(To be stamped as an
agreement
as per the Stamp Act in force
in the State in which the document
is to be executed) |
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Articles of Agreement made this
the ..................................day of ...........
........200 /Between
........................................................................
.............................................................................................
..................
.............................................................................
............................................................................................................
hereinafter referred to as “The Borrower”(which expression shall include his/her
heirs, executors, administrators, legal representatives and assigns) of the one part
and UNITED BANK OF INDIA, a body corporate constituted under the Banking Companies
(Acquisition & Transfer of Undertakings ) Act, 1970 having its
registered/principal office at 16, Hemanta Basu Sarani, Kolkata - 700001 and a branch
office at ........................................................................
hereinafter referred to as “the Bank” (which expression shall include it's
succesors, in business and assigns) of the other part.
WHEREAS the Borrower applied/has applied to the Bank for a loan/advance
of Rs.............................. (Rupees_______________ only) for the purpose set forth
in the Borrower's proposal dated................. a copy whereof is annexed to this
Agreement as Annexure-1(hereinafter called “the Borrower's proposal”) under the
United Mortgage Loan Scheme of the Bank and has agreed to avail of the loan on the basis
of the United Mortgage Loan Scheme of the Bank.
AND WHEREAS the Bank has advanced/has agreed to advance Rs....................
(Rupees______________________only) under the above mortgage loan scheme of the Bank upon
the terms and conditions set forth in these present/sanction letter and upon execution of
security documents.
NOW IN CONSIDERATION OF THE GRANT OF THE ABOVE ADVANCE IT IS AGREED in the
premises as follows :
1. The borrower's proposal together with the letter of sanction
communicated to him/her by the Bank shall be deemed to constitute the basis of this
agreement for the loan to be advanced by the Bank hereunder and the Borrower hereby
warrants the correctness of each and every one of the statements and particulars therein
contained and undertakes to carry out the proposals therein set forth.
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2. The borrower hereby agrees that the said
advance shall be governed by the terms contained herein as well as those embodied in the
security documents. The borrower further agrees that he/she will also abide by the terms
and conditions of the sanction of loan communicated to him/her which forms a part of this
agreement being Annexure-2 and also to the rules for such loan which are in force and to
be revised/amended/added from time to time by the Bank/RBI/ Govt. of India/State
Government.
3. The disbursement of the amount of the loan shall be at the absolute
discretion of the Bank and shall be co-related with the requirement of loan. At the
discretion of the Bank, the Bank may credit the entire/part of the loan amount to the
account of the borrower (Current/Savings Bank A/c) maintained in joint/ single names to
enable the borrower to utilise the loan for which the said loan has been sanctioned by the
Bank
4. The borrower expressly agrees and undertakes that the said loan is to
be utilised exclusively for the purposes set forth in the borrower's proposal and as per
the terms of sanction of the Bank and for no other purpose. The borrower shall submit to
the bank within a reasonable time, satisfactory proof of the proper utilisation of the
amount of the loan.
5. The borrower shall repay the amount of loan together with interest as
per arrangement/sanction letter which forms part of the agreement being Annexure-2 hereof
in equated or agreed rate of monthly instalment as mentioned in the letter of sanction
till the entire loan with interest is fully liquidated effective from
..........………. and arrange for payment of the monthly instalment in
whatever manner deemed fit or by debit on the due dates from the current/ savings bank
account with the branch or any other branch of the Bank where the borrower holds the A/c
singly or jointly or by any other agreed means by the borrower. This monthly instalment
also includes interest component.
6. The bank shall charge interest @ _________ % per annum on Fixed Rate
basis at monthly rest as mentioned in the letter of sanction (annexure-2) on the
outstanding debit balance calculated on daily product basis and debited in the concerned
account every month.
7. The Bank shall be at liberty to charge at its own discretion penal
rate of interest on the outstanding loan amount for any default or irregularity on the
part of the borrower/(s) which in the opinion of the Bank warrants charging of such penal
rate of interest for such period as the Bank may deem fit.
8. In case proposed mortgage flat/house/commercial property/premises is
given on rent/lease, the borrower shall pay monthly rent arising out of the flat/ house/
premises mortgaged to the bank to the satisfaction of the monthly instalment and if there
is any shortfall in the monthly instalment together with its interest, the borrower shall
meet the difference amount from his/her own sources. In consideration of the said loan,
the borrower having instructed/authorised the tenant/lessee agreed to assign the rent
receivables by the borrower from his/ her tenant/lessee in favour of the bank. The
tenant/lessee will also undertake to deposit with the bank the monthly rent towards the
liquidation of aforesaid loan.
9. In case the borrower is an employee, the borrower shall execute in
favour of the bank a letter of authority addressed to his/her employer that in case of
default in repaying the bank dues/ instalment, the bank is empowered to collect the
monthly instalment directly from the salary of the borrower for appropriation towards the
repayment of his/her loan and interest and the bank is also authorised to recover its dues
out of the terminal benefits of the borrower and the same shall remain revocable so long
as the borrower continued to be liable to the bank in respect of his/her loan account.
10. The borrower shall create equitable mortgage of house/flat/
commercial property owned/having possession by way of lease by him/her out of the loan
amount in favour of the Bank and shall execute such documents as would be required by the
Bank. Where creation of equitable mortgage is not feasible, the borrower will create legal
mortgage by execution and registration of deed of mortgage conveying all his/her rights,
title and interest in respect of the said flat/house/commercial property purchased by
him/her in such form/manner as may be approved by the Bank.
11. The borrower shall not assign, mortgage, charge or in any way
encumber or alienate the said flat/house/commercial property or any part thereof so long
as the borrower remains in debted to the Bank in respect of his/her loan account. The
borrower further undertake to give prior intimation to the Bank before leting out/giving
on lease and licence of the said flat/house/ commercial property. The borrower further
agrees that in the event the flat/house/commercial property is let out, the Bank shall be
entitled to collect the rent of such property and appropriate the same towards its dues.
12. The borrower shall obtain and produce before the Bank a search and
marketability and non-encumbrance certificate from the Advocate/ Solicitor approved by the
Bank, certifying that the borrower is having a clear and marketable title to the
land/house/flat/commercial property proposed to be mortgaged by him/her at his/her costs.
The borrower shall also obtain a valuation certificate from an approved valuer and also
proof of clearance of all municipal taxes etc. in respect of the house/flat/commercial
property owned/having possession by way of lease by him/her at his/her costs. The borrower
shall not undertake any unauthorised construction/alteration/modification on the said
house property against which the Bank has sanctioned the loan so long as the borrower
remains indebted to the Bank in respect of his/her loan amount.
13. The borrower/s hereby agrees that the Bank shall be at liberty to
inspect the flat/house/ commercial property/premises at any reasonable hours of the day.
The borrower/s shall maintain the flat/house/land/commercial property/premises in good
condition at his/her costs at all times so long as the borrower remain indebted to the
Bank and he/she shall further ensure that the bank”s security is not jeopardised in
any way. The borrower shall further ensure that all charges payable to the Cooperative
Society/Municipal Taxes/Cesses are paid by him promptly in respect of the said
flat/house/land/commercial property.
14. The borrower/s shall insure and keep insured in the name of himself/
herself/themselves in case of joint borrowers and the Bank in respect of his/her
house/flat/commercial property against fire/flood/cyclone/earthquake and
other risks for the value of the said house/flat/ commercial property as desired by the
Bank from time to time. The borrower shall deliver copies of Insurance Policies along with
relevant papers to the Bank after the said Policy is obtained. If the borrower fails to
effect such insurance, the Bank will be at liberty but not obliged to insure the said
house/flat/commercial property against the aforesaid calamities and debit the said
insurance premium and other charges to the account of the borrower with the Bank. The
borrower expressly agrees and declares that the bank shall be entitled to adjust, settle,
compromise or refer to arbitration any dispute between the Insurance Company and insured
arising from or under or in connection with any such policy or policies of insurance and
such adjustment, settlement, compromise or any award made on such reference to arbitration
shall be valid and binding on him/her. The borrower further agrees that the Bank shall
have a right to receive all money payable under the said insurance policy relating to any
claim made thereunder and to give a valid receipt therefor and the amount so received by
the Bank shall be conclusive and be credited to the loan a/c of the borrower and the
borrower shall not be entitled to raise any question with regard to the quantum of the
amount which has been received from the Insurance company and credited to his loan a/c.
The borrower will also not dispute his liability for the balance amount remaining due on
such a/c after such credit from the insurance company.
15. Notwithstanding anything herein or in the security documents
contained, the whole advance and / or the entire outstanding balance shall become
forthwith due and payable by the borrower or his/her heirs, legal representatives and/or
nominees to the Bank and the Bank will be entitled to enforce its security upon the
happening of any of the following events namely :
a) the borrower ceasing to be in service by way of retiring, resigning or
being discharged from the service or otherwise or upon the demise of the borrower or
ceasing to be in business;
b) the occurrence of any circumstance which in the opinion of the bank is
prejudicial to or impairs, imperils or depreciates or is likely to depreciate the security
given to the Bank;
c) the occurrence of any event which in the opinion of the bank will
adversely affect in any manner the capacity of the borrower to repay the loan;
d) the occurrence of any default on the part of the borrower in paying
the monthly instalment as per the sanctioned terms communicated by the Bank vide letter of
sanction (Annexure-2).
The decision of the Bank with regard to happening any of the aforesaid event will be
conclusive and binding on the borrower.
16. The borrower/s hereby agrees that in case of death/cessation of
business/ service or otherwise the Bank may at its discretion continue the loan provided
sufficient collateral securities are furnished by the legal heirs/surviving borrower/s or
some satisfactory arrangement for repayment of the loan acceptable to the Bank has been
made in this regard.
17. The borrower further undertakes that in the event of cessation of
his/her service whether by way of retirement, resignation, death or by operation of law or
for any other reasons , whatsoever, the Bank will be at liberty/discretion to write to
his/her employer to appropriate/set off any amount which may then be payable by his/her
employers to him/her by way of terminal benefits/exgratia and any other payment,
whatsoever that may be outstanding to the credit of his/her a/c towards repayment of the
balance that may be then outstanding and payable by the borrower/s to the Bank in respect
of his loan a/c together with applicable rate of interest upto the date of repayment. Any
such appropriation/ set off shall be conclusive and binding on the borrower/his/her
Estate.
The borrower further agrees that till the entire dues are adjusted by way of recovery from
his/her employer or otherwise his/her liability to make repayment of the entire dues with
applicable interest upto the date of payment in respect of his/her loan a/c shall remain
valid.
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18. The undertakings, authority and
agreement herein contained shall be irrevocable so long as the borrower continues to be
liable to the Bank in respect of his/her loan a/c covered by this agreement.
19. The borrower further agrees and undertake that in case of default
making repayment of monthly instalment then in such case the royalty of the house/
flat/commercial property/premises shall be fixed as per prevailing market rate and such
monthly royalty shall be paid directly to the bank by the borrower for which he/ she shall
not raise any objection in fixation of the monthly royalty and its payment to the bank
towards protanto satisfaction of the bank's dues. The bank shall be at liberty to recover
the balance dues together with its interest from other properties of the borrower and in
that regard the borrower and his/ her legal successors, agent, assignee shall not raise
any objection in respect of attachment and sale of such properties.
20. The borrower further agrees that in case of default of payment of
loan/ advances or in the repayment of interest/agreed instalment of loan on due dates,
Bank/RBI will have the unqualified rights to disclose/publish his/her name as defaulter in
such manner and through such medium as the Bank/Reserve Bank of India, in their absolute
discretion, may decide.
21. The borrower shall furnish to the Bank all such information as would
be reasonably required by the Bank for its satisfaction for compliance of the terms and
conditions of advance and all such periodical reports and information at such time in such
forms and containing such particulars as the Bank may call for the purpose of ascertaining
the results of utilisation of the advance.
22. The borrower/s further declares that he/she has understood all the
terms and conditions relating to the sanction of his/her loan agree to abide by the same
and also by the rules and regulations/guidelines which may be issued in future from time
to time and in the event of failure of the borrower/s to do so, the Bank will have a right
to recall the advance.
23. The borrower/s irrevocably and unconditionally agree and undertake to
bind himself/herself/themselves his/her/their executors, administrators, Estates and
assigns for re-payment of the outstanding dues in the loan account. |
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| IN WITNESS whereof the Borrower by himself/herself set
his/her hands the deed on the .........................day of
..................................................200..... . |
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Borrowers :
1.
Signature.............................................................
Name.............................................................
Address.........................................................
2. Signature.............................................................
Name.............................................................
Address......................................................... |
