Loan Bond With Surety And Hypothecation Of Property Legal Draft Template

This

Loan Bond is executed on this.day ofat .. between:1.

Mr.

TH s/o MY r/o ..hereinafter called the debtor on the First Part.2.

Mr.

LA s/o Mr. WM R/o .., hereinafter called the surety on the second part,

and3.

MJ,

s/o Mr. BU r/o .., hereinafter called the creditor on the third part.Whereas

the debtor has applied for a loan of Rswhich shall be repayable in

instalments as specified hereunder with interest at the rate of 18% per annum.And

whereas the surety has agreed to give security for the above loan and the

creditor has agreed to advance the loan on such security.Now

This Bond Witnesses as Under:1.

That

in pursuance of the said agreement the creditor has advanced a sum of Rs.to

the debtor. The debtor and surety have jointly and severally agree with the

creditor as under:-2.

That

the debtor and the surety are jointly and severally responsible for repayment

of the above amount in four equal installments with interest on half yearly

basis as under :-Installments

Due D tea Principal Amount Interest1st

instalment2nd

instalment3rd

instalment4th

instalment3.

That

in case of failure to pay any instalment or part thereof with interest, the

debtor amount alongwith interest shall become payable at once and the debtor

and the surety shall be jointly and severally liable to pay the same.4.

That

for the consideration aforesaid and in further pursuance of the aforesaid

agreement the debtor and the surety grant and transfer by way of simple

mortgage to the creditor. All that property described in the shall remain and

be charged by way of simple mortgage as security for the payment to the

creditor of the said principal amount alongwith interest in accordance with the

covenants herein contained.5.

The

debtor and the surety hereby declare that the said property is free form all

encumbrances.6.

That

it is hereby agreed and declared that in cases of failure of the part of debtor

to pay the instalment in time, the creditor shall be entitled to dispose the

mortgage property in part or full to recover the principal amount and interest.We

the above noted parties have signed this deed on the date and place mentioned

above, after fully understanding the contents of this deed in the presence of

the following witnesses:Witnesses:1.

Name. Signature ..Address

Debtor2.

Name SignatureAddress.Surety3.

Name. Signature ..Address

Creditor