my/our firm

or in the partners or

constitution of the

principal.

6. And I / we further agree

that any entries which

may be in your Banking

Books kept by you and

made in the ordinary

course of Banking

business may be adduced

by you and shall be

conclusive evidence

against me/us or any or

either of us and my /our or

any or either of our

representatives or

representative, of the

various transactions

therein contained and of

the amounts from time to

time hereby appearing

due from the principal to

you and shall not be

disputed or questioned by

me/us or any or either of

us and my/our or any or

either of our

representatives or

representative.

7. And I/we further agree

that the amount hereby

guaranteed shall be due

and payable to you on

demand after requiring

payment of the same shall

have been delivered or

sent through the post by

registered letter addressed

to me/us at my/our

representative’s last

known place / places of

abode or business in

………………………

8. The guarantee shall bind

my/our representative

heirs, executors and

administrators and shall be

enforceable by you and

your assigns.

9. And it further agreed and

declared that this

guarantee shall be

continuing guarantee

irrespective of any sum or

sums may be paid into the

account of the principal at

any time during the

continuance of the

guarantee and shall

remain in force until then

due to be subject to this

guarantee and secured

thereby.

10. And I/we hereby

expressly declare that this

guarantee and the powers

and provisions herein

contained are in addition

to and not by way of

limitation of or substitution

for any former or other

guarantees or guarantee

heretofore given to you by

me/us (whether jointly

with some other person or

alone) and now existing

uncancelled and that this

guarantee is not intended

to and shall not revoke or

limit such other guarantee

or guarantees.

11. It is also that any

admission or

acknowledgement in

writing by the principal

debtor of the amount of

indebtedness of the

principal debtor in relation

to the subject matter of

this guarantee or any

judgment or award which

may be obtained by you

against the principal

debtor shall be binding on

me/us I /We accept the

correctness of any

statement of account

served on the principal

debtor which is duly

certified by any Manager

or Officer of the Bank,

and shall be binding and

conclusive as against

me/us also and I/we

further agree that in

making an

acknowledgement or

making a payment he

shall be treated as my/our

duly authorised agent for

purpose of Indian

Limitation Act of 1963.

Place……………………….

Date……………………….

.

……………………F. III.A

Irrevocable Undertaking to Guarantee---------------------------------------------------(should be stamped as an agreement)

From

Mr. / Mrs.

Director _________________________ Ltd Company

To

Indian Overseas Bank

______________ Branch

Dear Sirs,

Irrevocable Undertaking to guarantee_____________________________

In consideration of your making and / or continuing advances to

M/s. _________________________________ Ltd of which I am one of the Director and inconsideration of your deferring obtention of my personal guarantee at my / company’s request, I hereby undertake that whenever required by you I shall execute and deliver to you Irrevocable and unconditional guarantee in all forms prescribed by you, for payment and discharge by the above company of you of the sum of Rs. Rupees …………………………………………………………………………………… and interest and costs, charges and expenses and other moneys due and payable by the above company to you under or in respect of the loan facilities advanced or to be advanced to the above Company. This undertaking is irrevocable and unconditional

Place : Signature (Director of ……………… Ltd)Date :

Stamp

Indian Overseas Bank ………………… Branch

………………………..19………………………………………………………………………………

Dear Sirs/ Madam,

We beg to inform you that your Cash Credit / Loan /Overdraft account

jointly and severally with ………………………………………………………………..

………………………………………………………………………………………………

has been balanced to 31st March /30th September ………………….. and that the

balance of Rs…………………………. (Rupees ……………………………………....

…………………………………………….) has been carried forward to your debit.

Kindly sign the confirmation below and return the form intact. In case

the correctness of the balance is not confirmed within one month from the date

of this letter, the balance carried forward will be treated as acknowledged by

you as correct.

Please notify change of address, if any.

Yours faithfully,

Deputy Manager /Manager

Indian overseas Bank.

…………………………….

I hereby confirm the correctness of the balance

Signature ……………………..

Full Address …………………..

……………………………………

……………………………………

Date ……………………………….. Signature

F237A

Revenue stamp

Indian Overseas Bank

………………………….. Branch

Ref. No.: Date …………………….

To

Dear Sirs/Madam,

Credit Facilities –a/c ……………………….

We would like to inform you the outstanding debit balance position under the

various credit facilities availed by M/s. ……………………………………………..

from the Bank.

Nature

of Credit

Facilities

Debit

balance

of Rs.

As

on

Date

Whether

Interest is

included

upto date

Rate of

Interest

applied

lastly

Compounding

at quarterly/

Half yearly/

yearly

If interest is

not applied

due to

irregularity

overdue

interest will

apply from

Date / Rate of

Interest

KINDLY sign the confirmation below and return the form intact. In case

the correctness of the balances is not confirmed within one month from the date

of this letter, the balances carried forward will be treated as acknowledged by

you as correct.

Please notify the change of address, if any.

Yours faithfully,

Manager

To

Indian Overseas Bank PLACE:

…………………………. Branch DATE :

I/We hereby confirm the correctness of the balance(s), which is/are due and

payable by me/us to the bank, as borrower(s) * / guarantor(s) *

Revenue Stamp

Signature of the Borrower(s)* / Guarantor(s) *

Delete the inapplicable.

(F 237 B)

SHIPPING LIEN

The Manager

Indian Overseas Bank

…………………………………..

Dear Sir,

I / we have contracted to ship to …………………………….. the following

goods to be marked and numbered as under

Marks Description of goods Name of Ship Invoice value

During preparation for shipment and

until placed on Board, the said

goods will be stored in

…………………………………………

………. pending shipment of the

said goods. I/we desire to have an

advance of ………….. from you in

open account and in consideration

of such advance. I /we agree and

undertake while having control of

the said goods to hold the same on

your account and under lien to your

Bank and as Trustee, Agent and

Bailee therefore, and to deal with

them as the property of your Bank

and on shipment of the said goods,

to hand over to you duly endorsed

Bills of Lading for the same for

adjustment of the amount advanced

by the realised proceeds of drafts

Stamp

sold against the said shipment. And

I/we undertake not to deal with the

goods in any other manner and that

the goods shall be insured with

……………………… on your behalf

and in trust for you.

I /we further undertake

that notwithstanding anything

hereinbefore contained I/we will

demand your Bank at any time

before shipment deliver possession

of the said goods to your Bank and

I/we authorise your Bank for the

purpose of taking possession

thereof to entry my/our godown or

other place where the goods may

and I /we agree that your Bank may

at any time receiving possession

thereof and without notice to the

further authority from me/us sell the

said goods in such manner and for

such price as your Bank shall think

and apply at your discretion the net

proceeds of sale in towards

satisfaction of any or all the

amount owing by me/us to your

Bank. And I/we further agree that

your Bank shall have power to sell

and apply the net sale proceeds of

the said goods in like manner at

any time after receipt by your Bank

of the relative Bills of Lading.

I /we further declare that

we are not indebted to anyone else

in respect of the goods and that the

same are free from any claim,

charges demands whatsoever save

the security hereby created.

Yours faithfully,

Place : ……………………

Date :……………………..

………………..

F251

ADVANCES AGAINST GOODS AWAITING SHIPMENT

(PACKING CREDIT)

To

Indian Overseas Bank

………………………………

1. In consideration of your

making advance to me/ us

from time to time by way of

Cash Credit /Demand Loan

upto the extent of Rs. ……..

(Rupees …………………..

only). I/we hereby agree that

all such advances taken by

me/us from you in the said

Cash Credit/Demand Loan

Account shall be applied by

me/ us solely in the purchase

of (hereinafter called the said

goods”) and until such

advances have been repaid

to you with interest, costs,

charges and expenses either

by proceeds of the bills of

exchange sold to you or in

cash, all the said goods in

my godowns and shall be held

by me/us as agent and in

trust for you, and kept fully

insured by me/us against

loss by fire, strike, rots and

civil commotion, I/we holding

such insurance and all

moneys receivable there from

in trust for you and handing

you forthwith all amounts

received from the insurance.

I/we further agree that all the

said goods as shall be

purchased by means of such

advances and delivered by

me to any person for

processing and finishing shall

be held by such processors

in trust for you and I shall

undertake to proceed no lien

letter from such processor to

that effect or as may be

required by the bank

including right of access for

any of the authorised

officials of the bank for the

purpose of inspecting and

taking account of the said

goods, and that it shall be

kept fully insured under terms

referred as above.

Stamp

2. I/we agree that immediately

upon shipment of the said

goods or any part thereof

I/we shall hand you the

shipping documents duly

endorsed including bill or

lading invoice and policy or

policies of insurance against

marine and war risks.

3. I /we agree that the proceeds

of the bills negotiated by

you against such shipments

shall be held by you in

repayment of the above

named advances together

with interest at the rate of

………………. percent over

below the prime lending rate

of the bank with a minimum

of ………… percent per

annum and I/we further agree

that the shipment will be

made within the stipulated

period from date of availing

the advance from time to time

and if I/we fail to export the

goods within the said time,

I/we shall pay the advances

together with interest at the

rate of …………. percent over

/ below prime lending rate of

the bank.

4. Interest shall be calculated

and charged as the daily

balance in the Bank’s favour

due upon the said account

until the same is fully

liquidated and shall be paid by

the borrowers as and when

demanded by the Bank.

5. The intention of this

agreement is that you are to

be entitled, to the said goods

as security for the advance

which you shall have granted

to me/us. And I /we hereby

undertake to deliver them to

you at any time in order to

bring them into your

possession, and you shall be

authorised to enter my/our

premises and godowns at

anytime in order to take

possession of the same to

which I /we shall give you

such assistance as you may

require from me/us, and I/we

authorise you to treat all such

goods as shall have come into

your possession and as the

case my be the documents

of title thereof, which I/ we

shall have handed to you as

if you had all my/our rights to

them as absolute owners or

otherwise and in case I/we

fail to fulfill and of my/our

obligations to you to set all

or any part of goods forming

the collateral security for the

repayment of the advance

together with interest and cost

at such time and in such

manner as you may deem fit

and without notice to me/us

and after deducting usual

commissions, charges and

expenses to apply the net

proceeds in payment of the

advance made to me/us by

you cum annexis the balance

if any to be placed at your

option against any other of

the debts to you whether due

or not. Your right under these

documents are additional to

and shall not derogate from

your right under all security

documents previously signed

by us.

6. It is understood, that the keys

of the godown remain in

my/our possession, and I/we,

likewise further agree and

undertake to have no

advance from any other

bank on the same or any

other goods in my/our

godown in which goods under

lien to you is stored so long

as I /we am /are indebted to

you.

7. This agreement is to operate

as continuing security for the

balance from time due to the

bank and also for the ultimate

balance to become due on

the said account and the said

account is not to be

considered to closed for the

purpose of security and the

security is not to be

considered exhausted by

reason of the said account

being brought to credit at any

time or from time to time or of

its being drawn upon to the

full extent of the sum of

Rs………………………………

(Rupees ………………only) if

afterwards reopened by

payment to credit.

8. And I/We further agree that

the goods shall also be a

security to you for the

payment on demand and all

other moneys which are now

or shall at any time be due to

you from me/us either alone

or jointly with any other

person or persons either or

current account or for money

advanced or paid or in respect

of bills, drafts or notes

accepted, paid or discounted ,

interest, commission or any

other usual or lawful charges

or on any other account

whatsoever, together with all

costs and expenses.

Place : …………………

Date : ………………… Signature of the borrower(s)

F 251-B

SHIPPING LIEN STOCK STATEMENT

Statement of Stock as the close of business on ……………… under lien to

Indian Overseas Bank …………………… Branch(in terms of agreement dated …………….)

Borrower’s Name :

Description of

goods

Quantity Mark and

Number

Where

stored

Value

Place ……………………………….. ………………………………

Date ………………………………… ……………………………….

………………………………

Signature(s) of Borrower(s)

F.251C(01085)

LETTER OF UNDERTAKING REGARDING SUBMISSION OF BILLS

The Manager

Indian Overseas Bank

………………………………….

Dear Sir,

Bill for Rs. …………………………. on

Covering shipment of …………………

to ……………………………………….

……………………………………………

In consideration of your accepting the above bill for collection /

negotiation, I/We, hereby certify I/We have fully understood the implications of

the Export Control Regulations pertaining to export of goods to the above country

and further undertake to submit to your for collection/negotiation the full set of

shipping documents including the original Bill ofLlading or Railway Receipt and

other connected documents within twenty one days form the date of shipment.

2. I/We also hereby confirm that satisfactory arrangements have

already been made with the consignees to realise the proceeds of the above

shipment within six months from the date of shipment.

Yours faithfully,

Place : ……………………..

Date : …………………….. (Signature & full address of Shippers)

F.251 D (010761)

FORWARD PURCHASE CONTRACT(For approved purposes only)

Indian Overseas Bank Place : Date :……………………………………………………………………………………………………………… (Customer)

We, Indian Overseas Bank, have this day bought from you, the following Exchange, subject to the following terms and conditions:FPC No. Foreign

Currency AmountPayable Usance

DA/DPRate Counter

CurrencyDelivery Period

Purpose:

*Export of Goods

* Other purposes (Specify)…….

*Deferred Payment Exports

*Export of services

1. This Contract is subject to

Exchange Control provisions

stipulated by Reserve Bank of

India and Amendments issued

from the time to time. This

contract is also subject to the

rules of Foreign Exchange

Dealer’s Association of India.

2. This Contract is not

assignable.

3. This Contract has been based

on the

* Commercial Contract

*Documentary

Credit as detailed below

Others (Specify details of

underlying transaction)

……………

Particulars of * Commercial

Contract *Documentary

Credit.

A) Name & Address of the

Overseas Buyer/Remitter.

b) Number & Date

c) Commodity/Purpose

d) Exims Code (as specified in the

Exim Policy)

e) Quantity

f) Value

g) Expected date of

shipment/Remittance.

h. Nature of the Bill to be drawn :

Sight / Usance DA/DP

i) Expected date of submission of bill

Realisation/Receipt of Remittance.

If this contract has been booked on

the basis tele-transmission (Cable

/Telex/through Overseas

Communication Services), this

contract is subject to your

undertaking that the Commercial

Contract /Documentary credit and

others the case may be will be

submitted to us within a period of

one month from the date of booking

this contract but in any case before

delivery the document.

4. This contract is booked subject to

your confirmation that the

commodity(ies) to be Exported is/

are not in the Negative List of the

EXIM Policy in force or not

disallowed as per Public Notices

issued by DGFT./

5. Delivery Period:

a) In the case of Export of goods the

last date of the delivery period

indicated in this Contract should not

fall beyond six months from date of

shipment viz., the maturity of the

forward cover should not exceed the

maturity of the underlying

transaction.

b) In the case of deferred payment

exports the initial delivery period may

be fixed for the first and subsequent

instalments. However this cover will

be applicable and available only

those instalments for which the

delivery period falls within six months

and for all instalments falling beyond

the six months period, the cover will

be on six months roll over basis each

at the ongoing rates as per extant

FEDAI Rules/ Exchange Control

Regulations.

c) In the case export of service , the

last date of delivery should not fall

beyond a period permitted by

Exchange Control regulations.

D) In all other cases, the delivery

should correspond with the period

permitted by the Exchange Control

Regulations.

6. This Contract is firm and should

therefore be taken up on the

respective maturity dates.

Substitution of the underlying

transactions may be permitted as

allowed under extant Exchange

Control Regulations. However, if the

contract had been booked against

clubbing of different orders you are

permitted to deliver the amount

under this contract irrespective of the

particular clubbed order against

which the shipment had been made.

7. This Contract is subject to your

undertaking that the Bills covered

under this Contract will not be

submitted to us (or any other

Authorised Dealer under any

other contract) as ready

transaction. While submitting

bills/offering delivery under this

contract you will draw our

attention to this contract number

and date.

8. If for any genuine reason you

are unable to take up the contract

or part thereof within the delivery

period you will instruct us before

the expiry of the delivery period

or extended delivery period for

roll-over /cancellation of the

contract of the unutilised portion

thereof furnishing suitable

documentary evidence.

9. This contract is subject to

automatic cancellation on the 15th

day after the expiry date in the

absence of instructions in writing

from you on or before the expiry

of the delivery period (or

extended period for roll-over or

cancellation of the contract of the

unutilised portion thereof as the

case may be). If such 15th day

falls on a Saturday or a holiday

the contract shall be cancelled on

the next succeeding working day.

you will also submit to us suitable

documentary evidence

necessitating such automatic

cancellation wherever required.

10. The charges for cancellation,

extension or early delivery of the

contract are governed by the

terms and conditions as set out

in FEDAI Rules. The charges are

payable by you without demur on

demand by us and we are

irrevocably authorised to recover

the eligible charges by debiting

your account.

11. Acceptance of delivery of bills

/documents drawn for a

difference tenor will be at the

discretion of the bank subject to

recovery of swap cost if any and

other charges.

12. In case the negotiation of the

documents under LC are

restricted to another bank, the

charges levied by the other bank

to remit the foreign currency

funds to our bank’s nostro

account shall be for your account.

13. The contract will be administered

by instructions from our Foreign

Exchange Department, Central

Office, Chennai or Foreign

Exchange Department , Mumbai

as the case may be.

14. The contract is subject to your

undertaking that the underlying

exposure has not been booking

with any other Authorised Dealer.

15. This contract is booked subject

to your providing us with the

required cash margin and/or such

other security as stipulated by the

sanctioning authority, Further it

will also be obligatory on your

part to replenish the margin as

and when the margin gets eroded

below the stipulated level owing

to any adverse movement of

exchange rates. Such

replenishment as well as required

additional cash margin and/or

additional security as advised by

the bank has to be provided

within the stipulated time frame.

Failure/non adherence of the

stipulations by you will entitle the

bank at its option to rescind the

contract. You will be solely liable

for whatever the costs and

expenses that the bank may have

to incur on account of such

cancellation of the contract. The

bank will recover the entire

SWAP and other costs by debit to

your account even if it results in

OVERDRAFT or EXCESS You

are required to make good this

amount with interest as

applicable to overdraft

immediately. Failure to do so,

will entail recalling of all the credit

facilities granted to you, at the

discretion/option of the bank.

16. The terms and conditions of

International Swap Dealers

Association (ISDA) Master

Agreement wherever executed

shall always from or be deemed

to form part and parcel of the

forward contract and in the event

of any inconsistencies between

the ISDA and the forward

contract ,the ISDA Master

Agreement shall prevail.

In agreement of the above For Indian Overseas Bank

(Authorised Signature) (Name, Sig. .No.) (Name, Sig. No)

(Customer) Authorised Signatures.

Initials of Bank Official :

Amount Balance

Date Bill NO.

Foreign INR Foreign INR

currency currency

Details of charges collected / amount paid to the party:

FEDAI RULE 7

EXCHANGE CONTRACT (Relevant Sections)

General

a. Contract amount :

Exchange contracts shall be for

definite amount i.e. there shall be

no provision for excess or

shortage.

b. Option period of delivery:

Unless date of delivery is fixed and

indicated in the contract the option

period shall be specified at the

discretion of the customer subject

to the conditions that such option

period of delivery shall not exceed

beyond one month. For example:

15th January to 14th February

30th January to 28 (29th ) February

31st March to 30th April

Contracts / Permitting option of

delivery must state the first and last

dates of delivery. A forward contract

is a contract deliverable at a future

date. Duration of the contract being

computed from spot value date at

the time of transaction.

c. Place of delivery :

All Contracts shall be understood

to read “To be delivered or paid for

at the Bank and at the named place”.

II Business with merchant :

a. Contract amounts.

Any excess amount over the

amount stated in a contract, or

shortfall therein shall be bought or

sold as the case may be, at the

Bank’s current ready or cash rate of

the day and the amount of the

excess in the contract shall be

cancelled as per Rule 8 (iv). When a

Bill contract mentions more than one

rate for bill of different deliveries the

contract must state the amount and

delivery against each such rate.

b. Option of delivery

In all forward merchant contracts,

the merchant whether a buyer or a

seller will have the option of

delivery.

“Ready” or “Cash” Merchant

Contract shall be deliverable on the

same day.

C. Option or Usance

The merchant purchase contract

should state tenor of the bills

/documents. Acceptance of delivery

of bills / documents drawn for a

different tenor will be at the

discretion of the bank.

d. Merchant quotations:

“The Exchange rate shall be

quoted in direct terms, i.e. so many

Rupees and paise for 1 unit of

foreign currency or 100 units of

foreign currencies”.

e. Rounding of Rupee equivalent of

the Foreign Currency amounts at

the agreed Merchant rate

Settlement of all Merchant

transactions shall be effected on

the principle of rounding off the

rupee amounts to the nearest

whole rupee i.e. without paise.

FEDAI RULE 8EARLY DELIVERY, EXTENSION & CANCELLATION OF

FORWARD EXCHANGE CONTRACTS.

1. General

a. At the request of customer,

unless stated to the contrary in the

provision of the Exchange Control

Manual, it is optional for a bank to

i. Accept or give early

delivery:

ii. Extend the contract

b. It is the responsibility the

customer to effect delivery or to

request the case may be on or

before the maturity date of the

contract.

c. Authorised Dealers shall levy a

minimum charge of Rs.250/- for

every request from a customer for

every delivery, extension or

cancellation of a contract.

ii. EARLY DELIVERY :

If a Bank accepts or gives early

delivery, the bank shall recover or

pay swap difference, if any.

iii. Extension :

Forward Exchange contract/s

either short or long term contracts

where extension is sought by a

customer for are rolled over) shall

be cancelled (at TT Selling or Buying

rate as on the date of cancellation)

and re-booked simultaneously only

at current rate of exchange. The

difference between the contracted

rate and the rate at which the

contract is cancelled should be

recovered from/paid to the

customers at the time of extension.

Such request for extension should

be made on or before the maturity

date of the contract.

Iv Cancellation :

a) In the case of cancellation of

a contract at the request of

the customer, the

Authorised Dealer shall

recovery/pay as the case

may be the difference

between the contracted rate

and the rate at which the

cancellation is effected.

b) Rate at which cancellation

is to be effected.

i. Purchase contracts shall be

cancelled at the contracting

bank’s TT Selling rate current on

the date of cancellation.

ii. Sale contracts shall be

cancelled at the contracting

bank’s TT Buying rate current

on the date of cancellation.

iii. where the contract is

cancelled before maturity,

the appropriate forward

TT rate shall be applied.

c) Exchange difference not

exceeding Rs.100/- shall

be ignored by the contracting

bank.

d) In case, a purchase contract

becomes overdue, due to

the bank’s inability to accept

the bills tendered as

approved bill and exporter

takes up the contract by

tendering other approved

bills or cancels the contract

within a reasonable time,

such cancellation shall be

governed by the above.

e) Notwithstanding the fact that

the exchange contract

between the customer and

the bank becomes

impossible of performance

for whatever reason,

including Government

prohibitory order the

exchange contract be

deemed to have become

void and customer shall

forthwith apply to the bank for

cancellation subject to

provisions of paras iv (a) (b)

and (c) above.

f) i. In the absence of

instruction from the

customer vide para i (b)

contracts which have

matured shall on the the

15th day of the date of

maturity be automatically

cancelled. In case the 15th

day falls on a Saturday or

holiday, the contract will be

cancelled on the next

succeeding working day.

ii) Swap cost, if any, shall be

recovered from the customer

under advice to him.

iii) In case the contract is

ultimately cancelled, the

customer will not be entitled

to the exchange difference, if

any, in his favour, since the

contact is cancelled on

account of his default.

iv) In case of delivery

subsequent to automatic

cancellation the appropriate

current rate prevailling on

such delivery date shall be

applied.

v) Swap Cost :

a) Swap cost to be recovered

from customers:

In all cases of early delivery

of purchase or sale contracts,

Swap cost shall be recovered

from customers irrespective

of whether an actual swap is

made or not. Such recoveries

should be made either back

ended or front ended in the

discretion of Banks.

b) Swap gain :

Payment of swap gain to the

customer will normally be

made at the end of the

Swap period.

FORWARD SALE CONTRACT

(For approved purposes only)

Indian Overseas Bank

………………………………………… Place:

………………………………………… Date :

…………………………………………

(Customer)

We, Indian Overseas Bank, have this day sold to you, the following Exchange,

subject to the following terms and conditions:

________________________________________________________________FSC No. Foreign Payable TT/BILLS Rate Counter Delivery Currency Amount Selling Currency Period

Purpose:

Import of Goods

Other purposes (Specify)…….

Cross currency forward cover

for imports

Cross currency forward cover

for any

Other purpose (Specify)……...

1. This Contract is subject to

Exchange Control provisions

stipulated by Reserved Bank

of India and Amendments

issued from time to time. This

contract is also subject to the

rules of Foreign Exchange

Dealers’ Association of India.

2. This Contract is not

assignable.

3. This Contract has been

booked on the strength of:

* Exchange Control copy of

Import Licence No. Date

Expiry Date :

In the name of: Under transfer

Letter of Authority / Approval

Approval by:

Approval Ref. Date:

This contact is booked subject to

your confirmation that the

commodity (ies) to be imported is

are not in the Negative list of the

Exim Policy in force or not

disallowed as per Public Notices

issued by DGFT.

4. This Contract is based on the

Commercial Contract *

Documentary Credit as

detailed below.

Others (Specify details

of underlying

transaction)……...........

Particular of

“Commercial Contract

“Documentary Credit.

a) Name &

Address of the Overseas

Seller Supplier / Beneficiary of

Remittance.

b) Number &

Date

c) Commodity /

Purpose

d) Exim Code (as

specified in the Exim Policy)

e) Quantity

f) Value

g) Expected date

of shipment /Remittance

h) Nature of the

Bill to be drawn: Sight /

Usance DA/ DP

5. Delivery Period:

a) In the case of Import of

goods the last date of the

delivery period indicated in

this Contract should not fall

beyond six months from date

of shipment viz. the maturity

of the forward cover should

not exceed the maturity of

the underlying transaction.

b) In the case of deferred

payment imports the initial

delivery period may be fixed

for the first and subsequent

instalments. Any delivery

period beyond six months for

one or more instalments will

be subject to availability of

cover. For the rest of the

instalments contract may be

rolled over at the on going

rates as per extant FEDAI

Rules/Exchange Control

Regulations.

c) In all other cases the

delivery period should

correspond with the period

permitted by the Exchange

Control Regulations.

6. This Contract is firm and should

therefore be taken up on the

respective maturity dates.

Substitution of the underlying

transactions may be permitted

as allowed under extant

Exchange Control Regulations.

7. This Contract is subject to your

undertaking that the Bills covered

under this Contract will not be

retired through us (or any other

Authorised Dealer under any

other contract) as ready

transaction. While submitting

bills/taking delivery under this

contract you will draw our

attention to this contract number

and date.

8. If for any genuine reason you are

unable to take up the contract or

part thereof within the delivery

period you will instruct us before

the expiry of delivery period or

extended delivery period for roll-

over/cancellation of the contract

of the unutilised portion thereof

furnishing suitable documentary

evidence.

9. This Contract is subject to

automatic cancellation on the

15th day after the expiry date in

the absence of instructions in

writing from you on or before the

expiry of the delivery period (or

extended period for roll-over or

cancellation of the contract or

unutilised portion thereof). If such

15th day falls on a Saturday or a

holiday the contract shall be

cancelled on the next

succeeding working day. You will

also submit to us the suitable

documentary evidence

necessitating such automatic

cancellation wherever required.

10. Wherever cancellation of

forward contracts are not

permitted as per extant

Regulations, the contract has to

be fulfilled or permission from

RBI is to be obtained for

cancellation of part/full value of

the contract.

11. Acceptance of Bills/Documents

drawn for a different tenor will be

at the discretion of the bank

subject to recovery of SWAP

cost and other charges if any.

12. The charges for cancellation,

extension or early delivery of the

contract are governed by the

terms and conditions as set out in

FEDAI Rules. The charges are

payable by you without demur on

demand by us and we are

irrevocably authorised to recover

the eligible charges by debiting

your account.

13. Should the Bills under the Letter

of credit be refused /dishonored

on account of discrepancies, the

cancellation charges of this

contract shall be for your account

and will be recovered to the debit

of your account.

14. This contract will be

administered by instruction from

our Foreign Exchange

Department Central Office,

Chennai or Foreign Exchange

Department, Mumbai as the case

may be.

15. This Contract is subject to your

undertaking that the underlying

exposure has not been booked

with any other Authorised

Dealer.

16. This contract is being booked

subject to your providing us with

the required cash margin and/or

such other security, as

stipulated by the sanctioning

authority. Further it will also be

obligatory on your part to

replenish the margin as and

when the margin gets eroded

below the stipulated level owing

to any adverse movement of

exchange rates. Such

replenishment as well as

required additional cash margin

and / or additional security as

advised by the bank, has to be

provided within the stipulated

time frame. Failure /non-

adherence of the stipulation by

you will entitled the bank at its

option, to rescind the contract.

You will be solely liable for

whatever the costs and expenses

that the Bank may have to incur

on account of such cancellation

of the contract. The Bank will

recover the entire SWAP and

other costs by debit to your

account even if it results in

OVERDRAFT or EXCESS. You

are required to make good this

amount with interest as

applicable to overdraft

immediately. Failure to do so, will

entail recalling of all the credit

facilities granted to you, at the

discretion / option of the bank.

17. The terms and conditions of

International Swap Dealer

Association (ISDA) Master

Agreement wherever executed

shall always form or be deemed

to form part and parcel of the

forward contract and in the event

of any inconsistencies between

the ISDA and the forward

contract the ISDA Master

Agreement shall prevail.

In agreement of the above For Indian Overseas Bank

(Authorised Signature) (Name Sig. No.) (Name Sig. No)

(Customer) Authorised Signatures.

Signature & Authority

Verified.

Initial of Bank Official :

Amount Balance

Date Bill NO. ______________________________________

Foreign INR Foreign INR

currency currency

Details of charges collected /amount paid to the party :

FEDAI RULE 7

EXCHANGE CONTRACT

(Relevant Sections)

1. General

a. Contract amounts:

Exchange contracts shall be for

definite amount i.e. there shall

be no provision for excess or

shortage.

b. Option period of delivery :

Unless date of delivery is fixed

and indicated in the contract the

option period should be specified

at the discretion of the customer

subject to the condition that such

option period of delivery shall not

exceed beyond one month. For

example.

15th January to 14th February

30th January to 28 (29th)

February

31st March to 30th April.

Contracts permitting option of

delivery must state the first and

last dates of delivery. A forward

contract is a contract deliverable

at a future date, duration of the

contract being computed from

spot value date at the time of

transaction.

c. Place of delivery :

All Contracts shall be understood

to read “To be delivered or paid

for at the Bank and at the

named place.

II. Business with Merchant :

a. Contract amounts.

Any excess amount over the

amount stated in a contract, or

shortfall therein shall be bought or

sold as the case may be, at the

Bank’s current ready or cash rate

of the date and amount of the

excess in the contract shall be

cancelled as per Rule 8(iv). When

Bill contract mentions more than

one rate for bills of different

deliveries, the contract must state

the amount and delivery against

each such rate.

b. Option of delivery :

In all forward merchant contracts,

the merchant whether a buyer or

a seller will have the option of

delivery.

“Ready” or “Cash” Merchant Contract

shall be deliverable on the same

day.

C. Option of Usance

The merchant purchase contract

should state tenor of the bills

/documents. Acceptance delivery

of bills / documents drawn for a

different tenor will be at the

discretion of the bank.

d. Merchant quotations:

“The Exchange rates shall be

quoted in direct terms, i.e. so

many Rupees and paise for 1 unit

of foreign currency or 100 units of

foreign currencies.

e. Rounding off Rupee equivalent of

the Foreign Currency amounts at

the agreed Merchant rate:

Settlement of all Merchant

transaction shall be effected on the

principle of rounding off the rupee

amounts to the nearest whole

rupee i.e. without paise.

FEDAI RULE 8

EARLY DELIVERY, EXTENSION & CANCELLATION OF

FORWARD EXCHANGE CONTRACTS

I. General

a. At the request of the customer,

unless stated to the contrary in

the provisions of the Exchange

Control Manual, it is optional for a

bank to-

i. Accept or give early delivery:

ii. Extend the contract :

b. It is the responsibility

of the customer to effect delivery

or to request the bank for

extension/cancellation as the

case may be on or before the

maturity date of the contract.

c. Authorised Dealers

shall levy a minimum charge of

Rs.250/- for every request from a

customer for early delivery,

extension or cancellation of a

contract.

ii. Early delivery :

If a Bank accepts or gives early

delivery, the bank shall recover or

pay swap difference, if any.

iii. Extension

Forward Exchange contract/s

either short or long term contracts

where extension is sought by a customer

(or are rolled over) shall be cancelled (at

TT Selling or Buying rate as on the

date of cancellation) and re-booked

simultaneously only at current rate of

exchange. The difference between the

contracted rate and the rate at which the

contract is cancelled should be

recovered from /paid to the customers at

the time of extension.

Such request for extension shall be made

on or before the maturity date of

contract.

IV. Cancellation:

a) In the case of cancellation of a

contract, at the request of the

customer, the Authorised Dealer shall

recover /pay as the case may be, the

difference between the contracted

rate and the rate at which the

cancellation is effected.

b) Rate at which cancellation is to be

effected:

i. Purchase contracts shall be cancelled

at the contracting banks TT Selling

rate current on the date of cancellation.

ii. Sale contract shall be cancelled at the

contracting bank’s TT Buying rate

current on the date of cancellation.

iii. Where the contract is cancelled

before maturity, the appropriate

forward TT rate shall be applied.

c) Exchange difference not exceeding

Rs.100/- shall be ignored by the

contracting bank.

d) In case, a purchase contract becomes

overdue, due to the bank’s inability to

accept the bills tendered as approved

bills and the exporter take up the

contract by tendering other approved

bills or cancels the contract within a

reasonable time, such cancellations

shall be governed by the above.

e) Notwithstanding the fact that the

exchange contract between the

customer and the bank becomes

impossible of performance for

whatever reason, including

Government prohibitory order, the

exchange contract shall be deemed to

have become void and the customer

shall forthwith apply to the bank for

cancellation subject to provisions of

para IV (a). (b) and (c) above.

f) I. In the absence of instruction from

the customer vide para 1 (b),

contracts which have matured shall on

the 15th day from the date of maturity

be automatically cancelled. In case

the 15th day falls on a Saturday or

holiday, the contract will be cancelled

on the next succeeding working day.

ii. Swap cost, if any, shall be recovered

from the customer under advice to

him.

iii. In case the contract is ultimately

cancelled, the customer will not be

entitled to the exchange difference, if

any, in his favour, since the contract is

cancelled on account of his default.

iv. In case of delivery subsequent to

automatic cancellation the appropriate

current rate prevailing on such delivery

date shall be applied.

V. Swap cost:

(a) Swap cost to be recovered from

customers:

In all cases of early delivery of purchase

of sale contracts, Swap cost shall be

recovered from customers irrespective

of whether an actual swap is made or

not. Such recoveries should be made

either back-ended or front-ended in the

discretion of Banks.

b) Swap gain:

Payment of swap gain to the customers

will normally be made at the end of

the swap period.

LETTER OF INDEMNITY (Negotiation under reserve)

To

Indian Overseas Bank Date : ………19…

…………………………

Dear Sir/s,

In consideration of your agreeing to negotiate our documentary bill of exchange for

Rs…………………………………… dated ………………….. drawn on ……………….

under commercial letter of Credit No…………………….. issued by …………………

notwithstanding any discrepancy or discrepancies between the draft/documents and the

terms of the covering commercial Letter of Credit which may also be discovered

hereafter including the following:

We, the drawers and /or endorser, hereby unconditionally agree to reimburse you upon

demand for the amount or aggregate amounts, of all claims including costs, legal or

otherwise which you may be called upon or compelled to pay in connection with this

bill including any guarantee and /or indemnities given by you, together with interest at

a rate to be determined by you plus the amount of all expenses of whatsoever nature

incurred by you, in connection with any claim and /or claims. We, the drawers and /or

endosers expressly agree that the amount of claim and /or claims paid by you, in

connection with this bill will be accepted by us without equivocation, dispute or delay

as correct and just and we hereby waive all rights to contest the amount or nature of

claims paid under such guarantees or indemnities

F283

Your faithfully,

LETTER OF GUARANTEE WITH RESPECT TO

ISSUE OF DUPLICATE DEPOSIT RECEIT /DEMAND DRAFT

Indian Overseas Bank.

………………………….

In consideration of Indian Overseas Bank ………………………………. issuing a

duplicate of their Receipt No./Demand Draft No………………………… dated ……

………………….. favoring for Rs………………………………………. (Rupees

…………………………………………………………….. I/we the undersigned

……………………………………………………. and …………………………..

……………………………………………… and ………………………………….

hereby (jointly and severally) guarantee and agree to hold the said Indian Overseas

Bank, their successors and assign harmless and make good the loss to the bank that may

arise so doing and form payment of the original Deposit Receipt / Demand Draft and

form and against all charges and expenses in connection with the said Deposit

Receipt/Demand Draft or duplicate.

Dated this …………………. Day of ……………………… 20

…………………………

…………………………

Signature (s) ………………………....

…………………………

Deletewhichever is not applicable

F 286A

Stamp

LETTER OF INDEMNITY

The Manager,

Indian Overseas Bank,

…………………………………….

Dear Sir,

In consideration of Indian Overseas

Bank having agreed to act or acting

as our Agents.

i. For sending to our buyers bills of

exchange drawn by us on them-such

bills being accompanied by the Lorry

Receipts - such Lorry receipts being

issued or purported to have been issued

by the Transport Operators designated or

selected by us from the list of Approved

Transport Operators prepared or

maintained by the bank.

ii. By allowing the Bank’s name to be

mentioned as a consignee in such Lorry

Receipts where the bank has accepted to

the said bill of exchange for collection or

has purchased or discounted such bills.

iii. For delivering the bills with all the

accompanied documents such as the

invoice, Lorry receipt etc., against

payment to such buyers.

iv. For endorsing such Lorry receipts to

our buyers after they have retired /

accepted the bills of exchange or for

authorising delivery of the consignment

covered by such Lorry receipts to our

buyers after they have retired/drawn the

bills of exchange on sight D.P. or D.A.

basis as the case may be.

“I/We undertake at all times hereafter, to

save, defend and keep your Bank

harmless and indemnified of and from

all manner of actions, suits, losses

whatsoever and of and from all damages,

costs, losses and charges whatsoever

which you may at any time hereafter

sustain, bear or to be put to by reasons of

(a) You having acted as mentioned

in (i) (ii) (iii) and (iv) above in

respect of any transaction that

arise from or are incidental to

such dealings, or\

(b) Any of the Lorry Receipts

turning out to be not a genuine

and authorised receipt or to have

been issued otherwise than

against goods of the description

and value as stated in the Lorry

Receipt.”

Yours faithfully,

(Stamps & Signature of the consignor)

Dated at………………this…………….day of …20….

F.286 C(011175)

To

Indian Overseas Bank

………………………………

LETTER IF INDEMNITY

In consideration of Indian Overseas Bank………………………………………….

………………………………………………………….at my/our request issuing/

countersigning from time to time letters(s) of Guarantee (s) not exceeding Rs.

…………… (Rupees………………………………………………………………….

…………………………………………………………………………………………

…………………………………………………………………………………………)

in the aggregate at any one time issued in favour of…………………………………..

1)………………………………………………………….

2)……………………………………………………………

3)……………………………………………………………

or on such other parties from time to time on account of …………….......................

……………………………………………………………………………………..

………………..I/we hereby undertake and agree to hold the said Indian Overseas

Bank…………………………………….their successors and assigns harmless and

indemnified against any action, loss charges, expenses, demand or damage

whatsoever they may sustain on account of their executing/countersigning the said

guarantee(s).

I/We further undertake to reimburse the bank on demand any or all sums paid by

the bank under the guarantee(s) notwithstanding any dispute as to the validity or

otherwise of the guarantee(s) or the right of the beneficiary/beneficiaries under the

guarantee(s).

In the event of my/our not paying the amount immediately on demand made by

the Bank, I/We irrevocably authorise the bank to debit my/our current account with

the guarantee amount and charges if any, by or without creating an overdraft for the

purpose of payment to the beneficiary of the guarantee, and in the event of an

overdraft being created I/we further undertake to pay the said amount with interest at

the rate applicable to overdraft.

Stamp

Place:

Date:

----------------------------

F 286 D

(TO BE STAMPED AS INDEMNITY WITH DUTY

PAYABLE IN THE STATE WHERE IT IS EXECUTED)

GENERAL COUNTER GUARANTEE

Place…………….

Date…………..20…

Indian Overseas Bank

……………………….Branch

Dear Sirs,

You have at our request signed and/or agreed to sign, undertook and /or agreed to

undertake, as and when required by us, guarantees/guarantee liability by issuing

Letters of Guarantee. Deferred payment Guarantees, Letter of Undertaking, Co-

accepting Bills or any instrument creating liability in favour of various authorities

and Departments of the central and State Governments, Semi-Government Bodies,

Local or Public Bodies, or authority and various other persons, Companies, Shipping

Companies ,Shipping agents ,Corporations or Bodies corporate, whom we may

specify from time to time , and subject to your right to refuse to issue guarantees or

to undertake any guarantee liability of which you do not approve or to refuse to

approve any further guarantees at anytime. The said guarantees so issued or to be

issued or guarantee liability undertaken or to be undertaken by you are hereinafter

referred as such guarantees, which expression shall unless repugnant to the context or

meaning thereof be deemed to include any renewals or extensions or modifications of

all or any of such guarantees. (The term guarantee will hereinafter be understood to

include co-acceptance).

(Incase of an In consideration of the premises, I so as to bind myself and

Individual) my heirs, executors ;Administrators legal representatives,

estates and effects.

(In case of more than I/We, so as to bind ourselves jointly and severally and our

one individual NOT respective heirs, executors, administrators, legal

being partners) representatives, estates and effects all jointly and severally

(In case of a Partnership We, the Partners of and carrying business in the firm name

Firm) and style of M/s…………………… so as to bind ourselves

and each of us jointly and severally and our respective

heirs, executors, administrators and legal representatives

estates, and effects all jointly and severally.

(In case of a Limited We so as to bind ourselves and our successors and assigns

Company) agree with you and your successors and assigns as follows:

i.(a) To indemnify you and keep you fully indemnified and saved defended and

harmless in respect of and against each and every payment made and any obligation,

liability loss or damage, exchange fluctuations, charges, expenses costs whatsoever

undertaken or incurred or suffered by you (whether directly or indirectly) under or in

connection with all or any such guarantees.

(b) To keep you indemnited for issuing the guarantee in the formats presented by

me/us from time to time making necessary changes or in the formats as may be

prescribed by the authorities concerned or in the formats and language as may be

prescribed by beneficiary/overseas correspondents /authorities in other countries and

against any action or proceedings or litigation subject to the law/usage of a foreign

country.

ii. To pay to you at your branch or any other branch notified by you on demand by

you all such sum or sums of money as you may pay under in connection with all or

any of such guarantees with interest thereon at the rate applicable to overdraft or at

such other rate or rates of interest as may be notified by you to me/us from time to

time, from the date on which you so pay until repayment by me/us.

ii. (a) To pay commission to you as per your Bank Rules /FEDAI RULES/ Bank’s

sanction in terms in the event of default of payment, you shall be entitled to realise

the amount of commission due to you either to the debit of our account or from the

securities/margin, if any furnished by us;

(b)To pay you commission calculated in Foreign currency and converted as Indian

rupees at the exchange rate prevailing on the date of recovery in the case of Deferred

Payment Guarantee/Shipping Guarantees etc and to pay the commission for the full

unexpired period in the event the guarantee is redeemed/invoked before expiry of the

guarantee and when the commission is collected in instalments at your discretion.

(c) In for any reason, you are prevented by any action initiated by me/us from making

payment to the beneficiary of the guaranteed amount I/we will also be liable to

pay to you, guarantee commission for the period for which I/we delay, by such

action the payment or discharge of the guarantee.

(d) To pay you charges paid by you to your correspondent/overseas branch converted

at the prevailing exchange rate on the date of recovery and I/we also agree to

reimburse you the taxes, if any, collected on the commission in another country.

iv. You shall be entitled, at your discretion and without any reference to me/us to

obtaining the consent of myself/any of us to make payment of all or any part of the

sum of or sums guaranteed by you under or by virtue of all or any such guarantees on

a request or demand being made on you for this purpose thereunder .Any request or

demand made to or upon you by the beneficiary or beneficiaries of all or any of such

guarantees for payments of any sum or sums of money shall be sufficient authority

from me/us to you making such payment/s.

v. Notwithstanding the possibility, existence, pendency, or continuance of any

disputes or differences or any arbitration proceedings or of any suit or other legal

proceedings whatsoever between me/us or of any of us and the beneficiary or

beneficiaries of all or any such guarantees and/or between us inter-se which may

directly or indirectly arise out of or under or in connection with subject matter/s of all

or any of such guarantees or which may affect the legality or validity of all or any of

such guarantees and/or of any transaction/s directly or indirectly connected with or

relating to or arising out of the subject matter/s of all or any of such guarantees the

reasonableness or propriety or validity of any such payments/s made by you to such

beneficiary or beneficiaries shall not be questioned by me/us or any of us on any

ground whatsoever and such payment shall be conclusive and binding on me/us and

each of us so far as concerns our liability to you hereunder.

vi. To pay to you at your branch or any other branch notified by you on demand all

costs, charges and expenses (the legal costs being between Attorney /Advocate and

client) paid or incurred by you in anywise concerning all or any of such guarantees

and your obligation and liability thereunder and concerning this counter quarantee

and indemnify and your rights hereunder.

vii. That you shall at your option be entitled without any further consent from me/us

or any of us extend the guarantees in terms of undertaking and to debit the Account or

Accounts of myself of ourselves or any one or more of us at any of your branches

(whether Loan or Cash Credit or overdraft. Saving or Current of Fixed or Short

Deposit or any other Accounts whatsoever) with the amount of commission ,charges

expenses and any payment/s you may make under or in respect of all or any such

guarantees;

viii. When you issue any shipping guarantee on our behalf in favour of shipping

companies/agents against their delivery to us without production of the Bill of

Lading/Air Way bill /Transport documents, we undertake to honour the bills

immediately on presentation and in the case of a bill drawn under a letter of credit,

irrespective of discrepancy that may ultimately be discovered between bills as

received and the terms of the Letter of credit.

ix. This agreement of Counter guarantee and indemnity shall be irrevocable and shall

be binding on me/us and each of us jointly and severally and also on my/our

respective heirs, executors, administrators, estates and effects jointly and severally

our successors and assigns (whether statutory or contractual);

x. You shall be under no obligation to return any of the securities/margin , if any

furnished by us unless the guarantee given by you has been returned to you or you

are released from your liability by the beneficiary thereof. Nothing herein shall after

or prejudice your right of general lien or set off over such securities/margin.

xi. In the event of your redeeming the guarantee on the basis of a letter from the

beneficiary/correspondent bank without returning the original guarantee executed by

your or in the event of your reducing the liability by issuing suitable notice to the

beneficiary on their non return of the guarantee after maturity , I/We undertake to

hold you fully indemnified and saved , defended and harmless in respect of any

claims the beneficiary may make subsequently based on the original guarantee.

xii. (In case of more than one individual not being partners)

(a) We and each of us shall be liable hereunder to you jointly and each severally. On

the death of any one or more of us, his heirs, executors, administrators, legal

representatives, estates and effects as the case may be shall be liable jointly and

severally with the survivor or survivors.

(b) (In case of a Partnership Firm)

The liability incurred by us and each of us hereunder shall not in any way be

prejudiced or affected by any change in our partnership firm whether by death or

retirement or insolvency of any partner or by admission of any new partner or

partners or otherwise howsoever eventhough the firm may become a sole

proprietary concern and all the partners for the time being of the firm or the sole

proprietor and his /their respective heirs, executors, administrators, legal

representatives, estates and effects, as the case may be , shall be liable to you

hereunder , jointly and severally.

Yours faithfully,

F 286 E

…………………..

REQUEST FOR ISSUING LG/DPG/CO-ACCEPTANCE OF BILLS/

SHIPPING GUARANTEE

Place:

Date:

To

Indian Overseas Bank

………………………..Branch

Request for issuing and/or undertaking /Confirmation of request for having

issued/undertaken letter of Guarantee DPG /guarantee liability Co-acceptance

liability /Shipping guarantee etc.

Request for issuing/extending/undertaking

confirm the request for issuing/extending/undertaking the following guarantee

liability on my/our behalf.

Beneficiary’s Name…………………………

LG amount in case of LG/DPG

Amount of Bills in case of

Co-acceptance………….

Description of goods, value and

name of the vessel in case of’

shipping guarantee

Issued through (in case of foreign LG) or as required by

beneficiary.

Yours………………………………………………………………..Branch

Your correspondent………………………………………………….

OR……………………………………………………………………..

In case of Shipping Guarantee…………………………………………

I/We confirm that the above mentioned goods are covered under my/our under-

noted import licence(s) / Open General Licence/Appendix No…….

No…………………………………………………………………of Policy

Thanking you,

Yours faithfully

Authorised Signatory.

F 286 F

Encl: Format of LG/DPG/Shipping guarantee/Bid Bond Tender/ Co-accepted

Bills (Photostat copies)

Duly authenticated by the Authorised Signatory

Import licence for perusal and return after making provisional endorsements.

Office use

LG No: Extended till:

Validity Period: Extended on:

Claim Period: Invocation received on:

Details of Margin Security: Disposal of Invocation

(By payment /by rejection)

Commission Rate:

Commission Collected

Indian Overseas Bank

Cable: Telex:

Amendment to

Documentary Credit

Number:

Date of Amendment Place and date of Issue

Applicant Beneficiary

Advising Bank: Reference No: This amendment is to be considered as part

of the above mentioned credit and must be

attached thereto.

The above mentioned credit is amended as follows:

All other terms and conditions remain uncharged.

The above - mentioned Documentary Credit is subject to the Uniform Customs

and practice for Documentary Credits (1983 Revision)

ICC Paris, France, Publication No. 500.

Please advice the Beneficiary

(Name Sign No.) Name .Sign No)

Authorised Signatures.

Advising Bank’s notification

________________________

Place, date name and signature of the

Advising Bank

F288(1205)250Px251/5KRP

Indian Overseas Bank

Cable: Telex:

Amendment to

Documentary Credit

Number:

Date of Amendment Place and date of Issue

Applicant Beneficiary

Advising Bank: Reference No: This amendment is to be considered as part

of the above mentioned credit and must be

attached thereto.

The above mentioned credit is amended as follows:

COPY

All other terms and conditions remain uncharged.

The above mentioned Documentary Credit is subject to the Uniform Customs and

practice for Documentary credits (1983 Revision)

ICC Paris, France, Publication No. 500.

Please advice the Beneficiary

(Name Sign No.) Name .Sign No)

Authorised Signatures.

Advising Bank’s notification

________________________

Place, dates name and signature of the

Advising Bank

F288(1205)250Px251/5KRP

TAKE DELIVERY LETTER (GOODS)

The Manager Place:………………………

Indian Overseas Bank Date:………………

………………………..

Dear Sir,

Please take delivery of the following goods as security for cash credit/loan against

commodities in terms of my/our agreement:

Description of goods Quantity Unit Weight Address of Godown where Stored

Yours faithfully,

F 296

GODOWN KEEPER’S CERTIFICATE

The Manager Date…………………..

Indian Overseas Bank

………………………………….

Dear Sir,

I hereby certify that I have taken possession of undermentioned goods and that they

are stored in the Bank’s Godown which has been duly secured by the Bank’s locks

and the Bank’s sign-board is exhibited.

Description of goods Quantity Unit Weight Address of Godown where stores

Yours faithfully,

Indian Overseas Bank

Godown Keeper

Indian Overseas Bank………………………………Branch

The Warehouseman, Date………..20……

…………………… …………………….

…………………… …………………….

Dear Sir,

NOTICE OF THE BANK’S LIEN ON SPECIFIED GOODS

Please take notice that

Shri/Messrs…………………………………………………………………has/have

assigned and endorsed over to the Bank and deposited with the Bank as security for

advances granted to him/them warehouse receipt No…………………

Dated ……………………………… issued by you

covering……………………………………………………………………

(description or goods)

The aforesaid goods or any part thereof shall not at any time be delivered by you

except on the production of your receipt above mentioned duly discharged by the

Bank or with the consent of this Bank.

This notice is sent to you in duplicate and we shall be glad if you will please

return to us one copy thereof duly signed by you, in token of your having received it

and of your agreement (a) to hold such goods in future as warehouseman for the

Indian Overseas Bank and to continue so to hold the same not withstanding that the

period upto which the goods have been accepted for deposit shall have expired. And

(b) not to sell, hypothecate, charge or otherwise deal with or dispose of the goods ,

except where, in the case of goods of perishable nature, it is apprehended that by

continued storage they will deteriorate greatly in value or injure other property, in

which event, you shall give such notice as is reasonable and possible under the

circumstances to the Indian Overseas Bank, being lawful holder of the warehouse

receipt and also to Shri/Messrs.

the original depositor requiring the goods to be received from the warehouse and if

upon their falling to do so, you dispose of the goods by public sale the sale proceeds,

less any costs incurred and charges due to you shall be held by you on account of the

Indian Overseas Bank and shall be payable to the said Bank.

Yours faithfully

MANAGER

Date : This form has to be printed in duplicate. The certificate as on reverse has

to be printed on the backside of the duplicate copy blue colour paper) only.

F374(010965)

The Bank’s lien has been noted in warehouse register. The within mentioned

goods or any part there of will be permitted to be received or dealt with from the

warehouse in any manner by the deposit without the written permission of the Bank

previously obtained. Notwithstanding any agreement to the contrary with the

depositor, the goods will be delivered to the Bank on demand without any reference

to the depositor or his consent .The Bank is at liberty to inspect through its officers,

the goods under lien to them during the hours of business . The Bank will be notified

of any loss or damage to the goods before taking any action to auction the goods in

accordance with State/Central Government warehousing rules.

Dated…………………..20

Signature of Warehouseman

F 374

Indian Overseas Bank

AGREEMENT FOR ADVANCES AGAINST PLEDGE OF WAREHOUSE

RECEIPTS

To

Indian Overseas Bank Place:…………………..

Date:…………………...

Dear Sirs,

I/We hereby acknowledge to

have delivered to

you………………………..

………………………………………

………………………………………

….

documents of title to goods described

in general terms in the schedule

hereto as security for due repayment

of the debit due by me

/us………………………………

for the sum

of……………………………………

……………………………….

Rupees………………………………

………………………………………

……

………………………………………

……………………………… by

way of principal of interest thereon

at the rate of

…………………………………..%

per annum or such rate as may be

fixed by the Bank from time to time

and all changes to be made by you in

connection therewith and also all

necessary expenses (ordinary as well

as extraordinary ) costs and charges

which may be incurred by you in

respect of the possession or for the

preservation of the said

goods/documents of title goods.

2. I/We agree that in the event of

my/our failing to pay you on demand

the said sum of

Rupees………………………………

……………………….

………………………………………

……………… together with interest

thereon and all costs charges and

expenses incurred by you in

connection therewith or in respect of

the possession of the

goods/documents of title to goods, or

Stamp

in the event of my/our failure to

observe or perform any of the terms

and conditions hereof, you shall be

entitled without any previous notice

to me/us or consent on my/our

part(notwithstanding any notice

required by law or otherwise to be

given the right to which notice is

hereby expressly waived by me/us)

and without prejudice to any of your

other rights or remedies, to sell or

otherwise, dispose of either by public

auction or private contract as you

may consider advisable at any time

or times the goods pledged as

aforesaid or any part or parts thereof

and to appropriate the net sale

proceeds in the first instance towards

the costs, charges and expenses due

to you for the keeping of and selling

the said goods and then towards the

debt due and all interest and charges

thereon. It after appropriation made

as above , any surplus remains , you

shall be at liberty to apply and

appropriate the amount against any

other debts or liabilities of mine/

ours to you , whether alone or jointly

with any persons of firm (whether as

principal debtors or as surety)

whether the same be secured or, and

whether such debts had become

due or not. You shall have also the

right without any previous notice to

me/us to set-off or appropriate any

sum or sums of money standing to

my/our credit in any account at any

office of your bank towards the debt

due by me/us , in the event of my/our

failure to pay the debt on demand or

in the event of any deficit existing

even after appropriating the sale

proceeds of the goods.

3. I/We agree that I/we shall accept

without question the Bank’s account

of such sale or sales or other

transactions signed by any authorised

officer of the Bank as sufficient

proof of the amount realised by the

sale or sales and the costs, charges

and expenses incurred in connection

therewith.

4. I/We agree that the Bank shall not

be responsible for any loss from or

through any Brokers or Auctioneers

employed in the sale or sales of the

said goods or in any other manner

whatsoever in respect of the said

goods.

5. I/We hereby engage and undertake

to maintain at all times in favour of

the Banks a margin of ………….%

between the market value from time

to time of the goods and the balance

due to you from time to time . Such

margin is to be calculated on the

market value of the goods as fixed

by you from time to tome and is to

be maintained by me/us either by the

delivery be me /us of further security

to be approved by you or by cash

payment by me/us of sufficient sum

so to maintain unimpaired the said

margin. In assessing the market

value of the goods and arriving at the

loanable value of the goods pledged

after reserving the requisite margin,

you shall be the sole judge.

6. I/We undertake to insure and keep

insured the said goods at all times

and from time to time its full value

against fire and all other risks as

required by you with Insurance

companies approved by you and to

deliver to you the policy or policies

of Insurance duly transferred in your

favour. In the event of my/our

failure to do so, you shall be entitled

to insure the said goods at my/our

expense and on m/our account and

debit the charges to my/our account

and I/we shall be bound to repay you

on demand all such sums so paid by

you or debited to my/our account.

7. In the event of loss or destruction

by fire or otherwise you shall be

entitled to recover the receive all

monies payable in respect of the

insurance and appropriate it towards

the debt of me/us and the previous

Clause (2) suppra shall also apply in

such cases as if there had been

realisation of the value of the goods

by sale.

8. I/we further agree that,

notwithstanding the charge of the debt

due by me/us as security for payment

of which I/ we have pledged with you

the goods/documents of title to goods

mentioned in the schedule here to you

shall have the right to retain and hold

such goods which may remain in

my/our possession at the time of the

discharge of the debt for which they

were originally pledged as and by way

of security for all other debts or

liabilities of mine/ours owing to you

on any account at any office of the

Bank (whether singly or jointly,

whether as principal debtor or as

surely) and you shall have all the

rights of a pledge over the said goods

in respect of such debits or liabilities

and all such powers and discretions as

are exercisable by you in respect of

the goods so remaining.

9. I/we agree that you shall not be

required to sell the goods pledged

before suing me/us on the debt due, as

it is purely optional on your part so to

do and that we shall not dispute your

right to sue me/us on the debt due,

retaining the goods/ document of title

to goods pledged by me/us as security.

10. I /we agree that you shall not be

answerable or responsible for any

damage or depreciation which the

said goods and property may suffer

while in your possession and that we

shall not also hold you responsible for

any loss or shortage or diminution in

quantity or weight of the goods caused

by theft burglary or any other cause

and that such loss or damages or

depreciation or diminution shall be

suffered and borne by me/us wholly.

11. I/we hereby acknowledge that you

have accepted pledge of the goods

hereunder on the distinct

understanding that you shall not be

held liable to me/us or my/our heirs,

assignees, administrators or executors

or any person claiming right or title to

the goods under or through me/us for

accountability on the ground of any

shortage of any quantity or any defect

or variation in the quality, nature,

condition and contents of the said

goods as represented by me/us and

that the pledge of the goods was taken

by you on the faith of my/our

representation as to the quantity,

quality, condition, nature and contents

of the said goods and without

verification of the correctness of

my /our representation on the strength

of which wholly you were induced to

act by me/us (notwithstanding any

certificate of any godown-keeper or

other employee of the Bank

acknowledging receipt of goods as

represented by me/us or delivery to

the Bank).

12. I /we hereby declare that I /we have

every right to pledge the

goods/documents of title to goods

hereby pledged and to create a valid

pledge thereof in your favour and that

there are no encumbrances, lien or

attachment of any kind or any sort,

over the same.

13. I/we agree that all other securities

given by me/us on any other account

or in respect of any other transaction

of mine/ours with you shall, in so far

as the same shall not have been

exhaust, be available to you as further

security for the debt or liability

secured under this instrument of

pledge.

14. I/we agree to have the Bank’s lien

noted in the Warehouse Certificate

and deliver the same to you before

drawing any advance together with an

undertaking by Warehouseman to the

following effect that the goods or any

part thereof will not be permitted to be

removed or dealt with from the

warehouse in any manner by the

depositor without the written

permission of the Bank previously

obtained; and that notwithstanding

any agreement to the contrary

between the depositor without the

written permission of the Bank

previously obtained; and that

notwithstanding any agreement to the

contrary between the depositor and

warehouseman the goods will be

delivered to the Bank on demand

without any reference to the depositor

or his consent; the Bank is at liberty to

inspect, through its officers, the goods

under lien to the Bank during the

house of business; that the

Warehouseman shall give notice to

the Bank in case of any loss or

damage to the goods when it is in

deposit in the Warehouse and before

taking any action to auction the goods

deteriorating or about to deteriorate in

the warehouse in accordance with the

state/Central Warehouse Rules.

15. I/we agree to indemnify you and

keep you indemnified against all

losses, damages, claims demands,

costs, charges and expenses sustained

by you or made against you in respect

of the goods pledged under this

instrument.

16. I/we further agree that the security

delivered to you from time to time

shall be security to you for the

repayment of the ultimate balance

outstanding unpaid in the

loan/overdraft/cash credit account and

I am /we are to remain liable for the

balance not withstanding the fact that

by payments made into the account,

the loan/overdraft/ cash credit may

stand reduced or extinguished or the

balance in the said account/s brought

to credit from time to time or at any

time.

17. I/we hereby accept that this pledge

of mine/ours carries with it your right

to repledge the said goods to which

I/we hereby expressly give my/ our

consent.

-------------------------

SCHEDULE

Description of Document

F375 Signature:…………..

Address:…………….

………………

LETTER OF UNDERTAKING REPAYMENT IN INSTALMENT

Manager Place ……………………

Indian Overseas Bank Date …….………………

………………………………..

Dear Sir,

With reference to the loan of Rs. ….

(Rupees……………………….. only)

granted to me/us please permit me/us to

repay the said loan of

Rs………………… in equal …………

instalments of Rs. …………. each

……. the first of such instalment

payment to commence from ……. Day

of ………. 20

Notwithstanding anything contained

herein or in the loan/security documents,

the Bank will have the option in its

discretion to recall the entire loan

amount or any part thereof and to

enforce the security in the following

circumstances or when the Bank

suspects or has reason to believe the

Borrower has /have violated or is /are

violating the terms and conditions

contained herein.

a. any instalment of principal

remaining unpaid for a period of

15 days after the respective due

date for the payment thereof.

b. any interest remaining unpaid

and in arrears for a period of 3

months after the same shall have

become due whether demanded

or not.

c. any representation or statement

made herein by the Borrower

being found be materially

incorrect.

d. the Borrower committing any

breach or default in the

performance of or observance of

any term or condition or

provision contained in these

presents and /or in the security

documents or any other term or

condition relating to the advance.

e. the Borrower entering into any

arrangement or composition with

the Borrower’s creditors on

committing any act of

insolvency;

f. the Borrower committing any

act, the consequences of which

may lead to the winding up of

Borrower’s business:

g. execution or distress of other

process being reinforced or

levied upon or against the whole

or any part of Borrower’s

property whether secured to the

Bank or not.

h. the borrower going into

liquidation (except for the

purpose of amalgamation or

reconstruction with the approval

of the Bank);

i. the Borrower (if an individual) or

any of the partners of the

Borrower (if a firm) being

adjudicated insolvent or taking

advantage of any law for the

relief of insolvent debtors; or

entering in any arrangement or

composition with his creditors or

committing any act of

insolvency;

j. a Receiver being appointed in

respect of the whole or any part

of the property of the Borrower.

k. the Borrower ceasing or

threatening to ceaase to carry on

business; or giving or threatening

to give notice of his/its intention

to do so or dispose of the whole

or any substantial part of the

business.

l. if the Borrower shall stop

payment or threaten to do so;

m. if the Borrower shall without the

consent in writing of the Bank

create or attempt or purpose to

create any mortgage, charge,

pledge, hypothecation or lien or

encumbrance ranking priority to

paripassu with or create any

mortgage; charge, pledge,

hypothecation or lien or

encumbrance subsequent to the

security given or to be given to

the Bank for the above loan.

n. it being certified by an

accountant or a firm of

accountants, appointed by the

Bank (which the Bank is entitled

and authorised to do at any time)

that the liabilities of the

Borrower exceed its/his assets or

that the Borrower is carrying on

business at a loss;

o. the occurrence of any event or

circumstances which is pre-

judicial to or impair or imperils

or depreciates or jeopardizes or is

likely to prejudice or impair or

imperils or depreciate or

jeopardize the security given to

the Bank and

p. the occurrence of any event or

circumstances which would or is

likely to prejudically or adversely

affect in any manner the capacity

of the borrower to repay the loan.

On the question of any of the

matters, event or circumstances

mentioned in the sub-clause (a)

to (p) above has happened, the

opinion and/or decision of the

Bank shall be conclusive and binding

on the Borrower.

Your faithfully,

…………………..

(Counter Signature of Guarantor)

F378 Revised

CONFIRMATION LETTER : DEPOSIT OF TITLE DEEDS

To Place :…………….

The Manager, Date :…………….

Indian Overseas Bank

……………………… Branch

Dear Sir,

I/we write to put on record that as

already agreed upon I/we have on …………………………. deposited with you at

…………………………………… the following ………………………..….

documents of the title to immovable property/properties (listed below) with an

intent to secure the repayment to the Bank of moneys that are now due or shall from

time to time or at any time be due from.

……………………………………………………………………………………… or

me/us either solely or jointly with any other person or persons to the Bank whether

on balance of account or by discount of otherwise in respect of Bills of Exchange,

Promissory Notes, Cheques and other negotiable instruments or in any manner

whatsoever and including interest, commission and other banking charges and any

law costs incurred in connection thereto.

LIST OF DOCUMENTS

SL. No. Nature of the Deed

and date

Brief description

of property/properties

Depositors estimate

of value of the

property /

properties.

Yours faithfully,

…………………………

F379

CONFIRMATION LETTER : SUPPLEMENTARY NARRATION

The Manager Place : ……………..

Indian Overseas Bank Date : …………………..

……………………………..

Dear Sir,

I have already deposited the title deeds on ………………………….. of the property

situated at ………………………..... (full description of the property and its address) with

an intention to create a mortgage thereon for the advances granted or to be granted to

Shri. ……………………………….. As already agreed to by me I hereby authorise you

to continue to hold the said title deeds relating to the above said property as

continuing collateral security for the advance made and to be made to

Shri………………...

And all other indebtedness and liabilities of his whatsoever and all costs and charges

outstanding at anyone time together with interest thereon.

I undertake to produce nil encumbrance certificate on the property upto date.

LIST OF TITLE DEEDS

Yours faithfully,

F379A ………………...

LETTER OF CONFIRMATION (APPLICABLE FOR LIMITED COMPANIES)

To Place : ……………………….

The Manager Date ………………………….

Indian overseas Bank

……………………Branch

Dear Sir,

We, M/s ……………… Limited (herein after referred as the Company) write to put on

record that as already agreed upon we have on ……….. deposited with you at ……….

the following documents of title to immovable property /properties (listed below) with

an intent to secure the repayment to the Bank of moneys that are now due or shall from

time to time or at any time be due form …………… or us either solely or jointly with

any other person or persons to the Bank under any credit facility / limit by way of

………….. (nature of facility) or by discount or otherwise in respect of Bills of

Exchange, Promissory Notes, Cheques and other negotiable instrument to the extent of

Rs. ……………. and for all other indebtedness and liability of the company whatsoever

and for all costs, commission, charges etc outstanding at any time together with interest

thereon.

LIST OF DOCUMENTS:

Yours faithfully,

For …………………….. Limited

F379B ………………………………….

(Authorised Signatories)

(Company’s rubber Stamp and Signatures)

CONFIRMATION LETTER (APPLICABLE FOR LIMITED COMPANY MORTGAGOR)

EVIDENCING CREATION OF SUPPLEMENTAL MORTGAGE

To

The Manager Place …………………..

Indian Overseas Bank Date ………………..

……………… Branch.

Dear Sir,

We had already deposited the title deeds on behalf of ……………. Limited (hereinafter

called the “Company”) on ………………….. of the property situated at ………………

(full description of property and its address) with an intention to create a mortgage

thereon for the advances such as ………… (nature of credit facility secured against

mortgage) granted and /or to be granted to ……………………..

As already agreed by us we had authorised you on behalf of the company to continue to

hold the said title deeds relating to the above said property as continuing collateral

security for the further advances such as enhancement in …………….. facility

/additional facility of ……………………….. (nature of additional facility) made and/or

to be made to ………………. to the extent of Rs. …………….. (addition/enhance

limit) and for all costs, commission charges and expenses outstanding at any one time

together with interest thereon and we further stated that the mortgage would remain as

continuing collateral security for the agregage limit of Rs……………. (Total of

original and addition /enhanced limit) and for all costs, commission, charges and

expenses outstanding at any one time together with interest thereon.

We undertake to produce nil encumbrance certificate on the property up-to-date.

LIST OF TITLE DEEDS

Yours faithfully,

For…………… Limited

(Authorised signatories)

Company’s Rubber Stamp and Signature) F379C

Indian Overseas Bank

AGREEMENT OF TERM LOAN

AND HYPOTHECATION

THIS AGREEMENT MADE at …….

this ……….………………………. day

of …………………………………

20 ……………….. by ………….

residing at/having place of business at

………………………………………

hereinafter referred to as “the

Borrower” (which expression shall,

where the borrower is a single individual

include his/her heirs executors and

administrators and where the borrower is

more than one individual include all of

them jointly and each of them severally

and their survivor or survivors and the

respective heirs, executors and

administrators or other legal

representatives of the deceased

borrower (s) in FAVOUR OF Indian

Overseas Bank a body corporate

constitute constituted under the Barking

Companies (Acquisition and Transfer of

undertakings) Act.1970, having its

Central Office at 762, Anna Salai,

Madras – 600 002 and a branch situated

among other places at ……………….

Hereinafter referred to as “The Bank”

which expression shall include its

successors and assigns. WHEREAS the

borrower has applied to the Bank for a

loan which the Bank has agreed to grant

to the extent of Rs…………………

(Rupees

…................................................. only)

upon having the repayment thereof

secured on the terms and conditions and

in the manner hereinafter mentioned.

AND WHEREAS the Bank has at the

request of the Borrower agreed to

disburse the said loan either in one

lumpsum or such amounts as may be

mutually agreed upon by the parties to

be utilized by the borrower for the

purpose mentioned in the loan

application submitted to the Bank.

NOW IN CONSIDERATION of the

promises it is hereby agreed as follows:

1. The Borrower shall repay to the

Bank the said loan of

Rs………….. (Rupees

………………………………...

only) as per the repayment

programme mentioned in the

Stamp

Schedule hereunder or in the

absence of anything mentioned

in the Schedule in

…………….. equal monthly

installment of Rs……………….

(Rupees

…………………………………

. only) the first of such

instalments being payable on

……………. and each of the

subsequent instalments being

payable on or before the last

day of the succeeding month

for which the instalment is due

until the entire loan is repaid.

2. The Borrower shall, as long as

the said loan or any part thereof

remains unpaid, pay to the Bank

interest thereon or on the

balance thereof due from time to

time at the rate of …… % per

annum over Prime Lending

Rate of the Bank with monthly

rests or such other rates and

rests as may be notified by the

Bank to me / us from time to

time and shall be calculated and

charged as the daily balance in

the Bank’s favour due upon the

said account until the same is

fully liquidated and shall be

paid by the borrowers as and

when demanded by the Bank.

3. Where in as per the terms of

sanction, the loan is repayable in

equated instalments comprising

of both principal and interest

the Borrower (s) hereby agree

(s) that he/they shall repay the

Bank the principal sum together

with interest as per the

repayment programme

mentioned in the Schedule

hereunder or in the absence of

anything mentioned in Schedule

in equaled instalments of

Rs…………. payable every

month………………………..

the first of such instalmens to

commence from ……………..

and in case of delay in

repayment of any instalment

he / they shall pay overdue

interest on the defaulted amount

at Rs. ………………….. per

Rs.100/- per month till the date

of the payment of the

instalment.

4. As security for the repayment to

the amounts due under this

Agreement the borrower hereby

hypothecated unto the Bank by

way of first charge the movable

assets /property / machinery /

goods described in Schedule

hereunder written (hereinafter

called the “hypothecated goods”

which expression shall where

required or necessary include all

things, fixtures, furniture, tools

accessories and part whatsoever

pertaining to the said

hypothecated goods /

machinery and all replacement

of additions made to the

Hypothecated goods/machinery

from time to time as security

for due repayment by the

borrower the bank at

…………………………………

…………………………………

of the said loan of Rs………

and interest there by

instalments in the manner

aforesaid and for costs, charges

and expenses (the legal costs

being between /Advocate and

Client) incurred by the Bank for

the protection, preservation,

defence and perfection of this

security and for attempted or

actual realisation thereof.

5. The borrower declares and

guarantees that the

hypothecated goods /machinery

are and shall remain the

absolute and unencumbered

property of the borrower with

full power of disposition and

undertakes to indemnity the

Bank against every and any kind

of loss or damage by reason of

damage to or destruction or loss

of the hypothecated

goods/machinery from any

cause whatsoever or by reason

of any claims by third parties.

6. So long as any money remain

due in respect of the said loan,

the borrower shall not remove

or cause or permit to be

removed the hypothecated

goods/machinery from the

borrower’s premises at ……….

Where the same are presently

kept except in the manner and to

the extent allowed by the Bank

of except for effecting necessary

repairs thereto. The Bank shall

be entitled and the borrower

hereby gives his consent to the

Bank to put up Bank’s name –

board at the place where the

hypothecated goods/machinery

are or may be stored at such

time and in such time and in

such manner as the Bank may

deem proper.

7. The hypothecated

goods/machinery shall at all

times during the currency of this

security and so long as any

money shall remain due and

owing in the said loan account

be maintained in good and

saleable condition and insured

and kept insured by and at the

expense of the borrower against

fires and such other risks as may

be required by the Bank or be

required by the law to the full

extent of the value thereof in an

insurance Office or officers

approved by the Bank in the

name of the Bank or in the name

of the borrower and assigned

to the Bank and in either case

the policies shall be handed over

to the Bank. The borrower

shall duly and punctually pay

the premia due on the polices

atleast one week before the

same shall have become due or

payable and hand over the

receipts to the Bank and the

borrower agrees not to raise at

any time any dispute as to the

amount of the insurable interest

of Bank. If the borrower shall

make default in effecting such

insurance as aforesaid on

renewing any policy or in

payment of such premia or

keeping the hypothecated

premises so insured or in

delivering to the Bank the

policies or receipts for the

premia is shall be lawful (but

not obligatory) for the Bank to

effect such insurance or to

renew or to pay such premia and

keep the hypothecated

goods/machinery insured and to

debit the expenses incurred by

the Bank for this purpose to the

said account and the same shall

be treated as advances secured

by this Agreement. The

borrower agrees to pay the same

on demand with the interest at

the rate aforesaid. All sums

received under any such

insurance as aforesaid shall after

deduction for all expenses be

applied in or towards the

liquidation of the balance due to

the Bank for the time being and

in the event of there being a

surplus the same shall be

returned to the borrower, subject

to the Bank’s lien in respect of

the borrower’s other dues to the

Bank if any. The borrower

agrees that if any moneys under

any such insurance are received

by the borrower, he will pay the

same forthwith to the Bank and

in the event of the insurance

amount so applied for

liquidation of the balance due to

the Bank leaving a shortfall in

the account. The account the

borrower agrees to remit cash or

give adequate alternate security

to cover shortfall.

8. The borrower shall not during

the continuance of this

Agreement sell, dispose off,

pledge hypothecate or otherwise

charge encumber or in any

manner part with the possession

of the hypothecated

goods/machinery or any part

thereof nor shall the borrower

do or permit to be done any act

whereby the security herein

before expressly given to the

Bank shall in any way be

prejudicially affected or

whereby any distress or

attachment or execution may be

levied thereon by any creditor or

other person including any

Government or Municipal

authority or body.

9. The borrower shall duly and

punctually pay, perform and

observe all rents, rates, taxes

assessments and obligations

which ought to be paid or

performed or observed by the

borrower in respect of the said

business premises and shall

inform the Bank promptly of

any notice or intimation

received from any of the

authorities , viz., Government,

Semi – Government, Municipal

or local or other authorities

regarding any default, delay

etc., by the borrower in the

performance of the borrower’s

obligations towards them.

10. The borrower shall so long as

the loan or any part thereof

remains unpaid, maintain books

of accounts and ledgers and

other records, documents

relating to this business for the

purpose and promotion of which

the loan has been obtained by

him from the Bank and allow

inspection thereof by any of

Officers authorised by the Bank

in this behalf.

11. It shall be lawful for the Bank

and any of the Officers

authorised by it in this behalf,

without notice and at the

expense in all respects, of the

borrower to enter any time into

or upon the Offices, Godowns

of the borrower or places of

strange or any of the borrower

hypothecated goods /machinery

for the purpose of making

inspection or checking the

hypothecated goods, machinery

for the purpose of making

inspection of or checking the

hypothecated goods/machinery

and taking account and

inspecting of the books of

account of the borrower (which

the Bank is hereby authorised to

do) and it shall also be lawful

for bank from time to time as it

may deem fit to have all or any

of the hypothecated goods /

machinery for the time being so

hypothecated and charged as

aforesaid valued by and

appraiser or other valuer to be

appointed by the Bank and all

such valuation shall be debited

to the borrower in the said Loan

Account and be payable

accordingly and shall until

payment be treated as an

advance secured by the

agreement.

12. The borrower shall furnish to

the Bank all such informations,

declarations, affirmations etc. as

the Bank may from time to time

require including change in his

address or the address to which.

the hypothecated stocks may be

removed subject to Clause 6

above, and shall give an execute

necessary documents required to

give effect to this security or

for any other purpose.

13. The Borrower shall furnish to

the Bank such statements and returns of

the cost and market value of the

securities and a full description thereof

and produce such evidence in support

thereof as the Bank may from time to

time require and shall at all times during

the continuance of this security keep and

maintain such margin of security as may

be required by the Bank from time to

time . If and so often as the margin shall

fall to be maintained then the borrower

shall forthwith (according as the Bank

may require) either hypothecate to the

Bank further goods/machinery or

tangible/moveable property of sufficient

value approved by the Bank to make up

the deficiency or shall reduce the amount

for the time being due to the Bank by

cash payments so as to maintain the said

margin.

14. If the borrower makes any default in

payment of any instalment of principal

or interest on the said loan or any of

such instalment on the respective due

dates of payment thereof as mentioned

above or if any event or circumstance

shall occur which shall in the opinion of

the Bank be prejudicial to or endanger or

be likely to endanger the security by or

any other event or circumstances

mentioned in Clause 16 hereunder

happens or occurs, the Bank, if it thinks.

Shall be entitled at the risk and expense

of the borrower without any notice at

any time or time after such default or

event or circumstances occurs or

happens, to enter (and for that purpose to

do any necessary act, deed or thing) and

remain upon any place hypothecated

goods or the books of accounts of the

borrower may be kept and to inspect

value, insure and take charge or

possession and/or to seize remove to

other place or places, as the Bank

deems, if necessary recover, receive,

appoint Receiver of all or any part of the

hypothecated goods/ machinery or books

of account and thereupon forthwith or at

any time and from time to time but after

giving not less than 43 hours notice at

least to sell either by public auction or

private contract or otherwise dispose of

or deal with the hypothecated goods/

machinery in such manner and upon

such terms and conditions as the Bank

shall think fit and to apply the net sale

proceeds towards repayment of the

ultimate balance due in the said Loan

account and interest due thereon upto the

date or such application and to enforce,

realise, settle, compromise and deal with

any rights aforesaid without being bound

to exercise, any of these powers or being

liable for any losses in the exercise

thereof and without prejudice to the

Bank’s rights and remedies of suit or

otherwise and notwithstanding there may

be any pending suit or other proceeding.

The borrower hereby also agrees to

accept the Bank’s accounts of sales and

realisation and to pay any shortfall of

deficiency thereby shown immediately

on demand made by the Bank and if the

net sum realised by such sale shall be

insufficient to pay the amount hereby

secured the bank shall be at liberty to

apply and other money or moneys in the

hands of the bank standing to the credit

of or belonging to the borrower in or

towards the payment of the balance and

in the event of there being still a

deficiency, the borrower shall forthwith

pay such deficiency on demand provided

that nothing herein contained shall in

any manner prejudice or affect the

Bank’s remedy, to proceed against the

person or the borrower.

15. The borrower agrees to accept as

conclusive proof of the correctness of

any sum claimed to be due from him to

the Bank under this Agreement,

statement of account made out from the

books of the Bank and signed by the

Manager/ Dy. Manager and/or other duly

authorised Officer of the Bank without

the production of any other voucher,

document or paper.

16. The Bank shall not in any

way be liable or responsible

for any loss, damage or

depreciation which the

hypothecated

goods/machinery or any part

thereof may suffer or sustain

on any account whatsoever

while the same shall at any

time come into possession of

the bank or of any Agent or

Receiver appointed by the

Bank.

17. “Notwithstanding anything

contained herein or in the

loan/security documents the

Bank will have the option in

its discretion to recall the

entire loan amount or any

part thereof and to enforce

the security in the following

circumstances or when the

Bank suspects or has reason

to believe that the

borrower(s) has/have

violated or is/are violating

the terms and conditions

contained herein:

a. any installment of

principal or interest of any

part thereof in respect of the

said loan being unpaid for the

period of 15 days after the

respective due dates for

payment thereof.

b. any representation or

statement in the borrower’s

loan application being found

to be materially incorrect.

c. the borrower committing

any breach or default in the

performance of or observance

of any term or condition

contained in these presents or

in the said Loan Application.

d. execution or distress or

other process being enforced

or levied upon or against the

whole or any part of the

borrower’s property whether

secured to the Bank or not.

e. the borrower being

adjudicated insolvent or

taking advantage of any law

for the relief of or insolvent

debtors or entering into any

arrangement or composition

with his creditors or

committing any act of

insolvency.

f. if the borrower shall

without the consent in writing

of the Bank create or attempt

or purport to create any

mortgage, charge, pledge,

hypothecation or lien or

encumbrance on the

hypothecated

goods/machinery which is the

subject of the Bank’s security

here under.

g. if the borrower stops

payment or cease or decides

to cease to carry on his

business or disposes off the

whole or any substantial part

of the business.

h. if any event or

circumstances shall occur

which shall in the opinion of

the Bank be prejudicial to or

endanger or be likely to

prejudice to or endanger its

security hereunder.

i. on the question whether

any of the matters, event or

circumstances mentioned in

sub-clauses (a) to (h) above

has happened, the opinion of

the Bank shall be conclusive

and binding on the borrower.

18. The borrower agrees to open

and or maintain with the

bank, Saving Bank Account

and keep the account in

sufficient funds and hereby

irrevocably authorise the

Bank to debit the same with

the amount of each

instalment of the loan and

interest thereon as and when

it falls due. The Bank shall

also have the right to set off

the balance due in the said

account against the balance

due in the said Loan Account

at any time after the balance

in the said Loan Account has

become payable under the

terms hereof.

19. Where the borrower is more

than one individual, each one

of them shall be bound and

liable hereunder jointly and

severally with the other or

others of them and all

convenants, conditions

agreements herein contained

shall be performed by them

and each of them jointly and

severally.

20. The acceptance by the Bank

of the security created and

effected by these presents

shall not be deemed in any

manner whatsoever to

supercede, vary, limit,

restrict, extinguish or

otherwise prejudice the other

rights and remedies available

to the Bank and on delay in

exercising or omission to

exercise any right, power or

remedy occurring to the

Bank upon any default on the

part of the borrower to

comply with this. Agreement

or any other document shall

impair any such right power

or remedy or shall be

construed to be a waiver

thereof or any acquiescence

by the Bank in such default;

nor shall the action or

inaction of the Bank in

respect of any default of the

borrower as aforesaid or any

acquiescence by the Bank of

any such default affect or

impair any right power or

remedy in respect of any

such default on the part of

the borrower.

21. Any notice by way or request

or otherwise hereunder may

be given by the Bank to the

borrower personally or may

be left at the address given

above or at the then or last

known place of business or

residence of the borrower in

the Republic of India as the

case may be addressed to the

borrower or may be sent by

post to the borrower as

aforesaid and if sent by post

such notice shall be deemed

to have been given at the

time when it would be

delivered in due course of

post and in proving such

notice when given by post, it

shall be sufficient to prove

that the envelope containing

the notice was posted and a

certificate signed by the

Bank’s Local Manger. Dy.

Manager or any Officer

authorised in that the

envelope was so posted shall

be conclusive. If by reason of

absence of the borrower from

the place mentioned, above

or otherwise any such notice

to the borrower cannot be

given, then the same if

inserted once as an

advertisement in a newspaper

circulating in the district

where the borrower was last

known to reside or carry on

business, shall be deemed to

have been effectually given

and received on the day on

which such advertisement

appears.

22. The borrower is aware that

this loan is granted under

…………………………

……………………………

…………………………….

scheme, the terms and

conditions of which should

be complied with and the

borrower agrees that

notwithstanding anything

contained in this agreement,

the bank shall have the right

to withdraw the concession

such as reduced rate of

interest, subsidy and treat the

loan as a normal loan with

usual rate of interest in case

the loan amount is/has been

used for any purpose other

than for which it has been

sanctioned or if the bank

apprehends or has reason to

believe that the borrower has

violated or is violating the

condition.

23. In case, the loan is eligible

for guarantee cover under

Small Loans Guarantee

Scheme 1971/Small Loans

(SSI) Guarantee Scheme

1981 of DICGC or any other

scheme, the Borrower agrees

to bear the guarantee fee on

the said loan at the rates

specified from time to time

in accordance with the rules

relating thereto and hereby

expressly authorises the

Bank to debit his/her/their

SB/ CA/Loan account or any

such other account with the

said guarantee fee and

undertakes to maintain

sufficient balance in

his/her/their SB/CA or such

other account for the above

purpose.

24. In witness whereof, the

borrower has hereunto set the

hands on the day, herein

above mentioned.

25.

…………………….

(Signature of Borrower)

F 407

I-SCHEDULE (Description of the hypothecated goods/machinery)

II-SCHEDULE (Repayment Programme in case the Loan is repayable otherwise

than on monthly instalments)

The loan is repayable in …………………… equal ……………………………….

instalment of Rs. …………………………………………………….. each, the first of

such instalments to commence on ……………………………………………………

…………………………………………………………………………..

Signature of Borrower

In case of any discrepancy between the English Version and translated version in other

languages. English Version shall prevail.

(Not to be attested)

Signature of the Borrower

F 407

LETTER OF UNDERTAKING TO BE OBTAINED FORM SMALL SCALE

INDUSTRIAL UNITS

The Manager Place ………………………

Indian Overseas Bank Date ………………………

Dear Sir,

With reference to the credit facilities availed by me/us, this is to place on record

that the Bank will have a right to recall all or any of the advances granted by it to me/us

notwithstanding anything contrary contained in any agreements/ documents executed by

me/us in Bank’s favour for availing of advances form the Bank, if I/we were to commit a

default in any other account or accounts maintained with the Bank or with any other

account or accounts maintained with the Bank or with any other account or accounts

maintained with the Bank or with any other credit institution/Bank provided such account

or accounts is/are covered under the Credit Guarantee Scheme of the Guarantee

Organisation.

In the event of such recall of the advances, the Bank will also have a right to set

off the amount due to it in respect of the advances so recalled against any amount that

may be due by the Bank to me/us whether under a deposit account of otherwise and

whether such account has become due for payment or otherwise.

In the event of the Bank’s exercising its right to recall the advance, the operations

on any account or accounts maintained with the Bank by me/us can automatically be

stopped.

Yours faithfully,

F 409 ………………………………………………

FORM OF ASSIGNMENT OF GOVERNMENT/OTHER SUPPLY BILLS

We ………………………………………………………………………………….

…………………………………………for valuable consideration received form Indian

Overseas Bank, Madras, hereby assign and transfer all our rights, title and interest in this

Bill and the moneys thereby secured to the said Indian Overseas Bank and its successors

or assigns and declare that the receipt passed by the said Bank or its successors or assigns

shall be good and valid discharge of all the moneys secured under this bill.

F414

POWER OF ATTORNEY FOR SUPPLY BILLS

KNOW ALL MEN BY THESE PRESENTS THAT ……………………… ...

……………………………………………………………………………………………

carrying on business as/and having its office at hereby nominate, constitute and

appoint the Indian Overseas Bank …………………………………………………..

branch as our attorney in our name and on our behalf to do or execute all or any

of the acts, deeds and things hereinafter mentioned that is to say:

WHEREAS the said Indian Overseas Bank …………………………………

……………………………………. branch has been purchasing from us, bills

drawn by us on various parties and Government Departments on account of

services rendered and supplies made to them and

WHEREAS it has been considered expedient and necessary that the said

Indian Overseas Bank

………………………………………………………………………….. Branch be

appointed as our attorney to collect the said bills.

NOW by this Deed of Power of Attorney, the said Indian Overseas Bank

……………………………………… branch be appointed as our Attorney and

expressly authorised in exercise of the following powers but without prejudice to

the generality thereof, in our name and on our behalf to do all or any of the

following acts and things;

To demand, collect, recover and given effectual bonafide discharge of in

our name and on our behalf all debts, advances and claims due to us. They shall

further have power to take and use all lawful proceedings and means of

recovering and receiving the said debts, advances and to commence and to

prosecute and to defend at law all actions, suits, claims, demands and disputes

and to refer to arbitration and adjust and settle and to compromise all accounts,

suits and demands and for all or any of the purposes aforesaid to do and execute

such papers, documents or things as shall be thought necessary or expedient.

And all and whatsoever our said Attorney shall do or cause to be done by

virtue of these presents or in exercise of these, powers, we hereby agree to ratify

and confirm.

And this power of attorney shall not be revoked without the consent of the

Bank.

In witness whereof we have and to set our hands and seal at

……………………this ……………………………………………………….. in the

presence of

1.

2.

F 415

MEMORANDUM OF DEPOSIT OF TITLE DEEDS

This Memorandum executed on this the ………………………………………

day ……………………………. 20 …………………………. By ………………………

son/wife of ……………………………………………………………………… aged

……………………. religion …………………………………………………………

residing at……………………………………..………………………………………….

(hereinafter referred to as Mortgagor/s) IN FAVOUR OF Indian Overseas Bank, a

Body Corporate constituted under the Banking Companies (Acquisition and

Transfer of Undertakings) Act, 1970, having its Central Office at 762 Anna Salai,

Madras 600 002, carrying on business in banking among other places at

………………………………………………………………………………………………

(hereinafter referred as Mortgagee)

The Mortgagor/s has/have already deposited on ……………………………

the following documents of title relating to his/their property/properties listed

hereunder with the Mortgagee with intent to create and equitable mortgage in

favour of the Mortgagee over the property/properties to which the documents

relate to and described hereunder for the purpose of securing repayment to the

Bank of all the amounts owing to the Bank under advances made and to be

made to Mr. …………………………………… by the Mortgagee by way of

loan/cash credit / overdraft not exceeding Rs……………….. (Rupees

……………………………………………………………………………………. only)

together with interests, charges thereon.

The Mortgagor/s further declare/s that the documents deposited are all

that were in his/their possession and control and that the property/properties

is/are not charged or encumbered in any way whatsoever.

Mortgagor/s

F417

LIST OF DUCUMENTS OF TITLE

1.

2.

3.

4.

SCHEDULE OF PROPERTIES

It witness whereof the Mortgagor/s has/have set his/their hand the day, month

and year first above written.

Witness :

1.

Mortgagor/s

2.

F417

SUPPLEMENTAL MEMORANDUM OF DEPOSIT OF TITLE DEEDS

THIS SUPPLEMENTAL MEMORANDUM executed on this the

………………. ……………. day of ………………………………………. 20

……………..

by…………………………………………………………………………………

son/wife of …………………………… ………………………..aged ………… years

Religion………………………………………….residing at ……………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……… (hereinafter referred as Mortgagor/s) IN FAVOUR OF Indian Overseas

Bank, a Body Corporate Constituted under the Banking Companies (Acquisition

and Transfer of Undertakings) Act, 1970, having its Central Office at 763, Anna

Salai, Chennai – 600 002, carrying on business in banking among other places

at. ……………… ………………………………………….…………….. (Hereinafter

referred as Mortgagee).

The Mortgagor(s) had already deposited/re-deposited (by constructive

delivery) on ………………………………………. the following documents on title

relating to his/their properties with the Mortgagee with the intent to create

equitable mortgage(s) in favour of the Mortgagee over the property to which the

documents relate and described hereunder for the purpose of securing

repayment to the bank all the credit facilities of Rs…………………….together

with interest and charges thereon advanced and/or to be advanced to

Mr/Mrs……………………………………………….as evidenced by Registered

Memorandum(s) dt…………………………………..registered

with…………………………Sub-Registrar Office as document(s) No………………

The Mortgagor(s) had again re-deposited (by constructive deliver)

on……………..the said documents of title with the Mortgagee with intent to

create equitable mortgage in favour of the Mortgagee over the said properties for

the purpose of securing repayment to the bank all further credit facilities of

Rs…………..(Rupees ……………………………………………………. only)

advanced and / or to be advanced to Mr./Mrs. ……………………………………..

by the Mortgagee together with interest, costs, charges and expenses thereon,

over and above the said earlier limits covered under the above Registered

Memorandum(s)

The Mortgagor(s) further declare/s that the documents deposited are all

the were in his/their possession and control and that property/properties is /are

not charged or encumbered in any way whatsoever.

Mortgagor/s

LIST OF DOCUMENTS OF TITLE

SCHEDULE OF PROPERTIES

IN WITNESS whereof the Mortgagor(s) has/have set his set his/their hand on the

day hereunder mentioned.

MORTGAGOR/S

WITNESS (1)

(2)

F 417 A

LETTER OF PEGGING

To

The Manager

Indian overseas Bank

Dear Sir,

CREDIT FACILITIES

A/c ……………………………..

Please refer to the credit facilities sanctioned to the above party,

stipulating interalia that their private borrowings should be pegged for the amount

outstanding in their books of accounts as on ……………………………………..

The account shows a sum of Rs………………………………………. owing by the

company /firm to me as on that date. In consideration of your having extended or

your agreeing to continue to extend various credit facilities by way of Cash

Credit/Loan/D.D. Purchase and Discount of Bills, Issue of Guarantee, Letter of

Credit etc. for account of M/s ………………………………………………..

irrespective of any security / securities you may hold for the liabilities of the

company/ firm to you under any category of advance or other contigent liabilities,

I undertake to keep any way deposit pegged to the amount of

Rs…………………………… during the currency of your advance to them. I also

undertake not to raise any loan form the company/firm against my deposits with

them without the written consent of the bank.

Yours faithfully

Countersigned by Borrower ………………………..

F418

LETTER OF UNDERTAKING BY COMPANY NOT TO

CREATE ANY FURTHER CHRGE OVER THEIR PROPERTY

AND ASSETS, INCLUDING UNCALLED CAPITAL

To

Indian Overseas Bank

…………………………………

As part of the consideration for your making or continuing advances to us(*)

……………………………………………………………………………. Limited on

Demand Loan/Demand Cash credit or otherwise we hereby declare that no

mortgage, charge, lien or encumbrance of any kind other than (?)

………………………………………………………………………………………………

………………………………………………………………………… has been made

or allowed over or affecting our undertaking property (whether movable or

immovable) and assets (including uncalled capital) or any part thereof and that

we undertake that no such mortgage, charge, lien or encumbrance shall be made

or allowed while we remain indebted or liable to you in any manner without your

previous written consent.

Dated ……………………………… 20……

(To be signed by the

Company under seal)

(‘) insert name of the borrowers

(?) insert here short particulars of any existing mortgage etc. including the

Bank’s.

F419

Stamp

MORTGAGE DEED

This indenture executed this day of ………………………… of ……………

20 ……. in favour of Indian Overseas Bank, a body corporate constitute under

the Banking Companies (Acquisition and Transfer of undertakings, Act 1970

having its Central Office at No.762 Anna Salai, Chennai (hereinafter referred to

as ‘the Bank’)

which term shall mean and include wherever the context so permits their

successors in interest and assigns by

1. ..………………………… Son of/Wife of/ Daughter of …………………………

2. …..……………………… Son of/Wife of/ Daughter of …………………………

3. …………………………... Son of/Wife of/ Daughter of …………………………

4. …………………………... Son of/Wife of/ Daughter of …………………………

5. …………………………... Son of/Wife of/ Daughter of …………………………

No……………………………… being minors represented by their father and

guardian ……………………………….. of (address) …………………………………

(hereinafter referred to as “the Mortgagor/s”) which term shall mean and include

his/her/their legal heirs, assigns.

WHEREAS the 1st mortgagor as manager of his Hindu Joint family

consisting of mortgagors …………..has applied to the mortgagee for the

agricultural advance for the benefit and necessity of his joint family.

AND WHEREAS the mortgagor/s is/are the absolute and exclusive

owner/s and is/are otherwise well and sufficiently entitled to piece or parcel of

land specified in the Schedule I hereto, together with all trees, crops (existing and

future) standing on the land and superstructure, fixtures and fittings including

building, machinery, pipeline etc. presently installed and/or that may be installed

thereon (hereinafter for the brevity sake referred to as “the land”) and buildings

thereon (hereinafter referred to as “the land”), which is free form encumbrances,

attachments, charges and liens whatsoever.

AND WHEREAS at the request of the mortgagor/s the bank has

granted/agreed to grant from time to time to the mortgagor/s accommodation to

the aggregate extent of Rs………………………………….. (Rupees

…………………………………………….. ………………………………………………

only), by way of:

1. Cash Credits at any one time upto limit for Rs…………………… (Rupees

…………... …………………………………………… only)

2. Overdrafts at any one time to the extent of Rs…………………………….

(Rupees …………... ……………………………

…………………………………………………………. only)

3. Demand Loans at any one time for Rs……………………………… (Rupees

………….………... ………………………………….. only)

4. Term Loans at any one time of Rs………………………………… (Rupees

….…………... …………only) Strike whichever is not applicable

To be secured inter alia, by a simple mortgage of the land by the mortgagor/s in

favour of the bank. The advance so granted will be subject to the limits of

Rs……………………… at any one point of time during the subsistence of this

mortgage.

Signature of the Mortgagor/s

F512

NOW THEREFORE THIS INDENTURE WITHNESS AS FOLLOWS

In consideration of the

premises aforesaid, the mortgagor/s

hereby covenant/s with the Bank as

follows:

1. The mortgagor/s shall repay to the

Bank.

a. The amount due in respect of

the said Cash

Credits/Overdrafts/Demand

Loans forthwith upon demand by

the Bank. However, in a case

where for any reason Cash Credit

or overdraft is permitted by the

Bank at its absolute discretion to

be repaid in instalments and on

such terms as may be stipulated

by the Bank, the security as held

hitherto shall continue to be

subsisting and the conditions as

to term loans herein shall apply

to the said loan subject to such

changes as may be stipulated by

the bank.

b. The amount due under the

said Term Loans according to

instalments specified in

Schedule II hereunder written;

or as modified form time to

time by exchange of letters

between the mortgagor/s and

the Bank.

c. The mortgagor/s hereby

agree/s that the amount

borrowed from the Bank shall

be utilised for the purpose for

which it was granted.

II. That the mortgagor/s shall pay the

interest on the amounts advances at

…….% per annum with

monthly/quarterly/half-yearly/yearly

rests and in the event of default

agree/s to pay increased interest at

…….% per annum. Provided that

any time and from time to time the

Bank be entitled to change the rate

of interest and notify such change to

the mortgagor/s and such revised

rate of interest shall always be

constructed as agreed to be paid by

the borrower/s and hereby secured.

III. The Mortgagor/s hereby further

covenant/s with the Bank as follows:

a. The Bank shall not be

required to make or continue

any of the loans otherwise

that at the Bank’s discretion.

b. The mortgagor/s shall at all

times keep such items of

mortgaged premises as are of

insurable nature, insured

against loss or damage by fire

and other risks as may be

required by the Bank and

shall deliver to the Bank all

such policies. It shall be also

lawful for but not obligatory

upon the bank to insure and

keep insured by debit to the

mortgagor’s account the

mortgaged premises as are of

insurable nature. The

proceeds of such insurance

shall at the option of the Bank

either be applied towards

replacement of the mortgaged

premises or towards the

satisfaction of the Bank’s

dues hereunder.

c. The Mortgagor/s shall permit

the Bank and its servants and

agents either alone or with

workmen and other form time

to time and at all reasonable

times and without notice to

the mortgagor/s but at the risk

and expenses of the

mortgagor/s and if so required

as Attorney for and in the

name of borrower/s to enter

into and upon the mortgaged

premises and to inspect the

same.

d. The mortgagor/s shall bear

and pay all out of pocket

expenses of such

inspection(s) as may be

carried out by the Bank in

respect of the mortgaged

premises.

e. The mortgagor/s shall have to

pay all taxes kist, revenue

charges etc., payable in

regard to the secured times

as power the Schedule

hereunder and the Bank is

entitled to be indemnified in

that regard, if by the default of

the mortgagor/s such charges

as above referred to are paid

by the Bank.

f. The mortgagor/s agree/s that

all sums of money awarded

as compensation for any

compulsory acquisition or

requisition of any portion of

the mortgaged property shall

be receivable by the Bank

direct on behalf of the

mortgagor/s for adjustment of

the amounts due under this

mortgage.

g. The mortgagor/s agree/s that

this mortgage shall be

deemed to be fully discharged

only when this mortgage is

cancelled by endorsement on

this mortgage deed and

returned to the borrower/s and

not by any other process of

redemption.

h. The mortgagor/s shall not cut

the crops on the said land

without the express written

permission of the Bank during

the subsistence of the said

credit facility and the crops so

cut with the consent of the

Bank shall continue to stand

hypothecated to the Bank and

the mortgagor/s shall not be

entitled to the custody of cut

crops except with the

permission of the Bank and

the mortgagor/s shall not be

entitled to the custody of cut

crops except with the

permission of the Bank and

only for the specific purpose

of further processing the

produce and thereafter

marketing it for specific

purpose of repaying the

monies secured hereunder to

the Bank.

i. The Bank, its agents and

nominees shall be entitled to at

all times without notice to the

mortgagor/s to enter the above

said land or the premises where

the produce raised on the said

land are kept and stored and

inspect and check the same and

also on mortgagor/s default in

payment of any money hereby

secured or the performance of

any of mortgagor/s obligation to

the Bank and also on the

occurrence of the circumstances

which in the opinion of the Bank,

endangers the security, take

possession of, cut and remove

the crop or produce or sell by

public auction or private contract

without being bound to exercise

any of these powers, or being

liable for any loss in exercise

thereof and without prejudice to

the Bank’s remedies of suit or

otherwise.

IV. IT IS HEREBY AGRRED AND

DECLARED by the Borrower/s as

follows:

1.In addition to the security over the

mortgaged premises created

hereunder the mortgagor/s shall be

also personally liable to repay the

loans to the Bank.

2. Without prejudice to the other

rights of and recourse available to

the Bank hereunder.

i if default shall be made by the

mortgagor/s in payment of any

monies for the time being owing on

the security of these presents or in

payment of interest at the rate and in

the manner aforesaid or in

performance and observance of any

covenant condition or provision

herein contained and on his/their

part to be performed and observed.

ii If in the opinion of the Bank

circumstances exist under which the

Bank’s interest are in jeopardy, or

the whole or part of its security is/are

likely to be adversely affected/

reduced / lost / diminished by or in

consequent of any act or omission of

the mortgagor/s of for any other

reason whatsoever, then and in any

one or more of such cases the

monies for the time being owing on

the security of these presents shall

at the option of the Bank immediately

become payable to the Bank and the

Banks shall be entitled to exercise

any of its rights and remedies in its

discretion for realisation of the

mortgage debt and the decision of

the Bank as to whether any one of

more of the aforesaid circumstances

exist shall be conclusive and binding

upon the borrower/s. In the event of

the amount due the Bank hereunder

not being fully satisfied out of the

sale proceeds of the mortgaged

premises the mortgagor/s shall be

liable personally to repay the

balance to the Bank.

3 All the obligations of the

Borrower/s as mortgagor/s and all

the rights and remedies and powers

of the Bank as mortgagee under the

law for the time being in force except

so far as they may be expressly

varied or may be inconsistent with

these presents shall be deemed to

be incorporated in these presents,

PROVIDED THAT the provisions of

sections 61, 65A and 67A,

respectively of the Transfer of

Property Act, 1882, shall not apply to

these presents or to the borrower/s

as Mortgagor/s or the Bank as

Mortgagee interest and this shall be

deemed a contract to the contrary for

the purpose of these sections.

4 The Borrower/s delivered to the

custody of the Bank all the original

documents, concerned papers and

the encumbrance certificates.

V That this mortgage is intended to

and shall operate as a continuing

security for all loans indebtedness

and liabilities of the mortgagor/s to

the Bank at al times during the

subsistence of this mortgage

notwithstanding:-

(a) the existence of a credit balance

of “NIL” balance in accounts at any

time or any partial payment of

fluctuation of accounts; or

(b) any loans or any part thereof

have been repaid either after

demand has been made by the Bank

or otherwise or has not been so

repaid on demand.

VI. If the mortgagor be more than

one individual each one or any of

them is authorised and empowered

by the others of them to admit and

acknowledge their liability to the

Bank by any payment into the

account or by way of express writing

in any manner or otherwise and any

such admission and

acknowledgement of the liability by

one or more of them shall be

construed to have been made on

behalf of each of them.

VII. This mortgage is in addition to

and not in substitution of earlier

mortgages, if any, created by the

Borrower/s in favour of the Bank.

VIII. The contents of this mortgage

deed are explained to the

mortgagor/s in her/his their

Vernacular language and

she/he/they understood the same

THE SCHEDULE I REFERRED TO

ABOVE.

(here enter particulars of land

including the return/ share of the

Borrower (s) interest in Land)

THE SCHEDULE II REFERRED TO

ABOVE

(here enter repayment instalments in

Term Lands)

Witness: (1)

(2)

DUE DATE AMOUNT

Signature of the Mortgagor/s

Signature of Mortgagor/s

F512

LETTER OF UNDERTAKING-TEMPORARY OVERDRAFTS

……………20

To

The Manger

Indian Overseas Bank

………………………………………………

Dear Sir,

This is to place on record that the overdraft granted to me/us in my/our

Current Account at my/our request under you discretion is in the nature of

temporary accommodation. It is in Bank’s sole discretion to continue this facility

and the Bank is within its rights to cancel or withdraw this facility with or without

notice to me/us and without assigning any reason whatsoever. If any cheque /(s)

drawn by me/us in my/ our overdraft account either tendered directly or sent

through clearing is/are dishonored by the Bank for want of adequate funds in the

account, whether as a result your decision not to grant or to withdraw the

overdraft facility or otherwise, I/we shall not hold the Bank liable for its action.

Yours faithfully,

F521

LETTER OF AUTHORITY

The Post Master

…………………………………

Sir,

Please Pay to Indian Overseas Bank

……………………………………………………… Branch/Office the sum of

Rs………………………………………………………………. (Rupee ………………

……………………………………………………………………………………..only)

being the interest and other payments due to me, on the National Saving

Certificates/Kisan Vikas Patras/10 Yr. National Security Certificates held in my

name as per details overleaf.

Station ……………………………….. Yours faithfully,

Date ………………………………….. Signature of Holder

Description

of Holding

Serial

Number

Index

Number

Reg.

Number

Date of

Issue

Face

Value

Annual

Interest

Amount of

Interest

…………………………………………

F 525

Indian Overseas Bank

……………………………………..

UNDERTAKING LETTER

Dear Sir,

Reg : Request to receive the interest accrued during the holiday

period in instalments-Term Loan Account:

I/We ………………………………………………………………………………………..

hereby undertake to pay Indian Overseas Bank the Interest accrued in my/our

Term Loan Account No ……………………………..……………… during the

holiday period, in monthly equal instalments commencing from ……………... The

Bank shall have the right to debit the said instalments to the Term Loan Account

if the instalment is not paid by me/us on the due date and such debits will also

carry interest at the rate applicable in the Term Loan Account.

Yours faithfully.

SSI - 4

LETTER OF INDEMNITY WITH RESPECT TO LOST TRAVELLERS CHEQUES

The Manager

Indian Overseas Bank

……………………………………….

In consideration of the Indian Overseas Bank refunding the value of their

travellers cheque(s) No.(s)………………………..for Rs…………………….sold by

them on ………………………………………………………… and subsequently lost

or mislaid WITHOUT HAVING BEEN ENDORSED.

I/We, the undersigned ……………………………and ………………………………

……………………………………………………..and …………………………………

hereby (jointly and severally) agree to hold the said Indian Overseas Bank, their

successors and assigns, harmless and indemnified from and against all

consequences that may arise from their so doing and from payment of the said

travellers cheque(s) and from and against all losses, charges and expenses in

connection therewith.

Date at ……..……………… this ………………… day of ………… 20………

Signature(s)

TC 8

Stamp

“NO-LIEN CUM ACCESS LETTER”

From

………………………………………………..

………………………………………………..

………………………………………………..

(Name and address of Processor)

To

The Manger

Indian Overseas Bank,

……………………………… Branch

Dear Sir,

We have noted your charge on the goods delivered to us by M/s …………

……………………………………………………………………………………….. from

time to time for conversion/processing/jobbing at our establishment located at

……………………………………………………………………………………………

and note that you have valuable interest in the said goods. We confirm that we

have no lien whatsoever on the said goods received from time to time which are

and shall be held in trust by us on your behalf.

You, your servants or authorised officials, have our permission at all times

of the day and night and as often as you like without interruption, hinderance or

objection on our part to enter our establishment for the purpose of inspection,

verification, taking possession and otherwise dealing with the said goods. We

undertake to properly segregate such goods so as to render them clearly

identifiable to all parties, and undertake not to charge the same as security for

any advance to be availed by us.

We further affirm that we shall deliver or cause to deliver the said goods to

you unconditionally upon demand.

The contents of this letter are irrevocable and it will bind our successors

and assigns.

Yours faithfully,

F 561

Indian Overseas Bank

(Central Office : 762, Anna Salai, Chennai 600 002.)

PRIVATE & CONFIDENTIAL

To Date:

Mr. M/s ………………………………………

………………………………………………..

………………………………………………..

Dear Sir,

Ref. : CREDIT FACILITY

We have pleasure in advising that the limits detailed overleaf have been

sanctioned at this branch for you/your firm by our Central Office/Zonal

Office/Regional Office on the terms and conditions stated there against, with

effect from ……………… ……………………………………… for a period of

…………………………………… ……………………………… months expiring on

……………………. subject to renewal at our option and provided there is no

substantial alteration in the position of you/your firm as at present existing. We

also reserve our right to amend, alter the terms and conditions or

cancel/withdraw all or any to the limits sanctioned at any time at our sole

discretion without assigning any reason whatsoever. These limits shall not be

operative until proper documents are executed and the terms and conditions of

sanction are complied with. Please note not to exceed the limits without prior

arrangement with us.

The loan amount shall be utilised for the purpose of the loan/advance and

if the Bank has reason to believe that the borrower has violated or is violating or

apprehends that borrower is about to violate this condition the Bank shall have

option to exercise its right to recall the entire loan/advance amount or any part

thereof at once notwithstanding anything to the contrary contained herein. This

right is with prejudice to the Bank’s right to demand the loan/advance amount for

violation of other terms and conditions of the sanction and loan/security

documents.

Kindly return the duplicate copy of this letter duty signed in token of your

acceptance of the above.

Assuring you of our best services at all times.

Yours faithfully,

MANAGER DEPUTY MANAGER

F568

PARTICULARS OF FACILITIES

Terms and conditions

SI.NO Nature of facility Limit

Rs. P.

Margin Terms Commission, Interest, etc.

DY. MANAGER MANAGER

F568

AGREEMENT FOR BACK END SUBSIDY UNDER IRDP

THIS AGREEMENT entered into

between ………………………………

……………………………………….

…………………………………………

…. residing at/carrying on business

at hereinafter referred to as “the

BORROWER” (which expression

shall, where the Borrower is single

individual mean and include his/her

heirs, executors and administrators

and where the Borrower is more than

one individual, mean and include all

of them jointly and each of them

severally and their survivor(s),

respective heirs, executors,

administrators and other legal

representative(s) AND INDIAN

OVERSEAS BANK, a body

corporate constituted under the

Banking Companies (Acquisition and

Transfer of Undertaking) Act. 1970,

having its Control Office at 763,

Anna Salai, Chennai-600 002 and a

branch situated amongst other

places at ………………………………

……………………………………….…

hereinafter referred to as “the Bank”

(which expression shall include its

successors and assigns witnesseth

as follows:

WHEREAS the borrower has applied

to the bank for a loan/cash credit

limit under Integrated Rural

Development Programme which the

Bank has granted/agreed to grant to

the extend of Rs………………

(Rs……………………………………

………………………………… only)

AND WHEREAS the borrower

has executed/agreed to execute the

loan documents and created/agreed

to create charge on the assets of

the borrower in respect of the said

loan/cash credit.

AND WHEREAS in cases,

where the borrower is entitled for any

benefit of back-end subsidy under

Integrated Rural Development

Programme, the Bank is required to

implement the Scheme of Back-end

subsidy as per the directives of

Reserve Bank of India and for the

purpose of availing the benefit of

Back-end subsidy the borrower is

required to agree and undertake to

abide by the terms and conditions

governing the scheme of Back-end

subsidy stipulated hereunder and

which may be stipulated as per the

directives of Reserve Back of India

from time to time.

NOW IN CONSIDERATION of

the benefit of Back-end subsidy

extended/agreed to be extended it is

hereby agreed as follows:

1. The full project cost including

subsidy would be disbursed to

the borrower as loan/cash

credit right of the beginning by

the Bank;

2. The subsidy admissible to the

borrower shall be kept in a

subsidy Reserve Fund

Account and no interest is

payable on this Subsidy

Reserve Fund by the Bank;

3. For the purpose of charging

interest on the loan/cash,

credit the subsidy amount

should be excluded by the

Bank;

4. The subsidy amount held

under subsidy Reserve Fund

Account shall be adjusted

towards last few instalments

of the loan and in cases of

cash credit shall be credited

to the cash credit account

after five years, only on

prompt repayment of the loan

and the cash credit account

being regular and the assets

charged to the Bank as

security for the loan/cash

credit being maintained in

good condition;

5. The borrower will not be

entitled for any benefit of

subsidy if the loan is fully

repaid or cash credit Account

is fully adjusted before the

lock-in-period i.e., on or

before …………………………

However, if the loan is fully

repaid/cash credit is fully

adjusted after the lock-in-

period but before the currency

of the loan/cash credit limit,

the borrower shall be entitled

only to pro-rata subsidy as

may be calculated by the

Bank on the NABARD’s

Indicative formula.

6. The entire amount of subsidy

would be forfeited by the bank

in the case of misutilisation of

the loan/cash credit or any

other malpractice after issuing

a notice to the borrower to

show cause as to why the

subsidy available to him

should not be forfeited and

after obtaining approval of

District Consultative

Committee / District Level

Consultants Committee

whose decision shall be

conclusive and binding on the

parties hereto.

7. In the event of death of the

borrower before the lock-in-

period i.e., or

before…………………………..

it the legal heirs repay the

loan/adjust the cash credit,

the amount of subsidy will be

adjusted towards the liability

under loan/cash credit.

However, if the legal heirs opt.

to take over the borrower’s

liability and implement the

scheme, the procedure and

terms and conditions

applicable to the borrower

shall continue to apply to the

legal heirs also.

IN WITNESS WHEREOF, the parties

have here unto set their respective

hands on the day, month & year

hereinabove mentioned.

for Indian Overseas Bank

MANAGER BORROWER

F 596

PARTNERSHIP LETTER CUM LETTER OF AUTHORITY

Place :

Date :

To

The Manager,

Indian Overseas Bank

…………………………………. Branch

Dear Sir,

We, the members/partners of …………………………………………………

(name of the group/users’ Association/firm) carrying on agriculture/allied

agricultural/industrial/service/business/production activity at ……………………..

…………………………………………………… (address) are desirous of having

banking facilities from Indian Overseas Bank.

The undermentioned are all the members./partners of the group/users’

association/firm.

1) Sri/Smt/Kum Son/wife/daughter of

2) Sri/Smt/Kum Son/wife/daughter of

3) Sri/Smt/Kum Son/wife/daughter of

4) Sri/Smt/Kum Son/wife/daughter of

5) Sri/Smt/Kum Son/wife/daughter of

6) Sri/Smt/Kum Son/wife/daughter of

7) Sri/Smt/Kum Son/wife/daughter of

8) Sri/Smt/Kum Son/wife/daughter of

9) Sri/Smt/Kum Son/wife/daughter of

10) Sri/Smt/Kum Son/wife/daughter of

11) Sri/Smt/Kum Son/wife/daughter of

12) Sri/Smt/Kum Son/wife/daughter of

13) Sri/Smt/Kum Son/wife/daughter of

14) Sri/Smt/Kum Son/wife/daughter of

15) Sri/Smt/Kum Son/wife/daughter of

Of these members/partners the persons whose names are set out below:

1) Sri/Smt/Kum Son/wife/daughter of

2) Sri/Smt/Kum Son/wife/daughter of

are authorised on behalf of the

group/users’ association/ firm to

sign, execute, draw, accept,

endorse, negotiate and sell

negotiable instruments and to

borrow (with or without security) and

to pledge its credit and property and

they have full unrestricted authority

to bind the group/users’

association/firm and are further

authorised to sign and register all

legal and other documents that may

be necessary for the purpose and do

all other acts necessary. All the

transactions with Indian Overseas

Bank, or any of its branches by the

above mentioned members/partners

including contracts of suretyship

whether jointly or severally or along

with others shall be deemed to be

transactions of and binding on the

group/users’ association/firm and all

its members/partners. In the event

of the bank dealing with the

group/users’ association/firm we

further undertake to give notice to

the above branch of (the bank in

writing of any change in the

group/users’ association/firm and we

further agree that until

acknowledgement of receipt of such

notice by the branch of the bank and

notwithstanding any provisions of the

Partnership Act or any change in the

membership of the group/users’

association/firm all acts of the

undersigned or otherwise purporting

to be done on behalf of the

group/users’ association /firm shall

be binding on the group/users’

association/firm and each member or

past member and his estate and in

the case of death or insolvency, the

deceased’s or insolvent’s estate and

the bank shall be entitled to honour

our or their respective signatures

which shall, until all liabilities to the

bank in respect or such acts shall

have been fully discharge, be

binding on the group/users’

association/firm and each of the

above noted members and their

respective estates.

Notwithstanding anything to

the contrary contained hereinabove,

we the aforesaid members/partners

hereby place on record that such

member/partner among us is

authorised to make payment on

behalf of the group/users’

association/firm and sign periodical

confirmation of balances/revival

letters. Such payment, documents

signed by any one of us shall be

binding on all of us jointly and or

severally and shall save limitation

against all of us jointly and or

severally for the purpose of Law of

Limitation. Any security given by any

one of us shall be binding on the

group/users’ association/firm and the

bank shall be at liberty to initiate

legal action for recovery and

enforcement of security against the

assets of the group/users’

association/firm in the even of

default either by filing a single suit

against the group/ users’

association/firm in the event of

default either by filing a single suit

against the group/users’

association/firm or all or any one of

use severally.

Yours faithfully

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

(Note: Members/Partners shall sign

in their individual capacity only and

not for and on behalf of the

group/users’ association/firm).

F- 597

LETTER OF CONSENT CUM UNDERTAKING AND HYPOTHECATION

The Manager,

Indian Overseas Bank Stamp

……………………………….Brach (To be Stamped as an Agreement)

Dear Sir,

Sub: TERM LOAN/COMPOSITE LOAN OF RS. …………

GRANTED TO …………… ……………………………….

(NAME OF THE GROUP/USERS’ ASSOCIATION / FIRM)

LOAN NO. ……………………………………

………………

1. We the undermentioned members/partners of ……………………………………

(Name of the Group/Users’ Association/Firm)

1) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

2) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

3) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

4) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

5) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

6) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

7) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

8) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

9) Sri/Smt/Kum………………………..Son/wife/daughter of…………………………

10) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

11) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

12) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

13) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

14) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

15) Sri/Smt/Kum………………………..Son/wife/daughter of………………………

(hereinafter referred to as “your constituents”

desired to purchase common items

for/carry on Agricultural/ Allied

Agricultural / Industrial / Service/

Business/Production activity viz.,

…………………………………………

at …………………… village in the

……………………………… Taluk of

…………………………… District of

…………………………………. State

jointly and each one of us are

required to …………………………

contribute a sum of

Rs…………………… (Rupees………

…………………………………………

……………… only) as and by way of

our share of capital or contribution

for which we have jointly

approached the bank for granting a

loan. The said activity will be

run/carried on jointly by me and all

the said persons, under Centrally

Sponsored Schemes launched by

Government of India viz, Group

Loaning under Integrated Rural

Development Programme (IRDP)

/Ganga Kalyan Yojana (GKY)

The Bank has agreed to grant a term

loan/composite loan of

Rs………………….. (Rupees

………………………………… only)

vide sanction letter no……………

dt………………………………………

for the said purpose under the Group

Loaning Scheme under IRDP/GKY

subject to the terms and conditions

stipulated in the said sanction letter.

2. In consideration of your bank

at/our request granting a term

loan/composite loan of

Rs…………………. (Rupees

…………………………………………

……… only) to us to enable us to

purchase common items for/carry on

Agricultural/Allied agricultural

Industrial/Service/Business/Producti

on activity viz ……………

…………………………………. jointly

by all of us in …………………………

Village of ………………………………

Taluk of ………………………………

District …………………………………

State, we, the undersigned, hereby

agree and undertake to acquire the

assets for the said activity in our joint

names and to hypothecate the

assets acquired/created as security

for the said loan.

3. We, the undersigned, further

hereby agree and undertake that we

scwill, as your constituents, open a

joint current account with your bank

and we hereby authorise you bank to

credit to the said joint current

account of the loans sanctioned by

our bank to each one of us under the

Group Loaning under IRDP/GKY for

the aforesaid activity. We further

agree that you bank shall have a

general lien on the sum standing to

the credit of the said joint account

and your bank shall be entitled to

debit the said account with the

Instalments of interest as well as

principal due under the said loan or

under any other transaction with the

bank, without, however, any

prejudice to your back’s rights under

law to recover such instalments

otherwise than by debiting the said

joint account.

4. We, the undersigned, hereby give

our consent for the loans being

recovered for the person(s) and

assets hypothecated and/or other

assets as a public demand or as

land revenue in terms of any

legislation relating to recoveries

thereon, where such consent is

necessary under such legislation.

5. We, the undersigned, agree and

undertake to stand as surety for

each other and to give our personal

guarantee for the due repayment of

the loan by the other

members/partners of the

group/users’ association/firm and

also to execute the letter of personal

guarantee and such other

loan/security documents in such

form as may be prescribed by the

bank for our joint and several

obligations under the Group Loaning

under IRDP GKY.

6. We, the undersigned hereby

agree and confirm that being more

than one individual, each one or any

of us are authorised and empowered

by the other(s) of them to admit and

acknowledge his/her/their liability to

your bank for any payment into the

account(s) or by way of express

writing in any manner or otherwise

and any such admission and

acknowledgement of the liability by

one or more of them shall be

construed to have been made on

behalf of each of them.

7. We, the undersigned hereby

agree and confirm that your Bank,

your Officials, agents, Attorneys,

your Advocates or another person

duly authorised by your Bank shall

always during the period of the said

loan and interest thereon remains

outstanding, shall have right to

inspect the books of account of our

activity.

8. With a view to securing our

obligations as contained

hereinabove and to secure the due

repayment by your said constituents,

of the said loan amount together with

interest, discount, commission

charges, costs and expenses

payable and incurred by your bank in

relation thereto, we, the undersigned

hereby agree and confirm that:

(i) all the assets including crop

whatsoever, erd/flock/fish/silkworms,

cocoons etc. and the equipments

more particularly described in the

Schedule hereunder written; and

(ii) the whole of the present and

future stocks, whether raw, in

process of manufacture of in finished

form and /or movable machinery,

equipments tools, stores and spares

and/or consumable articles and

accessories relating to business or

industry as the case may be.

(iii) our present and future book

debts, outstanding, moneys,

receivables, claims, bills, contracts,

engagements, securities,

investments, rights and all other

movable assets;

(iv) all pumpsets (electric/diesel),

storage tanks, lifting device, pipes

etc.

(which shall hereinafter be referred

to as the said book debts, both the

said goods and book debt shall be

referred to as security)

shall stand and be hereby

hypothecated to your bank by way of

first charge.

9. We, the undersigned hereby

agree and confirm that your Bank,

without being bound to do or being

liable for any loss on account thereof

and without prejudice to its rights

and remedies of suit or otherwise

shall be entitled to:

a) Without notice to and at our

risk and expenses enter any

place(s) wherever the security

may be and inspect, value,

insure, superintend disposal

and/or take possession

thereof;

b) Without prejudice to the

foregoing, on default by us or

your said constituent in

payment of any money hereby

secured or on the non-

performance of any obligation

on the part of me/us or your

said constituent or on the

occurrence of any

circumstance with in the

opinion of your bank

endangering the security take

possession of, recover and/or

sell by public auction or

private contract or otherwise

deal with the security and

appropriate the proceeds to

outstanding loans; or

c) Apply towards the outstanding

loans any moneys in its hand

belonging to us and to recover

the balance, if any, of the

loans notwithstanding that all

or any of the security may not

have been realised.

d) Deal in any manner with any

of our rights, debts or claims

in relation to the security.

10. We, the undersigned agree and

confirm that all the said goods, book

debts, and all the sale proceeds and

Insurance proceeds thereof and all

documents under this security shall

always be distinguishable and held

as your Bank’s exclusive property,

specifically appropriated to this

security to be dealt with only under

the directions of the bank, and that

all the security are free and shall be

kept free from any charge or

encumbrance except those in favour

of your Bank.

11. We, the undersigned, agree and

confirm that the security created and

indemnities and undertakings given

herein in favour of your Bank for

various facilities shall be operative

as continuing security and/or

indemnities and/or undertakings for

all moneys, indebtedness and

liabilities of your said constituent

under the said loan and will be

operative as security and/or

indemnities and/or undertakings for

the ultimate balance or aggregate

balances with interest thereon and

cost, if any, to become payable upon

the account(s) to be opened and the

said accounts(s) is not and are not

to be considered to be closed for the

purpose of such security and/or

indemnities and/or undertaking is not

to be considered exhausted merely

by reason of the said account(s)

either or any of them being brought

to credit at any time or form time to

time or any partial payments made

thereto or any fluctuations of such

account(s) and if the whole of the

bank’s advances shall be repaid and

the whole of the security withdrawn

the account(s) or either or any of

them may nevertheless at any time

before such account(s) has or have

been closed, be continued under the

said agreement upon the security as

aforesaid being again furnished.

12. We, the undersigned shall not,

except in the normal course of

carrying on the activity but subject to

the powers of your Bank herein

contained, cut/remove dispose of the

security from the place(s) wherever

normally the/those may be

kept/preserved/stored without the

prior written permission of your Bank

during the time any money herein

mentioned shall remain outstanding.

The said security, if so, required by

your Bank, shall be immediately

delivered to your Bank on pledge.

We, the undersigned, have set our

hands this ……………… day of

………….. 20………… at ……………………

SCHEDULE OF PROPERTY HYPOTHECATED

Yours faithfully

1. 9.

2. 10.

3. 11.

4. 12.

5. 13.

6. 14.

7. 15.

8.

NOTE: * Delete whichever is not relevant

(NOTE: Members/partners shall sign in their individual capacity only and not for

and on behalf of the Group/users association/Firm)

F 598

(To be stamped as an agreement)

LOAN AGREEMENT FOR GROUP LOANING UNDER IRDP / GKY SCHEME

This loan Agreement made at

…………….. this ……………………

day of ………….. 20…… between

Indian Overseas Bank, a body

corporate established order the

Banking Companies (Acquisition and

Transfer of Undertakings) Act. 1970

having its Central Office at 762,

Anna Salai, Chennai-600 002 and

amongst other places a branch office

at……………….…..

…………………………………………

…………………………………………

(hereinafter called “the Bank” which

expression shall unless repugnant to

the context or meaning, include its

successors and assigns) of the ONE

PART.

And

Shri/smt/kum…………………………

…………………………………

son/wife Daughter of

…………………………………………

……………………………… aged

about…………………………………

…………………………………………

years residing at ……………………

………………………….. (hereinafter

referred to as the “Borrower” which

expressed shall include his/her legal

heirs administrators and executors)

of the OTHER PARY.

WHEREAS:

1. The borrower desires to purchase

common items for/carry on

Agricultural/Allied Agricultural /

Industrial / Service / Business /

Production activity viz ……………

……………………………………… at

………………………… Village in the

…………………………………………

Taluk of ………………………………

…………………………………………

District…………………………………

State, jointly with

1). Shri/smt/kum ……………

Son/wife/ Daughter of ………………

…………………………. resident of

…………………………………………

2) Shri/smt/kum

…………………………………………

……….. Son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

3) Shri/smt/kum …………

………………………………………..

son/wife/ Daughter of ………………

…………………………………………

……. resident of ……………………

…………………

4) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

5) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of ……

…………………………………………

………. resident of ……………

……………………………

6) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…… ……………………………………

7) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

8) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

9) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

10) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

11) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

12) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

13) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

14) Shri/smt/kum

…………………………………………

……….. son/wife/ Daughter of

…………………………………………

…………………………. resident of

…………………………………………

(who are hereinafter referred to as

the said persons) and is required to

contribute a sum of

Rs……………………………

(Rupees) ………………………………

………... only) as and by way of

his/her share of capital or

contribution for which the borrower

has approached the bank for grant of

a loan. The said activity will be run

jointly by all of them under the

Centrally Sponsored Schemes

launched by the Government of India

viz., Group Loaning Integrated Rural

Development Programme

(IRDP)/Ganga Kalyan Yojana (GKY)

2. The bank has since agreed to

grant the borrower a term

loan/composite loan of Rs.

………………………. (Rupees ……

…………………………………… only)

by its sanction letter No.

…………………………. dt …………

for the said purpose under the Group

Loaning under IRDP/GKY subject to

the terms and conditions stipulated

in the said sanction letter and also

the conditions mentioned hereinafter.

IT IS THEREFORE HEREBY

AGREED BY AND BETEWEEN THE

PARTIES HERETO AS FOLLOWS:

1) The bank shall lend and the

borrower shall borrow a sum of

Rs…………………………. (Rupees

…………………………………………

…………………………………………

…………………………………………

………..only).

2) The borrower shall utilise the loan

amount exclusively for ………………

…………………………………..

3) The said loan shall carry interest

at the rate of …………………………

percent per annum with quarterly

half yearly rests and the interest

amount shall be paid on the

…………………………………………

…………………………………………

of each year till the entire Principal

and interest thereon is repaid by the

borrower. In default of payment of

any one/two instalments of interest

as stated above the bank shall be

entitled to demand payment of the

entire amount then outstanding in

respect of the said loan, as if the

period for repayment has expired

and shall also be entitled, on failure

to pay the interest at the end of each

quarter, to debit to the Borrower’s

loan advanced by the bank to the

Borrower and shall be entitled to

charge like interest thereon, from the

date of default to the date of

payment of such defaulted interest.

4) The loan shall be secured by

hypothecation and/or or mortgage of

the procured with the assistance of

the loan in such manner as the Bank

may decide and for this purpose the

Borrower shall ensure that the said

persons also join the Borrower in

creating the requisite

hypothecation/mortgage on the

assets and execute and register

requisite documents for this purpose,

the Borrower hereby agrees to

furnish to the Bank necessary

consent-cum-undertaking and

hypothecation and personal

guarantee letters from the said

persons stipulated in Clause 12

hereinafter within a period of one

week from the date hereof and

agrees that the Bank shall not be

under obligation to disburse the loan

amount until the said consent letters

are produced.

NOTE:- Here mention the purpose

for which the loan is granted

- Delete whichever is not

applicable

- Here mention the dates for

payment of interest amounts

eg., 28/29th February and 31st

August if interest is payable

half yearly.

5) All the assets and good

acquired/created by the borrower

and the said persons for the purpose

of the said activity shall be in the

joint ownership of the Borrower and

the said persons and shall ordinarily

be kept at the place of activity of

…………………………… and any

change in the place of activity shall

be forthwith intimated by the

Borrower to the bank at its

…………………………………………

………………….. branch.

6) The said loan amount shall be

repaid in……………………………….

monthly/quarterly/half yearly/annual

instalments of Rs…………. (Rupees

…………………………………………

………………………………………….

only) each, the first of such

instalments becoming due and

payable on………………….and

thereafter, the subsequent

instalments becoming payable on

every …………………. day of the

succeeding month/quarter/year.

7) Notwithstanding what is contained

in clause 6 hereinabove, if the

Borrower commits any default to

repay the principal and pay interest

on the respective due dates, the

Bank shall, in its sole discretion, be

entitled to cal upon the Borrower to

pay the entire outstanding loan

amount (including interest) in one

lumpsum and in default, shall be

entitled to enforce the security and

guarantees offered by the Borrower

and the said persons for the loan

and also institute such other legal

proceedings against the Borrower

and the said persons to recover the

amounts due hereunder.

8) The loan account in the books of

the Bank shall be conclusive proof

against the Borrower and the said

persons of the amount or amounts

outstanding and due to Bank.

9) The Borrower shall, along with the

said persons, open a current account

with the Bank to which all the loan

amounts granted to the Borrower

hereunder as also various other

receipts of the activity and loan

amounts granted to the said persons

shall be credited. The borrower and

the said persons shall be at liberty to

debit the said account with the

expenses they have to incur in

connection with said activity. The

Bank shall have a general lien on the

sums standing to the credit of the

said current account and the Bank

shall be entitled to debit the said

account with the instatlments of the

interest as well as the Principal due

under these presents or under any

other transaction without, however,

any prejudice to the Bank’s rights

under law to recover such

instalments, otherwise than by

debiting the said account, from the

borrower and his guarantors or out of

the securities furnished by the

borrower.

10) The borrower shall execute a

Demand Promissory Note for

working capital in favour of the bank

for the sum of

Rs………………………………………

……. carrying interest all the rate

stipulated hereinabove, at the time of

disbursal of the said sum to him/her.

11) The Bank, its officials, agents,

attorneys or advocates or any other

person duly authorised by the bank

shall have a right to inspect the

books of accounts of the borrower

and also to enter upon the premises

place where the Borrower and the

said persons carry on the activity of

the premises/place where the

property secured to the bank is kept

and inspect and verify the same and

shall also be entitled, in the event of

default in repayment of the loan and

interest, to seize and take

possession of such property and sell

the same either by public auction or

by private sale and appropriate the

sale proceeds in repayment of the

amounts outstanding and also

expenses incurred by the bank in

bringing such property to sale.

12) The borrower undertakes to

obtain and produce consent-cum-

undertaking and hypothecation and

personal guarantee letters from the

said persons in such form as may be

prescribed by the bank for the Joint

obligations of the Borrowers and the

said persons contained in these

presents and also guaranteeing the

Borrower’s liability here under.

13) Notwithstanding what in

contained hereinabove, the Bank

hereby reserves its right to recall the

entire amount outstanding hereunder

against the Borrower, if, in its

opinion, the aforesaid activity in not

being carried on by the Borrower or

cannot be carried on by the Borrower

on account of any reason

whatsoever or the securities given to

the Bank have become inadequate

or endangered due to any reason

whatsoever.

14) The Borrower shall intimate to

the bank any change in his address

or change in the place of activity to

the Manager of the bank at the at the

……………………..….. Branch within

15 days of such change.

15) This agreement shall be

executed on requisite stamp paper,

the stamp duty whereof shall be

borne and by the Borrower.

IN WITNESS WHEREOF, the Bank

has caused these presents to be

executed by its duly authorised

official and the borrower has affixed

his signature hereunto at the place

and on the date first hereinabove

written.

For Indian Overseas Bank,

(AUTHORISED OFFICIAL) BORROWER

WITNESSES:

1.

2.

F599

SUPPLEMENTAL DEE OF HYPOTHECATION

(To be stamped as an Agreement)

Term Loan/Composite Loan of Rs……………………. granted to

…………………………………………………………………………………… (Name

of Group/Users’ Association / Firm) by Indian Overseas Bank

……………………………..

………………………………………………………………………………… Branch-

Loan No ……………………………

By this agreement made at ………………….. this …………… day of

……………… 20…… which is supplemental to the Letter of Consent cum

Undertaking and Hypothecation dated ………………… (hereinafter called the

principal deed of hypothecation) we the undersigned hereby agree with the

Indian Overseas Bank that in consideration of the bank having at our request

agreed to advance an additional sum of Rs……………….. by way of cash credit

limit/to raise

our cash credit limit from Rs…………………………. to

Rs…………………………………… to Rs………………………… all those

movables specified in the principal deed of hypothecation shall with effect

from………………….. constitute security to the bank not only for the original

advance by way of term loan/composite loan but also for the fresh cash

credit/additional cash credit limit of Rs……………………………………. and the

principal deed of hypothecation shall be read and construed as if the term

loan/composite loan therein mentioned was Rs. ………………..…

………………………………

Stamp

AND FURTHER that all those the movables described in the Schedule

hereunder together with the movables specified in the principal deed of

hypothecation shall stand as security for all advances upto increased advance of

Rs. …… ……………………… ………………… and all other sum for which the

movables specified in the principal deed of hypothecation stand security.

AND FURTHER that all the provisions in the principal deed shall apply for

the purpose of the security conferred by this further hypothecation of the

movables specified in the Schedule hereunder AND we confirm in all respects

the principal deed of hypothecation.

SCHEDULE

All those the movables consisting of ………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

…………………..………………………………………………… we the undersigned

have executed these presents the day, month and year first above written.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

NOTE: Members/Partners shall sign in their individual capacity only and not for

and on behalf of the Group/ Users’ Association/Firm).

F600

HOUSING LOAN

Term Loan Agreement for Refinance Scheme

This agreement is made

at………………………………………

……………. on the ………………….

day of ……………..……20…… by

Shri…………………………………S/o

.……………………………………D/o

…………………………resident of

………………………………………….

(hereinafter called the borrower

which expression shall, unless the

context otherwise requires, include

his heirs, executors, administrators

of the one part) to and in favour of

Indian Overseas Bank a body

corporate carrying on banking

business with its Head Office: at 762,

Anna Salai, Madras-600 002, and

having one of its branches at

…………………………………….

(hereinafter called “Bank” which

expression shall unless the context

otherwise required, include its

successors and assigns of the other

part).

Whereas the borrower has

applied to the bank for sanction of

term loan of Rs. ………………………

to be availed of at …………………….

……………………. Branch for the

purpose of purchase/construction for

self occupation of a residential house

built or to be built on a plot of land

bearing S.No. ………………………..

situated at …………………………..…

……….…………………. measuring

……………………. sq.yds mentioned

in Schedule I herein or for repairs or

alterations of the same hereinafter

called the ‘Schedule property’ with all

its accretions, additions and fixture

on terms and conditions as

mentioned in the loan application of

the borrower.

And whereas the bank has

under National Housing Bank’s

Refinance Scheme sanctioned term

loan of Rs. …………………and has

agreed to lend advance and disburse

the term loan of Rs….…………

…………… either in lumpsum to be

secured by registered mortgage /

equitable mortgage of the said house

property of the borrower.

And whereas the borrower

agrees to borrow the said term loan

and agrees to create security by way

of mortgage mentioned for the

repayment of loan on the terms and

conditions, mentioned in Schedule II

herein, which the borrower accepted

on

(Date of acceptance).

Now this agreement witnesseth as

follows:

That pursuant to and in

consideration of the above, the

borrower agrees that a term loan

account shall be opened by the bank

in its books debiting the amount/s

advanced to him.

1.The borrower shall repay to the

Bank at ………………………………

Branch the amount of the said loan

of Rs. ……………………… (Rupees

………………………………) together

with interest as stipulated below in

para (2) in equal monthly/ quarterly /

half yearly instalments of

Rs………………………………………

each on the day and in the manner

mentioned in the schedule hereto,

the first of such instalment being

payable on …………...… 19…… and

each of the subsequent instalments

being payable on the last day of

each succeeding month until the

entire loan is repaid. In case the

amount of loan availed/disbursed is

less that Rs. ………………………..…

…………………………… then the

amount of instalment payable shall

be reduced pro-rate.

2.The borrower shall so long as the

said loan or any part thereof remains

unpaid to the bank, pay interest

thereon or on the balance thereof

due from time to time at the rate of

…………..% per annum over Prime

Lending Rate of the Bank with

monthly rests or such other rates

and rests as may be notified by the

Bank to me/us from time to time and

shall be calculated and charged as

the daily balance in the Bank’s

favour due upon the said account

until the same is fully liquidated and

shall be paid by the borrowers as

and when demanded bank. The

interest charged shall become part

and parcel of the principal amount

and shall carry interest as such the

borrower also agrees to pay to the

bank additional interest at ………….

…% over and above the rate of

…………% stipulated by RBI or as

may be charged by the bank (without

prior intimation to the borrower) from

time to time on the amount of

instalments remaining unpaid or

overdue in case of default in

payment of principal or interest.

3. The borrower agrees that he shall

execute a mortgage and get the

same registered at his cost in favour

of the bank in a form or type

acceptable to the Bank/create

equitable mortgage with intent to

create security mortgaging the said

house property for repayment of the

term loan, interest and other charges

as herein mentioned. The Bank shall

have the right, with a view to assess

proper utilisation to inspect the

construction of the house property at

any time or stage before releasing

further amount of loan instalments.

4. The borrower assures and

declares that the plot or land herein

mentioned is freehold and is his full

and absolute property having good

marketable title free from all

encumbrances and he is entitled to

mortgage the same with all

accretions thereto as security to the

Bank, for the repayment of the term

loan, interest accrued and other

charges.

5. The borrower agrees that he shall

not during the continuance of the

loan, let our or otherwise part with

the possession of the property

mentioned in Schedule I hereunder

or any part thereof without the

consent of the Bank in writing nor

shall he sell, mortgage or alienate

his house property or any part

thereof without the prior consent of

the bank in writing. It is also agreed

that in case the schedule property is

rented out by the borrower after

obtaining the consent of the Bank

the amount of monthly rent shall be

paid to the bank towards his liability

in respect of the term loan.

6. In the case of a loan for the

purchase of a house, the borrower

shall deposit with the bank a sum of

Rs………………… as margin money.

7. The borrower agrees to build the

house property in accordance with

approved plan and maintain and

keep the house property in

marketable state and in good and

substantial repair and condition and

will not materially alter the structure

without written consent of the Bank.

8. The borrower agree to utilise the

loan solely for

purchase/construction/repair of

building and to pay interest at the

rate as applicable to clean loan

stipulated by R.B.I, if the loan

amount is deviated and utilised for

any purpose other that the one

intended for.

9. Notwithstanding anything

contained herein for fixation of

instalments, the entire amount of the

term loan with interest and charges

or the balance out-standing in the

account shall at the option of the

bank become due and payable by

the borrower to the bank and the

bank will be entitled to realise the

same and enforce the mortgage

security of the house property at the

cost of the borrower upon the

happening of any of the following

events and after demand in writing

namely:

a) Any instalment of principal or

interest of any part thereof in

respect of the said loan being

unpaid for a period of

………… after the respective

due dates of repayment.

b) Any representation or

statement in the borrower’s

loan application being found

to be maternally incorrect at

any time.

c) The borrower committing any

breach or default in

performance or observance of

any of the terms or conditions

contained in this agreement

or in the loan

application/attachment or

distrant or other precess

being enforced or levied upon

the whole or any part of the

schedule property whether

secured to the bank or not.

d) The borrower being declared

insolvent or committing act of

insolvency.

e) If the borrower shall without

the consent in writing of the

Bank create of attempt to

create any further

mortgage/charge or any

encumbrance of schedule

house property agreed to be

mortgaged to the Bank.

f) If any event or circumstance

shall occur which shall in the

opinion of the bank prejudicial

to or endanger Bank’s

security.

The opinion and judgment of the

Bank whether any such event had

occurred or not shall be conclusive

and binding on the borrower.

The borrower shall at his own

cast insure and keep insured the

mortgage security when

executed/created against fire and

such other insurable risks loss or

damage as the Bank shall form time

to time require for the full market

value thereof with any nationalised

insurance company jointly in the

names of the borrower and the bank

with bank clause and deliver the

insurance policies taken from time to

time to the bank clause and deliver

the insurance policies taken from

time to time to the bank with receipt

of payment of premia. In case the

borrower neglects or defaults, the

bank may without being under any

obligation insure the mortgaged

security at the cost of the borrower

and debit the premia paid from time

to time to the borrower’s account.

The amount of premium not paid by

the borrower to Bank shall carry

interest as payable in the loan

account. The non-admission or

rejection of insurance claim by the

insurance company for any reason

whatsoever will not affect or qualify

the liability of the borrower and in

case any amount is received from

the insurance company towards the

claim lodged by the bank under the

policy, the same shall be received

and appropriated by the bank

towards dues owing under the term

loan.

The borrower agrees to comply

with all the conditions of the term

loan attaching or affecting the

schedule property agreed to be

mortgaged and to obtain permission

from the competent authority or

officer if required for creating

mortgage of security in favour of the

Bank.

The borrower agrees to pay all

taxes, public demands, dues and

charges in respect of the schedule

property which may be levied by any

government or any local authority

during the continuance of the loan.

The borrower agrees to bear the

entire cost of the execution

registration and stamp Duty required

for the mortgage deed in the case of

Regular Registered Mortgage.

In these presents the expression

‘schedule property’ means a

residential house or the dwelling unit

of and size or type having an

independent access and include a

bungalow and ownership apartment,

flat but does not include a farm

house or a temporary or a semi

permanent structure.

In witness whereof the borrower

has executed there presents on the

day, month and year first above

written.

……………………………………..

Borrower

I.SCHEDULE

Description of Property

……………………………………..

Borrower

SCHEDULE II

Terms and conditions of sanction of Housing Loans

1. The loan shall be repaid in

equated monthly instalments

or Rs…………………… each

over a period of ………………

months. The repayment shall

commence immediately after

completion of construction

purchase of flat / house / or

after………… months from

the date of first disbursement

whichever is earlier. While

remitting the stipulated last

instalment balance

outstanding If any shall be

paid in one lumpsum and the

account shall be closed.

2. Interest at …………….% p.a

shall be charged and

recovered separately during

holiday period.

3. Where an instalment is not

repaid within due date

additional interest at 2% over

and above the stipulated rate

of ………………% p.a. on the

overdue amount shall be

charged and recovered from

the borrower.

4. The construction on the plot

shall be done as per the plan

approved by the competent

authority.

5. The loan shall be released

only after ensuring investment

of borrower’s contribution /

margin initially in the

construction of the building.

6. The loan shall be released in

stages after watching the

progress of construction at

each stage of release.

7. The property shall be insured

for the full value of its

superstructure for the risk of

fire and other hazards with

bank’s clause during the

currency of the loan and

original policy shall be held

with our bank.

8. Taxes and rates levied by the

local authorities shall be paid

by the borrower and the

receipt produced for

verification apart form

retaining a copy for records.

9. Legal opinion and valuation

report in respect of land and

building from our approved

lawyer/valuer shall be

obtained. Legal opinion shall

be in the standard format

prescribed by the bank.

10.The borrower shall not

alienate/ mortgage the land

and building offered as

security to the bank without

prior consent of the bank in

writing

HL 1

HOUSING LOAN

Term Loan Agreement for Direct Finance Scheme

This agreement is made at

…………………………………………

………………… on the ……………

…………………………………………

day of ………………20……………by

Shr……………………………………

……..……………………………….S/o

…………………………………… D/o

……………………………………

resident of ……………………………

(hereinafter called the borrower

which expression shall, unless the

context otherwise requires, include

his heirs, executors, administrators

of the one part) to and in favour of

Indian overseas Bank, a body

corporate carrying on banking

business with its Head Office at 762,

Anna Salai, Chennai – 600 002, and

having one of its branches at

……………………

………………… (hereinafter called

“Bank” which expression shall unless

the context otherwise required,

include its successors and assigns of

the other part)

Whereas the borrower has

applied to the bank for sanction of

term loan of Rs. ………………………

…………………. to be availed of at

……………………………… Branch

for the purpose of purchase /

construction for sefl occupation of a

residential house built or to be built

on a plot of land bearing

S.No……….……………… situated at

………………………………………..

measuring…………………… sq.yds

mentioned in Schedule I herein or for

repairs or alterations of the same

hereinafter called the ‘Schedule

property’ with all its accretions,

additions and fixtures on terms and

conditions as mentioned in the loan

application of the borrower.

And whereas the bank has

sanctioned term loan of Rs…………

and has agreed to lend advances

and disburse the term loan of

Rs………. either in lumpsum or in

stages or in suitable instalments

matching with the progress of the

construction to be secured by

registered mortgage/equitable

mortgage of the said house property

of the borrower.

And whereas the borrower

agrees to borrow the said term loan

and agrees to create security by way

of mortgage mentioned for the

repayment of loan on the term and

conditions, mentioned in Schedule If

herein, which the borrower accepted

on ……………………………… (Date

of acceptance).

Now this agreement witnesseth as

follows:

That pursuant to and in

consideration of the above, the

borrower agrees that a term loan

account shall be opened by the bank

in its books debiting the amount/s

advanced to him.

1. The borrower shall repay to

the Bank at Branch the

amount of the said loan of Rs.

…………………………………

……….) together with interest

as stipulated below in para (2)

in equal monthly

quarterly/half yearly

instalments of Rs. ….…

……………. each on the day

and in the manner mentioned

in the schedule hereto, the

first of such instalment being

payable on …………20………

and each of the subsequent

instalments being payable on

the last day of each

succeeding month until the

entire loan is repaid. In case

the amount of loan

availed/disbursed is less than

Rs……………………. then the

amount of instalment payable

shall be reduced pro-rata.

2. The borrower shall so long as

the said loan or any part

thereof remain unpaid to the

bank, pay interest thereon or

on the balance thereof due

form time to time at ………%

p.a. over the RBI rate with a

minimum of …………% p.a.or

at such other rates as may be

notified by the bank from time

to time with quarterly /half

yearly rests so that such

interest shall be calculated

and charged shall become

part and parcel of the principal

amount and shall carry

interest as such. The

borrower also agrees to pay

to the Bank additional interest

at ………..% over and above

the rate of …………….%

stipulated by RBI or as may

be charged by the bank

(without prior intimation to the

borrower) from time to time on

the amount of instalments

remaining unpaid or overdue

in case of default in payment

of principal or interest.

3. The borrower agrees that he

shall execute a mortgage and

get the same registered at his

cost in favour of the bank in a

form or type acceptable to

the Bank/create equitable

mortgage with intent to create

security mortgaging the said

house property for repayment

of the term loan, interest and

other charges as herein

mentioned. The Bank shall

have the right, with a view to

assess proper utilisation to

inspect the construction of the

house property at any time or

stage before releasing further

amount of loan instalements.

4. The borrower assures and

declares that the plot of land

herein mentioned is freehold

and is his full and absolute

property having good

marketable title free from all

encumbrances and he is

entitled to mortgage the same

with all accretions there to as

security to the Bank for the

repayment of the term loan,

interest accrued and other

charges.

5. The borrower agrees that he

shall not during the

continuance of the loan, let

out or otherwise part with the

possession of the property

mentioned in Schedule I

hereunder or any part thereof

without the consent of the

Bank in writing not shall he

sell, mortgage or alienate his

house property or any part

thereof without the prior

consent of the bank in writing.

It is also agreed that in case

the schedule property is

rented out by the borrower

after obtaining the consent of

the Bank the amount of

monthly rent shall be paid to

the bank towards his liability

in respect of the term loan.

6. In the case of a loan for the

purchase of a house, the

borrower shall deposit with

the bank a sum of

Rs………………….. as margin

money.

7. The borrower agrees to build

the house property in

accordance with approved

plan and maintain and keep

the house property in

marketable state and in good

and substantial repair and

condition and will not material

alter the structure without

written consent of the Bank.

8. The borrower agrees to utilise

the loan solely for

purchase/construction repair

of building and to pay interest

at the rate as applicable to

clean loan stipulated by R.B.I.

if the loan amount is deviated

and untilised for any purpose

other than the one intended

for.

9. Notwithstanding anything

contained herein for fixation of

instalments, the entire amount

of the term loan with interest

and charges or the balance

outstanding in the account

shall at the option of the bank

become due and payable by

the borrower to the bank and

the bank will be entitled to

realise the same and enforce

the mortgage security of the

house property at the cost of

the borrower upon the

happening of any of the

following events and after

demand in writing namely:

a Any instalment of principal or

interest or any part thereof in respect

of the said loan being unpaid for a

period of ……………….. after the

respective due date of repayment.

b Any representation or statement in

the borrower’s loan application being

found to be materially incorrect at

any time.

c The borrower committing any

breach or default in performance or

observance of any or the terms of

conditions contained in this

agreement or in the loan

application/attachment or distraint or

other process being enforced or

levied upon the whole or any part of

the schedule property whether

secured to the bank or not.

d The borrower being declared

insolvent or committing act of

insolvency.

e If the borrower shall without the

consent in writing of the Bank create

or attempt to create any further

mortgage/charge or any

encumbrance of schedule house

property agreed to be mortgaged to

the Bank.

f If any event or circumstance shall

occur which shall in the opinion of

the bank prejudicial to or endanger

Bank’s security.

The opinion and judgment of

the Bank whether any such event

had occurred or not shall be

conclusive and binding on the

borrower.

The borrower shall at his own

cost insure and keep insured the

mortgage security when

executed/created against fire and

such other insurable risks loss or

damage as the Bank shall from time

to time require for the full market

value thereof with any nationalised

insurance company jointly in the

names of the borrower and the bank

with bank clause and deliver the

insurance policies taken from time to

time to the bank with receipt of

payment of premia. In case the

borrower neglects or defaults, the

bank may without being under any

obligation insure the mortgaged

security at the cost of the borrower

and debit the premia paid from time

to time to the borrower’s account.

The amount of premium not paid by

the borrower to Bank shall carry

interest as payable in the loan

account. The non-admission or

rejection of insurance claim by the

insurance company for any reason

whatsoever will not affect or qualify

the liability of the borrower and in

case any amount is received from

the insurance company towards the

claim lodged by the bank under the

policy, the same shall be received

and appropriated by the bank

towards dues owing under the term

loan.

The borrower agrees to

comply with all the conditions of the

term loan attaching or affecting the

schedule properly agreed to be

mortgaged and to obtain permission

from the competent authority or

officer if required for creating

mortgage of security in favour of the

Bank.

The borrower agrees to pay

all taxes, public demands, dues and

charges in respect of the schedule

property which may be levied by any

government or any local authority

during the continuance of the loan.

The borrower agrees to bear the

entire cost of the execution,

registration and Stamp Duty required

for the mortgage deed in the case of

a Regular Registered Mortgage.

In these presents the

expression ‘schedule property’

means a residential house or the

dwelling unit of any size or type

having an independent access and

include a bungalow and ownership

apartment, flat but does not include a

farm house or a temporary or a semi

permanent structure.

In witness whereof the

borrower has executed these

presents on the day, month and

year first above written.

……………………………..

Borrower

I. SCHEDULE

Description of Property

……………………………

Borrower

HL 2

SCHEDULE II

Terms and conditions of sanction of Housing loan

1. The loan shall be repaid in

equated monthly instalments

of Rs……………… each over

a period of …………………….

months. The repayment shall

commence immediately after

completion of construction /

purchase of flat / house or

after……………. months form

the date of first disbursement

which ever is earlier. While

remitting the stipulated last

instalment balance

outstanding if any shall be

paid in one lumpsum and the

account shall be closed.

2. Interest at …………………..%

p.a. shall be charged and

recovered separately during

holding period.

3. Where an instalment is not

repaid within due date

additional interest at 2% over

and above the stipulated rate

of ………………..% p.a. on

the overdue amount shall be

charged and recovered from

the borrower.

4. The construction on the plot

shall be done as per the plan

approved by the competent

authority.

5. The loan shall be released

only after ensuring investment

of borrower’s contribution/

margin initially in the

construction of the building.

6. The loan shall be released in

stages after watching the

progress of construction at

each stage of release.

7. The property shall be insured

for the full value of its

superstructure for the risk of

fire and other hazards with

bank’s clause during the

currency of the loan and

original policy shall be held

with the Bank.

8. Taxes and rates levied by the

local authorities shall be paid

by the borrower and the

receipt produced for

verification apart from

retaining a copy of records.

9. Legal opinion and valuation

report in respect of land and

building from our approved

lawyer/valuer shall be

obtained. Legal opinion shall

be in the standard format

prescribed by the Bank.

10.The borrower shall not

alienate / mortgage the land

and building offered as

security to the bank without

prior consent of the Bank in

writing.

HL 2

SECTION-B

Documents without Distinctive Numbers

DECRIPTION OF DOCUMENTS WITHOUT DISTINCTIVE NUMBER

Ann.No Name of Document Page No

1. Affidavit under the Urban land (Ceiling and Regulation) Act

1976.

2. Format of Balance and Securities Confirmation Letter

3. Letter of request of transferring the borrowal account from one

branch to other.

4. Supplemental agreement to be obtained when a borrowal

account of a Limited company is transferred from one branch

to other.

5. Form of Agreement-Loan against RBI Duty Draw Back Credit

Scheme 1976.

6. Agreement for Regularisation of time barred dabts.

7. Letter of Authority-Advance against units of Unit Trust of India

8. Letter to the office of the Unit Trust of India

9. Registration and modification of charge (Form 8).

10. Registration and modification of charge (Form 13)

11. Letter to be taken form witness while taking loan documents

from the blind person

12. Application for transfer of NSC as security – NC 41

13. Format of Certificate on documentation for advance to be

given by the second in command to Branch Manager.

14. Format of Certificate on documentation to be given by one

man branch to Regional Manger.

15. Application for loan against the security of Indra Vikas Patra

16. Draft of the No objection letter to be given to the borrower in

respect of ceding second charge on current assets.

17. Letter of authority from the pensioner-Loan under Pensioners

Medical Benefit Scheme

18. Letter of undertaking form son or any other person suggested

by pensioner Loan under Pensioners Medical Benefit scheme.

19. Memorandum of Entry (Title deed narration) to be entered in

the register of the financial institution/bank holding as the title

deeds as first charge

20. Format of the authorisation letter to be addressed by the Bank

to the First charge holder/another bank for accepting title

deeds under pari passu arrangement.

21. Confirmation letter evidencing extension of mortgage

22. Format of confirmation letter to be obtained from the first

charge holder/Bank accepting the deposit of title deeds in pari

passu arrangement.

23. Form of note of transfer of ownership of a motor vehicle. F.29.

24. Report of transfer of ownership of a motor vehicle. F.30

25. Application of making an entry of an agreement of hire

purchase/lease/hypothecation subsequent to registration.

F.34

26. Notice of termination of agreement of hire

purchase/lease/hypothecation F.35

26.A Extract of Rule F55, 60 & 61.

27. Declaration regarding levying penal interest on credit facilities.

28. Letter to be written to the customer under personal overdraft

scheme for reimbursement.

29. Rule No. 12 of the National savings Certificate (VIII Issue)

Rule 1989.

32 Changes in forward Contract F.258B.

33. Letter of Authority to be take from all the partners to save

limitation-creation of security

34. No lien letter from Borrower’s landlord.

35. Letter of undertaking to he obtained from legal heirs of

deceased borrowers.

36. Legal opinion-title report format

37. Declaration regarding creation of asset in respect of term

loan/small loan availed.

38. Format of undertaking letter from borrower – PCFC

39. Format of letter borrower-bills discounting in foreign currency.

40. Format of statutory notice to railway / lorry company

41. Format of interse agreement to be executed with KVIC

42. Letter of indemnity for creation of equitable mortgage with

certified copies of the title deeds.

43. Letter of undertaking Vidhya Jyothi scheme.

44. Format of agreement IDBI, Bills rediscounting scheme.

45. Format of application for availing of rediscounting facilities

covering sale of imported machinery by authorised

agent./distributor.

46. Format of application for availing of rediscounting facilities

covering sales by manufacture seller.

47. Format of application for availing of rediscounting facilities

covering sales by authorised selling agent/distributor.

48. Format of application for availing of rediscounting facilities

covering sales by design engineering concern.

49. Format of letter of sanction for financial assistance under

Mahila Udyam Nidhi scheme.

50. Draft of resolution by the board of borrower concerns: Mahila

Udyam Nidhi Scheme.

51. Letter of undertaking for bifurcation of cash credit limits under

loan system for delivery of bank credit.

52. Letter of consent for bifurcation of cash credit limits to be

obtained for guarantors under loan system for delivery of bank

credit.

53 Letter of consent for bifurcation of cash credit limits when

branch is holding joint deed of hypothecation.

54. Format of letter to Borrower(s) regarding revision in interest

rate.

55. Format of letter to Guarantor(s) regarding revision in interest

rate.

56. Format of letter to be obtained from borrower for creating sub

limit (out of cash credit account) by way of import cash credit

account.

57. Letter of request for finance for import out of cash credit limit.

58. Valuation report on immovable properties.

59. General power of attorney (for Housing loan to Non-Resident

Indians)

60. Power of attorney to collect lease rentals/Hire purchase

instalments.

61. Format of undertaking letter to be obtained form the lessee.

62. Format of Tripartite agreement finance to leasing companies.

63. Application cum counter indemnity for issuance of bank

guarantee through commercial Bank of Syria or any Foreign

Bank

64. Format of declaration cum indemnity for issuance of duplicate

foreign inward remittance certificate.

65. Draft letter of indicative offer for WCFC Loan.

66. Letter of confirmation of availability of funds under WCFC.

67. Format of undertaking letter for WCFC loan to be obtained

from Borrower/Guarantor/Third Party Mortgagor.

68. Format of undertaking letter where parties have already

availed W.C.F.C Loan.

69. Application cum receipt for claiming “Margin money” for Khadi

and Village Industries Commission by beneficiary and

bank/financial institution.

70. Format of undertaking letter for issuance of guarantees.

71. Format of letter of undertaking Sowmitra scheme

72. Information cum undertaking letter to be obtained from N.R.I

IOB’s home loan scheme.

73. Format of undertaking letter to be obtained from N.R.I . On

time money scheme.

74. Consent letter cum power of attorney to receive claims under

deceased constituents accounts.

75. Specimen of indemnity for settlement of claims in deceased

constituents accounts

76. Format of application to debts recovery Tribunal under section

19 of the recovery of debts due to banks and financial

institution.

77. Checklist for preparation of the application to debts recovery

tribunal.

78. Dematerialized shares: Format of statement of holdings by

Depository participant/his authorized signatories.

79. Dematerialized share: Format of pledge hypothecation form.

80. Format of discharge of mortgage.

81. Revised specimen letter to be addressed to the beneficiary of

letter of guarantee for returning of the expired guarantee

82. Format of solvency certificate.

83. Model agreement for rephasement of repayment with

recompense clause.

84. Format of bullion agreement.

85. Letter of indemnity for issue of fresh I.O.B-Kisan credit card in

lien of lost/misplaced card.

86. Foreign Currency Loan-Term Loan (FCL-TL) Indicative offer.

87. Foreign Currency Loan-Term Loan Confirmation of availability

of funds

88. FCL-TL-format of Under taking letter

89. -do-

90. The Agreement for FCL-TL

91. Guarantee Agreement for FCL-TL

92. -do-

93. Irrevocable undertaking to Guarantee

94.

95.

Annexure 1

AFFIDAVIT

(To be executed on non-judicial stamp paper of requisite value as per Stamp

Duty prevailing in respective states)

I, ………………………………………………………………………….. S/o, D/o,W/o

………………………………………………… aged ……………………………. years

residing at …………………………………………………………………………………

…………………………. do hereby solemnly affirm and state as follows:-

The following property mentioned in the Schedule A hereunder to be

mortgaged belongs to me absolutely.

I do not hold any other urban vacant land/* I hold other urban vacant loan

mentioned in schedule B hereunder total holding does not affect or violate any

provisions of Ceiling Law for the time being in force.

I confirm having given notice to the Competent Authority in writing of the

intended transfer by way of mortgage. In proof of the same. I am forwarding the

acknowledgement of the Registered letter sent to the Competent Authority.

Sl. No. Description of urban Vacant Land Area in Sq. mts.

and place of location

SCHEDULE –A

SCHEDULE – B

*Strike out, if not applicable

SIGNATURE

To be attested by First Class

Magistrate to Tahsildar or Notary

Public

Annexure 2

FORMAT OF BALANCE AND SECURITIES CONFIRMATION

Dear Sir/Sirs, Date:

Ref: Your Loan

We beg to inform you that the balance of your loan account

…………………………..was debit of Rs. ………………………………………………

Rupees Only) This balance and the balance from time to time in debit in the

account are secured by:

1. Demand Promissory Note for Rs…………………………. dated ………………

executed by Shri ……………………………………… in favour of the bank.

2. Letter of Guarantee dated ……………………………………………… Signed by

Shri ………………………………………….

3. 3. Agreement of Hypothecation /Pledge dated………………… Of all tangible

movables situate lying and being at ………………………………………….

4. Equitable/registered mortgage of immovable property situated at

………………. created by deposit of title deeds made at

……………………………… on the ……………………………… day

of………………… 20………../ by a registered deed dated the

…………………………… day of …………… 20 ……………

Please return this form intact to the Bank as soon as possible with the

confirmation below signed across a Revenue stamp by each account holder and

with the concurrence below of the guarantor/s also signed across revenue stamp.

Yours faithfully

MANAGER

Encl:

To

Indian Overseas Bank

I/we hereby confirm and acknowledge my/our indebtedness on …………………

in the sum of Rs………… (Rupees……………………………. ………………………

only) as stated above and further acknowledge that the debt is secured in the

manner stated above and that the foresaid documents of security/and the

mortgage created on………………….. are in full force and effect and that the

security there under is also in full force and effect.

(Stamp)

………………………………………

(Stamp)

………………………………………

(Stamp)

………………………………………

(Signature of the Borrower)

Date:

I/we the guarantors, concur in the foregoing confirmation of balance & Security

and acknowledge and declare that the letter of guarantee signed by me and

above noted is in full force of effect.

Date Date Stamp

I/we, the guarantor/s concur in the foregoing confirmation of balance and security

and acknowledge and declare that the letter of guarantee signed by me/us and

above noted is in full force and effect.

(Stamp)

………………………………………

(Stamp)

………………………………………

(Stamp)

………………………………………

Signature of Guarantor(s)

Date

Note: In case of more that one guarantor each guarantor should sign on a

separate revenue stamp.

In case of joint borrowers i.e. individual other that partnership firm or

Limited Company etc, each of the borrower should sign on a separate revenue

stamp.

In certain states mortgage of immovable property has to be followed up by

registering with Jalati e.g. Gujarat. This should be also done by Branch where

such registration is compulsory.

Annexure 3

From

……………………………………..

…………………………………….

…………………………………….

To

The Manager

Indian Overseas Bank

………………………………………….. Branch

Dear Sir,

Please transfer the following credit facilities enjoyed by me/us from your branch to ………………………… branch for the reason that ………………………………... …………………………………………… (Specify the reason)

Details of facilities

The Loan documents/security documents already executed by me/us and securities/mortgages/already created shall as earlier agreed to in person continue to be in force and applicable to the facilities transferred to the new branch.

Thanking you,

Yours faithfully

Date……………

I/we ……………………………………. concur for the above arrangement.

Date ……………………. Signature of the guarantor’s

cc to…………………… Branch

(Transferee Branch)

Annexure 4

This Supplemental Agreement entered into between M/s …………

…………………………………………having its Registered Office

at………………………………………………..………………………………..

hereinafter referred to as the Company (which term shall mean and include its

successors and assigns) represented herein by its Managing Director/Directors

Shri…………………………………… AND THE INDIAN OVERSEAS BANK a

Body Corporate constituted under the Banking Companies (Acquisition and

Transfer of Undertaking) Act 1970 and carrying on Banking business among

other places at ……………………………… whereinafter referred to as the Bank

which expression shall include its successors and assigns witnesseth as follows:-

WHEREAS for purposes of convenience and for proper operation of the

accounts the Company has requested the Bank transfer

……………………………… facilities from ………………………… Branch to

…………………………… Branch and the Bank has agreed for the same.

AND WHEREAS The Company has executed the following loan

documents to create a charge on the assets of the Company in respect of the

said credit facilities.

1.

2.

3.

4.

IT IS HEREBY AGREED BETWEEN the parties that wherever the words

…………………………… Branch appears, in the said/Loan documents executed

by the Company in favour of the Bank, all same shall be read as ……..

………………………………………………………………………… Branch, all other

terms and conditions remaining the same.

It is further agreed that this is only a Supplemental to the various

documents of charge executed by the Company in favour of the Bank as

mentioned above and is not a substitute for the same and the charge created

and filed with the Registrar of Companies by the Company in favour of the Bank

as shown above are not in any way affected, diminished, substituted, abrogated

or otherwise altered by execution of this Agreement and all charges already

created shall remain the same and shall have full effect and will be a continuing

one on the same terms and conditions as envisaged in the documents of charge

already executed, except for the modification that all the charges created in

favour of ………………… branch of the Bank shall now stand vested in favour of

………………….. branch of the Bank.

In witness whereof the parties have set their hand to this Deed this

………………………… day of …………………… 20….

Company

INDIAN OVERSEAS BANK

Annexure 5

The Manager

Indian Overseas Bank

…………………………………….. Branch

AGREEMENT FOR

LOAN AGAINST R.B.I. DUTY DRAW BACK CREDIT SCHEME – 1976

Dear Sir,

In Consideration of your Bank

agreeing to grant me/us advance at

your discretion against provisional

entitlements to duty draw back as

certified by the customs from time to

time not exceeding a sum of

Rs…………………………….. at any

one time for which amount I/we have

delivered to you a Demand

Promissory Note in your favour, I/We

agree with and undertake to you as

follows:

1. That the balance of the said

advances at any time

outstanding shall be

repayable by us on demand in

accordance with the Scheme.

2. That interest shall be payable

by us on the said advances

with a maximum of 18% or as

may be fixed by you from time

to time if final payment is not

received from the customs

authorities within 90 days

from the date of our availing

the loan.

3. That all charges incidental or

otherwise for the despatch of

bills, cheques etc,. are for our

account at the rate as may be

fixed by the Bank from time to

time.

4. To declare that amount on the

relative shipping bill in respect

Stamp

of our claim of duty draw

back.

5. To furnish the bank a copy of

the shipping bill bearing the

certificate of the customs

authorities to the effect that

the amount of duty draw back

as provisionally determined by

them will on sanction be paid

by term to you through the

Reserve Bank of India.

6. That in case of any short

shipment or short entitlement

the Bank is entitled to reduce

proportionately the amount of

duty draw back as

provisionally certified by the

customs authorities.

7. The I/we authorise the Bank

irrevocably to receive through

the Reserve Bank, the full

amount of the duty draw back

as may be sanctioned by the

customs form time to time in

respect of all shipments made

irrespective of the amount of

the advance made.

8. That if within a period of 90

days, from the date of Bank

granting the loan, or final duty

draw back has been

sanctioned or if the amount or

draw back sanctioned is less

than the amount provisionally

determined and advanced by

you, the entire amount will be

repaid, on demand by you,

together with interest as

agreed in the preceding

paragraphs.

9. That this agreement is not to

prejudice the rights or

remedies of the Bank against

me/us or other securities

offered by me/us irrespective

of and independent of this

agreement in respect of any

portion of the ultimate balance

due to the bank of the said

account and interest.

10.That this agreement (and the

said promissory note for

Rs………………………..) shall

operate as a continuing

security for the said advance

not withstanding any partial

payments of fluctuations in

the accounts or withdrawal of

any part of the security that

may have been provided by

us.

11.That we will from time to time

and whenever required by you

so, to furnish such information

and execute on demand any

such documents as may be

required by you from time to

time for the purposes of the

advance under the said

Scheme.

Yours faithfully,

Annexure 6

To

The Manager,

Indian Overseas Bank

……………………………… Branch

Dear Sir,

Credit facilities granted to me/us by way of

…………..……………… loan

Account No.

I/we availed a loan of Rs………………………. on……………… from your

Bank. There is an outstanding of Rs…………………… as on ……………………

which remains unpaid till date due to my financial difficulties. As I/we would like

to keep up my/our obligation to pay the said dues and to maintain good

relationship between the Bank and myself/ourselves, I/we hereby expressly

promise to pay the said dues entirely with interest within……………….. months.

Yours faithfully,

Date ……………………

Stamp

Annexure 7

LETTER OF AUTHORITY

The Agent/Manager

……………………………………………………………………………………

Dear Sir,

In consideration of the ………………

………………………….. agreeing to

grant me/us a loan of Rs………….…

……………………………… (Rupees

…………………………………………

…………………………………. only)

against the security of units Nos……

issued by the Unit Trust of India of

which I/we am/are the holder/holders

and on the understanding that you

will be given necessary authority to

ask UTI to note a lien in your favour

against these units in the books of

UTI as also to collect the income

becoming payable on the said units

form time to time (Wherever

applicable) and adjust the same

towards the repayment of principal

and payment of interest on the said

loan. I/we, the holder/holders of the

said units hereby authorise you to

collect on my/our behalf the income

becoming due and payable to me/us

on the said units by the Unit Trust of

India and pass necessary receipts to

the Trust in full discharges of the

said payments (applicable for U.S.64

only). Further since the post-dated

dividend warrants have already been

issued to me/us on the certificates,

I/We have submitted all the dividend

warrants to the bank and authorise

them to collect the same regularly

and credit the proceeds to my/our

Advances Account (applicable for

MIS & GIUS non-cumulative

certificates).

The letter of mine/ours

automatically authorises UTI to note

a lien against the units mentioned

herein in favour of the bank till the

same is vacated by the bank as

expressed in a letter. Further, this

letter also authorises the UTI to pay

the capital amount of the said units

Including any accretions/accruals

thereon to the said bank in case of

my/our default in repayment of the

loans/advances availed by me/us, on

such communication and demand

from the bank to that effect. This

authority in your favour shall not be

revoked by me/us except with your

prior approval in writing. A copy of

this letter is being endorsed to the

Unit Trust of India for payment to you

of the income on the units stated

above as also the value of units in

case of my default in repayment of

the loan.

Yours faithfully

………………………………………

Unit Certificate Nos.

1. …………………………………

2. …………………………………

3. …………………………………

4. ……………………………….

(Name and signatures of all unit

Holders)

Note:

1. A blank signed dated/undated

transfer form should be

submitted to the bank along

with the original unit

certificate.

2. In case of MIS and GIUS

(under non-cumulative

scheme) where post-dated

dividend warrants have been

issued by the Trust in

advance. These should also

be submitted to the bank for

regularly crediting to the

Advance Account.

Annexure 8

The JGM/DGM/MGR/DM

Unit Trust of India

…………………………………….

…………………………………….

Dear Sir,

ADVANCES AGAINST THE SECURITY OF UNITS

We forward herewith a letter(s) dated

……………………………………………………………………………………. from

the unit holder(s) mentioned hereunder who has/have executed blank signed

dated/undated transfer deeds and submitted the unit certificate(s) No(s).

mentioned hereunder in original as also the post-dated dividend warrants

(applicable for MIS and GIUS non-cumulative certificates). We have sanctioned

loans/advances against security of the units mentioned hereunder. You are,

therefore, requested to note a lien in our favour against those units in your books

and continue the same till you hear from us in the matter. The income warrants

issued by you relating to the units that may be issued/payable hereafter may also

be forwarded to us till the authority is revoked by unit holder(s) and confirmed by

us (applicable in case of units issued by UTI under U.S. 64 only). We fully

understand that future dividend warrants only under U.S 64 when dividend is

declared and paid annually, will be forwarded to us till revocation of this authority,

whereas in respect of MIS or GIUS, (non-cumulative where postdated dividend

warrants for the entire scheme period have been issued in advance, will be taken

in our custody at our risk and the Unit Trust of India will not be responsible in

anyway for forwarding the same to us. Please also note to inform us in case you

receive any request for issue of duplicates of the units covered by the mandate

letter(s) enclosed and/or duplicate dividend warrants in respect of MIS and GIUS-

non-cumulative certificates.

Please acknowledge receipt.

Name(s) of the holder(s) Unit Certificate No.

1. ………………………………………….. …………………………….

2. ………………………………………….. ……………………………

3. ………………………………………….. ……………………………

4. ………………………………………….. ………………………….

Yours faithfully,

Manager

Seal of the Bank

Annexure 9

Form No,.8 THE COMPANIES ACT, 1956

Registration No……………………………

Nominal Capital Rs………………………

Particular of Charges Created by a company registered in India

subject to which property has been acquired

by a Company registered in India.

Modification of charge

Pursuant to section 125/127/135)

Name of the Company ………………………………………………………………..

Presented by …………………………………………………………………………..

1. Date and description of the instrument creating

Charge

2. Amount secured by the charge/amount owing

on security of the Charge.

3. Short particulars of the property charge. If the

property acquired is subject to charge, date of

acquisition of property should be given.

4. Gist of the terms and conditions and extent or

and operation of the charge.

5. Names, addresses and description of the persons

entitled to charge.

6. Date and brief descriptions of instrument modifying

the charge.

7. Particulars of modification specifying the terms and

conditions or the extent or operation of the charge

in which modification is made, and the details

of the modifications.

Signature………………………………………

Name ………………………………………….

(IN BLOCK CAPITALS)

Designation…………………………………….

Dated the ………………………………………………. day of ………… 20…………

Notes:-

1. ‘Charge’ includes mortgage-see Section 124. A description of the instrument, that is to say, whether trust, deed mortgage or debenture should also be given.

2. “ Persons entitled to the charge” will include mortgages.

3. Amount or rate of percent of the commission, allowance, or discount (if any) paid or made either directly or indirectly by the company to any person in consideration of his subscribing or agreeing to subscribe, whether absolutely or conditionally, or procuring or agreeing to procure subscriptions, whether absolute or conditional, for any of the debentures included in this reform, should be given in item No.4

Annexure 10

FORM NO. 13 THE COMPANIES ACT, 1956

Registration No………………..

Nominal Capital………………………………..

Register of Charge

(pursuant to section 130, 135, 137 & 138)

created by a company registered in India

Particulars of Charge(s) subject to which property has been acquired by

company registered in India.

Name of the Company ……………………………………………………………… Limited/Private Ltd.

Presented by ……………………………………………………

Created

Particulars of Charge(s)

subject to which property has been acquired

……………………………………………………………………Limited/Private Limited

a company registered in India.

______________________________________

Particulars of charge under section 125

1. Date and description of the instrument creating

the charge.

2. Amount secured by the charge/amount owing on

securities of the charge

3. Short particulars of the property charged. If the

property acquired is subject to charge, date of

the acquisition of property should be given.

4. Gist of terms and conditions and extent and

operation of the charge.

5. Name and addresses and description of the

persons entitled to the charge.

Particulars regarding creation of charge in case of series of debentures under section 128/129

6. Date and amount of each series of debentures

Date Amount

7. Date and amount of the present issue of series Total……………..

8. Dates of resolution authorising the issue of the series

9. Date of covering deed (if any) by which the

security is created or defined or if there is no

such deed, the first execution of any debenture of the series.

10.Names and addresses of the trustees (if any)

for the debenture holders.

11.Date of registration of the series.

12.Particulars as to the amount or rate

per cent of the commission, allowances

or discount (if any) paid, or made either

directly or indirectly by the company to

any person in consideration of subscribing

or agreeing to subscribe, whether absolute

or conditionally or procuring or agreeing to

procure subscription, whether absolute

or conditional, for any of the debentures

included in this return.

Particulars of modification of charge under Section 135

13.Date and brief description of instrument

modifying the charge.

14.Particulars of modifications already

registered/filed in the office of the Registrar of Companies.

15.Particulars of modification specifying the

terms, conditions of the extent of operation

of the charge in which modification is

made, and the details of the modification.

16.Appointment of receiver under section 137

(a) Name, addresses and date of appointment of receiver.

(b) Date on which the receiver ceased to act.

17.Memorandum of complete satisfaction of charge under 138.

(a) Date of creation of original charge and amount secured.

(b) Date of registration/date of filling

of the particulars with the Registrar of Companies.

(c) Date of filing of the memorandum of

satisfaction/date of entry of satisfaction.

Signature…………………………….

Dated the ………… day of ………… 20…. Name ……………………………….

(IN BLOCK CAPITALS)

Designation…………………………

………………………………………………………………………..

(FOR OFFICE OF REGISTRAR OF COMPANIES ONLY)

18.Date of Registration.

19.Serial No. of the document in file.

.…………………………………………

Signature of Registrar of Companies

Annexure 11

Letter to be taken from witness while taking loan documents from the blind person

Place:

Date:

To

The Manager,

Indian Overseas Bank

…………………………. Branch

Sir,

I confirm that in my presence the following documents were read over and

explained in vernacular language by your branch officials of Shri/Smt ……………

…………………………………………………… who is a blind person and he/she

has understood the same.

Details of the documents read over and explained to the blind person.

Yours faithfully

…………………………..

Name:

Occupation:

Address:

Annexure 12

INDIAN POST & TELEGRAPHS DEPT

APPLICATIN FOR TRANSFER OF NATIONAL SAVINGS CERTIFICATE AS SECURITY

(Vide Rule 19 of P O S B Rules 1960)

Registration No. Serial No. and date of original

Application for purchase of NSC

To:

The Postmaster

Sir,

I/we……………………………………………………………………… (Name

in Block letters) AM/ARE required to deposit an amount of Rs………………..

……………………………………………… as security with …………………………

(official designation of the Gazetted Government Officer or name of the R B I or a

Scheduled Bank, Co-op Bank, Registered Co-op Society Corporation,

Incorporated Limited Company or Registered firm) vide enclosed certified true

copy of the written authority from the said Officer/Bank etc. (We, therefore

request you to transfer the under mentioned National Savings Certificate(s)

National Plan Savings Certificate(s) declaration in lien of lost certificates of

which I/We am are the holder(s) in favour of …………………………. (The

President of India/Governor of State or name of the Bank etc. to whom the

certificate are being pledged as security).

I/We agree that the certificate(s) shall be encashable by the pledge when the

security has been forfeited.

PARTICULARS OF CERTIFICATES OF-DECLARATION

IN LIEU OF LOST CERTIFICATES (S)

No. & Date of

Letter from the

pledgee

Sl. No. of

Certificates

Date Name of the

Office of

issue

Denomination

Total No. of certificates or declarations: I/We enclose the identity slip for

endorsement it necessary.

Address of Transferor: Yours faithfully,

Signature of Transferor

Date:

Certified that I am duly authorised under Art, 299 of the Constitution of

India (vide) Notification No. 10 dated 15.8.1961 by the Government of India In

the Ministry of Home Affairs to execute such instruments endorsed on behalf of

the President of India/Governor of State/Government of India Ministry of Finance

Notification No.5.7.1963/ITI/1961 dated 4.10.1961.

Certified that I am duly authorised under the articles of

(Name of the institution to execute such instruments or deeds on behalf of

(Name of the institution)

Seal:

Signature of the Transferee

With Designation

In case of gazetted officers government central/state accepting securities. In

case of R.B.I/Scheduled Bank/Co-op Bank/Corporation etc.

SI. No. of

Head Office Oblong M.O. Stamp of Head Office

Certificates can be transferred to be treated as security only to those

mentioned in Rule No19 of the P O N S C Rule 1960. Transfer of certificates as

security to private Individuals, Institution is prohibited.

Particulars of National Plan Savings Certificates or declaration in lieu of

lost certificates issued to transfer(s) to be filled in by the Head Post Office).

Sl .No. of Certificate

Date Denomination

Date of discharge and initials of the Postmaster

Remarks (Every change affecting a NSC such as transfer, spl issue of decration etc, be noted here under the date and initials of Postmaster

For Postmaster

Date

NC41

Annexure 13

FORMAT OF CERTIFICATION ON DOCUMENTION

FOR ADVANCES

From To

Name The Chief Manager

Senior Manager/Manager

Roll No.

Designation:

(Asst. Manager / Deputy Manager/

Senior Deputy Manager / Manager/

Senior Manager /Chief Manger)

CREDIT FACILITIES-ADVANCE DOCUMENTS

A/c: …………………………

Nature of facility ……………………………….

I hereby certify that the relevant advance documents as per instructions in

Bank’s Book of Instructions/ Documentation Manual and circulars issued from

time to time/sanction endorsements have been obtained from the captioned

borrower in respect of …………………………………………………….. (indicate

nature of facility and account No.) facilities sanctioned by you/RO/CO vide

sanction No…………………………… dated ………………….

…………………………………… and that the documents are complete in all

respects.

Signature

Annexure 14

FORMAT OF CERTIFICATE ON DOCUMENTATION FOR ADVANCE TO BE

GIVEN BY ONE MAN BRANCH MANAGER TO REGIONAL MANAGER

From: To

Name: The Regional Manager

Roll No. Indian Overseas Bank

Designation Regional Office

(Manager)

CREDIT FACILITIES

ADVANCE DOCUMENTS

A/c: ………………………….

Nature of Facility…………………………

I hereby certify that the relevant advance documents as per instructions in

Bank’s Book of Instructions/ Documentation Manual and circulars issued from

time to time/sanction endorsements have been obtained from the captioned

borrower in respect of………………………. (Indicate nature of facility and

account No.) facilities sanctioned by you/RO/CO vide sanction No ………………

dated ……………………… and that the documents are complete in all respects.

Signature

Annexure 15

From To

The Manage/Chief Manager

Indian Overseas Bank

Sir,

Application for a loan against

the security of Indira Vikas Patra

I/we hereby apply for a loan against the security of Indira Vikas Patra held

by me/us. I/We hereby agree to abide by the rules and regulations of the Bank.

Please grant me/us a loan of Rs……………………………………………………..

for the purpose of ……………………………………………………………………...…

Please take delivery of the under noted Indira Vikas Patras held by me/us, the

Title over which stands transferred to you by this delivery. I/We request you to

hold the said Indira Vikas Patras as security for all moneys now owing or which

shall at any time hereafter be owing from me/us and/or from ………………………

either separately or jointly with any other person or persons and either as

principal debtor or as surety for any other person or persons, including interest,

commission charges etc.

I/We hereby authorise you to sell/encash the said Indira Vikas Patras at

such time and price as you in your absolute shall think fit and apply the proceeds

after defraying the expenses attending the such sale/encashment, towards

satisfaction of moneys owing from me/us and/or from in any manner whatsoever.

PARTICULARS OF INDIRA VIKAS PATRAS DELIVERED

Sl. Printed Date of Issuing Purchase Maturity Date of

No Number Purchase Post Office Price Value Maturity

Signature of Applicant(s)

Annexure 16

DRAFT OF THE NO OBJECTION LETTER TO BE GIVEN TO THE

BORROWER IN RESPECT OF CEDING SECOND CHARGE ON CURRENT

ASSETS

To

Name and address of the Borrower Date:

Dear Sir,

Ceding second charge on stocks and book debts

We refer to your request for ceding

second charge in favour of X Bank

on current assets comprising stocks/

book debts as collateral security for

their loan/credit facility to the extent

of Rs…………………… in this

regard, we write to inform you that

we are agreeable to the aforesaid

request. Our approval is subject to

the following terms and conditions.

1. X Bank shall not be entitled to

call upon us and other pari

passu first charge holders if

any, (hereinafter called as first

charge holders) to exercise or

enforce any of the rights

under their securities or

otherwise.

2. Second charge created in

favour of X Bank shall always

be subject and sub-servient to

the first charge on the current

assets created and/or to be

created in our favour of the

credit facilities, both funded

and non/funded to be

extended by us.

4. X Bank shall not resort to any

legal proceedings for the sale

of the current assets or for the

exercise of its any other rights

against the borrower unless.

a. It exhaust its remedies

on other assets of the

Borrower of which it

has got first charge if

any.

b. It gives to the first

charge holders notice

of minimum period of

60 days of its intention

in this and.

c. It obtains prior written

approval of the first

charge holders in this

regard.

If X. Bank in its capacity as second

charge holder take steps to enforce

the security for realisation of its dues

consequent on default or breach

committed by the borrower after

giving notice to and obtaining proper

approval of the first charge holder,

the first charge holders shall also be

at liberty (but without obligation) to

call upon the borrower to repay

forthwith their credit facilities , as if

they are become due under their

respective loan documents and shall

also be at liberty to exercise any or

all the rights and remedies available

to them as first charge holders

and/or under any other for the time

being in force.

5. Any compensation received

for the acquisition of the

hypothecated properties or for

the loss/destruction thereof or

sale proceeds thereof shall be

paid first to the first charge

holders towards all moneys

then due by the company to

them and only the balance, if

any, shall be paid to the

second charge holder.

6. Any further assistance

granted by us against the

security of current assets shall

be secured by a first charge

on the current assets of the

borrower ranking above the

charge in favour of X Bank.

7. We shall be under no

obligation to seek the consent

of X Bank for enhancing our

credit facilities, to recall the

credit facility, for filling of suit

for enforcing our charge on

current assents and also for

obtaining insurance without

marking their interest in

polices.

8. Borrower shall not make any

prepayment to X bank in

discharge of its credit facilities

unless all monies due by the

borrower to us as first charge

holder are paid in time.

9. Any compensation received

for the acquisition or for loss

destruction of the current

assets shall be paid first to us,

as first charge holder and only

the surplus if any can be paid

to the X Bank, in satisfaction

of its second charge.

10.X Bank shall agree to share at

a pro-rate basis the expenses

incurred by the first charge

holders towards the payment

of insurance premium,

preservation of assets and

enforcement of security in

case of surplus out of the

realisation available for

distribution is payable to the X

second charge holders.

11.X Bank and borrower shall

enter into an inter-se

agreement/arrangement with

the first charge holders for

giving effect to the above

stipulation and for other

incidental matters.

12.The copies of relevant

documents to be executed by

the borrower in favour of X

Bank shall be forwarded to

the first charge holders for

their perusal and records.

Our approval is also subject to

your obtaining similar

approval from other first

charge holders, if any.

Yours faithfully

………………….

Annexure 17

LETTER OF AUTHORITY FROM BORROWER

From

……………………………………

…………………………………..

To

The Manger,

Indian Overseas Bank

……………………….. Branch

Sir,

Sub: Loan under Pensioners’ Medical Benefit Scheme

With reference to the loan of Rs. ………………………………………………

(Rupees………………………………………………………………………………….)

granted to me by you towards my medical expenses, I give you my irrevocable

authorisation to recover the monthly instalments commencing from the month of

……… …………………………………………………………….. my SB/CA/CC A/c

with you in which my pension is credited. This may be treated as a standing

instruction in my SB/CA/CC A/c.

Yours faithfully

…………………………………….

Place:

Date:

Annexure 18

LETTER OF UNDERTAKING

(from son or any other person suggested by the borrower)

From

…………………………………

…………………………………

To

The Manager

Indian Overseas Bank

………………………………Branch

Sir

SUB: Loan under Pensioners’ Medical Benefit Scheme

With reference to the loan on Rs……………………………………………

(Rupees ……………………………………. ……………………………….. granted

by you to Shri/Smt ……………………………… ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, towards

his/her medical expenses, at my request, I hereby personally give an irrevocable

undertaking to repay the balance in the loan account with interest in the

unfortunate event of his/her demise during the currency of the loan.

Yours faithfully

Place:

Date:

Annexure 19

Note :The first charge holder is being indicated as XYZ Bank

MEMORNDUM OF ENTRY (TITLE DEED NARRATION) TO BE ENTERED IN THE

REGISTER OF THE FINANCIAL INSTITUTION/BANK HOLDING THE TITLE DEEDS.

1. On………………………………

day of …………………………

Mr. …………………………….

(Day) (Month & Year)

Proprietor/Partner/Director

…………………………………

……………………….. (Name

of the concern with residential

/ Registered office address)

…………………………………

………..………… (hereinafter

called the borrower) attended

the office of XYZ and saw

Mr………………………………

of XYZ Bank.

2. The said Mr. …………………..

……………………. stated for

himself on behalf of the

borrower that the documents

of title, evidences, deeds and

writings more particularly

described in the First

Schedule here under written

(hereinafter called the said

title deeds’) in respect of

his/her the borrower’s lands

and other immovable

properties by his/her the

borrower with XYZ Bank on

…………… with an intention

to create and security on the

said lands and other

immovable properties

together with buildings and

other structures, fixed plant

and machinery, fixtures and

fittings now constructed,

erected or installed thereon,

both present and future

(herein after referred to as the

said immovable properties) for

securing the due repayment

and discharge by the said

borrower to:

XYZ bank of its loan of

Rs…………..………………….

together with interests

compound interest and/or

additional interest in case of

default, liquidated damages,

commitment charges, premia

on prepayment or on

redemption, costs, charges

expenses and other monies

including any increase as a

result of

devaluation/fluctuation in the

rate of exchange of foreign

currencies involved, payable

by the borrower to XYZ Bank

under the respective Loan

Agreement / Sanction Letter.

3. Mr. (The said Borrower)

…………………………………

accorded and gave oral

assent and consent to

Mr………………………………

……………… of XYZ Bank

acting for itself and as agent

of Indian Overseas Bank

(IOB) to hold and retain the

said title deeds as and by way

of equitable mortgage by

deposit of title deeds, by

constructive delivery as

security also for the due

repayment and discharge by

the said borrowers to term

loan:

Working capital facilities

aggregating to Rs. ……………

granted/to be granted by IOB

together with interest

compound interest and/or

additional interest in case of

default, liquidated damages

commitment charges, premia

on prepayment or redemption

costs charges, expenses and

other monies including any

increase as a result of

devaluation /fluctuation in the

rate of exchange of foreign

currencies involved, payable

by the said borrower to Indian

Overseas Bank under the

respective Loan Agreement /

Sanction Letter.

4. Whilst giving such oral assent

and consent on behalf of the

said borrower.

Mr………………………………

stated that the mortgage

created in favour of IOB shall

rank equal and pari passu

with subject and subservient

to the mortgage already

created in favour of XYZ

bank.

5. Mr………………………………

…………………………………

Further stated that he is the

Director of the borrower

company and he gave such

oral assent and consent on

behalf of the borrower

company in the capacity as a

Director of the borrower

company, which is the owner

of the said immovable

properties according to their

nature and tenure with

intention to create a security

on the said immovable

properties in favour of IOB for

the due repayment and

discharge by the borrower

company to IOB their working

capital facilities as aforesaid

and payable by the borrower

company to IOB under the

loan agreement/ sanction

letter.

6. Mr………………………………

…………………………….

while giving such oral assent

and consent stated that he

was authorised to do so by a

Resolution passed by the

Board of Directors of the

Borrower company at their

meeting held

on…………………………….a

nd he produced a copy of the

said resolution to Mr.

……………………………… of

XYZ bank and further stated

that the said Resolution had

not been modified or

rescinded and that the same

were in force and effect.

7. MR.( )

The said borrower

………………………………

reassured and declared that

the said title deeds so

deposited by him/her the

borrower company with XYZ

Bank were the only

documents of the deeds

relating to the said immovable

properties and the said

borrower/company had a

clear and marketable title to

the said immovable

properties.

*Strike out which ever is not applicable

FIRST SCHEDULE

LIST OF TITLE DEEDS

SECOND SCHEDULE

DESCRIPTION OF LAND & BUILDING

Dated this ……………………………….. day of ………………….. 199

Signature of the official of XYZ Bank

Accepting the extension of mortgages

(Not to be signed by the Borrower)

Annexure 20

FORMAT OF THE AUTHORISATION LETTER TO BE ADDRESSED

BY THE BANK TO THE FIRST CHARGEHOLER / ANOTHER BANK

FOR ACCEPTING TITLE DEEDS UNDER PARI PASSU ARRANGEMENT

To Date:

Name and address of the

First charge holder/Institution

Corporation/Bank accepting the title deeds.

Sirs,

Letter of authority for execution/ extension of mortgage*

A/c…………………………………………………..(Borrower)

We, Indian Overseas Bank, hereby authorise you acting through any of your

authorised official and acting for yourself and also as agent for us to accept

actual/constructive delivery of deposit of all the documents of title, evidences,

deeds, and writings to be made by the borrower in respect of immovable

properties situated at…………………… ……………… together with the buildings

and other structures, fixed plant and machinery, fixtures and fittings etc., present

and future with the intention to create/ extend the mortgage to secure the due

repayment and discharge by the borrower of all the credit facilities extended by

us aggregating to Rs……………………………….. together with interest additional

interest compound interest, commitment charges, commission, costs, charges,

expenses and other monies including any increase as a result of devaluation/

revaluation/ fluctuation in the rate of exchange of foreign currencies, if any,

payable by the borrower to us as per the loan documents executed/to be

executed by the Borrower/as per Letters of Sanction.

Please acknowledge receipt

Thanking you,

Yours faithfully,

…………………………………………

*Strike out which ever is not applicable

Annexure 21

CONFIRMATION LETTER EVIDENCING EXTENSION OF MORTGAGE

(To be given by the Borrower)

Place:

Date:

To

The first charge holder/institution

Corporation/Bank accepting the title deeds*

(Address)

Dear Sir,

I/We have already deposited the little deeds on …………………………………. of

the property situated at…………………………….. (full description of the property

and its address with an intention to create a mortgage thereon for the advances

granted and/or to be granted to me/us by…………………………………………….

(name of the first charge holder bank accepting the TDS). I/we confirm my/our

visit to your office on ………………….at……………………. am/pm and during the

visit. I/we authorized you, your institution acting for itself and as agent of Indian

Overseas Bank, to continue to hold the said title deeds relating to the above said

property as continuing collateral security for the advances made and/or to he

made to me/us by Indian Overseas Bank to the extent of

Rs……………………………………. (Rupees…………………………………………

…………………………………………….. only) and all other indebtedness and

liabilities whatsoever together with interest, additional interest, further interest,

compound interest, commitment charges, commission, cost, charges, expenses

and other monies including any increase as a result of

devaluation/revaluation/fluctuation in the rate of exchange of foreign currencies, if

any, payable to as per the loan documents executed/to be executed by me/us as

per Letters of sanction.

I/We undertake to produce up-to-date Nil encumbrance certificate of the said

property.

I/we confirm having told you that the mortgage extended in favour of Indian

overseas Bank shall rank on par (on Pari Passu basis) with the

………………… mortgage already created in your favour.

List of title deeds already deposited.

DETALS

Yours faithfully

……………………………………….

CC:IOB………………… Branch

*Strike out whichever is not applicable

Annexure 22

FORMAT OF CONFIRMATION LETTER TO BE OBTAINED FROM THE FIRST

CHARGE HOLDER BANK ACCEPTING THE DEPOSIT OF TITLE DEEDS IN

PARI PASSU ARRANGEMENT

Date:

The Manger

Indian Overseas Bank

…………………………… Branch

Sir,

A/C …………………………………………….. (Borrower’s name)

……………………………………………………

Place refer to your letter of Authority dt……………………………………… for

accepting the title deeds from the above borrower as your agent for the purpose

of creating mortgage for your loan of Rs……………………………. extension of

the mortgage by way of second charge in your favour.

Further to your letter, the Borrower/Borrower’s representative called on us on

………….. …………………… at our office and made oral representation with an

intention to extend the mortgage for the advance granted and or to be granted by

your Bank to the Borrower. Subsequently, the said oral representation was also

confirmed in writing a copy of which is enclosed for you records.

Thanking you,

Yours faithfully,

Annexure 23

Form 29

(See Rule 55 (1)

Form of note of transfer of ownership of a motor vehicle

(To be made in duplicate and the duplicate copy with the endorsement of the

registering authority to be returned to the transferor immediately on making

entries of transfer of ownership)

To

The Registering Authority,

………………………………………………… (in whose jurisdiction the transferee

resides I/we ……………………………………. resident at …………

……………………………… have on the …………………………… day of the year

………….. sold and delivered my/our Vehicle No. …………………………… make

……………………………………… Chassis No. …………………………… Engine

No. …………………….…… to Shri/Smt. ………..…………………………… (name)

………………………………… son/ wife/daughter of ……………………… residing

at ……………………………… (House no/Street/Village/Town/District and State).

The registration certificate and insurance certificate have been handed over to

him/her/them.

Signature of the Registered Owner

(Transferor)

Date…………………………

…………………………… (Transferee)

Copy to the Registering Authority in whose jurisdiction the transferor resides.

Note: to be sent to the Registering Authority by Registered post

acknowledgement due.

OFFICE ENDORSEMENT

No. …………………………………….dated………………………. office of the ……

……………… The Ownership of the vehicle have been transferred to the name of

……………………………………… with effect from ………………………… (date)

Registering Authority

(office Seal)

To

……………………………..

……………………………..

(The Transferor)

By registered post or delivered under proper acknowledgement. Strike out

whichever is inapplicable.

Annexure 24

FORM 30

(See rule 55 (2) and (3)

Report of transfer of ownership of Motor Vehicle

Part 1-For the use of the transferor

(To be made in duplicate if the vehicle is held under an agreement of hire

purchase/lease/hypothecation and the duplicate copy with the endorsement of

the registering authority to be returned to the financier simultaneously on making

the entry of transfer of ownership in the certificate of registration)

To

The Registering Authority,

…………………………………………

Name of the Transferor……………………..

Son/Wife/daughter of…………………………

Full Address ………………………………………………………………………………

……………………………………………………………………………………………..

I, hereby declare that I/We have on this …………………………… day of the year

…………………………… sold my/our motor vehicle bearing registration mark

…………………………………………………… to Shri/Smt………………………

…………………….son/wife/daughter of …………………………………… residing

at……………………………. (full address) and handed over the certificate of

registration and the certification of insurance to him/her/them.

I/We hereby declare that to the best of my/our knowledge the certificate of

registration of the vehicle has been/has not been suspended or cancelled.

I enclose the “No Objection Certificate’ Issued by the

registering authority.

**If the “No objection Certificate’ from the Registering Authority is

not enclosed, the transferor should file along with this application a

declaration as required under sub-section (1) of Section 50.

Signature to Transferor

Date ……………………..

Details of Suspension or Cancellation

**Strike out, whichever is inapplicable.

Part II for the use of Transferee

To

The Registering Authority

…………………………………

Name of the Transferee ………………………….

Son/Wife/daughter of………………………………

Full Address …………………………………………

(proof of address o be enclosed)

I hereby declare that I /we have on this ……………………….. day of the year

……………………………………………….. purchased the motor vehicle bearing

registration No……………………………… from………………………………………

……………………………………………………………………….. (name and full

address) and request that necessary entries regarding the transfer of ownership

of the vehicle in my/our name may be recorded in the certificate of

registration/certificate of fitness of the vehicle, which is enclosed.

The Certificate of insurance is also enclosed.

Signature of the Transferee

Specimen Signature of the Transferee

(1)

(2)

Consent of the Financier in the case of Motor vehicle subject to an agreement of

hire purchase/lease/hypothecation.

I/we being a party to an agreement of hire-purchase/lease/hypothecation in

respect of motor vehicle………………………………………………. give consent to

the transfer of ownership of the said vehicle to Shri/Smt/kumari

………………………………………. with whom I/We have entered into an

agreement of hire-purchase/lease/hypothecation.

Signature of the Financier

Date…………………………………..

OFFICE ENDORSEMENT

No…………………………Dated………………Office of the

…………………………………..

The transfer of ownership of vehicle has been recorded with effect

from…………… …………………………. on the registration certificate of the

vehicle………………………………………………………………………. and in the

registration record of this office.

Registering Authority

To

………………………………………………

(Name and address of the Financier)

By Registered post or delivered under proper acknowledgement.

Annexure 25

FORM 34

(See Rule 60)

Application for making an entry of an Agreement of hire purchase/lease/hypothecation subsequent to registration.

(To be made in duplicate and the duplicate copy with the endorsement of

the registering authority to be returned to the financier simultaneously on making

the entry in the Certificate of Registration)

To

The Registering Authority

…………………………………….

The motor vehicle bearing registration number ……………………….. is the subject of an agreement of hire-purchase/lease/hypothecation between …………………... ………………… the registered owner / person to be registered as owner and ………………………………………………………………

(fill the name and full address of the financier)

I/we request that an entry of the agreement be made in the Certificate of

registration and the relevant records in your office.

The Certificate of registration together with the fee is enclosed.

Dated………………………………………………..

Signature of the Registered

Owner

Dated …………………………………………..

Signature of the Financier.

*Strike out whichever is inapplicable

OFFICE ENDORSEMENT

Number ………………………… Dated ………… Office of the ……………………

The entry of the agreement of hire purchase/lease/hypothecation as

requested above is recorded in this office Registration Record in Form 24 and

Certificate or Registration on …………………………………………………….

Dated ……………………………………. Signature of the Registering

Authority.

To

…………………………………….

(Name and address of the Financier)

By Registered post or delivered under proper acknowledgment

Annexure 26

Form 35

(See rule 61(1)

Notice of Termination of an Agreement of Hire Purchase/Lease/Hypothecation

(To be made in duplicate and the duplicate copy with the endorsement of

the registered authority to be returned to the financier simultaneously on making

the entry in the certificate of registration).

To

The Registering Authority,

…………………………………….

We hereby declare that the agreement of hire purchase/lease/hypothecation entered into between us has been terminated. We therefore, request that the note endorsed in the Certificate of Registration of vehicle No…………………………………….. in respect of the said Agreement Between us, be cancelled.

That Certificate of Registration together with the fee is enclosed.

Date ……………………………… Signature of the Registered

Owner*

Date ………………………………. Signature of the

Financier

Strike out whichever is inapplicable

OFFICE ENDORSEMENT

Number …………………… Dated ………………… Office of the …………………

The Cancellation of the entry of an agreement as requested above is recorded in

this office registration record in Form 24 and Registration Certificate on

…………………… ………………….…………….. (Date)

Dated ……………………………………. Signature of the Registering

Authority

To

……………………………………..

(Name and address of the Financier)

By Registered Post or delivered under proper acknowledgement

Annexure 26A

EXTRACT OF RULE NO.55,60,61

55. Transfer of Ownership

(1) Where the ownership of a motor vehicle is transferred, the transferor shall

report the fact of transfer in Form 29 to the registering authorities

concerned in whose jurisdiction the transferor and the transferee resides

or has their place of business.

(2) An application for the transfer or ownership of a motor vehicle under

subclause (i) of clause (a) sub-section (1) of section 50 shall be made by

the transferee in Form 30 and shall be accompanied by

i. The Certificate or registration

ii. The Certificate of insurance, and

iii. Appropriate fee as specified in rule 81.

(3) An application for transfer of ownership of a motor vehicle under sub-

clause (ii)of clause (a) of sub-section (1) of section 50 shall be made by

the transferee in Form 30 and shall in addition to the documents and fee

referred to in sub-rule (2) be accompanied by one of the following

document namely.

b a no objection certificate granted by the registering authority under subsection

(3) of section 48.

c An order of the registering authority refusing to grant the no objection certificate

under sub-section(3) of section 48 or.

c Where the no objection certificate or the order as the case may be has not

been received, a declaration by the transferor that he has not received any such

communication together with

a. The receipt obtained from the registering authority under

subsection (2) of Section 48; or

b. The postal acknowledgement received from the registering

authority where the application for no objection certificate has been

sent by post.

60.Endorsement of his purchase agreements etc.

An application for making an entry of hire-purchase, lease or

hypothecation agreement in the certificate of registration of a motor

vehicle required under subsection (2) of Section 52 shall be made in Form

34 duly signed by the registered owner of the vehicle and the financier and

shall be accompanied by the certificate of registration and the appropriate

fee as specified in rule 81.

61.Termination of hire purchase agreements etc,

1. Application for making an entry of termination of agreement of hire

purchase, lease or hypothecation referred to in sub-section (3) of

Section 51 shall be made in Form 35 duly signed by the registered

owner of vehicle and the financier, and accompanied by the certificate

of registration and the appropriate fee as specified n rule 81.

2. This application for the issue of fresh certificate of registration under

subsection (5) of Section 51 shall be made in Form 36 and shall be

accompanied by a fee as specified in rule 81.

3. Where the registered owner has refused to deliver the certificate of

registration to the financier or has absconded then the registering

authority shall issue a notice to the registered owner of the vehicle in

form.37

Annexure 27

(DECLARATION REGARDING LEVYING OF PENAL INTEREST)

To

Indian Overseas Bank

………………………………………….. Branch

This forms an integral part of the document of

hypothecation/pledge/agreement/ ,,……………………………………. dated ……..

……….. executed by me/us.

In consideration of the Bank granting / agreeing to continue the credit

facility, the borrowers agree to undertake that he/she/they shall be liable to pay

additional interest at the rate of ………………………………………% or at the rate

specified by the Bank from time to time, over and above the normal interest on

the amount outstanding upon the happening of any of the following events, Viz.

1. When loans/ instalments are repaid on due dates.

2. When the account becomes irregular due to

a. Excess drawings over drawing power/sanctioned limit

b. Non-submission of stocks statement

c. Non-submission of quarterly/half-yearly financial date causing delay

in review of limits, consequently the limits expire and the advances

still continue.

3. Failure to honour specific borrowing covenants, inter-allia relating to

diversion of funds making other borrowing arrangements, taking up new

projects or large scale expansion merger etc.

4. Excess borrowings arising out of excess current assets as recommended

by Reserve Bank of India.

5. Non payment/Non-acceptance of demand/usance bills of exchange on

presentation/ due dates.

Place:

Date: Signature of borrower(s)

Annexure 28

PLACE

DATE

To

………………………………………………

………………………………………………

………………………………………………

Dear Sir/Madam,

OVERDRAFT IN YOUR SAVINGS BANK

ACCOUNT NO……………………………

We have to-day paid your Cheque No ……………………………………

dated …………………………… favouring ……………………………………………

for Rs……………………………………. (Rupees ……………………………………

…………………………………………………………………. only). By payment of

the above cheque, your account stands overdrawn to the extent of Rs.

………………………... (Rupees ……………………………………………………

only) kindly acknowledge and provide funds to clear the overdraft at an early

date.

Thanking and assuring you of our best attention always.

Yours faithfully

Manager/ Chief Manager

Annexure 29

EXTRACT OF RULE 12 OF THE NATIONAL SAVNGS CERTIFICATE (VIII ISSUE)

RULES, 1989

Rate 12

Pledging of certificate:

1. On an application being made in the prescribed form, by the transferor and

the transferee, the Postmaster of the office of registration may, at any time,

permit the transfer of any certificate as security to:

a. the President of India or Governor of a State in his official capacity.

b. the Reserve Bank of India or a scheduled bank, or a co-operative

society, including a co-operative bank;

c. a corporation or a Government company and.

d. a local authority

Provided that the transfer of a certificate purchased on behalf of a minor shall not

be permitted under this sub-rule unless the parent or the guardian of the minor

referred to in su-/clause (i) or, as the case may sub-clause (ii), of clause (b) of

section 5 of the Act certifies in writing that the minor is alive and the transfer is for

the benefit of the minor

2. When any certificate is transferred as security under sub-rule (i) the

postmaster of the office of the registration shall make the following

endorsement on the certificate namely.

Transferred as security to : ………………………………………

3. Except as otherwise provided in these rules, the transferee of a certificate

under this rule shall until it is re-transferred under sub-rule(4) be deemed to

be the holder of the certificate.

4. A Certificate transferred under sub-rule (2) may, on the written authority of the

pledgee, be retransferred with the previous sanction in writing of the

authorised Postmaster and when any such re-transfer is made, the

Postmaster of the Office of registration shall make the following endorsement

on the certificate; namely.

“Re-transferred to………………… ………………………………………

Note 1: A Gazetted Officer of the Government accepting the certificate as a

security under sub-rule (1) or releasing the pledge under sub-rule (4) on behalf of

the President or the Governor of a State, shall certify under his dated signature

and seal of office that he is duly authorised to executed such instruments or

deeds on behalf of the President of India or Governor of a State, giving the

particulars of the number and date of the notification of the government

authorising him in this behalf.

Note 2: An officer of the Reserve Bank of India or a scheduled bank or a Co-

operative society including a co-operative bank, a corporation or a Government

company or a local authority, as the case may be, accepting the certificate as

security under sub-rule(1) or releasing the pledge under sub-rule(4) on behalf of

the respective institution, shall certify under his dated signature and seal of office

that he is duly authorised under the articles of the said institution, to execute

such instruments or deeds on its behalf.

5. Where as a result of several endorsements made under sub-rules (2) and (4)

on a certificate, no space is left for making further endorsements of a like

character on the certificate, a fresh certificate may be issued by the

Postmaster of the office of the registration in lieu of such certificate.

6. A fresh certificate issued under sub-rule (5) shall be treated as equivalent to

the certificate in lieu of which it has been issued for all the purposes of these

rules.

Annexure 32

Indian Overseas Bank

Central Office: 763, Anna Salai,

Chennai: 600 002.

Place :

Date:

……………………………………

……………………………………

…………………………………..

(Exporter/Importer Customer)

CHANGES IN FORWARD CONTRACT

Ref : Our Forward Purchase Contract No. Dated:

Our Forward Sale contract No Dated:

We confirm, having made the following changes in the captioned contract, at

your request.

MARKED X DETAILS

Extension of Delivery period

Early Delivery

Cancellation

Substitution of Bills for TTs

Substitution of TTs for Bills

Changes in contract Usance

Others

After the changes the contract now stands as

FPC

No.

FSC

No.

Amount Payable Usance

DA/DP

Rate Rupee

Equivalent

Delivery

All other terms and conditions remain unchanged In agreement of the above

For Indian Overseas Bank for

Authorised signature (Exporter/Importer)

Sign Verified

For Indian Overseas Bank

(Name Sign.No) (Name Sign No.)

Assistant Manger

F258 B

Copy to :Foreign exchange Department, Central Office/FEDBZ, Bombay,

Attn: Merchant Contracts Section

This refers to your telephonic/telex message of …………………….(date) in reply

to out telephonic/telex massage of ……………………………………………. (date)

We confirm

i. having scrutinised the documentary evidence as indicated in the

contract and marking off about the changes in the contract in

the documentary evidence.

ii. that the changes in the contract has been made subject to the

provisions of Exchange control Manual & FEDAI rules.

iii. that we have diarised the 7th day of expiry of the delivery period.

We shall take up with you by telex/telegram for automatic cancellation on the 15th

day if we do not receive the application for extension/cancellation within 7days of

the expiry of the delivery period/extended delivery period.

We shall monitor the contract as per Exchange Control provisions/FEDAI

regulations.

For Indian Overseas Bank

(Name Sign No.) (Name Sign No.)

Authorised Signature

F258B

Annexure 33

PARTNERSHIP – LETTER OF AUTHORITY TO BE TAKEN FROM ALL THE PARTNERS TO SAVE LIMITATION-CREATION OF SECURITY

The Manager, Place:

India Overseas Bank Date:

…………………………………. Branch

Dear Sir,

Execution of Documents/creation of security

Notwithstanding anything to the contrary contained in the Partnership

Deed, we, 1)………………………………………… 2) ………………………………

3) ……………………………………………… and 4) ……………………………….

partners of M/s. ……………………………………………………………………… .

……………………………………………………………………………………………..

hereby place on record that each partner among us is authoriwsed to make

payment on behalf of the firm and sign periodical confirmation of balance/revival

letters. Such payment documents made or given by any one of us shall be

binding on all of us jointly and/or severally and shall save limitation against all of

us jointly and or severally for the purpose of Low of Limitation.

Any security of our firm including mortgage given by any one of us shall be

binding on the firm in which we are partners.

Yours faithfully

1.

2.

3.

4.

Annexure 34

NO-LIEN LETTER FROM BORROWER’S LANDLORD

From Place:

………………………………… Date:

………………………………….

………………………………….

(Name and address of Building Owner)

To

The Manager

Indian Overseas Bank

Dear Sir,

Credit facilities – A/c …………………your condition for

granting credit facilities to produce No lien letter

from the landlord-Goods and Machinery of your borrower kept

in my/our premises at ………………………………… (Address)

I am/we are aware of your Bank’s hypothecation rights on the goods and machinery kept in the above premises. I/we shall not exercise or assert any lien or right or priority over them at any point of time for any arrears of rent or money due to us from your borrower or guarantor and I/we shall not cause any hinderance or objection to your officials for entering the premises for the purpose of inspection, verification, taking possession or otherwise dealing with the said goods an machinery. The contents of this letter are irrevocable and it will bind my/our successors and assignees.

Yours faithfully,

Annexure 35

TO BE STAMPED AS AN AGREEMENT

(Letter to be obtained from the legal heirs of deceased borrowers)

Dear Sir,

You have granted a …………………………………………………………

(nature of facility)

loan of Rs. ……………………………………… to shri/smt

………………………… we regret to inform you that shri/smt

………………………………………………… died on ………………………… we

are the legal heirs of the deceased. We understand that you are proposing to file

a suit against un to recover the dues owed to you by the deceased. The balance

outstanding in the account is Rs………………………………….. as on. We

confirm the correctness of the balance. Please do not file a suit against us now.

In consideration of your forbearance to file a suit against us, we hereby

undertake to repay the entire dues owed by the deceased. We also undertake to

pay interest at the rate of ………………………………….. per annum on the

above said sum with……………….. …………………… rests. For any reason, if

the Bank recalls the amount from us, we shall pay the entire dues on demand

and we bind ourselves personally to pay the amount. The bank’s right over the

securities, if any, furnished by the deceased will not be prejudiced by this

undertaking.

Stamp

*Shri/Smt ……………………………………………….. who guaranteed the

loan advanced to the deceased has expressed his/her willingness to continue

his/her guarantee for our undertaking in consideration of the forbearance to sue

against us and him/her. He/she has put his/her signature along with us in token

of his/her consent or we shall provide you the guarantee of Shri/Smt

………………………… who has expressed his/her willingness to guarantee our

undertaking / promise.

Yours faithfully

1.

2.

3.

4.

* Delete the clause which is not applicable (legal heirs of the deceased borrower)

1.

2.

(Old Guarantor)

Annexure 36

LEGAL OPINION – TITLE REPORT – ANNEXURE

1. Name of the borrower :

2. Name of his/her father/husband :

3. Whether borrower is the owner of the

property, if not who is the owner and

what is his/her relationship to the borrower :

4. The status of the owner of

property-State individual , HUF, Firm

or Ltd, Company :

5. Description of Property :

Sl.No Extent Survey No Situated (please give Amount Boundaries

door/plot no. to tax /

name of street, Kist

village and Dist.

6. List of documents originally

produced-please also state

whether original/registration copy, photocopy etc. :

7. List of further documents called

for and verified before rendering opinion :

8. History of title based on documents

mentioned in Clause 6 and 7 :

9. In whose name the patta stands

in the name of the present owner

or predecessor in title? :

10.Details of encumbrances if any and if so,

how they are discharged (EC for minimum

of 13 yrs to be verified.) :

11.Whether any minor interest,

litigation, attachment charge

is involved in the property? :

12.Whether latest tax kist receipts

have been produced?

For how many preceding years

tax/kist receipt are produced :

13.Whether Chitta 10

(i) extract/Adangal verified? :

14. If property is building is the

plot in approved layout? :

15.Has the building been constructed

after approval of plan by relevant

authorities and assessed to tax? :

16. Is there any excess/vacant land

attracting provision of land

Ceiling Acts? :

17. Is the Property affected by

Urban Land Ceiling and Regulation

Act; if so, whether permission of relevant

authority been obtained for creating

encumbrance ? :

18. Is the title and possession of the

party to the property clear,

absolute and marketable and valid

mortgage by deposit of title deeds

could be created? :

19.The list of documents which

are to be deposited for creating

mortgage by deposit of title deeds. :

20.The list of additional documents like ‘Nil’ E.C. for

subsequent period/affidavit indemnity required

to be obtained by the bank :

21.Any other remark which the lawyer rendering title

deed opinion wishes to make :

22.Whether there is any indication or doubt to show

that the land belongs to government or it is under

ccquisition proceedings of the government? :

23. Is there any bar for mortgaging the lands as per

any local law?

Eg. Prohibition for offer of agricultural lands as

Security for borrowing outside the state or

Commercial/Non-agricultural borrowings:

* If space is insufficient provide the information by an addenda.

Annexure 37

DECLARATION IN RESPECT OF TERM LOAN/SMALL LOAN AVAILED

Place:

Date:

From

………………………………….

………………………………….

To

The Senior Manager/Manager

Indian Overseas Bank

………………………………………. Branch

Sir,

Reg : Term Loan/small Loan for Rs.

…………………………………

With reference to the deed of hypothecation (F.110- C F, 407) (Strike out

whichever is not applicable) executed by me/us on …………………………………

I/we hereby furnish full particulars of the assets purchased and acquired out of

the said loan and hypothecated to Bank under the said agreement. I/we hereby

irrevocably declare that this said letter is to be treated as part and parcel of the

said Deed of hypothecation.

SCHEDULE

Description/Details of Securities like Goods/Machinery covered by the

Agreement

Yours faithfully,

Borrower

Annexure 38

FORMAT OF UNDERTAKING LETTER TO BE TAKEN FROM BORROWER EVERY TIME WHEN PACKING CREDIT IS GRANTED IN FOREIGN CURRENCY BESIDES DOCUMENTS STIPULATED IN THE MANUAL OF DOCUMENTATION

(Borrower’s Name & Address)

From ………………………………………….. Place ………………………

………………………………………….. Date : ………………………

………………………………………….

To

Indian Overseas Bank

…………………………………….. Branch

Dear Sir,

PACKING CREDIT ADVANCE IN FOREIGN CURRENCY

I/We thank you for granting at my/our request packing credit

advance in Foreign currency …...…………………………………….)

…………………………………………) (figures)

(words) as permitted by RBI, instead of granting in Indian Rupees. We have

already executed the loan/security documents in connection with the packing

credit limit sanctioned in Indian Rupees. This letter is being addressed in

connection with certain related matters.

I/we agree to purchase the goods and materials out of the packing credit

advances and export the finished goods within 180 days from the date of

availment of the packing credit advance, and the advance will be adjusted out of

the export bill proceeds.

During the period of the loan (which shall be restricted to a maximum

period of 180 days) notwithstanding anything contained in the loan/security

documents executed by me/us, I/we agree to pay interest at the rate of 2% over

London Inter Bank Offered Rate (LIBOR) form the date of availment to the date

of Purchase/discount of export documents. If the export is not made within the

said stipulated time of 180 days for whatever reason, the packing credit advance

granted in foreign currency may be converted into Indian currency on any day at

the discretion of the bank at. TT Selling rate and interest will be charge at the

rate of 2% over and above the interest rate stipulated by RBI for the Export

Credit not otherwise specified category of advance on the Rupee equivalent of

the Principal Amount at TT Selling Rate arrived at as above, from the date of

granting the Foreign Currency Advance till the date of recovery, after adjustment

of any of interest already charged/recovered.

While discounting the export bill, relating to the export of the finished

goods, I/we also request the Bank to discount the bill in foreign currency instead

of Indian Rupees, as permitted by RBI and in such an eventuality of discounting

the export bill, in foreign currency, we request the Bank to credit the foreign

currency amount in my/our account after adjusting the packing credit advance.

If the export bill is drawn in any currency other that the currency of packing

credit the amount of currency of the bill required for complete adjustment of the

packing credit advance may be converted at cross rate prevailing on that day.

The balance bill proceeds may be released through my/our account and

as and when utilisation is required in Indian Rupees, the conversion may be done

at Banks Buying rates.

Thanking you,

Yours faithfully

Annexure 39

FORMAT OF THE LETTER TO BE TAKEN FROM BORROWER EVERY TIME WHEN DISCOUNTING BILLS IN FOREIGN CURRENCY BESIDES DOCUMENTS STIPULATED IN MANUAL ON DOCUMENTATION. THIS LETTER IS NOT REQUIRED IF THE BORROWER HAS AVAILED PACKING CREDIT ADVANCE IN FOREIGN CURRENCY AND EXECUTED THE REQUIRED UNDERTAKING LETTER FOR THAT PURPOSE

(Borrower’s Name & Address)

From …………………………………………

………………………………………… Place:

………………………………………… Date:

To

Indian Overseas Bank

……………………………………. Branch

Dear Sir,

REQUEST FOR DISCOUNTING BILL(S) IN FOREIGN CURRENCY BILL

NO…………..…………………DT………………FOR…………………DRAWN ON

…………………………………………………

PLEASE discount the above bill(s) and release the amount in the same

foreign currency through our account and as and when we require utilisation of

the amount in Indian Rupees, the conversion may be made at Bank’s Buying

rate.

Thanking you,

Yours faithfully,

Annexure 40

THE NOTICE TO BE SENT TO THE RAILWAYS/LORRY COMPANY

BY REGISTERED POST ACK. DUE

To

………………………………… Date.

…………………………………

…………………………………

Dear Sir,

Consignment of ………………………………..

RR No. ……………………. /LR No……………

Date of Booking ……………. Booked from ………………..To ……………………..

Name of the consignor ………………………………

Name of the consignee ………………………………

Loading of Claim U/s. 10 of the Carriers Act/under Section 78-B of the Railways Act.

We hereby lodge claim for loss/destruction/damage/deterioration/non delivery of the above goods at the place of destination.

FURTHER DETA

Place pay the full value of the goods/damaged goods,

Yours faithfully,

…………………………….

Copy to: ……………………… (Party Name & Address) – By Regd. Post Ack. Due

We have served this notice since the claim is to be lodged within six

months as per the statutory provisions. We have done this without any obligation

FURTHER DETAILS, IF ANY

on our part to do so and without prejudice to our right of recovery of the dues

from you. Please have further correspondence with the Railways/Public Carrier.

Annexure 41

NOTE

This Agreement provides for priority of Mortgage and Realisation of

Security and Sharing of Sale Proceeds

(To be stamped as an agreement)

INTERSE AGREEMENT

Memorandum of Articles made this ……………………………………… day

of ………………………… 20 between Indian Overseas Bank, a body corporate

constituted under the Banking Companies (Acquisition and Transfer of

Undertakings) Act 1970 and having its Head Office at 763, Anna Salai, Chennai

and Branch Office at …………………………………………… hereinafter called

the ‘bank’ (which expression shall include its successors and assigns) of the one

part and Khadi and Village Industries/Khadi and Village Industries Board a

Corporation constituted by the Khadi and Village Industries Commission having

its office at …………………………………… hereinafter collectively or severally

called ‘KVIC (which expression shall include its successors and assigns) on the

other part .

WHEREAS……………………………………………………………. Ltd.

(name of the borrower) hereinafter called the ‘Borrower’ (which expression shall

include its successors and assigns) has been granted loan by the Bank and

KVIC. To secure the said loan the Borrower has created an equitable mortgage

in respect of its properties situated at……………………………………..

(Description of the property) in favour of the KVIC on ………………………………

in favour of Bank on ……………… …………………………………. OR created in

favour of KVIC on …………………… ………………………… and subsequently

extended in favour of the Bank on …………………………………….. (hereinafter

called the mortgage) to secure the loan granted by the Bank and KVIC.

WHEREAS it has been decided between the Bank and KVIC that the

mortgage created in favour of the Bank shall take precedence over the mortgage

created in favour of KVIC.

AND WHEREAS the parties are desirous of recording the arrangement as

aforesaid by agreeing to execute this agreement in the manner hereinafter

appearing.

Now therefore, this agreement witnesseth and its is hereby agreed by and

between the parties hereto as to follows;-

In consideration of the aforesaid, the Bank and KVIC at their sole

and absolute discretion permit the borrower to avail various limits not exceeding

the amoung as shown against their names:-

Bank Maximum Limit Rs.

KVIC Maximum Limit Rs.

The title deeds and documents relating to and in respect of the property

deposited by the Borrower as aforesaid shall be held by and remain in the

custody of KVIC or Bank for the mutual benefits of each of them and shall be

made available to each other whenever required against accountable receipt.

It is agreed between the parties hereto that all the rights, powers,

privileges and remedies available to the Bank and KVIC under the said mortgage

shall remain in force and will be available to the Bank and KVIC in respect of

advances made by them to the borrowers.

Unless otherwise agreed to in writing between the Bank, KVIC and the

Borrower, no prepayment of the said advances shall be made by the Borrower in

favour one of them without repaying proportionately the amount of advances due

to bank and KVIC.

Notwithstanding the time of creation of the mortgage in favour of the Bank

and KVIC it is agreed between the parties hereto that for all purposes it will be

treated that the mortgage in favour of the Bank shall rank in priority to the

mortgage created in favour of KVIC. It is further agreed between the parties that

on enforcement and realisation of the security, the proceeds will be first utilised

for the liquidation of various loans, interest, costs, charges and expenses due to

the Bank and the remaining amount shall be utilised for the liquidation of loans,

interest, costs and expenses due to KVIC. The balance if any shall be payable to

other creditors i.e., KVIC to the borrower. Until such application the monies

realised by any of the prates or any receiver appointed by them shall be held by it

or by such receiver on trust for the said Bank/KVIC in accordance with their

respective rights hereunder.

The Bank and KVIC shall keep the other advised of all matters affecting

these presents and particularly each of them shall prior to taking any action or

other steps for enforcement of its security consult other and the parties shall co-

operate with one another in respect of all matter so far as the same is practicable

without affecting their own respective rights and each of them shall at all times

keep the other informed of all serious and important matters coming to their

knowledge relating to the mortgaged property or any part, portion thereof. If at

any time in the course of enforcement security any of the parties decides to

appoint the receiver it may in exercise of the power reserved therefor, shall

appoint such receiver after consultation with the other.

Each of the parties shall not without the consent of other agree to any

modification of the terms of the advances and shall not without like consent

grant time or any indulgence to the Borrower after the security, has become

enforceable or being enforced by any of the parties.

The parties hereto shall be at liberty to take any additional security for the

aforesaid limit or any part thereof and no such security in whole or part shall be

released either by the Bank or by KVIC, without obtaining the concurrence of the

other. Such as action shall not affect prejudicially the operation of this agreement

or the rights and remedies of the Bank or KVIC. The Bank and KVIC shall

endeavour to have the benefit on any such additional security extended to each

other. The parties hereto agree that all acts, deeds and things done in

accordance with this agreement, by them or either of them undertakes to ratify

and confirm all and whatsoever the other has done. The parties shall not be

liable to each other for any act, deed or thing done or committed to be done in

good faith under the said mortgage created by the borrower in favour of the

parties.

IN WITNESS whereof the parties hereto have executed this agreement

the day and the year first herein above written.

Signed by the Bank )

by its consituted attorney ) (1)

Signed and sealed by KVIC by its ) (1)

duly authorised representatives ) (2)

Annexure 42

INDEMNTIY

- to be stamped as Indemnity

of Rs.40/- in Tamil Nadu;

- to be executed only at the branch.

For creation of equitable mortgage by

deposit of certified copies of the title - to be certified by branch official

as mentioned below, if the

executant does not know English.

- Delete the inapplicable portion.

I ……………………………. S/o D/o W/o ……………………….

aged………………… years residing at ……………………………….. hereby

execute this indemnity in favour of Indian Overseas Bank, a body corporate

having one of its branches at ………………………….. ………………………..

among other places (hereinafter called ‘BANK’)

I am the owner of the house / agriculture / landed * property situated at

………………… (details of survey No., door No. location and description may

be given)

The said original document is lost / destroyed and could not be traced inspite

of best efforts to locate it.

* I got title to the property by virtue of registered document No. ………………….

dt. ……………… executed by Sri / Smt. ………… ………………………… in

favour of Sri / Smt ………………………… / myself.

* I got title to the property by virtue of registered partition deed dt. ………… (Doc.

Registration No ……………… ) executed in between Sri / Smt.

…………………… and myself.

The said original Partition Deed is not available when come since it was handed

over to Sri ……………………………………. and the partition deed was not drawn

in sets also. I am having only certified copy of the partition deed.

I have informed this fact to the Bank and also requested to accept certified copy

of the said document as Title Deed for the purpose of creating equitable

mortgage as security for the credit facility extended to me / guaranteed by me. I

assure that the said original document is not deposited with any person or

creditor or bank or financial institutors for the purpose of creating equitable

mortgage or any sort of encumbrance on my said property. In consideration of

the Bank permitting me to deposit the certified copy of the said title deed, based

on my statement, I hereby agree to indemnify the Bank always from and against

all claims, demands, loss, damage, cost, charges and expenses, which may be

incurred or sustained by the bank or likely to be incurred of sustained by the bank

in consequence of such an acceptance of certified copy of the said title deed for

the purpose of creating the equitable mortgage.

Executed at …………………… on this ……………… day of …………… 200….

EXCUTANT

The contents were translated and explained to the Executant in vernacular

language, who signed in my presence after understanding the contents.

Signature of Official

(Name, Destination & Roll No.)

Annexure 43

LETTER OF UNDETAKING

(VIDYA JYOTHI SCHEME)

Place:

Date :

To

Indian Overseas Bank

………………………………………….

………………………………………….

………………………………………….

Dear Sir,

With reference to the Vidya Jyothi study loan sanctioned by the bank for the study of Mrs./Mr./Miss ………………………………………………………… notwithstanding the amount of loan mentioned in the loan documents for the entire course, we the borrower(s) and guarantor(s) hereby state that the bank need not release the next stage of the loan, if there is any default in the repayment of the instalments relating to the previous stage of the loan.

Yours faithfully,

Borrower(s) Guarantor(s)

Annexure 44

(To be stamped as an agreement………………………………………….)

Industrial Development Bank of Indian

Bills Rediscounting Department

New India Centre

17, Cooperage,

Mumbai-400 039.

Dear Sirs,

IDBI Bills Rediscounting Scheme

WHEREAS

1. We are an approved

institution under the Bills

Rediscounting Scheme

(hereinafter referred to as “the

Scheme” operated by you,

Industrial Development Bank of

India (hereinafter referred to as

“IDBI”), and accordingly we are

eligible for rediscounting, facilities

in respect of bills of exchange

and promissory notes arising

from sales of indigenous

machinery and discounted by us

(hereinafter for facility of

reference called “the bills”): for

this purpose, IDBI has been

granting to us limits from time to

time for rediscounting of the bills

by any of our offices.

2. The Scheme requires us to

present the bills at an office of

IDBI for rediscounting and to take

back delivery of such bills,

against payment three working

days before the range dates of

their maturity.

3. With a view to streamlining

the procedure, IDBI has now

proposed to relax the present

requirement of lodgment of the

bills with it and permit us, as an

approved Institution, to hold the

bills with us as agent of IDBI and

that, on a declaration made by us

that we hold, on behalf of IDBI as

its agent, the bills duly endorsed

by us in favour of IDBI. IDBI will

pay to us the discounted value of

the bills and that further, we will

retire the bills by making payment

thereof to IDBI, three working

days before the date of their

maturity.

NOW THIS AGREEMENT

WITHNESSES THAT IN

CONSIDERATION OF

INDUSTRIAL DEVELOPMENT

BANK OF INDIA having agreed

to sanction us limits from time to

time, for rediscounting of bills and

in pursuance thereof, to

rediscount the bills tendered by

us, and also in consideration of

IDBI agreeing to relax the

requirements of the Scheme that

we should present the bills for

rediscounting and retire them

before maturity, we hereby

undertake to and agree with IDBI,

as follows:

i) We shall, instead of

presenting the bills to IDBI,

as presently required

under the Scheme,

endorse them in favour of

IDBI an retain them with

us on behalf of IDBI as its

agent. In regard to such

bills, we shall furnish to

IDBI, a declaration in a

form and manner

approved by IDBI, that we

hold the bills of particular

aggregate face value on

behalf of IDBI as its agent.

On receipt of such a

declaration, IDBI may, but

without any obligation on

its part so to do, arrange to

make payment to us, of

the discounted value of the

bills covered by such

declaration.

ii) We shall pay to

IDBI, not less three

working days before the

respective dates of

maturity of bills, an amount

equal to the face value of

such bills and then, acting

as agent of IDBI, re-

endorse the bills back in

our favour.

iii) The other

conditions laid down in the

Scheme shall be binding

on us.

iv) We further agree

that we shall forward to

IDBI, other supporting

documents certificates,

declarations as hitherto

and also furnish such

other information that may

be required by its, for the

purpose of rediscounting

the bills under the

Scheme.

v) We enable IDBI to

obtain loans and advances

from the Reserve Bank of

India (RBI) against the

security of such bills, we

shall, if so required by

IDBI, make a declaration

to RBI to the effect that we

shall thereafter hold the

bills on account of RBI.

vi) We shall submit to

IDBI and RBI such

statements as may be

required by them, from

time to time, in respect of

such bills.

vii) IDBI shall be

entitled to inspect, through

any of its authorised

officials, the bills

rediscounted by us with

IDBI under the Scheme

and the relative books of

account and other papers.

RBI shall also have a

similar right of inspection

in respect of bills held by

us on its account as

aforesaid.

viii) We shall forward to

IDBI and RBI such of the

bills covered by our

declarations as they may

require form time to time.

ix) We hereby further

agree and undertake that

we shall indemnify IDBI in

respect of any loss or

damage that may be

suffered by it on account

of its paying to us (on the

strength of our declaration

in terms of clause (1)

herein), the discounted

value of the bills, which

may not be eligible for

rediscounting under the

Scheme or which may

subsequently be found

defective or invalid for any

reason whatsoever.

Yours faithfully,

For…………………………Bank,

Annexure 45

Application to be submitted by discounting bank while availing of

rediscounting facilities covering sales of Imported machinery by

authorised selling agent/distributor* (when bills/pronotes are

physically lodged/not physically lodged*.

To

The Deputy General Manager/Manager,

Industrial Development Bank of India,

Bills Rediscounting Department.

Dear Sir,

We refer the IDBI letter

No……………………………… dated

………………. sanctioning a limit of

Rs…………… for rediscounting

facilities in respect of bills/promissory

notes of industrial concerns.

2.‘We forward

herewith……………………………

bills/ promissory notes (as listed in

Annexure) which may be

rediscounted*. We hereby apply for

rediscounting of …………

…………………………. bills/

promissory notes (as listed in

Annexure), for an aggregate sum of

Rs…………………………………

under the scheme of the IDBI, vide

Circular letter No.6358/OP/ 15/64-65

dated the March, 10, 1965 as

modified from time to time.

3.We hereby certify that the

aforesaid bills/promissory notes

arose out of bonafide commercial

or trade transaction(s) relating to

imported machinery/equipment

manufactured by

……………………………@ and

soid by……………………… on

deferred payment basis and have

been

drawn/made/accepted/endorsed

by an industrial concern as

defined under Section 2(c) of the

Industrial Development Bank of

India Act. 1964.

We further certify

that………………………….

have made full payment to the

manufacturer for the

machinery prior to the

discounting of bills/promissory

notes. We also hereby certify

that

………………………………

are financially sound, solvent

and creditworthy and as such,

their signature(s) appearing

on the said bills of

exchange/promissory notes

is/are genuine and good

signature(s). We have

satisfied ourselves that the

machinery covered by the

bills/promissory notes has

been despatched by the

selling agent to the purchaser

before lodging the

bills/promotes with us for

discounting. We also certify

that having discounted for the

full amount thereof we have

full title to the said

bills/promissory notes.

4.We further certify that the bill of

exchange promissory notes

arising out of the said

transaction(s) have been duly

stamped and property executed

and the same have been properly

endorsed in favour of IDBI by the

authorised official(s) of our bank.

5.We hereby declare that as

authorised by you we hold on

your behalf as your agent the

afore said bills/promissory notes

till they are refried.

6.We request that the amount of

bills/promissory notes (less

discount) may be paid to us by

cheque drawn on the Reserve

Bank of India for credit to our

account.

yours faithfully,

(Signature of authorised official)

Give number of bills/promotes.

@ Give name of manufacture.

Give name of authorised selling

agent distributor of imported

machinery

* Omit which is not available.

Annexure 46

Application to be submitted by discounting bank while availing of

rediscounting facilities covering sales by manufacturer/seller

(When bills / pronotes are physically lodged / not physically lodged)

To

The Deputy General Manager

Industrial Development Bank of India

Bills Rediscounting Department

Dear Sir,

We refer to IDBI letter

no……………………………… dated

…………………… sanctioning a limit

of Rs. …………… for rediscounting

facilities in respect of bills/promissory

notes of industrial concerns.

1. We forward herewith …………

…………………………. bills /

promissory notes (as listed in

Annexure) which may be

rediscounted. *We hereby

apply for rediscounting of

………………………………….

bills/promissory notes (as

listed in Annexure ) for an

aggregate sum of

Rs………………………………

…………. under the Scheme

of the IDBI vide Circular letter

No. 6358/OP.15/64-65 dated

the March 10, 1965, as

modified from time to time.

2. We hereby certify that the

aforesaid bills/promissory

notes arose out of bonfide

commercial or trade

transactions(s) relating to sale

of indigestions machinery /

equipment by …… …………$

on deferred payment basis

have been drawn / made /

accepted/endorsed by an

Industrial concern as defined

under Section 2 (c) of the

industrial Development bank

of India Act, 1964. We also

hereby certify that $

………………………………….

are financially sound, solvent

and creditworthy and as such,

their signature(s) appearing

on the said bills of

exchange/promissory notes

is/or genuine and good

signature(s). We have

satisfied ourselves that the

machinery covered by the

bills/promissory notes has

been despatched by the

manufacturer-seller to the

purchaser before lodging the

bills/pronotes with us for

discounting. We also certify

that having discounted for the

full amount thereof we have

full title to the said

bills/promissory notes.

3. We further certify that the bills

of exchange/promissory notes

arising out of the said

transaction(s) have been duly

stamped and properly

executed and the same have

been properly endorsed in

favour of IDBI by the

authorised official(s) of our

bank.

4. We hereby declare that as

authorised by you, we hold on

your behalf as your agent the

aforesaid bills/promissory

notes till they are retired.

5. We request that the amount of

bills/ promissory notes (less

discount) may be paid to us

by cheques drawn on the

Reserve bank of India for

credit to our account,.

Your faithfully,

(Signature of authorised official)

Give number of bill/promotes

Give name of manufacturer –seller

Omit which is not applicable

Annexure 47

Application to be submitted by discounting bank while availing of rediscounting facilities covering sales by authorised selling agent/distributor*.

(when bills / promotes are physically lodge* / not physically* lodged

To

The Deputy General Manager

Industrial Development Bank of India

Bills Rediscounting Department

Dear Sir,

We refer to IDBI letter no ………

dated ………… sanctioning a limit of

Rs. …………………… for

rediscounting facilities in respect of

bill/promissory notes of industrial

concerns,

2.‘We forward herewith

…………………………………

…….X bills/promissory notes

(as listed in Annexure) which

may be rediscounted. ‘We

hereby apply for rediscounting

of………………………………

X bills/ promissory notes (as

listed in Annexure) for an

aggregate sum of Rs.

…………… under the Scheme

of the IDBI vide Circular letter

no.6358 / OP .15 /64-65 dated

the March 10,1965 as

modified from time to time.

3. We hereby certify that the

aforesaid bills/promissory

notes arose out of bonafide

commercial or trade

transactions(s) relating to sale

of Indigenous machinery/

equipment manufactured by

…………………………………

and sold by ………………… .

on deferred payment basis

have been drawn / made /

accepted / endorsed by and

Industrial concern as defined

under Section.2 (c) of the

Industrial Development bank

of India Act. 1964. We further

certify that ……………………

have made full payment to the

manufacturer for the

machinery. We also hereby

certify that …………… are

financially sound, solvent and

creditworthy and as such,

their signature(s) appearing

on the said bills of exchange/

promissory notes is / or

genuine and good

signature(s). We have

satisfied ourselves that the

machinery covered by the

bills/promissory notes has

been despatched by the

manufacturer sellor to the

purchaser before lodging the

bills/promotes with us for

discounting. We also certify

that having discounted for the

full amount thereof we have

full title to the said

bills/promissory notes.

4. We further certify that the bills

of exchange/ promissory

notes arising out of the said

transaction(s) have been duly

stamped and properly

executed and the same have

been properly endorsed in

favour of IDBI by the

authorised official(s) of our

Bank.

5. We hereby declare that as

authorised by you we hold on

your behalf as your agent the

aforesaid bills/ promissory

notes till they are returned.

6. We request that the amount of

bills/promissory notes (less

discount) may be paid to us

by cheques drawn on the

Reserve Bank of Indian for

credit to our account.

Yours faithfully

(Signature of authorised official)

Give number of bills/promotes

Give name of design engineering

concert

Omit which is not applicable

Annexure 48

Application to be submitted by discounting bank while availing of rediscounting facilities covering sales by design engineering concern

(When bills/promotes are physically lodged / not physically* lodged)

To

The Deputy General Manager

Industrial Development Bank of India

Bills Rediscounting Department

Dear Sir,

We refer to IDBI letter no …… dated

……………… sanctioning a limit of

Rs. ……… for rediscounting

facilities in respect of bills/promissory

notes of industrial concerns.

2.We forward herewith

……………………….. bills/

promissory notes (as listd in

Annexure) which may be

rediscounted. We hereby apply

for rediscounting of …………..

bills/promissory notes (as listed in

Annexure) for an aggregate sum

of Rs.

………………………………………

……… under the Scheme of the

IDBI vide Circular letter

No.6358/OP. 15/64-65 dated the

March 10, 1965, as modified from

time to time.

3.We hereby certify that the

aforesaid bills/promissory notes

arose out of bonafide commercial or

trade transitions(s) relating to

indigenous machinery/ equipment

and sold by ……………………..X

and on deferred payment basis have

been drawn/made/accepted/

endorsed by an Industrial concern as

defined under Section 2. (c)of the

Industrial Development bank of India

Act.1964. We further certify that the

machinery was got manufactured

according to and specifications of

……………… ……………$ the

payee of the bills/ promissory notes

under their supervision and sold

under their own name with their own

guarantees. We also hereby certify

that $

…………………………………………

are financially sound, solvent and

creditworthy and as such, their

signature(s) appearing on the said

bills of exchange/promissory notes

is/or genuine and good signature(s).

We have satisfied ourselves that the

machinery covered by the

bills/promissory notes has been

despatched to the purchaser before

lodging the bills/promotes with us for

discounting. We also certify that

having discounted for the full amount

thereof we have full title to the said

bills/promissory notes.

4.We further certify that the

bills of exchange/promissory

notes arising out of the said

transaction(s) have been duly

stamped and properly

executed and the same have

been properly endorsed in

favour of IDBI by the

authorised official(s) of our

bank before discounting them.

5.We hereby declare that as

authorised by you, we hold on

your behalf as your agent the

aforesaid bills/promissory

notes till they are retired.

6.We request that the amount

of bills/ promissory notes(less

discount) may be paid to us

by chequs drawn on the

Reserve Bank of India for

credit to our account.

Yours faithfully

(Signature of authorised official)

Give number of bill/promotes

Give name of manufacturer

Give name of authorised selling agent/distributor

Omit which is not applicable

Annexure 49

Letter to be addressed by the Bank to industrial concern conveying

sanction of financial assistance under the Mahila Udyam Nidhi Scheme.

Madam,

Financial assistance under

Mahila Udyam Nidhi Scheme

Please refer the your letter No

……………………………….. dated

requesting for financial assistance

under the captioned scheme. The

Small Industries Development Bank

of India (SIDBI) is agreeable to

sanction soft seed capital assistance

in the form of loan of

Rs……………… (Rupees …………

…………………….. only) (hereinafter

referred to as “the Soft Loan”) to you/

yours company (hereinafter referred

to as “the Borrower”) under the said

scheme through us ………………

…………… (hereinafter referred to

as “bank) acting as agent of SIDBI,

on the following terms and

conditions:-

1. The Borrower shall repay the

Soft Loan in half

yearly/quarterly instalments of

Rs……………………. each

commencing from ……………

2. The Borrower shall pay

nominal interest on the Soft

Loan outstanding from time to

time at the rate of 1% (one

per cent)per annum, payable

annually, the first of such

payments being payable on

………………

3. In the event of default in the

payment of instalments of the

Soft Loan interest, or any post

ponement thereof allowed by

SIDBI/Bank, such

instalment(s) and arrears of

interest unless otherwise

agreed by SIDBI, shall carry

interest at a rate which shall

not exceed the rate of interest

applicable to normal loans

lent and advanced by SIDBI

at the time of such default or

postponement.

4. All the terms and conditions

including any restrictive

conditions on the Borrower

applicable to the term loan(s)

sanctioned by the Bank for

the project unless specifically

excluded by SIDBI, shall,

mutatis mutandis, apply to

the Soft Loan.

5. The Borrower shall furnish-

reports / information to SIDBI,

Bank periodically at such

intervals and in such form as

may be required.

6. In the event of the Borrower

committing any breach of the

terms and conditions

contained in this letter or any

of the terms and conditions

subject to which financial

assistance has been

sanctioned by the Bank, the

Soft Loan together with

interest computed at the rate

applicable to the normal loans

of SIDBI and other moneys

shall become due and

payable forthwith and SIDBI/

Bank shall be free to invoke

such remedies as are

available to it to recover the

said amounts from the

Borrower.

7. The rights and powers

reserved to SIDBI under this

letter shall be exercised either

by itself or by the Bank. The

powers so exercised either by

itself or by the Bank. The

powers so exercised by the

Bank shall be deemed to have

been exercised as agent of

SIDBI and shall be binding on

the Borrower and accordingly

the Borrower shall be bound

to comply with such

instructions as may be given

by the Bank from time to time

in pursuance of and in

connection with the Soft Loan.

If the above terms and

conditions are acceptable to

you, you are required to return

the duplicate of this letter duly

signed by the person

authorised in this behalf in

token of your acceptance.

Yours faithfully

(Authorised signatory)

The Original of this letter has been received and this duplicate is being

returned duly signed indicating acceptance of the terms and conditions

therein.

For

(Name of the Firm)

1.

2.

3.

I have perused the original Letter of Sanction No. …………………………

dated ………………. and the terms and conditions stipulated in respect of

the Soft Loan are acceptable to me.

For

(Sole Proprietor)

NOTES:

1. The acceptance of duplicate letter would constitute an agreement between

the industrial concern and SIDBI. It should, therefore, be got stamped as

an agreement before it is signed by the authorised person signifying

acceptance on behalf of the Borrower.

2. If the industrial concern is a Company, the letter of sanction should be

placed before and accepted at a meeting of the Company’s Board of

Directors and resolution passed to that effect.

3. If the industrial concern is a partnership firm, the letter of sanction should

be accepted by all the partners for the time being of the firm or by any or

more of them, who has/have been duly authorised in that behalf.

4. If the industrial concern is a sole proprietary concern, the letter of sanction

should be signed by the sole proprietor herself or if accepted by any other

person, necessary power of attorney enabling her to borrow money on

behalf of the concern and also to accept the terms of the borrowings,

should be obtained in original.

Annexure 50

Draft of the resolution to be passed by the Board of Directors of the

Borrower concerns accepting the terms and conditions of the letter

of sanction.

RESOLVED THAT the company do borrow from SIDBI a Soft Loan of Rs.

……………………………….. (Rupees ………………………….……………………

…………………………. only) under the Mahila Udyam Nidhi Scheme of SIDBI.

RESOLVED FURTHER THAT the offer and the terms and conditions contained

in the letter of sanction No ……………………………….. dated

…………………….. received by the Company from the ………………………….

Bank acting as agent of SIDBI (a copy of which duly initialed by the Chairman of

the meeting for the purpose of identification has been placed on the table ) be

and the same are hereby accepted and that Shri

…………………………………………………………………………………

Chairman / Director be and is hereby authorised to convey to SIDBI / Bank, the

acceptance on behalf of the Company of the said offer of Soft Loan on the said

terms and conditions and also execute all deeds, instruments, agreements,

undertakings and other writings in favour of SIDBI / Bank and to do all things that

may be incidental or necessary for the purpose of availing of the said assistance.

CERTIFIED TO BE TRUE

Director / Secretary

Annexure 51

LETTER TO BE OBTAINED FROM THE BORROWER

- Introduction of Loan System for Delivery of Bank Credit

- To be stamped as an Agreement.

- To be kept with Loan Documents.

- To be countersigned by all the guarantors or separate

letters should be obtained from them.

Place :

Date :

To

Indian Overseas Bank

…………………………… Branch

Dear Sir,

Reduction of Funded Working Capital

facility and granting of Demand Loan as per RBI directives.

We confirm that we are availing presently the following fund based working capital limits from your bank:

………………………………..

Limits

Cash Credit ::

Bills ::

Total :: --------------------------

--------------------------

As per RBI directives, please carve out Rs. ………….. out of the said limits and

grant it by way of demand loan renewable on annual basis, against the security

of Current asset / machinery as you may stipulate for which we shall execute

necessary loan / security documents from time to time.

The revised allocation of limits shall be as under :

Limits

Cash Credit ::

Bills ::

Demand Loan(s) ::

We undertake to file modification of charge with ROC for the reduction of the

limits and also to file fresh charge for the demand loan (s) within time.

We agree that your bank should have the right to recall the working capital credit

facilities including the said demand loan(s), if the bank considers that our

performance is not satisfactory or we have used the amount of working capital

facilities for purposes other than the working capital requirements or for any other

reason as may be considered necessary in the discretion of the bank.

We undertake to furnish you, the concurrence of the guarantors for this

rearrangement of the credit facility either by counter signing this letter or by

giving separate consent letter.

Thanking you,

Yours faithfully

Authorised Signatory. Guarantor(s)

Annexure 52

NOTE If guarantors are not countersigning the borrower’s

letter, a separate letter addressed to the branch should

be obtained from each guarantor.

Place :

Date :

To

Indian Overseas Bank

………….……………..

Sub : Credit facilities extended under my personal guarantee to M/s.

Reduction of funded working capital facility and granting of demand

loan as per RBI directives.

I hereby give my consent for rearrangement of the working capital facilities

granted to the above borrower within the limit guaranteed by me and I confirm

the continuance of my guarantee.

Yours faithfully

(Guarantor)

Annexure 53

Note to Branch

(1) Please fill up blanks

(2) Please append enclosure containing

details of sharing pattern among

banks.

To

The Borrower Date

Dear Sir,

Delivery of working capital from the Bank

In the form of Demand Loan and Cash Credit

As you may be aware, Reserve Bank of India in the recent credit policy

has mandated that in all cases where borrowers enjoy fund based working

capital facilities of Rs. 20 crores and above from the banking system,a maximum

of 75% of it should be made available in the form of Cash credit / Bills and

Cheque Purchase limits.

Refer:

2. Presently, the following fund based working capital limits are made

available to you by consortium banks (Working capital fiancé made

available to you under the consortium arrangement led by us )

Nature of Working Capital facility Limit

Cash Credit Hypothecation Limit Rs. …………..

The above facilities are governed by several agreements executed by

your Company and your guarantors in favour of the bank or jointly with the bank

and / or others. In terms of the instructions of RBI, a part of the facilities is to be

made available to you in the form of short term loan called “working capital

demand loan” (WCDL) out of the Cash Credit facility now made available to you,

as epr details set out hereunder (Rs. in lacs)

3. Nature of Working Capital facility Limit

i. Cash Credit Component ………………

j. Working Capital Demand Loan ……………..

…………….

Total

…………….

The details of the sharing pattern for the above said facility are given the

Annexure.

4. The terms on which the WCDL would be made available to you are as follows:

(a) Except as provided in the agreements executed for the Cash Credit

facilities, the loan will be repayable on a specific date, one year from the

date of debit to the WCDL account, in one lumpsum bullet payment. In

terms of the conditions governing the Cash Credit facility, the WCDL is

repayable on demand and as such the Bank reserves the right to recall

the loan as provided for in the agreements executed for the Cash Credit

facility, inter alia if the performance of your unit is not satisfactory or where

your company is found to have used the amount for purposes other than

for which the loan is sanctioned or for any other reasons considered

necessary. In case you repay th loan either in whole or in part, before the

date on which the repayment is due such repayment will be subject to

cancellation of the limit.

(b) If you do not repay the loan on the due date, and desire that we continue

the facility after the due date, we may consider, at our option, renewal of

the loan or fresh sanction thereof with an enhancement in the limit as the

case may be, on due request therefore from you prior to the due date, you

request in this regard shall be a part of the application for the renewal of

the overall working capital finance made available to you.

(c) If the loan is not repaid on the due date or renewed before the due date, it

would be considered as a irregular advance, and penal interest would eb

charged thereon and the bank may at its discretion call up the entire cash

credit facility including the WCDL.

(d) The interest charged on WCDL will be same as applicable to the Cash

Credit facility on the dates interest becomes due on the loan. It will be

recovered by debit to your Cash Credit account.

(e) Debits in the loan will be as follows:

(i) First debit to the account will be by transfer of outstandings in

the fund based working capital limits less amounts apportioned

to the revised CC/Bills facilities, shown in para 3 above.

(ii) Subsequent debits will be for an aggregate amount equal to the

balance available under the loan limit. These debits will be

limited to maximum of two in number and will be subject to your

need for finance to that extent being established to our

satisfaction.

5. The securities as charged / created for the Cash Credit facilities

mentioned in para 2 above, and the guarantees furnished therefore would

continue to be applicable to the loan and the loan so given will continue to

form a part of the Cash Credit facility, and all the terms and conditions

under the agreements executed for the cash credit facility would continue

to govern the loan except to the extent indicated hereinabove.

6. Please return the enclosed copy of this letter duly signed by your company

and the guarantors to the advances mentioned in para 2 above, in token

of your having accepted the above arrangement.

ACCEPTED THE ABOVE ARRANGEMENT

Yours faithfully

MANAGER

ANNEXURE TO BANK’S LETTER TO BORROWER

(Rs. in Lacs)

BANKS

Existing

Working

Capital

Limit

Revised Cash

Credit Component

(CCC)

(75%)

Working

Capital

Demand Loan

(WCDL)

(25%)

Annexure 54

SPECIMEN LETTER TO BORROWERS

(Under Certificate of Posting)

To Date :

………………………………………………

………………………………………………

………………………………………………

Dear Sir / Madam

Ref

Your Account No. ………………

We have to advice that consequent on the revision of interest rate effected by RBI / Bank, it has been decided to modify the interest rate applicable on the credit facilities granted to you, Accordingly, with effect from ………………… interest on your above mentioned account would stand revised and charged @ …………. % p.a. in terms of the agreement executed by you. If there is default in repayment, overdue interest shall be charged @ …………… % p.a.

Thanking You

Yours faithfully

………………..

Branch Manager

Annexure 55

SPECIMEN LETTER TO GUARANTORS

(UNDER CERTIFICATE OF POSTING)

ToDate

……………………………………….

……………………………………….

……………………………………….

Dear Sir / Madam

Ref : Loan Account No. ……………………… Of Shri / Smt/. M/s. …………………

We have to advise that consequent on the revision of interest rate effected

by RBI / Bank, it has been decided to modify the interest rate applicable on the

credit facilities guaranteed by you. Accordingly, with effect from

……………………. Interest on your above mentioned account would stand

revised and charged @ ……………….. % p.m. in terms of the agreement

executed by you. If there is default in repayment, overdue interest shall be

charged @ ………………….. % p.a.

Thanking You,

Yours faithfully,

………………………….

Branch Manager

Annexure 56

Draft of the letter to be obtained from the borrower in order to create a separate sublimit out of the Cash Credit Limit by way of” Import Cash Credit Account.”

Letter to be taken as one time measure from all CC parties, who are likely to avail the CC facility for import of goods at any point of time to be obtained in duplicate, one for correspondence file and one for Documentation file.

Place :

Date :

To

Indian Overseas Bank

……………………………..

Dear Sir,

Cash Credit Facility Extended to us by the Bank

As per the RBI directives to levy interest rate surcharge on the credit for import, we request you to release the credit for our imports as and when required by us, out of our regular cash credit limit through non-operative “Import Cash Credit Account”. We also agree to pay interest rate, surcharge calculated @ 25% on the interest charged in our cash credit account, besides the interest applicable for the cash credit facility. The security by us for the cash credit facility shall continue to be available for the outstanding under such releases since they would be released only out of the cash credit limit extended to us.

Thanking you

Yours faithfully

………………

(Borrower)

Annexure 57

Draft of the letter to be obtained from the CC parties as and

when creating separates sub limit out of the CC limit for

meeting import obligation – to be obtained in duplicate, one

for the correspondence file and one for documentation file.

Place :

Date :

To

Indian Overseas Bank

…………………………………….

Dear Sir,

Requested for Finance for import out of our CC Limit.

Bill No. …………………….. dt. …………………………………. Drawn by …………………………………………. Letter of Credit No ………………………. Dt. …………………….. favouring ………………………………………………………

We request you to pay Rs. ……………………….. (Rupees ………………………… ……………………………………… only ) to meet our liability under the above bill(s) / LC out of the cash credit limit sanctioned to us and keep our liability in non-operative Cash Credit Account from the sales realisation and adjust the accounts We are also aware that, as per RBI directives, no credit will be permitted in the non-operative account before the expiry of a minimum period of one month from the date of the drawal. We also agree to pay interest rate surcharge for the said outstanding calculated 25% on the interest charge in our CC account, besides the interest applicable for the CC facility

Thanking You

Yours faithfully

……………………………..

(Borrower)

Annexure 58

VALUATION REPORT ON IMMOVABLE PROPERTIES

Ref : Date :

Pursuant to the request from ……………………………………………………

the property at …………………………………………………………………………..

which is owned by ………………………………………………………………………

was inspected on ………………………………………………………………………

for the purpose of assessing the present market value.

The following documents were produced before me for scrutiny.

1.

2.

Based upon the actual observations and also the particulars provided to

me, detailed valuation report has been prepared and furnished in the following

Annexure I & II.

After giving careful consideration to the various important factors like the

specification, present condition, age, future life, replacement cost, depreciation,

potential for marketability etc. I am of the opinion that :

(1) the Fair market value of the property is Rs.

(2) the Open market value of the property is Rs.

(3) the Forced sale value of the property is Rs.

(4) the Comparable sale value of the property is Rs.

(as per sale analysis method)

It is declared that,

(i) I have inspected the property on ………………………… in the presence of

the owner of the property Shri / Smt. ……………………………..

(ii) I have no direct or indirect interest in the property valued.

(iii) Further the information and other details given above / in the annexure are

true to the best of my knowledge and belief.

Station :

Date : Signature of value with Seal

DESCRIPTION OF THE PROPERTY

1. Purpose for which this valuation is made :

2. Name of the owner and his / her address :

3. Location of the property :

S.F.No. / T.S.No. :

Village / Block :

Taluk / Ward :

District / Municipality :

4. Boundaries of the property :

North :

South :

East :

West :

Total extent of the site :

5. Postal address of the property :

6. Class of Construction :

7. Proximity of civic amenties :

8. E.B. Service Connection details :

9. Property Tax paid details :

10. Legal Encumbrances, if any :

(searches and investigations made

if any) :

11. Characteristics of the locality (Give details)

12.Whether the property falls under

“Land Ceiling Act : provisions

13. Tenure of Land : Free hold / lease hold :

14. If Leasehold, state unexpired period of lease :

15. Occupancy details, self occupation or rental :

16. If rented, whether standard rent has been fixed

under Rent Control Act and if so, full details :

17. Whether the property can be taken possession of by

the Bank in case of need, without any litigation

18. Any other details, which affects our charge on the

property as security

19.Whether the property is mortgaged as security for

any other advance with any other Bank / third party

PART – I

FORMAT FOR VALUATION OF

VACANT RSIDENTIAL PLOT / COMMERCIAL SITE / LAND

1. Name of the Owner :

2. Present Address :

3. Document referred :

4. Location of site

(Sketch / plant enclosed) :

Plot No. / Nagar / layout :

S.F.No/T.S. No :

Village / Block :

Taluk / Ward :

District / Municipality :

5. Site Dimension North :

South :

East :

West :

6. Total extent of the site :

7. Valuation

a) Fair Market Value : Rs.

b) Open Market Value : Rs.

c) Forced / Distress Sale value : Rs.

d) Comparable Sale Value : Rs.

Photograph of the site covering the boundaries enclosed.

Plinth Area Details

Floor Year of Construction Roof Pinth Area

sq.ft.

G.F.

F.F.

Detailed Description:

A. General Information :

1. Type of Construction :

2. Quality of Construction :

3. Appearance of the building :

4. No. of floors :

5. Maintenance of the building :

6. Water supply arrangements :

7. Drainage arrangements :

8. Whether the building is

constructed as per plan approved

by the competent authority :

9. Tenancy details, occupancy :

10. Rent yield per month :

B. Valuation of G.F. Construction

1. Specification : Foundation :

Superstructure :

Roof :

Joinery :

Floor Finish :

2. Total Plinth area : sq.ft.

3. Year of Construction :

4. Age of the building : Years

5. Total life of the building estimated : Years

6.Depreciation percentage assumed

(assumed salvage value as ……….%) : %

7. Replacement rate of construction with

the existing conditions and specifications : Rs.

8. Replacement Value : Rs. sq.ft

9. Depreciation value at the rate of ……..>% : Rs. (II) B

10. Estimated present value of G.Floor : Rs.

C. First Floor Construction :

1. Specification :

Floor :

Superstructure :

Roof :

Joinery :

Weathering course :

2. Total plinth area :

3. Year of construction :

4. Age of the building :

5. Total life estimated :

6. Depreciation percentage assumed : %

7. Replacement rate of construction

with the existing condition and

specification :

8. Replacement value : Rs.

9. Depreciation value : Rs.

10. Estimated value after depreciation :

D. Replacement, depreciation and net value II C

Description Repl. Value Depreciation Net value

GF

FF

Total

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

Rs.

PART – III – EXTRA ITEMS

1. Portico (with hand rails) : Rs.

2. Ornamental front door : Rs.

3. Sitout / verandah with steel grills : Rs.

4. Open staircase : Rs.

5. Staircase headroom : Rs.

6. Overhead water tank : Rs.

7. Extra steel grills / collapsible gates : Rs.

8. Side dadoos, etc. : Rs.

Less : Depreciation : Rs.

Net Value ……………………….

……………………….

PART IV – AMENITIES

1. Wardrobes / showcases / False

Ceiling works : Rs.

2. Ceramic tiles in Toilet & Kitchen : Rs.

3. Extra sinks/bath tub /geycer/wash

Basins / etc : Rs.

4.Marble flooring/ceramic tiles flooring or any

5. Interior decorations / wall paneling works : Rs.

6. Architectural elevation works : Rs.

7. Aluminium doors / windows /hand rails : Rs.

8. Airconditioners / Exhaust fans : Rs.

9. Pelmets : Rs.

10. Suncontrol Films, etc : Rs.

Total : Rs.

Less depreciation : Rs.

PART V. MISCELLANEOUS (VALUE AFTER DEPRECIATION)

1. Separate toiled room : Rs.

2. Separate lumber room : Rs.

3. Separate water tank/Sump : Rs.

4. Trees, Gardening : ……………………….

Total : Rs.

………………………

PART VI-SERVICES

1. Water Supply arrangements : Rs.

2. Drainage arrangements : Rs.

3. Compound wall : Rs.

4. E.B. Deposits, fittings, etc : Rs.

5. Pavement : Rs.

6. Steel gate : Rs.

………………………………..

Total : Rs

…………………………………

PART – VII

a) Abstract Valuation : (Fair Market Value)

1. Plot (Part-.I) : Rs.

2. Building (Part – II) : Rs.

3. Extra Items (Part – III) : Rs.

4. Amenities (Part-IV) : Rs.

5. Miscellaneous (Part-V) : Rs.

6. Service (Part-V) : Rs.

7. Add : Potential value, if any: Rs.

……………………………

Total : Rs

……………………………..

b) Open Market Price : Rs.

c) Forced Sale Value : Rs.

d) Comparable Sale value : Rs.

Photographs of the property (Interior/Exterior) enclosed.

FAIR MARKET VALUE – DEFINITION

The term “Fair Market Value” as used herein, is defined as being the

amount, in terms of money, at which the property would exchange in the current

real estate market, allowing a reasonable time to find a purchaser, as between a

willing buyer and a willing seller, both having reasonable knowledge of al relevant

fact, and with equity to both.

This definition assumes that any transaction that may occur will be for

cash or its equivalent consideration. The terms of sale, whether favourable or

unfavorable, would undoubtedly influence the price of the property if it were

offered for sale in the open market. It is further assumed that title to the property

is good and marketable and that it would be transferable without unreasonable

restrictions.

OPEN MARKET VALUE – DEFINITION

The term “Open Market Value” is defined as in tended to mean the best

price at which the sale of an interest in property might reasonably expected to

have been completed unconditionally for cash consideration on the date of

valuation, assuming a willing-seller with no account taken of any additional bid,

by a purchaser with a “special interest”. The valuation further assumes that prior

to the date of valuation there had been a reasonable period for the proper

marketing of the interest for the agreement of price and terms and for the

completion of the sale, and that the state of the market, level of values and other

circumstance were, or any earlier assumed date of exchange of contracts, the

same as on the date of valuation.

Annexure 59

GENERAL POWER OF ATTORNEY

‘C’

(Applicable for Housing Loan to NRI

customers To be given by NRI to an

Indian citizen resident in India)

KNOW ALL MEN BY THESE

PRESENTS THAT

I/Mr. Miss./Mrs………………………

………………….……………………..

S/o D/oW/o ……………………………

aged ……………………… years, a

Non-Resident Indian now residing at

………………………………………..

hereby nominate, constitute and

appoint ………………………………

Son Daughter/ Wife of ………………

…………. residing

at……………………………. as my

Attorney in my name and on my

behalf to do or execute all or any of

the acts, deeds and things

hereinafter mentioned that is to say;

WHEREAS, I, intend availing

loan from Indian Overseas bank

…………………...……………………

branch (hereinafter called “Bank” for

constructing/acquiring a house/flat at

………………………… (location).

AND WHEREAS I am not in a

position to executed the loan

document, and create mortgage in

person in favour of Indian Overseas

Bank and it has been considered

insentient and necessary for me to

appoint and Attorney for availing the

loan for IOB and to deal with the

bank I all respects.

Now by this Deed for Power

of Attorney, I hereby appoint ……

…………………….…………… Son.

Daughter/Wife of …………..…………

……… as my attorney and expressly

authorize to exercise the thereof in

my name and o my behalf to do all

or an of the towing acts and things.

1. To apply for loan’s under the

housing schemes of INDIAN

OVERSEAS BANK (IOB) as

also any further or additional

loan’s to IOB for such amount

as the Attorney may deem fit

and for that purpose to pay

the processing fee/s and sign

the loan application/s in my

name and on my behalf and

to furnish all the details and

information required by IOB

and to give any statement

letter, (To be attested by

Notary Public to be stamped

as General Poser of Attorney

if it is executed on plain paper

and it can be stamped by the

stamp authorities in Indian

within three months from the

date of receipt In India).

Clarification or any other

writing required or necessary

for availing of the said loan/s

from IOB and from time to

time of follow up the said loan

application/s and do such

other things and deeds as

may be necessary in relation

thereto.

2. To accept the loan offer

letter/s and sign the

acceptance/s thereof in token

of my acceptance of the terms

and conditions therein

contained and to pay on my

behalf the necessary lees if

any and other charges

leviable in respect of the said

loans.

3. To request IOB or agree with

IOB for any change or

modification in the loan

amount/s rate/s of interest,

period of repayment of loan/s

or any other terms and

conditions in relation to the

loans at any time of from time

to time.

4. To receive the disbursement

of the said loan/s and for that

purpose give effectual

discharge and given all the

necessary information and

documents to assist the

Technical and Legal Appraisal

of the properties purchased/to

be purchased with the help of

the loan/s

5. To mortgage any property/ies

he/she may book purchase on

my behalf or which I might

have booked/purchased

whether with or without IOB’s

financial assistance with IOB

by deposit of Title deeds as

security for the repayment of

the loan/s granted/to be

granted by IOB to me.

6. To deposit on my behalf the

documents of title and to state

on my behalf to any officer of

IOB that the said documents

are being deposited for

creating a security on the said

property/ies by way of

equitable mortgage of

repayment of the said loan/s.

the Attorney’s fully authorized

to make these statements and

convey my intentions to

create security on my

property/ies or any other

property/ies he/she may

book/buy on my behalf.

7. He/she is further authorized to

make any other statements

necessary to create equitable

mortgage by deposit or little

deeds and also to execute

any writings, undertakings,

indemnities, etc on my behalf

in respect of mortgage of the

said property/ies or the

guaranteeing of the

repayment of the said loan/s

any other writings whatsoever

required in respect of the said

transactions of the loan/s

granted/to be granted to me

or creation of the said

security.

8. He/she is also authorized to

executed any loan

agreement/s promissory note,

letter/s of declaration and

indemnity or such other

documents as may be

required by IOB in respect of

the said loan/s.

9. He/she is also authorized to

execute in favour of IOB an

irrevocable power of attorney

authorizing IOB to execute in

its own favour or in fovour of

any other person, as IOB in its

sole discretion may decide,

legal mortgage in any form

including in the English from

of the property/ies.

10.To acknowledge my liability

debit in respect of the loan/s.

11.To book a flat/s residential

unit/s on my behalf and to

execute Agreement/s for sale

for the same with any builder

seller and make payments to

him therefore and to present

such Agreement/s for

registration before the

appropriate Register/Sub-

Registrar of Assurance or

any other authority at any

place or places in India as

may be necessary.

12.To admit execution of the

Agreements/s for Sales

before the said Registrar/Sub-

Registrar of Assurance or any

other authority as may be

required for the purpose.

13.To obtain possession of the

fiat/unit/s and when the same

is ready for occupation.

14.To receive loan/s and all other

documents including title

documents on my behalf from

IOB and executed receipt/s

thereof.

15.To sign form, documents and

papers required for the

purpose or registration of Co-

operative Housing Society or

a Limited company or an

Association of Apartment

Owners and become member

thereof participating in all the

meetings and proceedings in

all the meetings and

proceedings form time to time,

obtain share certificates

and/or other document issued

in my name and hold the

same as my attorney and

obtain possession of the flat/s.

16.To open and or operate Bank

Account in any Bank in India

in my name both resident as

well as nonresident. The

account may be operated in

Indian Currency of foreign

currency to be remitted by me

from time to time.

17.The Attorney is authorized to

do all such acts deeds and

things including signing any

papas documents as are

necessary and incidental to

the above and that any act or

statement or writing of my

said Attorney in pursuance

hereto shall be deemed to be

fully authorized and ratified by me.

Dated at……………………………… this the …………………….. day of

………………. 20 …………………

Signature

Address:

…………………………………..

………………………………….

………………………………….

…………………………………

Annexure 60

Note : 1. To be stamped as General POA

2. Common seal should be affixed

POWER OF ATTORNEY TO COLLECT LEASE RENTALS/HIRE PURCHASE

INSTALMENTS

THIS power of Attorney

executed as …………………………

………………………………………….

On this …………………….. day of …

……………………………… a Limited

Company having registered Office at

represented by Mr. …………………

……………… (hereinafter called the

“Appointers”, which term shall

include their successors and

assigns) in favour of Indian

Overseas Bank, a body corporate

constituted under the Banking

companies (Acquisition & Transfer of

Undertakings) Act, 1970 having

Central Office at 763, Anna Salai,

Chennai – 2 and amongst other

places having Branch office of

(hereinafter called the “Attorneys”

which terms shall include their

successors and assigns)

WHEREAS the Appointers

have hypothecated in favour of the

Attorneys all the equipments/

Machineries let by the Attorneys on

his purchase/lease agreements

together with the book debts,

outstanding and claims as security

for the credit facilities availed from

the Attorneys.

AND WHEREAS in

accordance with the terms of

sanction letter(s) the Appointers

have agreed to irrevocable constitute

and appoint the Bank to be their true

and lawful. Attorney to do and

execute for in the name and on

behalf of them all or any of the

following acts, deeds and things l.e.

to say:

1. To ask, demand, Sue fir

recovery or receive off and

from all and every person

sums of money, debts, dues,

effects and things which shall

or may become due or owing

or payable to or recoverable

by the Appointers under or in

connection with the hire

purchase/lease agreements

entered into by the Appointers

with its lessees/hirer and to

compound and settled all

accounts relating thereto and

give effectual receipts release

and discharges thereof.

2. To appoint any counsel,

lawyer or solicitor or agent to

conduct prosecute or defend

in Court or outside court or

before any authority or officer

any claim and actions by or

against the Attorneys may

consider fit of proper to

compromise any disputes,

claims and actions or refer

them to arbitration and to take

proceedings for filling in

courts any compromise any

disputes, claims and actions

or refer them to arbitration

and to take proceedings for

filling in Courts any

compromise or award of for

execution and realizing sums

and for the purposes

aforesaid or any of them to

sign on behalf of the

Appointers and any or all

partitions, deeds or

documents as may be

necessary and also to

generally to act in relation to

the above as fully and

effectually in all respects as

the Appointers could do.

3. The appointers hereby ratify

and confirm all the acts, thing,

deeds, performed or to be

performed by the Attorneys or

its nominees or its substitutes

in pursuance of any of the

aforesaid powers and the

powers hereby conferred shall

not be determined or effected

by the fact of the Appointers

acting personally or through

another parson.

4. The powers shall subsist in

favour of the Attorneys till all

the dues of Appointers to the

Attorneys are to be satisfied.

5. The powers under this Power

of Attorney may be exercised

by the Attorneys in its sale

discretion but the exercise of

the powers is not obligatory of

the Attorneys.

6. The Appointers hereby

declare and affirm that they

have not here before created

nor shall they in future create

any Power of Attorney in

respect of hire purchase/lease

contract in favour of any

person or bank and that the

monies, bills and dues

payable to and recoverable by

them now or in future are free

from any prior charge, lien,

attachment or encumbrances

or any kind.

7. To execute and sign all such

deeds and generally due to do

all lawful acts necessary for

the above mentioned

purposes and acts.

APPOINTERS

The common seal of ……………

……………………………. Ltd.

has hereunto been affixed on the

day and year hereinabove written

in the presence of

In pursuance of the Resolution of

the Resolution of the Board of

Directors dated …………………

Annexure 61

UNDERTAKING LETTER TO BE OBTAINED FROM THE LESSEE

From Place:

Date:

To

Indian overseas Bank

………………………………….. Branch

Dear Sirs,

Power of Attorney issued by …………………………………………………… in

your favour for receiving the lease rentals from us.

We refer to the Power of Attorney dt…………………………………. Given

by………….. ……….. in you favour to collect the lease rentals from us pertaining

to the ………………………………….. machinery/assets taken by us on lease. We

have noted the authorization given in your favour to receiver the lease rentals

from us by the lessor and accordingly we undertake to remit the lease rentals to

you directly.

Thanking you,

Yours faithfully,

Annexure 62

FORMAT OF TRIPARTITE AGREEEMENT TO BE EXEUCTED BETWEEN

THE LESSOR, THE LESSEE AND THE BANK

This Agreement between (1) name

of the borrower- leasing company,

(hereinafter referred to as the

“Lessor” which expression shall,

unless repugnant to the context or

meaning thereof, be deemed to

include its successors and permitted

assigns) of the FIRST PART, (2)

name of the Lessee company

(hereinafter referred to as the

“Lessees”. Which expression shall,

unless repugnant to the context or

meaning thereof be deemed to

include its successors and permitted

assigns) of the SECONDPART, and

(3) Indian Overseas bank, a body

corporate constituted Under the

Banking companies (Acquisition and

Transfer of Undertakings) Act 1970

(5 to 1970) having its Central Office

at 736, Anna Salai, Chennai – 600

002 or a branch office, amongst

other places at …………………….

………………… (hereinafter referred

to as the “bank”, Which expression

shall, Unless repugnant to the

context or meaning thereof be

deemed to include its successor and

permitted assigns) of the THIRD

PART.

WHEREAS:

A. The Bank has sanctioned to

the Lessor a credit facility by

way of cash Credit

9hereinafter referred to as the

“said Facility” to the extent of

Rs…………………… (Rupees

…………………………… only)

against the security of

hypothecation deeds dated …

……………. execute by the

Lessor in favour of the Bank

(hereinafter referred to as “the

said hypothecation deeds”)

B. The lessor is engaged in the

business of giving on lease/

hire purchase machineries/

articles/equipment to various

parties.

C. In the course of such

leasing business, the Lessor

has given on lease to the

Lessee, the Machineries/

articles / equipment

(hereinafter referred to as the

said equipment”)

hypothecated to the Bank

mentioned in the schedule

hereunder as per the terms of

lease deed dated ……………

……………………….. a copy

of which initialed by the lessor

and the Lessee is annexed

herewith (and which is here in

after referred to as the “said

lease deed”)

D. It has been considered

expedient and necessary that

the Bank be appointed as the

Attorney of the Lessor to

collect the rent and other

amounts realizable under the

lease deed so that it would be

convenient for both ban and

the lessor for adjusting the

amount towards the dues of

the Lessor under the said

facility or any other money

owner by the lessor to the

Bank.

E. In consideration of the said

facility agreed to be provided

by the Bank, the Lessee has

also agreed and undertaking

to deposit the lease rentals

payable under and in

accordance with the said

lease deed directly into the

account of the Lessor with the

Bank.

F. The parities therefore being

desirous of reducing their

agreements between

themselves into writing, have

entered into this agreement in

the manner hereinafter

provided.

NOW, THEREFORE, in

consideration of the Bank, having

agreed to make available the said

facility to the Lessor, the lessor

and the Lessee hereby

irrevocably undertake to and

agree with the Bank as follows;

1. The Lessor hereby

irrevocably appoints

the bank as its lawful

attorney and expressly

authorizes in exercise

of the following and

expressly authorize in

exercise f the following

powers but without

prejudice to the

generality thereof in the

name of the lessor and

on behalf of the Lessor

to do all or any of the

following acts and

thing, namely: to

demand, collect,

recover, receive and

give effectual

benefited, discharge or

rents, claims, dam age

and all amounts

payable to the Lessor

under the said lease

deed by the Lessee.

The Bank shall have

further power (through

not obligatory) to take

and use all lawful

proceedings and

means of recovering

and receiving the lease

rentals, claims and

damages and all

amount and to

commence and/or file

and to prosecute and

defend all action, suits,

claims demands and

disputes and refer to

arbitration and to adjust

and settled and to

compromise all actions,

suits and demands and

to do and execute such

papers, documents or

things as shall be

deemed necessary of

expedient, and all and

whatsoever the Bank

shall do or cause to be

done by virtue of this

agreement or in

exercise of these

powers, the Lessor

hereby agrees to ratify

and confirm and this

power of attorney shall

not be revoked without

the written consent of

the bank.

2. The Lessee hereby

confirm that the

machinery/articles/equi

pment taken by it on

lease are hypothecated

to the Bank, and the

Lessee is fully aware of

the right if the right of

the Bank under the

said hypothecation

deed. The Lessee shall

not have any objection

for inspection of the

said equipment of for

taking possession of

the machineries/

articles by the Bank in

the exercise of its

powers under the said

hypothecation deed.

The Lessee hereby

undertakes and agrees

to maintain the said

machineries/articles/eq

uipment in good

condition and in

working order without

committing any act of

waste, hampering the

age of the said

equipment and to hold

the same in trust for

the Bank. The Lessee

shall, at all times,

during the currency of

this agreement, keep

the machineries/

equipment / articles

insured against fire and

such other risks as

may be required by law

to the full extent of their

value thereof with the

insurance company

approved by the Bank

in the joint names of

the Lessor, Lessee and

Bank, with a Bank or a

Mortgage clause and

the Policies shall

forthwith be handed

over to the Bank.

3. The Lessee hereby

acknowledges the

appointment of the

Bank as the irrevocable

agent of the Lessor for

receiving the rent and

other amounts payable

by the Lessee under

the said lease deed

and the Lessee hereby

assures and

undertakes to remit

regularly the rent and

other amounts payable

by it under the said

lease deed directly to

the Bank to the credit

of the Lessor’s account

and such payments

shall be a good

discharge against the

Lessor as if the

amounts were paid to

the Lessor directly.

4. The Lessee shall not at

any time, have any

right, and if there is any

such right, the Lessee

hereby expressly

Walves in favour of the

Bank, of setoff,

counter-claim,

recommend and/or

adjustments against

the lessor, the said

equipment and the

lease rentals payable

in respect of the lease

of the equipment. Until

all amount due to the

Bank shall have been

fully paid and

discharged by the

Lessor.

5. The Lessee also

hereby declares that in

the event of any breach

of the said lease deed

by the lessess thereto,

the Bank shall be

entitled to take

possession of the said

equipment and to

exercise all other rights

of the Lessor under the

said lease deed and in

that event, physical

custody by the Lessee

of the said equipment

shall be deemed to be

in trust on behalf of the

Bank shall be free to

deal with the said

equipment in such

manner as it may deem

appropriate.

SCHEDULE OF MACHINERIES /

EQUIPMENT ARTICULES

(DETAILS)

IN WITHNESS WHEREOF, the

parties have set their hands and

seals at the respective places and

dates indicated below. The original

for the records of the Bank and a

only each for the parties of the other

parts.

Annexure 63

APPLIACTION FOR REQUESTING INDIAN OVERSEAS BANK TO ARRANGE

FOR ISSUING BANK GUARANTEE THROUGH COMMERCIAL BANK OF

SYRIA OR ANY FOREIGN BANK

1. Name of the Bank making the request

to IOB for issuing bank guarantee

through commercial Bank of Syria/

Foreign Bank. :

2. Name of the party, whose performance/

obligation is to be guaranteed :

3. Beneficiary’s Name :

4. Amount of LG :

5. Validity Period :

6. Last date for receiving claim by commercial

Bank of Syria/ Foreign Bank :

7. Format in which the LG is to be

issued : Quote

Unquote:

We request IOB to arrange through commercial bank of Syria/Foreign

bank to issue the above bank guarantee in the said format or as may be

amended by commercial Bank of Syria/Foreign Bank at our sole risk for the

benefit of our constituent and we shall keep IOB fully indemnified against any

loss, damage, Cost, charges and expenses with regard to issuance of the said

bank guarantee and we shall pay the amount required by IOB immediately

without any demur on demand received from IOB which should be made by IOB

against us within three months from the date of receipt of the clam from

commercial Bank of Syria/Foreign Bank.

For…………………………………………….. Bank

Authorised Signatory

Annexure 64

DECLARATION-CUM-INDEMNITY

(in case of individual) 1. I. …………………….. of Mumbai, Indian

Inhabitant, residing at………………… do herby

solemnly declare and say as follows:

(in case of Company) I …………………………. Of Mumbai,

Indian Inhabitant (s), residing

at…………… do hereby solemnly

declare and say as follows:

(in case of company ) 1. I am the Managing Director/Director of

Limited (hereinafter called “the company”) a

company registered under the companies Act,

1955 and having its registered office at

…………………………………..

OR

(in case of a firm) I, of Mumbai Indian inhabitant do

hereby solemnly declare and say as

follows:

1. I am a partner of the firm name and style of

M/s …………………………………. (hereinafter

called “the firm”) a partnership firm registered

under the provisions of the Indian Partnership

Act 1932 and having its principal place of

business at……………

2. I say that……………………………………….

Bank (hereinafter called the said Bank) has

issued tome/to the company/to the firm, a

foreign inward remittance certificate dated

……………… bearing serial No………………..

in terms of the provisions of the foreign

Exchange Requisition Act. 2000, in respect of

the foreign inward remittance of ……………….

(Rupees equivalent………………….) paid to

be/the company/ the firm, on the …………. Day

of …………. 20 ………………. (the aforesaid

inward remittance certificate is hereinafter

called “the said certificate)

3. I say that the said certificate has been

lost/misplaced by me/by the company by the

firm, and/I the company the firm have not been

able to retrieve the said certificate despite

diligent effort made in that behalf.

4. I say that the said certificate has been

loss/misplaced by me/by the company/by the

firm, and/I the company/ the firm have not been

able to retrieve the said certificate despite

diligent effort made in that behalf.

5. I say that the said Bank has agreed to issue to

us a duplicate of the said certificate to replace

the original which has been lost/misplace as

aforesaid.

6. I hereby agree and undertake/ the company

hereby agrees and undertakes/me firm hereby

agrees and undertake that in the event that the

said certificate is retrieved/found by me/the

company/ the firm, the same shall be forthwith

returned to the bank.

7. Is pursuance of the above and in consideration

of the said Bank agreement to issue to us a

duplicate of the said certificate which has been

lost and/or misplaced by me/the company/the

firm as aforesaid. I hereby indemnify/the

company/the firm hereby indemnifies, keeps)

safe, harmless and indemnified. The said bank,

in respect of and/or arising out of the said

certificate, the duplicate of the said certificate

of any misuse whatsoever thereof as also

against all suit, proceeding, or actions which

any governmental/ semi-governmental /

statutory or other body or authority or any

person or person may take against the said

bank in respect of and or arising out of the said

certificate of the duplicate of the said Bank in

respect of and/or arising out of the said

certificate or the duplicate of the certificate

agreed to be issued by the Bank and also from

and against all costs, charges and expenses

which and said bank may incur or be put to as

a result of such suits, proceedings or actions

as also from and against all losses and

damages which the said Bank may suffer or be

put to it respect of and/or arising out of the said

certificate or the duplicate thereof issued by the

said Bank. I hereby confirm that the

declarations and statements contained

hereinabove are absolutely true. I am making

this declaration-cum-indemnity knowing fully

well that on the faith and strength hereof, the

said bank has agreed to issue to me/the

company/ the firm, a duplicate of the said

certificate.

Solemnly declared at Mumbai )

By the with in named )

In the presence of …………. )

Before me

Dated this day of 20

By me us / and shall continue to be binding not withstanding any changes which

may from time to time take place in the partners or constitution of my / our firm or

in the partners or constitution of the principal.

6. And I / we further agree that nay entries which may be in your Banking

books kept ]

7. by you and made in the ordinary course of banking business may be

adduced by you and shall be conclusive evidence against me / us or any or

either of us and my / our or any or our representatives or representative or

the representatives of representative of any or either of us of the various

transactions therein contained and of the amounts from time to time hereby

appearing due from the principal to you and shall not be disputed or

questioned by me / us or any or either of us or my / our or any or our

representatives or representative or the representatives of representative of

any or either of us.

8. And I / we further agree that the amount hereby guaranteed shall be due

and payable to you on demand after notice requiring payment of the same

shall have been delivered or sent through the post by registered letter

addressed to me / us at my / our representative’s last known place / places

of abode or business in…………………………..

9. The guarantee shall bind my / our representative heirs, executors and

administrators and shall be enforceable by you and your assigns.

10. And it is further agreed and declared that this guarantee shall be a

continuing guarantee irrespective of any sum or sums which may be paid

into the account of the principal at any time during the continuance of the

guarantee and shall remain in force until cancelled by my / our written

authority, the amount then due to be subject to this guarantee and secured

thereby.

11. And I / we hereby expressly declare that this guarantee and the powers

and provisions herein contained are in addition to and not by way of

limitation of or substitution for any former or other guarantees or guarantee

heretofore given to you by me / us (whether jointly with some other persons

or alone) and now existing un-cancelled and that this guarantee is not

intended to and shall not revoke or limit such other guarantee or

guarantees.

12. It is also agreed that any admission or acknowledgement in writing by the

principal debtor of the amount of indebtedness of the principal debtor in

relation to the subject matter of this guarantee or any judgement or award

which may be obtained by you against the principal by debtor shall be

binding on me / us and I / we accept the correctness of any statement of

accounts served on the principal debtor which is duly certified by any

Manager or Officer of the Bank, and shall be binding and conclusive as

against me / us also, and I / we further agree that in making an

acknowledgement or making a payment he shall be treated as my / our duly

authorized agent for purpose of Indian Limitation Act of 1963.

Place.………….

Date……………

…………………………

Annexure 92

GUARANTEE FOR CASH CREDITS, ETC

To

Indian Overseas Bank

……………..

Gentlemen,

1. I / we in consideration of your

agreeing at my / our request to

give……………. Of …………….

(hereinafter referred to as “the

principal”) time for repayment of

his / their dues to the bank upto

this date and further for

continuing to make loans or

advances or otherwise giving

credit to him / them whether by

advancing him / them monies or

by allowing him / them to

overdraw his / their account or

by granting to him / them an

advance by way of cash credit

or otherwise, I / we the

undersigned…………………

jointly and severally guarantee

the payment upto but not

exceeding in the aggregate the

sum of ………………… of

converted Rupee Term Loan

and of all monies (which terms

shall include the principal

advances already received by

the principal and all interest due

Stamp

or to become due in respect of

the said advances from the

original or first of the date or

dates of the advances until

repaid at the rate charged by

you from the time of such

advances with monthly /

quarterly / half-yearly rests and

your usual banker’s charges)

which are now or shall at any

time hereafter during the

continuance of this guarantee

be due from the principal to you

either for loans or advances in

respect of which the principal

shall or may be solely or jointly

with others liable to you and of

all costs, charges and other

expenses which you may incur

in enforcing or obtaining

payment of all such.

2. And I / we expressly declare

that this guarantee shall be a

continuing guarantee to you for

any amount from time to time

not exceeding as aforesaid the

sum of……………..or converted

Rupee Term Loan together with

interest and charges thereon

due on the said account and

whether or not from time to time

there be nothing owing on the

said account or the same be

from time to time brought to

credit.

3. And I / we hereby consent

and authorize and declare that,

you may at any time or times

and at all times grant or allow

time or indulgence to or

compound with the principal or

me / us without affecting this

guarantee and that all

compositions and payments

received by you from the

principal or from any other

person or persons, firm or

company or his or their estate

or estates shall be regarded for

all purposes and payment in

gross and you shall be entitled

to prove against the estate of

the principal should the

principal become bankrupt or

insolvent in respect of the whole

of the principal’s indebtedness

to you without any right on the

part of me / us on any or either

of us or my / our or any of my /

our representatives or any

representatives of any or either

of us to stand in your place in

respect of or to claim the

benefit, of any such

compositions or payments or

any security held by you until

you shall have received the full

amount of all your claims

against the principal which are

covered by this guarantee and

that this guarantee shall apply

to and secure any ultimated

balance which shall remain due

to you within the limit aforesaid.

4. And it is expressly provided

and declared that this

guarantee shall not be affected

by your taking or varying of

giving up any securities held by

you.

5. And I / we further declare that

this guarantee shall not be

affected by my death / our or

any of our death but shall

remain in full force and effect

until cancelled by me / us and

shall continue to be binding

notwithstanding any changes

which may from time to time

take place in the partners or

constitution of my / our firm or in

the partners or constitution of

the principal.

6. And I / we further agree that

nay entries which may be in

your Banking Books kept by

you and made in the ordinary

course of Banking business

may be adduced by you and

shall be conclusive evidence

against me / us or any or either

of us and my / our or any or

either of our representatives or

representative of the various

transactions therein contained

and of the amounts from time to

time hereby appearing due from

the principal to you and shall

not be disputed or questioned

by me / us or any or either of us

and my / our or any or either of

our representatives or

representative.

7. And I / we further agree that

the amount hereby guaranteed

shall be due and payable to you

on demand after notice

requiring payment of the same

shall have been delivered or

sent though the post by

registered letter addressed to

me / us at my / our

representative’s last known

place / places of abode or

business in ……………………

8. The guarantee shall bind my /

our representative heirs,

executors and administrators

and shall be enforceable by you

and your assigns.

9. And it is further agreed and

declared that this guarantee

shall be a continuing guarantee

irrespective of any sum or sums

which may be paid into the

account of the principal at any

time during the continuance of

the guarantee and shall remain

in force until cancelled by my /

our written authority, the

amount then due to be subject

to this guarantee and secured

thereby.

10. And I / we hereby expressly

declare that this guarantee and

the powers and provisions

herein contained are in addition

to and not by way of limitation

of or substitution for any former

or other guarantees or

guarantee heretofore given to

you by me / us (whether jointly

with some other persons or

alone) and now existing un-

cancelled and that this

guarantee is not intended to

and shall not revoke or limit

such other guarantee or

guarantees.

11. It is also agreed that any

admission or acknowledgement

in writing by the principal debtor

of the amount of indebtedness

of the principal debtor in relation

to the subject matter of this

guarantee or any judgement or

award which may be obtained

by you against the principal by

debtor shall be binding on me /

us and I / we accept the

correctness of any statement of

accounts served on the

principal debtor which is duly

certified by any Manager or

Officer of the Bank, and shall be

binding and conclusive as

against me / us also, and I / we

further agree that in making an

acknowledgement or making a

payment he shall be treated as

my / our duly authorized agent

for purpose of Indian Limitation

Act of 1963.

Place.………….

Date……………

Declaration by Borrowing Company and its directors who are guarantors

=----------------------------------------------------------------------------------------------=

(This declaration need not be stamped)

To

Indian Overseas Bank

________________ Branch

Dear sirs,

Declaration by Borrowing Company and its Directors who are guarantors

We the ___________________Ltd, the Borrowing Company and its undersigned

Directors who are guarantors do hereby declare that no consideration whosoever

by way of commission, brokerage, fees or in any other form was paid to the

undersigned Directors who are guarantors by the above named Borrowing

Company directly or indirectly, nor have the undersigned Directors who are

guarantors received any consideration whatsoever in any form from the above

named Borrowing Company directly or indirectly for executing personal guarantee

for the advances made and / or to be made by the Bank to the Borrowing

Company.

Date:

Place: (Borrowing Company) (Directors who are Guarantors)

Irrevocable Undertaking to Guarantee

(should be stamped as an agreement)

From

Mr/ Mrs

Address

Director _______________Ltd

To

Indian Overseas Bank

__________________Branch

Dear Sirs,

Irrevocable Undertaking to Guarantee

In consideration of your making and / or continuing advances to

M/s____________________________ Ltd of which I am one of the Directors, and

in consideration of your deferring obtention of my personal guarantee at my /

company’s request, I here by undertake that whatever required by you I shall

execute and deliver to you Irrevocable and unconditional guarantee in all forms

prescribed by you, for payment and discharge by the above company of you of the

sum of Rs. Rupess______________________________ and

interest and costs , charges and expanses and other moneys due to payable by

the above company to you under or in respect of the loan facilities advanced or to

be advanced to the above Company. This undertaking is irrevocable and

unconditional.

Place:

Date: (Signature)

Director _______________________ Ltd

Stamp

Certification by Auditor regarding end-use of advances released.

Certificated by Auditor

From

M/s

(Chartered Accountants)

Registration No.

Address

Date:

Two whomsoever it may concern

This is to certify that we have verified the books M/s / Mr / Ms /

And certify that the following credit facilities advanced by Indian Overseas Bank

……………….. Branch have been fully utilized by the said

M/s / Mr / Ms

Only for the purpose for which they have been sanctioned advances.

Sl

No

Credit facility Limit Rs. Present outstanding

Rs.

(Signature of Chartered accountants)

PART – VI

IMPORTANT CIRCULARS ON DOCUMENTATION

IMPORTANT CIRCULARS ISSUED BY CENTRAL OFFICE REGARDING

DOCUMENTATION

General manager’s circular No.21

of1983 dated 3-12-83

Revival of Documents-cum-

Documents due date Register

Reference in invited to our

Miscellaneous Circular No.22 (File

7e) of 1983 dated 15-11-1983. In

order to ensure timely action for

renewal / revival of the documents to

avoid documents getting time-barred.

The format of the Register in

enclosed for information of the

Branches.

Branches are, therefore advised to

introduce this register with effect from

1-1-84. The details of all the existing

documents in respect of advances

sector-wise are to be entered in the

register account-war including the

revival letters / confirmation letters

obtained by the branches. As and

when further advances are granted in

the same account the particulars of

the documents taken should also be

entered in the Register.

It is needless to emphasize that

proper recording of this register and

follow-up will avoid the documents

getting time-barred under the “Law of

Limitation” and at the same time

ensuring compliance of our instruction

under para 92 Chapter IX of the

Bank’s Book of Instructions.

Apart from the above Register,

Branches should also maintain a

diary as per format enclosed for

timely action.

Branch Managers should also submit

a certificate to the Regional Office

with copy of Credit Control

Department. Central Office, every half

year as at the end of March and

September in the format appended.

This certificate is in addition to the

existing Manager’s Certificate on form

AR 15.

“I…………………………….hereby

certify that I have verified the

documents and confirm that all the

documents are in force and renewed

in time by proper acknowledgement

No documents is time-barred”

This will be in addition to the

Documents Execution Register

(Rs.74) sent by the branches to the

Credit Control Department.

Branches should note to scrupulously

follow the instructions contained in

the circular and maintain the Register

upto date. The Register should be

made avail able to the inspecting

Officials of Regional Office Central

Office for their scrutiny. The

inspectors should also verify the

documents in consultation with the

Register maintained by the Branch

and give a certificate along with the

inspection Report to the effect that

the documents taken are in order and

enforceable.

Enclosure to GM’s Circular No.21 of 1983 dated 3-12-1983

DAIRY FOR REVIVAL OF DOCUMENTS

Documents completing 27th month during the month…………………….20

SI No. Name of the Party Nature of Facility Loan number Initials of Officers

Remarks (indicate

the date account

closed / renewal

(further diarised)

Enclosure to GM’s Circular No.21 of 1983 dated 3-12-1983

BRANCH ……………………………

DOCUMENTATION CUM DUE DATE REGISTER

SI No. Name of Constitution Nature of Name of Date when Date of

execution Remarks

the Party Facility Documents DPN is 27 of revival

letter/

Form no. month old confirmation

of

Date Amount balance

Misc. Circular No.67 (File 7b) of 1984 Dated 19-12-84

Obtention of confirmation of

balance Revival Letter from

Borrower and Guarantor

Branches…….advised…….cum Misc.

Circular No.3 (File 7b) of 1975 dated

18th July 1975 that in view of the large

number of loan accounts and the

difficulties experienced branches

need not obtained confirmation of

balance for any type of loan account.

In a receipt judgement the Madras

High Court has reserved that the

guarantors liability is not co-extensive

with that of the borrower unless

revival letter is obtained from the

guarantor within three years from the

date of advance in view of the

judgement it has now been decided

that branches should obtained revival

letters………borrower as well as the

guarantors for all types

of……….accounts where guarantee

on form F 111 or ……….. been

executed. The formats in which the

revival letters are to be obtained from

the borrowers and guarantors are

enclosed. These forms are numbered

as F301(revised) and F301(b) and

arrangements are made for preparing

forms for supply to branches.

It is clarified further that the revival

letter form F…… obtained from

borrowers has been

suitably……….include reference to

the agreement executed

by………….apart from the pronote

executed by him so………..revival

letter may be obtained for any type

of………irrespective of whether

promissory note has been executed

or not, as in the case of jewel Loan or

term loan against machinery, etc. it

therefore follows that this revival letter

form should be obtained at the end of

27 month from date of execution of

the documents for all personal

accounts.

Branches should continue obtain

confirmation…………….. for all Cash

Credit and overdraft except for loan

accounts as hitherto from the

borrower however…….confirmation of

balance letter should be

obtained……….borrowal accounts

including loan accounts, from………

the summarized procedure to

be……..by branches is listed below

for the guidance.

1. To obtain revival letter in form

F 301 (revised) from the

borrower and F 301(B) from

the guarantee for all types of

borrowal accounts expire of 27

months for date of executed of

documents along the laid down

para 92 chapter IX of the book

instruction (Page 180)

2. To obtain confirmation of

balance letter each year on

form F 237A from the

borrowers for all Cash Credit

accounts and overdrafts

except loan accounts.

3. To obtain confirmation of

balance letter each year from

the guarantee at any for all

type of borrowal accounts

including………accounts.

Reference No. DEP 4/85 Date : 4-5-

1985

Issuing Dept. : Law

Execution and Stamping of

document for loans granted to

Non-Residents against NRF/FCNR

Deposits

Branches are frequently seeking our

guidance about documentation

aspect of loans to NRF/FCNR

account holders wherever non-

resident depositors make a request

for advance against their own

deposits from their place of

residence. I.e. outside India. Similarly

non-resident depositors offer their

NRE/FCNR deposits as security for

the advances granted to residents in

India in such cases branches send

the documents, DPN etc to the non-

residents by post for execution and

on receipts and letter of authority

grant loans / overdrafts subject to

exchange control regulations

branches seek clarifications as to

whether such executor of documents

mentioning the places outside India

and a date prior to the date of

availment would be valid.

There is no bar to get the documents

executed outside India mentioning the

place of execution and date it there

and to release the loans subsequently

on receipt of the executed documents

in terms of section 18 of the Indian

stamp act branches should affix 20

paise revenue stamp on the duly

discharge deposit receipt near the

depositors signature and cancel the

same with in 3 months form the date

of receipt of the documents in India.

As per section 19 of the Indian stamp

act & Promissory Note executed

abroad required to be stamped before

it is presented for the acceptance or

payment or endorsed, transferred or

otherwise negotiated in India It need

not be stamped when the Promissory

Note is not so presented or endorsed

or otherwise negotiated.

The Madras High Court held in

Sivasubramame Thevan vs

kalankarayan Konal AIR 1941 MAD

868, that a promissory Note executed

at Colombo which was stamped with

the British India Stamp is required to

be stamped again under section 18 of

the Indian stamp act But this view is

dissented from by the Punjab High

court in Rattan Chand Birod Ram vs.

Kharail Rama Nand Lal AIR 1955

Punjab 88, where it is remarked that

of an Indian stamp is already on the

Promissory Note it will not require a

fresh stamp subsequently the Madras

High Court also held in Senal vs R.N.

Chinnaiah Konar (1969) I MLO 90

that in a suit on the basis of

Promissory Note stamped with Indian

stamp and executed out of India the

Promissory note need not be

stamped before filing suit.

If the Indian Revenue Stamp is

already affixed on the Promissory

Note executed outside India as the

promise we can file a suit against the

maker (i.e. the borrower) on the

Promissory Note in India without

again affixing the India Revenue

Stamp to the same.

If an Indian Revenue Stamp is not

affixed on the Promissory Note at the

time of execution of the Promissory

Note outside India, the stamp may be

affixed either at the time of making

demand or before the time of filing the

Promissory Note along with the plaint

in a suit in India.

In view of the conflicting, judicial

decision, it is safer to affix the Indian

Stamp on the promissory note

executed outside India irrespective of

the fact whether it already bears an

Indian Stamp or not.

In the circumstances explained in the

preceding paragraphs branches are

advised to affix the Indian revenue

stamp of required value on the duty

discharged deposit receipt as well as

on the DPN as soon as the

documents are received by the

branches in India.

Regarding the exchange control

regulators RBI approval and

connected rules with regard to the

loans against NRE/FCNR deposits,

branches may seek the guidance of

the international Division, Central

Office..

Reference No. ADV.62/85 Dated :

22.7.85

Issuing Dept. : Credit Control

Advance against National Deposit

Scheme

Preamble

We refer to our Misc. circular Memo

No.256 (file 7c) of 1984 dated

21.12.84 wherein the formalities for

advancing money against National

Deposit Scheme have been explained

in detail. We are now advised by RBI

as per their circular letter DBOD EP /

1050 / C. 459(44)85 dated 9th May

1985 (Which is enclosed) that the

National Deposit Receipts have been

notified as “Govt. Securities” and are

governed by the Public Debt. Act

1944. RBI has further observed that

though the scheme provides for

pledge of deposit receipt to banks for

the limited purpose of availing of

advances. It does not envisage the

manner in which transfer is to be

affected and no term of transfer has

also been prescribed for the purpose.

Operational instructions

However branches are now instructed

to get the deposit receipt discharged

by the depositor without specifying

any date on the reverse of the receipt,

in the column “Receipt of Discharge”

at the time of granting advances.

In addition to this branches should

obtain a letter of authority from the

depositor as per specimen enclosed

in the Misc. Circular Memo No. 256

(file 7c) of 1984 dated 21-12-1984

and another copy of the letter of

Authority addressed to the Branch

issuing the receipt with a specific

request to mark our lien. The

specimen of letter of authority

endorsed to circular no.256

mentioned above indicates a copy

to…………….Govt. of India is to be

deleted and the name of our bank

and issuing branch is to be included

in that place.

Reference No.ADV.125/85 dated :

24.12.85

Issuing Dept. : Organization and

Method

Documentation at the time of

Enhancement of Limits

Preamble

Branches have been advised the

procedure for obtaining documents

for enhancement of limits under paras

94 & 94(a), chapter IX if book of

instructions. It will be observed that

for advances to proprietary or

partnership concerns, procedures

outlined in both the paras 94 and

94(a) are applicable (i.e.) taking

documents either for the full limit by

closing and opening the account or by

taking documents only for the

enhanced portion of the limit. In order

to have a uniform procedure at all

branches the following procedure in

outlined for compliance by branches.

Operational instructions

1. Whenever a credit limit

sanctioned to a borrower is

enhanced or additional facilities

are sanctioned the procedure to

be followed will depend on the

constitution of the borrower and

the securities charged to the

Bank.

2.1In the case of advances to limited

companies. Whenever the

existing limit is enhanced or

additional facility is sanctioned, it

is not necessary to obtain fresh

documents for the total limits in

order to obviate disturbing the

charge registered or security

mortgaged. It is sufficient to take

documents only for the

enhanced portion of the limits or

the additional facility and file

application for modification of

charge or fresh (additional)

charge respectively as the case

may be.

2.2If the advance is guaranteed by

the Directors in their personal

capacity or by third party the

guarantee document must be

obtained only for the enhanced

additional facility

2.3If the existing limit is already

secured by mortgage of an

immovable property, than for the

purpose of extending the

mortgage for the enhanced

additional facility, a

supplementary narration should

be entered in the Title Deeds

Register specifying the amount

of further limit.

3. In the case of advance of

individuals, proprietary concerns

etc. other than limited

companies, if the advance is

secured by a mortgage of an

immovable property the

procedure for documentation

outlined in para 21. should be

followed in order to obviate

disturbing the security

mortgaged. In such cases

supplementary narration should

be recorded in the Tile Deeds

Register, and confirmation letter

obtained as outlined in chapter

X(G) Para 16 of Book of

instructions.

4. In the case of advances to

individuals, proprietary concerns,

partnership firms, etc., (i.e. other

than limited companies)

whenever the limits (secured

other than by way of mortgage)

are enhanced or reduced, the

pronotes and connected

documents must be taken afresh

for the full limit. The old account

in such cases must be closed by

transfer to a new account on the

bases on the new documents.

Both the debit to the new

account and credit to the old

account should be treated as

cash transactions. For Cash

Credits or Overdrafts, the

borrower must be requested to

issue a cheque against the new

account equal to the outstanding

in the old account, inclusive of

interest to the date of closing,

and the amount of cheque which

must be endorsed by the

borrower should be credited to

the old account. Where the

advance is guaranteed by the

third party, then guarantee

document should be obtained for

the full limit.

PERMANENT

Reference No : ADV.219/86 dated :

29.9.86

Issuing Dept. : Organization and

Methods

Limitation for Mortgages-

Procedure for extending the period

of limitation

Preamble

In order to extend the period of

limitation for filing a mortgage suit,

branches were advised to deposit the

deeds within 12 years from the date

of original deposit vide our misc.

circular No.6 (file 7e) of 1966 dated 2-

9-1966 in the case of equitable

mortgages by deposit of the deeds As

this procedure involves lot of

formalities to be completed an

alternative procedure is suggested

below under point 3.2 which

envisages obtention of security

confirmation letter in lieu of redeposit

of title deeds. The alternative

procedure is uniformly applicable for

mortgage of property offered as

primary or collateral security and

should be followed only in cases

where it is not possible to get the title

deeds redeposited by constructive

delivery (i.e. by entering supplemental

narration without disturbing the title

deeds actually) before the expiry of

the limitation period. For Registered

Mortgage the procedure is provided

under (B).

Operational instructions

A. Procedure to be adopted in all

equitable mortgages

The procedure outlined below will be

applicable for equitable

mortgage by simple deposit of

title deeds and also deposit

accompanied with Registered

Memorandum.

2.1Supplemental narration should be

entered in the title deeds register

as per the format given in para

16 of Chapter X(G) of our Book

of instructions. For the purpose

of entering this supplemental

narration, the mortgagor should

call at the branch.

2.2On the next day, confirmation

letter should be obtained from

the owners as per the format

given in the said paragraph

itself.

2.3Encumbrance certificate for the

period between the date of

earlier title deed narration and

the supplemental narration

should be obtained and kept on

record. If there is any

intermediary encumbrance, the

matter should immediately

referred to sanctioning authority.

2.4 In the case of Limited Companies,

supplemental narration should

be in the format given in

paragraph 18 of chapter X (G) of

the Book of instructions. On the

next day of the supplemental

narration, confirmation letter

should be obtained from the

authorized signatory of the

company as per the format given

in para 16 of the Chapter X (G).

It is not necessary to file

modification of charge since the

supplemental narration is

entered only for the purpose of

extending the limitation.

3.1Branches should follow the

procedure outlined in 2.1 to 2.4

above as far as possible

3.2If for any reason, it is not possible

to follow the above procedure to

entering the supplemental

narration and obtaining

confirmation letter, alternatively

the branch should take the

security confirmation letter as

per the format appended to this

circular. The security

confirmation letter should be

filled in properly and signed by

Borrower / Guarantor over

Revenue Stamp, as in case of

Revival Letter.

B. Procedure to be adopted for

registered Mortgage

1. Branch should not arrange for

redeposit of title deeds in the

case of Registered Mortgage.

2. The period of limitation can be

extended by an endorsement by

the mortgagor on the Registered

Mortgage Deed as to the

payment of principal and

interest. The endorsement

should be made on any of the

reverse pages of the Registered

Mortgage Deed and the

endorsement should be on the

following lines.

*I / we hereby confirm and

acknowledge my / our

indebtedness in the outstanding

sum of Rs……………….

(Rupees………………only)

………as on ……… and further

acknowledge that the debt is

secured by this Registered

Mortgage and that the Mortgage

Security is in full force and

effect.

Place :

Date : Signature of Mortgagor

If the Mortgage covers any

contingent liability or non-

refunded liability like Letter of

Credit or Letter of Guarantee,

the format of the endorsement

can be modified suitably under

legal advice so as to make it as

an acknowledgement in respect

of the credit limit itself.

3. Alternatively, the branch

should take the security

confirmation letter as per the

format appended to this circular

with 12 years from the date of

Registered Mortgage deed. The

column in the Security

Confirmation Letter should be

filled in properly and the

Borrower / Guarantor should

sign on Revenue Stamps as in

the case of Revival Letter.

Reference No : ADV.264/87 dated :

24.2.87

Staff Loan Accounts

Preamble

Hitherto branches have been

obtaining revival letters for loans

granted to staff members (other than

in case of Staff Housing Loans (SHL)

wherever warranted. Now it has been

decided to incorporate a suitable

provision in the letter of authority in

form PL 8A which will obviate

obtention of Revival letters as in the

case of Staff Housing Loans (SHL).

The revised form will now contain a

clause similar to form-C obtained for

SHL accounts Branches are

requested to follow the operational

guide lines given hereunder.

Operational instructions

1. Branches should henceforth

obtain letter of authority for all

loans granted to members of

staff other than Staff Housing

Loans in the revised format PL

8A (revised) (Enclosed with this

circular).

2. Branches need not obtain

Revival letter, for loans granted

to staff members, provided letter

of authority is obtained in the

said revised format.

3. Till such time revised format is

printed and supplied, branches

are requested to incorporate the

following clause in the existing

form of PL 8A to take care of the

above requirement.

*Further I would like to place it

on record that each

appropriation made / to be made

from my salary and or gratuity

shall be a payment made by me

and / or my behalf for the

purpose of Limitation Act *

It may be noted that the revised

format contains an authority to

recover the interest due on the

loan wherever applicable.

Periodic interest on the advances

should be recovered from the

member’s salary accordingly.

Reference No. : ADV/285/87 dated :

12.5.87

Documentation – Cheques

Purchase, Bills Purchase /

Discounted and Letter of Credit

Transaction

Preamble

Presently no document has been

specified for cheque purchase facility.

It has been decided to obtain

Demand Promissory Note whenever

a party is sanctioned a regular

cheque purchase facility. Similarly of

Bills. LC and TR Limits also DPN

should be obtained in addition to

other documents. Accordingly the

following documentation procedure is

outlined for compliance by branches.

Operational Instructions

1.1 Whenever a party is sanctioned a

regular cheque purchase facility

either by an Administrative

Office or the Branch Manager

under his discretion, Demand

promissory note in F14 / 14-A

and Letter of Continuity in F 16

must be obtained from the

borrower for the entire limit.

1.2 Wherever sanctioned Bills

purchase / discounting facility

(Inland or Foreign) in extended

or regular basis branches must

obtain DPN 14 / 14-A and F16

along with F 107.

1.3 Wherever sanctioned LC & TR

limits are extended on regular

basis branches must obtain DPN

14 / 14-A and F 16 along with

other documents.

2. The rate of interest to be

mentioned in the DPN is the rate

of interest applicable for the

overdue period.

3. The format of F 16 is being

amended to extend its

applicability to any other credit

facility in addition to Overdraft /

Cash Credit. Till such time the

branches are supplied with the

revised format, while obtaining F

16 for any facility other than

overdraft / Cash Credits the

words “on any other credit

facility” should be added after

the words “Overdraft / Cash

Credits” in all the places in the

existing F 16 under due

authentication by the signatory

(ies). A copy of the amended F

16 is enclosed for ready

reference.

4.1 The documents obtained in each

case must be diarised in the

Documentation cum due date

diary R-74(introduced vide

General Manager’s Circular

No.21 of 1983 dt.31.12.83)

4.2 Revival letter must be obtained

in such cases after 27months

from the date of execution and in

any case not later than 36

months in order to ensure that

the pronotes do not get time

barred.

5. The revised documentation

procedure is equally applicable

in the case of existing advances

Branches are advised to obtain

pronotes wherever applicable

immediately or at least at the

time of renewal of the limits.

6.1Branches are to note that the DPN

and the subsequent revival

letters will keep alive Bank’s

recourse to the borrower alone.

6.2Recourse to the drawer and prior

endorsee, if any in case of

cheques and the drawee / co-

acceptor in case of bills will

however be available only upto 3

years from the date of the

cheque or the bill or the date of

acceptance as the case may be.

6.3Branches should therefore, keep

close watch on individual

cheques / bills and take action in

time.

Reference No. : ADV.286/87 dated :

12.5.1987

Financial Assistance to Blind

Persons

Preamble

Branches quite often seek clarification

in respect of documentation

procedure for the advances granted

to blind persons.

Operational instructions

1. Instructions vide Misc. Circular

No.68 (file 7b) of 1982 dated

27.12.82 and Permanent circular

No. DEP : 20/86 dated 6.5.87

are basic guidelines for opening

accounts in the name of blind

persons. These equality apply to

loan accounts also.

2. In addition the following

instructions / guidelines are to be

followed while granting

advances to blind persons.

2.1 Loans can be granted to blind

persons individually. In that case

the loan documents should be

read over and explained to the

borrower before the executed

the same and a letter, to that

effect may be taken from a

witness as per the format

enclosed. Further the borrower

may be asked to open a savings

bank account and the loan

amount may be released

through that account. The

precautions for opening and

operating the account of a blind

person as detailed in Misc.

Circular No.68 (File 7b) of 1982

dated 27.12.82 and Permanent

Circular No.DEP : 20/86 & DEP :

39/87 dated 27.02.86 & 6.5.87

respectively, may be followed.

2.2 When the blind person desires

sanction of a loan jointly with any

other person whom he considers

reliable, the loan may be granted

to them jointly. In such an event

while obtaining the loan

documents, the contents from

the documents as well as terms

and conditions of sanctions

should be read and explained to

the borrower in the presence of

a witness as detailed in para 2.1

2.3 In case of advances made to a

blind person jointly with another

person, alternatively, the other

borrower may be authorized by

the blind person to execute the

loan documents, sign the revival

letter and / or confirmation of

balance, create mortgage,

charge etc by executing a

special power of attorney

(attested by notary public or first

class Magistrate) and the loan

documents could be executed by

the other borrower as agent.

Before obtaining the documents

from the agent the contents of

the Power of Attorney should be

read over and explained to the

blind person in the presence of a

witness and only when he

confirm the execution of such a

power of attorney the documents

should be obtained. The fact of

such confirmation should be

recorded under the signature of

the witness in the enclosed

format mentioned in para 2.1

3.1 The witness may be another

customer or a person known to

the bank but should not be

related to the blind person.

In all the above cases, staff

members should not be witness.

This to be read with

Misc. Circular No.68(File 7b) of

1982dated 27.12.82 PERMANENT

circular no. DEP : 20/86 dated

27.02.86 & 39/87 dated 6.5.87

Reference No. ADV.290/87 dated :

19.5.87

Consortium Advances – Joint

Documents – Procedure for

extending the Limitation Period

Preamble

Under the Limitation Act, every suit

should be filed with the prescribed

limitation period. In order to keep the

limitation alive in respect of a debt,

there should be a written

acknowledgement from the borrower /

guarantor or past payment under the

signature of the borrower. For the

sake of convenience and easy proof,

a banker should always get

acknowledgements periodically.

Branches have been advised in Misc.

Circular No.67(file 7b) of 1984 dated

18.12.1984 as follows.

1. To obtain Revival Letter on

form F 301 (Revised) from the

borrower and F 301 (B) from the

guarantor for all types of

borrowal accounts on expiry of

27 month from the date of

execution of documents on the

lines laid down in para 92

chapter IX of the Book of

instructions.

2. To obtain confirmation of

balance letter each year on

Form F 237 A from the borrower

for at Cash Credit Accounts and

Overdrafts, except loan

accounts.

3. To obtain confirmation of

balance letter each year on

Form F 237 A from the

borrowers for all types of

borrowal accounts including loan

accounts.

The above procedure is applicable for

all our advances including consortium

advances, where the bank is

extending credit facility to a borrower

jointly with other banks / financial

institutions.

The following guidelines are provided

for compliance of branches.

Operational instruction

1. Even in Consortium advances,

in order to keep limitation alive,

branches, should obtain revival

letter / confirmation of balance

letter as per Misc. circular no.67

(file 7b) of 1984 date 19.12.84

(Revised F 301 formats is

appended to the Misc. Circular

No.67 (file 7b) of 1984 dated

19.12.1984.

2.1 Where the advances is covered

by a joint deed of Hypothecation

(usually as in case of working

capital advances) reference to

the joint deed of Hypothecation

should be quoted in the Revival

Letter.

2.2 where the advance is covered by

a joint deed of Hypothecation

(usually as in case of Term Loan

or working capital finance

against pledge) references to the

individual deed of agreement

should be mentioned in the

revival letter.

3. Generally, in consortium

advances, it is not the

responsibility of the leader Bank

to take revival document on

behalf of other banks. When we

act as leader bank, it may be

made clear to the other banks in

the beginning itself that each

bank should take care of

limitation in respect of their debt

and liabilities under the joint

documents / Pari Passu

Agreement.

This point may be informed in the

consortium meeting and

recorded in the minutes of the

meeting. Alternatively, the

member bans may be suitably

advised in writing also.

This is to be read with : misc. Circular

No.67(file 7b) of 1984 dated

19.12.1984

Reference No.ADV 354/87

Date:22.10.1987

Issuing Department : Management

Service: Organization &

methods

Creation of Collateral Security –

General Hypothecation

Agreement

Preamble

Very often when credit limits are

sanctioned to a borrower the term of

sanctions stipulated the certain other

assets of the borrower (held as

security for one of the limits or

otherwise) should be held as

collateral security for all the limits

sanctioned to the borrower. It is

observed, that branches generally

obtain documents in respect of each

of the individual limits, but the

requirement of the sanction

endorsement for collateral security is

not taken care of want of a suitable

document.

In order to facilitate the creation of a

secondary or residual charge a

document designated as F110 E

has been introduced. The

following guidelines are provided

for compliance.

Operational instructions

Wherever a sanction endorsement

contains a stipulation that

machineries or current assets

should be held as a collateral or

residual security by way of

hypothecation for all the credit

limits, branches should obtain

the general hypothecation

agreement for collateral

securities F 110 E (enclosed to

this circular). This is to be

obtained in addition to the

existing documents taken in

respect of each facility.

2. The document should be

stamped as an agreement as

per stamp acts in force at the

place of execution.

The General hypothecation

agreement (F 11 E) must specify the

nature and amount of credit facilities

for which additional/collateral security

has been stipulated. The schedule of

securities in this deed must clearly list

out the full details of the securities for

which the collateral / residual charge

is sought to be extended.

The general hypothecation

agreement (

F 11 E) must be taken for the

aggregate amount of limit for which

the collateral security is

extended.

3. Whenever there is an

enhancement in the limits, the

general hypothecation

agreement must be obtained

and the details of the

enhancement should be

mentioned therein properly.

4. when the sanction stipulates

that all the limits should be

secured by the fixed assets

(viz land, building, plant and

machinery) mortgage on the

security must be created for all

the limits as provided in

chapter X (G) of the book of

instructions. In addition, F 110-

E should be taken to secure

the machineries for all the

limits.

5. when the borrower is a limited

company, charge should be

filed with the register of

companies based on not only

F 110-E and mortgage, but

also other letters of

hypothecation taken in respect

of the particular limits

On enhancement of credit facilities,

modification of charge should be filed

with in time on the basis of letters of

hypothecation taken due to

enhancement and supplemental

mortgage, if any

6 An illustration of the

documentation requirements and

position regarding creation of

charge are out-lined in the

enclosure the circular.

7 Branches are advised to

examine all their sanction

endorsement, particularly

those relating to commercial

and industrial borrowers, and

ascertain whether any

stipulation has been provided

for creating a collateral /

residual / charge on the fixed/

floating / block / current assets

of the borrower. If this

requirement has not been

taken care of arrangement

should be initiated for

obtention of F 110-E and

registration of the banks

charge, wherever applicable.

8 Till such time the new format is

printed and supplied the form

may be typed on a non-judicial

stamp paper of appropriate

value.

This is to be read with

Misc. Circular No. 67(file7B) of

1984 dated 19.12.84 Permanent

Circular No.ADV.125/85 dated

24.12.85.

This amends

Manual on Documentation –

System and Procedures with

regards to the provisions

contained there in for charging

collateral securities.

Enclosure to PREMANENT Circular No.ADV.354/87 dated 22.10.87

illustration (A) Facilities granted to a limited company:

Nature of Facilities Limit Security

Rs. in Lakhs

1.Cash Credit Hypothecation 10.00 Hypothecation of all stocks

2. Packing Credit(To be released as loan) 5.00 - do-

3. Term loan for purchase of machinery 10.00 Hypothecation of machinery

and mortgage of land and

building

4. Letter of credit 5.00 Document of title

5. Letter of Guarantee 5.00 Counter Guarantee

6. deferred payment Guarantee 15.00 Counter Guarantee\

co-acceptance hypothecation of machinery.

Condition: All the facilities should be secured by all the fixed assets of the

company viz, land , building, plant and machinery.

Documents to be taken

1. Cash Credit - DPN & F.110 A for Rs. 10.00Lacs

2. Packing Credit – DPN & F.251-B for R. 5.00lacks & F.251 for each loan.

3. Term loan - F110 C for Rs.10.00lacs securing the machinery financed

4. Letter of credit - F104X for each Lc

5. Letter of Guarantee - F286for each L.G

6. Deferred payment Guarantee/ co-acceptance - F110 D(revised)Rs.15lacs &

F.286(revised) for each transaction

Mortgage should be created to

secure the aggregate amount of

Rs.50.00lacs and from 110 E for

Rs.50.00 lacs securing machinery.

The break up of limit should be

mentioned in the title deed

narration and as well as in from

110 E. the schedule of F 110- E

should read as : “ All the present

and future plant and machineries

including the machineries

mentioned below………………

(List of available machineries may

be furnished) Extent of limits of

break up should not be mentioned

in title deeds register in case of

borrower other than limited

companies.

Filing OF Charge with register

of companies

1. Cash Credit Facility

From 8 for cc limit based on F 110 –

A and mortgage stating that the limit

is secured by hypothecation of all

stocks, machinery, other assets and

mortgage of land and building. In the

event of any registrar of companies

insisting of three form 8 instead of

one from 8 F 110 a may be treated as

principle deed and from 8 may be

filed and simultaneously two

modification (in form 8) may be filed

stating that the CC limit, which was

originally secured by stocks, has

been additionally secured by

hypothecation of machinery or

mortgage.(if F 110 – A had already

been taken for c limit and charge was

filed with registrar of companies and

then F 110 – E & mortgage were

obtained/ created, the modification of

charge should be filed stating that the

CC limit, which was originally secured

stocks, has been additionally secured

by hypothecation of machinery and

Mortgage).

2. Packing Credit Facility

Form 8 for packing Credit based on F

251 – B and F 110 – e and mortgage

stating that the limit is secured by

hypothecation of all stocks,

machinery other assets and mortgage

of land and building. If registrar of

Companies insists for three From 8,

procedure mentioned above may be

followed.

3. Term Loan Facility

Form 8 for the term loan limit based

on F 110 – c and F 110 – E &

mortgage stating that limit is secured

by all machineries mentioned in both

hypothecation deeds and mortgage of

land and building. if Registrar of

Companies insists for three From8,

the procedure mentioned above may

be followed.

4. LC & LG. (including DPG/C0-

acceptance) Facility

Form 8 for Lc & LG limits based on F

100 – E & mortgage stating that the

two limits are secured by all

machineries and mortgage of land

and building. If Registrar of

Companies insists for two From 8 ,

the procedure mentioned above may

be followed. For DPG & Co-

acceptances limit form 8 should be

based on F 110 – D,F110 – E and

mortgage.

In the above illustration , when there

is enhancement in the credit facilities,

supplemental mortgage should be

created as per the procedure given in

chapter X (G) of the book of

instruction. From 110 – E should be

taken for the enhanced amount as

supplemental to the form 110 – E

taken for the earlier limits before

enhancement. This is the procedure

for covering the enhanced limits fixed

assets.

Branches should also remember to

take document for the enhancement

of the limits as per the procedure in

para 94 in chapter IX of the book of

instructions for cash credit and

packing credit limits. These will be in

addition to F 110 – E.

On extending the collateral security

and taking usual document for the

enhancement, modification of charge

should be filed within time in the case

of limited company borrowers.

Reference No.ADV.328/88 dated

12.2.88

Issuing Department: Management

Services (O&M)

Release of import document under

trust receipt – Revised accounting

procedure and documentation

Preamble

Presently, branches while

releasing import document under trust

receipt for parties enjoying such

facilities debit the G.L Head “ letter of

credit bills receivable under trust

receipt “Account (LCBR under TR). It

has now been decided that a

separate demand loan should be

created for each trust receipt facility

extended , so that the out standing is

under each loan could be closely

mentioned and the advance

liquidated with in the permited period

provided under the Tr. The following

instructions are provided for guidance

of branches.

Operational Instructions

1. While financing against imports

whenever document are

released against a trust receipt

a separate demand loan

should be created for each

release. Accordingly, demand

loan account should be debited

for the amount and the

corresponding amount should

be credited to LCBR account.

The GL head “ LCBR under

TR” Stands cancelled with

immediate effect.

2. Branches should continue to

obtain F 104 – X for each letter

of credit opened (and DPN for

all sanctioned limit )as hitherto.

Document as describe here

under should be obtained in

addition to F 104 – X (and

DPN wherever applicable)

depending on the terms of

sanction.

When a borrower is sanctioned a

regular letter of credit limit to be

secured by not only the goods

received under LC but also against an

overall charge on the entire stocks

and / or the sanction does not

stipulate any specific security for the

said limit, F 110 – E should be

obtained to secure. All present and

future stocks of raw materials work in

process and finished goods” of the

borrower.

Where such letter of credit limit (as

described in para 2.1 above is

sanctioned with facility for released of

document of title against trust receipt.

F 65 (trust receipt from) should be

obtained as and when document of

title are released.

While describing the limit in F 110 – E

it should be described as under

“ Letter of credit (with demand

loan facility for release of

document / goods against trust

receipt.”)

2.2.1 If, however, ’demand loan’

facility for release of

document / goods against

trust receipt is not

sanctioned as a regular

facility and 110 –E has not

been obtained for the cc

limit, it is advisable to

obtain 110-E at least for

the demand loan facility as

above, if not specially

waived on some other

considerations F65 should

be obtained in any case as

and when document of title

are released.

2.2.2 In case 110-E is not

obtained either for the LC

limit or the “demand loan”

facility, as mentioned in

para 2.1.1 and 2.2.1 above

respectively, DPN for the

amount of the demand

loan should also be

obtained together with trust

receipt (F.65) as and when

document of title are

released.

2.3 If the borrower is a limited

company, charge should be

filed with registrar of

Companies on the basis of

F.110E. No charge need be

filed in case of para 2.2.2.

above.

Once the documents are released in

favour of and / or goods are taken

custody of by the borrower, a stock

statement should be submitted by the

borrower for the relative goods. The

stocks statement must indicated the

place of storage of the stocks

Full insurances cove must be

available for such stocks and the

relative cove with the bank’s clause

held with the branch

All the formalities connected with

securing of goods as applicable for

hypothecation advances such as

display of the bank’s name board at

the godown; periodic inspection of the

security etc. must be carried out.

Care should be exercised to ensure

against over-lapping of the securities,

i.e. these stocks should be kept

segregated from the other stocks

belonging to the borrower. Similarly

the stocks statement submitted by the

borrower for other types of credit

facilities enjoyed Viz., OCC. Key loan

etc should be scrutinized to ascertain

that they do not include the stock

released under the Demand Loan

against Trust Receipt.

4. At weekly intervals, or at such

other intervals as provided in the

sanction endorsement, stock

statements should be called for

advising the balance of stocks

available. The drawing power of

the stocks should at no point fall

short of the outstanding in the

Demand Loan Account. Part

sales made by the borrower from

these stocks must be accounted

for, and the proceeds must be

credited to the loan account for

the corresponding value of the

stocks sold. The borrower will be

deemed to have cleared his

liability under the Demand Loan

only when the full amount of the

bill has been paid. The

outstanding under the demand

loan must be fully adjusted

within the permissible period

provided under the Trust

Receipt.

5. While determining the ‘Letter of

Credit’ liability of the party at any

point to time the outstanding

under Letter of Credit “LOBR”

and the “Demand Loan” (against

Trust Receipt) must be taken

into account. The aggregate of

all these outstanding must not

exceed the sanctioned limit.

6. Post import credit facility any

way of Demand loan (against

TR) should be sanctioned ion

exceptional cases only and not a

rule.

7. Once a LC limit is sanctioned

branches should consider take

into account the following before

actual opening of any LC so that

compliance of the provisions of

para 6 above may be ensured

a. The nature and quantity of the

materials to be imported

b. Anticipated time of arrival of

the materials

c. Level of holdings at the time of

opening of LC (in other words

how long the present stock

would last)

d. Whether the holding of the

imported goods will be within the

permissible / projected limit

when arrived.

e. Whether adequate DP / funds

will be available at the time of

arrival of the goods.

This is to be read with

Permanent Circular No. ADV 285/87

dated 12.5.87 and

Permanent Circular No. ADV.

354/87 dated 22.10.87

Reference No. ADV.405/88 date

29.03.88

Issuing Department : Banking

Operations

Advances Against the security of

9% Relief Bonds – 1987

Preamble

Attention of branches is invited to our

permanent Circular No. Misc.208/87

dated 9.12.87 and Government

Accounts Circular No.2 of 1988 dated

28.1.88 spelling out the salient

features of the above scheme brought

out by Government of India, Ministry

of Finance Department of Economic

Affairs, New Delhi

Now we are advised by RBI, DBOD,

Bombay that banks can sanction

advances against the

……………..above bonds as detailed

below.

Operational instructions

Branches / controlling offices

can grant loan / advances against the

above bonds within the powers

vested with various layers of authority

against item VII “Secured Advances”

other than against shares and Jewels

(page nos.3 and 11) of he current

discretionary Powers Booklet on the

following items / conditions.

1. Margin : 25% margin is to

be retained always on the

original value of the bonds.

2. Rates of Interest : 16.50

per annum.

3. Repayment : The

reasonable repayment

programme is to be fixed

depending upon the

category of the borrowers,

the purpose of advance etc.

The repayment period may

be fixed taking into account

the maturity date of the

bonds.

4. Documents : Suitable

advanced documents as

applicable to Government

securities are to be

obtained.

5. Caution: Premature

payment of these bonds

are not allowed. Hence

branches are advised to

retain the margin as

stipulated above while

granting the advances.

Interest debited to the

account should be

recovered then and there.

In view of the credit restraint

measures recently imposed by

us, branches/ controlling

offices are once again advised

to strictly adhere to the

instructions contained in our

circulars ADV 393/88 to 395/88

dated 4.3.88

This is to be read with

1. Per.Cir.Misc.208/87 dated

9.12.87

2. Govt. Accounts Cir.No.2 of

1988 dated 28.1.88

Reference No. ADV. 411/88 date

9.4.88

Issuing Department : Banking

Operations

Advances Against 10 year social

security certificates

Preamble

Branches are aware that the

Government of India, through Postal

Department, have introduced Social

Security Certificates (SSCs) scheme

with effect from 1.6.82. For ready

reference, we give below the salient

features of the above scheme.

1. The Social Security

Certificates are issued in two

denominations of Rs.500/- &

Rs.1000/- and available at

Post Office who are having

Savings Bank Facility.

2. The maturity period of the

certificates is 10 years

3. The rate of interest offered is

11.3% compounded half-

yearly.

4. The deposit is tripled in the

10year period.

Now, we are advised by Reserve

Bank of India, Bombay through Indian

Bank’s Association, Bombay, that

banks can consider granting

advances against the security of the

above certificates.

Operational Instructions

Branches / controlling offices are

hereby permitted to grant loan /

advances against Social Security

Certificate at per power vested with

various layers of authority against

item VIII “Security advances other

than against shares & Jewels (Page 3

and Page 11) of the discretionary

Powers Booklet on the following

terms & conditions subject to credit

restrictions, if any, imposed from time

to time.

Margin

50% margin is to be retained always

on the invested value of the

certificates.

Rate of interest

16.5% per annum

Repayment

A reasonable repayment programme

is to be fixed depending upon the

category of the borrower, the purpose

of advances etc. The repayment

period may be fixed taking into

account the maturity date of the

certificates also. However, such

repayment period should not exceed

36 months.

Documents

Suitable advance documents as

applicable to advances against

National Savings Certificates with

suitable modifications wherever

necessary are to be obtained.

Branches are advised to make note of

the above guidelines / instructions at

the time of granting advances.

Reference No.Adv.423/88 date :

31.5.88

Issuing Department : Management

Services Organization & Methods

Documentation – Advances

Against Stocks – Supplemental

Deed of Hypothecation / Pledge.

Preamble

Branches are at present obtaining the

deeds of hypothecation or pledge

(110A, 109A etc) at the time of

original disbursals as also for any

subsequent enhancements. Some

branches face objection from the

Registrar of Companies, while filing

modification of charge, on the ground

that there is no link between the

principal documents creating original

charge and the subsequent one

seeking the modification. In order to

obviate these difficulties

Supplemental Deeds of

Hypothecation / Pledge are now

prescribed. Instructions for use of

these deeds are provided below.

Operational Instructions

1.1 The following procedure is

applicable in respect of

a. Limits granted to all Limited

Companies (irrespective of

whether limits are collaterally

secured by mortgage of

immovable properties or not)

and

b. Limits collaterally secured by

mortgage of immovable

properties granted to

individuals, proprietary /

partnership firms societies etc.

1.2 Supplemental deeds are to be

obtained in any of the following

three cases and the deed in

respect of each case is prescribed

hereunder.

Enhanced limit with the same

security – F- 110F

Enhanced limit with additional

security – F 110G

Same limit with additional security

– F 110H

1.3 Whenever any enhancement in

limit is sanctioned or any

additional security of movables

are stipulated in respect of

aforesaid categories the

appropriate supplemental deed as

prescribed above should be

obtained and no other

hypothecation or pledge deed is

to be obtained for such

enhancements / additional

security.

1.4 The supplemental deed is

common for both hypothecation

and pledge of stocks / movables.

1.5 All other formalities such as

obtention of DPN, take delivery

letter for pledge, documents from

guarantors, completion of

formalities relating to filing /

modification of charge and the

supplemental narration. In Title

deeds register etc with attendant

formalities should be strictly

complied with.

1.6 A detailed documentation chart is

provided with this circular in

duplicate. Branches should hold

one copy of the chart with the

documentation manual for ready

reference.

1.7 The specimen formats of the

supplemented deeds viz. F 110-F,

110-G and 110-H are enclosed.

Branches should obtain these

deeds on stamp papers of

appropriate values as applicable

for agreements in the particular till

such time the printed forms are

supplied by Printing & Stationery

department.

2.1 In care, the limits are not

collaterally secured by mortgage

of immovable properties in

respect of individuals,

proprietary / partnership firms,

societies etc (other than limited

companies), the aforesaid

procedure is not applicable in

such cases wherever there is

enhancement of limit the

procedure as outlined in

Permanent circular ADV.125/85

dated 24.12.85 should be

followed by closing the old

account and opening new

account with fresh set of

documents for the entire limit.

2.2 In case of borrowers as

mentioned in para 2.1 above if

there is no enhancement in this

but only additional security is

obtained (other than mortgage),

it will be sufficient to obtain

supplemental documents as

mentioned in column of the

enclosed chart and there is no

need to close and open the

accounts.

This is to be read with

Permanent Circular ADV.125/85

dated 24.12.85

This partly modifies Manual on

Documentation

SUPPLEMENTAL DOCUMENTS – APPLICABLE FOR LIMITED COMPANIES

AND FOR LIMITS SECURED BY MORTGAGE OF IMMOVABLE PROPERTIES

Documents to be obtained in case of subsequent enhancement in limit / security

Principal documents at the time of original disbursal

1. DPN

2. F-110A, 110B, F110D, F110E, F-109A (as appropriate)

3. Take delivery / letter for pledge

4. Other documents are appropriate for guarantor and collateral securities

Additional limit with same security

1. DPN

2. F-110-F

3. -

4. 111A from Guarantor for entire amount

Additional limit with additional security

1. DPN for additional amount

2. F-110G

3. Take delivery letter for pledge

4. 111A from guarantor for entire amount

Same limit with additional security

1. -

2. F-110H

3. Take delivery letter for pledge

4. 111A from guarantor for entire amount, if the earlier guarantee signed by

guarantor does not cover entire limits.

All other formalities regarding collateral securities, supplemental narration in title

deeds register and obtention of documents as per chapter X (G) of Bank’s Book of

instructions, should be completed modification of charges should be filed with the

Register of companies within 30 days of execution of documents.

Reference No. ADV 426/88 date :

9.6.88

Issuing Department : Management

Services O & M

Documentation – Use of Standard

Forms and Stamping Procedure

Preamble

Whenever special adhesive stamps

(used in substitution for Non-Judicial

Stamp papers) are not available,

branches merely attach non-judicial

stamp paper with standard

documents like letter of

Hypothecation after mentioning the

loan account number. This procedure

is not correct and such documents

will be deemed to be not duly

stamped.

A document will be said to be duly

stamped when requisite stamp duty is

paid with proper description of stamp.

The various special adhesive stamps

meant for the particular purpose

should be used for that purpose only.

For example, the special adhesive

stamp marked as ‘Brokers Note’

should not be used in promissory

Note or other instruments except a

Brokers Note.

An illustrative description of various

types of stamps tabulated in the

annexure for better understanding.

Branches / offices should be guided

by the following operational

instructions.

Operational instructions

1. Branches should have a

watch over the GL stamp

balance and try to procure the

required special adhesive

stamps / forms duly affixed with

special adhesive stamps and

duly cancelled by the

appropriate authority in advance.

2. Wherever branches are

unable to procure special

adhesive stamps (used in

substitution for non-judicial

stamp papers) they may use

non-judicial stamp paper.

3.1 As per the stamp Rules, a

document should begin on non-

judicial stamp pater and it is

affixation of special adhesive

stamp, the stamp should appear

on the face of the document

therefore, the non-judicial stamp

paper should be made as the

first page and the beginning

portion of the standard format

should be written or typed on it

and such portion from the

standard format should be struck

off under authentication of the

executant’s signature.

3.2 The non-judicial stamp paper

should form part of the standard

format and should be stapled or

stitched so that it appears as the

first page of the document. The

executants should sign each

page of the document including

the non judicial stamp paper.

4. Some branches are enquiring

whether Xerox copies of

standard formats can be used

for obtaining documents when

sufficient number of standard

formats are not available. It is

always advisable to obtain

documents in our standard

printed format. Branches should

take suitable steps for obtaining

the necessary formats from the

Printing & Stationery department

in advance However, for

advances upto a maximum of

Rs.10,000/- in case of utmost

necessity, branches may use

Xerox copies of the standard

formats for documentation,

subject to compliance of the

following requirements.

a. The impression should

be very clear on the pages (this

is very important)

b. The special adhesive

stamp should be affixed on the

Xerox copy and duly cancelled

on the face of the document by

the appropriate authority. (In

case of branches in Tamil Nadu

such authority vests with Branch

Managers). This procedure of

using Xerox copies should not

become a routine affair and it

should be resorted to only in

very rare cases, upto a

maximum advance of

Rs.10,000/-

This is to be read with

Manual on Documentation system &

Procedures – Page 3.

ANNEXURE

Enclosure to Circular Adv.426/88 Dt.9.6.88

Illustrative classification Stamps

STAMPS

Impressed Stamp (Stamp paper)

1. Judicial (used for filing suits in civil courts)

2. Non- Judicial(used for all commercial documents such as agreement, Sale

Deed, Partition Deed, Gift Deed, Settlement Deed, Power of Attorney,

Mortgage Deed, Lease Deed etc.

3. Hundi Paper

Adhesive Stamp

1. Special Adhesive used in place of Non-Judicial Stamp Papers

2. Revenue Stamp

3. Foreign Bill

4. Share Transfer

5. Insurance

6. Notary

7. Consular

8. Broker’s Note

9. Court Fee Label

Reference No. ADV.442/88 dated :

18.07.88

Issuing Department : Banking

Operations

Credit Facilities – Quality of

Advances Documentation

Preamble

Branches / Regional Offices and

Zonal Offices have been advised in

the past through various circulars, the

common defect / errors resulting in

irregularities in the administration of

credit portfolio at the branches and

the branches were instructed to avoid

such errors / defects and lapses to

ensure the quality of the advances

and lapses to ensure the quality of

the advances and enforceability of the

documents. For ready information of

the branches/ Regional and Zonal

Offices, we detail below the gist of

such common errors / defects,

deficiencies and lapses.

1. Terms of sanction are not

complied with

2. Collateral securities are not

perfected i.e. original title deeds

are not deposited, not entered in

the title deeds register – broken

period EC not obtained – Legal

opinion not clear / not obtained –

Insurance on property not

obtained / not held etc.

3. Pre and Post sanction visit /

inspection of the units are not

being conducted

4. Periodical stock statements

are not obtained and not

recorded in case of

hypothecation cash credit

accounts / packing credit

accounts.

5. The date of validity of

documents are not diarised,

Revival letters / debit balance

confirmation letters are not

obtained in time thereby allowing

the documents to get time-

barred, thus disabling the bank

from seeking legal remedy by

way of filing the suit etc.

6. Non recovery of instalments

resulting in mounting overdues.

7. Non-renewal, review of the

credit facilities periodically and

extending credit facilities on

lapsed sanction

8. Stocks / machineries pledged /

hypothecated to the Bank are

not inspected regularly as per

laid down procedures and proper

records are not maintained at

the branches in this regard.

9. Extension of credit facilities far

beyond the powers vested with

the branch managers /

authorized limits / drawing

powers and not reporting such

excess to the controlling offices.

We regret to note that inspite of

repeated instructions the defects /

lapses continue to persists at the

branches resulting in the poor quality

of advances of the Bank exposing the

Bank to undue risks. On an analysis

made of the inspection rating

awarded to the branches, it is

observed that a number of branches

are given unsatisfactory rating under

quality of advances which includes

documentation. It is also evident that

the branch managers do not give

required attention in the follow up and

rectification or irregularities in

documentation with regard to

advances granted by their

predecessors with the result that

irregularities are multiplied year after

year when we want to resort to legal

remedies, we are placed in an

embarrassing situation to find that

many of the documents are

incomplete and imperfect to such an

extent they are not enforceable in the

Courts of Law.

There can be not two opinions in the

perfecting of the documents /

securities before release of the loan /

advances (i.e) before the funds are

parted with. The responsibility of

getting the documents executed

perfectly rests with the branch

management only.

With a view to arrest the tendency of

imported documentation and to

ensure that the documents are taken

correctly atleast from now onwards

the following instruction are given for

strict compliance of branch

managers. The instructions come into

effect from 1.8.88

Operational instructions

1. No advances should be

released without first obtaining

proper documents complete in

all respects.

2. The second in command of the

Branch (i.e) Assistant Manager /

Deputy Manager / Senior Deputy

Manager / Manager / Senior

Manager as the case may be,

should give a certificate to the

Branch Manager before

disbursement of advances that

all the relevant documents for

releasing the facility have been

obtained duty filled in and

completed and signed by the

executants in the capacity

intended. A format of the

certificate enclosed; this

certificate should be obtained in

respect of each loan / advance.

3. Branch Chief Manager / Senior

Manager / Manager / Senior

Deputy Manager / Deputy

Manager should not disburse the

loan / Credit ……….with out

obtaining this certificate.

4. The branches manned by only

one officer (i.e) Manager, the

Manager should himself send

the above certificate to his

Regional Manager.

For any imperfect / complete

documents in respect of credit

facilities released on or after 1.8.88,

the branch chief Manager / Senior

Manager / Manager / Senior Deputy

Manager / Deputy Manager as the

case may be, will be held personally

responsible.

By implementing the above

instructions, it is expected that atleast

the documents obtained in respect of

advances released on or after 1.8.88

will be perfect. Branch Manager

should therefore, concentrate on

rectification of documents in respect

of advances granted prior to 1.8.88.

Branch Manager are requested to

acknowledge receipt of this circular to

their respective Regional Office in the

tear sheet.

This is to be read with

Managing Director’s Circular No.5/82

dated 1.5.1982

Mist Circular No.91 (File 7c) of 1982

dated 7.6.82

Special Circular No. SSI 19of 1982

dated 16.11.82

Managing Director’s Circular No.1 of

1983 dated 15.2.83

Misc. Circular No.22 (File 7e) of 1983

dated 15.11.83

General Manager’s Circular No.21 of

1983 dated 3.12.83

Permanent Circular No. ADV.3/85

dated 4.2.85

Permanent Circular No. ADV.125/85

dated 24.12.85

Reference No. Adv.447/88 dated

08.08.1988

Issuing Department : Management

Services : O & M Department

Personal Overdraft Scheme

Preamble

From time to time, branches may

have faced situations where Cheques

issued by otherwise regular savings

bank customers are presented

without adequate balance. It has now

been decided to permit limited

temporary overdrafts in Savings Bank

Accounts to reliable account holders

in exceptional situations. The

following operational guidelines are

provided for the purpose.

Operational Instructions

1. The customer must be having

a satisfactorily maintained

Savings Bank Account with the

Branch for not less than 6

months.

He / she must be a confirmed

employee in a Govt. semi-Govt.,

Quasi Govt. department or

organization, Public Sector or a

Private sector Organization of

repute.

He / She should have a stable income

with reasonable prospects of its

continuance in the near future.

Members of the staff and their close

relatives (Father, Mother,

Brother, Sister, Children and In

laws) are not eligible for this

facility.

2. The Salary of the customer must

preferable be routed through his

Savings Bank account with the

branch

The amount of overdraft should not

exceed one month’s net salary

as credited to the customer’s

account with the branch or the

discretionary power of the

branch for temporary overdrafts

whichever is less.

The overdraft must be adjusted within

one month from availment.

If the customer desires to have the

overdraft facility of a regular

basis, he / she must be advised

to open a current account and a

temporary overdraft facility may

be considered as per existing

rules.

Interest should be charged at the rate

applicable for temporary

overdrafts and recovered at the

end of the month.

Each debit, which creates or acts to

increase an overdraft, must be

referred to the Branch Manager

in the Cheques Referred

Register. The overdraft when

authorized by the Branch

Manager, should be immediately

noted in the TOD Balance Book

to be maintained separately for

Savings Bank Accounts and the

authentication of Deputy

Manager / Manager obtained at

the end of the day.

Immediately on the occurrence of an

overdraft, the branch should

write to the customer, advising

him about the same and request

him to adjust the same at the

earliest. (a model letter is

annexed) Refer annexure 32)

5.1 The balances in the overdrawn

accounts must be extracted in

the Temporary Overdrafts

Balance Book every day and

checked by the supervising

official in charge of the savings

bank department, and placed

before the Deputy Manager and

Branch Manager for information

and confirmation.

In the General Ledger, the debit

balance should be added to the

savings bank balance on the

liability side in the inner column

and the total extended as

Savings Bank Credit balance

correspondingly, the amount

should be added to overdraft

due to Teller payment and the

Temporary Overdraft in Current

Account in the inner column on

the asset side and extended as

one figure for total overdrafts on

all the three accounts.

Example

CAPITAL & LIABILITY SIDE

2.00 Saving Bank Deposits

2.01 Savings Bank (Excluding NRE) 3,22,733.95 1201

Personal Overdraft 3,200.00

Teller Overdraft 1,000.00 3,26,933.95

2.02 Inoperative SB (Saving Bank A/c) 1202 15,856.25

2.09 Savings Bank-Total (Excluding NRE

Total of 2.01 and 2.02) 1299 3,42,790.20

2.11 NRE Savings Bank Account

Savings Bank Total (Total of 2.09&2.11) 3,42,790.20

Property & Assets side

21.01 Current & Savings Bank CD 3532.60

Account (Debit Balances) SD 3200.00

Teller 1000.00 4101 7,732.50

Overdraft granted in savings Bank Account must be reported individually on

monthly basis in CAF 3 Entries must be listed immediately after listing Current

Account Overdrafts, and must be preceded by the caption personal Overdraft

Scheme. The aggregate amount of such Overdrafts should be reported in

CAF 6 under OTHERS as follows.

No. of Accounts Amount O/s Irregular Account

Under Personal (000 Omitted) No.of A Amount

Overdraft Scheme

Accounts should be classified according to the nature of occupation of the

borrower

Irregular accounts should be reported in CAF 6D

Accounts not adjusted and outstanding beyond 60 days from the date of

granting should be treated as irregular for the purpose of reporting in CAF 6D

Overdraft under this Scheme should not be extended at the Extention Counters.

To Place

…………………………… Date

……………………………

Dear Sir,

Overdraft in your Saving Bank A/c No……………….

We have to-day paid your Cheque No……………….. dated…………

favouring for Rs……………….. (Rupees…………………..only). By payment of the

above cheque, your account stands overdrawn to the extent of Rs……..…

(Rupees……….only). Kindly acknowledge and provide funds to clear the overdraft

at an early date.

Thanking and assuring you of our best attention always.

Yours faithfully,

MANAGER / CHIEF MANAGER

Reference No. AV.449/88 dated 16.8.88

Issuing Department : Industrial Credit

Credit Facilities – Our Bank Ceding Second Charge on Current Assets in

favor of Financial institutions.

Preamble

We are frequently approached by

Financial Institution and other Banks

to cade second charge on current

assets. Generally Term Lending

Institutions insist upon banks ceding

second charge as per the format

furnished by them which contain

clauses detrimental to our Bank’s

interest.

Operational Instructions

To overcome the above shortcoming

our Law Department has drafted a

common format, (as enclosed) to be

furnished by our branch for ceding

second charge on the current assets.

Branches are however, instructed that

it must obtain prior approval of the

competent authority before ceding

second charge on the current asset.

Further our ceding second charge on

the current assets should be on a

reciprocal basis. Hence branches

should only agree for ceding second

charge on the current assets provided

Financial Institutions cede in our favor

second charge on the fixed assets to

secure working capital facilities

extended by us to the company.

Further branches are award that ny

our bank ceding second charge on

the current assets in favor of the

Financial Institutions we cast upon

ourselves the responsibility of

safeguarding Financial Institution

interest also. Our responsibility

towards Financial Institutions includes

informing Financial Institutions, the

Fact that our bank is contemplating

action against the borrower for

realization of our dues and to pass on

the surplus if any to the Financial

Institutions. Hence Branches should

keep with the documents, our letter

ceding second charge in favour of the

Financial Institutions and also make

note of the same in “Document

Execution Register”. Similarly branch

should record the fact the Financial

Institution have ceded second charge

on the fixed assets in favour of the

bank.

Enclosure to PERMANENT Circular

No.ADV.449/88 dated 16.8.88

Draft of the no objection letter to

be given to the borrower in respect

of ceding second charge on

current assets.

Date

To

Name and address of the Borrower

Dear Sir,

Ceding second charge on stock and

book debts

We refer to you request for ceding

second charge in favour of X Bank on

current assets comprising stock /

book debts as collateral security for

their loan / credit facility to the extent

of Rs……………….in this regard, we

write to inform you that we are

agreeable to the aforesaid request.

Our approval is subject to the

following terms and conditions.

1. X Bank shall not be entitled to

call upon us and other paripassu

first charge holder if any

(hereinafter called as first charge

holders) to exercise of enforce

any of the rights under their

securities or otherwise.

2. Second charge created in

favour of X Bank shall always be

subject and subservient to the

first charge on the currents

assets created and / or to be

created in our favour for the

credit facilities both funded and

non-funed extended / to be

extended by us.

Reference no. ADV.451/88 date

17.8.88

Issuing Department : Management

Services : O & M

Penal Interest on Advances :

Documentation

Preamble :

Branches have been instructed to

charge penal interest on advances as

per provisions contained in

Permanent Circular No. ADV.306/87

dated 25.5.87 read with GM Circular

No.12 of 1977 dated March 26, 1977

(reproduced in reference circular vol.

II page No.92) it has been decided to

incorporate a suitable clause in all the

loan documents. For the purpose

branches should follow the procedure

as laid down hereunder.

Operational Instructions

1. While arrangements are being

made to print the documents for

various advances incorporating

a suitable clause relating to

levying of penal interest, until

them branches should obtain a

duly singed declaration as per

format enclosed along with the

loan/security documents and

attach in securely to the present

document formats to form an

integral part thereof (branches

may note that penal interest

clause is already available in the

existing PL^, PL& and F 110C),

This declaration should be

obtained for all loans disbursed

in future till such time the penal

interest clause is included in all

loan / security documents.

2. In respect of existing advances

branches should intimate the

borrower(s) in writing while or

before levying penal interest,

vide permanent Circular

No.ADV.306/87 dated 25.6.87

3. All other instructions in this

regard remain unchanged.

This is to be read with

1. GM Circular no.12 of 1977

date March 26,1977.

2. Permanent Circular No.

ADV.306.87 dated 25.6.87

Reference No. ADV.464/88 dated

7.10.88

Issuing Department : Management

Services O & M

Personal Loan–Revision of Form PL8

Preamble

As per our Book of Instructions Part V

(f), Chapter X (I), the documentation

for Personal Loans to third parties

includes a letter of undertaking (Form

PL 8) to be taken from the borrower

which should authorize the Bank to

recover the monthly instalments by

debiting SB / CD Account as the form

PL 8 presently in use does not

contain this authority, we have

modified the same and the following

operational instructions are laid down.

Operational instructions

1. A format of the amended Form

PL 8 is enclosed.

2. Branches should obtain from

PL 8 from the borrowers by

incorporating the second part of

first para as given in the format,

till such time the existing stocks

are exhausted and the revised

form is sent to them.

This is to read with

Para V(f), (I) of the Bank’s Book of

instructions

Reference No. ADV.496/89 date

6.2.89

Issuing Department : Banking

Operations

Advances Against Indira Vikar

Patras

Preamble

Branches and controlling offices were

advised, vide our Permanent Circular

No.ADV.295/87 dated 5.6.87that

advances against Indira Vikas Patras

can be granted as per the powers

vested with various layers of authority

and as indicated against term VIII

“Secured Advances other than

against shares and Jewels” (Page 3 &

Page 11) of the current discretionary

Power Booklet, subject to imposition

of any restriction on non-priority

advances. The terms and conditions

to be observed were also spelt out in

detail in the said circular.

Operational instructions

We have now received a

communication from Reserve Bank of

India, Department of Banking

Operations and Development, Central

Office, Bombay that they have been

receiving representations from the

public that some branches of

commercial banks are not granting

loans against security of Indira Vikas

Patras on the plea that they do not

have specific instructions from their

higher authorities.

In the circumstances, we reiterate

that branches / controlling offices can

grant advances against these patras

strictly adhering to the instructions

given hereunder

1. Besides DPN, an application

cum security delivery letter as

per Annexure A enclosed should

be obtained from the borrower.

2. A reasonable repayment

programme is to be fixed

depending upon the category of

the borrower and the purpose of

advance, etc. The repayment

period may be fixed taking into

account the maturity date of the

Patras. Accordingly, a letter of

repayment (F378) is also be

obtained from the borrower.

3. A margin of 25% on the paid

up value of the patras inclusive

of the interest accrued for each

completed year from the date of

issue is to be maintained. In this

connection, please refer para 4

page 2 of our circular

ADV.295/87 dt.5.6.87

4. The interest is to be charged

for this type of advances as

stipulated in our Permanent

Circular ADV.473/88 dated

14.11.1988

5. Indira Vikas Patras are

payable only on the due date

and premature closure is not

permitted. They are payable on

maturity to the holder and no

endorsement is required. As

these Patras are issued without

mentioning the name of the

purchaser, no lien can be

registered. As such, Branches

should be very careful for the

safe custody of the Patras lodge

to them as security. We repeat

that application letter as per

specimen enclosed should be

obtained before granting the

advance. As the value of the

certificates are payable to the

holders on maturity, there is no

need to take a separate letter of

authority.

We wish to make it clear that the

above instructions should be

scrupulously, followed and branches

should not give room for any

complaint from any quarters.

This is to be read with

Permanent Circular No. ADV.295/87

dated 5.6.1987.

ANNEXURE A

Enclosure to PERMANENT Circular No. ADV.496/89 dated 6.2.89

From

To

The Manager / Chief Manager

Indian Overseas Bank

………………………Branch

Sir,

Application for a loan against the security of Indira Vikas Patra

I/We hereby apply for a loan against the security of Indira Vikas Patra held by

me/us. I/we hereby agree to abide by the rules and regulations of the Bank. Please

grant me/us a loan of Rs………………..for the purpose of ………………….Please

take delivery of the under noted Indira Vikar Patra held by me/us, the Title over

which stands transferred to you by this delivery. I/we request you to hold the said

Indira Vikas Patras as security for all moneys now owing or which shall at any time

hereafter be owing from me/us and or/from……………………either separately or

jointly with any other person or persons and either as principal debtor or as surety

for any other person or persons, including interest, commission, charges ets.

I/we hereby authorize you to sell / encash the said Indira Vikas Patras at such time

and price as you in your absolute shall think fit and apply the proceeds after

defraying the expenses attending the such sales / encashment, towards

satisfaction of moneys owning from me/us and /or from any manner whatsoever.

Particulars of Indira Vikas Patras Delivered

SL.No. Printed Date of Issuing Purchase Maturity Date of

Number Purchase Post Office Price value Maturity

Signature of the Applicant(s)

Reference No. ADV.534/89 date

3.6.89

Issuing Department : Banking

Operations

Advances Against National

Savings Certificates

Preamble

Branches are aware that they have

been instructed to grant advances

against National Savings Certificates

after retaining a margin of 25%

Operational Instructions

We have now been advised by

Reserve Bank of India that Banks

may continue to grant advances

against the security of National

Savings Certificates subject to the

normal terms and conditions.

In this connection, branches are

requested to strictly adhere to the

procedure outlined in our following

circulars.

1. Misc. Cir No.119 (File 7c)

dated 8.7.82

2. Misc. Cir No.221 (File 7c)

dated 31.12.83

3. PER Cir. No. ADV 109/85

dated 21.10.85

4. PER Cir. No. ADV 287/87

dated 13.5.87

5. PER Cir. No. ADV 316/87

dated 19.7.87

The violation of the normal terms and

conditions prescribed by Reserve

Bank of India in this regard will create

complication at the time of

encashment of National Savings

Certificates.

Further some of our branches have

sought clarification with regard to the

discharge of the National Savings

Certificates.

With regard to this, we wish to clarify

as under.

1. Borrowers should not

discharge the National Savings

Certificate if they are pledged as

security.

2. At the time of

encashment/enforcement of the

National Savings Certificate(s),

the Certificate(s) is / are to be

discharged by the Bank, as the

Bank, being the pledge, is

deemed to be the holder of the

Certificate (as per rule No.16(i)

of the National Savings

Certificate Rules, 1982) and this

has been duly registered by the

concerned post Offices in their

books.

If borrowers adjust the loan availed

from the Banks before maturity date

of the Certificates the Certificates are

returned to them and they are entitled

to encash then same by discharging

them as holders.

Branches are advised to make a note

of the above points and follow the

guidelines scrupulously.

This is to be read with

1. Misc. Cir. No. (File 7c) dated

9.4.84

2. PER. Cir. No. ADV 304/87

dated 24.6.87

3. PER. Cir. No. ADV 355/87

dated 26.10.87

4. PER. Cir. No. ADV 383/88

dated 13.2.88

5. PER. Cir. No. ADV 391/88

dated 27.2.88

Reference No. ADV.541/89 date

23.6.89

Issuing Department : Industrial

Credit

Advances on Consortium basis-

single window concept for lending

(SWCL) by Banks – Documentation

Preamble

Reserve Bank of India (RBI) is of the

view that borrowers availing

themselves of credit facilities from a

consortium of banks, should not be

put to inconvenience through delays

for having to deal with several banks,

execution of varied types of

documents etc, and the banks should

endeavor to move towards a ‘Single

Window Concept’ regarding delivery

of credit, execution of documents

submission of data and recoveries.

The matter was referred to a

Committee of Bankers under the

Chairmanship of Shri.V.Mahadevan,

Deputy Managing Director, State

Bank of India for an indepth

examination of all relevant issues.

The committee which submitted its

report took note of the fact that the

‘Single Window’ approach is already

being adopted in the matter of

appraisal. It however, felt that a host

of operational difficulties are likely to

be encountered in following similar

approach for day-to-day

disbursements and recoveries. It has,

therefore, recommended the ‘Single

Window’ approach only for

documentation and first

disbursement.

The recommendations of the

Committee have been examined by

RBI and its specific instructions for

implementation of those which have

been immediately accepted are

furnished in our Permanent Circular

No.ADV.459/88 dt.3.10.88

We have now received from RBI, the

model documents and also certain

guidelines on using them. It is our

intention that all RO/Zos should be

conversant with the revised

documentation procedure so that they

could effectively guide their branches

in turn about the new documentation

procedure. We have forwarded by

separate mail the following model

documents received from RBI to all

RO/Zos.

1. Board Resolution to be passed

by the Borrower Company

2. Resolution to be passed by the

member banks for appointing the

First Lead Bank and Second

3. Resolution to be passed by the

Second Lead Bank

4. Letter of authority to be given

by the member banks to the First

Lead Bank

5. Letter of authority to be given

by the member banks to the

Second Lead Bank

6. Working capital consortium

agreement between the

borrower and the Participating

Banks to be signed by the

Borrower, the first Lead Bank for

self and on behalf of other

banks.

7. Joint Deed of Hypothecation to

be executed by the Borrower

company in favour of the

participating Banks – to be

signed by the borrower only.

8. Inter-se Agreement between

the Participating Banks - to be

executed by the consortium

Banks only.

9. Undertaking letter from the

Borrower company for creating

Second charge on fixed Assets –

to be obtained by the First Lead

Bank.

10. Revival Letter (RL) to be

signed by the Borrower company

– to be obtained by the First

Lead Bank.

Operational Instructions

Guidelines for execution of joint

documents

For smooth implementation of revised

joint documentation procedures

suggested by RBI, we suggest the

following guidelines

1.1 The purpose of standardizing the

joint documents for working

capital finance is to avoid delay

in drafting and seeking approval

from other member banks. As

these documents are verified by

IBA Legal Committee and

accepted by RBI, it may not be

necessary to get the approval of

these draft documents from each

member bank before execution.

Wherever necessary,

appropriate changes can be

made in these model

documents, in consultation with

other member banks, provided

such changes do not contribute

to any delay in execution of joint

documents.

1.2 To start with the joint

documentation, the member

banks should give separate

Letters of Authority to the First

Lead Bank and Second Lead

Bank as per the model

documents provided by RBI

(Model Documents No.4&5). The

letter contains the authority for

the First Lead Bank to sing the

Working Capital Consortium

Agreement (Model Document

No.6) and joint Deed of

Hypothecation(Model Document

No.7) on behalf of all the

members banks. These two

documents will be signed by the

Borrower and the First Lead

Bank for themselves and on

behalf of other member banks.

The Second Lead Bank will

exercise such powers in the

event that the First Lead Bank is

unable to act for whatever

reasons.

1.3 The Working Capital Consortium

Agreements does not create any

charge or security. It contains

only the details relating to the

leading aspects such as

allocation of limits among banks,

the rate of interest, commission

etc. the joint Deed of

Hypothecation is a security

document whereby the borrower

creates a charge on stocks and

book debts for the working

capital facilities granted by

consortium banks. It is the duty

of the First Lead Bank to file

charge with the Registrar of

Companies on the basis of Joint

Deed of Hypothecation within 30

days from the date of its

execution

1.4 The inter-se-Agreement (Model

Document No.8) will have to be

signed by all Participating Banks

through their representatives.

The Lead Bank should

necessarily convene a

consortium meeting for

execution of inter-Se Agreement.

This is an Agreement between

the Participating Banks, which

can be executed after execution

of (i) Working Capital

Consortium Agreement and (ii)

Joint Deed of Hypothecation.

1.5 While executing the three

documents viz. Working Capital

Consortium Agreement, Joint

Deed of Hypothecation and

Inter-Se Agreement, care should

be taken to execute them with

sufficient number of copies

depending upon the number of

executants. The original should

be stamped with adequate

stamp duty and all copies should

be stamped with required stamp

duty as applicable for ‘Duplicate

copy’ in the concerned State.

Where the documents are

executed. Both the original and

copies should be signed by all

the executants.

1.6 In all existing consortium, where

we are leaders, and where the

joint documents are not so far

executed, the RBI Model

documents should be

implemented immediately. After

ensuring from the records of

Registrar of Companies that

there is no intermediary charge

of current assets and also after

taking a letter from the borrower

company confirming this

position, the charges so far filed

with Registrar of Companies

based on individual documents

may be satisfied and

simultaneously fresh charge may

be files based on Joint Deed of

Hypothecation.

1.7 As per RBI guidelines, the model

documents may have to be

adopted in existing consortia at

the time of renewal and / or

enhancement of the existing

limits at the earliest opportunity.

However, no separate draft

model supplemental Joint Deed

of Hypothecation has been

provided by RBI. If the joint

Deed of Hypothecation are

already executed in the existing

consortium led by us, we may

use the RBI model joint Deed of

Hypothecation(Model Document

No.7) as the Supplemental

Document by adding the

following para at the end.

“This joint Deed of

Hypothecation may be treated

as Supplemental Document to

the Principal joint Deed of

Hypothecation

dt………….executed by the

Borrower in favour of the said

Banks and the working capital

facilities mentioned in the

Principal joint Deed of

Hypothecation shall be treated

as enhanced to the level of

working capital facilities

mentioned in this Supplemental

Document”.

After adding this para in the

Model Document No.7,

modification of charge may be

filed with the registrar of

companies.

In the consortium meeting itself

this procedure may be explained

to the member banks. For any

reason, if all members banks

desire to file fresh charge after

satisfying the existing charge

based on the earlier joint Deed

of Hypothecation, the same

procedure as laid down in para

1.6 should be followed.

1.8 It will be the duty of the Leader

Bank to the take RL from the

borrower to keep the Joint

Documents alive. This should be

taken within 3 years from the

date of the Working Capital

Consortium Agreement,

subsequent RL also should be

taken within 3 years, of earlier

RL when we act as Lead Bank,

this important documentation

formality should be compiled

with.

Other General Guidelines of

Documentation

The Working Capital Consortium

Agreement (Model Document

No.6) should be stamped as an

Agreement and as well as

indemnity. For example, in

Tamilnadu the stamp duty on

agreement is Rs.2.50p and

indemnity is Rs.30/-. Therefore

when the document is executed

in Tamilnadu, it should be

stamped with stamp duty of

Rs.32.50. Depending upon the

rate of stamp duty in each State,

this document should be

stamped with aggregate stamp

duty payable on an Agreement

and indemnity.

The joint Deed of Hypothecation

should be stamped as on

agreement as well as Power of

Attorney. In Tamilnadu, the

agreement attracts stamp dury

of Rs.2.50 and Power of

Attorney attracts stamp duty of

Rs.20/- Hence if the documents

is executed in Tamilnadu, it may

attract a stamp duty of Rs.22.50.

Similar procedure should be

followed in other states

depending upon the prevalent

stamp duty.

The inter-Se Agreement should

be stamped as an agreement.

The model documents No.6,7 & 8

deal with all working capital

facilities both funded and non

funded i.e., Cash Credits. Bills,

Cheque Prucase, Letter of

Credit, Letter of Guarantee and

Bill Co-acceptance Limits, The

Model document No.7 creates a

security on stocks and books

debts for the entire working

capital facilities granted by the

consortium banks. However, the

model documents do not contain

the formats of indemnity to be

provided by the member banks

to the Leader Bank, which is

issuing the Letter of Guarantee

or Letter of Credit including the

shares of all members banks.

When we act as Leader Bank

and in the event of issuing

LG/LC including the shares of

other banks, we may have to

obtain indemnity from other

member banks as per the format

given in our Manual on

consortium Advances.

Branches should take LC application

as and when issuing Letter of

Credit. Similarly, before issuing a

Letter of Guarantee, counter

indemnity should be obtained

from the borrower in F 286 while

also issuing indemnity to the

Lead Bank to the extent of our

share in the LC/LG issue by

them counter indemnity should

be obtained from the borrower in

F 286, in respect of Bills limit

branches may continue to hold

F-107 since it does not relate to

any particular limit.

For releasing the CC limit, after

taking joint Deed of

Hypothecation as per model

documents no.7, branches need

not take individual documents

such as DPN, F16 & F110A. The

Lead Bank should take RL as

per Model documents No.10 to

keep alive the joint Deed of

Hypothecation. However, the

member banks should continue

the procedure of taking

periodical Confirmation of

Balance from the borrower in the

cash credit account as per their

usual procedure.

The First Lead Bank should co-

ordinate with Term lenders for

creation of second charge on

fixed assets as collateral

security, if it is so decided by

consortium members.

The above guidelines are applicable

where we are the Leader of

consortium. In other cases,

whether we are only

Participating Bank, the model

documents No.4,5 &8 alone

have to be executed with regard

to resolution (Model Document

No.2) to be passed by member

banks, we intend to get an

Omnibus resolution passed by

our Board and we shall circulate

to RO/ZO the specimen

resolutions, authorizing

CMD/ED/GM/DGM/AGM/ZM/RM

to appoint First Lead Bank and

Second Lead Bank.

Branches who are handling

consortium advances where we

are the Leader of the consortium

are now advised to contact the

Regional / Zonal Offices for

specimen documents and

necessary guidance to

implement the new

documentation procedure. In the

case of other consortium

advances, the branches may

contact their RO/ZO as and

when the Leader of the

consortium approaches them for

revised documentation

procedure.

Procedure for making first

disbursement by the Leader

Bank.

In earlier directives, RBI had

advised that the Leader Bank in

all consortium arrangements

should have the authority from

other members banks to release

the first disbursement. In this

regard a reference is invited to

our Permanent circular No. ADV

459/88 dt 3.10.88. We quote

below the relevant portion of the

circular.

It has been observed that some

banks take longer than the two

months period envisaged for

conveying their format sanction

to the lead bank and this results

in delayed disbursement of

credit to the borrower. With a

view to avoiding delay and

inconvenience to the borrowers,

the lead Bank in all consortium

arrangements should have the

authority from each of the other

member banks to make

available their shares of the

entire / enhanced limits if latter’s

decision is not conveyed to the

lead bank in time. In such cases

the member, on whose behalf

disbursement is made, should

reimburse the Lead Bank

immediately on receiving its

advice. If there is delay beyond a

period on one week in effecting

such reimbursement, the Lead

Bank would be entitled to charge

the delaying bank a penal

interest of 2% p.a. for the entire

period of delay. Disbursement by

the Lead Bank would be in

accordance with the immediate

needs of the borrower. After the

first disbursement as above, the

customer should be allowed to

operate his accounts with

different members banks

according to his requirements

subject to the limits allocated to

them”.

The Model documents received

form RBI do not contain a format

of such Letter of Authority to be

given to the Lead Bank by other

consortium member banks for

purposes. The lead Bank should

also obtain from the borrower

such documents as are

absolutely necessary to protect

its interest before making such

disbursements on behalf of the

other consortium members.

Keeping in view of the above RBI

directives, we suggest the following

guidelines for making first documents

by us when we act as First Lead

Bank.

a. The sanctioning

authority would advise the

branch to release the first

disbursement on behalf of our

bank as well as on behalf of

members banks.

b. Letter of authority

should be obtained from all

consortium banks as per

obtained from all consortium

banks as per the format provided

in the annexure (This is not a

model documents furnished by

RBI. This is a letter drafted by us

on the basis of RBI guidelines).

c. Individual documents

such as DPN, F 110A etc as per

our usual procedure should be

taken for the entire amount of

first disbursement. Charge

should be filed with Registrar of

Companies within 30 days from

the date of execution of

documents other formalities like

passing of Resolution should be

complied with by the borrower

company.

d. On execution of joint

document as per RBI model

documents and on receiving the

share of members banks, the

first disbursement account may

be closed and satisfaction of

charge may be filed with

Registrar of companies.

e. Separate cash credit

account should be opened for

our Bank’s share on execution of

joint documents. The procedure

laid down in the circular under

the guidelines for execution of

joint documents should be

followed at the time of execution

of joint documents.

f. The same procedure

should be adopted for releasing

any enhanced portion of the limit

agreed in the consortium by

member bank.

g. The procedure for first

disbursement may be adopted

wherever there is like hood of

delay in execution of joint

documents as per RBI Model

documents.

This circular may be read with the

following earlier circulars

1. Permanent ADV 324/87

dt.11.8.87

2. Permanent ADV 459/88

dt.3.10.89

ANNEXURE

Annexure to PERMANENT circular No. ADV 541/89 dated 23.6.1989

For branch information

only. Not to be

reproduced in the format

given to the member

banks

Letter of Authority to be given by the member banks is

accordance with RBI directives on ‘Single Window

concept’ authorizing the Leader Bank to make

available their share of the entire enhanced working

capital limits to the borrower.

(Note : This letter of Authority is different from Letter of

Authority given in RBI model documents for members

banks authorizing the Leader Bank to execute the

working capital consortium agreement and Joint Deed

of Hypothecation

LETTER OF AUTHORITY

To

Indian Overseas Bank

…………….Branch

Dear Sir,

Consortium Advance – RBI guidelines on

“SINGLE WINDOW CONCEPT”

a/c M/s………………….

With a view to avoid delay and inconvenience to the above borrower, your Bank as

First leader of the consortium, have our unconditional authority to make available

our share of the entire / enhanced limit agreed by us in principle in the consortium

meeting(s) if our sanction is not conveyed to you in time i.e., within two months

form the date of the concerned consortium meeting.

We shall reimbursement you immediately the amount of our share with up-to-date

interest till the date of reimbursement of receiving your advice and incase of any

delay beyond one week in effecting such reimbursement to you, we shall

reimburse the amount along with an additional interest at 2% p.a. for the entire

period of delay and we shall also keep you indemnified against any loss in

connection with releasing of our share of the working capital facility to borrower.

We shall forward you soon the Letter of Authority for executing the Working Capital

Consortium Agreement and Joint Deed of Hypothecation on our behalf, if it is not

yet forwarded to you. Till execution of these two joint documents, please hold the

individual documents and security taken by you so far, on our behalf also in

respect of our share.

Thanking you,

Yours faithfully,

For …………….Bank

Reference No. ADV.548/89 dated

20.07.1989

Issuing Department : Banking

Operations

Grant of Advances Against the

Security of Kisan Vikas Patras

Preamble

Consequent to a few enquiries made

by some branches / Regional / Zonal

Offices regarding granting of Loans

against “Kisan Vikar Patras” the

matter was referred to Reserve Bank

of India, and we have since received

a communication from Reserve Bank

of India. Department of Banking

Operations and Development, Central

office, Bombay, Vide Ref. DBOD. No.

BP, BC136/C469(44)-89 dated 8-6-

1989, that commercial banks may

sanction loans against these

securities, and that the grant of

advances against the security of

Naitonal Saving Certificates would be

applicable, mutatis mutandis , in the

case of Kisan Vikas Patras, also.

Operating instructions

Loan against Kisan Vikas Patras may

be granted after taking into

consideration the purpose, individual

merits and other general norms, as

per powers vested with various layers

of authority and as Indicated against

item VIII “Secured Advances other

than against shares and Jewels”

(page 3 and page 11) of the current

discretionary powers booklet, subject

to imposition of any restriction on

non-priority advances.

Branches / Controlling Offices can

grant advances against patras strictly

adhering to the instruction given

hereunder.

1. Please refer our Misc. Circular

No.60 (File 7c) of 1984 dated

9.10.1984 regarding format of

application for transfer, DPN etc.

A letter of authority (F 525

revised) as per specimen

enclosed should also be

obtained.

2. Branches / Controlling offices

are advised to note that the

normal terms and conditions for

registering the Bank’s lien and

that the partras are required to

be transferred as security to the

Bank by an endorsement by the

concerned post office of issue

after collecting the prescribed

fees and executing a forms

prescribed by Government of

India in this connection. Any

advance without the prescribed

procedure as stated above, will

not bind the post office for any

liability / payment.

3. A reasonable repayment

programme is to be fixed

depending upon the category of

the borrower and the purpose of

advances etc. The repayment

programme is to be fixed taking

into account the maturity date of

the patras and F 378 is also to

be obtained from the borrower.

Patras are payable on due date

and premature closure is not

permitted.

4. A margin of 25% is to be

retained on the Original

investment without taking into

account the accrued interest.

5. The interest is to be charged

for this type of advance as

stipulated in our PERMANENT

Circular No.ADV473/88 dated

14.11.1988

We wish to make it clear that the

above instructions should be

scrupulously followed and branches,

should not give room for any

complaint from any quarters.

This is to be read with

1. Misc. Cir. No.60 (File 7C)

dated 09.04.84

2. PMT. Cir. No. ADV.287/87

dated 13.05.87

3. PMT. Cir. No. ADV.355/87

dated 26.10.87

4. PMT. Cir. No. ADV.383/88

dated 13.02.88

5. PMT. Cir. No. ADV.534/89

dated 03.06.89

Reference No. ADV.573/89 dated

20.11.1989

Issuing Department : Priority

Credit (Agri.)

Agricultural Advances –

Documentation – Letter of

Hypothecation

Preamble

Presently branches are obtaining

different letters of Hypothecation

forms Viz. F 364 for Hypothecation of

Live stocks. F369 for Hypothecation

of Existing of future crops and F 389

for Hypothecation of Agriculture

Machinery, Vehicles, Tractors Boats

etc. In order to reduce the multiplicity

of forms the existing three forms have

been combined into a single letter

Hypothecation viz F 110(i) as per

specimen enclosed.

Further, in order to have uniform

documentation procedure for all term

loans, it has been decided to

dispense with obtention of DPN for

agricultural term loans also.

Operational instruction for use of this

form are obtained hereunder.

Operating instructions

1.1 For all agricultural advances,

irrespective of type and purpose

of loan, branches should now

obtain the letter of

Hypothecation only in form F

110 (i) which will be common for

all such advances (This is in lieu

of the existing forms 364, 369

and 389).

1.2 Branches should fill in only the

relevant portions applicable to

the type of advances for which

the facility is being granted.

Portions not applicable may be

scored across.

1.3 Care should be taken to record

the details of the securities in the

relevant schedules viz. Schedule

A for Crop Loans Schedule B for

advances against

Goods/Machinery etc. Schedule

C for advances against Live

stock.

1.4 Where the livestock/machinery

etc., will be acquired in future

and for this reason, the borrower

is unable to furnish the details in

the schedule as on the date of

executing the letter of

Hypothecation, a letter from the

borrower furnishing the details

should obtained in the format

enclosed with Letter of

Hypothecation as soon as the

assets are purchased. This letter

will form part and parcel of the

Letter of Hypothecation.

Wherever equitable mortgage of land

is contemplated documents

pertaining to the same viz F 379,

F416, F417 as applicable should

be obtained in addition to the

combined letter of Hypothecation

form F 110(i).

Wherever the customer is not in a

position to create an equitable

mortgage, the mortgage deed in

form F512 (revised vide CO

Permanent circular No.

ADV.272/87 dated 20.03.1987)

should be obtained and

registered with the Sub Registrar

of the Prescribed authority of the

state.

Wherever loan / advance against

Hypothecation of crop with

registered mortgage of land in

contemplated it would suffice if

the branches obtain only Form

F512 (revised vide CO

Permanent circular No.

ADV.272/87 dated 20.03.1987).

As the revised form F512

contains a clause for

Hypothecation of crops, it may

not be necessary to take a

separate letter of Hypothecation

of crops over and above the

revised F512.

3.1 wherever the advances are

covered by mortgages, the

procedure as given in

Permanent ADV Circular 219/86

dated 29.09.86 should be

followed for extending the period

of limitation of mortgage.

3.2 By dispensing with DPN in the

case of Agricultural term loans,

branches should not be under

the impression that they need

not take Revival letters /

Confirmation of Balances.

Branches should continue to

obtain revival letters in Form 301

(revised) (from borrowers) and

301-B (from Guarantors) as

prescribed in Misc. Circular 67

File 7(b) of 1984 dated

19.12.1984. Branches should

also obtain confirmation of

balances from both the

borrower(s) and guarantor(S).

When there is a holiday period of

more than 3 years in the case of

development loans of plantation

loans, Revival Letters can be

obtained within 27months from

the due date of first installment.

4. The Combined Hypothecation

deed in Form 110(i) provides an

enabling clause, for rephrasing

the repayment programme and /

or conversion of one type of loan

into another type. Should a

situation arise where the

branches may have to grant

concessions on crop loans and

rephasement of term loans on

account of natural calamities,

this clause provides for such

revisions, subject however to

separate documentation.

Branches should note that any

such concession or

rephasement should be made

only with the approval of the

sanctioning authorities.

5. Other documentation

procedures remain unaltered.

6. A detailed chart showing

documentation for the various

type of agricultural advances is

enclosed in duplicate, one copy

of which may be kept with the

Manual on Documentation.

7. Branches may indent their

requirement of the new forms to

Printing & Stationery

Department, Central Office.

8. Branches may use the existing

forms 364, 369 and 389 till such

time the new forms are supplied

to them.

This is to be read with

1. Co. Misc. Circular No.67(File

7B) dated 19.12.1984

2. Permanent Circular ADV

219/86 dated 29.09.1986

3. Permanent Circular ADV

272/87 dated 20.03.1987

This partially modifies Manual on

Documentation Systems and

Procedures : Pages 187 to 191.

Reference No. ADV 592/89-90 dated

28.02.1990

Issuing Department : Management

Services O & M

Documentation – Procedure for

creation of Second Charges of

fixed assets

Preamble

Advances are secured with varied

types of securities depending upon

the nature of credit facility and

availability of security. Quite often, it

is necessary to have a second charge

on fixed assets, either as prime

security or collateral security. When

we have granted Term Loan secured

against fixed assets, we have to

make such fixed assets as collateral

security for the working capital

facilities also (Misc. Circular No.47

(File 7C) of 83 dated 16.03.83).

When the fixed assets are already

mortgaged to another Bank or

Financial institution and our sanction

stipulates second charge on it for our

working capital facilities, their written

consent should be obtained for

ceding a second charge in our favour.

Some of our branches are keeping

only such consent letters with an

impression that a second charge has

been created on the fixed assets by

virtue of those letters. Mere getting of

consent letter from the first charge

holder will not amount to creation of

second charge. The purpose of this

circular is to prescribe the guidelines

for creating second charge on fixed

assets of the borrower.

Operational instructions

1. Acceptable of second charge

on assets as collateral security

for advances shall be specifically

stipulated by the concerned

Sanctioning Authority viz

RO/ZO/CO and shall not be

applicable to advances granted

under the discretion of Branch

Managers.

2. Fixed assets will normally

include land, building, fixtures,

fittings, plant and machinery.

When a machinery is attached to

the earth permanently, it is

construed as immovable

property and when the same

machinery is not so attached to

the earth, it is construed as

movable property therefore for

creation of a charge on fixed

assets including machinery. We

may have to get mortgage as

well as hypothecation of

machinery On the same principle

of creation of second charge on

fixed assets it includes

machinery the charge mortgage

already created in favour of first

charge holder should be

extended and we may have to

take hypothecation of machinery

also for the concerned limits.

3. As a first step, a consent

letter / No objection letter form

the first charge holder either

addressed to the borrower of

Bank should be obtained for

extending second charge on

fixed assets for facilities granted

by the Bank. Normally the first

charge holder will address the

consent letter to the borrower

added with some conditions.

Thereafter, hypothecation deed

will have to be obtained by Bank

creating second charge on

machinery. Then an

authorization letter should be

sent by the Bank to the first

charge holder requesting them

to act as agent for the purpose

of extending the mortgage.

4. in order to extend the

mortgage by way of equitable

mortgage, the borrower should

call at the office of the first

charge holder and authorize

them to continue to hold the title

deeds on behalf of the Bank also

as continuing collateral security

for the working capital facilities

or any other facilities granted / to

be granted by the Bank

subsequently, the borrower

should confirm the

representation by writing a letter

to the first charge holder with a

copy endorsed to the Bank

Based on such representation

and the letter received form the

borrower, the first charge holder

should confirm in a letter

addressed to the Bank that the

mortgage has been extended in

favour of the Bank.

5. When the borrower is a limited

company, Board resolution

should be passed authorizing a

Director to extend the

mortgage and execute

necessary documents as may

be required by the bank for the

purpose of creating a second

charges on the fixed assets.

6. The extended mortgage will

cover the fixed assets such as

land, building, fixtures, fittings,

plant and machinery (fixed). In

order to have a second charge

on movable machinery, it may

be necessary to have

hypothecation of machinery for

the concerned limits as stated

in para 2 above. When any of

the working capital limits such

as cash credit / packing credit

is already secured by stocks

by a hypothecation deed F.

251.B/F. 110A a supplemental

hypothecation deed in F-110H

should be obtained for

securing machinery (F-110H is

furnished in PERMANENT

Circular no.ADV.432 dt

31.05.88). In respect of other

working capital facilities, for

which there is no earlier Letter

of Hypothecation, F110-E

should be taken for the

aggregate of such limits

mentioning therein in the

schedule as;

“All present and future

machinery of the borrower

including vehicles at the factory

premises or else where”

In respect of limited company

borrower, modification of charge

should be filed based on F-110-

H in respect of limits for which

charges have been already filed

on stocks. In respect of other

limits, fresh charge should be

filed based on F110-E.

On extension of mortgage also,

these charges may have to be

modified.

7. In order to put a notice of our

Bank holding the second charge

on movable assets, branch

should arrange for display of a

hypothecation board with

following words at the business

premises / factory of borrower,

after obtaining the consent of the

first charge holder.

The stocks / Goods in this

premises are hypothecated to

1……………..Bank (Name of the

first Chargeholder)

2. Indian Overseas Bank by way

of second charge”

8. We are giving the following

formats as annexure to this

circular.

1. Authority letter to be given by

the Bank to the first charge

holder.

2. Title Deed Narration

(Memorandum of Entry)

which may be entered in the

Title Deed Registration of the

chargeholder.

3. Confirmation letter to be

written by the borrower to the

first chargeholder mentioning

therein the extension of

mortgage created based on

the oral representation made

earlier.

4. Letter from the first charge

holder to the Bank confirming

th eextension of mortgage by

way of second charge in

Banks favour.

9. It should be borne in mind that

we will be dealing with various

Financial Institutions / Bank, who

have first charge on fixed assets

and there will not be uniformly

among the procedure and

formats adopted by them. If the

first charge holder requires any

modification in the format

suitable amendments may be

made in consultation with

RO/ZO.

there is no uniform procedure among

the State Financial Corporations

and Financial institutions in the

procedure adopted for extension

of mortgage in favour of the

second charge holder. All India

Financial Institutions like IDBI,

IFCI and ICICI are having their

own standard formats of title

deed narration for extending the

mortgage. Most of the State

Financial Corporation are not in

the habit of maintaining any title

deed register for the purpose of

entering title deed narration. We

are second charge holder cannot

compel such financial

corporation to enter title deed

narration.

When the first charge holder Financial

Institution enters title deed

narration (Memorandum of

Entry), a true copy of the title

deed narration, certified by the

first charge holder institution

may be obtained for branch

records. In other cases, where

the first charge holder

institution / Financial corporation

does not enter any title deed

narration the borrower many be

requested to endorse a copy of

his confirmation letter

(evidencing the extension of

mortgage) addressed to the first

charge holder or in the

alternative, the first charge

holder institution may write a

letter to the branch enclosing a

true copy of the confirmation

letter received from the

borrower. This should be kept

with the branch records as a

proof for extension of the

mortgage.

11.The first charge holder will not

generally disturb the title for

the purpose of extending the

mortgage. However, very few

State Financial Corporation

are in the habit of sending the

original title deeds directly, to

the banks for the purpose of

creation of second mortgage.

In such cases, the borrower

should call at the branch and

deposit the title deeds with an

intention to create mortgage.

Title deed narration should be

entered as per our procedure.

Our usual format of title deed

narration may require some

addition for mentioning there in

that the title deed are received

form the first charge holder

institution for the limited

purpose of creating mortgage.

If the first charge holder

requires the title deed back

they may be returned directly

to the first charge holder

through officials of the

branches or first charge

holders, along with a covering

letter stating that the title

deeds should not be handed

over to the borrower, but they

should be sent back to the

bank after adjustment of the

dues of the first charge holder.

As this type of eventuality is

very rare; branches are

advised to make a reference to

either regional office or zonal

office for getting the format of

the title deed narration to be

entered in the branch records

in such cases.

12.sometimes branch may face

the following situations also

a. Stipulation in sanction

for creation of second

charge on land and

building there may not

plant and machinery.

Even in this case,

hypothecation of

machinery may be

obtained for securing

the fixture, fittings,

electrical installations,

fans, Ac units etc.

mortgage should be

extended as stated

above.

b. Stipulation of second

charge on the

machinery there may

not be land and

buildings. In this cases,

there is no question of

extension of mortgage

in the absence of land

and building.

Hypothecation of

machinery may be

obtained.

13.When we are the sole bankers

and the fixed assets are mortgage to

us for team loan facilities, branches

may have to adopt the same

procedure laid down in the circular for

extension of mortgage and creation of

hypothecation of machinery.

14.To ensure that there is no other

intermediary mortgage between the

date of earlier mortgage favour again

the first charge holder and the cate of

extension of mortgage, nil

encumbrance certificate should be

obtained through the borrower for

branch records.

15. branch Manager are requested to

go through the above instruction

carefully and also bring these to the

notice of the officers/staff dealing with

advances

Misc. Circular No.9(file7e) of 1989-90

dated 2.3.1990

Remission of Stamp Duty on Usance

Bills with 3 months period

We informed the branches in our

miscellaneous circular No.3 (file 7e)

(of 1989 dated 27.10.89 about

complete remission of stamp duty in

respect of Usance bills of exchange

where

a. Such bills of exchange

are payable not more than three

months after date or sight.

b. Such bills of exchange

are drawn on or made by or in

favour of a commercial bank or a

co-operative bank and

c. Such bills of exchange

arise out of bonafide commercial

or trade transactions

In this connection, certain branches

have sought clarification on the

following points

a. Whether the stamp duty

remission would be applicable

for ‘Foreign Bill ?

b. Whether the stamp duty

remission would be applicable

for “Bills receivable for

collection”?

We would like to clarify that the stamp

duty remission will apply for all Bills of

exchange including Foreign Bill and

collection bill subject to the

compliance of conditions, (a), (b) and

(c) mentioned above

In the light of our above clarification,

we are annexing herewith the

schedule of stamp duty payable on

Usance Bills of Exchange. The

schedule annexed to earlier 7(e)

Circular No.3 or 1989 dated 27.10.89

may be treated as cancelled.

Circular No.5/90-91 File (7b) of

1990 dated 27.07.90

Documentation

Preamble

Branches were hitherto advised to

keep the loan documents under a

docket giving all the relevant details

on the docket sheet vide CO

Permanent Circular ADV 3/85 dated

4.02.1985. However, branches were

advised to initially have the docket

system only in case of accounts

relating to Limited Companies and

other borrowers enjoying huge limits.

Our Central Statutory Auditors have

however, observed that all the

Documents currently in force should

be serially arranged in the dockets

and indexed.

Operational Instructions

All documents currently in force

should be serially arranged in the

dockets and indexed. A copy of the

current sanction may also be kept in

the dockets while ole documents may

be kept separately.

Branches are instructed to strictly

adhere to the above instructions

This circular is to be read with

Circular no.7(e) 22 of 1983 dated

15.11.1983

GM’s Circular No.21 of 1983 dated

03.12.1985.

Permanent Circular No.ADV.3/85

dated 4.2.1985.

Permanent Circular no.ADV.3/85

dated 4.2.1985.

Reference No.ADV/22/90-91

Date : 31.07.90

Issuing Department : Management

Services O & M

Counter Indemnity for Letters of

guarantee Common indemnity

formats

Preamble

Branches are presently obtaining

counter indemnity in form no.286

each time a letter of guarantee is

issued. Similarly branches are

obtaining shipping guarantee

undertaking letter in form no.F.132

each time a shipping guarantee is

issued. In order to simplify the

documentation procedure, a common

indemnity form ahs been introduced.

The common indemnity form does not

obtain any specific limit and it will

cover liabilities under taken by the

bank by issuing letters of

guarantee/………………payment

guarantee/shipping guarantee or by

co-acceptance of bills, without limit.

In view on introduction of common

indemnity, we are canceling forms

F110D, F……& F 286. The following

guidelines are laid down for

compliance.

Operational instructions

A general counter indemnity form

numbered F 286-E has been

introduced as per specimen enclosed.

This form should be duly stamped as

an indemnity. The general counter

indemnity should be signed by the

authorized person viz., by the

proprietor in the case of proprietary

concern, by the person authorized as

per the board resolution in the case of

a limited company, by all the partners

or by the partners(s) duly authorized

by a letter of authority by all the

partners in the case of a partnership

firm.

As and when the customer makes a

request or issuing a letter of

guarantee/deferred payment

guarantee/shipping guarantee or for

co-acceptance bills, such a request

should be received in a standard

format as per specimen enclosed.

This form has been numbered F

286F. It should also be signed by the

authorized person as stated in

para1.above. Branch should not

undertake any guarantee liability on

an oral request from the customer.

This letter of request should be

preserved with the copy of the

concerned guarantee till that

guarantee is discharged or

eliminated.

The letter of request should contain,

as enclosure, the format of the

LG/DPG/copies (preferably

photocopies) of the co-accepted bills,

shipping guarantee/Bid bond/Tender

as the case may be, duly

authenticated by the authorized

signatory of the applicant.

2.4 Import licences, wherever

applicable, should also be

tendered along with this letter of

request for making provisional

endorsement.

3. Consequent to the introduction

of the standard application form.

(F.286.F) and general counter

indemnity form (F286E)

branches need not obtain the

existing counter indemnity form

F 286 and F 132 which stand

cancelled.

4.1 If a guarantee limit or liability is

to be secured against

hypothecation of any movable

asset, such as stocks, books

debts, machinery etc. branches

must obtain additionally a letter

of hypothecation in form F-110 E

for the limit and if the guarantee

limit or liability is to be secured

against any immovable property,

branches should take care to

create a mortgage on the

concerned assets as per the

sanction.

4.2 If the borrower is a limited

company, charge should be filed

with the registrar of companies

within a period of 30 days from

the date of execution of the

security, documents based on

hypothecation/mortgage.

4.3 In case of enhancement in the

sanctioned guarantee/co-

acceptance limits secured with

mortgage or hypothecation

charge. It is necessary to

obtain supplemental document

in 110 E and or extend the

mortgage by entering

supplemental title deed

narration, as the case may be to

cover the enhanced limit in

addition and acceptance of the

enhanced limit should be

obtained from the authorized

persons in the sanction advice.

Charge should b modified with

the registrar of companies based

on the appointment

hypothecation deed (F110E)

and/or mortgage in the case on

limited companies within 30 days

from the date of supplemental

document/mortgage.

4.4 Since the newly introduced from

F 286-E obtained with form F

110E in cases where the

guarantee limit or liability is to be

secured against hypothecation

of any movable asset the form E

11D prescribed for deferred

payment guarantees and co-

acceptance stands cancelled.

5. The general counter indemnity in

form F 286 E should be taken in

respect of all existing and future

guarantee limits. (The term

guarantee includes letters of

guarantee; DPG shipping

general counter indemnity

branches should undertake

guarantee liability only within the

permissible limit as per the

sanction applicable.

6. Arrangements are being made to

print the newly introduced form F

286-E and F 286F and Branches

may place their indents to

Printing and Stationary

department. Till such time, The

new forms are received,

branches may continue to follow

the existing documentation

procedure.

This amends : Para 14 Chapter

XVI of Bank’s Book of

Instructions as per Annexure.

This partially amends : Manual

on Documentation Systems and

Procedures Pages 125 – 141

and 160 to 163.

ANNEXURE

Annexure to PERMANENT Circular No.ADV.22/90-91 dated 31.07.90

Amendments to Para 14 Chapter XVI of Book Instructions

Para 14

a. Counter Guarantee in form 132

or 286 as the case may be form

the customer for the amount of

guarantee duly countersigned by

the guarantor.

b. Securities, if any, duly

discharged or assigned etc.

c. Guarantee letter, if there is a

guarantor on Form 286-D & 111

a. General Counter Indemnity on

form F 286 E

b. Application on Form F 286 F

each time a guarantee is issued.

c. F 110 E where guarantee limit

is secured by movable assets.

d. Securities, if any, duly

discharge or assigned etc.

e. Where guarantee limits are

collaterally secured by

immovable property, formalities

in respect of mortgage as per

sanction should be completed.

f. Guarantee F111/F111A from

guarantor for the LG limit or

aggregate limits including ‘LG

limit’ as per sanction terms.

g. Indemnity in F 286 D for LG

Limit form Guarantors, besides

F111/F111A

Reference No. ADV 32/90-91 date 4.9.90

Issuing Department : Management Services O & M

Documentation for Vehicle Loans

Preamble

Consequent to certain amendments

made to Motor Vehicle Act, various

changes have been made in the

formats relating to transfer of

ownership of vehicles etc. Hence the

following operational instructions are

laid down for the benefit of branches.

Operational Instructions

1. Consequent to

amendments to Motor Vehicles

Act changes have been made in

the following formats.

a. Form of notice of transfer of

ownership

b. Report of transfer of

ownership

c. Application for making an

entry of hypothecation

subsequent to registration.

d. Notice of termination of

hypothecation

2. Branches should in

future obtain revised

forms/documents as applicable

for the respective loan.

3. Formats of relevant

form Nos. 29,30,34 and 35 along

with the extract of rule No.55,

60,61 are enclosed with the

circular for the easy reference of

the branches.

Form :

Indian Overseas Bank

Central Office

763,Anna Salai, Chennai – 600 002

PERMANENT

Ref.No. : ADV.280/92-93

Date: 20.5.1992

Issuing Dept: Management Services

To All Indian Branches Regional Offices and Zonal Offices

DOCUMENTATION – TERM LOAN/

SMALL LOAN – AGREEMENT FORM

Preamble

Presently, branches are under

instruction to obtained hypothecation

agreement forms like 110 C and 407

for term loans and small loans

respectively. The details of securities

covered under the agreement are to

be furnished in the schedule provided

in the hypothecation form. Since the

exact details/description of the assets

acquired under the loan can be

ascertained only after they are

purchased, in order to protect the

banks interest, it is now felt desirable

to obtain a separate written document

form the borrower subsequently

giving the exact description of assets

hypothecated to the bank after they

have come in to his legal possession.

The following operational instruction

are laid down.

Operational Instructions

1. At the time execution

of document in respect

of term loans and

small loans, general

description of assets

to be hypothecated to

the bank are to be

mentioned under

schedule of securities

in F10 – C, F.407

respectively.

Subsequently after the assets have

been purchased and the borrower

has come into legal possession, a

separate declaration letter, as per the

specimen enclosed should be

obtained from the borrower giving the

exact details\description of goods

purchased.

This declaration letter should be kept

safely attached with F110-C or F.407

as the case may be and would form

part and parcel of the document. The

particular should be noted down in

the respective loan ledger also.

3. Branches may obtain the

declaration form the borrower

neatly typed out as per the

specimen enclosed till such

time printed forms are supplied

by printing & Stationery

Department. This declaration is

enclosed in duplicated and one

copy may be preserved with

the branch copy of manual on

Documentation at the relevant

place.

(V.R. Veerappan) General Manager

From:

Indian overseas Bank

Central office

763,Anna Salai,

Chennai-600 002

PERMANENT

Ref No. ADV.407/93-94

Date: 29-7-1993

Issuing Dept: Legal Services

To All Indian Branches Regional Offices And Zonal Offices

STATUTORY NOTICE TO BE ISSUED TO RAILWAYS OR

PUBLIC CARRIERS FOR LOSS OR NON-DELIVERY OF GOODS

PREAMBLE:

WHEN goods are consigned through

railways or transport company (public

carriers) there is a time limit of six

months for lodging any claim for loss,

destruction, damage, deterioration or non-

delivery of the goods.

IF notice is not served on the

railways or transport Company, no suit

can be filed against them

Sec.10 of the carriers Act reads as

under:

“Notice of loss or injury to be

given within six months: no suit shall be

instituted against a common carrier for

the loss of injury to goods entrusted to

him for carriage, unless notice in writing

of the loss or injury has been given to him

before the in situation of the suet and

within six months of the time when the

loss or injury first came to the knowledge

of the plaintiff"

Sec.78-B of the Railways Act states

as follows:

“Notification of claims to refund

of over charges and to compensation

for losses: A person shall not be entitled

to a refund of an overcharge in respect of

animals or goods carried by railway or to

compensation for the loss, destruction,

damage, deterioration or non-delivery of

animals or goods delivered to be so

carried, unless his claim to the refund or

compensation has been preferred in

writing by him or on his behalf.

a. to the railway administration to

which the animals or goods were

delivered to be carried by railway:

or

b. to the railway administration on

whose railway the destination

station lies, or the loss,

destructions, damage or

deterioration occurred, within six

months from the date of the

delivery of the animals or goods

for carriage by railways”.

Operational Instructions

1. When the bills

purchased/discounted are

returned unpaid and if the

bill amount is not

recovered within one

week from the date of

receipt of retuned bill,

branch should report the

matter to regional office

for instructions and in the

meantime, steps should be

taken to protect the goods

covered under the

returned bill (para-

14chapterXIBookof

instruction).

2. If there is any loss or

damage or deterioration

or non-delivery of the

such cases, where branch

has to deal with the goods

and take delivery, notice

should be sent to the lorry

company (Head office,

Booking office and

Destination office) or

railways, (Booking station

and destination station)

immediately within the

statutory period of six

months, under advice to

the party The draft of the

notice in page no304 for

format of inventory notice

may be modified to suit

the facts of any particular.

3. In collection bills

transaction, we need not

involve in sending the

notice. While returning

the documents, we may

inform the party about the

statutory requirement of

serving notice on the

Railways/public carrier

within six months period.

4. Under the carriers Act,

the period of six months

shall run from the time

when the loss first came

to the knowledge of the

plaintiff and under the

Railways Act, the time

will run from the date of

booking of the goods.

5.

(A.K.Nirmalanandan)

Assistant General Manager

From:

Indian overseas Bank

Central office

763,Anna Salai, Chennai-600 002

PERMANENT

Ref No. ADV.407/93-94

Date: 29-7-1993

Issuing Dept: Legal Services

To All Indian Branches Regional Offices And Zonal Offices

CREATION OF EQUITABLE MORTGAGE BY DEPOSITING CERTIFIED COPY

OF THE TITLE DEED

Preamble:

We are receiving reference

seeking our permission to accept certified

copy of the title deed, obtained from the

sub-registrar office, for the purpose of

creation of equitable mortgage. The

reason for such a request is said to be

original partition deed with the

mortgagor. This circular explains the risk

in acceding to such a request, legal

implication on the issue and the

safeguards to be taken, when it is decided

to accept the certified copy

Operational instructions

1.A valid equitable mortgage can

be created to secure a monetary

obligation present or contingent by

complying with all the three following

essential formalities;

a. Depositing original title deed(s)

with the Bank.;

b. Deposit should take place in

notified town.’

c. Deposit should be made with an

intention to create mortgage.

If any one of the above three essential

elements is missing, no valid

mortgage will be created. Therefore,

when a mortgagor is not in a position

to deposit the original title deed, in

the normal circumstances, he may

have to create registered mortgage,

which will attract 4% stamp duty on

the loan amount, besides, 1%

registration fee in Tamil Nadu .the

rate of stamp duty and registration

charges will vary from State of State.

If would be legally possible to

create an equitable mortgage by

depositing the certified copy of the

title deed provided the original is

actually lost or destroyed or otherwise

not available for deposit despite

owner’s efforts to deposit the original

the original where partition is effected

among family members, unless drawn

in sets, the original partition deed is

normally kept by the eldest member

and others are given certified copies

vie, registration copies. If drawn in

sets, the original and the registered

copies in sets are equal in their value

for the purpose of creating mortgage

by deposit of title deed. If only

registration copy (certified copy) is

available and no mortgage is created

by deposit of original, over the

property that had fallen to the share of

person depositing registration copy

(certified copy), it is legally possible

to create an equitable mortgage.

This is only an ENABLING

provision to create an equitable

mortgage in case the original

title deed is lost or destroyed or

otherwise not available for

deposit, A mortgagor cannot

compel the Bank to accept the

certified copy as a matter of

right. It should also be noted

that the bank takes risk in

accepting certified copy of title

deed for the purpose of creating

equitable mortgage. For

example, if a mortgagor had

already created an equitable

mortgage by depositing original

title deed with Bank” A “and

also created another equitable

mortgage with Bank ‘B’ by

depositing certified copy

stating that the original title

deed was lost, the Bank ’B’ will

lose its priority of mortgage of

Bank ‘A’.

2. When a bank is very much sure about

the correctness of the mortgagor’s

statement that the original title deed is

lost/not available for deposit and that no

mortgage had been created by de posit of

original document, bank can consider

accepting the equitable mortgage by

depositing certified copy of the title deeds

original of which reported to be lost or

destroyed or not available. To vouchsafe

the mortgagor’s statement, the bank

should take an indemnity narrating that

the original title deed is lost, that no

mortgage has been created by deposit of

original document and that mortgagor

would indemnify the bank for any loss or

damage arising out of the transaction due

to depositing the certified copy. The

format of the indemnity is given in

annexure. In all such cases, the bank

should insist for equitable mortgage

accompanied by registered memorandum

(F-416 / 417). The stamp duty payable

on such registered memorandum will be

very much less, compared to the stamp

duty payable on registered mortgage. In

Tamil Nadu, a registered memorandum

for loan amount of Rs.30,000/- attracts

stamp duty of Rs.125/- and for every

addition Rs.10,000/- or part thereof, it

attracts stamp duty of Rs.42/- besides

registration fee. The stamp duty and

registration charges will vary from State

to State.

3. The decision for accepting certified

copy must be taken by the concerned

sanctioning authority or RO in cases

falling within their powers and branch’s

powers. For any valid reason. If the

registered memorandum is also to be

waived, prior permission should be

obtained from ZO /CO.

4. By issuing this circular, we are not

giving any blanket permission to accept

certified copy of the title deed for the

purpose of creating equitable mortgage.

It only lays down the procedure, if and

when a decision is taken to accept

certified copy of title deed on the basis or

mortgagor’s statement and branch’s

recommendation.

(A.K.Nirmalanandan)

Assistant General Manager

From

LEGAL SERVICES DEPARTMENT

Indian overseas Bank

Central office

763, Anna salai

Chennai - 600 002.

Misc. circular No 3 File 7(e)

Of 95-96 27-6-95

To

All Branches

Regional offices

To All Indian Branches Regional offices and Zonal offices

REGISTRATION OF CHARGES WITH THE

REGISTRAR OF COMPANIES- INTRODUCTION

OF NEW PROCEDURE

THE Ministry of Law, justice &

company Affairs, Department of

company Affairs have issued circular

no. 1/95Fno.14/6/94-CLdt.16.2.95 to

all the offices of the Registrar of

companies in order to streamline the

procedures on venous aspects. One

of the aspects relates to registration

of charges. The Ministry has advised

the Registrar of companies to follow a

simplified procedure. We quote below

an extract of the relevant portion from

the said circular dt 16.2.’95’

Registration of charges

This is an area where companies

and the leading banks/financial

institutions are finding it extremely

difficult to get the charges registered in

time and getting necessary certificates.

Are raised by Rocs regarding the contents

in Form No.8/13/17 and this delays the

matter. It has now been decided that the

procedure in this regard may be changed

by amending the Rules/Forms so as to

make the filing of charge documents a

smooth operation The proposed

procedure envisages filing of prescribed

form and instrument evidencing the

enrage, in triplicate Under The signature

of both the company and the creditor.

Once the document is filed, in triplicate,

along with the requisite fee, Rocs will

endorse on all the three copies (including

the accompanying instrument) by rubber

stamp with the impression “Registered”

and sign the same. The first copy be taken

on ROC’ s record and the duplicate and

triplicate copies be returned to

company/creditor concerned. In this

procedure, there would be no necessity of

issuing any separate certificate of

registration of charge, as endorsed

document itself will constitute such

certification, The proposed simplified

procedure specified above, will ensure

that these documents are registered the

same day and endorsed document be

returned to the company representative

across the table. The Rules are being

amended in this behalf and will be

notified to Rocs shortly:

WE would like to inform the branches

that the Registrar of companies. Madras

has already started implementing the

above directives of the Government. We

hope that other Registrar of companies

also would have started implementing the

new procedures. We advise the branches

to submit Form-8 & Form –13 hereinafter

in triplicate with the signature of both the

Borrower Company and Bank and get

one copy of the form with endorsement

“REGISTERED” The forms with such

endorsement should be kept along with

the loan documents.

From:

Indian overseas Bank

Central office

763,Anna Salai,

Chennai-600 002

PERMANENT

Ref No: ADV/36/94-95

Date: 20.7.94

Issuing Dept: Management

Services (O&M)

To All Indian Branches Regional Offices and Zonal Offices

DOCUMENTATION RELATING TO FINANCING LEASING COMPANIES

POWER OF ATTORNEY FROM BORROWER LEASING COMPANY AND

LETTER OF UNDERTAKING FROM LESSEE

PREAMBLE:

We invite the attention of branches to

our Book of instructions (1993)

Volume 11 chapter 18” Advances

to Leasing companies” wherein

the documents to be obtained for

financing leasing companies have

been given (in pares 5&6) in order

to ease out the problems faced by

the branches in obtaining the

present Tripartite Agreement. We

hereby introduce two documents

namely.

1. Power of Attorney to be

obtained from the borrower

leasing company.

2. Undertaking Letter to be

obtained form the lessee as

an alternative to the Tripartite

Agreement which has to be

taken for every lease

transaction.

Operational instructions

1. in order to obviate the

difficulties faced by the

branches in obtaining the

Tripartite Agreement for

every lease transaction, a

power of attorney (POA) to

be obtained from the

borrower leasing company

has been designed by our

legal services Department.

For a copy of the POA refer

page 340

2. The branches can either

take the Tripartite

Agreement or POA

depending upon the

convenience of the parties

of the parties.

3. The POA should be

registered with the lessee

who should undertake to

remit the lease rentals

directly to the bank. In

terms of the POA. The

format of the undertaking

letter from lessee is

provided in page.339.

4. Branches are further

advised to ensure proper

documentation by taking all

the documents for the total

limit and for each and every

lease transaction as

detailed in the Book of

instructions.

(R.Venkatraman)

General Manager.

Refer page 338 for format of POA for collecting lease rentals.

Indian overseas Bank

Central office

763,Anna salai,

Chennai-600 00

PERMANENT

Ref: ADV/60/1996-97

Date: 12.09.1996

Issuing Dept: suit Filed

Accounts

To all Indian Branches Regional offices and Zonal offices

INSPECTION OF SECURITIES

Reference is invited to our earlier

circular NoADV/46/1996-97 dated

3.8.96 the subject.

Branches, while filling suits, may be

called upon to produce the original

documents in some courts and the

copies only in some other courts. We

observe that the movements of the

security documents are not recorded.

We were not able to deliver the

documents in time to the

borrowers/owners when their dues

are settled.

Branches were under the impression

that the documents were either held

by the lawyer or deposited in the

court but in reality, it was not so. We

were not a position to ascertain at

what point of time, the documents

were misplaced and at whose hands.

Operational instructions

Branches are advised to

maintain a record of movement of the

documents. Proper acknowledgement

has to be obtained form the lawyers

for the documents delivered to them.

A legible photocopy of all the

documents parted with to the

lawyer/court should be kept in the

branch custody along with the

acknowledgement form the lawyers.

Branches should advice central

office/controlling authority

periodically, with whom the original

documents are held, through the

periodical security inspection report to

be submitted as called for vide

permanent circular No.ADV/45/96-97

dated 3.8.96.

This circular has to be read

with permanent circular

No.ADV/45/1996-1997. Dated

03.08.1996.

(A.K.Nirmalanandan)

Asst.General Manager

Indian overseas Bank

Central office

763,Annasalai,

Chennai-600002

PERMANENT

Ref: MISC.59/97-98

Date: 13-08-97

Issuing Dept: Management services

INTRODUCING COMPREHENSIVE REVIVAL LETTERS

Preamble:

In order to keep the loan documents

and personal guarantee alive, it is

necessary to obtain Revival Letters

(RLs) within every year from the

borrowers and guarantors.

Whenever there is

enhancement of credit limits,

branches are taking additional DPNs

for the aggregate limit of a borrower

and hence, have to get as many

numbers of RLs as the number of

DPNs.

Operational instructions

1.To obviate the difficulty of

having many RLs/DPNS, we are

introducing comprehensive Revival

Letters (RLs) for borrowers and

guarantors, formats of which are

enclosed as annexure A&B.

2.From now onwards,

branches need to take the single

revised comprehensive revival letter

(F301 Revised) from the borrower for

all DPNs/agreements executed by

him.

3.similarly single revised

comprehensive revival letter (F 301-B

Revised) need to be obtained from

the guarantor in respect of all

guarantees executed by him for a

particular borrower.

4.whenecer there is an

enhancement in the credit facilities,

instead of taking personal guarantee

(FIII) for the enhanced portion, we

advise the branches to take personal

guarantee in F-IIIA for the aggregate

limit. This will obviate the need for

taking RL for the earlier guarantees.

5.while taking these

comprehensive RLs, branches have

to fill up all the details carefully

6.Until receipt of revised.

Comprehensive RLs (F301 Revised

and F301-B Revised) from printing &

Stationery Dept. branches can use

typed forms Branches should not use

the old RL forms and they should be

disposed of treating as obsolete.

7.The above instructions come

into force with immediate effect.

(R.Natarajan)

General Manager.

Indian overseas Bank

Central office

763,Anna Salai,

Chennai-600 002

PERMANENT

Ref No: Misc 104/98-99

Date: 20-5-98

Issuing Dept: Management services

To All Regional offices and Branches

DOCUMENTATION: F.416 AND F.417 AND SUPPLEMENTAL MEMORANDUM

OF DEPOSIT OF TITLE DEEDS

1.0 preamble

we have introduced a new format of

“supplemental memorandum of Deposit

of Title Deeds. This document should be

obtained at the time of limits if the

original advance is coveted by Deposit of

Title Deeds followed by Registered

Memorandum.

2.0 Operational instructions

2.1 in some of the states like

Maharashtra like and

Gujarat the stamping has

been made compulsory for

all documents evidencing

mortgage by Deposit of

Title Deeds and/or any

note/entry in recording

made or letter written by

creditor.

2.2 In some special cases,

where the parties do not

have the original title

deeds, branches have to go

for Registered

Memorandum of Deposit

of Title Deeds.

2.3 In the above said cases at

the time of enhancement

of limits/additional limits,

branches should obtain the

“supplemental

Memorandum of Deposit

of Title Deeds” as given in

the Annexure.

2.4 Out of the two formats of

“Memorandum of Deposit

of Title Deeds,” F416 is

dispensed with henceforth;

F417 may be used for both

cases of deposit of title

deeds by the borrower as

well as the third party.

(T.R. Kallapiran)

Deputy General Manager

From,

Indian overseas Bank

Central office

763,Anna Salai,

Chennai-600 002

PERMANENT

Ref No: Misc 145/98-99

Date: 22-02-99

Issuing: Management

Dept: Services (O&M)

INTRODUCTION OF COMPREHENSIVE CONFIRMATION OF BALANCE

FORMAT

1. Preamble:

1.1 As per Bank’s manual on

Documentation page 6 Para 14,

confirmation of Balance is to be

obtained every year from the

borrowers for all Cash Credit

accounts and over drafts and the

same to be obtained every year

from the guarantors for all

borrower accounts. The existing

format F237A was conceived for

single facility and as such

branches have to take a number of

confirmation of Balances from

borrowers who are sanctioned

multiple credit facilities. To

surmount this difficulty, it is felt

necessary to introduce a

comprehensive confirmation of

balance format.

2. Operational instructions:

a. The new format “F237B”

comprehensive

confirmation of balance”

is annexed. Till supplies

are made by printing and

Stationery Department,

Branches can type the

format given in annexure

and use the same.

b. This new format should be

taken in cases of

borrowers with multiple

credit facilities and also

from the guarantors of

such facilities.

c. Other procedures

connected with obtention

of confirmation of balance

remain unchanged.

d. The existing confirmation

of balance (F237A) format

will continue to be valid

and the same can be

utilized for borrowers

enjoying single credit

facility.

3. Conclusion;

a. It is reiterated that

branches should obtain the

confirmation of

valance/comprehensive

confirmation of Balance in

time as per procedures

prescribed and keep the

documents alive

(R.Natarajan)

General Manager.

From,

Indian overseas Bank

Central office

763,Anna Salai,

Chennai-600 002

PERMANENT

Ref No: Adv/330/99-2000

Date: 20-05-99

Issuing: Management

Dept: Services (O&M)

TO ALL INDIAN BRANCHES AND REGIONAL OFFICES

FOREIGN CURENCY LOAN – TERM LOAN DOCUMENTATION

1.0. Preamble

Attention of Branches and

Regional Offices is drawn

to our permanent FX

circular no 10/96-97 dated

21.01.97 and FED ADMIN

circular No 2/97-98 dated

27.05.97 which outlined the

procedure relating to

Foreign Currency Loan to

be granted as Working

Capital Demand Loan in

Foreign Currency (WCFC)

and Foreign Currency

Loan – Term Loan (FCL –

TL)

We refer to permanent

advances circular

ADV/168/97-98 dated

15.10.97 wherein we

advised documentation

aspect of WCFC.

Now we advise

documentation aspect for

FCL-TL.

2.0. Operational

Instructions:

2.1. Foreign

Currency Loans – Term

Loans are being

considered subject to

availability of foreign

currency funds as well

as specific approval of

the relevant credit

department. Before

granting term loans in

foreign currency,

besides obtaining

regular documents, the

following letters are to

be exchanged between

the branch and the

borrowers.

2.1.1. Letter of

Offer – By

branch to

borrower –

Annexure 1

2.1.2. Application

by party in

their letter

head with

reference to

above letter

of offer – no

specific

format is

prescribed.

2.1.3. Letter to

borrower

confirming

availability of

Funds –

Annexure II.

Branch has to

confirm

availability of

funds from

FEDCO (one

week notice

to be given to

FEDCO) and

then only the

letter is to be

issued to the

borrower.

2.1.4. Letter of

Undertaking

by the

borrower and

guarantor(s).

Third Party

Mortgagor(s)

/

Hypothecator

(s) if any, and

to be stamped

as an

“Agreement

(as per the

Stamp Act in

force in the

state where it

is executed) –

Annexure III.

2.2. At the time of

extending the FCL – TL

facility branches should

ensure that regular

documents such as

Term Loan Agreement

in Form No 110- C

(modified) (Annexure

V) for securing movable

assets, Guarantee(s) in F

111/F-111A (modified)

(Annexure VI and VII)

Mortgage of immovable

properties as stipulated

in the sanction

endorsement are

obtained and charge

creation are perfect.

2.3. Please note to

obtain the consent letter

of the borrower, stating

that whenever there is

change in LIBOR

and/or whenever there

is a change in the spread

in interest rate and /or

tax rate necessary

modification of charge

will be filed with the

Registrar of Companies.

2.4. In terms of FED

Admn circular no 2/97-

98 dt. 27.05.97, the term

FCL-TL will be for a

maximum of three years

to match with the

maturity period of

FCNR (B) deposits.

Hence lending for a

term in excess of three

years is not advisable, as

it would create a large

mismatch.

If FCL-TL for a term

exceeding three years is

to be granted, the

following stipulations

may be made.

I) The loan would

initially be

granted for a

term of three

years

II) The bank may at

their option roll

over the loan at

the end of three

years

III) If the bank is

unable to roll

over the loan at

the end of three

years the loan

will be converted

to a rupee term

loan at the TT

selling rate

prevailing on

spot date (two

business days

before the third

year maturity

date) and interest

from the date of

conversion will

be charged at the

rate applicable

for rupee term

loan accounts.

When FCL – TL

is granted for

three years

repayable in

quarterly/half-

yearly

instalments, the

customer has to

normally book a

forward contract

for each

instalment viz.

first instalment,

second

instalment etc.

Forward cover is

available

normally upto

six months but

can be booked

for a period upto

one year and

rolled over till

the respective

due date.

At the time of

availing the loan

the LIBOR

interest rate

would be quoted

for a period of

three months or

six months as

agreed to. The

LIBOR interest

applicable for the

successive three

months/six

months period as

agreed to would

be refixed

periodically on

the relevant spot

dates.

2.5. In case

additional FCL – TL is

granted or in the event

of roll – over, all the

procedure enumerated

in paragraph 1,2 and 3

above may be adopted

and modification of

charge has to be filed

with the Registrar of

Companies.

2.6. For FCL-TL

already granted all the

procedures as

enumerated in

paragraph 1 and 2

above have to be

followed except that in

lieu of Letter of

Undertaking as in

Annexure III, branches

have to obtain Letter of

Undertaking from

borrower,

guarantor(s) /Third

Party

Mortgagor(s)/Hypothec

ator(s) if any, as per

Annexure IV and it

must be stamped as an

“Agreement” (as per the

Stamp Act in force in

the state where it is

executed).

2.7. Branches should

note to recover

transaction cost at the

rate of 0.5% the FCL-

TL amount subject to a

minimum of USD 1000/-

at the time of disbursal

of the loan amount in

addition to the usual

fees and charges

applicable to rupee term

loan account.

2.8. In case

prepayment is agreed

to, it shall be done on

interest refixation date

and the prepayment fee

should be separately

recovered as a flat fee of

2% on the FCL-TL

outstanding. Interest on

the loan should be

charged for the actual

period for which the

loan has run, at the

contracted rate of

interest.

2.9. Management

Services Department

have vide their

Permanent Circular no

Misc. 116/98-99 dt.

21.09.98 changed the

GL code numbers as

follows.

FC (WCFC) -

4152

FCCTLFC) -

4153

Branches are advised to

take note of above while

extending FCL – TL.

(Jerome Royapan)

Assistant General Manager