Form of Agreement
(To be stamped as an agreement under Article 5(c) of Schedule I to the Indian Stamp Act: see section 23(a) of the Stamp Act)
                                                                                                          Place..................................
                                                                                                    Date..............................
To,
The Reserve Bank of India.
Dear Sir,
In consideration of your agreeing to make from time to time, under section 17(4)(a] of the Reserve Bank of India Act, advances in your discretion but not in any event exceeding the sum (exclusive of interest] of Rs..............for which amount we have delivered to you a demand promissory note in your favour carrying interest at the rate hereinafter mentioned, which advances shall be repayable on demand and shall be made upon the security, by way of pledge, charge, mortgage or otherwise, of securities (other than immovable property) in which a trustee is authorised to invest trust money, we agree as follows :

The balance of the said advance at any time outstanding shall be repayable by us on demand.

Interest shall be payable by us to you on the said advances at Reserve Bank of lndia rate with quarterly rests and the amount of such interest, calculated on the daily balances may be debited to the account of the said advances at the end of each calendar quarter or earlier when the balance outstanding is wiped off. It shall be open to you to reimburse yourselves with the amount of interest, so debited by charging the same to our current account with you.

As security for the said advances we have delivered or transferred or will deliver or transfer to you such securities as are eligible under section   17(4|{a)   of the  Reserve  Bank of India Act  and  as  are acceptable to you. The securities to be delivered to you shall be endorsed by us in your favour and such securities and the securities transferred to you shall be deemed to have been delivered or transferred to, and shall be held by you, upon and subject to the
terms and conditions herein mentioned.

All such securities so delivered or transferred shall be security to you for the due payment to you by us off -
(a) all moneys which now or which at any time or times hereafter become due and owing from us to you in respect of the abovementioned advances or in any other manner;
(b) interest on the moneys aforesaid at the agreed rate with quarterly rests;
(c) all expenses which may be Incurred by you in selling or attempting to sell the said securities or any of them; and
(d)  all other costs, charges and expenses, if any, which you may be entitled by law to recover from us.

We further agree to maintain in your favour such margin or margins as you may from time to time and with respect to each class of securities prescribed so that the total amount for the time being due to you for principal, interest, charges and costs in respect of the aforesaid advances shall not exceed the balance of the market value of the said securities after deducting the amount of margin required to maintained. If there should, at any time, be a shortfall in the margin required to be maintained. If there should, at any time, be a shortfall in the margin stipulated herein we shall forthwith on demand by you either deliver or transfer to you such further securities as are necessary to cover the shortfall or reduce the
balance due to you by a cash payment so as to make good the amount of margin required to be maintained.

If the amount of the said advances with all interest, charges costs shall not be paid to you on demand or if we, at any time on demand, fail to restore the above stipulated margin it shall be lawful for you forthwith or at any time thereafter to sell all or any or the said
securities without further notice and to apply the net proceeds of such sale in satisfaction so far as the same will extend towards the liquidation of the amount due hereunder and we agree to accept your account of such sale as sufficient proof of the correctness of
the amount realised by, and the charges and expenses in connection with, such sale. If the net sum so realised should be insufficient to cover the full amount due hereunder. we agree to pay to you forthwith on delivery of your account abovementioned any balance
due by us on the footing thereof. 

The security created by the delivery and/or transfer of such securities as aforesaid shall be and remain a continuing security for the balance from time to lime due and payable to you in respect of the said advances notwithstanding the absence of debit balance
at any time or any partial payments or fluctuations of accounts or withdrawal or retransfer of any part of the security,

The security hereby created or agreed to be created shall extend also to all other sum or sums of money for which we, either separately or jointly with any other person or persons, may be or become indebted or liable to you on any account.

We hereby declare that the securities so delivered and/or transferred and to be delivered and/or transferred by us shall be our absolute properly at our sole disposal and free from any prior charge or encumbrance.

We hereby agree to execute on demand such documents as may be required by you to vest the securities or any of them in you and to render the same readily saleable or transferable by you at any time, 
Yours faithfully,
for and behalf of
                                                                                  [Name of the Scheduled Bank)
(Signature)
                                                                                              (Designation)