MANUAL ON

DOCUMENTATION

Indian Overseas Bank

Central office
763 Anna Salai, Chennai 600 002

R.V. SHASTRI
Chairman & Managing Director

Indian Overseas Bank

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
General Manager

Indian Overseas Bank

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 Banks 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

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

3-15

67-244

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

Part VI

Important circulars on documentation

399-460

PART I
INTRODUCTION TO DOUCMENTATION

Section 17 of the Indian Stamp

General
1. Documentation is an essential part of

Act, states that all documents

Bank lending. It establishes a legal

chargeable

relationship between

executed by any person in India

the

lending

duty

shall

and

stamped before or at the time of

writing.

Hence

correct

execution.

properly

and

and

banker and borrower as the terms

conditions are reduced in

be

with

duly

An unstamped or

documentation is essential to ensure

insufficiently stamped documents

the safety of an advance. The

will not be admitted in evidence

documents

or form the basis of a suit.

stamped,

should
properly

be

rightly

executed

and

Permission

however

can

be

create the

accorded in certain cases by the

necessary charge on the security.

court or an appropriate authority

The documents should mention the

to admit

correct name of the parties, contain

insufficiently stamped document

proper

in evidence, on payment

should effectively

recitals,

give

detailed

an unstamped or
of

description of the security, if any, to

certain

be charged, the consideration, rate

the

of interest, terms of payment and

document is chargeable or in the

other important conditions agreed to.

case

Any deviation

insufficiently stamped the amount

from the standard

penalties in addition to

duty
of

with

which

an

Instrument

form should not be permitted without

required

obtaining the requisite permission

required stamp duty.

from the

however, be remembered

Controlling Administrative

the

to make

It must
that

Office. The legal formalities as to

unstamped

registration

stamped promissory note, or bill

of

charge

with

the

or

up the

exchange

insufficiently

Registrar

if Assurances and/or the

of

is

an invalid

Registrar

of Companies should be

document ab initio and

cannot

compiled with, within time wherever

be admitted in evidence even on

necessary. All sanction letters are to

payment of duty and or any

be

penalty.

advised to borrowers in form

F568 in duplicate. One copy is to

In some states like Punjab, an

be retained along with documents

unstamped

after obtaining the signature of the

stamped acknowledgment will be

borrower as a token of acceptance

invalid and cannot be admitted in

of terms and conditions.

evidence even on payment of

2. Stamping

or

insufficiently

penalty. Similarly in the States of

Madhya

Pradesh

and

Uttar

stamp is by ensuring that the executant

Pradesh, the defect in stamp

signs over all the stamps, in such a

duty on a receipt cannot be cured

manner, that the signature extends even

by paying penalty.

beyond the stamps.

Stamps
3.

5.Special Adhesive Stamps, when affixed to

Stamps are of different kinds:

documents are cancelled by the treasury

Impressed Stamps (Stamp Paper)

a.
b.

Judicial Stamp Paper (Used

Adhesive

for filing suits in civil courts)

Agreements. Bill of Lading, Insurance,

Non-Judicial

Bills

(Used

for

Stamp
all

documents,

Paper

commercial
such

are

Exchange,

affixed
Shares,

on
etc.

Sometimes, the treasury impresses or

engrosses

deed,

documents

deed,

Stamps are not available.

If special

Settlement deed, Power of

Adhesuve

or

impressed

Attorney,

/engrossed documents are

not readily

partition

sale

deed,

gift

Mortgage

deed,

the

stamp

when

value

on

Special

Stamps

the

Adhesive

Lease deed etc).

available

Hundi Paper

on non-judicial stamp paper for the

Adhesive Stamps
a.

of

Stamps

as

agreement,

c.

by punching dates across them. Special

documents may be

executed

requisite value of stamps. The stamp duty

Special adhesive stamp used in

must be in accordance with the provision

the place of non-judicial stamp

of the stamp law in force in the respective

paper

states.

b.

Revenue Stamp

c.

Foreign Bill Stamp

As per the Stamp rules, a document should

d.

Share Transfer Stamp

begin on non-judicial Stamp Paper and if it

e.

Insurance Stamp.

is affixation of special adhesive stamp, the

f.

Notary Stamp

Stamp should appear on the face of the

g.

Consular Stamp

document.

h.

Brokers Note Stamp

Stamp Paper should be made as the first

i.

Court Fee Label Stamp

page and the beginning portion of the

4. Adhesive revenue stamps are affixed on

standard format should be written or typed

promissory

notes,

acknowledgement

receipts

Therefore the

non

judicial

and

on it and such portion of the standard format

of debts (Revival

should be struck of under authentication of

letters. Balance confirmation

letters).

the executants signature. The non-judicial

Revenue stamps are cancelled by the

Stamp Paper should form part of the

borrowers by singing across or otherwise.

standard format and should be stapled or

The best way of

stitched so that it appears as the first page

canceling a revenue

of the document. The executant should sign

affixed, each stamp should bear the

each page of the document including the

Bank seal.

non- judicial stamp paper.

d. Branch Manager should put his signature

Procedure to be followed only in places

across the stamp and put the date under

where Branch Managers are empowered

the signature.

to affix and cancel stamps:

immediately after affixing the stamp on

This

must be done

the form. On no account the date put by

6. In certain states, the Managers of the
nationalised banks have been
as Proper Officers for
Rule

10

of

the

the Manager should be later than the

declared

date of execution of the document by the

the purpose of

Stamp

Act,

1889.

borrower.
e. The stamp may be affixed and cancelled

Accordingly they are empowered to affix

with date by

and impress special adhesive

minimum required forms or as and when

stamps.

in

the

required numbers of special

Branches should not affix the stamps on

Stamps under various denomination by

remitting the value in cash in the Treasury.

is

Manager

The managers are required to obtain the

Adhesive

form

Branch

required to be used.

the forms in bulk.

f.

Branch Managers alone are empowered

The stamp for the required amount can be

to affix the stamps and put the seal on

affixed by the Branch Manager on the

them with their signature.

documents as and when necessary. The

following procedure should be followed.
a.

Required

Special Adhesive

g. In all other places where the managers

are not empowered to cancel the

Stamps

stamping it must be cancelled by an

shall be affixed by the Branch Manager

authority so designated by the Act (viz.

on the printed forms in the space

a treasury). Refer para 5 above for

provided for, if no space is provided, the

details.

stamps may be affixed on the right side

Bill of exchange stamps

top of the first page of the form.

7. Usance Bills drawn and payable in India.

b. Such Special Adhesive Stamps shall

Usance Bills drawn in India and payable

be affixed on the printed forms as stated

outside India, and Usance Bills drawn

above,

of

outside India and payable in India, are

execution of the documents by the

liable for stamp duty. Usance Bills drawn

borrower.

in India and payable in India or outside

before

or

at

the

time

Any stamps affixed after

execution of the documents will amount

should be drawn on

to contravention of law.

Special Adhesive Stamp should be used

c. Branch

seal, should be

put on the

and

cancelled

by

hundi paper or
Treasury

before

Adhesive Stamps so as to cancel the

execution. On usance Bills drawn outside

stamps. If more than one stamp is

India and payable in India.

Foreign Bill

Stamps

are

to

be

affixed

before

negotiation or presentation.

personal and small loans and agricultural

advances

Execution

Documentation cum Due Date Register and

8. All documents must be executed in the

Diary for Renewal of documents are to be

presence

of the Manager or Deputy

Manager or any official.

should

maintained by the

branches to ensure

The parties

timely renewal of documents. Refer GMs

sign in full according to their

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

specimen signatures.

If a document

in page No.401. Branches should preserve

consists of a number of pages, all of them

the documents borrower wise and limit wise.

should be signed by the borrower. As far

Loan documents relating to a particular limit,

as possible, there should be no correction

say, CC Limit or Term Loan limit should be

or over-writing

kept under a docket

or interlineations in the

giving the following

document. Correction or over-writing

or

interlineations,

must

be

1. Name of the borrower

initialled/signed by the executants.

All

2. Nature of credit facility

if

any,

details on the docket sheet.

blank spaces in the document should be

3. Amount

filled with the

4. Date of document.

authenticated

relevant particulars and

by

the

addition to signing

executants

at the end of

in

5. Form

each

6. Due

of the advance should be

on the same date preferably.

date

for

taking

confirmation of balance/

However

documents should not be dated

of

documents

page. The execution of documents and

disbursement

number

revival letter.

later

7. Date of current sanction

than the date of advance.

letter.
Executants

Documents execution register

10.

All

persons

competent

9. The date, names of executants, amount

contract,

can

/ limit of the advance and the nature of

However

documents executed should be clearly

undischarged insolvent cannot execute

entered in the register. The entries in the

any document.

register

should

be

signed

by

the

execute

to

minor,

documents.

lunatic

or

an

Execution of documents by illiterate

Manager/Deputy Manager after verifying

persons

that the executed documents are in order.

11.

a.

In

the

case

of

illiterate

No entry need be made in the register in

persons left hand thumb impression of

regard to documents for advances against

the borrowers should be obtained.

fixed and other deposits, jewel loans,

Thumb impression of a person once

affixed to a document cannot be

2. When the blind person desire sanction

disputed as not belonging to him and

of a loan jointly with another person whom

therefore,

he considers reliable, the loan

it can be treated as a

proper mode of execution of

by

granted to them jointly. In such an event

illiterate person. To vouch-sale about

while

the

contents of the

person

affixing

the

thumb

may be

obtaining

the document the

document

as well as

impression, it can be certified as

terms and conditions of the sanction

belonging to a particular individual.

should be read and explained to the

Such a certificate cannot be treated

borrower in the presence of a witness as

as an attestation (witnessing) to the

detailed above.

contents of the documents.

In such

3. In case of advances made to

cases a certificate has to be added as

person

under: Contents of the above were

alternatively the other borrower may be

read

authorised by the blind person to execute

over

and

explained

to

the

jointly

with

a blind

another

person,

executant(s) in vernacular language

the

and he/she

letter and / or confirmation of balance,

before
Left

understood the same

affixing his/her impression.

Hand

Shri/Smt

thumb

impression

..

taken

loan documents, sign the

create

mortgage,

charge

revival
etc.

by

of

executing a special power of attorney

by

(attested by notary public or First Class

. (in whose presence the

Magistrate) and

left

could be executed by the other borrower

hand

thumb impression was

taken). Before
concerned

the certificate

the

officer should sign and

indicate his designation.

Execution

agent. Before

the loan

documents

obtaining the document

from the agent the contents of the Power

of Attorney should be read over and

of documents by blind

persons

explained to the

blind person in the

presence of a witness and only when he

11.b.1 Loans can be granted to blind

confirms the execution of such a Power

persons individually. In that case, the

of Attorney, the

documents should be

loan document should be read over

obtained. The fact of such confirmation

and explained to the blind borrower

should be recorded under the signature of

before he executes the same and a

the witness as detailed above.

letter to that effect may be taken

4. The witness may be another customer or

from a witness as per Annexure 11.

a person known to the bank but should not

Further the borrower may be asked

be related to the blind person. Staff

to open a SB Account.

members should not be a witness.

The Loan

amount may be released through

that account.

Attestation (Witnessing)

12.

Some documents are required to

revive

be compulsorily attested while

Comprehensive Revival letter (F.301B)

others are not. Mortgage deed,

meant for guarantors should be obtained

Gift

of

from guarantors for all type of borrowal

Will

accounts after 27 months of date of

require to be attested atleast by

guarantee document/last Revival Letter,

two witnesses. Other documents

but before 3 years from such date. (Even

should not be attested unless

though Madras High Court had held that

provision has been made in the

borrowers

document for such attestation.

extend the limitation as against the

deed,

immovable

Sale

deed

property

or

loan

agreement

and

acknowledgement

will

DPN.

not

Renewal

guarantor, the Supreme Court had held

13.

In India under the Limitation Act,

very clearly in Margaret Lalitha Samuel Vs

Demand Promissory Note cannot

Indo Commercial Bank case that such

be used upon after three years

borrower acknowledgement shall extend

from the date of their execution.

the limitation against the guarantor also)

The documents have, therefore,

Confirmation of balance should be

to be renewed before expiry of 3

obtained each year from the borrowers for

years. Branch should, therefore

all cash credit accounts and overdraft

diarise

the

except loan accounts and it should be

pronotes 9 months before they

obtained each year from the guarantors

become time barred.

for all borrowal accounts.

for

renewal

of

Comprehensive

Limitation for filing a suit

against the

14. Comprehensive Renewal letter in F 301

borrower and guarantor will get extended for

(Revised) must be obtained from the

further period of three years by their

borrower within three years from the date

confirmation of balance, Revival Letter and

of execution of the loan documents or

part

within three years from the date of the last

Whenever revival letters are taken, details

revival letter. Revival letter (F.301) meant

should

for the borrowers should be obtained from

Execution Register immediately below the

them for all types of borrowal accounts

documents listed, taking care to mention the

after 27

name of executants and the date.

months if the date of loan

payment
be

under

entered

their

in

the

signature.
Documents

documents/last Revival letter, but before

Special precautions

expiry of 3 years from the date of loan

Advances to Limited Companies

documents/last revival letter. It can be

15.1.The Branch Manager should verify the

taken now for all borrowal accounts

Memorandum

(including borrowal accounts where DPN

Association of the borrower company

is not taken) since has been revised to

to

ensure

that

and
it

Articles
authorises

of
the

company (a) to engage itself in the

the aggregate the paid-up capital of the

activities for which the loan/advances

Company and its free reserves, that is to

is considered by the bank and (b) to

say reserves not set apart for any

borrow money against the security of

specific purpose.

its assets. The Articles of Association

15.3

It

is

therefore

necessary

should have a clause empowering the

allowing

Board of Directors of the borrower

Temporary loans obtained from the

company to borrow money by creating

Companys Bankers i.e Loan repayable

mortgage/charges on the whole or part

on demand or within six months from the

of the undertaking.

date of the loan, such as short term cash

Manager

should

The Branch

ensure

that

advances

before

(other

than

the

credit arrangements discounting of Bills

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

and other short term loans of seasonal

of the Companies

character)

to

(i)

Public

Limited

Companies

or

(ii)

Private

Limited

Act, 1956

are

compiled with, wherever necessary.

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

Companies which are subsidiaries of

Companies Act 1956 (Restrictions on

Public Limited Company to verify that

powers of Board) run as under:

the total borrowings of the Company do

1. The Board of Directors of a public

not exceed the paid-up capital plus free

company or of a private company which

reserves, if the borrowing should exceed

is a subsidiary of a public company shall

these

not except with the consent of such

authorising such an excess has to be

public company or subsidiary general

passed in a General Body Meeting of the

meeting.

Company

a. Sell, lease or otherwise dispose of the

whole, or substantially the whole, of the

limits,

Certified

prior

copies

resolution

of

such

resolutions must be obtained and kept

with the documents.

undertaking of the company, or where

15.4 A certified copy of the resolution

the company owns more than one

passed at a meeting of the Board of

undertaking,

or

Directors of the Company aurthorising

substantially the whole of any such

the advance stating the terms and

undertaking.

conditions thereafter etc should be

of

the

whole,

b. Borrow moneys after the commencement

obtained . The resolution should further

of this Act, where the moneys to be

state the names of person or persons

borrowed, together with the moneys

who would execute the documents on

already borrowed by the Company

behalf of the company. In the case of a

(apart from temporary loans obtained

mortgage,

from the Companys bankers in the

state the name(s) of the person/persons

ordinary course of business) will exceed

who are authorised to deposit the title

the resolution should also

deeds on behalf of the Company.

All

known as XYZ LTD)..Authorised

resolutions of the company should be

Signatory

certified by the Chairman of the Meeting.

3.

15.4.a. Documentation procedure when

The change of the name is to be

noted in the ledger and accounts.

Private Limited companies change

4.

No correction is required in the loan

into Public Limited Companies.

documents already executed by the

As per the provision of Sec 43(A) of

company.

Companies

further

Act

private

limited

However, while taking

documents

future,

company

company when the average annual turn

documents in their new name as a

over exceed a certain limit prescribed by

public limited company. Refer circular

Central

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

company shall become a public

execute

the

company will become a public limited

government. A private limited

should

in

the

limited

procedure to be adopted in case of

company when it accept deposits after

change in the name of the limited

an

company.

invitation

is

made

by

an

advertisement or renew deposits from

public.
When a private limited company changes

15.5 Registration of charges:

into a public limited company, its rights and

In

the

case

all

including

not affected and therefore, it may not be

certain charges on their assets have to be

necessary to disturb the loan documents

compulsorily registered with the Registrar

already executed by the company. It may

of Joint Stock Companies under Section

not also be necessary to close and open the

125 of the Companies Act 1956.

account for the reason of conversion of

The following charges require compulsory

private limited company into a public limited

registration:
a.

noted procedure in this eventually.

1.

Copy of the amended Certificate of

2.

Companies,

a charge for the purpose of

securing any issue of debentures;

b.

Incorporation issued by the Registrar

of Companies should be obtained

Limited

companies

liabilities already undertaken to the bank are

company. Branches should follow the under

Private

of

a charge on uncalled share

capital of the company;

c.

a charge on any immovable

and kept on branch records.

property, wherever situate or any interest

Confirmation of Balance and Revival

therein;

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

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.

is not necessary that the account

should be closed and new account
opened for the total limit on the basis

floating charge on the

of fresh documents. It is sufficient to

undertaking (or) any property of the

take documents only for the enhanced

company including stock-in-trade ;

portion of the limits or the additional

g.

a charge on calls made but

not paid;

facility and register such charge with

the Registrar of Companies within the

h.

a charge on a ship or any

share in a ship;

i.

prescribed

time

of

30

days.

declaration in the form of a negative

a charge on goodwill, on a

lien that the assets are free and

patent or licence under a patent, on a

unencumbered

trade mark , or on a copyright or a

that the said assets shall not be sold,

licence under a copyright.

mortgaged, pledged hypothecated or

15.6. It should be noted that the charge has

in

any

way

and an undertaking

encumbered

without

to be registered in Form 8 along with

previous consent of the bank in

Form 13 within 30 days of its creation

writing , should be obtained in Form

after verification of prior charge, if any,

419 . This document does not require

by making a search in the books of the

filling of any charge with Registrar of

Registrar

Companies(ROC).

Companies as, such a document does

Registrar may allow for registration

not create any charge on any property

upto 30 days after expiry of 30 days, if

of

the delay is genuine. When the terms

procedure of filling charge with ROC

and conditions or extent of operation of

refer

any charge already

27.06.95 and 7 (e)

of

registered are

modified, a modification of charge

should also be registered in Form 8
along

with

Form

13

under

the

company.

circulars

For
(e)

detailed

3/95-96

dt

1/96-97 dt.

12.06.96.
15.7 Affixing of Companys common Seal

the

necessary wherever it is stipulated

provisions of Section 135 of

the

either in the Article of Association of

Companies Act within 30 days .

An

the Company or in the resolution

increase in the rate of interest higher

passed by the Board of Directors.

that the rise in RBI rate, constitutes a

There are some advantages in proving

modification of charge and hence has

a document containing Common Seal.

to be registered with the Registrar of

Therefore in all loan documents such

Companies . When the existing limit

as

of advance is enhanced or additional

and

facility is sanctioned to the company, it

Company, branches may insist for

DPN, Hypothecation Agreement

indemnities

executed

by

the

Common Seal of the Company , which

payment of his separate debts and the

should be affixed in the presence of

surplus (if any) in the payment of the

the

debts of the firm.

Directors/Secretary

authorised

under a Board resolution.

In view of this provision , branches

15.8 Before granting an advance any form

should obtain the personal guarantee

to a limited company , a search should

of all the partners, for the debts of the

invariably be made in the Office of the

firm.

Registrar of Companies to ascertain if

Sole proprietary concern

any prior charge exists over the

17.

security offered.

The proprietor of the concern

should sign the loan or advance

Advances to partnership Firm

documents as proprietor

16. Though a partner has implied power

by affixing

the rubber stamp of his concern.

to borrow or pledge the movable

property of the firm, the loan or

Pegging of Deposits/Loan

advances

18.

signed

by

documents
all

the

should

be

partners

.If,

Branches who

limits sanctioned , with the stipulation

however , one or more partners are

that

specially

deposits

authorised

by

have got credit

the

the

investments
and

by

loans

way
by

of
the

partnership deed or by a letter is

partners/directors

signed by all the partners of the firm,

during the currency of the advance,

the documents may be signed by

should

such authorised partners . Execution

depositors undertaking not to withdraw

of the documents should be under

their

the firms rubber stamp . Format of

currency of the loan to the borrower,

letter

such letter of pegging should

of

authority

is

given

in

Annexure.

obtain

should be pegged
letters

deposits/loans

from
during

the
the
be

obtained in Form F 418.

Sec 49 of Indian Partnership Act reads

Title Deeds

where there are joint debt due from the

19.

a.The

title

deeds

must

be

firm and also separate debts due from

deposited by the owner of the property

any partner, the property of the firm

or his agent, specially authorised for

shall be applied in the first instance in

such purpose by a power of attorney ,

payment , of the debts of the firm and

who must attend the office of the Bank

if there is any surplus, then the share

for the purpose. If there are more than

of each partner shall be applied in

one owner , and all cannot attend , a

payment of his separate debts or paid

power of attorney in the name of one

to him. The separate property of any

of them must

partner shall be applied first in the

others, for depositing the title deeds.

be executed by the

Where the title deeds are in favour of

The borrower should however execute a

a partnership firm, and all the partners

letter of confirmation of deposits of title

of the firm cannot attend the banks

deeds in Form F379 preferably on the next

office , they must execute /authorise

day of the deposit.

by a power of attorney one or more of

extending the scope of security of equitable

them to attend and deposit the deeds

mortgage (viz, mere deposit of title deeds or

on their behalf. This power of attorney

deposit

must be notarially attested and be kept

Memorandum) the mortgagor should call at

along with title deeds. If the borrower

the Branch.

is a company, a resolution delegating

should be entered in the title deed register

the powers to one of the Directors or

as per narration given in page No.

to one of their officers, to deposit the

the next day, a confirmation letter in Form

title deeds must be passed by the

No. 379A

Board of Directors.

owners.

The power of

For purpose of

accompanied

by

Registered

A supplementary narration
On

should be obtained from the

The encumbrance Certificate for

attorney/certified copy of the resolution

the period during the date of earlier title

should be kept along with the title

deed narration and the supplementary

deeds. The execution of power of

narration should be obtained and kept on

attorney must be notarially attested.

record.

If

there

is

any

intervening

encumbrance, the matter should be referred

Whenever a third party offers immovable

to the sanctioning authority.

property as mortgage security, personal

In the case of Limited Companies, the

guarantee should be obtained

from such

supplemental narration should be obtained

third party. Otherwise it can be contended

as given in Page No. of this manual and the

that there was no consideration for the

confirmation letter signed by the authorised

mortgage.

signatory of the company on the next day as

detailed in Form No. 379A. It is necessary

The title deeds , should be originals, Copies

to

of title deeds should not be accepted without

supplemental narration is for the purpose of

prior reference to Central Office.

extending the scope of security.

The

file modification of charge since the

narration in the specified form as given in

page No.

of this manual (para 12

Revival of Mortgage

Chapter XG of Book of instructions) has to 19b. Mortgage by deposit of title deeds of

be made in the Title Deeds Register by an

registered mortgage is valid for a period

Officer of the Bank and witnessed by two

of 12 years from the date of mortgage.

Officers. The borrower should not sign the

To extend the mortgage beyond this

register and no acknowledgement of receipt

period

should be passed on to him by the Bank.

procedure should be adopted.

any

one

of

the

following

i.

Before the lapse of 12

Signature of Mortgagor

years from the date of mortgage branch

Alternatively it will suffice if branches

should obtain balance and security

takes security confirmation letter within

confirmation letter as per the format

12 years from the date of the Registered

given in Annexure2. The balance and

Mortgage Deed and follow the procedure

security confirmation letter should be

outlined in para 19.1 (i)

properly

filled

and

signed

borrower/guarantor

over

by

the

Revenue

stamps as in the case of Revival letter.

ii.

The branch can also

Guarantees
20.a.

Joint

Stock

Company(Limited

Company)

create a fresh equitable mortgage by

Branches

should

examine

the

redeposit of title deed provided there is

Memorandum and Articles of Association of

NIL encumbrance during the indemnity

the company to see if it has power to give a

period. Care should be taken to obtain

guarantee or offer security.

nil encumbrance till date of redeposit of

branches have to examine this aspect of

title deeds.

power either.

iii.

Whenever

In the Memorandum and

In case of Registered

Articles of Association or in the power of

Mortgages branch should not arrange for

Attorney , specific guidance will have to be

redeposit title deeds. The period of

given that the authority to give a guarantee

limitation

an

or to create a mortgage ought to be clearly

endorsement by the mortgagor on the

spelt out and not to be interred from general

Registered Mortgage Deed as to the

terms.

can

be

extended

by

repayment of principal and interest. The

endorsement should be made on any of

20.b. Partnership

the reverse page of the Registered

As the giving of guarantee is

Mortgage Deed and the endorsement

outside the normal business of a partnership

should be on the following lines; I/We

, it is always advisable to require all the

hereby confirm and acknowledge my/our

partners of the firm to join in signing a

indebtness in the outstanding sum of

guarantee given on its behalf, unless an

Rs(Rupees

individual partner has express authority to

Only ) as on ..and

give a guarantee, binding the firm. It is

further acknowledge that the debt is

however preferable to obtain guarantees of

secured by this Registered Mortgage

all the partners in their individual capacities.

and that the Mortgage security is in full

force and effect.

Guarantees should

be obtained in

all cases on Form 111 from the guarantor

Place:

either prior to or simultaneously with the

Date

execution

of

loan

documents

by

the

borrower.

If it is a case of securing and

e. Letter of authority to be given by

existing advance , the appropriate form of

the member banks to the Second

guarantee is Form 111A .This may be noted

Lead Bank.

carefully as

Form 111 is not a valid

f.

Working

capital

consortium

document for guarantee relating to existing

agreement between the borrower

debts.

and the Participating Banks- to

Consortium Advances

be signed by the Borrower , the

21. In consortium advances, two or more

first Lead Bank for self and on

financial

institution

join

together

in

behalf of other banks.

meeting the financial requirements of a

g. Joint Deed of Hypothecation to

borrower . They share the securities on

be executed by the Borrower

pari passu basis or in such manners as

company

per the terms of the agreement among

Participating

themselves.

signed by the borrower only.

in

favour
Banks

of
-

to

the
be

Generally, the following procedure is

h. Inter see Agreement between

adopted before entering into pari passu

the participating Banks- to be

agreement.

executed

1.

When

the

working

capital

the

consortium

banks only.

facilities are granted against the security

of

by

i.

Undertaking

letter

from

the

current assets , single window

Borrower company for creating

concept is to be adopted . The following

Second charge and on Fixed

documents are to be executed. Refer

Assets- to be obtained by the

Permanent Circular ADV.541/89 dated

First Lead Bank.

23-6-89.

j.

a. Board Resolution to be passed

Revival Letter (RL) to be signed

by the Borrower Company- to be

by the Borrower Company.

obtained by the First Lead Bank.

b. Resolution to be passed by the2.

2.

When term loans are granted

member banks for appointing the

against the security of immovable

First Lead Bank and Second

property , the Lead Bank examines

Lead Bank.

the title to the property. The opinion

c. Resolution to be passed by the

on title deeds obtained from the

Second Lead Bank.

advocates/solicitors

d. Letter of authority to be given by

circulated

among the participants.

the member banks to the First

Lead Bank.

is

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

Borrower to you under your Heads of

will be ordinarily as follows , but it may be

Agreement

varied according to circumstances.

letters entered into by the Borrower issued

agreement

sanction

Dear Sirs,

by you to the Borrower without any

Letter ceding pari passu charges

preference or priority of one over the other

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

created/

mortgage

to

be

and

charge

created

by

.(hereinafter
called the Borrower ) in our favour in
respect of the Borrowers immovable and
movable

properties to secure the term

loan of Rswith 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
1In respect of its term
loan of Rs..
2.In respect of its term loan
of Rs..
(Name

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

parties Inter se

and obligations of the

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 ,

of

the

participating

custody of title deeds, application and

realisation of sale proceeds etc.

their amount of loan)

form and in such manner as may be

interest thereon at the

respective rates, compound interest in case

prepayment

We all authorise you to make a mention of

Institutions with the detail of

together with
default

or others of them for all purposes and to all

intents.

..

of

/loan

commitment
premia,

costs,

charges

in such

mutually agreed upon.

We also request you to issue a

similar letter to us conceding pari passu

charges

charge in our favour on the Borrowers

,expenses and their monies payable by the

assets

in respect of

our above term

loans if not already issued.

in the terms and conditions of the charge

due

Yours faithfully,

favour of all the participating Institutions.

The lead bank accepts the title deeds
and

on

behalf

of

subsequent

execution

of

be filed.

A joint equitable mortgage is created in

itself

to

documents, modification of charge is to

for

Companies. When there is any change

other

participants as their agent.

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

In respect of the movable machineries,

the borrower and the relative Insurance

each participating bank may either take

policy(ies) should be held with the

its own hypothecation deed or they may

security

take a joint deed

of hypothecation as

cover risks of theft, damage due to fire

agreed between them. Finally a pari

and riots. Cover for any special type of

passu agreement is executed by all the

risk

participants.

godown, nature of machinery or stocks

documents. Insurance should

depending on the location of

should be taken in consultation

with

Before execution of the pari passu

Central Office. In cases of insurance for

agreement and other joint documents,

machineries, cover should be available

the lead bank or the Solicitors nominated

for erection, break down, etc. wherever

by the participants circulate the drafts

necessary.

among the participants for the purpose

The

In case of goods delivered under trust, a

suggestions made by the participating

suitable endorsement in the policy must

institutions as may be agreed upon, will

be obtained, as ordinary policies do not

be incorporated in the drafts.

cove goods held under trust. While

of

getting

their

approval.

obtaining cover notes/policies it should

If the borrower is a company, whenever

be ensured that proposal forms have

charge is created over its assets in

been filled in and filed by the borrower

favour

with the Insurance Company.

of

the

individually

or

registered

with

institutions

jointly, it
the

either

should

be

Registrar

of

Insurance may be waived in the following

cases.

Category

Type of risk

Type of assets

a. 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 of
i.
Composite loans to artisans village
and cottage industries.
ii. All term loans
Fire
iii. Working Capital where these are against
non- hazardous goods/Current assets
Fire

Fire

-doEquipment
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.

person and executed the documents.

Obtention of Documents on behalf of
other branch

Mention should be made on the time

and date of execution also. The other
branch should keep this letter along

23. Branch which requests the other

with the documents. If at the branch

branch to obtain documents, should fill

where documents has to be enforced,

up the

higher stamp duty is payable,

form in all respects

and

the

forward the same to the branch, where

deficient stamp will have to be paid.

it has to

In states where our Branch Managers

be duly stamped and got

executed. At the executing

branch,

are authorised as proper officers to

party should call in person

and

cancel special adhesive stamps, they

execute

in

the

can

Manager.

The

the

presence

of

documents
the

affix the deficient stamp and

cancel with

their full

signature

Manager should get himself satisfied

mentioning the

about the

cancellation. In other states, such

identity

of the party.

actual date of

Manager shall forward the documents

deficient stamp duty must be

to

good

the

concerned

branch

under

registered post, with acknowledgement

by

the

Officials/collector of stamps.

due and in the covering letter should

state

specifically

that

the

named

executant had called on the branch in

In case of Sub Limits

made

Treasury

23.A it is the practice to allow certain

Office/Central

parties to enjoy sub limits at various

concurrence of the transferee branch

centres on the basis of proposals

for effecting

submitted by one branch. In such

account.

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.

Office to obtain the

transfer of a borrowal

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

Transferring of Advance Account

the following,

from one branch to another

advice, under registered post with

24.

Advance

accounts

transferred from

can

be

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

along

acknowledgement

with the debit

due.

It is also

incumbent on the part of the transferor

branch to rectify all the

rectifiable

mistakes

by

pointed

out

the

Inspectors/Auditors in the previous

inspection reports, before the account
is transferred.
1.

Copy of permission

limits have been sanctioned under the

received from Regional Office/

discretion of the Regional Manager, a

Central Office for transferring the

report should be sent to Central

account.

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

2.

Copy of the letter of

request

from

the

party

duly

countersigned by the guarantor

as per Annexure 3.

3.

Loan documents and

and the date of debiting the account at

the insurance policies on the

the transferee branch). Transferee

assets charged to the Bank.

branch

4.

Latest

copy

of

sanction endorsement

of limits

(copies

sanction

of

all

endorsements)
5.

transfer

from

the

last

sanction.
6.

Inspection

extract

report on

of
the

account and reply of the Branch.

and guarantor on the date of debit.

If the credit facilities are secured by a
while

transferring

the

facilities, branches need not disturb

the title

deeds lodged with the

transferor branch. However, branches

Services Department whenever
enhancement is made in the

confidential

note

any
limits

already sanctioned prior to the transfer

of

7.

debit

should seek instructions from Legal

Relevant

the

obtain

confirmation letter from the borrower

mortgage,

F 209 upto the date

of

should

facilities,

as

supplemental

narration has to be recorded.

prepared by the Manager of the

transferor branch giving a critical

In the case of limited

comment on the conduct of the

while

account, the past

formalities

with

the

experience

borrower and his

recommendations

about

the

that all the above

are

branches should

complied

note to obtain

meeting, for

receipt

of

the

above,

transferring the

account. A supplemental
On

with,

resolution passed by the directors, at

their

party.

ensuring

companies,

agreement

the

as per specimen provided in Annexure

open the

9 & 10 should be filed along with form

account on the account on the basis

8 and from 13 with the Registrar of

of

from

Companies, for modification of charge,

transferor branch. While doing so,

within 30 days from the date of

branch should also

execution of supplemental agreement.

transferee branch should

the

advice

received

ensure that

interest for the interegnum period is

calculated and debited (interegnum

Branches should also note to obtain

period is the time lag between the date

necessary

of transfer from the transferor branch

Insurance Company in the Insurance

policies.

endorsement

from

the

Branch should seek instructions from

the transferor branch is received, the

Legal Services Department in respect

transferor branch should immediately

of documentation whenever accounts

forward the letter to the transferee

are transferred inter-State.

branch under a copy to Regional

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

documents

very

whenever
credit

should

handle

expeditiously

received under letter of

opened by the

transferor

branch, as it is not possible to advise

the negotiating

Bank/beneficiary

the guarantee

about the transfer of

account to another
receipt

of

of

bills,

branch.

transferor

On

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
should

the

be

negotiating

advised

Bank

about

the

discrepancy in the usual manner and

advising the Bank that the Branch is
holding
negotiating

the

document
Banks

risk

at

the
and

responsibility. However, the documents

should be forwarded to the transferee
branch immediately. Similarly, when a
claim under a guarantee issued by

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
obtaining

from

another

permission

bank

from

on

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

letter

from

the

9. Send

the

Bankers

Cheque

transferor Bank listing out the

/cheque along with the covering

dues from the borrower

letter

3. Obtain a letter of confirmation

through

our

bank

messenger only.

from the borrower as to the

In case of limited companies , In

correctness of the outstanding.

addition to the above, the following

4. Obtain documents as per this

Manual.
5. Obtain

1. Conduct a search in the files

letter

authorising

of

authority

payment

to

the

transferor bank.

of the Registrar of Companies

and take out a list of subsisting
charges ; if any second charge
is in evidence , branch should

6. Comply with the instructions

issued

formalities should be complied with

by

Central

seek instructions from Legal

Services Department enclosing

in

a copy of list of charges priority

respect of advances from time

wise and copy of sanction from

to time.

Central Office to taking over of

Office/Regional

Office

the account.
7. To the debit of the Loan/Cash
2. Exchange

the Bankers

cheque on Reserve Bank of

Cheque/Cheque

on

India State Bank of India or

Bank of India /State Bank of

Bankers Cheque favouring the

India for Form 17 (Satisfaction

Bank mentioning the name of

of charge) No due Certificate

the borrower viz., ABC Bank

and No Lien Certificate.

Credit

account,

prepare

A/C: XYZ Ltd.,

Reserve

3. File Form 17 (given by the

8. Draft a covering letter, in which

transferor Bank) and Form 8

the

and Form No:13 (creation of

appropriation of the amount as

charge in our favour with the

per instructions of the borrower

Register

and call for No due Certificate

Preferably on the same day).

clearly

indicate

as

to

and No lien certificate from

the transferor Bank.

of

Companies

Branches should not commit to the

There are two ways to revive a

Bank either in writing or orally as to the

time-barred debt. viz.

other outstandings which have not

been covered under the arrangement.

a.
loans

money directly to the borrower for

the

present

(time barred) account out of the

should be sent only through our Banks

from

for

to close the debit balance in the old

cheque favouring the transferor bank

accounts

/guarantee

interest along with a written request

circumstances . The Bankers cheque/

new loan amount.

detailed

procedure on take over of borrowal

account

outstanding together with upto date

for adjusting the outstanding under any

other

/security

documents

remitting the same at the other bank

For

loan

can be opened after taking fresh

Branches should not disburse the

messenger.

New

b.

Without closing and

other banks, refer

opening the account an express

permanent circular Adv.234/98 dated

promise agreement can be taken

28.4.98.

from

Regularisation of timebarred debt

the

borrower

and

fresh

guarantee F111A can be taken from

the

guarantor.(If

there

is

any

For any reason, if a loan

mortgage security , only this method

account is time-barred for enforcing

should be adopted instead of first

personal remedy in the absence of any

one).

revival

letter

balance,

or

or

confirmation
any

letter

of
of

Modification of charge

acknowledgement or payment under

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

the borrowers signature, the matter

laid down that when the existing limit

should be immediately reported to

of advance is enhanced or additional

Regional Office and the concerned

facility is sanctioned to the company,

advances

to

Office.

Department

at

Central

In consultation with Regional

Office/

documents

for

the

enhanced portion/additional facility

Advances

supplemental

measures

obtained in any of the following three

should be taken to revive the time-

cases and the deed in respect of

barred debt.

each case is prescribed hereunder.

Department

concerned

obtain

remedial

deeds

are

to

be

(Refer

permanent

circular

ADV

423/88 dated 31.5.88)

Enhanced

limit

The

General

Hypothecation

Agreement (110E) must specify the

with

the

same

security 110F

nature and amount of credit facilities

for which collateral security has been
stipulated

and

schedule

column

Enhanced limit with additional security

should be filled in appropriately eg.

110G

All present

and future ------ of the

borrower at the factory premises or

Same limit with additional security

elsewhere.

110H
Branches should note that we can
Creation

of

(Machineries

Collateral
&

Security

Current

Assets)

General Hypothecation Agreement

stipulation

only

movable

hypothecation

things

in

agreements.

Therefore, in the schedule column

28. Whenever a sanction endorsement

contain

secure

that

either land or building should not be

mentioned as hypothecated security.

machineries or current assets or

29. When limits are enhanced where

book debts should be held as

pronotes and connected documents

collateral security for other credit

are taken afresh for the full limits the

limit(s) ,branches should obtain the

old account should be closed by

general Hypothecation Agreement

transfer to a new account on the

for

in

basis of new documents. In the case

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

of cash credit or overdraft, the

addition

loan

borrower should be asked to issue a

documents take for the concerned

cheque against the new account

limits.

equal to the outstandings in the

collateral
to

securities
the

usual

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

institution, we cast upon ourselves the

in all cases where documents are taken not

responsibility

withstanding the limit being the same,

Financial Institutions interest also. Our

reduced or enhanced. This however will

responsibility

not be applicable in the case of LIMITED

Institutions

COMPANIES when the existing limit of

Financial Institution, the fact that our

advance is enhanced or additional facility

bank is contemplating action against

is sanctioned to a firm/company , it is not

the borrower for realisation of our dues

necessary to obtain fresh documents for

and to pass on the surplus, if any, to

the total limits and to close and open a new

the

account , to obviate disturbing the security

branches

mortgaged.

documents, our letter ceding second

It

is

sufficient

to

take

of

safeguarding.

towards

Financial

includes

Financial

informing

Institutions.

should

keep

Hence

with

the

documents only for the enhanced portion

charge in favour of

of the limits or the additional facility.

Institution and also make note of the

Procedure to be followed by our bank

while ceding second charge on current
assets in favour of financial institutions.

same

in

Register.
record

the Financial

Document

Similarly

the

fact

Execution

branch should
that

Financial

Institution have ceded second charge

prior

on the fixed assets in favour of the

approval of the competent authority

bank. Draft of No-objection letter to be

before ceding second charge on the

given

current assets of the company. Further

ceding second charge on

our ceding second charge on the

assets is appended in Annexure 16.

30.

Branches

must

obtain

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

to the borrower in respect of

Procedure for creation

current

of second

charge on fixed assets in our

favour, where first charge
already been created in

has

favour of

other financial institutions.

31. As first step, a consent letter/no
objection letter from the first charge

branches are aware that by our bank

holder

either

addressed

to

the

ceding second change on the current

borrower or bank should be obtained

assets in favour of the Financial

for extending second charge on fixed

assets for facilities granted by the

When a

bank.

company, Board resolution should be

Normally the first charge

borrower

is

limited

holder will address the consent letter

passed

to the borrower added with some

extend the mortgage and execute

conditions.

necessary

Thereafter,

authorising a

Director to

documents as may be

hypothecation deed will have to be

required by the Bank for purpose of

obtained by bank creating

creating a second charge on the fixed

charge

on

machinery.

second

Then

authorisation letter should be

an
sent

by the Bank to the first charge holder

requesting them to act as agent for
the

purpose

of

extending

the

mortgage.

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

In order to extend the mortgage by

be necessary to have hypothecation of

way

machinery, for the concerned limits as

of

equitable

mortgage,

the

borrower should call at the office of

stated above.

the first charge holder and authorise

working capital limits such as cash

them to continue to hold the title deeds

credit/packing

on

as

secured by stocks by a hypothecation

continuing collateral security for the

deed F.251B/F 110A a supplemental

working capital facilities or any other

hypothecation deed in F 110H should

facilities granted/to be granted by the

be obtained for securing machinery. In

Bank. Subsequently, the

respect

behalf

of

the

Bank

also

borrower

of

When any of the

credit

other

is

already

working

capital

should confirm his representation by

facilities for which there is no earlier

writing

letter of Hypothecation, F110E should

a letter to the first charge

holder with a copy endorsed to

the

be taken for the aggregate of such

Bank. Based on such representation

limits mentioning therein the schedule

and the letter

as:

borrower,

the

received from the

first

charge

holder

should confirm in a letter addressed to

the Bank that the mortgage has been
extended in favour of the Bank.

All present and future machinery of

the borrower including vehicles at the
factory premises or elsewhere.
In

respect

borrower,

of

Limited

modification

Company
of

charge

should be filed based on F110-H in

Wherever advances are granted with

respect of limits for which charges

lending rates at par or below the RBI

have been already filed on stocks. In

lending rate, branches may henceforth

respect of other limits, fresh charges

obtain DPN which does not contain

should be filed based on F110E.

RBI interest clause.

On extension of mortgage also these

Accountability

charges may have to be modified.

33. No advance should be released

In order to put notice of our Bank

without

holding

documents complete in all respects.

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.

first

obtaining

proper

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

The machinery in this premises are

of advances that all the relevant

hypothecated to:

documents for releasing the facility

have been obtained duly filled in and

1)Bank
.(Name

of

the

completed
first

chargeholder)

and

signed

by

the

execucants in the capacity intended.

The format of the certificate is given in
Annexure 13. This certificate should be

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:

obtained

in

respect

of

each

loan/advances.
Branch

Chief

Manager

Manager/Manager/Senior

/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

should take up the matter immediately

certificate to his Regional Manager as

with the

per Annexure 14.

regarding

respective Regional Office

documentation,

Branch

should simultaneously obtain a letter

Death of Borrower

of undertaking as per Annexure 35

34. On receipt of the report that a

signed by all the legal heirs of the

borrower is deceased, the branch

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

9. In the case of National Deposit

Securities/Relief Bonds/

Scheme, Bank should get the

deposit receipt discharged by the

National Deposit Scheme

depositor, without specifying any

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

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.

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.

5.
Advance

against

For advance against Kisan

National

vikas Patra, documents

as

Savings Certificate/ Kisan Vikas

applicable to advance against

Patra/10

NSC

year

social

security

certificate

may

be

taken

with

suitable modification.
6. For advance against 10 year

1. Ensure ownership of borrower

Social

Security

Certificate,

or guarantor as the case may

documents as applicable to

be, of the security.

advance against NSC may be

2. Retain stipulated margin on the

taken

with

suitable

face value of certificate at the

modification. Margin on the

time of granting advance.

invested

3. Borrowers

should

not

and

value of certificate
suitable

repayment

discharge NSCs if they are

programme not exceeding 36

pledged as security.

months

time

of

At the

enforcement

of

may

be

fixed

depending upon maturity of

certificates, they are to be

certificates.

discharged by the bank, as

Margin

and

repayment

as

per

bank being the pledgee is

stipulation in the sanction or latest

deemed to be the holder of

guidelines, if any

certificate as per rule No.16(i),

of National Savings Certificate

Advances against Units of Unit

Rules, 1982

Trust of India

Refer Annexure

12.

1. Obtain

4. When the loan is fully repaid

documents

as

applicable to Govt. Securities.

return the certificates to the

2. Obtain relative Unit Certificates.

borrower along with the letter

3. Obtain

addressed

to

Post

Office

concerned informing that loans

have been paid and

the

certificates may be transferred

into

the

Obtain
F396.

name

of

pledgor.

acknowledgement

in

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

case

Annexure 8.

of

fixed

Deposit/Reinvestment Deposits.

6. Follow-up

and

obtain

the

Also record on the face of the

confirmation that the Unit Office

receipt or RD pass books as the

had made a note on its record

case may be UNDER LIEN TO

that the certificate is held in the

BANK in red ink.

Bank as security and the grant

7. In case of term deposits held at

the advance.

Advance against Term Deposits

1. Obtain

prescribed

different

branch,

before

granting the loans forward the

document

deposit receipt duly discharged

and got the deposit receipt duly

under Regd. Post and ensure

discharged by the depositor(s).

(1) Verification of the discharge

2. Enter particulars in the Loan

of the FDR (2). Lien has been

Ledger, particulars must contain

marked in the books of Deposit

the

Receipt issuing branch.

details

distinctive

of

security,

number,

date

its
of

8. Margin

for advance against

issuing of security its maturity

deposit receipts should conform

date and value etc.

to the directives on the subject

3. Verify the signature of the party

from the Reserve Bank of India.

with specimen on record.

Retaining a margin lower than

4. Prepare the debit cash voucher

prescribed by the Reserve Bank

in case loan is disbursed as

cash or transfer debit voucher

of India should be avoided.

9.

In case where deposits stand

and credit voucher crediting the

more than in one name and where

amount to the account as per

all the depositor are not able to

instructors of the borrower, in

discharge the deposit receipt, the

writing.

depositors, who discharges the

5. Post the amount in

the loan

ledger.

the

6. In case of loan against Term

Deposits

receipt should be authorised by all

(Fixed

Deposit

/Recurring Deposit) record the

other

discharge

joint
the

depositors
receipt

for

to
the

purpose of availing of an advance

from the bank there against.

lien in the Term Deposit register

* F60 H is Loan Application-cum-letter

and Due date Register in the

of Authority. If the borrowers(s) and

depositor(s) are different, the Loan

3.

One set of transfer deed is to be

Application should be signed by the

dated and other undated.

borrower(s) and the Letter of Authority

case

should be signed by the depositor(s).

Obtention of transfer deed is not

of

dematerialised

In the
shares.

necessary.
Advance

against

Shares

and

4.

Forward Notice of Banks lien to

Debentures

the

Ensure

duplicate under Registered Post

1.

respective

company

in

Actively Quoted Shares and

Acknowledgement Due and keep

debentures of limited liability

the copy, postal acknowledgement

companies registered under

and the companys acceptance or

the Companies Act, declaring

refusal of the notice along with the

dividend for the last 3 years.

security documents. In the case of

2.

Shares are fully paid for

dematerialized shares, instruct the

3.

Shares stand in the name of

prospective borrower for create a

the

pledge in our favour through his

4.

5.
6.

borrower

as

far

as

possible.

depository participant and get the

Any alteration in the share

same confirmed by our depository

certificate bears attestation by

services

the company under its stamp.

Mumbai (Metro).

Neither torn nor stamped with

5.

For

at
limits

Regional

Office,

exceeding

Rs.10

any Bank stamp nor mutilated.

lakhs where shares are held as

Shares not of a private limited

prime, additional collateral security,

company.

shares

should

be

transferred

Banks name. Shares lodged by a

Procedure

shares broker are exempt from this

1.

Obtain prescribed documents.

clause provided shares are held for

2.

All shares under pledge to the

a period not exceeding 9 months.

Bank are accompanied by Blank

Transfer Deeds in duplicate signed

Whenever

the

by the shareholder duly witnessed

advances granted to a borrower

by other than husband or wife of

exceeds Rs.10 lacs, it should be

the shareholder. Witness is to be

ensured

the

said

easily traceable.

shares/debentures/bonds

are

that

limit/limits

of

transferred in the banks name and

6. In case cited in clause No.5 in

that the Bank has exclusive and

respect of shares in physical

unconditional

in

form, only Form 1 has to be

For this

filed by the Bank with the

purpose of aggregate of limits

company in duplicate within 30

against

days

voting

rights

respect of such shares.

shares/debentures/bonds

granted by a Bank at all its

branches to a single borrower
should be taken into account.
Where

securities

are

dematerialised

held

form,

from

register.

in

8. Enter the details in Drawing

the

Power Register (Shares) with a

of shares in Banks name will not

party.

apply and the decision in this

sanctioning

be

taken

Authority.

by

of

7. Enter the securities in security

separate

will

date

registration of transfer.

requirement relating to the transfer

regard

the

the

However,

opening

for

each

9. Arrive at the current drawing

power i.e. market value of the
shares

less

margin

or

the Bank should avail of the facility

sanctioned limit whichever is

provided in the depository system

lower.

for pledging securities held in

10. Drawing power should be

dematerialised form under which

arrived

the

fortnight.

securities

pledged

by

the

borrower get blocked in favour of

the lending Bank.

In case of

atleast

once

in

11. Enter particulars in the Register

maintained

Company

wise,

defaults by the borrower and on the

against whose shares advances

Bank excercising the option of

has been granted.

invocation of the pledge, the shares

and debentures get transferred in
the

Banks

name

12. When the advance in adjusted

ensure:

immediately.

a. Recording of withdrawal

Shares in physical form lodged by

in Security Ledger and

a share broker are exempt from

Security Register.

this clause provided shares are

held for a period not exceeding
nine months,

Notice of lien to the

b.

Company is
c. If

the

withdrawn.

shares

were

registered in the name of

the Bank, they should be

delivered
transfer

with
deed

ii. continuance of such long term

the

advances exceeding Rs.5 lakhs

property

without repayment programme if it

completed and stamped.

Recording

d.

in

is

the

party

wise

and company wise.

e. Return of securities to
the
13.

14.

15.

16.

owner

against

feasible

determine

Drawing Power Registers

maintained

not

immediately

to

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

acknowledgement.

owner of an amount exceeding 30% of

Advance exceeding Rs.5 lakhs

the paid up share capital of that

must have a definite repayment

company or 30% of the Banks own

programme.

paid

If transfer feeds are signed by

whichever is less. In order to comply

attorneys on behalf of the share

with this stipulation, Regional Offices

holders,

shall

the powers in favour of

up

capital

maintain

and

register

reserves

with

the attorney should be registered

separate opening for each approved

with the concerned company.

Company and branches shall advise

No proxy should be issued by

respective Regional Offices as and

branches in respect of shares

when shares are lodged as securities

standing in the name of the Bank.

and released in the following format, in

Reserve

Bank

of

Indias

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.

the case of approved companies.

capital and reserve of the Bank

whichever is lower).
Name

of

the

Company

Authorised Capitalshares

_______________________________
_______________________________
_____
Sl. No. Date
Company
Face value
are lodged
each

Name of Borrower Name of the

Nature of Shares No. of Shares
whose share
of

ordinary/

of Rs.. each Rs.

preferences etc
share

Subscribed

Capital

1.

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

Market value
Total Market
No. of
shares
Paide up value of
Initials
of each
shares
Value
under security
Shares under security

Balance Cr.

the company or 30% of the paid up

Deposited withdrawn
Balance

Dr.

11

10

12

Central Office, through their respective

In case of companies which are

Regional Offices.

not in the approved list, Central Office

shall

maintain

register

with

i. Advances against shares may be

separate opening for each company

extended

and branches shall advise Central

individuals)

Officer

as and when shares are

contribution to the equity or new

lodged as securities and released in

companies, in anticipation or raising

the above format.

resources.

In the case of

to

corporates
to

meet

(not

to

promotors

Such advances should

companies, not in the approved list,

be treated as Banks investments in

prior clearance, has to be obtained

shares and would thus come under

from Banking operations Department ,

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

b,. Age of the insured must have been

admitted.

If not, arrangements

must be made to have it admitted.

be obtained through Regional office

c. Policies attracting the provision of

to ensure our exposure is well within

Section 6 of the Married Womens

the 5 per cent as stated above.

Property

Act

are

not

to

be

accepted.
ii. The minimum margin on loans to

d. Policies must be freely assignable.

individuals against equity shares and

e. Policies which had been assigned

debentures is 50 per cent and for

to a minor are not to be accepted.

loans against shares and debentures

f. Whole life policies should not be

held in dematerialised form is 25 per

accepted without the prior approval

cent.

of the Central Office.

iii. The

ceiling

limit

for advances

g. Endowment policies participating in

against shares and debentures to

profits are the best acceptable type

an individual borrower is Rs.10 lakh

of policies.

and if the shares and debentures

II. Procedure

are held in dematerialized form,

the ceiling limit is Rs.30 lakh to an
individual.

a. Scrutinise

directives of RBI/SEBI for restriction of

policy

as

mentioned above.
b. Obtain

Further, changes due to recent

the
the

prescribed

documents.
c. Obtain

the

Last

Premium

certain scrips only in demat form are

Receipt and examine. Also get

on the anvil.

the Bonus Certificates and keep

them with the documents.

Advances against L.I.C Policies

d. Get the policy assigned and

1 Policy: Points to be verified are

witnessed.

a. Date of the Policy, Policies issued

assignments given in the Book

prior to 1938 are not acceptable

unless

accompanied

by

Wording

of

of Instruction.

e. Obtain the notice of assignment

confirmation from the LIC that there

addressed to the LIC signed by

are no prior assignments.

the insured.

f. Ascertain the surrender value

either from the manual supplied
or from the LIC.

ensuring

that

payment

or

premia is made.
l. On receipt of the insurance

g. Forward the policy, the notice of

assignment along with outer

Policy from the LIC keep it

along with the documents,

covering letter as given in the

m. Diarise the dates of repayment

Book of Instruction to L.I.C. for

of the advance and ensure

registration and return.

adjustment promptly.

h. Enter

the

policies

Miscellaneous

in

the

n. After the advance has been fully

Security

repaid reasign the policy to the

Register.

borrower and forward it by

i. Fix the Drawing Power or the

amount

of

after

requesting them to register the

applying the margin prescribed

reassignment in their books and

by the bank. Drawing Power =

return it to the insured.

Surrender
margin

the

loan

Registered Post to the LIC

value
or

minus

loan

the

o. Endorse a copy of the above

amount

letter to the borrower so that he

whichever is lower.

watches for the returning of the

j. Enter the details of the policies

policy. Draw the attention of the

in the Drawing Power register

borrower that he has again to

for cash credit against LIC

file a fresh nomination, as, an

Policies.

assignment

Mark

the

drawing

power arrived at in the credit

vacates

the

nomination made earlier.

ledger.
k. Obtain a standing instruction

Advance against Merchandise (Key

from the borrower authorising

Loan/Key Cash Credit)

the bank to remit the premium

General

directly, so as to ensure prompt

1. Quality

payment of premia.
alternative,

diarise

In the
the

due

dates of the payment of premia

and watch for the receipt of the
latest

premia

receipts

thus

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.

10. Godowns

6. Does not evidence any speculative

and

storage of foodgrains.

7. Duration period for retention of

commodities

is

11. Suitable dunnage such as wooden

not

crafts or polythene sheets provided

exceeded.

to avoid damage from ground

8. Cash bill or invoice repressing

payment

cleaned

disinfected with Malathion before

hoarding.
different

are

of

cost

price

of

moisture.
12. Preventive curative treatments are

Merchandise to be seen.

undertaken for insect and rodent

control

Godowns

13. Record

1. Located in safe localities and within

range

and

individual

number, postal address, municipal

town limits.

number, owners name boundaries

2. Easily and directly accesible.

construction internal dimension and

3. Covered on all sides and top.

insurance rating in the Godown

4. Acceptable for Insurance.

Register.

5. Partition wall, if any, in adjoining

14. Record the key and lock number in

room which is not under the Banks

lock and key built upto the roof.

Godown Key Register.

15. Godown Inspection Chart wherein

6. All doors are locked by padlocks

deposit and withdrawal of stocks is

with the Banks name engraved in

full.
7. The

recorded should be displayed.

16. If merchandise is stored in rented

main

door

being

locked

premises, latest receipt in respect

outside and other doors inside with

of rent paid and every month

Banks lock with books name

thereafter until advance is cleared.

engraved.

17. No lien letter from the owner of the

8. Banks name evidencing pledge,

godown premises.

In case of

screwed prominently on each door

rented godowns format of no lien

on the outside of godown.

letter is provided in Annexure.

9. Banks name board

evidencing

Storage

pledge should also be displayed

1.

Storage to be effected

inside the godown.

a. In the presence of the godown

keeper.
b. In a countable manner

c. Leaving

sufficient

and

uniform

space from the roof.

Register and record it in Demand

Loan Liability Register.

d. Not near the doors giving access to

godown.

5. In case of cash credit, send the

Drawing Power Register to cash

2. Enter the particulars in godown

credit section for taking note of

inspection Register and Godown

drawing power and ensure getting

inspection Chart. Chart to be kept

back the register.

inside the godown.

6. Attach one tag bearing borrowers

Valuation of Stock

name, loan number and godown

1. Verify the invoice and ascertain the

number to the key of the godown.

market price and record the later in

Market Price Register.

7. Retain the keys (both original and

duplicate) in joint custody in the

2. In the case of seasonal crops, at the

beginning of season ascertain from

safe.
8. Arrange for insurance and enter the

Central

Office

the

maximum

particulars

advance

rate

and

minimum

Register.

margins for each product.

in

Insurance

Policy

9. Record particulars in analysis of

3. Ensure there is nothing in invoices

evidencing goods on consignment
basis.

Advances Register.
10. As far as possible, goods under
pledge to the Bank, should be

4. Revaluation of goods upwards is not

permitted.

directly paid for by the bank to the

debit

of

the

account

of

the

Releasing the advance

borrower. In exceptional cases,

1. Obtain documents as prescribed.

payments could be made by way

2. Enter particulars in Stock Register

of cheques issued by Customers

cum-Drawing
based

on

Power

Register

godown

keepers

certificate.
less margin) (value = Market price
or cost, whichever is lower)
the

particulars

Inspection
1. Conduct

3. Arrive at the drawing power (value

4. In

borrower.

case
in

of

inspection

at

irregular

intervals atleast once a month.

2. Count the number of bags and
conduct random check in regard to

loan,

enter

Demand

Loan

weight and quality.

3. Ensure there are no identifying

6.Obtain

borrowers

marks indicating borrowers are not

acknowledgement with date on the

owners.

reverse of the delivery order.

4. In case of loose storage, estimate

7.Discharge on the Delivery Order

cubic capacity by measuring the

should be made by the authorised

height of storage and area of

person only.

godown.

8.Delivery

5. Thrust Testing rod and ensure

against extraneous matter.

order

countersigned

should

by

the

be

goodown

keeper.

6. Ensure precautions laid down for

9.Deliver the goods to the borrower.

godown, storage valuation of stock

10.Receipted

are followed.

receipt from the godown keeper should

7. Initial in the godown Inspection

Register

and

also

delivery

orders,

on

be separately filed and kept safely.

Godown

11.Keys of the godown should not be

Inspection Chart which is kept in

handed over to the borrower even if

the godown.

the loan is fully adjusted.

Release of Merchandise
1.

On remittance of money, record in

the Loan Register and Loan Liability

In case of goods with clearing

Agents

Register in case of loans. In case of

cash credit record the remittance in the

1.

cash credit ledger.

the current approved list.

2.Enter

the

released

in

particulars
Godown

of

goods

Inspection

2.

Clearing Agent should be in

Value

of

goods

stored

should be within the overall limit and

Register.

the individual limit, where a sublimit is

3.Enter particulars of goods released

specified

in Drawing Power Register in case of

merchandise.

cash credit.

3.

4.Prepare Delivery Order authorising

Banks name from the Clearing Agent

Godown Keeper to deliver the goods.

should be obtained before advancing.

5.Delivery order should be issued in

4.

favour of the borrowers.

delivery will be made only to the Bank

for
A

An

the

storage

particular
certificate

undertaking

to

or its order, need be obtained.

in

effect

Insurance

3. Advance of this type should be

1. Insure goods under pledge against

fire, theft, burglary, SRCC etc.

restricted to cases where goods

require processing.

2. Full market value of the goods or

Documentation

original cost whichever is higher

1. Obtain documents as prescribed,

under pledge should be insured.

Stocks and Drawing Power

3. Policies must be in the joint names

of the borrower and the Bank with
Banks clause.

trust for the bank.

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

1. Stocks are held by the borrower in

of

2. Goods should not be removed

without adjustment of advance or
substitution of acceptable security.
3. Banks

name

board

hypothecation
the

goods

and

godown in the insurance policy

should be correct.

indicating

should

be

prominently displayed.
4. Certified

stock

statements

submitted by borrowers weekly.

6. Ensure all warranty clauses are

complied with.

5. Value of the stock therein should

be conformity with the current

7. Expiry of the policy should be

diarised and renewed promptly.

market

rate

or

invoice

price,

whichever is lower.

8. Particulars of Insurance policy should

6. Goods listed in the stock statement

be recorded in the Insurance Policy

should be in regular demand and

Register.

those

permitted

by

Central

Office/Regional Office in sanction,

Advance

against

Merchandise

(Open Cash Credit)

7. Goods should not be obsolete or

General

out of fashion or perishable nature.

1. Limits fixed for Open Cash Credit

should

be

need-based

and

purpose-oriented.
2. In

view

collateral

with strict adherence to submits.

of

the

security

8. Record particulars of goods, their

quantity value in Drawing Power
Register and arrive at Drawing

risk
or

involved,
a

guarantee must be obtained.

sound

Power.

9. Record the Drawing Power in

3. Policies must be in the joint names

ledger and allow operations upto

of the borrower and the Bank with

the Drawing Power.

Banks clause.

10. Study the statement and keep a

4. Description

of

the

goods

and

close watch on the conduct of the

godown in the insurance policy

account.

should be correct.

11. Drawing in the relative accounts

should at all times be covered by
the

borrowing

value

of

the

hypothecated securities.

5. Ensure all warranty clauses are

complied with.
6. Expiry of the policy should be
diarised and renewed promptly.

12. Sale proceeds of hypothecated

7. Insurance

Policy

should

be

stocks are to be routed through the

recorded in the Insurance Policy

account.

Register.

13. Clean loan/Overdraft/facilities are

not concurrently allowed with a

Inspection
1. Inspection

of

stock

under

view to maintain the prescribed

hypothecation should be conducted

margin.

atleast twice in a month at irregular

14. Composition
hypothecated

and

age

of

stocks

the

intervals,

once

are

Manager

and

satisfactory.
stock

again

Deputy
by

the

Manager.

15. Borrowers maintain proper upto

date

by the

records

and

2. Ensure Stock books maintained by

stock

the borrowers are real stock books

statements which tally with the

which are presented to sales tax,

stock register.

Income tax authorities etc and

stock statements presented to the

Insurance:

Bank are the extractions from the

recordings of such books.

1. Insure the goods hypothecation

3. Record the dates of inspection

against fire, theft, burglary and

conducted in the Register of Open

SRCC.

Cash Credit Inspection.

2. Full market value of the goods or

4. Forward Summary of Inspection

original whichever is higher under

done on hypothecation cash credit

hypothecation should be insured.

accounts to the Regional Office

before the 5th of succeeding month.

Jewel Loans

Branch

1. Ensure

allotted in the ledger in the jewel

a. Borrower is respectable and easily

loan card.

identifiable.
b.
c.
d.

8.

loan

number

Keep the first copy of the jewel

Jewels offered as security

loan card inside the bag, tie the

belongs to the borrower.

second copy around the jewel

Fineness and weight of the

loan bag and hand over the

gold offered as security.

third copy to the borrower.

Adequate

margin

for

9.

Keep the jewel loan bags in a

extraneous matters such as

tray serially in the safe room in

wax,

a safe.

string,

fastenings,

precious stones etc.

e.

Jewel

In

all

cases

10.
exceeding

Issue a token card to the

borrower

for

identification,

Rs.1,000/- appraisal is done

showing name of the borrower,

by an approved goldsmith

loan number, amount and date

/appraiser.

of loan.

2. Ornaments should be delivered

by the borrower in person

11.

to

of Jewel Lodged /Withdrawn

the Manager as security.

from

3. Obtain documents.
weight,

the

safe

(Movement

register)

4. Appraiser should certify about

the

Enter particulars in the Register

fineness

12.

and

valuation of the jewel duly

register

must

be

signed by the joint custodians.

13.

counter signed by the Manager.

Loan amount should be in the

multiple

5. Enter all particulars in Jewel

Loan ledger and all entries

Movement

of

Rs.10

with

minimum of Rs.100/-.
14.

Prepare debit cash voucher and

should be authenticated by the

obtain signature of the borrower

joint custodians.

over

6. Place the ornaments in a strong

cloth bag.

15.
Enter

the

printed

stamp

and

disburse the loan amount.

7. Prepare jewel loan cards in

triplicate.

revenue

Closure of the Jewel Loan on

full payment.

a.

Obtain triplicate copy

serial number of the jewel loan

of the jewel loan card from the

card in the ledger and the

borrower.

b.

Obtain

partly

acknowledgement of the borrower in

(An

affidavit

as

per

Annexure 1 must be obtained).

jewell loan ledger.

c. Ensure

repayment

of

entire

d. If the property is a building with

outstanding.
d. Enter

adjoining land, such adjoining land

particulars

in

jewel

is within the ceiling area.

movement register under joint initials.

e. Take out the bag pertaining to the
loan,

e. When an urban vacant land within

verify the contents and then

the ceiling limit of the property is

hand over the jewels to the borrower.

offered as security, the party has

f.

given notice under Section 26 of

Attach the jewel loan

card to the application and retain it

the Urban Land Ceiling Act.

along with the jewel loan application

closed documents.

f. Legal opinion on the title to

16.In case of part payments, ensure

the property from the approved

that ornaments in possession of the

lower certifying ownership as clean

Bank

and satisfactory.

cover

the

balances

outstanding. Borrowers receipt for

each article delivered should be
obtained.

g.

Obtention

of

Valuation Report from the banks

approved valuer.

Credit facilities against Title Deeds

h. No-encumbrances certificate for a

1.Ensure

period of last 13 years till the date

a. Documents of title to the property is

of creation of mortgage.

in original.

i. Obtention of latest Property Tax

paid Receipts.

b. Property offered as security is urban

vacant land and it is not in excess of

j. Obtention of layout plans of the

building/factory.

ceiling limit provided under the Urban

Land Ceiling Act.

Deposit of Title Deeds.

a. Deposit of the deeds (Equitable

c. In case of urban vacant lands, the

land is within the ceiling limit of the

Mortgage) can be done only at

notified centres.

the deposits he/they stated that he

b. Ensure the place is a notified

/they did so with an intent to create a

place

mortgage in favour of the Bank as

c. If yes, proceed further, if no,

refer

para 7.
d.

All

collateral

security

for

advances made and/or to be made by

persons

property

continuing

as

interested
owners

in

the

the bank ofby way of (nature

must

be

of facility) ..or otherwise and for all

present.

other indebtedness and liability of

e. All the terms and conditions on

his/theirs whatsoever and all costs and

which the advance is made must

charges outstanding at any one time

be recited to the owners in the

together with interest thereon.

presence of three employees of the

Bank, one of whom must be

(ii) In case where title

Manager or Deputy Manager.

deeds stand in the name

of

f. Obtain VERBAL acceptance of

the

owners.

Limited

companies,

narration should be as
follows:

g. Record the particulars of the title

Shri/Smt/Sarvashree

deeds in the Title Deeds Deposit

Diretor/Officer of M/s.

Register.

h.

Entries to be verified

Company Ltd called at

and signed by three officers of the

the Bank and deposited

Bank, one of whom must be

the above mentioned title

Manager/Deputy Manager.

deeds. When making the

i.

Mortgagor should not

deposit

he/

they

sign in the Title Deeds Deposit

stated

Register.

he/they did so with an

j.

(i) After entering the

intent

to

create

that
a

title deeds, the following narration

mortgage in favour of the

should be recorded in the Title

Bank

Deeds Deposit Register.

security

as
for

continuing
advances

Shri/Smt/Sarvashre.called at the

made and or to be made

bank

by

and

deposited

the

above

mentioned title deeds. When making

the

Bank

of

M/s.Company

Ltd. By way of ..
(Mention
facilities)
upto

k.

nature
or

an

c. Register

of

Mortgage with Sub-

otherwise
extent

of

the

Registrar.
5. If title deeds stand in the

Rupees

name of partnership firm and

..(Rs.)

if all partners cannot attend

and

other

for depositing of title deeds,

indebtedness and liability

they must authorise/execute

of

Company

by a power of attorney in

whatsoever and all costs

writing one or more of them

and charges outstanding

to attend and deposit title

at any one time together

deeds on their behalf. Such

with interest thereon.

power of attorney should be

for

all

the

Letter of confirmation in Form 379

kept

should

documents. Refer page No.

be

obtained

on

the

subsequent day
3.Registered

along

with

the

8 Para 19.

Memorandum

of

Deposit of Title Deeds:

6. If title deeds stand in the

name of limited companies,
a resolution delegating the

a.

Follow all the procedures

outlined above.

powers

to

one

of

the

Directors or to one of their

b. Obtain Registered Memorandum of

officers to deposit the title

Deposit of Title Deeds in 417 and

deeds must be passed by

register the same with the sub-

the Board of Directors . The

Register of the area.

power
certified

4. Registered Mortgage

attorney
copy

of

and
the

Resolution should be kept

a. Follow

the

procedures

outlined

in para 1.

along with the documents.

7. In the case of non notified
centers:

b. Mortgage deed to be
drafted

of

by

a. All formalities connected with legal

the

examination of the title deeds and

approved lawyer of

valuation should be complied with

the Bank.

ibid 1 (a) to (i)

branch on request, only on

b. Forward the title deeds to Branch

return of this certificate.

situated at the nearest notified place

e. Obtain letter of confirmation

under Registered Post along with

of deposit of title deeds in F

lawyers

original,

379 on the following day to

specimen signature of the owner

the date of deposit of title

who will call at the other Branch to

deeds and forward the same

formally lodge the title deeds, a

to the Branch where the title

covering letter from the branch to the

deeds have been deposited

effect that title deeds have been

under Registered Post.

certificate

scrutinised

by

in

Banks

approved

f. When the depositor calls at

lawyer at their end and that it convey

the Branch at the notified

a clear and absolute marketable title

centre, obtain a letter as per

to the owner thereof and the names

Annexure.

of persons who are required to

g. Follow procedure in para 2

deposit the title deeds as per legal

(Excluding k)

opinion . The Manager should also

h.

Ensure F 379 is received

confirm that the requirements, if any

and retain the same along

stipulated by the lawyer have been

with the documents, along

fully complied with

with

the

relative

showing
c. Request the owners of the
property to be present at the

the

postal

acknowledgement stamp.
8.

notified centre along with

introductory letter issued by

cover

Obtain loan documents as

applicable for the advance.

9.

the branch.

Insure

the

building

with

fittings and fixtures against

d. Obtain, a certificate after the

fire and SRCC in the joint

deposit of the deeds at the

names of the owner and the

notified centre is over from

Bank,

the Branch certifying that the

clause and enter the same

title

in Insurance Policy Register.

deeds

have

been

with

the

Banks

deposited. Title deeds can

be returned to the lending

10.

Ensure prompt renewal of

Policy.

17.
11.

Inspect

the

In case of further advance

property

after deposit of title deeds,

periodically and retain the

inspection report in the title.

against the same security:

Ensure
a. Documents have been obtained for

12.

In

case

of

loans,

enter

particulars in the Demand

Loan Register.

the enhanced portion.

b. Owners of the property/authorised
persons to deposit the title deeds
are present.

13.

Post the amount in Loan

Liability Register.

18.

Record

the

narration

as

follows except in case of

14.

Release the loan amount

Limited Companies.

according to the progress of

Shricalled

the construction, calling up

bank and stated that the title deeds

the prescribed margin at

of

each

..(full description of

stage,

based

on

Architects certificate.

the

property

at

situated

the
at

property and its address) already

deposited by him on..with

15.

Ensure progress made in

intent by him on..with

construction is according to

intent to create a mortgage in

schedule and deviation, if

favour of the Banks as security for

any, is for valid reasons.

the advance made and /or to be

made

16.

Ensure

by

the

Bank

to

Shri..may be continued to
be held as continuing collateral

a. Terms and conditions of

the

loan,

security for all advances made

particularly

and/or to be made by the bank to

restrictive covenants, are

Shri.and for all the other

being duly implemented.

indebtedness and liabilities of his

b. There is no interlocking
of funds.

whatsoever

and

all

costs and

charges outstanding at any one

time together with interest thereon.

In case of Limited companies,

Repayment

narration should be as under

20.

Recover the instalments and

interest as and when due to

Shri..Director/Officer

the debit of Current Account,

of M/s.Company Ltd

on the strength of letter of

called at the Bank and stated that

authority obtained from the

the title deeds of the property

borrower.

situated

at

21.

Reduce the liability in liability

ledger

..(full

recovered.

description

of

the

property and its address) already

deposited

with

the

Bank

22.

on

as

and

when

Period on loan may be

computed from the date of

M/s..with intent to

signing

create a mortgage I favour of the

Agreement or the date of

Bank as security of the advances

first disbursement of Term

made and/or to be made by the

Loan, if it is later

Bank

Term

Loan

to

M/S

Release

to

adjustment of the advance

the

extent

of

of

documents:

On

Rs.
(Rupees

23.

Return the title deeds to the

.) may be continued to be

depositor

held

acknowledgement

as

continuing

collateral

against
in

Title

security for the further advances

Deeds Deposit Register. If

made and/or to be made

the depositor is deceased,

to

M/sand for

the

title

deeds

all costs and charges to an extent

returned to all the legal heirs

not exceeding Rs..

or to any of them against the

(Total of original and additional

written consent of others.

limit) outstanding at any one time

Legal

together with interest thereon.

ascertained from the legal

heir

can

maybe

be

heirship certificate issued by

19.

Obtain confirmation letter in

F 379A

the Revenue authorities or

an affidavit given by two

independent

respectable

Memorandum of Deposit of Title

persons. The format of the

Deeds

is

not

acceptable

affidavit used in settlement

However, if Cantonment Area

of claims can be adopted.

itself a notified place (like Indore

Cantonment) simple deposit of

24.

In

case

Mortgage

of

Registered

and

Registered

Title Deeds may be accepted.

Memorandum of deposit of

27.Limitation

Title Deeds release has to

enforcement of mortgage is 12

be

years.

registered

with

Sub-

Registrar.

In

case

mortgage
extended

25.

period

equitable

limitation
by

Branches in the State of

narration

Gujarat and Maharashtra

confirmation
Limitation

of

any

and

will

get

supplemental
by

letter

period

for

obtaining
in

of

F379-A
registered

As simple deposit of title deeds

mortgage will also get extended by

attracts stamp duty, branches in

obtaining the security confirmation

these States are advised to

letter.

have Registered Memorandum

of/Deposit to Title Deeds or

Advances

Registered Mortgage as per

Receipts

sanction

or

procedure

as
laid

against

Ware

house

per

the

1. Advance should be made only

down

by

against receipts issued by Central

Regional Office.

or State Warehousing Corporation.

2. Obtain documents as prescribed.

26.

Properties

situated

at

3. Enter

Cantonment Area

particulars

ledger.

in

the

loans

Particulars must contain

the details of security, its distinctive

1. In case of properties situated at
Cantonment

area,

if

the

Cantonment area is not notified

place, only registered mortgage

number, date etc.

4.

Verify

of

endorsee

/Registered

of

the

5. Verify the endorsement of the

original

deeds

signature

warehouseman.

can be created. Simple deposit

the

the

depositor
(Advance

or

the

first

should

be

sanctioned only to the original

through the godown keeper for

depositor or the first endorsee)

effecting partial releases.

6. Forward
(F374)

the
in

notice

of

Duplicate

warehouseman.

pledge
to

the

Obtain duplicate

copy duly acknowledged by the

warehouseman

and

retain

the

same along with the documents.

7.

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.

Arrive at the amount of finance

after allowing the margin as per
requirements.

This condition will apply only in the

case of part payment and release.
16. A letter should be obtained from the

8. Post the amount in liability ledger

and loan ledger.

borrower authorising the Bank to

pay future rent to the debit of the

9. Credit the partys account with the

loan amount to the debit of loan
account.

borrower account.
17. A

letter

from

Warehousing

Corporation should be obtained

10. In case the loan is adjusted in full,

indicating the amount of insurance

return to the borrower the receipt

cover earmarked for the goods

duly discharged.

pledged to the Bank Letter must

11. Obtain acknowledgement of the

warehouse

receipt

from

the

borrower and hold it in the file.

address

warehouseman

letter

authorising

to
the

release of specified quantity.

13. When

partial

authorised,

releases

the

incorporated in

releases
the

event of any claim arising and

materialising on the goods held for

12. In case of part payments and

releases,

contain an undertaking that in the

account of the Bank, the amount

will be paid to the Bank subject to
any legitimate charges.
Term Loan (Machinery)

are
are

Warehouse

1. General
a. Ensure borrower has a
licence

to

Receipts, indicating the balance

machinery

quantity

imported.

still

held

under

the

import

the

if

be

to

warehouse Receipt forward the

b. In other cases suppliers

letter and the warehouse Receipt

are established concerns

of good repute, it is

advisable to obtain a

i.e.

status

price.

report

on

the

manufacturers

and

e. Depreciated

suppliers of machinery.
c. Payment

value

the

machinery
showing basis

deferred basis.

of

and

Building

is

calculating

depreciation

ready for installation of

and

machinery.

thereof.

Cost of Machinery as per

or inflated.

rate

f. Condition

proforma invoice is not over valued

2.

of

machinery is not on a
d. Land

e.

for

purchase

of

machinery
4. Enter the loan amount in Loan

Obtain

documents

as

prescribed.

Liability

Register

maintained

partywise.
5. Release the amount to the

3. Record

full

details

of

the

credit

of

borrowers

current

Machinery in Demand Loan

account wherein borrower has

Register.

provided the requisite margin.

Under the authority of borrower,
a. Date

of

purchase

issue bankers cheque/demand

draft directly to the supplier of

b. Details

of

machinery

as

per

machinery with

invoice;

identification

retain with documents.

number

of

machine.
c. Name
supplier

receipt

requisite

margin

and
is

provided by the borrower.

of
with

address.
d. Invoice

6. Ensure

obtain

Proforma

7. Specific
purchased

machinery
from

to

be

specific

suppliers from whom proforma

/Bill

invoice has been obtained and

Number

sent to sanctioning authority

showing costs

and mentioned in the project

Report.

8. Paint Banks name prominently

borrower,

the

on all machines hypothecated

instalments and interest on due

to the Bank.

dates from the current account.

9. A

list

of

hypothecated

17. On recovery of the instalment,

machineries to be hung in the

the outstanding in Loan Ledger

main hall of the factory. Where

as well as in Liability Register to

a waiver of this condition is

be reduced.

needed,

specific

written

Inspection

approval to be obtained from

18. Inspect the machinery every

the sanctioning authority.

month and submit report.

Insurance

Conduct of the advance

10. Insure machinery against fire,

theft,

burglary,

breakdown,

SRCC,

erection

(Storage

cum

19

etc

erection

Ensure

a.

Anticipated capacity has been

attained.

b.

insurance)

Anticipated sales has been

reached.

11. Policy to be in joint names of

12.

recover

c.

Except

where

the

Banks

the borrower and Bank, with

instalments and interest are being

Banks clause.

paid regularly, Banks consent in

Ensure prompt renewal of

policy.

the matter of distribution of net

profit available after deduction of

13. Enter particulars in Insurance

tax, is obtained.

Policy Register.
Repayment

Storage cum- Erection Insurance

14. Recover

as

per

repayment

schedule
15.

Period

In case where advance has been

granted for purchase and installation of

of

loan

may

be

machineries this cover should be

computed from the date of

taken.

signing Term Loan agreement

arrival of first consignment at site and

or the date of first disbursement

until commissioning the machines,

of Term Loan, whichever is

equipments and materials, against the

later.

risks of fire, explosion, lightning etc

16. On

the

authority

basis

of

obtained

letter
from

The cover from the time of

of

besides damage due to defects in

the

material, casting and workmanship,

accidental damage during the course

permitted

of handling, assembly and erection at

authorities.

site like collusion, collapse, impact

faulty manipulation dropping or failing,
breaking

of

slings,

electrical

and

3.

by

exchange

control

NRE/FCNR deposit to Non

Residents.
4.

Prepare the contract in F258A

mechanical breakdown during testing

original to be stamped as per rules

of new plant and machinery.

(See Annexure 31)

Defered Payment Guarantee:

Forward Contract

(Imports)

A.

1.

Purchase

Obtain

request

exporter

Forward

an

application

to

letter

from

the

Reserve Bank of India on the basis

customer

with

the

of

following documents:

deferred

accompanied

by

import

licence,

the

following

documents:
1. Documentary proof of export in any

a.Exchange

Control

copy

of

the

one of the following from.

Deferred Payment Import Licence.

a. Irrevocable letter of credit

b. Statement in duplicate in the

b. Firm Order

prescribed form as per Exchange

c. Cable/telex

message

through

Control Manual.

Overseas Communication Centre.

2.

Prepare

the

c. A certified copy of the contract

contract in F 258. The original to be

entered into between importer and

stamped

the foreign supplier.

as

per

rules.

(See

Annexure 30)
B. Sales
Obtain request letter from the

d. An Application on an appropriate
exchange control Form (Form A-1)

importer-customer with the following

for

documents:

payment if any has to be effected.

1.

of

the

advance

Exchange control copy of import

licence or declaration as per import

policy.
2.

remittance

Sales contract or letter of credit

or any other document in lieu of it as

e.

A draft copy of the Bank

guarantee proposed to be issued by

the Bank.

2.

Obtain

R.B.I.

approval

and

request them to make necessary

separate code number for the

approved arrangement. This code

funds arrangements.
11.

number should be quoted in all

correspondence with RBI on this

instalment.
12.

matter.
3.

In the case import of machinery

confidential

precautions that are required for

opinions

on

the
of

The bank should be

that

the

reports

are

absolutely satisfactory.
Obtain

documents

as

Remit the advance payments, if

Enter into forward sale contract,
Collect

a. Fixation of Banks name plate

on the machinery.
c. Periodical appraisal, economic
technical

feasibility,

commercial aspects, financial

Packing credit
1. Ensure

per

a. Borrower is a bonafide exporter

permanent

and has Exporter Code No. or

circular FX 51/98-99 dt. 13.10.98 &

IECN and is registered with

any other guidelines issued from

respective

time to time.

Council.

FEDAI

10.

all

aspects, managerial aspects.

on a roll over basis.

9.

exercise

term loans.

viability,

any.

8.

should

b. Periodical inspection.

prescribed.

7.

While the guarantee is in force,

branches

satisfied

6.

13.

against DPG or COD basis, obtain

machinery.

5.

Include the remittance in R

Return.

manufacturer/Supplier

4.

On the due date, remit the

commission

Rules

After

and

receipt

as

of

Export

Promotion

import

b. Production of Letter of Credit or

documents diarise the due date of

Confirmed Order or exchange

installment.

of cables or telex message.

Advise Foreign Exchange Dept;

C. Letter of Credit in force in all

Central Office one week in advance

respects.

regarding the installment due and

(i) Not revoked

remittance.

(ii)

Remind the party a fortnight in

advance prior to the due date and

Date

of

shipment

negotiation not expired.

(iii) Genuine

and

d) In the absence of letter of credit,

5. Obtain original of the Letter of

obtention of report on the buyer

Credit or firm order and retain it

or ECGC Policy on the buyer.

along with documents

e) Country to which export is

6. Packing

credit

should

be

made, does not face any foreign

granted preferably by way of

exchange problems.

loan, or byway of cash credit as

f) Goods

to

be

shipped

are

per sanction terms.

usually traded by the exporter.

g) Terms of payment.
h) Export

of

goods

7. In case of Loans
a. Obtain Form 251 B for the entire

for

which

preshipment finance is sought,

limit.
b. Obtain Form

is not barred.

stamped) every time fresh loan is

i) Exporter is in possession of
necessary

251 (need not be

export

quota

wherever necessary.

sanctioned.
c. A running simple loan account need
be maintained.

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

d. Whenever loans are granted, loan

run contrary into the rules of

amounts be debited to the running

FEDAI and UCPDC and rules

account.

and

regulations

in

export

trade/export credit regulations.

k) Obtention

of

L.C./Confirmed

e.

Except

the

loan

amount

and

interest, there should be no other

debit.

Mail Order within a reasonable

f. There should be a separate credit or

time wherever telex message

set of credits in respect of each debit

have been accepted.

in the account.

2.Arrive at drawing power applying

stipulated rate of margin to the value of

g. Contra dates of the debits and

credits should be marked.

the exports to be made under LC.

h. Interest debited should be adjusted

While arriving at the drawing power,

by transfer from current or any other

care should be taken to restrict the

account.

drawing

power,

to

the

domestic

cost/FOB value whichever is less.

8. In case of Cash Credits

3.Obtain documents as prescribed.

a. Obtain documents as prescribed.

4.Record in the Letter of Credit,

evidencing granting of packing credit.

b. A separate cash credit account to be

opened for each borrower.

c. No cheque book for drawings on this

account be allowed.

the Whole Turnover Packing Credit

d. Operations in this account are only

by way of vouchers.
e.

Maintain
recording

subsidiary

details

in

duplicate

to

register

credit advice for the premium at

orders,

prevailing

of

columns for date, particulars of the

number

Guarantee

controlling office along with the

allocating a folio for each order with

order

14.Submit monthly declaration under

L.C.

Number,

rate

debited

to

customers account.
15.When bills are tendered, follow the
procedure

laid

down

for

debit/credit balance, number of

negotiation/purchase of bills and

days, products and interest.

adjust packing credit.

f. In each folio admissible amount to

be debited.

Note

g. Total of such debits to be debited to

1.Advise

party

to

book

forward

packing credit, cash credit account

contract while granting packing

and

credit.

credited

to

customers

Current/Cash Credit Account.

2.If the exporter is not able to export

9. Disbursements to be linked to actual

against the original contract due to

purchases of products and/or raw

circumstances beyond his control

material meant for export and to

branch can adjust the packing

meet

credit

such

other

expenses

concerning the export order.

adjustment

of

any

by

negotiating

export bills relating to another

10.Ensure against the misuse of funds

of

advance

other

expenses.
11.Obtain Stock statements and paid
invoices periodically.

contract

to

another

country

provided the same goods financed

by the Bank by packing credit
advance are exported within a
reasonable

time

under

the

12. Arrange for insurance of stock upto

substituted contract. The proceeds

the time they are placed on board.

of the export are to be received in

This applies even in FOB & CF

an approved manner within the

basis) and display of the Banks

prescribed period.

hypothecation/pledge board.

3.Incase of Packing Credit granted to

13.Inspect the stock periodically.

exporters who do not have letters

of credit or confirmed order in their

own name but are routing their

exports

through

Export

House/Agencies.

Advance against Duty Draw Back

1.Ensure

a. Obtain suitable letter from the

a. Declaration by the borrower on

Export House/Agency stating (i)

the relative shipping bill in respect

that it has entrusted a part of export

of the claim of duty draw back.

order to the supplier customer for

fulfilment

and

that

no

bearing

would

be

customs authorities stating that the

availed by them against the same

amount of duty of draw back

and further giving details of exports

provisionally determined and on

orders.

sanction, the same will be paid to

preshipment

(ii)

b. Obtention of a copy of shipping bill

credit

the

certificate

of

the

b. Export House/Agency should open

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

Inland L.C. favour of the supplier

c. Borrower is entitled to duty draw

customer or the latter should draw

back by referring to (i) notifications

bills on the Export House/Agency.

issued by Central Government (ii)

In case such bills drawn on the

Export promotion council.

Export

House/Agency

not

2.Verify that the actual quality declared

documents

in the shipping bill has been

certificate

shipped, by calling for shipping bill

should be obtained every quarter

from the borrower with the customs

from

endorsement and a copy of bill

accompanied
evidencing
the

by

export,
Export

are

House/Agency

stating the goods have in fact been

exported

and

indicating

the

Lading.
3.Obtain documents

particulars of the bills such as date,

4.Enter full particulars in the Loan

amount and the name of the Bank

Ledger and post the amount in

through which the bills have been

party-wise liability ledger.

negotiated.

5.As refinance has to be availed,

c. Obtain Undertaking letter from the

forward the statement to main

supplier-customer for remitting to

branch at the metropolitan centre

Bank the advance payment if any,

as per instructions (at present Fort

received

Bombay Branch).

from

the

Export

House/Agency against the export

order.

6.Obtain Export Finance Guarantee,

Export

Production

Finance

Guarantee in the case of post

shipment/preshipment respectively.
7.Collect

commission

at

the

stipulated rate on the amount of

4.Obtention

of

documents

and

recording of particulars in the loan

ledger

and

partywise

liability

register.

each bill from the date of granting

5.Registration of the power of attorney

the loan to the date of obtaining

executed by the exporter in favour

refinance

of the Bank to receive incentive

from

R.B.I.

with

minimum of Rs.10/-.

amount,

8. Collect actual postage incurred in

forwarding

bills/cheques

for

payment.

with

the

disbursing

authorities.
6.Advance is covered under Export
Finance Guarantee of ECGC.

9.Eventhough the advances against

duty draw back are granted only

Letter of Credit
The importer-customer should submit

against an assessment of the

the

following

provisional eligible amount, made

opening L/C

documents

by the Customs authorities, if may

1.Application in form 104X(Rev).

so happen in some cases that the

2.Exchange

control

copy of

for

valid

exporter is eligible only for a

import licence or declaration as

reduced amount.

stipulated in Import-Export Policy or

In such cases,

maximum rate of Interest stipulated

for Cash Credit account should be
charged for the excess amount.
Advance against Export Incentive
Ensure
export incentive and percentage.
2.Application is submitted to JCCI &
E / Other authorities through the
branch.

in lieu of it, as permitted by the

Exchange Control authorities.
cover

note

from

insurance

company.
Advance against Book Debts
1.Advance against Book Debts can be
granted by way of Cash Credit only.

3.Application is supported by export

viz.,

Original

Bank

certificate, Attested Invoice, copy of

shipping bill authenticated by the
customs.

3.Sale contract or any other document

4.In the case of FOB C & F contracts

1.Commodity exported is entitled to

documents

Hand Book of Procedure.

2.Ensure
a. A proper accounting system exists in
the borrowers organisation.
b. Debtors are widespread.

c.

Existence

of

satisfactory

debt

Drawing Power Register and arrive

collection mechanism.

at Drawing Power and advise Cash

d. Book Debt represent genuine trade

transactions by verifying original

5.Ensure receipt of Audited Statement

orders, credit invoices, delivery

of debts outstanding once in 3

challans

months.

and

other

books

of

account.
e.

Credit Section.

6.Receipted invoices to be verified.

Periodical

reconciliation

of the

7.Ensure that no advance is made

statements of receivable submitted

against book debts outstanding

by borrowers with their books of

beyond 90 days, unless specially

account.

permitted by Central Office.

f. Periodical statements of individual

8.Ensure that all collection of book

ledger accounts are submitted.

debts are promptly lodged with the

g. No one particular party is the

recipient of disproportionate large

Bank.
9.No bad debts are written off without

credit sales from the borrower.

h.

Verification

of

goods

the prior approval of the Bank.

returned

10.No discount or rebate is allowed to

register to check any increase in

the buyers in excess of percentage

the volume of goods returned or

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

the frequency thereof.

value declared to the bank.

i. Marked variations in the level of

trade

debtors

11.Debts due from sister concerns,

satisfactorily

associate

accounted for

members/groups

j. Satisfactory reasons for any increase

k.

excluded

in period for which credit sales are

taken

permitted.

Power.

Against

firms,

interlocking

of

funds,

for

from

family

are
the

arriving

to

be

outstanding
at

Drawing

Advance against Tea Delivery Order

manipulation of receivables among

1.Ensure

the associate concerns.

i. Tea Delivery Order stands in the

3.Obtain document as prescribed.

name of the pledgor.

4.Based on the statement of the party

and after conducting a check with
the

books

borrower,

of

account

of

the

enter

details

in

the

ii. Tea Delivery order is not old,

iv.

Prompt
fallen due.

date

has

2.Obtain the Tea Delivery Order duly

endorsed in favour of the bank.

Advance against Pucca Delivery

Order

3.Retain adequate margin.

1.Ensure

4.Forward the lien notice to the

a .Credit worthiness of jute mill issuing

warehouseman

and

the

auctioneer/broker by Regd. Post

Ack. Due.

the pucca delivery order.

b. No advance has been already
availed by the jute mill in respect of

5.TDO/Invoices should contain.

those goods covered under the

a. Grade of Tea

pucca delivery order issued.

b. Gross Weight

c. The date of the Pucca delivery order

c. Tare Weight

is not unduly old.

d. Net Weight

d. Payment for the goods covered

e. Garden Name
f.

No.

of

chests

under Pucca Delivery Order is fully

in

Break/Chest

made by the pledgor. The relative

Number.

invoice has to be verified in order to

g. Invoice prefix

ensure that the goods covered

h. Invoice Number

under the Pucca Delivery Order

i. Number of chest in invoice

and that of invoice are one and the

j. Year of manufacture

same.

6.Keep the acknowledgement card

e. Pucca Delivery Order is properly

received from the warehouseman

endorsed by the pledgor in the

and broker along with documents.

name of the bank.

7.Enter particulars in loan ledger and

liabilities ledger.
8.When the advance is repaid reendorse the Tea Delivery order to
the Pledgor or his order and

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

intimate the warehouseman and

Pacca

Delivery

Order

to

be

the broker/auctioneer.

exported, the Bank has to ensure

*Prompt date is the date within which

that the shipping instructions are

the bidder, who has purchased tea

passed on to the jute mill always

in the auction has to make payment

through it by the pledger and the

to the auctioneer/broker.

delivery orders replaced by or

Warehouse Receipt of approved

shipping

agents

with

an

a. Bills represent a genuine trade

undertaking to forward the relative

transaction

Bill of Lading direct to us. If the

accommodation.

shipping instructions have already

been issued by the pledgor before

and

is

not

an

b. Bill of Exchange is properly drawn in

all respects.

pledge, then there is no harm for

the bank to accept such Pucca

c. Usance Bills should not exceed a

Delivery Order but branch has to

period as stipulated in sanction

ensure that Pucca Delivery Order is

letter.

replaced by Mates Receipt within

reasonable time.

d. In

case

of

usance,

bills

are

adequately stamped.

h. Obtain documents as prescribed.

e. Not an old bill.

j. Arrive at amount of finance after

f. Comparison of Railway Receipt or

allowing the requisite margin.

Lorry Receipt regarding description

j. Post the Loan amount in the Loan

Ledger and Liability Ledger and
credit the partys account with the
amount.

particulars.
g. Goods are consigned to Banks
name in case of lorry Receipts and

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

of the goods, weight and other

the

jute

Mills:

any

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.

postponement of the date of taking

k. Commodity covered by the bill is the

delivery should also be advised to

one in which the borrower is known

jute Mills.

to trade in.

Demand/Usance

Bills

Purchased/Discounted (Inland)
1.

m. Satisfactory

On receipt of Bills, affix

special

crossing

sheets submitted.
2. Ensure

stamp

on

j. None of the instruments is forged.

all

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.

(Inland) and

p. Bills are not under open delivery of

goods at destination
q. Bills

are

not

7. Debit Demand Bills Purchased

Discounte/Exchange
Account

drawn

on

Associate firms.

credit proceeds less

in

to

case

Demand

care of a hotel, lodging house,

purchase and debit Usance Billsterms.

8.

postmaster or post box.

Enquire fate, if bill not paid

within 7 days.

s. The lines of business of the drawer

and drawee are not different.

9.

On receipt of realisation advice,

credit Demand Bills Purchased /

t. The borrower does not discount bill

for an amount when bill earlier
discounted falls due similar to the
amount.

Usance

Bills

Discounted

In the case of usance Bills

Verify

whether

u. Bills are not drawn in respect of

(Documents

commodities which are normally

Acceptance)

consigned from centres at which

(Documents

bills have been drawn.

Payment) terms.

v. Freight has been paid.

b.

w. Satisfactory credit report on drawee

3.Enter the Bill, in Bills Referred

Diarise
of

4. On obtaining sanction from the

Discount

DP
against

90

days

or

as

and

watch

for

acceptance

from

the

collecting branch.
d.

Purchase
Bills

or

intimation acknowledgement

Register.

Bills

against

specified in sanction letter.

c.

Manager, enter particulars of bill in

DA

Period of usance should not

exceed

of the bill of exchange exceeding

Rs.10,000/-.

and

reverse the entry in liability.

a.

Register/Usance

Bills

discounted in case of bills on usance

r. Bills are not drawn on a person

Demand

Current

Notify acceptance and due

date to the drawer.

e.

Due date is determined by

Register.

allowing three days of grace,

5. Post the amount in Bills Liability

unless

Register.

otherwise, after the day on

6.

Collect

Exchange/Discount

PTTR as per rate in force.

and

the

bill

provides

which it is expressed to be
payable.

f.

If due date falls on a public

Credit/Current

holiday, bill should be paid

margin

on the preceding business

debited separately.

day.

drawn

be

watched

with

14. When

the

part

received

11. While dispatching bills, indicate

remittance

payments
on

purchased/discounted,

schedule

are
bills
such

amounts should be credited to

regarding

the Bills Purchased Account.

a. Whether non payment advice

be

sent

by

15. Details of the part payments

letter

received should be recorded in

ortelegram.
retained

be

purchasing / discounting bill.

suspicion.

b. Whether

should

on the margin amount while

those upon which they are

should

amount

and

13. No exchange need be collected

10. Retiring at places other than

in

Account

the

the Bills Register by entering

bill

pending

may

be

the date of receipt of the part

arrival

of

payment, the foreign currency

goods.

amount

c. Whether or not in the event of

(in case of foreign

bills) and the rupee equivalent.

non payments after the arrival

16. Similar posting should be made

of goods should be cleared,

in the Liability Register also.

stored or insured.

Date also should be marked in

d. Whether the bills should be

the contra column. To indicate

noted or protested for non-

that it is only part payment, the

acceptance and / or non-re-

date should be suffixed with

payment; and

Word P. When the bill is fully

e. Whether the bills should be

settled, the last instalment dates

returned after a stated period, if

should be suffixed with the

unpaid.

world F.

12. If any margin is retained, the

17. Margin retained, if any, can be

amount should be debited to the

released in proportion to the

Current/Cash

part payment received.

Credit

account

separately. The entire proceeds

Bills

of bills purchase amount should

(Foreign)

be

credited

to

the

Cash

Purchased/Discounted

Refer also the booklet on Bills Under

c. Tenor, endorsement and

Letter of Credit

drawee as per terms of

Ensure the Exporter-Customer is

Letter of Credit.

having/Import
Number

Exporter

and

respective

is

Code

registered

Export

with

Promotion

Council.

d. Mode

Payable

or

endorsed in favour of the

negotiating Bank.
e. Bears reference Number

1. Verify whether bills presented by

the party are under Letter of Credit.

as

instructed

by

the

issuing bank.

If so, ensure that documents are in

strike conformity with the terms of

6.Ensure invoice.

Letter of Credit.
2. Ensure Letter of Credit

a. Mode out in the name

a. If revocable no advice of revocation

of the credit opener

is received from the opening Bank.

unless

b. is not restricted.

otherwise.

c. is valid and current

d. does

not

required

b.

contain

offending

clauses

Commercial invoice
and

/or

consular

invoice as required.
c. Description of goods

3. Remember

Doctrine of strict

and

merchandise

compliance while scrutinising bills

correspond

under L.C.

description

4. Ensure

all

documents

are

with
in

the

credit.

submitted as per terms of Letter of

d. Unit price and basis

Credit with required number of

of calculating it (CIF,

copies.

FOB

5. Ensure Bill of Exchange.

and signature verified.
is

credit amount

within

as

per

terms of Credit.

a. Is drawn by beneficiary
b. Amount

etc)

e. Quantity

of

goods

checked from invoice.

the

f. Number of packages
shipped and marks
thereof given in the
invoices agree with

those

in

Bills

of

Lading.

terms of Letter of credit.

g. Name of port or place

of shipment and of
destination stated.
h. No

d. Amount and currency as per

e. In duplicate endorsed in blank
or it favour of negotiating bank.
f. Description

adjustment

account

goods

not

of

conflicting in terms with that in

or

other documents.

adjustments on prior
shipments

of

are

g. Covers the shipment during the

entire voyage.

permissible.
i. There should not be
any excess drawing
on shipment.

8. Ensure Bill of lading conforms to

stipulations in UCP 500
a. Issue by a steamship

j. If a Credit allows part

shipment,

the

amount drawn should

company

its

accredited agents.
b. Dated not later than

be pro rata to the

the

quantity

actually

shipment in the credit.

unless

c. Not a stale bill of

despatched

the credit stipulates

otherwise,

or

unit

last

date

of

lading.
d. Full set of clean on

price is indicated in

board Bill of Lading

the L.C. and drawings

e. Port of shipment and

confirm there.

port of destination as

7. Ensure Marine Insurance Policy.

given in the credit.

f. If

a. Policy or certificate as required

in Letter of Credit.
b. Document
insurance

or

issued

there

transhipment

is
at

intermediary
by

company

whether

or

Credit permits such

per terms of Letter Credit.

c. Does not bear a data later than
the date of Bill of Lading.

port,

an

underwriter covering risks as

Letter

an
of

transshipment.
g. Description of goods
in the Bill of Lading
does not conflict with

the

description

as

given in the credit.

and authorised by Manager

h. Charter, Party, Short

to Purchase, refer para 12.

form Blank back Bills

b. If documents contain rectifiable

of

discrepancies, instruct the party to

Lading

are

not

acceptable.

rectify discrepancies and to resubmit

i. If credit stipulates CIF

for

negotiation.

After

or C&F basis, Freight

discrepancies

paid bill of lading.

procedure as per para 12.

j. Does

not

evidence

ensuring

rectified,

c. If

the

follow
documents

On Deck shipments

contain

unless so permitted

superficial

by

discrepancies,

the

Letter

of

Credit.
k. Not

minor

negotiate

made

favour

9.

11. a. If documents are in order

out

of

in
the

or

the

bill

under reserve against

indemnity

of

the

consignee (Importer)

beneficiary.

Obtain

unless permitted by

indemnity

letter of credit.

283 from the exporter

in

Form

Verify documents such as

and proceed as per

Certificate of Orign, Weight,

para.12 in the case of

Quality, Analysis

parties who are not

etc as

required by Credit.
10. Enter

the

Referred

bills

our
in

Register

record discrepancies.

customers,

Bills

indemnity should be

and

countersigned

If

their bankers.

any, and refer to Manager,

Refer to Advances Section
and ascertain whether any

by

d. If documents contain
major discrepancies.
i. Call

for

Packing Credit Advance is

instructions

outstanding

from the credit

goods
exported.

that

against
is

the
being

opening bank.
ii. Send the bit for
collection and

pay only after

b. Inspection certificates

realisation.
12. a.

Enter

all

details

are genuine.
in

c. Bills are drawn for

Foreign Documentary Bills

amounts in relation to

Purchased/Discounted

the

Register.

goods.

b.Post the amount in Liability Register.

4.

value

of

the

Obtain irrevocable power

c. Collect Exchange or Discount as per

of attorney and register

rate laid down

with concerned department

d.If bills are negotiated under reserve,

of the Government or the

record the particulars in a Register.

purchaser concerned.

13. Prepare remittance schedule, sort

5.

the documents as called for in

Letter of Credit.

document

as

prescribed.
6.

14. Despatch original set of documents

Obtain endorsement

of

assignment for each bill as

by air mail and duplicate set by

next airmail.

Obtain

follows:
We

15. In case of bills negotiated under

for valuable consideration received

reserve mention discrepancies in

from Indian Overseas Bank,

the remittance schedule.

hereby assign and transfer all our

16. Scrutiny of GR/PP forms should be

rights, title and interest in this bill

done as per the direction given in

and the moneys thereby secured to

exchange control manual.

the said Indian Overseas Bank and

its successors and assigns and

Advance against Supply Bills

declare that the receipts granted by

1. Facility against supply bills can

the said Bank or it successors or

be sanctioned by way of Cash

assignee shall be good and valid

Credit/overdraft and discounting.

discharge of all moneys secured

2.

Verify the terms of contract

of terms of payment.

3.

Ensure

under this Bill.

7.

Obtain

letter

from

the

contractor/Supplier,

a. Inspection certificates

authorising

the

are attached to the

responsible

bills.

payment on the bill, to

for

authority
making

effect
8.

payment

to

the

16. If

is

not

Bank.

forthcoming, delete the bill

In case of cash credit,

and reduce drawing power.

record in Drawing Power

In

Register

recover the amount from

(Supply/

Collection Bills Register)

maintained partywise and
9.

payment

case

of

purchase,

the party.
17. If part payment is received

advance.

towards any bill (supply

In case of purchase, debit

bill) before the due date,

Demand

Purchase

entire bill amount should

and credit current account

be debited and drawing

and post the amount in

power

Demand

chance of recovering the

Bills

Bills

Liability

Purchase
Register

maintained partywise.
10. Present

the

Bills

reduced

unless

balance amount is bright

18. Cheques

on

received

in

payment of bills should be

drawees for payment.

scrutinized carefully and

11. When bills are returned for

ensure that they represent

any

endorsement

or

genuine payments of bills.

amendment ensure their

19. In case of purchase, credit

resubmission through the

the proceeds to DBP and

Bank.

reverse

12. Bills

entered

in

the

liability

outstanding.

Supply / Collection Bills

Register

need

entered

in

not

be

ODB/OUB

Register.
13. Allot

against

Hire

purchase

Agreement
1. Advance Against Hire Purchase

Separate

running

number for supply Bills.

14. Passing

Advance

of

contra

Agreement can be sanctioned by

way of cash credit only.

and

2. Outstanding at any time should not

balancing to be included in

exceed

ODB.

instalments due at the time of the

15. Watch on the due date and

ensure payment of bill.

the

total

amount

of

owner from the hirer less margin

stipulated.

3. Ensure that the interest of the

credited

to

Current

Account

financiers (borrowers) in respect of

Operations by cheque are not

vehicle covered by hire purchase

permitted

agreement are registered with the

account.

Registering Authority.

11.

Enter

on

this

following

cash

credit

particulars

in

4. Verify Registration certificate and

subsidiary register to ensure that

original invoices in respect of new

the cash credit balance agrees for

vehicles

each vehicle.

covered

under

Hire

Purchase Agreement.

1. Name of the financier (borrower)

5. Ensure vehicles are road worthy

2. Name and address of the hirer

6. Ensure road tax has been paid

3. Amount of Pronote

7. Obtain documents as prescribed.

4. Amount due Rs..

8. Hirers

should

execute

all

5. Margin

documents in favour of borrowers.

6. Instalment as per agreement

9. Demand Promissory Note and Hire

7. Engine No. & Chasis No.

Purchase Agreement executed by

8. Registration No.

hirers

9. Make & Model.

should

be

absolutely

assigned in favour of the Bank

10. Address of the place of stationing

reading as under.

of the vehicle.

We, within named..

Instalment Due Date Amount

for valuable consideration hereby

No.

Amount

Date Paid Advanced Debit

Paid

assign and transfer all our rights,

Balance

Credit.

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

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

3. If

hirer

continuously

defaults

comprehensive Insurance including

payment of instalments, he should

third party risks, With Riot, Strike,

be excluded for the purpose of

Extension endorsement in the joint

advance.

names of the owner and hirer with a

Guarantee (Refer Permanent Circular

special endorsement stating that the

ADV 22/90-91 DT 31.7.90.)

vehicle is hypothecated to Bank with

1. Shipping

Guarantee:

Obtain

Bank clause.

request letter in F 286F for issuing

Repayment

shipping guarantee.

16. Diarise the due dates

a. Ensure

Instalments should be paid to the

i. Bonafide on the request by

Bank direct by the hirers.

reference to invoice.

17. All instalments paid by the hirer (s)

ii. Invoice

and

other

credited

to

remittances
borrowers

to

be

Current

Account.
in respect of each instalment will,
on due date, debited to
Account and credited
Credit account under

current
to Cash

irrevocable

letter of authority.

to

genuine

movement of goods.
iii. Invoice is signed
iv. Letter

18. Proportionate amount due to Bank

relates

of

Credit

has

been

established relating to import.

v. If

Letter

of

established

Credit
collect

has
full

been
margin

before issuance of guarantee in

case

of

documents

against

payment.

Inspection

vi. If

Letter

of

Credit

has

been

1. Obtain a quarterly statement from

established and party is enjoying

the borrower listing out the names

Trust Receipt facilities obtain Trust

of

Receipt.

hirers,

vehicle

No.

amount

outstanding and a certificate that

the vehicle has been

inspected

and found to be road worthy.

2. Verify

periodically

vii. If letter of Credit has not been

established, collection is routed
through us, recover the actual or

borrowers

approximate amount due on the bill

records and books of accounts to

(whether it is Documents against

verify

Acceptance or Documents against

the

correctness

of

the

information furnished in periodical

statement.

Payment) and retain it in margin.

b. Enter details in Business Referred

requirements of the

Register and obtain approval of the

constituent.

Manager.

b. Guarantee amount is

c. Obtain letter of indemnity in F 286 E

consistent with the

duly executed by the importer (F286E

means, standing etc

to be stamped).

of the constituent.

d.

Enter

particulars

in

Shipping

1. Obtain letter of request for issuing

Guarantee Register and assign a

the guarantee in F 286F. The letter of

consecutive number.

request to be preserved with copy of

e. Collect margin and commission as

the guarantee till the guarantee is

per rules in force.

eliminated. The letter of request

f. Await for arrival of documents.

should contain as enclosure, the

When

format of guarantee to be issued,

received,

process

as

per

procedure.

duly authenticated by the applicant. If

g. Surrender Bill of lading to Shipping

the guarantee is secured by

Company or through borrower with a

hypothecation of any movable assets

request to return shipping guarantee

obtain F 110 E.

duly cancelled.

2. Record particulars in Business

h. On receipt of concelled shipping

Referred Register.

guarantee, reverse contra and round

3. Obtain Managers approval.

off in shipping guarantee register.

4. Prepare the guarantee with the

i.

Obtain

general

Hypothecation

agreement in F 110 E for securing

stocks/book debt/machinery as the
case may be.

Banks limitation clause (revised).

5. Ensure against any onerous clause
in the guarantee.
6. Obtain indemnity in Form 286E

Railway Guarantee
All the above formalities to be followed

from the applicant of the guarantee.

7. Record full particulars in Guarantee

Financial Guarantee & performance

Register and post the amount in

Guarantee

Liability Register.
8. Guarantee to be signed by two

Ensure

officials of the Bank.

a. Guarantee relate to
normal business

9. Collect necessary commission and

margin, if any.
10. Obtain documents as prescribed.

11. Retain the margin in margin on

Guarantees.

beneficiary under the guarantee during

its validity period.

12. Retain copy of guarantee along

with indemnity and letter of request.

c. If the guarantee has been

extended beyond the dates given in

13. Pass contra voucher.

the

Dr. Customers Liability on Guarantees

guarantee, guarantees stand lapsed

account.

even after the extended date.

Cr. Banks Liability on Guarantees

17. Reverse the contra (i.e.)

account.

Dr.

14. Ensure, on the date of expiry, that

Guarantee is returned to the Bank duly

original

Banks

guarantee/

Liability

on

extended

Letter

of

Guarantee.
Cr. Customers Liability on Letter of

cancelled.

Guarantee.

15. If not received write a letter under

18. Reduce the liability in Liability

Registered Post with

Register

and

round

Acknowledgement Due to the

Guarantee Register.

off

in

beneficiary calling for the return of the

19. No guarantee should exceed a

original guarantee duly cancelled and

period of more than 10 years.

also stating that in case the cancelled

20. Guarantee should be for a

guarantee is not received within 10

days from the date of receipt of the

specific amount.
21. Revolving guarantee should not

letter, the guarantee will be eliminated

from the books without any reference

be issued.
22. Period of liability should be

to the beneficiary.
16. If no reply is received or if

clearly indicated.
23. Incorporate

the

following

guarantee is returned duly cancelled,

restrictive clause as last para in

margins kept may be returned to the

all Guarantees.

applicant, while doing so ensure.

a. The validity of the guarantee is

Not withstanding anything contained

herein :

carefully verified by the branch as per

i). Our liability under this Bank

the restrictive clause including claim

Guarantee

period, if any

Rs. (Rupees .

b. No claim including a demand

has been made on the branch by

shall

not

.
only)

exceed
..

ii) This Bank guarantee shall be

(Refer Permanent circular

valid upto. and

iii) our

liability to make

ADV

32/90-91 dt. 4.9.90)

payment

a. Form 29 - undated from of

shall arise and we are liable to pay

note of transfer of ownership

the

of

guaranteed

amount

or any

part there of under this guarantee

motor

vehicle

see

Annexure 23.

only and only if you serve upon us

b. Form 30 undated report of

a written claim or demand in terms

transfer of ownership of a

of

motor

the

guarantee

on

or

before
Refer

Permanent

vehicle

See

Annexure 24.

Adv.194/97-

c. Form

98/6.12.97

34,

making

application

an

entry

agreement

of

of

for
an
hire

Advance against Motor Vehicle

purchase/lease/hypothecati-

1. Cash Bill or Invoice representing

on

subsequent

to

payment of purchase price of Motor

registration Refer Annexure

Vehicle.

25.

2. In the case of Old Motor Vehicle,

certificate

of

worthiness
approved

If the advance is completely adjusted

fitness,

road

send form 35 notice of termination of

value

from

an

and
qualified

Automobile

Engineer/ Engineering company.

agreement

of

hire

purchase

lease/hypothecation as per Annexure

26.

3. Comprehensive Insurance Policy

Agriculture

on each vehicle with the Bank

Crop Loans

Clause.

1. Application duly filled in Agri 1

4. Vehicle

Registration

Certificate

recording the Bank as financier

hypothecate Bank.

and Agri 15.

2. Chitta and Adangal duly signed
by the Village Officer showing

5. Documentary evidence of payment

the survey number and extent

of road tax (carrier licence fee if

of dry and wet land, land

company is a transport operator)

revenue, crops raised. In case

upto date.

of land cultivated by tenants

Obtain

following

documents

in

duplicate as per Motor Vehicle Act:

lease deed or consent of the

owner

or

village

officers

certificates showing survey no

society/land

and extent of lands cultivated

Bank.

on lease and owners name.

3. No due certificate/Non member

4. Valuation

Development

Report

on

lands issued by the village

certificate from the village co-

officer

operative credit society.

security is obtained.

4. Valuation report on the land by

the

village

officer

when

collateral security obtained.

the

when

collateral

5. In case of loans for electric

motors

and

pumpsets

feasibility certificate from the

5. Two copies of passport size

photographs of the applicant.
6. It is not necessary to insist on

Electric

Board/Department

regarding

extension

of

power supply.

village officers certificate on

6. Proforma invoice for electric

holdings every year when the

motor/oil engine, pump sets

parties

and accessories.

after

repaying,

approach for fresh loan for

cultivating

the

same

7. Estimate

and

plan

for

lands

construction of pump rooms.

unless branch see reasons to

8. Two copies of passport size

believe that there is change in

photographs

the holdings.

applicant.

Loans for Purchase of Electric

Motor/Oil

Engine

with

Pump

sets:

of

9. No objection certificate from

the

Sale

Ground

Directorate

1. Application duly filled in Agri

5 and 15.
2. Chitta

and Adangal

the

in

Water

case

for

purchase of pumpsets as
per guidelines in force in

duly

signed by the village officers

showing the survey number
and extent of dry and wet

respective states /Regions.

10. Authorisation

to

pay

the

amount to the dealer.

11. Registered

mortgage

or

Memorandum

of

land, land revenue, crops

Regd.

raised, etc.

Deposit of title deeds or

3. No due certificate from the

village

co-operative

credit

equitable mortgage as the

case may be.

Loans for Sinking and Deepening of

land revenue crops raised etc

Well

duly

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

signed

by

the

officer.
3. Valuation Report on the land by
village officer when collateral
security obtained.
4. No due certificate from Co-

survey number and extent of dry and

operative

wet land, land revenue, crops raised

Development Bank.

etc.

village

Society/Land

5. Detailed estimate and plan for

3. No due certificate from Co-

the works proposed from a

operative

qualified engineer.

society/Land

Development Bank.

6. Feasibility certificate from the

4. Valuation Report on the land by

Agricultural / Irrigation Engineer

the village officer when collateral

or Agricultura Officer of the

security obtained.

State Govt.

5. Detailed estimate and plans for the

various

works

proposed

from

qualified engineer.

7. Regd. Mortgage of Land or

Regd. Memorandum of deposit
of

6. No objection certificate from the

State Ground Water Directorate as

title

deeds

equitable

mortgage as the case may be.

8. Soil Test and water analysis

per guidelines in force in respective

reports

states/Region.

Laboratory

7. Regd. Mortgage of land or Regd.

or

from

Soil
in

Testing
case

of

reclamation.

Memorandum of deposit of title

Loans for Purchase of Tractors

deeds or equitable mortgage as the

Trailers and Agricultural Implements

case may be.

Loans

for

Land

1. Application duly filled in Agri 10

Development/

Reclamation

2. Chitta

1. Application duly filled in Agri 9

and Agri 15.
2. Chitta

and

and Agri 15.

and

Adangal

Extract

showing the Survey number

and extent of dry and wet land,

Adangal

Extract

showing the Survey numbers

and extent of dry and wet lands,

revenue crops raised etc signed

by the village officer.

3. No due certificate from the Cooperative

Society

Land

Development Bank.
village

invoice

for

dairy

equipments / utensils to be
purchased if any

4. Valuation Report on the land of

the

4. Proforma

officer

when

5. Copy of village record duly

signed by the village officer for

collateral security is obtained.

the landed property owned by

5. Two copies of passport size

the applicant including the land

photographs of the applicant.

in which the dairy will be

6. Profoma invoice of the tractor /

power tiller implements / trailer.
7. Allotment

letter

from

the

supplier.

located.
6. Valuation

certificate

for

the

property offered as security.

7. Letter of undertaking from Co-

8. Comprehensive

insurance

of

operative Milk Supply / Mill

the tractor / power tiller and

Union/ Dairy project / Dairy

trailer with the Bank clause.

Development

9. An undated sale letter signed by

the borrower in PL 7A.
financiers in the Registration
Certificate (R.C.) book of the
tractor / power tiller.
Regd. Memorandum of deposit
deed

or

the milk proceeds direct to our

branch.
8. Regd.

Mortgage

or

Regd.

Memorandum of deposit of the

11. Regd. Mortgage of land or

title

agreeing to purchase the milk

from the applicant and to remit

10. Incorporation of Banks lien as

of

Corporation

equitable

mortgage as the case may be.

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

Advance to Dairy Development.

Banks Clause

1. Application duly filled in Agri 7

and Agri 15.
photographs of the borrower.
and

Cattle

Insurance Scheme.
Advance to Poultry Farming

2. Two copies of passport size

3. Plan

under

estimate

for

construction of cattle shed.

1. Application duly filled in Agri 8

and Agri 15.

the

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.

6. No due certificate from the Land

Development Bank / Village

3. Two passport size photographs

of the borrower.

Agriculture Credit Society

7. Insurance

4. Insurance of the shed against

of

Sheep

under

Livestock Insurance Scheme

fire
5. Plan

and

estimate

for

the

Advances to Fisheries Development

construction of poultry shed, if

1. Application duly filled in Agri 18

loan is required for construction.

6. Proforma invoice for poultry

and Agri 15.

2. Technical feasibility report from

cages, equipments, birds feeds

the

etc.

showing

7. Copy of village record duly

fisheries

Department

the

availability

catches in the area, suitability of

signed by Village Officer for the

the

property in which the poultry is

applicants competence etc.

located.

vessel

and

engine,

3. Proforma invoice for supply of

8. Valuation report of the property

offered as security.

hull,

marine

engine

and

accessories from established

Advance to Sheep Development /

boat

Piggery

manufacturers

1. Application duly filled in Agri 7

and Agri 15

building

yards
/

dealers

indicating the period required

for supply.

2. Two copies of passport size

photographs of the borrower

4. Certificate
security.

signed by the village officer for

5. Reports

the landed property owned by

the applicant
Certificate

on

valuation

of

immovable property offered as

3. Copy of village record duly

4. Valuation

of

on

the

worth

of

guarantors.
6. Where the Govt. Assistance for

for

the

property offered as security

5. Regd. or equitable mortgage of

margin money is sought or

where any subsidy is available
from

Govt.

the

application

property or Regd. Memorandum

should be recommended by the

of deposit of titile deeds as the

Fisheries Department

case may be

State.

of the

7. Regd. Mortgage of immovable

society / Land Development

property or Regd. Memorandum

Bank concerned and any other

of deposit of the title deeds or

Bank, financing in the area.

equitable mortgage as the case

7. Village officials certificate on

may be.

the value of land when collateral

8. Registration of banks charge

with Port Authorities.
9. Registration

of

security is obtained.
8. Two copies of passport size

vessel

with

photographs of the applicant.

MPEDA.

For other type of agricultural

10. Comprehensive

insurance

of

advances and for other minor

the boat with Banks clause.

agricultural

advance

please

refer to the Guidelines and

Advance of Gobar Gas Plants

Norms for Agricultural Financing

1. Application duly filled in Agri 11

1992 Edition.

and Agri 15

Wherever Regd. Memorandum of

2. Branch Managers inspection

deposit title deeds are executed the

report on the site where the

same should be executed in F-417.

applicant proposes to install the

In cases of advance under agriculture

gas plant.

where registered mortgage of lands is

3. Estimate

with

break

up

of

one of the conditions, mortgage should

various costs and feasibility

be executed by the borrowed /s in F

certificate from Technical staff of

512.

Khadi commission / Board /

State Govt.

Wherever F512 has been obtained

and registered with the Sub registrar,

4. Registered

or

equitable

Branch need not obtain documents

Regd.

afresh whenever loans are sanctioned

Memorandum of deposit of title

to the same borrower. The following

deeds as the case may be

instructions should be followed.

mortgage

or

5. Authorisation letter in favour of

the

branch

subsidy

to

direct

receive

the

accounts, but keep a nominal

from

the

balance (credit balance) after

sponsoring authority.

adjustment

6. No due certificate from the

village

1. Do not close the cash credit

Co-operative

Credit

advance.

of

the

seasonal

2. Though the account is treated

refrigerator, radio-gram, television,

as cash credit, do not issue

gas

cheque book. While effecting

computers,

payment, obtain the signature

VCR etc.

of the borrower on the reverse

c. Applicant has a stable income

of the debit cash voucher duly

with reasonable prospects of its

stamped.

continuance during the term of the

3. Whenever

there

is

an

stove

including
fax/xerox

cylinder)
machines,

loan.

enhancement in the limit obtain

d. Applicants age is not over 50

DPN and hypothecation deed

years. In case the applicant is aged

as well as guarantee for the

over 50, a suitable guarantee or

amount of enhancement.

collateral security by way of Life

In

case of registered mortgage a

Insurance Policy will be required.

supplementary deed has to be

2. Satisfy about the integrity, ability

drafted and registered. Similarly

to

in case of equitable mortgage a

character,

supplementary narration has to

environment etc.

be made in the Title Deeds

3. No second loan is granted for

Deposit register and F 379 A

item already purchased.

should be obtained.

4. No second loan is ordinarily

meet

his
home

Personal Loans

granted

1.Ensure

outstanding.

a.

Applicants

are

salaried

when

commitments,
and

one

office

loan

is

5. Obtain the application form in

individuals, professionals and self

duplicate (PL2).

employed

6. Interview the borrower. Consider

persons

with

steady

income.

the guarantee. Guarantor should

b. Loan is for purchase of new

be of higher financial status than

items such as radio cycle, wooden

the borrower.

and

sewing

7. Forward Enquiry Form PL3 to

machine, electric fan, cooker, wall

the referees, PL18 to his employer

clock,

and PL4 to the guarantor.

metal

furniture,

water

heater,

washing

machine, cotton mattresses, tape

8. Obtain the Enquiry form duly

recorder, wet grinder, sofa-cum-

filled in.

bed,

scooter,

motor

cycle,

9. Repayment period should not

exceed 30 months for consumer
durable. Entire loan should be

record cost of article, margin,

discount, name of dealer etc.
15. From

tables

supplied

to

repaid either within 6 or 12 or

Branches, find out the Discount

18 or 24 or 30 months. For

Amount for the period, amount

automobiles such as scooters &

of DPN and monthly instalment.

motorcycles

(not

mopeds)

repayments up to 48 E.M.I.
could

be

considered

in

deserving cases.

16. Obtain

Documents

as

prescribed.
17. Ask the party to remit the
margin amount in his account.

10. The maximum loan amount is

18. Debit personal Loan account

85% of the cost of the article or

with

5 times the gross emoluments,

Discount. Credit SB/CD account

whichever is lower for consumer

of

durable.

amount. Debit SB/CD account

For two wheelers 10

the
the

times of gross salary or 75% of

of

the

discount

cost

of

the

vehicle

whichever is less

the

loan

Amount

borrower
borrower

and

with
with

amount

the
the

Credit

Discount with the discount for

11. Total deductions inclusive of

the half year. Credit Balance

the instalments of the loan

amount or discount portion to

applied for should not exceed

unexpired Discount. Debit the

50% of the applicants gross

cost of the article to SB/CD

income.

account of the borrower and

12.

If the applicant is not a

customer of the Bank, ask him
to open a current or savings
account.

Credit Bankers cheque Account

with the amount.
19. Write

the

Bankers

Cheque,

forward the same along with the

13. Ask the party to deposit the

applicable margin amount.

covering letter (PL9) to the

dealer.

14. Enter particulars in Personal

20. In case of members of staff

Loan Ledger giving details of

refer to appropriate discount

documents

charts and margin as per latest

security,

taken,

nature

of

instalments received

outstanding balance etc. Also

circular on the subject.

General
complied

formalities
with

in

to

be

thereafter

case

of

conducted by an official of the

advances to Limited Companies.

Branch

1.

credit facility.

Certified

copies

of

the

Companys Memorandum and

6.

All

research

before

copies

renewal

of

resolution

Articles of Association.

forwarded

2.

Certificate of incorporation.

company must be signed by

3.

Certificate of commencement

the Chairman of the Meeting

of business (in case of private

and

limited companies, this does

Secretary.

not arise)
4.

Certified
Resolution

7.
true

copy

passed
borrowing

countersigned

limited

by

the

For all types of advances,

there should be an application

by

for the facility duly signed by

from

the authorised signatories.

8.

Letter of acceptance of terms

Bank and naming committee

and conditions for sanction of

of

limit should also be obtained

Directors/Managing

Director/Managing

and

Agents/Secretaries

and

Treasurers/Managers or any

signed

by

authorised

signatories.
9.

Documents to be obtained in

other Principal Officers of the

duplicate (one stamped and

Company to create Deeds

the other unstamped) duly

/Documents on behalf of the

executed by the authorised

company. Such a resolution

signatories of the company.

delegating

5.

of

Companys Board of Directors

authorising

by

of

the

power

to

10. Attested

copy

of

the

borrow must specify the total

documents should be filed

amount outstanding at any

along with Form 8 and Form

one time upto which money

13

may

signatories of the company

be

borrowed

by

the

by
the

the

authorised

delegates.

with

Registrar

Certified extract from the files

Companies within 30 days of

of the registrar of Companies

creation of charge. Branches

after advice of registration has

should

been received and every year

documents with the Registrar

note

to

of

file

the

the

of the Companies at the earlier

12.

date as there is dictum in Law

modification of charge:

that he who comes first is first

Following

constitutes

a. Variation in the rate of

in point of law. and should not

interest,

wait to avail the time of 30

modification on account of revision

days allowed by the Act.

in the interest rate, in the original

11. Charge to be registered in the

case of following securities

Form

(to

avoid

and

mentioning

13

the

filing

of

itself,

after

interest

rate

a. Debentures

indicate that it is subject to revision

b. Uncalled share capital

from time to time e.g 16% +

of the company

interest rate subject to revision by

c.

the Bank from time to time.

Immovable property

d. Book debts of the

company

c. Additional securities

e. Hypothecation

of

d. Increase or decrease in the limits

merchandise,

13. Modification of charge should

vehicles,

also be filed within 30 days of such

furniture,

fixtures

etc

of

movable types.
f. Floating
the

modification in Form No. 8 and

Form No. 13.

charge

on

14.

undertaking

of

companies

In

case

of

and

public

limited

private

limited

any property of the

companies which are subsidiaries

company

of a public limited company, if the

including

stock in trade.
g. A charge

borrowings exceed the paid up

on

calls

made but not paid.

h.

b. Variation of margin for the loan

A ship or any share

in a ship.

i. Good

will,

capital

and

resolution
excess
General

free

authorising

has

to

Body

be

reserve

such

an

passed

in

Meeting

of

the

patent,

Company and certified copy of

licence under patent,

such resolution should be obtained.

trademark copyright,

15. A certified copy of resolution

licence

passed at a Meeting of Board of

copyright.

under

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 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 instruction of the Reserve Bank of India from time to
time.
Incase of discrepancy between the English version and tranlated version in other languages, English version shall prevail
F.12 A (Revised)

Stamp

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 translated version in other languages, English version shall prevail
F.14 A (Revised)

Stamp

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
Revenue
Stamp
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 Banks 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 Banks
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 articles 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
Banks
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
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

of Engine Number and Chassis

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

SCHEDULE
General
description of the
vehicle

Name of Manufacture

Name of supplier or
suppliers

Make & Model

Year of Manufacture

Chassis No.

Tools & Plant

No.
Engine No.

Signature of Borrower

PL 7

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
Indian Overseas Bank

Place :
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 Manager
Indian Overseas Bank
Madras 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 . months 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

Stamp

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
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
...

To
The Manager
Indian Overseas Bank

Place ..
Date 19.

. 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.

3. For issuance of Bank

Guarantee/letter of credit,
commissions and interest as
applicable per Banks 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)
ii)

Payment in cash
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.

60 H

Signature(s) of Applicant(s)

LETTER OF AUTHORITY CUM UNDERTAKING SCHEDULE OF TERM DEPOSIT

LODGED

Deposit Receipt/
A/C No.

Name of the
Depositor(s)

Date
Issued

Rate of
Interest

Amount/
balance

Date of
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 Banks 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 Banks 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
banks 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

F.64(A)

Manager

The Manager
Indian 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.

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.

Merchandise

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 ..

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

F. 65

Indian Overseas Bank

Irrevocable
Documentary Credit

Number:

In continuation of our cable/telex

dated

Stamp
Cable :

Telex :

Expiry Date :

Place and date of issue

Place of presentation

APPLICANT

BENEFICIARY

ADVISING BANK

REFERENCE NO.

Amount
in figures
in words

Partial despatch

allowed

not allowed

Transhipment

allowed

not allowed

Shipment/Despatch as
Article 46
From
For transportation to
Not later than

Credit available with Nominated Bank :

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

defined in UCP 500

:
:
:

Against the documents details herein :

and beneficiarys draft(s) drawn on :

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 Bank
Notify .. 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 air
Indicate 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 carrier
2. Name of vessel
2. Flight number & Date
3. Bill of lading number & Date
3. Airport of departure
4. Port of shipment/place of taking incharge
4. Airport of destination
5. Port of discharge/place of final destination
5. Commodity
6. Commodity
All Bank charges outside India are for account of beneficiary/ applicant.
This document consists of .. signed pages. ( Name

F80B

For Indian Overseas Bank

Sig No.) (Name
Sig No.)
Authorised Signatures

Indian Overseas Bank

Cable

Telex :

Continuation
of Number :
irrevocable
Documentary
credit

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 BANK

We 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 of
Presentation

Amount in Figures and Words

Name Stamp and

Signature of the Bank

Indian Overseas Bank

Irrevocable
Documentary Credit

Number :

Stamp
In continuation of our
Cable/telex dated
Cable :

Expiry Date :

Telex:

Place and date of issue

APPLICANT

ADVISING BANK

REFERENCE NO.

Place of presentation
BENEFICIARY

Amount
In figures
In words

Partial despatch
allowed

allowed

not Credit available with Nominated bank :

by payment at sigh
by deferred payment at

Transhipment
allowed not
allowed
by acceptance of drafts at
Shipment/Despatch as defined in UCP 500
Article 46
by negotiation
From
:
For transportation to :
Not later than

Against the documents detailed herein :

and beneficiarys draft(s) drawn on:

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 carrier
2. Railway Receipt No. or
2. Flight Number & Date
Lorry Receipt No.
3. Airport of departure
3. 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 Signatures
F80D

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 banks
instructions.
for Indian Overseas Bank
(Name

Date of
Presentation

Ref. No.

Sig.No.)
(Name
Authorised Signatories

Amount in Words and Figures

Sig.No.)

Name, Stamp, and

Signature of the Bank

REQUEST FOR LOAN ON THE SECURITY OF GOLD JEWELLERY

The 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

Gross
Weight

Net Weight

Advance
Rate

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 of
Village
and
distance

Survey
No.

Extent of land
owned
/ cultivated

Name
of
crop

In case of loan for meeting the

cultivation expenses
Acreage
Sowing Harvesting
season
season
Irrigated Rainfed

Loan
Amount
applied

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

Yours faithfully,
(Signature of Borrower)

APPRAISERS CERTIFICATE
Indian Overseas Bank . Branch

Date .

Jewel Loan No
Schedule of Jewellery Deposited as Security

Name of Borrower

No.

Description

Gross
Weight

Net
Weight

Fineness
In carats

Advance
Rate

Advance
Value

Market
Value

Remarks

The ornaments referred to above were appraised by me and valued at Rs. ..

(Rupees ..) I guarantee the above weight, fineness
and valuation.

Countersigned .
(MANAGER)
89 E.

Signature of Appraiser

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 weeks notice.
3. The Bank shall be entitled to revalue 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 weeks
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 Managers 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

Irrevocable

Documentary

Credit

.. Branch

Application

APPLICANT

Date of Application
Branch Manager/First Line Managers
Remarks 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
Confirmation of the Credit :
not requested requested
authorised if requested by beneficiary
Partial Shipments allowed not allowed

BENEFICIARY

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

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

Insurance will be covered by us

Shipment as defined in UCP 500 Article 46

Amount in figures and words ( Please

use ISO currency codes)

Credit available with Nominated Bank

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 carrier
2. Name of vessel
2. Flight Number & Date
3. 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 destination
5. 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 beneficiarys 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 List
Documents 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 Importers 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)

Stamp

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

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
notwithstanding 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 banks
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

F104X

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

LETTER OF HYPOTHECATION
To

Indian Overseas Bank

1. As you may from time to time

(at

my/our

request)

bind the members of my/our

make

firm for the time being as if a

advances to me/us or for

separate similar letter were

my/our account and/or accept

signed on the occasion of

a Bill or Bills of Exchange on

each transaction by each and

my/our

every such member.

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

between

us

is
that

agreed
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

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 warehousekeeper, 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

to accept payment from the
account whatsoever) including
Drawees and/or acceptors of any
re-exchange and all charges I/we
Bill or Bills or the consignees of
authorise you as aforesaid to
any goods, against delivery of
draw on me/us at sight for the
goods and/or documents and
deficiency, or debit my/our
furthermore I/we authorise you
account with such amount of
as aforesaid to allow a discount
delivery
without
prejudice
in consideration of such payment
nevertheless to any claim against
being made before maturity at
any parties to any Bill or Bills or
the current rate of rebate allowed
their estates for recovery of the
by the Exchange Banks.
same and I/we engage to honour
8. It is understood and agreed that
such drafts on presentation in
the account current with me/us in
case of loss of goods or
your books shall at all times be
documents insured at any time
conclusive evidence of the
I/we authorise you to realise the
amount owing by me/us to you
policy or policies and charge the
from time to time.
same commission on the
9. This letter of hypothecation is
proceeds as upon a sale of goods
retrospective in its action and is
and apply the net proceeds, after
applicable to all current and
such deduction as aforesaid, in
future transactions and continues
manner hereinbefore provided.
operative notwithstanding any
6. The receipt of goods and or
alteration by death, retirement
documents by you shall not
introduction of new partners or
prejudice your rights on any Bill
otherwise in the persons from
or bills in case of dishonour nor
time to time constituting our
shall any recourse or proceedings
firm, or in the style under which
taken thereon or your granting
the business is carried on from
time to or entering into any
time to time. Notice of our
composition or arrangement with
desire to terminate the agreement
any parties to such bill or bills
embodied in this letter must be
prejudice or affect your title to
given in writing.
such securities and it is also
agreed that your rights against
Dated .. this
me/us as aforesaid shall not be
day of .
prejudiced in any manner
Two Thousand and .
whatsoever owing to any such
.
bill or bills not having been noted
and/or protested in the event of
.
dishonour by non-acceptance and
Signature
/ 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
HYPOTHECATION OF BOOK DEBTS
Stamp

Indian Overseas Bank (hereinafter

called

The

expression

Bank
shall

which

include

its

successors and assigns) having

at

the

request

of

(hereinafter

called

the

borrower which expression shall

include

its

assigns)

successors

agreed

to

and
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 banks
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 borrowers
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 borrowers
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 banks
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 banks 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 banks
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
Borrowers current account, loan
or Cash Credit or any other
account with the Bank running to
a credit balance at any time, the
Banks 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
F 107A

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 banks local
Manager that the envelope was
so posted shall be conclusive.
Dated .. this .
day of .
..

.
Signature.

AGREEMENT FOR CASH CREDIT/OVERDRAFT

AGAINST HIRE PURCHASE DOCUMENTS

Stamp

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 banks
remedies aforementioned it is
agreed that the borrowers shall, if
the bank so requires, act as the
banks 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
banks not taking steps to enforce
payment of such promissory
notes against the principal debtor

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

F107B

to credit at any time or from time

to time and if the whole of the
Banks 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

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 Manager
Indian overseas Bank

Re : Agreement dated
for cash credit against
Hire Purchase Documents
Please take delivery of the following :

Pronote and
Hire purchase
Agreement Date

F 107 D

Executed by

Particulars of vehicles
Registration Mark, Make,
Engine No., Chassis no. and
year of Manufacture

Amount

..
(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,

MANAGER
F 107 E

Stamp
The Manager
Indian 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 Banks decision as to market value shall in all cases be final and binding

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 Banks 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

5.

6.

7.

8.

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.
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.
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.
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.
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 Banks
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 SAFE

CUSTODY/DEPOSIT RECEIPT

Stamp

To
The Manager
Indian overseas bank
.

Date :

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

Securities included in the receipt and now delivered
Serial No.

Date
Description of article delivered

Signature(s) .
.
F109 (c)

Stamp
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

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 Banks 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 borrowers
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 Banks
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 borrowers
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 Banks 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 which
the 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 .
----------------------

SCHEDULE OF SECURITIES
Referred to in the foregoing Agreement

F 110 (A)

(To be stamped as
an agreement)

Stamp
TERM LOAN AGREEMENT

This

Agreement

made

d) A joint and undivided Hindu

atthe

family or a joint family firm,

.day of

include all its coparceners,

.Two Thousand

e) An

Association,

corporate,

include its successors and assigns

by

all members and their respective

heirs, executors, administrators

(hereinafter referred to as the Borrower

and assigns.

which expression shall, where the

In

Borrower is.

OVERSEAS BANK, a body

FAVOUR

OF

INDIAN

a) an individual, include his/her

corporate constituted under the

heirs, executors, administrators

Baking companies (Acquisition

and assigns; where the Borrower

and Transfer of Undertakings)

is more than one individual,

Act, 1970 and having its Head

include all of them jointly and

Office

each of them severally and their

Chennai and a Branch office

survivor or survivors and the

amongst

respective

at..(hereinafter

heirs,

executors,

at

762,

Annasalai,

other

places

administrators or other legal

referred to as the Bank which

representatives;

expression

b) a firm, include the partners for

shall

include

its

successors and assigns).

the time being of the firm their

WHEREAS the borrower

heirs, executors administrators

has applied to the bank for a loan

and assigns,

which the Bank has agreed to

c) a company, include its successors

and assigns.

grant

to

the

extent

Rs

of

(Rupees

governed by and subject to

the terms contained herein as

.only) upon having

well as those contained in the

the repayment there of secured

security documents listed in

on the terms and conditions and

schedule B here under except

in

in so far as the security

the

manner

hereinafter

mentioned.
AND

documents may be modified

WHEREAS

the

Bank at the request of the

by these presents.
2. The

Borrower

expressly

Borrower, agreed to disburse the

agrees and undertakes that

said loan to the extent of

the said loan received from

Rs.

the Bank shall be utilised

(Rupees

exclusively for a aforesaid

purpose.

3. The borrower promises and

only) on

undertakes

to

repay

or

after execution of this

amount of the said loan to the

agreement either in one lump

Bank by instalments in the

sum or in such amounts as may

manner mentioned hereunder;

be mutually agreed upon by the

First

parties to be utilised by the

Payable on .

Borrower for purchase of the

Second

machinery described in Schedule

Payable on . Third

A hereunder written and for no

installment RsPayable on

other purpose.

NOW
CONSIDERATION

of

installment

the

installment

Fourth

Rs
Rs

installment

IN

RsPayable on .

the

Fifth

installment

Rs

premises it is hereby agreed as

Payable on . Sixth

follows:

installment RsPayable on

1. The Borrower hereby agrees

. Seventh installment

that the said loan shall be

RsPayable on .

Eighth

installment

Rs

principal

or

interest

Payable on . Ninth

mentioned above, the Bank

installment RsPayable on

shall be entitled to charge

interest at two percent per

Tenth

installment

RsPayable on

annum

over

the

rate

mentioned in the preceding

4. The Borrower shall, so long

Para on the amount of such

as the said loan or any part

default from the date till

thereof remains unpaid to the

payment or realisation of

Bank, pay interest at rate of

such defaulted principal or

percent

interest.

over

the Reserve Bank of India

6. As security for the repayment

lending rate with minimum

to the bank of the amounts

of. percent per

due under this Agreement,

annum or at such other rates

the

as may be notified by the

hypothecates

Bank to the Borrower from

unto the Bank by way of first

time to time

charge

rising and

Borrower

hereby

and

charges

machineries.

falling therewith calculated

(Whether fixed or movable

respectively on the daily

and whether attached to the

balance of the amount due

premises

with quarterly rests, on the

particularly described in the

last days of March, June,

schedule A, hereunder written

September

(hereinafter

and

December

or

not)

called

more

the

each year and pay such

securities

the

expression

interest within seven days

securities

shall

wherever

from the date from which it

required or necessary include

falls due for payment.

all fittings, fixtures, furniture,

5. In case there is any default in

tools accessories and part

the payment of any of the

whatsoever pertaining to the

instalments

said hypothecated machinery

either

of

the

and all replacements of or

from any cause whatsoever or

additional

by reason of any claims by

made

to

the

hypothecated machinery from

third parties.

time to time as continuing

8. So long as any money

security for due repayment by

remains due in respect of the

the Borrower to the Bank

said loan, the

at.

shall not remove or cause or

of

permit to be

the

said

loan

of

Borrower
removed the

Rs..

securities from the Borrower

premises

(Rupees

at...

..only)

and

interest

thereon

by

.where

the

instalments in the manner

same are presently kept and

aforesaid and costs, charges

other placces wherever kept

and expenses incurred by the

or stores for the benefit of the

Bank

Borrower

for

the

preservation,

protection,

defence

and

perfection of this security and

for

attempted

or

actual

realisation thereof.
7. The borrower declares and

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

guarantees that the securities

conspicuously at all times in

are and

shall remain the

place/fixed or lying loose in

absolute and unencumbered

addition to fixing up the

property of the borrower with

name plates or painting on

full power of disposition and

the

undertakes to indemnify the

necessary stating distinctly

Bank against every and any

that the machinery in the

kind of loss or damage or

premises

destruction to the securities

hypothecation to the Bank

machinery

are

wherever

under

and on the failure of the

the Bank in the joint names

Borrower to do so, the Bank

of the Bank and Borrower,

may itself cause its name

with the Bank clause and the

board(s) name plate(s) to be

policies shall forthwith be

displayed/fixed or painting

handed over to the Bank The

done in the aforesaid manner.

Borrower

The

also

punctually pay the premia

display the list of machinery

due on the policies atleast

prominently

place

one week before the same

of

shall have become due or

machinery are stored or fixed

payable and handover the

and/at such other places in

receipts to the Bank and the

the

the

Borrower agrees not to raise

borrower as the Bank may

at any time any dispute as to

desire.

the amount of the insurable

borrower

whether

shall

in the

the

items

office/factory

of

shall

duly

and

10. The securities shall at all

interest of the Bank if the

times during the currency of

Borrower shall make default

this agreement and so long as

in effecting such insurance as

any money shall remain due

aforesaid or renewing any

and owing in the said loan

policy or in payment of such

account be maintained in

premia, or in keeping the

good working and saleable

securities so insured or in

condition and insured and

delivering to the Bank the

kept insured by and at the

policies or receipts for the

expenses of the Borrower

premea, it shall be lawful (but

against fire and such other

not obligatory) for the Bank

risks as may be required by

to effect such insurance or to

the Bank or be required by

renew or to pay such premia

law to the full extent of the

and keep securities insured

value thereof in an insurance

and to debit the expenses

office or offices approved by

incurred by the Bank for this

purpose to the said account

account, the Borrower agrees

and the same shall be treated

to

as advances secured by this

adequate alternate security to

agreement.

cover the shortfall.

The

Borrower

agrees to pay the same on

remit

11. The

cash

Borrower

or

give

shall

not,

demand with interest at the

during the continuance of this

rate

aforesaid.

received

under

All

sums

agreement sell, dispose of,

any

such

pledge

hypothecate

or

insurance as aforesaid shall

otherwise charge, encumber,

after

or in any manner part with

deduction

of

all

expenses, be applied either in

the

reinstating the security or in

securities or any part thereof

or towards the liquidation of

except

the balance due to the Bank

prescribed by the Bank nor

for the time being and in the

shall the Borrower do or

event of there being a surplus

permit to be done any act

the same shall be paid to the

whereby

Borrower

the

hereinbefore expressly given

Banks lien in respect of the

to the Bank shall in any way

Borrowers other dues to the

be prejudicially affected or

Bank if any. The Borrower

whereby

agrees that if any moneys

attachment or execution may

under any such insurance are

be levied thereon by any

received by the Borrower, he

creditor

shall pay the same forthwith

including any Government or

to the Bank and in the event

Municipal authority or body.

subject

to

possession
in

of

the

the

any

or

the

manner

security

distress

other

or

person

of the insurance amount so

12. The Borrower shall duly and

applied for liquidation of the

punctually pay, perform and

insurance

observe all rents, rates, taxes,

amount

of

the

balance due to the Bank

assessments

leaving a shortfall in the

outgoings

and
and

other

whatsoever

covenants

and

obligations

along

with

the

which ought to be paid or

interests

performed or observed by the

mentioned above.

Borrower in respect of the

said

premises

and

shall

any

books

intimation

date

as the loan or any part hereof

remains

or

the

14. The Borrower shall, so long

inform the Bank promptly of

notice

on

quarterly

unpaid,
of

maintain

accounts

and

received from any of the

ledgers and other records

authorities, viz., Government,

documents relating to his

Semi Government, Municipal

business for the purpose and

or local or other authorities

promotion of which the loan

regarding any dues default,

has been obtained by him

delay etc. by the Borrower in

from the bank, and allow

the

the

inspection thereof by any of

obligations

the officers authorised by the

performance

Borrowers

of

towards them.

Bank in this behalf.

13. The Borrower shall pay to

the

Bank

commitment

15. It shall be lawful for the Bank

and

any of the

officers

charge of 1 % (one per cent)

authorised by it in this behalf,

per annum on the principal

without notice and at the

amount of the loan which

expense in all respects of the

shall not have been drawn by

Borrower, to enter at any

the Borrower from time to

time into or upon the offices,

time or shall not have been

godowns factories of the

cancelled by the Bank. Such

Borrower or places where the

commitment

shall

securities are kept for the

accrue from the date of first

purpose of making inspection

availment of the loan or the

of or checking the securities

date of execution of this

and

agreement

inspection of the books of

charge

whichever

is

earlier and shall be payable

taking

account

account

of the

and

Borrower

(which the Bank is hereby

security, or for any other

authorised to do so) and it

purpose.

shall also be lawful for the

17. The Borrower shall furnish to

Bank from time to time as it

the

may deem fit to have all or

returns of the cost and market

any of the securities for the

value of securities and a full

time being so hypothecated

description

and charged as aforesaid

produce such evidence in

valued an appraiser or other

support thereof as the Bank

valueer to be appointed by

may

the Bank and all expenses

require and shall at all times

and

such

during the continuance of this

inspection and expenses of

agreement keep and maintain

such

be

such margin of security as

debited to the Borrower in

may be required by the Bank

the said Loan Account and be

from time to time. If and so

payable accordingly and shall

often as the margin shall fail

until payment be treated as an

to be maintained then the

advance

Borrower shall forthwith (as

the

fees

valuation

secured

of
shall

by

this

Agreement.
16. The Borrower shall furnish to

Bank statements

thereof

from time

to

and

and

time

the Bank may require) either

hypothecate

to

the

Bank

the Bank all such information

further machinery or other

declarations, affirmations etc.

securities of sufficient value,

as the Bank may from time to

approved by the Bank to

time require including change

make up the deficiency or

in his address or the address

shall reduce the amount for

to which the securities may

the time being due to the

be removed subject to clause

Bank by a cash payment so as

8 above, and shall give and

to maintain the said margin.

execute necessary documents

18. If the Borrower makes any

required to give effect to this

default in payment of any

instalment of principal or

places as the Bank may deem

interest on the said loan or

it necessary, recover, receive,

any part of such instalment

appoint Receivers of, all or

on the respective due dates of

any part of the securities or

payment

books

thereof

as

of

account

and

mentioned above or if any

thereupon forthwith or at any

event or circumstances shall

time and from time to time

occur which shall in the

but after giving not less than

opinion of the Bank be

48 hours notice to sell either

prejudicial to or endanger or

by public auction or private

likely

the

contract or otherwise dispose

security or any other event or

of or deal with the securities

circumstance mentioned in

in such manner and upon

clause 22 hereunder happens

such terms and conditions as

or occurs the Bank, if it

the Bank shall think fit and to

thinks fit, shall be entitled at

apply the net sale proceeds

the risk and expenses of the

towards repayment of the

Borrower without any notice

ultimate balance due in the

at any time or times after

said

such default or event or

interest due thereon upto the

circumstance

or

date of such application and

happens, to enter (and for that

to enforce, realise, settle,

purpose to do any necessary

compromise and deal with

act, deed or thing) and remain

any rights aforesaid without

upon

where

being bound to exercise any

securities or the books of

of these powers or being

account of the Borrower may

liable for any losses in the

be kept and to inspect, value,

exercise thereof and without

insure and take charge or

prejudice to the Banks rights

possession and / or to seize,

and remedies of suit or other

remove to other place or

proceeding.

to

any

endanger

occurs

place

Loan

Account

and

The Borrower

hereby also agrees to accept

Agreement and as shown or

the Banks accounts of sales

reflected in the statements of

and realisations and to pay to

account made out from, the

pay

or

books of the Bank and signed

thereby

shown

by the Manager / Accountant

on

demand

/ or other duty authorised

made by the Bank and if the

Officer of the Bank without

net sum realised by such sale

the production of any other

shall be insufficient to pay

voucher, document or paper.

any

shortfall

deficiency
immediately

the amount hereby secured,

20. The bank shall not in any

the Bank shall be at liberty to

way be liable or responsible

apply any other money or

for any loss, damage or

moneys or securities in the

depreciation

hand of the Bank standing to

securities or any part there of

the credit of or belonging to

may suffer or sustain on any

the Borrower towards the

account whatsoever while the

payment of the balance and

same shall at any time come

in the event of there being

into possession of the Bank

still

or any Agent or Receiver

deficiency,

the

Borrower shall forthwith pay

such deficiency, on demand
provided

nothing

herein

which

the

appointed by the Bank.

21. The

Borrower

shall

not

during the continuance of this

contained shall in any manner

Agreement

prejudice of affect the Banks

written consent of the Bank.

remedy to proceed against the

other assets of the Borrower.
19. The

Borrower

agrees

to

without

the

(a) change or in any

way alter the capital
structure

of

the

accept as conclusive proof of

borrowing concern /

the correctness of any sum

company

claimed to be due from him

to

the

Bank

under

this

(b) effect any scheme of

amalgamation

or

reconstruction;
(c) implement

the

proprietors,

partners or directors
of the Borrower;

new

(g) Invest any funds by

scheme of expansion

way of deposits, or

or take up an allied

lonesor

line of business of

capital of any other

manufacture.

concern so long as

(d) Enlarge the scope of

the

other

activities

trading
if

in

share

any money is due to

the

Banks

the

any

Borrower

the

however be free to

the

deposit

and

way of security, with

notified to the Bank

third parties in the

as such;

normal

undertaken
time

at

of

application

will
funds

course

by

of

(e) Declare a dividend

business

or

if

or distribute profits

required

for

the

after deduction of

business;

taxes, except where

(f)

(h) Borrow

or

obtain

the instalments of

credit facilities of

principal and interest

any description from

payable to the Bank

any other Bank or

are

credit

being

paid

agency

or

regularly;

moneylenders

Withdraw or allow

enter into any hire

to

purchase

the

withdrawn

or

during the currency

arrangement during

of

the currency of the

the

loan

any

moneys brought in
by the Borrower or

loan;

22. Notwithstanding herein or in

the

security

found

documents

contained the whole of the

to

be

materially incorrect;
(d)

the

Borrower

loan or the entire balance

committing

there of outstanding at the

branch or default in

time shall become forthwith

the performance of

due and payable by the

or observance of any

Borrower to the Bank and the

term or condition or

Bank will be entitled to

provision contained

enforce its security upon the

in these presents and

happening of any of the

/ or in the security

following events, namely.

documents or any

(a) any installment of

other

any

term

or

principal remaining

condition relating to

unpaid for a period

the advance;

of 15 days after the

(e) the

borrower

respective due date

entering

for

arrangement

the

payment

there of;

into

any
or

composition with the

(b) any
remaining

interest

Borrowers creditors

unpaid

or committing any

and in arrears for a

period of 3 months

act of insolvency;
(f)

the

Borrower

after the same shall

committing any act

have

due

the consequences of

whether demand or

which may lead to

not;

the winding up of

become

(c) any representation or

statement
herein
Borrower

made
by

the
being

the

Borrowers

business;
(g) execution or distress
or

other

process

being enforced or
levied

upon

(j)

Receiver

being

or

appointed in respect

against the whole or

of the whole or any

any

part of the property

part

of

the

Borrowers property
whether secured to

of the Borrower;
(k) the

the Bank or not;

into

for

or

threatening to cease

liquidation

(except

Borrower

ceasing

(h) the Borrower going

(i)

to carry on business;

the

or

giving

of

purpose

of

threatening to give

amalgamation

or

notice

reconstruction

with

intention to do so or

the approval of the

dispose of the whole

Bank);

or any substantial

the Borrower (if an

part of the business;

individual) or any of

(l)

of

its

if the Borrower shall

the partners of the

stop

Borrower (if a firm)

threaten to do so;

being

payment

or

adjudicated

(m) if the Borrower shall

insolvent or taking

without the consent

advantage

in writing of the

of

any

law for the relief of

Bank

insolvent debtors; or

attempt or purport to

entering

create any mortgage,

into

arrangement

any
or

charge,

create

or

pledge,

composition with his

hypothecation,

or

creditors

or

lien or encumbrance

committing any act

ranking in priority to

of insolvency;

or pari passu with or

create any mortgage,

charge

pledge,

depreciate

or

hypothecation or lien

jeopardize

the

or

security given to the

encumbrance

subsequent

to

the

Bank; and

security given or to

(p) the

be given to the Bank

any

for the above loan;

circumstance which

(n) it being certified by

occurrence

of

event

or

would or is likely to

an accountant or a

prejudicially

firm of accountants

adversely affect in

appointed
Bank

by

the

any

(which

the

capacity

or

manner
of

the
the

Bank is entitled and

Borrower to repay

authorised to do at

the loan.

any time) that the

On the question whether any of the

liabilities

matters,

of

Borrower

the

events

or

circumstances

exceed

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

its/his assets or that

above has happened, the opinion and/or

the

decision of the Bank shall be conclusive

Borrower

is

carrying on business
at a loss;
(o) the

and binding on the Borrower.

23. It is hereby expressly agreed

occurrence

of

that the Bank shall be at

event

or

liberty to assign the debt and

circumstance which

the benefit of these presents

is

to

and the security/documents

or

for

any

likely

prejudicial

to

the

advance

to

the

impairs or imperils

Industrial Development Bank

or

or

of

is

Refinance Corporation or any

likely to prejudice or

other Financial Institutions as

impair or imperil or

security for any refinance

depreciates

jeopardizes

or

India,

Agricultural

obtained by the Bank from

25. If the Borrower is more than

the said Development Bank,

one individual, all shall be

Refinance

or

bound hereby jointly and

Financial Institution or any

severally and if a firm or

other institution of like nature

members of a firm, such firm

in respect of the loan agreed

and all members from time to

to be advanced by the bank to

time thereof shall be bound

the

Corporation

Borrower

and

the

hereby jointly and severally

if

and

notwithstanding any changes

whenever required by the

in the constitution or type

Bank

the

thereof and whether such

Borrowers own expense do

firm consists of or be reduced

and execute and join in doing

to one individual at any time

and executing all such acts,

and that if the Borrower is

things, deeds, documents or

more than one individual at

assurances as the Bank may

any time any notice served on

require for the effectuation of

any one such individuals

such assignment.

shall

Borrower

shall,

to

do so,

at

be

deemed

to

be

24. The Bank shall be at liberty

deemed to be of service of

land the Borrower hereby

such notice on all of such

gives its consent to Bank) to

individuals.

furnish

to

the

said

26. The acceptance by the Bank

Bank,

of the security created and

Refinance Corporation and

effected by these presents

Financial Institution any such

shall not be deemed in any

information

manner

Development

or

report,

whatsoever

whether received by the Bank

supersede,

from

extinguish

the

otherwise
possession.

Borrower
in

the

or

Banks

vary,
or

to
limit,

otherwise

prejudice the other rights and

remedies available to the
Bank

and

no

delay

in

exercising or omission to

Borrower or may be series

exercise any right, power or

cost to the Borrower as

remedy accruing to the Bank

aforesaid and if sent by post,

upon any default on the part

such notice shall be deemed

of the Borrower to comply

to have been given at the time

with this Agreement or any

when it would be delivered in

other document shall impair

due course of post and in

any such right, power or

proving such notice when

remedy or shall be construed

given

to be a waiver thereof or any

sufficient to prove that the

acquiescence by the Bank in

envelope

such default; nor shall the

notice was posted and a

action of the Bank in respect

certificate

of

banks

any

default

of

the

by

post

shall

containing
signed
local

be
the

by

the

Manager,

Borrower as aforesaid or any

Accountant or any Officer

acquiescence by the Bank in

authorised in that behalf that

any such default affect or

the envelope was so posted

impair any right, power or

shall be conclusive.

remedy in respect of any such

reason of absence of the

default on the part of the

Borrower from the place

Borrower.

mentioned

27. Any notice by way of request

If by

above

or

otherwise any such notice to

or otherwise hereunder may

the

Borrower

be given by the Bank to the

given, then the same if

Borrower personally or may

inserted

be left at the address given

advertisement in a newspaper

above or at the then or last

circulating in the district

known place of business or

where the Borrower was last

residence of the Borrower in

known to reside or carry on

the Republic of India as the

business, shall be deemed to

case may be addressed to the

have been effectually given

once

cannot
as

be
an

and received on that day on

and from the date of this

which

Agreement

such

advertisement

appears.

first

accrue

written. It shall be in force

28. The securities shall operate as

till all the moneys due and

a residuary security for all

payable under this Agreement

moneys,

are fully paid.

indebtedness

and

liabilities due to the Borrower

to the Bank under any other
accounts.
29. The agreement shall become

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

binding on the Borrower on

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

Stamp

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

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.

demand or otherwise and to be secured

by machineries / goods / book debts to

(Rupees

be hypothecated to the Bank. IT IS

HEREBY AGREED by the borrowers

..

( the borrowers agreeing jointly and

only)

(hereinafter called enhanced credit

severally) with the Bank as follows:

facilities) to the borrowers repayable on

1. The expression the Borrowers
shall, when the borrower is
or her heirs, executors
and

assigns.
b) A

firm,

partners

c) a Company, include its

successors and assigns.
d) a joint and undivided
Hindu family or a joint

include
for

the

the
time

being of the firm, their

heirs,

and

assigns.

a) an individual, include his

administrators

administrators

executors

family firm, include all its

coparcener.
e) an Association, corporate,
or incorporate, include its
successors and assigns

and all members and their

the amount of all charges and

respective

heirs

expenses which the Bank may

executors, administrators

have paid or incurred in any way

and assigns.

n connection with the securities

2. That the machineries / goods /

or the sale or disposal thereof the

book debts (hereinafter called

term machineries / goods which

the Securities) described in

have already been fixed or lying

general terms in the Schedule

loose

hereto are hereby hypothecated

..

to the Bank as security and are to

be deemed to have been so

hypothecated as security to the

machineries / goods which are

Bank for all monies for the time

hereafter be fixed in or brought

being owing by the Borrowers to

into the said premises in addition

the Bank and for the balance due

to the machinery / machineries /

to the Bank at any time or

goods described in the schedule

ultimately under the said credit

or by way of substitution for and

facilities

credit

in lieu of any machineries /

facilities and for the payment of

goods which may from time to

all debts and liabilities mentioned

time be replaced or stored.

enhanced

in

the

premises

and

at

the

in the 16th clause hereafter. The

3. That the Bank shall from time to

expression the balance due to

time be at liberty to have the

the Bank in this and subsequent

Securities valued by an Appraiser

Clauses of this Agreement shall

appointed by the Bank and debit

be taken to include the principal

the Borrowers account with the

moneys from time to time due

fees

under the said credit facilities /

appraisement.

enhanced credit facilities and

valuation shall be conclusive and

also

binding on the borrowers.

all

interest

thereon

and

expenses

of

Any

such
such

calculated from day to day at the

4. That the Borrowers shall not

rate hereinafter mentioned and

during the continuance of this

Agreement pledge, mortgage sell

the said premises for the purpose

or otherwise charge or encumber

of inspecting the said goods /

any of the Securities for the time

machineries therein and shall,

being the subject or intended to

when required by the Bank, give

be the subject of this Agreement

full particulars to the bank of the

nor do not permit any act

hypothecated

whereby securities herein before

machineries.

goods

expressed to be given to the Bank

7. The Borrowers shall at all times

shall be not anywise prejudicially

during the continuance of this

affected.

Agreement and so long as any

5. The Borrowers hereby undertake

money shall remain due and

that they will not at any time so

owing to the Bank by virtue

long as any money remains due

hereof insure and keep insured

in respect of the said credit

the securities to the full extent of

facilities

credit

their value from to time against

facilities remove or cause or

fire risks in some insurance

permit to be removed all or any

Office or Offices approved by the

of the said securities from the

Bank and in the name of the

said premises without the consent

BANK

in writing of the Bank having

punctually

been obtained first and that

payable in respect thereof atleast

borrowers will not encumber or

one week before the same shall

do any other act by means of

have become due or payable and

which the Banks security over

shall handover the policy or

the said goods / machineries may

polices of insurance and the

be anywise impaired or affected.

receipts

enhances

and

shall
pay

duly
the

and

premia

for premia paid in

6. The Borrowers hereby empower

respect thereof to the Bank, and

the Bank or anyone from time to

borrower agree not to raise at any

time authorised by them in that

time any dispute as to the amount

behalf

previous

or the insurable interest of the

notice to the borrowers to enter

Bank. If default shall be made in

and

without

payment of such premia or in

/ enhanced credit facilities to take

keeping the securities so insured

possession of the machinery /

then and in such case it shall be

machineries or any of them and if

lawful for but not obligatory

necessary to lock the premises

upon the Bank

and / or to break open the

premia

and

to

to pay such
keep

such

securities so insured and the

premises with or without notice

to the borrowers.

expenses incurred by the Bank

11. Interest / Commission / Discount

shall be debited to the borrowers

will be charged as per the loan

account and shall be paid by the

documents, if any, executed / to

borrowers

be executed by the borrower

as

and

when

demanded by the Bank.

8. That all sums received under any

and / or as per the Bank Rules /

RBI guidelines.

such insurance as aforesaid shall

12. That on demand by the Bank

be applied in or towards the

borrower shall pay to the Bank

liquidation of the balance due to

the balance then due to the Bank

the Bank for time being and in

together with all further charges

the event of there being a surplus

and expenses (if any) to the date

the same shall be applied as

of payment provided that nothing

provided by the 16th clause

contained in this clause shall be

hereof.

deemed to prevent the Bank from

9. The borrowers shall pay all rents,

demanding

payment

of

the

rates taxes and other outgoings in

interest for the time being due

respect of the premises in which

without

the securities are fixed or lying.

demanding

10. The borrowers hereby empower

the Bank or any one from time to

balance

at

the

same

payment

due

to

of

the

time
the
Bank

exclusive of such interest.

time authorized by them for the

13. That if the borrowers fail or

purpose so long as any money

neglect to repay to the Bank on

remains due to the Bank in

demand the balance due to the

respect of the said credit facilities

Bank or in the event of the

borrower committing a breach or

any step be taken by any person,

making default in the observance

firm or Company in or towards

or performance of any of the

passing any resolution to wind up

terms of the Agreement or in the

the borrowers or if any such

event

of

the

borrowers

resolution be passed which-ever

committing

any

act

of

may first happen it shall be

insolvency, becoming or being

lawful for the Bank forthwith or

adjudicated bankrupt or insolvent

at

of

executing

time

thereafter

of

without

composition,

or

borrower (without prejudice to

Inspectorship or in the event of

the Banks right of suit against

any distress or execution being

the borrowers) either by public

levied or enforced upon or

auction or private contract and

against any of the property of the

subject to such conditions as the

borrowers

said

Bank shall think fit absolutely to

property shall or shall not be the

sell or otherwise dispose of all or

subject

any of the

whether

of

this

the

security

or

any

notice

to

and

Deed

Agreement,

any

any

the

Securities either

(whether the borrower are not a

together or in lots or separately

Joint Stock Company) in the

and to apply the net proceeds of

event of any person, firm or

such sale in or towards the

company taking any step towards

liquidation of the balance then

applying for or obtaining an

due to the Bank/

order for the appointment of a

Receiver

of

the

Borrowers

14. In the event of such sale or

realization

as

aforesaid,

the

property or any part thereof or (in

borrowers agree to accept the

the event of the borrowers being

accounts of the Bank for such

a Joint Stock company) if any

sale or realization signed by their

person firm or Company, shall

Manager/Accountant

apply for or obtain an order for

duly authorized officer of the

the winding up of the borrowers

Bank as sufficient proof of the

or if any such order is made or

amount realized by the Bank and

or

other

costs

charges

incurred

in

and
such

expenses

right of the Bank (which it is

sale

hereby expressly agreed that the

or

realisation.

Bank shall have) to recover from

15. That if the net sum realised by

the borrowers, the balance for the

such sale be insufficient to cover

time being remaining due from

the balance then due to the Bank,

the borrowers to the Bank under

the Bank shall be at liberty to

the said credit facilities/enhanced

apply

or

credit facilities notwithstanding

moneys in the hands of the Bank

that all or any of the Securities

standing to the credit of or

may not have been realized.

any

other

money

belonging to the borrowers or

16. That in the event of there being a

any one or more of them in or

surplus available of the net

towards payment of the balance

proceeds of such sale after

due to the Bank and in the event

payment in full of the balance

of there not being any such

due to the Bank it shall be lawful

money or moneys as aforesaid in

for the Bank to apply the said

the hands of the Bank or in the

surplus together with any other

event of such money or moneys

money or moneys belonging to

being still insufficient for the

the borrowers or any one or more

discharge in full of such balance

of them for the time being in the

the borrowers promise and agree

hands of the Banks in or under

forthwith on production to them

whatever accounts as far as the

of an account to be prepared and

same shall extend in or towards

signed as in the 14th clause hereof

payment or liquidation of any

provided, to pay any further

and all other moneys which shall

balance which may appear to be

be or shall have become due

due by the borrower thereon

from the borrowers or any one or

provided, always that nothing

more of them whether sole or

herein

be

jointly with any other person or

deemed to negate, qualify or

persons, firm or company to the

otherwise prejudicially affect the

Bank

contained:

shall

by

way

of

loans,

discounted bills, letter of credit,

aforesaid shall be paid to them by

guarantees, charges or any other

the Bank when they shall or may

demands legal or equitable which

direct.

the bank may have against the

18. That the borrowers agree to

borrowers any one or more of

accept as conclusive proof of the

them of which the law of set-off

correctness of any sum claimed

or mutual credit would in any

to be due from them to the Bank

case admit and whether the

under this Agreement a statement

borrowers or any one or more of

of account made out from the

them

be

Books of the Bank and signed by

adjudicated bankrupt or insolvent

the Accountant or other duly

or be in liquidation or otherwise

authorized officer of the Banbk

and interest thereon from the date

without the production of any

on which any and all advance or

other voucher, document or paper

advances in respect thereof shall

etc.

shall

become

or

have been made at the rate of

19. That this Agreement is to operate

respective rates at which the

as security for the balance from

same

time to time due to the bank and

shall

have

been

so

advanced.

also for the ultimate balance to

17. That any surplus of the net

become due under the said credit

process of any such sale after

facilities/enhanced

payment of all principal and

facilities and any account relating

interest and other moneys due by

to

the borrowers or any one or more

facilities/enhanced

of them to the Bank for in respect

facilities is not to be considered

of

credit

to be closed or the purposes of

credit

security and the security is not to

the

said

facilities/enhanced

the

said

credit
credit

facilities or in anywise relating

be

thereto and of all other moneys

reason of any such account being

due from them to the Bank on

brought to credit at any time or

any

from time to time.

account

whatsoever

as

considered

credit

exhausted

by

20. That this agreement is not to

its board(s) to be displayed in the

prejudice the rights or remedies

aforesaid manner or paint the

of

inscription.

the

Bank

against

the

borrowers and other securities

23. That on any default of the

furnished/to be furnished by

borrowers in payment on demand

them to the Bank irrespective and

of any money hereby secured or

independent of this Agreement.

the

performance

of

any

21. That the Bank shall not be in any

obligation to the Bank under this

way liable or responsible for any

or any other security or the

damage or depreciation which

occurrence of any circumstance

the goods/machineries for the

in the opinion of the Bank

time being hypothecated to the

prejudicing or endangering this

Bank and forming part of the

or any other security, the Bank

Securities the subject of this

shall be entitled at the borowers

Agreement or any part thereof

risk and expenses as Attorney for

may suffer or sustain on any

and in the name of the Borrowers

account whatsoever while the

or otherwise (The borrowers

same shall at any time come into

hereby irrevocably appointing

possession of the Bank.

the bank to be its Attorney) to

22. Borrowers shall also display

take possession and/or appoint

board(s) conspicuously at all

receivers of the said debts under

time

the

this security give notices and

are

demands to borrowers and third

stating

parties liable that for and to

goods

demand, sue for recover, receive

machineries in the premises are

and give receipts and discharges

under hypothecation to the Bank,

for the same and sell or realise

and or in case of machinery, have

and discharges for the same and

an inscription to that effect

sell or realise by public auction

painted on the machines and in

or private contract or otherwise

default the Bank may itself cause

dispose of all or any part of the

in

place(s)

where

securities
kept/stored/available
distinctly

that

the

said debts andenforce, settle,

remedies

compromise submit to arbitration

present

or deal in any manner with any

guarantee, obligation or decree

of the said debts or claims under

for any indebtedness or liability

his security without being bound

of the borrowers to the Bank.

to exercise any of these powers

That the borrowers will not

or liable for any loss in the

receive, compound or realise any

exercise thereof the borrowers

of the said debts nor do anything

undertaking

and

hereby the recovery of the same

deliver to the Bank all relative

may be impeded, delayed or

documents

and

prevented without the consent of

agreeing to accept the Bank

the Bank and will keep proper

accounts

from

books of account of its business

realisation under this security and

and will at any time when

and to pay any shortfall or

required produce such books for

deficiency thereby shown. The

the inspection of the Bank and its

borrowers agree to execute on

officers and agents and allow it

demand by the Bank such further

or them access thereto and to

documents as may be required by

make copies of or extract from

the Bank to vest the said debts or

the same.

to

transfer

and
or

papers
receipts

in
or

respect of any
future

security,

any of them in the Bank to render

24. That any notice required to be

the same readily realisable or

served hereunder shall be in

transferable by the Bank at any

writing and shall be deemed to

time.

The borrowers hereby

sufficiently served if addressed to

declare that the said debts shall

the borrowers at their address

always be their absolute property

being registered (in the Bank or

at their sole disposal and free

in the event of no such address

from

or

being registered) at their last

encumbrance and declares that

known place of residence or

nothing herein shall operate to

business and left at such address

prejudice the Banks rights or

or place or forwarded to them by

any

prior

charge

post at the address or place

28. This Letter of Hypothecation is

aforesaid. A notice sent by post

Supplemental to the Letter of

shall be deemed to have been

Hypothecation

served at the time when in due

dated..execut

course of post it would be

ed

delivered at the address to which

aggregating

it is sent.

Rs

25. That the Securities are within the

for

the

credit

facilities

absolute disposition and control

.which has been now

of the borrowers and are free

enhanced

from any prior charge in favour

Rs.

of any other creditor.

Applicable in case of treating this

26. That in case the borrowers shall

Letter

of

to

Hypothecation

as

be a firm or members of a firm

Supplemental.

no change whatsoever in the

IN

constitution of such firm during

borrowers have hereunto set their

the

hands

continuance

Agreement

shall

of

this

impair

or

WITNESS

whereof

the
this

.day

discharge the liability of the

.in the Christian year

borrowers of any one or more of

Two T housand

them hereunder.
27. The borrowers hereby agree that
the security hereby created would

****In case of any discrepancy

stand hypothecated for other

between the English version and

amounts due by the borrowers to

translated

the Bank under any other account

language, English version shall

eventhough the ultimate balance

prevail

under this Agreement is fully

repaid.
F 110 (E)

Signature

version

in

other

Indian Overseas Bank

Stamp

SUPPLEMENTAL 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.
(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

Stamp

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 ..

..

..

..

......

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

Stamp

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

Indian Overseas Bank

Stamp

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

LETTER OF HYPOTHECATION

(Agricultural Advances)
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
Banks 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
over

drawings
drawing

power/sanctioned
limit.

4.

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/nonacceptance
demand/usance bills of
exchange on presentation/
due dates.

(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 continuing

security 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 declares

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 other
accessories 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 no
alteration 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 Bank
shall not be considered as liable
for any default or non-supply or
defective 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
Borrowers 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
coobligant/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.
and

The Borrower/s hereby agree/s

and in
aforesaid.

b)

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.
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

manner

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.

undertake/s the following:

a)

the

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 Borrowers 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
Banks 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.

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
borrowers 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.

Nothing herein contained shall

operate or be deemed to negative,
quality or otherwise prejudicially
affect any of the Banks 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

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)

d)

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.

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.

22.

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
Borrowers cost and
responsibility and to
make a demand on him/it
only in the event of nonrecovery 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

23.
In case the loan is eligible for
Guarantee cover under Small Loans
Guarantee Scheme 1971/Small Loans

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.

(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
mentioned above.

the

date

Place :
Date :

Borrower(s)
The contents of this deed and the Banks
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.
Value

Nature of Livestock(Cow, Buffaloes, etc.)

Breed/identification Mark Age

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 Manager
Indian 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
Description of the
(Year) Description No./
No.
Goods/machinery
HP
Chassis No.

Location
Installation

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.

Stamp

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
Bankers 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

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 principals
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
representatives
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.
Place :
Date

F (lll)

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.

Guarantee for cash credits etc.

To
Indian Overseas Bank
..
Gentlemen,
I/we in consideration of

1.

your agreeing at my our request

to give

of (hereinafter referred to
as

The

principal)

time for

repayment of his/their dues

the bank upto

to

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

overdraw his/their

to

account by

granting to him/them an advance

by

way of cash

otherwise,

credit or

/We

the

undersigned
..
jointly and severally
the

payment

upto

guarantee
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

charges thereon due on

due

the

in respect of the said

said

account

and

advances from the original or first

whether or not from time to

of the date or dates of the

time

advances until repaid at the rate

owing on the said account

charged by you from the time or

or the same be from time

such

to time brought to credit

advances

with

monthly

/quarterly /half-yearly rests and

3.

there

be

nothing

And I/We hereby consent

your usual Bankers charges)

and authorise and declare

which are now or shall at any

that, you may at any time

time

the

or times and at all times

continuance of this guarantee be

grant or allow time or

due from the principal to you

indulgence

to

or

either for loans or advances in

compound

with

the

respect of which the principal

principal or me/us without

shall or may be solely or jointly

affecting

with others liable to you and of all

and that all compositions

costs,

other

and payments received by

expenses which you may incur in

you from the principal or

enforcing on obtaining payment

from any other person or

of all such.

persons firm or company

2.

hereafter

during

charges

And

and

I/We

this

guarantee

expressly

or his or the estate or

declare that this guarantee

estates shall be regarded

shall

for

be

continuing

all

purposes

as

guarantee to you for any

payment in gross and you

amount from time to time

shall be entitled to prove

not exceeding as aforesaid

against the estate of the

the

principal

sum

of

should

the

Rs

principal become bankrupt

...

or insolvent in respect of

together with interest and

the whole of the principals

indebtedness

to

you

5.

without any right on the

that this guarantee shall

part of me/us on any or

not be affected by my

either of us or my/our

death/our death but shall

representatives

remain in full force and

or

any

representatives of any or

effect until

either of us to stand in

me/us and shall continue

your place in respect of or

to

to claim the benefit of any

notwithstanding

such

or

changes which may from

payments or any security

time to time take place in

held by you until you shall

the

have received

constitution of my/our firm

compositions

the full

cancelled by

be

or

against

constitution

the

principal

guarantee and

that this

guarantee shall apply

binding
any

partners

amount of all your claim

which are covered by this

4.

And I/we further declare

in

the

or

partners
of

or
the

principal.
6.

And I / we further agree

to

that

any entries which

and secure any ultimated

may

be in your Banking

balance

Books kept by you and

which

shall

remain due to you within

made

the limit aforesaid.

course

And

business may be adduced

it

is

expressly

in

the
of

you

ordinary
Banking

provided and declared that

by

this guarantee shall not be

conclusive

affected by your taking or

against

varying or giving up any

either of us and my /our or

securities held by you, or

any

by any variation in the rate

representatives

of interest or margin or

representative,

other terms of sanction.

various

or

and

shall

be

evidence

me/us or any or
either

of

our
or

of

the

transactions

therein contained and of

7.

And it further agreed and

the amounts from time to

declared

time

hereby appearing

guarantee

due from the principal to

continuing

you

be

irrespective of any sum or

disputed or questioned by

sums may be paid into the

me/us or any or either of

account of the principal at

us and my/our or any or

any

either

continuance

and

shall

not

of

our

representatives

or

that

this

shall

be

guarantee

time

during

guarantee

the

of
and

the
shall

representative.

remain in force until then

And

due to be subject to this

I/we

further agree

that the amount hereby

guarantee and

guaranteed shall be due

thereby.

and payable

to you on

demand after

10.

And

I/we

secured
hereby

requiring

expressly declare that this

payment of the same shall

guarantee and the powers

have been delivered or

and

sent through the post by

contained are in addition

registered letter addressed

to and not by way of

to

limitation of or substitution

me/us

at

my/our

representatives

8.

9.

last

provisions

for any

herein

former or other

known place / places of

guarantees or guarantee

abode

heretofore given to you by

or

business

in

me/us

The guarantee shall bind

with some other person or

my/our

alone) and now existing

heirs,

representative
executors

(whether

jointly

and

uncancelled and that this

administrators and shall be

guarantee is not intended

enforceable by you and

to and shall not revoke or

your assigns.

11.

limit such other guarantee

or

or guarantees.

and shall be

It

is

also

that

any

Officer

conclusive

admission

or

me/us

acknowledgement

in

further

writing

by the principal

of the Bank,
binding and
as

also

against

and

agree

I/we

that

in

making

an

debtor of the amount of

acknowledgement

or

indebtedness

making

he

of

the

a payment

principal debtor in relation

shall be treated as my/our

to the subject matter of

duly authorised agent for

this guarantee

purpose

or any

judgment or award which

of

Indian

Limitation Act of 1963.

may be obtained by you

against

the

principal

debtor shall be binding on

Place.
Date.

me/us I /We accept the

correctness
statement

of
of

any

account

served

on the principal

debtor

which

is

duly

certified by any Manager

F. III.A

Irrevocable Undertaking to Guarantee

--------------------------------------------------(should be stamped as an agreement)

Stamp

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 / companys 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 :
Date :

Signature
(Director of Ltd)

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 ..

Revenue
stamp

Date ..
F237A

Signature

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

Debit

of Credit

balance on

Facilities of Rs.

As
Date

Whether

Rate of

Compounding

If interest is

Interest is

Interest

at quarterly/

not applied

included

applied

Half yearly/

due to

upto date

lastly

yearly

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
Stamp

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

During preparation for shipment and

until
goods

placed on Board, the said

will

be

stored

in

Invoice value

your account and under lien to your

Bank and as Trustee,
Bailee therefore, and to

Agent and
deal with

them as the property of your Bank

. pending

shipment of the

and on shipment of the said goods,

said goods. I/we desire to have an

to hand over to you duly endorsed

advance of .. from you in

Bills of Lading for

open account and in consideration

adjustment of the amount advanced

of such advance. I /we agree and

by the realised proceeds of drafts

undertake while having

control of

sold against the said shipment. And

the said goods to hold the same on

I/we undertake not to deal with the

the

same for

goods in any other manner and that

said goods in such manner and for

the

goods shall be insured with

such price as your Bank shall think

on your behalf

and apply at your discretion the net

and in trust for you.

proceeds

of

satisfaction
I /we
that

further

undertake

notwithstanding

anything

hereinbefore

owing by

towards

or

all the

me/us to your

Bank. And I/we further agree that

your Bank shall have power to sell

your Bank at any time

and apply the net sale proceeds of

before shipment deliver possession

the said goods in like manner at

of the said goods to your Bank and

any time after receipt by your Bank

I/we authorise

of the relative Bills of Lading.

purpose

of

I/we

of any

in

will

demand

contained

amount

sale

your Bank for the

taking

possession

thereof to entry my/our godown or

other place where

I /we further declare that

the goods may

we are not indebted to anyone else

and I /we agree that your Bank may

in respect of the goods and that the

at any time receiving possession

same

thereof

charges demands whatsoever save

and without

notice to the

further authority from me/us sell the

are free from

any claim,

the security hereby created.

Yours faithfully,

Place :
Date :..
..
F251

ADVANCES AGAINST GOODS AWAITING SHIPMENT

Stamp

(PACKING CREDIT)
To
Indian Overseas Bank

civil commotion, I/we holding

such

insurance

and

all

moneys receivable there from

1. In consideration
making

of your

advance to me/ us

in trust for you and handing

you forthwith all

amounts

from time to time by way of

received from the insurance.

Cash Credit /Demand Loan

I/we further agree that all the

upto the extent of Rs. ..

said

(Rupees

purchased by means of such

..

goods

as

shall

be

only). I/we hereby agree that

advances and

delivered by

all such advances taken by

me

person

me/us from you in the said

processing and finishing shall

Cash

be held by such processors

Credit/Demand

Loan

to

any

for

Account shall be applied by

in trust for you and

me/ us solely in the purchase

undertake to proceed no lien

of (hereinafter called the said

letter from such processor to

goods)

that effect

or as

required

by

advances

and

until

such

have been repaid

to you with

interest, costs,

any of the

by proceeds of the

officials of the

exchange

sold to you or in

may be

the

bank

including right of access for

charges and expenses either

bills of

I shall

purpose of

authorised
bank for the

inspecting

and

cash, all the said goods in

taking

account

of the said

my godowns and shall be held

goods, and that

it shall be

by me/us

kept fully insured under terms

as agent

and in

trust for you, and kept

insured

by me/us

fully

against

loss by fire, strike, rots and

referred as above.
2. I/we agree that immediately
upon shipment of the

said

goods

or any part thereof

I/we

shall hand you the

shipping

documents

endorsed including
lading

4. Interest

shall be calculated

and charged as the daily

duly

balance in the Banks favour

bill or

due upon the said account

invoice and policy or

until

the

same

is

fully

policies of insurance against

liquidated and shall be paid by

marine and war risks.

the borrowers

3. I /we agree that the proceeds

of the bills

negotiated

by

as and when

demanded by the Bank.

5. The

intention

of

this

you against such shipments

agreement is that you are to

shall

be entitled, to the said goods

be held by you in

repayment
named
with

of the above

advances

together

interest at the rate of

as security for the advance

which you shall have granted
to me/us. And I /we

hereby

. percent over

undertake to deliver them to

below the prime lending rate

you at any time in order to

of the bank with a minimum

bring

of percent

per

possession, and you shall be

annum and I/we further agree

authorised to enter my/our

that the shipment

premises and godowns at

made

within

will be

the stipulated

anytime

them

into

your

in order to take

period from date of availing

possession of the same to

the advance from time to time

which I /we

and if I/we fail to export the

such assistance as you may

goods within the said time,

require from me/us, and I/we

I/we shall pay the advances

authorise you to treat all such

together with interest

at the

goods as shall have come into

rate of . percent over

your possession and as the

/ below prime lending rate of

case my be the documents

the bank.

of

shall give you

title thereof, which I/ we

shall have handed to you as

if you had all my/our rights to

undertake

to

have

no

them as absolute owners or

advance from

any

other

otherwise

bank on the same or any

and in case I/we

fail to fulfill

and of my/our

obligations to

other

goods

in

my/our

you to set all

godown in which goods under

or any part of goods forming

lien to you is stored so long

the collateral security for the

as I /we am /are indebted to

repayment of the advance

you.

together with interest and cost

at such

time and

7. This agreement is to operate

in such

as continuing security for the

manner as you may deem fit

balance from time due to the

and without notice to me/us

bank and also for the ultimate

and after

balance to

deducting usual

commissions,

charges

expenses

apply the net

to

proceeds in payment

and

become due on

the said account and the said

account

is

not

to

be

of the

considered to closed for the

advance made to me/us by

purpose of security and the

you cum annexis the balance

security

if any to be placed at your

considered

option against any other of

reason of the said

the debts to you whether due

being brought to credit at any

or not. Your right under these

time or from time to time or of

documents are additional to

its being drawn upon to the

and shall not derogate from

full extent of the sum of

your right under all security

Rs

documents previously signed

(Rupees only) if

by us.

afterwards

6. It is understood, that the keys

is not

to

exhausted

be
by

account

reopened

by

payment to credit.

of the godown remain in

8. And I/We further agree that

my/our possession, and I/we,

the goods shall also be a

likewise further agree and

security

to

you

for

the

payment on demand and all

of

other moneys which are now

accepted, paid or discounted ,

or shall at any time be due to

interest, commission or any

you from me/us either alone

other usual or lawful charges

or

or

jointly

with

any

other

bills,

on

drafts

any

or

other

notes

account

person or persons either or

whatsoever, together with all

current account or for money

costs and expenses.

advanced or paid or in respect

Place :
Date :
F 251-B

Signature of the borrower(s)

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 .)
Borrowers Name :
Description of

Quantity

goods

Mark and

Where

Number

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 : ..
F.251 D (010761)

(Signature & full address of Shippers)

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
Payable
Usance
Rate
Counter
Delivery
Currency Amount
DA/DP
Currency
Period

Purpose:

3. This Contract has been based

*Export of Goods

on the

* Other purposes (Specify).

* Commercial Contract

*Deferred Payment Exports

*Documentary

*Export of services

Credit as detailed below

1. This Contract is subject to

Exchange

Control

provisions

contract is also subject to the

Credit.

Foreign

Exchange

Dealers Association of India.

2.

This

assignable.

Contract

is

transaction)

*Documentary

A) Name & Address of the

Overseas Buyer/Remitter.

not

of

Particulars of * Commercial
Contract

of

details

from the time to time. This

rules

(Specify

underlying

stipulated by Reserve Bank of

India and Amendments issued

Others

b) Number & Date

c) Commodity/Purpose

d) Exims Code (as specified in the

a) In the case of Export of goods the

Exim Policy)

last date of the delivery period

e) Quantity

indicated in this Contract should not

f) Value

fall beyond six months from date of

g)

Expected

date

of

shipment viz., the maturity of the

shipment/Remittance.

forward cover should not exceed the

h. Nature of the Bill to be drawn :

maturity

Sight / Usance DA/DP

transaction.

i) Expected date of submission of bill

b) In the case of deferred payment

Realisation/Receipt of Remittance.

exports the initial delivery period may

If this contract has been booked on

be fixed for the first and subsequent

the basis tele-transmission (Cable

instalments. However this cover will

/Telex/through

be applicable and available only

Overseas

Communication

the

underlying

this

those instalments for which the

your

delivery period falls within six months

undertaking that the Commercial

and for all instalments falling beyond

Contract /Documentary credit and

the six months period, the cover will

others the case may be will be

be on six months roll over basis each

submitted to us within a period of

at the ongoing rates as per extant

one month from the date of booking

FEDAI

this contract but in any case before

Regulations.

delivery the document.

c) In the case export of service , the

4. This contract is booked subject to

last date of delivery should not fall

your

beyond

contract

is

Services),

of

subject

confirmation

to

that

the

Rules/

Exchange

period

Control

permitted

by

commodity(ies) to be Exported is/

Exchange Control regulations.

are not in the Negative List of the

D) In all other cases, the delivery

EXIM

not

should correspond with the period

disallowed as per Public Notices

permitted by the Exchange Control

issued by DGFT./

Regulations.

5. Delivery Period:

6. This Contract is firm and should

Policy

in

force

or

therefore

be

taken

up

on

the

respective

maturity

Substitution

of

dates.

the

underlying

transactions may be permitted as

thereof

furnishing

suitable

documentary evidence.
9. This

contract

is

subject

to

Exchange

automatic cancellation on the 15 th

Control Regulations. However, if the

day after the expiry date in the

contract had been booked against

absence of instructions in writing

clubbing of different orders you are

from you on or before the expiry

permitted to deliver the amount

of

under this contract irrespective of the

extended period for roll-over or

particular clubbed order

cancellation of the contract of the

allowed

under

extant

against

the

delivery

period

(or

which the shipment had been made.

unutilised portion thereof as the

7. This Contract is subject to your

case may be). If such 15th day

undertaking that the Bills covered

falls on a Saturday or a holiday

under this Contract will not be

the contract shall be cancelled on

submitted to us (or any other

the next succeeding working day.

Authorised Dealer under

you will also submit to us suitable

other

contract)

ready

documentary

While

submitting

necessitating

bills/offering delivery

under this

cancellation wherever required.

contract you will

draw our

10. The charges for cancellation,

attention to this contract number

extension or early delivery of the

and date.

contract are governed by the

transaction.

as

any

evidence
such

automatic

8. If for any genuine reason you

terms and conditions as set out

are unable to take up the contract

in FEDAI Rules. The charges are

or part thereof within the delivery

payable by you without demur on

period you will instruct us before

demand by us and we are

the expiry of the delivery period

irrevocably authorised to recover

or extended delivery period for

the eligible charges by debiting

roll-over

your account.

/cancellation

of

the

contract of the unutilised portion

11. Acceptance of delivery of bills

/documents

drawn

for

difference tenor will be at the

exchange

discretion of the bank subject to

replenishment as well as required

recovery of swap cost if any and

additional cash margin and/or

other charges.

additional security as advised by

12. In case the negotiation of the

documents

under

LC

are

rates.

Such

the bank has to be provided

within the stipulated time frame.

restricted to another bank, the

Failure/non

charges levied by the other bank

stipulations by you will entitle the

to remit the foreign currency

bank at its option to rescind the

funds

contract. You will be solely liable

to

our

banks

nostro

account shall be for your account.

for

adherence

whatever

the

of

costs

the

and

13. The contract will be administered

expenses that the bank may have

by instructions from our Foreign

to incur on account of such

Exchange Department, Central

cancellation of the contract. The

Office,

bank

Chennai

or

Foreign

will

recover

the

entire

Exchange Department , Mumbai

SWAP and other costs by debit to

as the case may be.

your account even if it results in

14. The contract is subject to your

undertaking

that the underlying

OVERDRAFT or EXCESS

are required to make good this

exposure has not been booking

amount

with any other Authorised Dealer.

applicable

15. This contract is booked subject to

your

providing

us

with

You

with

interest
to

as

overdraft

immediately. Failure to do so, will

the

entail recalling of all the credit

required cash margin and/or such

facilities granted to you, at the

other security as stipulated by the

discretion/option of the bank.

sanctioning authority, Further it

will

also be obligatory on your

16. The terms and conditions of

International

Swap

Dealers

part to replenish the margin as

Association

(ISDA)

Master

and when the margin gets eroded

Agreement wherever executed

below the stipulated level owing

shall always from or be deemed

to any adverse movement of

to form part and parcel of the

forward contract and in the event

contract

of any inconsistencies between

Agreement shall prevail.

the

ISDA

and

the

,the

ISDA

Master

forward

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
Date

Balance

Bill NO.
Foreign

INR

currency

Details of charges collected / amount paid to the party:

Foreign
currency

INR

FEDAI RULE 7
EXCHANGE CONTRACT
(Relevant Sections)
General
a. Contract amount :

All Contracts shall be understood

Exchange contracts shall be for

to read To be delivered or paid for at

definite amount i.e. there shall be

the Bank and at the named place.

no provision

for

excess or

shortage.

II Business with merchant :

b. Option period of delivery:

Unless date of delivery is fixed and

a. Contract amounts.
Any

excess

amount

over

the

indicated in the contract the option

amount stated in a contract, or

period shall be specified at the

shortfall therein shall be bought or

discretion of the customer subject

sold as the case may be, at the

to the conditions that such option

Banks current ready or cash rate of

period of delivery shall not exceed

the day and the amount of the

beyond one month. For example:

excess in the contract shall be

15th January to 14th February

cancelled as per Rule 8 (iv). When a

30th January to 28 (29th ) February

Bill contract mentions more than one

31st March to 30th April

rate for bill of different deliveries the

Contracts / Permitting

option of

delivery must state the first and last

contract must state the amount and

delivery against each such rate.

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

b. Option of delivery
In all forward merchant contracts,
the merchant whether a buyer or a

the time of transaction.

seller will have the option of delivery.

c. Place of delivery :

Ready

or

Cash

Merchant

Contract shall be deliverable on the

same day.

C. Option or Usance
The

foreign currency

merchant purchase contract

should

state

e. Rounding of Rupee equivalent of

/documents. Acceptance of delivery

the Foreign Currency amounts at

of bills / documents drawn for a

the

different

Settlement

will

of

be

the

foreign currencies.

bills

tenor

tenor

or 100 units of

at

the

agreed

Merchant
of

all

rate

Merchant

discretion of the bank.

transactions shall be effected on

d. Merchant quotations:

the principle of rounding off the

The

Exchange

rate

shall

be

quoted in direct terms, i.e. so many

Rupees and paise for 1 unit of

rupee amounts

to the nearest

whole rupee i.e. without paise.

FEDAI RULE 8
EARLY DELIVERY, EXTENSION & CANCELLATION OF
FORWARD EXCHANGE CONTRACTS.
1. General
a. At the request of customer, unless

where extension is sought by a

stated to the contrary in the

customer for are rolled over) shall

provision of the Exchange Control

be cancelled (at TT Selling or Buying

Manual, it is optional for a bank to

rate as on the date of cancellation)

and re-booked simultaneously only

i.
ii.
b.

It

Accept or give early

at current rate of

delivery:

difference between the contracted

Extend the contract

rate and the rate

is

the

responsibility

the

contract is

exchange.
at which

The
the

cancelled should be

customer to effect delivery or to

recovered

request

case may be on or

customers at the time of extension.

maturity date of the

Such request for extension should

before

the
the

from/paid

to

the

contract.

be made on or before the maturity

c.

date of the contract.

Authorised Dealers shall levy a

minimum charge of Rs.250/- for

every request from a customer for
every

delivery,

extension

or

Iv Cancellation :
a) In the case of cancellation of
a contract at the request of

cancellation of a contract.

the

ii. EARLY DELIVERY :

Authorised

If a Bank accepts or gives early

customer,
Dealer

the
shall

recovery/pay as the case

delivery, the bank shall recover or

may

pay swap difference, if any.

between the contracted rate

and

iii. Extension :
Forward

Exchange

be

the

difference

the rate at which the

cancellation is effected.
contract/s

either short or long term contracts

b) Rate at which cancellation

is to be effected.

i. Purchase contracts
cancelled at the

shall be

impossible of performance

contracting

for

whatever

reason,

banks TT Selling rate current on

including

Government

the date of cancellation.

prohibitory

order

the

exchange

contract

be

ii. Sale

contracts

cancelled

at the

shall

be

contracting

deemed

to have become

banks TT Buying rate current

void

on the date of cancellation.

forthwith apply to the bank for

iii.

where the contract

is

customer

cancellation

shall

subject

to

cancelled before maturity,

provisions of paras iv (a) (b)

the

and (c) above.

appropriate forward

TT rate shall be applied.

c)

and

Exchange

difference

exceeding

Rs.100/-

f)

not

i.

In

the

absence

instruction

shall

from

the

customer vide para i (b)

be ignored by the contracting

contracts

bank.

matured shall on the

which

have
the

15th day of the date of

d) In case, a purchase contract

becomes overdue, due

of

to

maturity

be

automatically

the banks inability to accept

cancelled. In case the 15th

the

day falls on a

bills

tendered

as

Saturday or

approved bill and exporter

holiday, the contract will be

takes up the

cancelled

tendering

contract

other

by

approved

bills or cancels the contract

on

the

next

succeeding working day.

ii)

Swap

cost, if any, shall be

within a reasonable time,

recovered from the customer

such cancellation shall be

under advice to him.

governed by the above.

e) Notwithstanding the fact that
the

exchange

contract

iii)

In

case

ultimately

the

contract

cancelled,

customer will not be

is
the

entitled

between the customer and

to the exchange difference, if

the

any,

bank

becomes

in his favour, since the

contact

is

cancelled

on

Swap cost shall be recovered

account of his default.

iv)

In

case

of

subsequent
cancellation the
current rate

from
delivery

of whether an actual swap is

to automatic

made or not. Such recoveries

appropriate

should be made either back

prevailling on

such delivery date

Swap Cost :

a)

Swap cost to

ended or front

shall be

applied.
v)

customers irrespective

ended in the

discretion of Banks.
b)

Swap gain :
Payment of swap gain to the

be recovered

from customers:
In all cases of early delivery
of purchase or sale contracts,

customer will
made at

the

Swap period.

normally be
end of the

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:

stipulated by Reserved Bank

Import of Goods

of India and

Other purposes (Specify).

issued from time to time. This

Cross currency forward cover

for imports

Cross currency forward cover

for any

Other purpose (Specify)...

1. This

Contract is subject to

Exchange Control provisions

Amendments

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.

a)

Date

Name
Address of the

&

Overseas

Seller Supplier / Beneficiary of

Expiry Date :

Remittance.
b)

In the name of: Under transfer

Number

&

Date
c)

Letter of Authority / Approval

Commodity

Purpose
d)

Approval by:
Approval Ref.

Exim Code (as

specified in the Exim Policy)

Date:
e)

Quantity

This contact is booked subject to

f)

Value

your

g)

Expected date

confirmation

that

the

of shipment /Remittance

commodity (ies) to be imported is

are not in the Negative list of the
Exim

Policy

in

force

or

h)

Bill to be drawn:

not

Sight /

Usance DA/ DP

disallowed as per Public Notices

5.

issued by DGFT.

Nature of the

Delivery Period:
a) In the case of Import of

4. This Contract is based on the

goods the last date of the

Commercial Contract *

delivery period indicated in

Documentary Credit as

this Contract should not fall

detailed below.

beyond six months from date

Others (Specify details

of shipment viz. the maturity

of

of the forward cover should

underlying

transaction)...........

not exceed the

Particular

the underlying transaction.

Commercial

of
Contract

Documentary Credit.

b) In the case

maturity of
of deferred

payment imports the

initial

delivery period may be fixed

for the first and subsequent

instalments.

Any

delivery

period beyond six months for

attention to this contract number

and date.

one or more instalments will

8. If for any genuine reason you are

be subject to availability of

unable to take up the contract or

cover. For the rest of the

part thereof

instalments contract may be

period you will instruct us before

rolled over at the on going

the expiry of delivery period or

rates as per extant

FEDAI

extended delivery period for roll-

Rules/Exchange

Control

over/cancellation of the contract

Regulations.
c) In all
delivery

within the delivery

of the unutilised portion thereof

other cases the

furnishing suitable documentary

period

evidence.

should

correspond with the period

permitted by

the Exchange

9. This

Contract is subject

automatic cancellation

to

on the

15th day after the expiry date in

Control Regulations.
6. This Contract is firm and should

the

absence of instructions in

therefore be taken up on the

writing from you on or before the

respective

dates.

expiry of the delivery period (or

underlying

extended period for roll-over or

maturity

Substitution of the
transactions may be
as

allowed

permitted

under

extant

Exchange Control Regulations.

7. This

Contract is subject to your

cancellation of the

contract or

unutilised portion thereof). If such

15th day falls on a Saturday or a
holiday the contract shall be

undertaking that the Bills covered

cancelled

under this Contract will not be

succeeding working day. You will

retired through us (or any other

also submit to us the suitable

Authorised Dealer under

any

documentary

ready

necessitating

other

contract)

transaction.

as

on

the

next

evidence
such

automatic

While

submitting

cancellation wherever required.

bills/taking delivery

under this

10.

contract

draw

forward

you

will

our

Wherever

cancellation

contracts

are

of
not

permitted

as

per

extant

Central

Office,

Regulations, the contract has to

Chennai or Foreign Exchange

be fulfilled or permission from

Department, Mumbai as the case

RBI is

may be.

to be

obtained for

cancellation of part/full value of

the contract.

15. This Contract is subject to your

undertaking that the underlying

11. Acceptance

of Bills/Documents

exposure has not been booked

drawn for a different tenor will be

with any other Authorised Dealer.

at the discretion
subject to

of the bank

recovery

of SWAP

cost and other charges if any.

12. The charges

16. This contract is being booked

subject to your providing us with
the required cash margin and/or

for cancellation,

such

other

security,

stipulated

contract are

authority. Further it will also be

governed by the

by

sanctioning

terms and conditions as set out in

obligatory

FEDAI Rules. The

replenish the margin as and

charges are

on

the

as

extension or early delivery of the

your

part

to

payable by you without demur on

when the margin

demand by us and we are

below the stipulated level owing

irrevocably authorised to recover

to any adverse

the eligible charges by debiting

exchange

your account.

replenishment

13. Should the Bills under the Letter

14.

Department

gets eroded

movement
rates.
as

of

Such
well

as

required additional cash margin

of credit be refused /dishonored

and / or additional security

on account of discrepancies, the

advised by the bank, has to be

cancellation

provided within

the

contract shall be for your account

time

Failure

and will be recovered to the debit

adherence of the stipulation by

of your account.

you will entitled the bank at its

This

charges

contract

of

will

this

be

frame.

as

stipulated
/non-

option, to rescind the contract.

administered by instruction from

You

our

whatever the costs and expenses

Foreign

Exchange

will be solely liable for

that the Bank may have to incur

facilities

on account of such cancellation

discretion / option of the bank.

of the contract. The Bank will

recover

the entire

SWAP and

other costs by debit

account even if it

granted to you, at the

17. The terms and

conditions of

International

to your

Association

results in

Agreement

Swap
(ISDA)

Dealer
Master

wherever executed

OVERDRAFT or EXCESS. You

shall always form or be deemed

are required to make good this

to form part and parcel of the

amount

as

forward contract and in the event

overdraft

of any inconsistencies between

with

applicable

interest
to

immediately. Failure to do so, will

the

ISDA and the forward

entail recalling of all the credit

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
Date

Bill NO.

Balance

______________________________________
Foreign

INR

currency

Details of charges collected /amount paid to the party :

Foreign
currency

INR

FEDAI RULE 7
EXCHANGE CONTRACT

(Relevant Sections)
1. General
a. Contract amounts:

contract being

Exchange contracts shall be for

definite amount i.e. there shall
be no

provision for

computed from

spot value date at

the time of

transaction.

excess or

shortage.

c. Place of delivery :
All Contracts shall be understood

b. Option period of delivery :

to read To be delivered or paid

Unless date of delivery is fixed

for at the

and indicated in the contract the

named place.

Bank

and at the

option period should be specified

II. Business with Merchant :

at the discretion of the customer

a. Contract amounts.

subject to the condition that such

Any excess

amount over the

option period of delivery shall not

amount stated in a

exceed beyond one month. For

shortfall therein shall be bought or

example.

sold as the case may be, at the

contract, or

15th January to 14th February

Banks current ready or cash rate

30th January to 28 (29th)

of the

February

excess in the contract shall

31st March to 30th April.

Contracts

permitting option

date and amount of the

be

cancelled as per Rule 8(iv). When

of

Bill contract mentions more than

delivery must state the first and

one rate for

bills

of

different

last dates of delivery. A forward

deliveries, the contract must state

contract is a contract deliverable

the amount and delivery against

at a future date, duration of the

each such rate.

b. Option of delivery :

d. Merchant quotations:

In all forward merchant contracts,

The

the merchant whether a buyer or

quoted in direct terms, i.e.

a seller will have the option of

many Rupees and paise for 1 unit

delivery.

of foreign currency or 100 units of

Ready or Cash Merchant Contract

Exchange

rates shall be
so

foreign currencies.

shall be deliverable on the same

day.

e. Rounding off Rupee equivalent of

C. Option of Usance

the Foreign Currency amounts at

The merchant purchase

should

contract

state tenor of the

bills

the agreed Merchant rate:

Settlement

of

all

Merchant

/documents. Acceptance delivery

transaction shall be effected on the

of bills / documents drawn

for a

principle of rounding off the rupee

will be at the

amounts to the nearest whole

different tenor

discretion of the bank.

rupee i.e. without paise.

FEDAI RULE 8
EARLY DELIVERY, EXTENSION & CANCELLATION OF
FORWARD EXCHANGE CONTRACTS
I. General

where extension is sought by a customer

a. At the request of the customer,

(or are rolled over) shall be cancelled (at

unless stated to the

the

contrary in

provisions of the Exchange

TT Selling or Buying rate as on the

date of

cancellation) and re-booked

Control Manual, it is optional for a

simultaneously only at current rate of

bank to-

exchange. The difference between the

i. Accept or give early delivery:

contracted rate and the rate at which the

ii. Extend the contract :

contract is

b.

recovered from /paid to the customers at

It is the responsibility

should be

of the customer to effect delivery

the

or to request

Such request for extension shall be made

the bank for

extension/cancellation

as

the

time

contract.

maturity date of the contract.

IV.

Authorised

of

extension.

on or before the maturity date of

case may be on or before the

c.

Cancellation:

Dealers

a) In the case of cancellation of a

shall levy a minimum charge of

contract, at the request of the customer,

Rs.250/- for every request from a

the

customer

delivery,

/pay as the case may be, the difference

extension or cancellation of a

between the contracted rate and the

contract.

rate at

for

early

ii. Early delivery :

delivery, the bank shall recover or
pay swap difference, if any.

which

the cancellation is

b) Rate at which cancellation is to be

effected:
i. Purchase contracts shall be cancelled

Extension
Forward

Authorised Dealer shall recover

effected.

If a Bank accepts or gives early

iii.

cancelled

at the contracting banks TT Selling

Exchange

contract/s

either short or long term contracts

rate current on the date of cancellation.

ii. Sale contract shall be cancelled at the

the 15th day from the date of maturity

contracting banks TT Buying rate

be automatically cancelled. In case

current on the date of cancellation.

the 15th day falls on a Saturday or

iii. Where the contract is cancelled

before

maturity,

the

appropriate

forward TT rate shall be applied.

holiday, the contract will be cancelled

on the next succeeding working day.
ii. Swap cost, if any, shall be recovered

c) Exchange difference not exceeding

Rs.100/- shall be ignored by the
contracting bank.

from the customer under advice to

him.
iii. In case the contract is

ultimately

d) In case, a purchase contract becomes

cancelled, the customer will not be

overdue, due to the banks inability to

entitled to the exchange difference, if

accept the bills tendered as approved

any, in his favour, since the contract is

bills and the exporter take up the

cancelled on account of his default.

contract by tendering other approved

iv. In case of delivery subsequent to

bills or cancels the contract within a

automatic cancellation the appropriate

reasonable time, such cancellations

current rate prevailing on such delivery

shall be governed by the above.

date shall be applied.

e) Notwithstanding the fact that the

exchange
customer
impossible

contract

between

the

and the bank becomes

performance

(a) Swap cost to be recovered from

customers:

for

In all cases of early delivery of purchase

including

of sale contracts, Swap cost shall be

Government prohibitory order, the

recovered from customers irrespective

exchange contract shall be deemed to

of whether an actual swap is made or

have become void and the customer

not. Such recoveries should be made

shall forthwith apply to the bank for

either back-ended or front-ended in the

cancellation subject to provisions of

discretion of Banks.

whatever

of

V. Swap cost:

reason,

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

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

Stamp

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

LETTER OF INDEMNITY
The Manager,
Indian Overseas Bank,
.
Dear Sir,
In consideration of Indian Overseas

covered by such Lorry receipts to our

Bank having agreed to act or acting

buyers after they have retired/drawn the

as our Agents.

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

i. For sending to our buyers bills of

basis as the case may be.

exchange drawn by us on them-such

I/We undertake at all times hereafter, to

bills being accompanied by the Lorry

save, defend and keep your Bank

Receipts -

such Lorry receipts being

harmless and indemnified of and from

issued or purported to have been issued

all manner of actions, suits, losses

by the Transport Operators designated or

whatsoever and of and from all damages,

selected by us from the list of Approved

costs, losses and charges whatsoever

Transport

which you may at any time hereafter

Operators

prepared

or

maintained by the bank.

sustain, bear or to be put to by reasons of

ii. By allowing the Banks name to be

(a) You having acted as mentioned

mentioned as a consignee in such Lorry

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

Receipts where the bank has accepted to

respect of any transaction that

the said bill of exchange for collection or

arise from or are incidental to

has purchased or discounted such bills.

such dealings, or\

iii. For delivering the bills with all the

(b)

Any of the Lorry Receipts

accompanied documents such as the

turning out to be not a genuine

invoice, Lorry receipt etc., against

and authorised receipt or to have

payment to such buyers.

been

iv. For endorsing such Lorry receipts to

against goods of the description

our buyers after they have retired /

and value as stated in the Lorry

accepted the bills of exchange or for

Receipt.

authorising delivery of the consignment

issued

otherwise

than

Yours faithfully,

(Stamps & Signature of the consignor)

Dated atthis.day of 20.
F.286 C(011175)

To
Indian Overseas Bank

Stamp

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.

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, Coaccepting 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

Firm)

We, the Partners of and carrying business in the firm name

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/ Banks
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.
Beneficiarys 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 undernoted import licence(s) / Open General Licence/Appendix No.
Noof 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

Amendment to

Number:

Documentary Credit
Cable:

Telex:

Date of Amendment
Applicant

Place and date of Issue

Beneficiary

Advising Bank:

This amendment is to be considered as part

Reference No:

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
Advising Banks notification

________________________
(Name Sign No.) Name .Sign No)
Authorised Signatures.
F288(1205)250Px251/5KRP

Place, date name and signature of the

Advising Bank

Indian Overseas Bank

Amendment to

Number:

Documentary Credit
Cable:

Telex:

Date of Amendment
Applicant

Place and date of Issue

Beneficiary

Advising Bank:

This amendment is to be considered as part

Reference No:

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
Advising Banks notification

________________________
(Name Sign No.) Name .Sign No)
Authorised Signatures.

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 KEEPERS 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 Banks Godown which has been duly secured by the Banks locks
and the Banks sign-board is exhibited.
Description of goods Quantity

Unit Weight Address of Godown where stores

Yours faithfully,
Indian Overseas Bank
Godown Keeper

Indian Overseas BankBranch

The Warehouseman,

Date..20

.
.
Dear Sir,
NOTICE OF THE BANKS LIEN ON SPECIFIED GOODS
Please

take

notice

that

Shri/Messrshas/have
assigned and endorsed over to the Bank and deposited with the Bank as security for
advances

granted

to

him/them

Dated

warehouse

receipt

No
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 Banks 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

Stamp

AGREEMENT FOR ADVANCES AGAINST PLEDGE OF WAREHOUSE

RECEIPTS
To
Indian Overseas Bank

Place:..
Date:...

Dear Sirs,
I/We hereby acknowledge to
have

delivered

to

per annum or such rate as may be

fixed by the Bank from time to time

you..

and all changes to be made by you in

connection therewith and also all

necessary expenses (ordinary as well

as extraordinary ) costs and charges

documents of title to goods described

which may be incurred by you in

in general terms in the schedule

respect of the possession or for the

hereto as security for due repayment

preservation

of

goods/documents of title goods.

the

debit

due

by

me

/us
for

the

of

the

said

2. I/We agree that in the event of

sum

my/our failing to pay you on demand

of

the

Rupees

Rupees

together with interest

thereon and all costs charges

expenses

by

said

incurred

sum

by

of

you

and
in

way of principal of interest thereon

connection therewith or in respect of

at

the

the

rate

of

..%

possession

of

the

goods/documents of title to goods, or

in the event of my/our failure to

whether such

observe or perform any of the terms

due or not. You shall have also the

and conditions hereof, you shall be

right without any previous notice to

entitled without any previous notice

me/us to set-off or appropriate any

to me/us or consent on my/our

sum or sums of money standing to

part(notwithstanding

notice

my/our credit in any account at any

required by law or otherwise to be

office of your bank towards the debt

given the right to which notice is

due by me/us , in the event of my/our

hereby expressly waived by me/us)

failure to pay the debt on demand or

and without prejudice to any of your

in the event of any deficit existing

other rights or remedies, to sell or

even after appropriating the sale

otherwise, dispose of either by public

proceeds of the goods.

auction or private contract as you

3. I/We agree that I/we shall accept

may consider advisable at any time

without question the Banks account

or times the goods pledged as

of such sale or sales or other

aforesaid or any part or parts thereof

transactions signed by any authorised

and to appropriate the net sale

officer of the Bank as sufficient

proceeds in the first instance towards

proof of the amount realised by the

the costs, charges and expenses due

sale or sales and the costs, charges

to you for the keeping of and selling

and expenses incurred in connection

the said goods and then towards the

therewith.

debt due and all interest and charges

4. I/We agree that the Bank shall not

thereon. It after appropriation made

be responsible for any loss from or

as above , any surplus remains , you

through any Brokers or Auctioneers

shall be at liberty to apply and

employed in the sale or sales of the

appropriate the amount against any

said goods or in any other manner

other debts or liabilities of mine/

whatsoever in respect of the said

ours to you , whether alone or jointly

goods.

with any persons of firm (whether as

5. I/We hereby engage and undertake

principal

surety)

to maintain at all times in favour of

whether the same be secured or, and

the Banks a margin of .%

debtors

any

or

as

debts had

become

between the market value from time

on demand all such sums so paid by

to time of the goods and the balance

you or debited to my/our account.

due to you from time to time . Such

7.

In the event of loss or destruction

margin is to be calculated on the

by fire or otherwise you shall be

market value of the goods as fixed

entitled to recover the receive all

by you from time to tome and is to

monies payable in respect of the

be maintained by me/us either by the

insurance and appropriate it towards

delivery be me /us of further security

the debt of me/us and the previous

to be approved by you or by cash

Clause (2) suppra shall also apply in

payment by me/us of sufficient sum

such cases as if there had been

so to maintain unimpaired the said

realisation of the value of the goods

margin.

by sale.

In assessing the market

value of the goods and arriving at the

8.

I/we

further

agree

that,

loanable value of the goods pledged

notwithstanding the charge of the debt

after reserving the requisite margin,

due by me/us as security for payment

you shall be the sole judge.

of which I/ we have pledged with you

6. I/We undertake to insure and keep

the goods/documents of title to goods

insured the said goods at all times

mentioned in the schedule here to you

and from time to time its full value

shall have the right to retain and hold

against fire and all other risks as

such goods which may remain

required by you with Insurance

my/our possession at the time of the

companies approved by you and to

discharge of the debt for which they

deliver to you the policy or policies

were originally pledged as and by way

of Insurance duly transferred in your

of security for

favour. In the event

of my/our

liabilities of mine/ours owing to you

failure to do so, you shall be entitled

on any account at any office of the

to insure the said goods at my/our

Bank (whether singly

expense and on m/our account and

whether as principal debtor or as

debit the charges to my/our account

surely) and you shall have

and I/we shall be bound to repay you

rights of a pledge over the said goods

all other

in

debts or

or jointly,
all the

in respect of such debits or liabilities

and all such powers and discretions as

the goods under or through me/us for

are exercisable by you in respect of

accountability on the ground of any

the goods so remaining.

shortage of any quantity or any defect

or variation in the quality, nature,

9. I/we agree that you shall not be

required

condition and contents of the said

to sell the goods pledged

goods as represented by me/us and

before suing me/us on the debt due, as

that the pledge of the goods was taken

it is purely optional on your part so to

by you on the faith of my/our

do and that we shall not dispute your

representation as to the quantity,

right to sue me/us on the debt due,

quality, condition, nature and contents

retaining the goods/ document of title

of the said goods and

to goods pledged by me/us as security.

verification of the correctness

without
of

10. I /we agree that you shall not be

my /our representation on the strength

answerable or responsible for any

of which wholly you were induced to

damage or depreciation

the

act by me/us (notwithstanding any

said goods and property may suffer

certificate of any godown-keeper or

while in your possession and that we

other

shall not also hold you responsible for

acknowledging receipt

any loss or shortage or diminution in

represented by me/us or delivery to

quantity or weight of the goods caused

the Bank).

which

by theft burglary or any other cause

employee

of

the

Bank

of goods as

12. I /we hereby declare that I /we have

and that such loss or damages or

every

right

to

pledge

the

depreciation or diminution shall be

goods/documents of title to goods

suffered and borne by me/us wholly.

hereby pledged and to create a valid

11. I/we hereby acknowledge that you

pledge thereof in your favour and that

have accepted pledge of the goods

there are

hereunder

attachment of any kind or any sort,

on

the

distinct

understanding that you shall not be

no encumbrances, lien or

over the same.

held liable to me/us or my/our heirs,

13. I/we agree that all other securities

assignees, administrators or executors

given by me/us on any other account

or any person claiming right or title to

or in respect of any other transaction

of mine/ours with you shall, in so far

Warehouseman shall give notice to the

as the same

shall not have been

Bank in case of any loss or damage to

exhaust, be available to you as further

the goods when it is in deposit in the

security for the debt or liability

Warehouse and

secured

action

under this instrument of

pledge.

to

before taking any

auction

the

goods

deteriorating or about to deteriorate in

14. I/we agree to have the Banks lien

noted in the Warehouse Certificate

the warehouse in accordance with the

state/Central Warehouse Rules.

and deliver the same to you before

15. I/we agree to indemnify you and

drawing any advance together with an

keep you indemnified against all

undertaking by Warehouseman to the

losses, damages, claims

following effect that the goods or any

costs, charges and expenses sustained

part thereof will not be permitted to be

by you or made against you in respect

removed or dealt with from

of the goods pledged under this

warehouse in any
depositor

manner

by the

the

instrument.

written

16. I/we further agree that the security

permission of the

Bank previously

delivered to you from time to time

obtained; and that

notwithstanding

shall be security to you for the

any

without

the

demands,

agreement to the

contrary

repayment of the ultimate balance

between the depositor without the

outstanding

written

permission

in

the

the

Bank

loan/overdraft/cash credit account and

and

that

I am /we are to remain liable for the

notwithstanding any agreement to the

balance not withstanding the fact that

contrary between

the depositor and

by payments made into the account,

warehouseman the goods will be

the loan/overdraft/ cash credit may

delivered

to the Bank on demand

stand reduced or extinguished or the

without any reference to the depositor

balance in the said account/s brought

or his consent; the Bank is at liberty to

to credit from time to time or at any

inspect, through its officers, the goods

time.

previously

under
house

of

unpaid

obtained;

lien to the Bank

of

business;

during the
that

the

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

15 days after the respective due

date for the payment thereof.
b. any interest remaining unpaid

of

and in arrears for a period of 3

Rs in equal

months after the same shall have

instalments of

become due whether demanded

Rs. . each

. the first of such

instalment

payment to commence from . Day

of . 20

or not.
c. any representation or statement
made herein by the Borrower

Notwithstanding anything contained

herein or in the loan/security documents,
the Bank will have the option in its

being

found

be

materially

incorrect.
d. the Borrower committing any

discretion to recall the entire loan

breach

amount or any part thereof and to

performance of or observance of

enforce the security in the following

any

circumstances

provision

or

when

the

Bank

or

term

default
or

in

condition

contained

the
or

in these

suspects or has reason to believe the

presents and /or in the security

Borrower has /have violated or is /are

documents or any other term or

violating the terms and conditions

condition relating to the advance.

contained herein.
a. any

instalment of principal

remaining unpaid for a period of

e. the Borrower entering into any

arrangement or composition with
the

Borrowers

creditors

on

committing

any

act

of

insolvency;

k. the

Borrower

ceasing

or

threatening to ceaase to carry on

f. the Borrower committing any

business; or giving or threatening

act, the consequences of which

to give notice of his/its intention

may lead to the winding up of

to do so or dispose of the whole

Borrowers business:

or any substantial part of the

g. execution or distress of other

process

being

reinforced

or

levied upon or against the whole

or

part

of

l. if

the

Borrower

shall

stop

payment or threaten to do so;

Borrowers

m. if the Borrower shall without the

property whether secured to the

consent in writing of the Bank

Bank or not.

create or attempt or purpose to

h. the

any

business.

borrower

into

create any mortgage, charge,

the

pledge, hypothecation or lien or

or

encumbrance ranking priority to

reconstruction with the approval

paripassu with or create any

of the Bank);

mortgage;

liquidation

going

(except

for

purpose of amalgamation

i. the Borrower (if an individual) or

charge,

hypothecation

or

pledge,
lien

or

any of the partners of the

encumbrance subsequent to the

Borrower (if

security given or to be given to

a firm)

being

adjudicated insolvent or taking

advantage of any law for

the

relief of insolvent debtors;

or

the Bank for the above loan.

n. it

being

accountant

certified
or

by

an

firm

of

entering in any arrangement or

accountants, appointed by the

composition with his creditors or

Bank (which the Bank is entitled

committing

and authorised to do at any time)

any

act

of

insolvency;

that

the

liabilities

of

the

j. a Receiver being appointed in

Borrower exceed its/his assets or

respect of the whole or any part

that the Borrower is carrying on

of the property of the Borrower.

business at a loss;

o. the occurrence of any event or

circumstances

pre-

affect in any manner the capacity

judicial to or impair or imperils

of the borrower to repay the loan.

or depreciates or jeopardizes or is

On the question of any of the

likely to prejudice or impair or

matters, event or circumstances

imperils

or

mentioned in the sub-clause (a)

jeopardize the security given to

to (p) above has happened, the

the Bank and

opinion and/or decision of the

or

which

is

likely to prejudically or adversely

depreciate

p. the occurrence of any event or

circumstances which would or is

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

Brief description

Depositors estimate

and date

of property/properties

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
continuing

deeds relating to the above said property as

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)
(Companys 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

original and addition /enhanced

agregage limit of Rs. (Total of

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)
Companys Rubber Stamp and Signature)
Indian Overseas Bank

F379C
Stamp

AGREEMENT OF TERM LOAN

AND HYPOTHECATION
THIS AGREEMENT MADE at .

successors and assigns. WHEREAS the

this .. day

borrower has applied to the Bank for a

of

loan which the Bank has agreed to grant

20 .. by

to the extent of Rs

residing at/having place of business at

(Rupees

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

hereinafter

the

upon having the repayment thereof

shall,

secured on the terms and conditions and

Borrower

referred
(which

to

as

expression

only)

where the borrower is a single individual

in the manner hereinafter mentioned.

include his/her heirs executors and

AND WHEREAS the Bank has at the

administrators and where the borrower is

request of the Borrower agreed to

more than one individual include all of

disburse the said loan either in one

them jointly and each of them severally

lumpsum or such amounts as may be

and their survivor or survivors and the

mutually agreed upon by the parties to

respective

be utilized by the borrower for the

heirs, executors

administrators

or

representatives of

other
the

and
legal

deceased

purpose

mentioned

in

the

loan

application submitted to the Bank.

borrower (s) in FAVOUR OF Indian

NOW IN CONSIDERATION of the

Overseas Bank

promises it is hereby agreed as follows:

a body corporate

constitute constituted under the Barking

1.

The Borrower shall repay to the

Companies (Acquisition and Transfer of

Bank

undertakings) Act.1970, having

Rs..

its

the

said

loan

of

(Rupees

Central Office at 762, Anna Salai,

...

Madras 600 002 and a branch situated

only) as per the repayment

among other places at .

programme mentioned

Hereinafter referred to as The Bank

Schedule hereunder or in the

which

absence of anything mentioned

expression

shall

include

its

in the

in

the

Schedule

..

2.

equal

in

3.

Where in as per the terms of

monthly

sanction, the loan is repayable in

installment of Rs.

equated instalments comprising

(Rupees

of both

the Borrower (s) hereby agree

only) the first of such

(s) that he/they shall repay the

instalments being payable on

Bank the principal sum together

. and each of the

with

subsequent instalments being

repayment

payable on or before the last

mentioned

day of the succeeding month

hereunder or in the absence of

for which the instalment is due

anything mentioned in Schedule

until the entire loan is repaid.

in equaled

The Borrower shall, as long as

Rs. payable

the said loan or any part thereof

month..

remains unpaid, pay to the Bank

the first of such instalmens to

interest

commence from ..

thereon

or

on

the

principal and interest

interest

as per the
programme

in

the

Schedule

instalments of
every

balance thereof due from time to

and in

time at the rate of % per

repayment of any instalment

annum

he / they shall pay

over Prime Lending

case of delay in
overdue

Rate of the Bank with monthly

interest on the defaulted amount

rests or such other rates

and

at Rs. .. per

rests as may be notified by the

Rs.100/- per month till the date

Bank to me / us from time to

of

time and shall be calculated and

instalment.

charged as the daily balance in

4.

the

payment

of

the

As security for the repayment to

the Banks favour due upon the

the

said account until the same is

Agreement the borrower hereby

fully liquidated

hypothecated unto the Bank by

and shall be

amounts due

under this

paid by the borrowers as and

way of first charge the movable

when demanded by the Bank.

assets /property / machinery /

goods described in Schedule

are and shall

hereunder

absolute

written (hereinafter

unencumbered

called the hypothecated goods

property of the borrower with

which expression shall where

full power of disposition and

required or necessary include all

undertakes to indemnity

things, fixtures, furniture, tools

Bank against every and any kind

accessories and part whatsoever

of loss or damage by reason of

pertaining

damage to or destruction or loss

to

the

hypothecated

said

goods

of

the

the

hypothecated

machinery and all replacement

goods/machinery

of

cause whatsoever or by reason

additions

made to the

Hypothecated goods/machinery
from time to time as security
for

due

repayment

borrower

the

from

any

of any claims by third parties.

6.

So long as any money remain

by

the

due in respect of the said loan,

bank

at

the borrower shall not remove

or

removed

of the said loan of Rs

goods/machinery

and

by

borrowers premises at .

manner

Where the same are presently

aforesaid and for costs, charges

kept except in the manner and to

and expenses (the legal costs

the extent allowed by the Bank

being between /Advocate and

of except for effecting necessary

Client) incurred by the Bank for

repairs thereto. The Bank shall

the

preservation,

be entitled and the borrower

defence and perfection of this

hereby gives his consent to the

security and for

Bank to put up Banks name

interest

instalments

in

protection,

there
the

attempted or

actual realisation thereof.

5.

and

remain the

The

borrower

cause or permit to be
the

hypothecated
from

the

board at the place where the

declares

and

hypothecated goods/machinery

that

the

are or may be stored at such

hypothecated goods /machinery

time and in such time and in

guarantees

7.

such manner as the Bank may

amount of the insurable interest

deem proper.

of Bank. If the borrower shall

The

hypothecated

make default in effecting such

goods/machinery shall at all

insurance

times during the currency of this

renewing any policy or in

security and so long as any

payment of such premia or

money shall remain due and

keeping

the

owing in the said loan account

premises

so

be maintained in good and

delivering to the Bank the

saleable condition and insured

policies or receipts for the

and kept insured by and at the

premia is shall be lawful (but

expense of the borrower against

not obligatory) for the Bank to

fires and such other risks as may

effect such insurance or to

be required by the Bank or be

renew or to pay such premia and

required by the law to the full

keep

extent of the value thereof in an

goods/machinery insured and to

insurance Office or officers

debit the expenses incurred by

approved by the Bank in the

the Bank for this purpose to the

name of the Bank or in the name

said account and the same shall

of

be treated as advances secured

the borrower and assigned

as

aforesaid

hypothecated
insured

the

or

in

hypothecated

to the Bank and in either case

by

the policies shall be handed over

borrower agrees to pay the same

to the

on demand with the interest at

Bank.

The borrower

this

on

Agreement.

The

shall duly and punctually pay

the rate aforesaid.

the premia due on the polices

received

atleast one week before the

insurance as aforesaid shall after

same shall have become due or

deduction for all expenses be

payable and hand over the

applied

receipts to the Bank and the

liquidation of the balance due to

borrower agrees not to raise at

the Bank for the time being and

any time any dispute as to the

in the event of there being a

under

in

or

All sums
any

towards

such

the

surplus

the

same

shall

be

whereby

distress

or

returned to the borrower, subject

attachment or execution may be

to the Banks lien in respect of

levied thereon by any creditor or

the borrowers other dues to the

other

Bank if any.

Government

The borrower

agrees that if any moneys under

any such insurance are received

8.

any

person

including
or

any

Municipal

authority or body.
9.

The borrower shall duly and

by the borrower, he will pay the

punctually pay, perform and

same forthwith to the Bank and

observe all rents, rates, taxes

in the event of the insurance

assessments

amount

for

which ought to be paid or

liquidation of the balance due to

performed or observed by the

the Bank leaving a shortfall in

borrower in respect of the said

the account.

The account the

business premises and shall

borrower agrees to remit cash or

inform the Bank promptly of

give adequate alternate security

any

to cover shortfall.

received

The borrower shall not during

authorities , viz., Government,

the

this

Semi Government, Municipal

Agreement sell, dispose off,

or local or other authorities

pledge hypothecate or otherwise

regarding any default, delay

charge encumber or in any

etc., by the borrower in the

manner part with the possession

performance of the borrowers

of

obligations towards them.

so

applied

continuance

the

of

hypothecated

and

notice

obligations

or

from

intimation

any

of

the

goods/machinery or any part

10. The borrower shall so long as

thereof nor shall the borrower

the loan or any part thereof

do or permit to be done any act

remains unpaid, maintain books

whereby the security herein

of accounts and ledgers and

before expressly given to the

other

Bank shall in any way be

relating to this business for the

prejudicially

purpose and promotion of which

affected

or

records,

documents

the loan has been obtained by

aforesaid

him from the Bank and allow

appraiser or other valuer to be

inspection thereof by any of

appointed by the Bank and all

Officers authorised by the Bank

such valuation shall be debited

in this behalf.

to the borrower in the said Loan

11. It shall be lawful for the Bank

and

any

of

the

Account

Officers

payment

without

advance

and

at

and

accordingly

authorised by it in this behalf,

notice

valued

the

expense in all respects, of the

be

and

be

by

payable

shall

treated

secured

and

until
as

by

an
the

agreement.

borrower to enter any time into

12. The borrower shall furnish to

or upon the Offices, Godowns

the Bank all such informations,

of the borrower or places of

declarations, affirmations etc. as

strange or any of the borrower

the Bank may from time to time

hypothecated goods /machinery

require including change in his

for the purpose of making

address or the address to which.

inspection

the hypothecated stocks may be

or

checking

the

hypothecated goods, machinery

removed subject to Clause

for the purpose of making

above, and shall give an execute

inspection of or checking the

necessary documents required to

hypothecated goods/machinery

give effect to this security or for

and

any other purpose.

taking

account

and

inspecting of the books of

account of the borrower (which

13.

the Bank is hereby authorised to

the Bank such statements and returns of

do) and it shall also be lawful

the cost and market value of the

for bank from time to time as it

securities and a full description thereof

may deem fit to have all or any

and produce such evidence in support

of the hypothecated goods /

thereof as the

machinery for the time being so

time require and shall at all times during

hypothecated and

the continuance of this security keep and

charged as

The Borrower shall

furnish to

Bank may from time to

maintain such margin of security as may

remain upon any place hypothecated

be required by the Bank from time to

goods or the books of accounts of the

time . If and so often as the margin shall

borrower may be kept and to inspect

fall to be maintained then the borrower

value,

shall forthwith (according as the Bank

possession and/or to seize remove to

may require) either hypothecate to the

other place or places, as the

Bank

or

deems, if necessary recover, receive,

tangible/moveable property of sufficient

appoint Receiver of all or any part of the

value approved by the Bank to make up

hypothecated goods/ machinery or books

the deficiency or shall reduce the amount

of account and thereupon forthwith or at

for the time being due to the Bank by

any time and from time to time but after

cash payments so as to maintain the said

giving not less than 43 hours notice at

margin.

least to sell either by public auction or

14. If the borrower makes any default in

private contract or otherwise dispose of

payment of any instalment of principal

or deal with the hypothecated goods/

or interest on the said loan or any of

machinery

such instalment on the respective due

such terms and conditions as the Bank

dates of payment thereof as mentioned

shall think fit and to apply the net sale

above or if any event or circumstance

proceeds towards repayment of the

shall occur which shall in the opinion of

ultimate balance due in the said Loan

the Bank be prejudicial to or endanger or

account and interest due thereon upto the

be likely to endanger the security by or

date or such application and to enforce,

any

circumstances

realise, settle, compromise and deal with

in Clause 16 hereunder

any rights aforesaid without being bound

happens or occurs, the Bank, if it thinks.

to exercise, any of these powers or being

Shall be entitled at the risk and expense

liable for any losses in the exercise

of the borrower without any notice at

thereof and without prejudice to the

any time or time after such default or

Banks rights and remedies of suit or

event

or

otherwise and notwithstanding there may

happens, to enter (and for that purpose to

be any pending suit or other proceeding.

do any necessary act, deed or thing) and

The borrower hereby also agrees to

further

other

mentioned

or

goods/machinery

event

or

circumstances

occurs

insure

and

take

charge

or

Bank

in such manner and upon

accept the Banks accounts of sales and

depreciation

realisation and to pay any shortfall of

hypothecated

deficiency thereby shown immediately

goods/machinery or any part

on demand made by the Bank and if the

thereof may suffer or sustain

net sum realised by such sale shall be

on any account whatsoever

insufficient to pay the amount hereby

while the same shall at any

secured the bank shall be at liberty to

time come into possession of

apply and other money or moneys in the

the bank or of any Agent or

hands of the bank standing to the credit

Receiver appointed by the

of or belonging to the borrower in or

Bank.

towards the payment of the balance and

which

17. Notwithstanding

the

anything

in the event of there being still a

contained herein or in the

deficiency, the borrower shall forthwith

loan/security documents the

pay such deficiency on demand provided

Bank will have the option in

that nothing herein contained shall in

its discretion to recall the

any manner prejudice or affect the

entire loan amount or any

Banks remedy, to proceed against the

part thereof and to enforce

person or the borrower.

the security in the following

15. The borrower agrees to accept as

circumstances or when the

conclusive proof of the correctness of

Bank suspects or has reason

any sum claimed to be due from him to

to

the

borrower(s)

Bank

under

this

Agreement,

believe

that

the

has/have

statement of account made out from the

violated or is/are violating

books of the Bank and signed by the

the terms and conditions

Manager/ Dy. Manager and/or other duly

contained herein:

authorised Officer of the Bank without

a.

any

installment

of

the production of any other voucher,

principal or interest of any

document or paper.

part thereof in respect of the

16. The Bank shall not in any

said loan being unpaid for the

way be liable or responsible

period of 15 days after the

for any loss, damage or

respective

due

dates

for

f.

payment thereof.

if

the

borrower

shall

without the consent in writing

of the Bank create or attempt

b.

any

representation

or

or purport to create any

statement in the borrowers

mortgage,

charge,

loan application being found

hypothecation

to be materially incorrect.

encumbrance

or

pledge,
lien

on

or
the

hypothecated
c.

the borrower committing

goods/machinery which is the

any breach or default in the

subject of the Banks security

performance of or observance

here under.

of any term or condition

contained in these presents or

g.

in the said Loan Application.

if the borrower stops

payment or cease or decides
to cease to carry on his

d.

execution or distress or

business or disposes off the

other process being enforced

whole or any substantial part

or levied upon or against the

of the business.

whole or any part of the

borrowers property whether

h.

secured to the Bank or not.

e.

the

borrower

if

any

circumstances

event
shall

or
occur

being

which shall in the opinion of

or

the Bank be prejudicial to or

taking advantage of any law

endanger or be likely to

for the relief of or insolvent

prejudice to or endanger its

debtors or entering into any

security hereunder.

adjudicated

insolvent

arrangement or composition
with

his

committing
insolvency.

creditors

or

any

of

act

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

agreements herein contained

the Bank shall be conclusive

shall be performed by them

and binding on the borrower.

and each of them jointly and

severally.

18. The borrower agrees to open

and or maintain with the

20. The acceptance by the Bank

bank, Saving Bank Account

of the security created and

and keep the account in

effected by these presents

sufficient funds and hereby

shall not be deemed in any

irrevocably

manner

authorise

the

whatsoever

Bank to debit the same with

supercede,

the

restrict,

amount

of

each

vary,

to
limit,

extinguish

or

instalment of the loan and

otherwise prejudice the other

interest thereon as and when

rights and remedies available

it falls due. The Bank shall

to the Bank and on delay in

also have the right to set off

exercising or omission to

the balance due in the said

exercise any right, power or

account against the balance

remedy

due in the said Loan Account

Bank upon any default on the

at any time after the balance

part of the borrower to

in the said Loan Account has

comply with this. Agreement

become payable under the

or any other document shall

terms hereof.

impair any such right power

or

occurring

remedy

or

to

shall

the

be

19. Where the borrower is more

construed to be a waiver

than one individual, each one

thereof or any acquiescence

of them shall be bound and

by the Bank in such default;

liable hereunder jointly and

nor

severally with the other or

inaction of the Bank in

others

all

respect of any default of the

conditions

borrower as aforesaid or any

of

convenants,

them

and

shall

the

action

or

acquiescence by the Bank of

Manager

any such default

authorised

affect or

or any Officer
in

that

the

impair any right power or

envelope was so posted shall

remedy in respect of any

be conclusive. If by reason of

such default on the part of

absence of the borrower from

the borrower.

the place mentioned, above

or otherwise any such notice

21. Any notice by way or request

to the borrower cannot be

or otherwise hereunder may

given, then the same if

be given by the Bank to the

inserted

borrower personally or may

advertisement in a newspaper

be left at the address given

circulating in the district

above or at the then or last

where the borrower was last

known place of business or

known to reside or carry on

residence of the borrower in

business, shall be deemed to

the Republic of India as the

have been effectually given

case may be addressed to the

and received on the day on

borrower or may be sent by

which such advertisement

post to the borrower as

appears.

once

as

an

aforesaid and if sent by post

such notice shall be deemed

22. The borrower is aware that

to have been given at the

this loan is granted under

time when it would be

delivered in due course of

post and in proving such

notice when given by post, it

scheme,

shall be sufficient to prove

conditions of which should

that the envelope containing

be complied with and the

the notice was posted and a

borrower

certificate

notwithstanding

signed

by

the

Banks Local Manger. Dy.

the

terms

agrees

and

that
anything

contained in this agreement,

the bank shall have the right

scheme, the Borrower agrees

to withdraw the concession

to bear the guarantee fee on

such as reduced rate of

the said loan at the rates

interest, subsidy and treat the

specified from time to time

loan as a normal loan with

in accordance with the rules

usual rate of interest in case

relating thereto and hereby

the loan amount is/has been

expressly

used for any purpose other

Bank to debit his/her/their

than for which it has been

SB/ CA/Loan account or any

sanctioned or if the bank

such other account with the

apprehends or has reason to

said

believe that the borrower has

undertakes

to

violated or is violating the

sufficient

balance

condition.

his/her/their SB/CA or such

authorises

guarantee

fee

the

and

maintain
in

other account for the above

23. In case, the loan is eligible

purpose.

for guarantee cover under

Small

Loans

24. In

Guarantee

witness

whereof,

the

Scheme 1971/Small Loans

borrower has hereunto set the

(SSI)

hands on the day, herein

Guarantee

Scheme

1981 of DICGC or any other

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 Banks 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 Banks 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

. . day of .

the
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
Memorandum(s)

evidenced

by

Registered

dt..registered

withSub-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

Stamp

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
Banks.
F419

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

Schedule II hereunder written;

premises aforesaid, the mortgagor/s

or as modified form time to

hereby covenant/s with the Bank as

time by exchange of letters

follows:

between the mortgagor/s and

1. The mortgagor/s shall repay to the

Bank.
a.

the Bank.
c. The

The amount due in respect of

the

said

Cash

Credits/Overdrafts/Demand
Loans forthwith upon demand by

mortgagor/s

agree/s

that

the

hereby
amount

borrowed from the Bank shall

be utilised for the purpose for
which it was granted.

the Bank. However, in a case

II. That the mortgagor/s shall pay the

where for any reason Cash Credit

interest on the amounts advances at

or overdraft is permitted by the

.%

Bank at its absolute discretion to

monthly/quarterly/half-yearly/yearly

be repaid in instalments and on

rests and in the event of default

such terms as may be stipulated

agree/s to pay increased interest at

by the Bank, the security as held

.% per annum.

hitherto shall continue to be

any time and from time to time the

subsisting and the conditions as

Bank be entitled to change the rate

to term loans herein shall apply

of interest and notify such change to

to the said loan subject to such

the mortgagor/s and such revised

changes as may be stipulated by

rate of interest shall always be

the bank.

constructed as agreed to be paid by

b. The amount due under the

per

annum

with

Provided that

the borrower/s and hereby secured.

said Term Loans according to

III. The Mortgagor/s hereby further

instalments

covenant/s with the Bank as follows:

specified

in

a. The

Bank

shall

not

be

to time and at all reasonable

required to make or continue

times and without notice to

any of the loans otherwise

the mortgagor/s but at the risk

that at the Banks discretion.

and

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

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.

required by the Bank and

d. The mortgagor/s shall bear

shall deliver to the Bank all

and pay all out of pocket

such policies. It shall be also

expenses

lawful for but not obligatory

inspection(s)

upon the bank to insure and

carried out by the Bank in

keep insured by debit to the

respect

mortgagors

premises.

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 Banks dues

hereunder.
c. The Mortgagor/s shall permit
the Bank and its servants and
agents either alone or with
workmen and other form time

of

of

as
the

such
may

be

mortgaged

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

entitled to the custody of cut

all sums of money awarded

crops

as

any

permission of the Bank and

or

the mortgagor/s shall not be

requisition of any portion of

entitled to the custody of cut

the mortgaged property shall

crops

be receivable by the Bank

permission of the Bank and

direct

only for the specific purpose

compensation

compulsory

on

for

acquisition

behalf

of

the

except

except

mortgagor/s for adjustment of

of

the amounts due under this

produce

and

mortgage.

marketing

it

purpose

g. The mortgagor/s agree/s that

this

mortgage

shall

with

processing

of

the

the

the

thereafter
for

specific

repaying

the

monies secured hereunder to

be

the Bank.

deemed to be fully discharged

only when this mortgage is

further

with

i.

The Bank, its agents and

cancelled by endorsement on

nominees shall be entitled to at

this

and

all times without notice to the

returned to the borrower/s and

mortgagor/s to enter the above

not by any other process of

said land or the premises where

redemption.

the produce raised on the said

mortgage

deed

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

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

ii If in the opinion of the Bank

public auction or private contract

circumstances exist under which the

without being bound to exercise

Banks interest are in jeopardy, or the

any of these powers, or being

whole or part of its security is/are

liable for any loss in exercise

likely

thereof and without prejudice to

reduced / lost / diminished by or in

the Banks remedies of suit or

consequent of any act or omission of

otherwise.

the mortgagor/s of for any other

IV. IT IS HEREBY AGRRED AND

DECLARED by the Borrower/s as
follows:

to

be

adversely

affected/

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

1.In addition to the security over the

at the option of the Bank immediately

mortgaged

created

become payable to the Bank and the

hereunder the mortgagor/s shall be

Banks shall be entitled to exercise

also personally liable to repay the

any of its rights and remedies in its

loans to the Bank.

discretion

premises

for

realisation

of

the

mortgage debt and the decision of

2. Without prejudice to the other

the Bank as to whether any one of

rights of and recourse available to

more of the aforesaid circumstances

the Bank hereunder.

exist shall be conclusive and binding

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

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

herein contained and on his/their

Borrower/s as mortgagor/s and all

part to be performed and observed.

the rights and remedies and powers

of the Bank as mortgagee under the

(a) the existence of a credit balance

law for the time being in force except

of NIL balance in accounts at any

so far as they may be expressly

time or any partial payment of

varied or may be inconsistent with

fluctuation of accounts; or

these presents shall be deemed to

be incorporated in these presents,
PROVIDED THAT the provisions of
sections

61,

respectively

65A

of

the

and

67A,

Transfer

of

Property Act, 1882, shall not apply to

(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.

these presents or to the borrower/s

VI. If the mortgagor be more than

as Mortgagor/s or the Bank as

one individual each one or any of

Mortgagee interest and this shall be

them is authorised and empowered

deemed a contract to the contrary for

by the others of them to admit and

the purpose of these sections.

acknowledge their liability to the

4 The Borrower/s delivered to the

custody of the Bank all the original
documents, concerned papers and
the encumbrance certificates.

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

V That this mortgage is intended to

one or more of them shall be

and shall operate as a continuing

construed to have been made on

security for all loans indebtedness

behalf of each of them.

and liabilities of the mortgagor/s to

the Bank at al times during the
subsistence

of

notwithstanding:-

this

mortgage

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

mortgagor/s

explained
in

to

her/his

the
their

Vernacular

language

and

she/he/they understood the same

THE SCHEDULE II REFERRED TO

ABOVE
(here enter repayment instalments in

THE SCHEDULE I REFERRED TO

ABOVE.
(here

enter

Term Lands)
Witness: (1)

particulars

of

land

including the return/ share of the

Borrower (s) interest in Land)

(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 Banks 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
Branch/Office

the

Bank
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

Serial

Index

Reg.

Date of

Face

Annual

Amount of

of Holding

Number

Number

Number

Issue

Value

Interest

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
Stamp

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

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 Banks 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.

DY. MANAGER

Margin

Terms Commission, Interest, etc.

P.

MANAGER

F568
AGREEMENT FOR BACK END SUBSIDY UNDER IRDP

THIS AGREEMENT entered into

WHEREAS the borrower has applied

between

to the bank for a loan/cash credit

limit

Development Programme which the

. residing at/carrying on business

Bank has granted/agreed to grant to

at hereinafter referred to as the

the

BORROWER

expression

(Rs

shall, where the Borrower is single

only)

(which

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

respective

their
heirs,

administrators

and

representative(s)
OVERSEAS
corporate

survivor(s),
executors,
other

AND

BANK,

constituted

under

extend

Integrated

of

Rural

Rs

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.

legal

AND WHEREAS in cases,

INDIAN

where the borrower is entitled for any

body

benefit of back-end subsidy under

a
under

the

Integrated

Rural

Development

Banking Companies (Acquisition and

Programme, the Bank is required to

Transfer of Undertaking) Act. 1970,

implement the Scheme of Back-end

having its Control Office at 763, Anna

subsidy as per the directives of

Salai,

Reserve Bank of India and for the

other

purpose of availing the benefit of

places at

Back-end subsidy the borrower is

required to agree and undertake to

hereinafter referred to as the Bank

abide by the terms and conditions

(which expression shall include its

governing the scheme of Back-end

successors and assigns witnesseth

subsidy stipulated hereunder and

as follows:

which may be stipulated as per the

branch

Chennai-600
situated

002

amongst

and

directives of Reserve Back of India

to the cash credit account

from time to time.

after

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;

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

2. The subsidy admissible to the

repaid or cash credit Account

borrower shall be kept in a

is fully adjusted before the

subsidy

lock-in-period

Reserve

Fund

i.e.,

on

or

Account and no interest is

before

payable

However, if the loan is fully

on

this

Subsidy

Reserve Fund by the Bank;

repaid/cash
adjusted

3. For the purpose of charging

interest

the

fully

lock-in-

period but before the currency

of the loan/cash credit limit,

credit the subsidy amount

the borrower shall be entitled

should be excluded by the

only to pro-rata subsidy as

Bank;

may be calculated by the

subsidy

the

after

is

loan/cash,

4. The

on

credit

amount

held

under subsidy Reserve Fund

Bank

on

the

NABARDs

Indicative formula.

Account shall be adjusted

6. The entire amount of subsidy

towards last few instalments

would be forfeited by the bank

of the loan and in cases of

in the case of misutilisation of

cash credit shall be credited

the loan/cash credit or any

other malpractice after issuing

under

a notice to the borrower to

However, if the legal heirs opt.

show cause as to why the

to take over the borrowers

subsidy

him

liability and implement the

should not be forfeited and

scheme, the procedure and

after obtaining approval of

terms

District

Consultative

applicable to the borrower

Committee / District Level

shall continue to apply to the

Consultants

legal heirs also.

whose

available

to

Committee

decision

shall

be

loan/cash

and

credit.

conditions

IN WITNESS WHEREOF, the parties

conclusive and binding on the

have here unto set their respective

parties hereto.

hands on the day, month & year

7. In the event of death of the

hereinabove mentioned.

borrower before the lock-inperiod

i.e.,

or

before..

for Indian Overseas Bank

it the legal heirs repay the

loan/adjust the cash credit,
the amount of subsidy will be
adjusted towards the liability
MANAGER

F 596

BORROWER

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

further

group/users association/ firm to sign,

register

execute,

endorse,

documents that may be necessary

negotiable

for the purpose and do all other acts

instruments and to borrow (with or

necessary. All the transactions with

without security) and to pledge its

Indian Overseas Bank, or any of its

credit and property and they have full

branches by the above mentioned

unrestricted authority to bind the

members/partners

group/users association/firm and are

contracts

negotiate

draw,
and

accept,
sell

authorised
all

of

legal

to

sign
and

suretyship

and
other

including
whether

jointly or severally or along with

binding

others shall be

be

association/firm and each of the

transactions of and binding on the

above noted members and their

group/users association/firm and all

respective estates.

deemed to

on

the

group/users

its members/partners. In the event

of

the

bank

with

the

association/firm

we

Notwithstanding anything to

further undertake to give notice to

the contrary contained hereinabove,

the above branch of (the bank in

we the aforesaid members/partners

writing

hereby place on record that such

group/users

of

dealing

any

change

in

the

group/users association/firm and we

member/partner

further

authorised to make payment on

agree

that

until

among

us

is

acknowledgement of receipt of such

behalf

notice by the branch of the bank and

association/firm and sign periodical

notwithstanding any provisions of the

confirmation

Partnership Act or any change in the

letters. Such payment, documents

membership

signed by any one of us shall be

of

association/firm

the

balances/revival

undersigned or otherwise purporting

severally and shall save limitation

to

the

against all of us jointly and or

group/users association /firm shall

severally for the purpose of Law of

be

group/users

Limitation. Any security given by any

association/firm and each member or

one of us shall be binding on the

past member and his estate and in

group/users association/firm and the

the case of death or insolvency, the

bank shall be at liberty to initiate

deceaseds or insolvents estate and

legal

the bank shall be entitled to honour

enforcement of security against the

our or their respective signatures

assets

which shall, until all liabilities to the

association/firm

bank in respect or such acts shall

default either by filing a single suit

have

against

binding

been

on
on

fully

behalf
the

of

of

group/users

binding on all of us jointly and or

done

acts

the

the

be

all

group/users

of

of

discharge,

be

action
of

the

for

recovery

the
in

and

group/users
the

group/

even

of

users

association/firm

in

the

event

of

7.

default either by filing a single suit

against

the

8.

group/users

association/firm or all or any one of

9.

use severally.
10.
11.
12.
Yours faithfully
13.
1.
14.
2.
15.
3.
4.
(Note: Members/Partners shall sign
5.

in their individual capacity only and

not

6.

for

and

on

behalf

of

group/users association/firm).
F- 597

the

LETTER OF CONSENT CUM UNDERTAKING AND HYPOTHECATION

The Manager,
Indian Overseas Bank
.Brach

Stamp
(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

run/carried on jointly by me and all

for/carry

Allied

the said persons, under Centrally

Agricultural / Industrial / Service/

Sponsored Schemes launched by

Business/Production

Government of India viz, Group

on

Agricultural/

activity viz.,

Loaning

at

Development

village in the

Taluk of
District of
. State
jointly and each one of us are
required

to

contribute

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

under

Integrated

Programme

Rural
(IRDP)

/Ganga Kalyan Yojana (GKY)

The Bank has agreed to grant a term
loan/composite
Rs..

loan

of
(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.

Group Loaning under IRDP/GKY for

2. In consideration of your bank
at/our

request

granting

loan/composite

loan

Rs.

term
of

(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

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 backs rights under

law to recover such instalments
otherwise than by debiting the said
joint account.

District

4. We, the undersigned, hereby give

State, we, the undersigned, hereby

our consent for the loans being

agree and undertake to acquire the

recovered for the person(s) and

assets for the said activity in our joint

assets hypothecated and/or other

names

assets as a public demand or as

and

to

hypothecate

the

assets acquired/created as security

land

for the said loan.

legislation

3. We, the undersigned, further

hereby agree and undertake that we

revenue

in

relating

terms
to

of

any

recoveries

thereon, where such consent is

necessary under such legislation.

scwill, as your constituents, open a

5. We, the undersigned, agree and

joint current account with your bank

undertake to stand as surety for

and we hereby authorise you bank to

each other and to give our personal

credit

guarantee for the due repayment of

to

the

said

joint

current

account of the loans sanctioned by

the

loan

by

our bank to each one of us under the

members/partners

the

other

of

the

group/users

association/firm

and

also to execute the letter of personal

guarantee

and

such

loan/security

documents

other
in

such

form as may be prescribed by the

bank for our joint

and

several

obligations under the Group Loaning

under IRDP GKY.

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,

6. We, the undersigned hereby agree

charges,

costs

and confirm that being more than

payable and incurred by your bank in

one individual, each one or any of us

relation thereto, we, the undersigned

are authorised and empowered by

hereby agree and confirm that:

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

commission

and

expenses

(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

acknowledgement of the liability by

(ii) the whole of the present and

one or more of them shall be

future

construed to have been made on

process of manufacture of in finished

behalf of each of them.

form and /or

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

stocks,

whether

raw,

in

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

during the period of the said loan

debts,

and

remains

receivables, claims, bills, contracts,

right

engagements,

interest

outstanding,

thereon

shall

have

to

outstanding,

moneys,
securities,

investments, rights and all other

your

movable assets;

payment of any money hereby

(iv) all pumpsets (electric/diesel),

storage tanks, lifting device, pipes
etc.

said

secured

or

constituent
on

the

in
non-

performance of any obligation

on the part of me/us or your
said constituent or on the

(which shall hereinafter be referred

occurrence

of

to as the said book debts, both the

circumstance

said goods and book debt shall be

opinion

referred to as security)

endangering the security take

with

of

any
in

your

the
bank

possession of, recover and/or

shall

stand

and

be

hereby

sell

by

public

auction

or

hypothecated to your bank by way of

private contract or otherwise

first charge.

deal with the security and

9. We, the undersigned hereby agree

and confirm that your Bank, without

appropriate the proceeds to

outstanding loans; or

being bound to do or being liable for

c) Apply towards the outstanding

any loss on account thereof and

loans any moneys in its hand

without prejudice to its rights and

belonging to us and to recover

remedies of suit or otherwise shall

the balance, if any, of the

be entitled to:

loans notwithstanding that all

a) Without notice to and at our

risk and expenses enter any

or any of the security may not

have been realised.

place(s) wherever the security

d) Deal in any manner with any

may be and inspect, value,

of our rights, debts or claims

insure, superintend disposal

in relation to the security.

and/or

take

possession
10. We, the undersigned agree and

thereof;

confirm that all the said goods, book

b) Without

prejudice

to

the

foregoing, on default by us or

debts, and all the sale proceeds and

Insurance proceeds thereof and all

to be considered exhausted merely

documents under this security shall

by reason of the said account(s)

always be distinguishable and held

either or any of them being brought

as your Banks exclusive property,

to credit at any time or form time to

specifically

this

time or any partial payments made

security to be dealt with only under

thereto or any fluctuations of such

the directions of the bank, and that

account(s) and if the whole of the

all the security are free and shall be

banks advances shall be repaid and

kept

or

the whole of the security withdrawn

encumbrance except those in favour

the account(s) or either or any of

of your Bank.

them may nevertheless at any time

free

appropriated

from

any

to

charge

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

been closed, be continued under the

said agreement upon the security as
aforesaid being again furnished.
12. We, the undersigned shall not,

and/or

except in the normal course of

indemnities and/or undertakings for

carrying on the activity but subject to

all

and

the powers of your Bank herein

liabilities of your said constituent

contained, cut/remove dispose of the

under the said loan and will be

security from the place(s) wherever

operative

normally

moneys,

as

security

before such account(s) has or have

indebtedness

security

and/or

the/those

may

be

without

the

indemnities and/or undertakings for

kept/preserved/stored

the ultimate balance or aggregate

prior written permission of your Bank

balances with interest thereon and

during the time any money herein

cost, if any, to become payable upon

mentioned shall remain outstanding.

the account(s) to be opened and the

The said security, if so, required by

said accounts(s) is not and are not

your Bank, shall be immediately

to be considered to be closed for the

delivered to your Bank on pledge.

purpose of such security and/or

We, the undersigned, have set our

indemnities and/or undertaking is not

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

years residing at

day of

.. 20 between

.. (hereinafter

Indian

Overseas

body

referred to as the Borrower which

the

expressed shall include his/her legal

Banking Companies (Acquisition and

heirs administrators and executors)

Transfer of Undertakings) Act. 1970

of the OTHER PARY.

corporate

Bank,

established

order

having its Central Office at 762, Anna

Salai,

Chennai-600

002

and

WHEREAS:

amongst other places a branch office

1. The borrower desires to purchase

at...

common

Agricultural/Allied

Industrial / Service / Business /

(hereinafter called the Bank which

Production activity viz

items

for/carry

on

Agricultural

expression shall unless repugnant to

the context or meaning, include its

at

successors and assigns) of the ONE

Village in the

PART.

Taluk of
And

District

Shri/smt/kum

son/wife

1). Shri/smt/kum

Daughter

of

State, jointly with

aged

about

Son/wife/ Daughter of
. resident of

2)

Shri/smt/kum

..

Son/wife/

Daughter

of

. resident of

. resident of

7)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of

3)

Shri/smt/kum

..
son/wife/ Daughter of

. resident of

8)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of
4)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of

9)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of

5)

Shri/smt/kum

.. son/wife/ Daughter of

resident

of

10)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of
6)

Shri/smt/kum

..

son/wife/

Daughter

of

11)

Shri/smt/kum

..

son/wife/

Daughter

of

contribution for which the borrower

has approached the bank for grant of

. resident of

a loan. The said activity will be run

jointly by all of them under the

12)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of

13)

Shri/smt/kum

..

son/wife/

Daughter

of

. resident of

14)

Shri/smt/kum

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

loan/composite

loan

term

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

son/wife/

Daughter

of

. resident of

(who are hereinafter referred to as

the said persons) and is required to
contribute

sum

of

Rs
(Rupees)
... only) as and by way of
his/her

share

of

capital

or

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

4) The loan shall be secured by

..only).

hypothecation and/or or mortgage of

2) The borrower shall utilise the loan

amount exclusively for
..

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

3) The said loan shall carry interest

persons also join the Borrower in

at the rate of

creating

percent per annum with quarterly

hypothecation/mortgage

half yearly rests and the interest

assets and execute and register

amount

requisite documents for this purpose,

shall

be

paid

on

the

the

furnish

of each year till the entire Principal

consent-cum-undertaking

and interest thereon is repaid by the

hypothecation

borrower. In default of payment of

guarantee

any one/two instalments of interest

persons stipulated in Clause 12

as stated above the bank shall be

hereinafter within a period of one

entitled to demand payment of the

week from the date hereof and

entire amount then outstanding in

agrees that the Bank shall not be

respect of the said loan, as if the

under obligation to disburse the loan

period for repayment has expired

amount until the said consent letters

and shall also be entitled, on failure

are produced.

quarter, to debit to the Borrowers

loan advanced by the bank to the
Borrower and shall be entitled to

payment of such defaulted interest.

Bank

necessary
and

and

letters

from

to

personal
the

said

NOTE:- Here mention the purpose

for which the loan is granted
-

charge like interest thereon, from the

date of default to the date of

the

agrees

the

the

to

hereby

on

to pay the interest at the end of each

Borrower

requisite

Delete

whichever

is

not

applicable
-

Here mention the dates for

payment of interest amounts

5)

eg., 28/29th February and 31st

7) Notwithstanding what is contained

August if interest is payable

in clause 6 hereinabove, if the

half yearly.

Borrower commits any default to

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

Borrower

to

intimated
the

by

bank

at

the
its

.. branch.

repaid in.
yearly/annual

instalments of Rs. (Rupees

.
only)

each,

the

first

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.

6) The said loan amount shall be

monthly/quarterly/half

repay the principal and pay interest

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.

of

such

9) The Borrower shall, along with the

due

instalments

becoming

and

said persons, open a current account

payable

on.and

with the Bank to which all the loan

thereafter,

the

subsequent

amounts granted to the Borrower

instalments becoming payable on

hereunder as also various other

every . day of the

receipts of the activity and loan

succeeding month/quarter/year.

amounts granted to the said persons

shall be credited. The borrower and

the said persons shall be at liberty to

shall have a right to inspect the

debit the said account with the

books of accounts of the borrower

expenses they have to incur in

and also to enter upon the premises

connection with said activity. The

place where the Borrower and the

Bank shall have a general lien on the

said persons carry on the activity of

sums standing to the credit of the

the

said current account and the Bank

property secured to the bank is kept

shall be entitled to debit the said

and inspect and verify the same and

account with the instatlments of the

shall also be entitled, in the event of

interest as well as the Principal due

default in repayment of the loan and

under these presents or under any

interest,

other transaction without, however,

possession of such property and sell

any prejudice to the Banks rights

the same either by public auction or

under

such

by private sale and appropriate the

by

sale proceeds in repayment of the

law

instalments,

to

recover

otherwise

than

premises/place

to

seize

and

take

amounts

borrower and his guarantors or out of

expenses incurred by the bank in

the

bringing such property to sale.

furnished

by

the

borrower.

and

the

debiting the said account, from the

securities

outstanding

where

also

12) The borrower undertakes to

10) The borrower shall execute a

obtain and produce consent-cum-

Demand

for

undertaking and hypothecation and

working capital in favour of the bank

personal guarantee letters from the

for

of

said persons in such form as may be

Rs

prescribed by the bank for the Joint

. carrying interest

all the rate

obligations of the Borrowers and the

stipulated hereinabove, at the time of

said persons contained in these

disbursal of the said sum to him/her.

presents and also guaranteeing the

Promissory
the

Note

sum

11) The Bank, its officials, agents,

Borrowers liability here under.

attorneys or advocates or any other

13)

Notwithstanding

what

in

person duly authorised by the bank

contained hereinabove, the Bank

hereby reserves its right to recall the

the stamp duty whereof shall be

entire amount outstanding hereunder

borne and by the Borrower.

against

the

Borrower, if,

in

its

IN WITNESS WHEREOF, the Bank

opinion, the aforesaid activity in not

has caused these presents to be

being carried on by the Borrower or

executed by its duly authorised

cannot be carried on by the Borrower

on

account

of

any

official and the borrower has affixed

reason

his signature hereunto at the place

whatsoever or the securities given to

and on the date first hereinabove

the Bank have become inadequate

written.

or endangered due to any reason

whatsoever.

For Indian Overseas Bank,

14) The Borrower shall intimate to

the bank any change in his address
(AUTHORISED OFFICIAL)

or change in the place of activity to

the Manager of the bank at the at the

WITNESSES:

.... Branch within

1.

15 days of such change.

15)

This

agreement

shall

2.

be

executed on requisite stamp paper,

F599

BORROWER

SUPPLEMENTAL DEE OF HYPOTHECATION

Stamp

(To be stamped as an Agreement)

Term

Loan/Composite

Loan

of

Rs.

granted

of

Group/Users

Association

Firm)

by

Indian

to

(Name

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

Rs

from
to

Rs.

Rs

movables specified in the principal deed of hypothecation

all

to
those

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.

..

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

to be availed of at .

at

. Branch for the

. on the .

purpose of purchase/construction for

day of ..20 by

self occupation of a residential house

Shri

built or to be built on a plot of land

S/o.

bearing S.No. ..

D/oresident of

situated at ..

..

(hereinafter

borrower

. sq.yds mentioned

which expression shall, unless the

in Schedule I herein or for repairs or

context otherwise requires, include

alterations of the same hereinafter

his heirs, executors, administrators

called the Schedule property with all

of the one part) to and in favour of

its accretions, additions and fixture

Indian

on

called

Overseas

corporate

the

Bank

carrying

on

body

banking

business with its Head Office: at 762,

terms

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).

conditions

as

mentioned in the loan application of

the borrower.

Anna Salai, Madras-600 002, and

having

and

measuring

And whereas the bank has

under

National

Housing

Banks

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 /

Whereas the borrower has

applied to the bank for sanction of
term loan of Rs.

equitable mortgage of the said house

property of the borrower.

And whereas the borrower

payable on ... 19 and

agrees to borrow the said term loan

each of the subsequent instalments

and agrees to create security by way

being payable on the

of

the

each succeeding month until the

repayment of loan on the terms and

entire loan is repaid. In case the

conditions, mentioned in Schedule II

amount of loan availed/disbursed is

herein, which the borrower accepted

less that Rs. ..

on

(Date of acceptance).

amount of instalment payable shall

mortgage

mentioned

for

Now this agreement witnesseth as

follows:

last day of

then

the

be reduced pro-rate.
2.The borrower shall so long as the

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.

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

1.The borrower shall repay to the

and rests as may be notified by the

Bank at

Bank to me/us from time to time and

Branch the amount of the said loan

shall be calculated and charged as

of Rs. (Rupees

the daily balance in the Banks

) together

favour due upon the said account

with interest as stipulated below in

until the same is fully liquidated and

para (2) in equal monthly/ quarterly /

shall be paid by the borrowers as

half

and when demanded bank.

yearly

instalments

of

The

Rs

interest charged shall become part

each on the day and in the manner

and parcel of the principal amount

mentioned in the schedule hereto,

and shall carry interest as such the

the first of such instalment being

borrower also agrees to pay to the

bank additional interest at .

% over and above the rate of

mortgage

the

same

with

all

% stipulated by RBI or as

accretions thereto as security to the

may be charged by the bank (without

Bank, for the repayment of the term

prior intimation to the borrower) from

loan, interest accrued and other

time to time on the amount of

charges.

instalments
overdue

in

remaining
case

of

unpaid

or

default

in

payment of principal or interest.

5. The borrower agrees that he shall

not during the continuance of the
loan, let our or otherwise part with

3. The borrower agrees that he shall

the

execute a mortgage and get the

mentioned in Schedule I hereunder

same registered at his cost in favour

or any part thereof without the

of the bank in a form or type

consent of the Bank in writing nor

acceptable

Bank/create

shall he sell, mortgage or alienate

equitable mortgage with intent to

his house property or any part

create security mortgaging the said

thereof without the prior consent of

house property for repayment of the

the bank in writing. It is also agreed

term loan, interest and other charges

that in case the schedule property is

as herein mentioned. The Bank shall

rented out by the borrower after

have the right, with a view to assess

obtaining the consent of the Bank

proper

the

the amount of monthly rent shall be

construction of the house property at

paid to the bank towards his liability

any time or stage before releasing

in respect of the term loan.

to

the

utilisation

to

inspect

further amount of loan instalments.

4.

The

borrower

assures

possession

of

the

property

6. In the case of a loan for the

and

purchase of a house, the borrower

declares that the plot or land herein

shall deposit with the bank a sum of

mentioned is freehold and is his full

Rs as margin money.

and absolute property having good

marketable

title

free

from

all

encumbrances and he is entitled to

7. The borrower agrees to build the

house property in accordance with
approved plan and maintain and

keep

the

house

property

in

a) Any instalment of principal or

marketable state and in good and

interest of any part thereof in

substantial repair and condition and

respect of the said loan being

will not materially alter the structure

unpaid

without written consent of the Bank.

after the respective

8. The borrower agree to utilise the

loan

solely

for

purchase/construction/repair

for

period

of

due dates of repayment.

b) Any

representation

or

of

statement in the borrowers

building and to pay interest at the

loan application being found

rate as applicable to clean loan

to be maternally incorrect at

stipulated by R.B.I, if the loan

any time.

amount is deviated and utilised for

any purpose other that the one
intended for.
9.

herein

breach

or

default

in

performance or observance of

Notwithstanding

contained

c) The borrower committing any

for

anything
fixation

of

any of the terms or conditions

contained in this

instalments, the entire amount of the

or

term loan with interest and charges

application/attachment

or the balance out-standing in the

distrant

account shall at the option of the

being enforced or levied upon

bank become due and payable by

the whole or any part of the

the borrower to the bank and the

schedule

bank will be entitled to realise the

secured to the bank or not.

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:

in

agreement

the

or

other

property

loan
or

precess

whether

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

of payment of premia. In case the

mortgage/charge

or

any

borrower neglects or defaults, the

encumbrance

schedule

bank may without being under any

of

house property agreed to be

obligation

mortgaged to the Bank.

security at the cost of the borrower

f) If any event or circumstance

shall occur which shall in the
opinion of the bank prejudicial
to

or

endanger

Banks

security.

insure

the

mortgaged

and debit the premia paid from time

to time to the borrowers

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

The opinion and judgment of the

rejection of insurance claim by the

Bank whether any such event had

insurance company for any reason

occurred or not shall be conclusive

whatsoever will not affect or qualify

and binding on the borrower.

the liability of the borrower and in

case any amount is received from

The borrower shall at his own

the insurance company towards the

cast insure and keep insured the

claim lodged by the bank under the

mortgage

policy, the same shall be received

security

when

executed/created against fire and

and

such other insurable risks loss or

towards dues owing under the term

damage as the Bank shall form time

loan.

appropriated

by

the

bank

to time require for the full market

value thereof with any nationalised

The borrower agrees to comply

insurance company jointly in the

with all the conditions of the term

names of the borrower and the bank

loan

with bank clause and deliver the

schedule property agreed to be

insurance policies taken from time to

mortgaged and to obtain permission

time to the bank clause and deliver

from the competent authority or

the insurance policies taken from

officer

time to time to the bank with receipt

mortgage of security in favour of the

Bank.

attaching

if

or

required

affecting

for

the

creating

The borrower agrees to pay all

of and size or type having an

taxes, public demands, dues and

independent access and include a

charges in respect of the schedule

bungalow and ownership apartment,

property which may be levied by any

flat but does not include a farm

government or any local authority

house or a temporary or a semi

during the continuance of the loan.

permanent structure.

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 witness whereof the borrower

has executed there presents on the
day, month and year first above
written.

In these presents the expression

schedule

property

means

..

residential house or the dwelling unit

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

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

from

only after ensuring investment

the date of first disbursement

of borrowers contribution /

whichever is earlier. While

margin

remitting the stipulated last

construction of the building.

instalment

initially

in

the

balance

outstanding If any shall be

6. The loan shall be released in

paid in one lumpsum and the

stages

after

watching

the

account shall be closed.

progress of construction at
each stage of release.

2. Interest at .% p.a
shall

be

charged

and

7. The property shall be insured

recovered separately during

for

the

full

value

of

its

holiday period.

superstructure for the risk of

fire and other hazards with

3. Where an instalment is not

repaid

within

due

banks

clause

during

the

date

currency of the loan and

additional interest at 2% over

original policy shall be held

and above the stipulated rate

with our bank.

of % p.a. on the
overdue

amount

shall

be

8. Taxes and rates levied by the

local authorities shall be paid

by the

borrower

receipt

and

produced

verification

apart

the

be in the standard format

for

prescribed by the bank.

form

10. The

retaining a copy for records.

borrower

shall

not

alienate/ mortgage the land

9. Legal opinion and valuation

and

building

offered

as

report in respect of land and

security to the bank without

building from our approved

prior consent of the bank in

lawyer/valuer

writing

shall

be

obtained. Legal opinion shall

HL 1

HOUSING LOAN
Term Loan Agreement for Direct Finance Scheme
This

agreement

is

made

at

Whereas the borrower has

applied to the bank for sanction of

on the

term loan of Rs.

. to be availed of at

day of 20by

Shr

for

...S/o

construction for sefl occupation of a

D/o

residential house built or to be built

on

resident of

S.No. situated at

(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

corporate

Bank,

carrying

on

body

banking

business with its Head Office at 762,

Anna Salai, Chennai 600 002, and
having

one

of

its

branches

at

Bank which expression shall unless

context

otherwise

required,

include its successors and assigns of

the other part)

purpose

plot

of

of

purchase

land

bearing

..
measuring sq.yds
mentioned in Schedule I herein or for
repairs or alterations of the same
hereinafter

called

property with

the

Schedule

its

accretions,

all

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

(hereinafter called
the

the

Branch

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

. each on the day

mortgage of the said house property

and in the manner mentioned

of the borrower.

in the schedule hereto, the

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).

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

Now this agreement witnesseth as

amount of instalment payable

follows:

shall be reduced pro-rata.

in

2. The borrower shall so long as

consideration of the above, the

the said loan or any part

borrower agrees that a term loan

thereof remain unpaid to the

account shall be opened by the bank

bank, pay interest thereon or

in its books debiting the amount/s

on the balance thereof due

advanced to him.

form time to time at %

That

pursuant

to

and

p.a. over the RBI rate with a

1. The borrower shall repay to
the

Bank

at

Branch

minimum of % p.a.or

the

at such other rates as may be

amount of the said loan of Rs.

notified by the bank from time

to time with quarterly /half

.) together with interest

yearly rests so that such

as stipulated below in para (2)

interest shall be calculated

in

monthly

and charged shall become

yearly

part and parcel of the principal

equal

quarterly/half
instalments

of

Rs.

amount

and

shall

carry

interest as such. The borrower

4. The borrower assures and

also agrees to pay to the

declares that the plot of land

Bank additional interest at

herein mentioned is freehold

..% over and above the

and is his full and absolute

rate

property

of

.%

having

good

stipulated by RBI or as may

marketable title free from all

be

encumbrances

charged

by

the

bank

and

he

is

(without prior intimation to the

entitled to mortgage the same

borrower) from time to time on

with all accretions there to as

the amount of instalments

security to the Bank for the

remaining unpaid or overdue

repayment of the term loan,

in case of default in payment

interest accrued and other

of principal or interest.

charges.

3. The borrower agrees that he

5. The borrower agrees that he

shall execute a mortgage and

shall

get the same registered at his

continuance of the loan, let

cost in favour of the bank in a

out or otherwise part with the

form or type acceptable

possession of the property

the

Bank/create

to

equitable

not

mentioned

during

in

the

Schedule

mortgage with intent to create

hereunder or any part thereof

security mortgaging the said

without the consent of the

house property for repayment

Bank in writing not shall he

of the term loan, interest and

sell, mortgage or alienate his

other

house property or any part

charges

as

herein

mentioned. The Bank shall

thereof

without

have the right, with a view to

consent of the bank in writing.

assess proper utilisation to

It is also agreed that in case

inspect the construction of the

the

house property at any time or

rented out by the borrower

stage before releasing further

after obtaining the consent of

amount of loan instalements.

the

schedule

Bank

the

the

prior

property

amount

is

of

monthly rent shall be paid to

9. Notwithstanding

anything

the bank towards his liability

contained herein for fixation of

in respect of the term loan.

instalments, the entire amount

6. In the case of a loan for the

purchase of a house, the
borrower shall deposit with
the

bank

sum

of

Rs.. as margin
money.

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

7. The borrower agrees to build

the

of the term loan with interest

house

accordance

in

the mortgage security of the

approved

house property at the cost of

property
with

realise the same and enforce

plan and maintain and keep

the

the

happening

house

property

in

borrower
of

upon
any

the

of

marketable state and in good

following

and substantial repair and

demand in writing namely:

condition and will not material

alter

the

structure

without

written consent of the Bank.

8. The borrower agrees to utilise
the

loan

solely

purchase/construction

for
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

events and

the
after

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 borrowers loan application being
found to be materially incorrect at
any time.

and untilised for any purpose

c The borrower committing any

other than the one intended

breach or default in performance or

for.

observance of any or the terms of

conditions

contained

in

this

agreement

or

the

loan

executed/created against fire and

application/attachment or distraint or

such other insurable risks loss or

other process being enforced or

damage as the Bank shall from time

levied upon the whole or any part of

to time require for the full market

the

value thereof with any nationalised

schedule

in

property

whether

secured to the bank or not.

d The

borrower

insolvent

or

being

committing

mortgage

security

when

insurance company jointly in the

declared
act

of

insolvency.

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

e If the borrower shall without the

payment of premia. In case the

consent in writing of the Bank create

borrower neglects or defaults, the

or attempt to create any further

bank may without being under any

mortgage/charge

obligation

or

any

insure

the

mortgaged

encumbrance of schedule house

security at the cost of the borrower

property agreed to be mortgaged to

and debit the premia paid from time

the Bank.

to time to the borrowers account.

The amount of premium not paid by

f If any event or circumstance shall

the borrower to Bank shall carry

occur which shall in the opinion of

interest as payable in the loan

the bank prejudicial to or endanger

account.

Banks security.

rejection of insurance claim by the

The opinion and judgment of

the Bank whether any such event
had

occurred

conclusive

and

or

not

shall

be

binding

on

the

borrower.

The

non-admission

or

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

The borrower shall at his own

cost insure and keep insured the

policy, the same shall be received

and

appropriated

by

the

bank

towards dues owing under the term

for the mortgage deed in the case of

loan.

a Regular Registered Mortgage.

The

borrower

agrees

to

In

these

presents

comply with all the conditions of the

expression

term loan attaching or affecting the

means a residential house or the

schedule properly agreed to be

dwelling unit of any size or type

mortgaged and to obtain permission

having an independent access and

from the competent authority or

include a bungalow and ownership

officer

creating

apartment, flat but does not include a

mortgage of security in favour of the

farm house or a temporary or a semi

Bank.

permanent structure.

if

required

for

schedule

the

witness

property

The borrower agrees to pay

In

all taxes, public demands, dues and

borrower

charges in respect of the schedule

presents on the day, month and year

property which may be levied by any

first above written.

has

whereof

executed

government or any local authority

during the continuance of the loan.
The borrower agrees to bear the
entire

cost

of

the

..

execution,
Borrower

registration and Stamp Duty required

I. SCHEDULE
Description of Property

Borrower
HL 2

the
these

SCHEDULE II
Terms and conditions of sanction of Housing loan

1. The loan shall be repaid in

the overdue amount shall be

equated monthly instalments

charged and recovered from

of Rs each over

the borrower.

a period of .
months. The repayment shall
commence immediately after
completion of construction /
purchase of flat / house or

4. The construction on the plot

shall be done as per the plan
approved by the competent
authority.

after. months form

5. The loan shall be released

the date of first disbursement

only after ensuring investment

which ever is earlier. While

of

remitting the stipulated last

margin

instalment

construction of the building.

balance

borrowers

contribution/

initially

in

the

outstanding if any shall be

paid in one lumpsum and the

6. The loan shall be released in

stages

account shall be closed.

after

watching

the

progress of construction at
2. Interest at ..%

each stage of release.

p.a. shall be charged and

recovered separately during

7. The property shall be insured

for

holding period.

the

full

value

of

its

superstructure for the risk of

3. Where an instalment is not
repaid

within

due

date

fire and other hazards with

banks

clause

during

the

additional interest at 2% over

currency of the loan and

and above the stipulated rate

original policy shall be held

of ..% p.a. on

with the Bank.

8. Taxes and rates levied by the

obtained. Legal opinion shall

local authorities shall be paid

be in the standard format

by the

prescribed by the Bank.

borrower

receipt

and

the

produced

verification

apart

for
from

retaining a copy of records.

10. The

borrower

shall

not

alienate / mortgage the land

and

building

offered

as

9. Legal opinion and valuation

security to the bank without

report in respect of land and

prior consent of the Bank in

building from our approved

writing.

lawyer/valuer

HL 2

shall

be

SECTION-B

Documents without Distinctive Numbers

DECRIPTION OF DOCUMENTS WITHOUT DISTINCTIVE NUMBER

Ann.No

1.

Name of Document
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

Page No

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 Borrowers 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

IOBs 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

created

of

by

of

deposit

on

20../

immovable
the

by

of

property

title

deeds

situated

at

made

at

day

registered

the

deed

dated

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 .
cc to Branch
(Transferee Branch)

Signature of the guarantors

Annexure 4
This

Supplemental

Agreement

entered

having

into
its

between

M/s

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
Stamp

The Manager
Indian Overseas Bank
.. Branch

AGREEMENT FOR
LOAN AGAINST R.B.I. DUTY DRAW BACK CREDIT SCHEME 1976

Dear Sir,
In

Consideration

Bank

2. That interest shall be payable

agreeing to grant me/us advance at

by us on the said advances

your discretion against provisional

with a maximum of 18% or as

entitlements to duty draw back as

may be fixed by you from time

certified by the customs from time to

to time if final payment is not

time

received from the customs

not

of

exceeding

your

sum

of

Rs.. at any

authorities

one time for which amount I/we have

from the date of our availing

delivered

the loan.

to

you

Demand

Promissory Note in your favour, I/We

agree with and undertake to you as
follows:

outstanding

90

days

3. That all charges incidental or

otherwise for the despatch of
bills, cheques etc,. are for our

1. That the balance of the said

advances

within

at

any

time

shall

be

repayable by us on demand in
accordance with the Scheme.

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

of our claim of duty draw

granting the loan, or final duty

back.

draw

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.

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

agreed

in

interest

the

as

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

continuing

security for the said advance

not withstanding any partial
payments of fluctuations in

8. That if within a period of 90

the accounts or withdrawal of

days, from the date of Bank

any part of the security that

may have been provided by

required by you from time to

us.

time for the purposes of the

11. That we will from time to time

and whenever required by you

advance

under

the

said

Scheme.

so, to furnish such information

and execute on demand any
such documents as may be

Yours faithfully,

Annexure 6
To

Stamp

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

Annexure 7
LETTER OF AUTHORITY

The Agent/Manager

Dear Sir,
In consideration of the

India and pass necessary receipts to

.. agreeing to

the Trust in full discharges of the

grant me/us a loan of Rs.

said payments (applicable for U.S.64

(Rupees

only). Further since the post-dated

dividend warrants have already been

only)

issued to me/us on the certificates,

against the security of units Nos

I/We have submitted all the dividend

issued by the Unit Trust of India of

warrants to the bank and authorise

which I/we am/are the holder/holders

them to collect the same regularly

and on the understanding that you

and credit the proceeds to my/our

will be given necessary authority to

Advances Account (applicable for

ask UTI to note a lien in your favour

MIS

against these units in the books of

certificates).

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

&

GIUS

The

letter

non-cumulative

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

3.
4. .

from the bank to that effect. This

(Name and signatures of all unit

authority in your favour shall not be

Holders)

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

Note:
1. A blank signed dated/undated
transfer

form

should

be

submitted to the bank along

with

the

original

unit

certificate.

the loan.
2. In case of MIS and GIUS
Yours faithfully

(under
scheme)

non-cumulative
where

post-dated

dividend warrants have been

Unit Certificate Nos.

issued

by

the

Trust

in

advance. These should also

be submitted to the bank for
1.
2.

regularly crediting to
Advance Account.

the

Annexure 8

The JGM/DGM/MGR/DM
Unit Trust of India
.
.

Dear Sir,
ADVANCES AGAINST THE SECURITY OF UNITS

We

forward

herewith

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 GIUSnon-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

Sl. No. of

Letter from the

Certificates

pledgee

Date

Name of the

Denomination

Office of
issue

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 Date
Certificate

Denominatio
n

Date of discharge Remarks

(Every
change
and initials of the affecting a NSC such as
Postmaster
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
Banks 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
Banks 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

No

Number Purchase

Issuing
Post Office

Purchase

Maturity

Date of

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

under

second charge in favour of X Bank

otherwise.

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

their

securities

or

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

also be at liberty to exercise any or

against the borrower unless.

all the rights and remedies available

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.

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

c. It obtains prior written

them and only the balance, if

approval of the first

any, shall be paid to the

charge holders in this

second charge holder.

regard.

6. Any

further

assistance

If X. Bank in its capacity as second

granted by us against the

charge holder take steps to enforce

security of current assets shall

the security for realisation of its dues

be secured by a first charge

consequent on default or breach

on the current assets of the

committed by the borrower after

borrower ranking above the

giving notice to and obtaining proper

charge in favour of X Bank.

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

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

preservation of assets and

obtaining insurance without

enforcement of security in

marking

case of surplus out of the

their

interest

in

polices.

realisation

8. Borrower shall not make any

prepayment to X bank in
discharge of its credit facilities

available

for

distribution is payable to the X

second charge holders.
11. X Bank and borrower shall

unless all monies due by the

enter

borrower to us as first charge

agreement/arrangement with

holder are paid in time.

the first charge holders for

9. Any compensation received

for the acquisition or for loss
destruction

of

the

current

assets shall be paid first to us,

into

an

inter-se

giving effect to the above

stipulation

and

for

other

incidental matters.
12. The

copies

of

relevant

as first charge holder and only

documents to be executed by

the surplus if any can be paid

the borrower in favour of X

to the X Bank, in satisfaction

Bank shall be forwarded to

of its second charge.

the first charge holders for

10. X Bank shall agree to share at

their perusal and records.

a pro-rate basis the expenses

Our approval is also subject to

incurred by the first charge

your

holders towards the payment

approval

of

charge holders, if any.

insurance

Yours faithfully
.

premium,

obtaining
from

similar
other

first

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

his/her the borrowers lands

day of

and

Mr. .

properties

(Day)

borrower with XYZ Bank on

(Month

&

Year)

other
by

immovable
his/her

the

Proprietor/Partner/Director

with an intention

to create and security on the

.. (Name

said

of the concern with residential

immovable

/ Registered office address)

together with buildings and

other structures, fixed plant

.. (hereinafter

and machinery, fixtures and

called the borrower) attended

fittings

the office of XYZ and saw

erected or installed thereon,

Mr

both

of XYZ Bank.

(herein after referred to as the

2. The said Mr. ..

. stated for
himself

on

behalf

of

the

borrower that the documents

lands

and

other

properties

now
present

constructed,
and

future

said immovable properties) for

securing the due repayment
and discharge by the said
borrower to:

of title, evidences, deeds and

XYZ bank of its loan of

writings

particularly

Rs...

the

together

with

Schedule here under written

compound

interest

(hereinafter called the said

additional interest in case of

title deeds) in respect of

default, liquidated damages,

described

more
in

First

interests
and/or

commitment charges, premia

Working

on

on

aggregating to Rs.

charges

granted/to be granted by IOB

prepayment

redemption,

or

costs,

capital

facilities

expenses and other monies

together

with

including any increase as a

compound

interest

result

of

additional interest in case of

devaluation/fluctuation in the

default, liquidated damages

rate of exchange of foreign

commitment charges, premia

currencies involved, payable

on prepayment or redemption

by the borrower to XYZ Bank

costs charges, expenses and

under the respective Loan

other monies including any

Agreement / Sanction Letter.

increase

3. Mr.

(The

said

Borrower)

accorded
assent

and
and

gave

oral

consent

to

Mr
of XYZ Bank
acting for itself and as agent
of

Indian

Overseas

as

interest
and/or

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.

Bank

4. Whilst giving such oral assent

(IOB) to hold and retain the

and consent on behalf of the

said title deeds as and by way

said

of

Mr

equitable

mortgage

by

borrower.

deposit of title deeds, by

stated

constructive

delivery

as

created in favour of IOB shall

security also

for the

due

rank equal and pari passu

repayment and discharge by

with subject and subservient

the said borrowers to term

to

loan:

created in favour of XYZ

the

bank.

that

the

mortgage

mortgage

already

5. Mr

Resolution

passed

by

the

Board of Directors of the

Further stated that he is the

Borrower company at their

Director

meeting

of

the

borrower

held

company and he gave such

on.a

oral assent and consent on

nd he produced a copy of the

behalf

said

of

the

borrower

resolution

to

Mr.

company in the capacity as a

of

Director

borrower

XYZ bank and further stated

company, which is the owner

that the said Resolution had

of

not

of

the

the

said

immovable

been

modified

or

properties according to their

rescinded and that the same

nature

were in force and effect.

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

7. MR.(

The

said

borrower

reassured and declared that

the

said

deposited

title
by

deeds

so

him/her

the

borrower company with XYZ

Bank

were

documents

of

the

only

the

deeds

relating to the said immovable

properties

and

borrower/company

the
had

said
a

clear and marketable title to

while giving such oral assent

the

and consent stated that he

properties.

was authorised to do so by a
*Strike out which ever is not applicable

said

immovable

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

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 .. (Borrowers 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/Borrowers 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

acknowledgement due.

to

the

Registering

Authority

by

Registered

post

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

NoDatedOffice

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 subclause (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 Cooperative 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
Extension of Delivery period
Early Delivery
Cancellation
Substitution of Bills for TTs
Substitution of TTs for Bills
Changes in contract Usance

DETAILS

Others

After the changes the contract now stands as

FPC FSC Amount
No.

No.

Payable Usance

Rate

DA/DP

Rupee

Delivery

Equivalent

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 15 th

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 BORROWERS 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 Banks 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
Stamp

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.

we

regret

to

inform

you

to

shri/smt

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 banks right over the
securities, if any, furnished by the deceased will not be prejudiced by this
undertaking.

*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

door/plot no.

to tax /

name of street,

Kist

village and Dist.

Boundaries

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
(Borrowers 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

(Borrowers Name & Address)

From

Place:

Date:

To
Indian Overseas Bank
. Branch

Dear Sir,
REQUEST FOR DISCOUNTING BILL(S) IN FOREIGN CURRENCY BILL
NO..DTFORDRAWN

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 Banks 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
FURTHER
DETAILS,
IF ANY
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

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 cooperate 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.

to be certified by branch official

For creation of equitable mortgage by

deposit of certified copies of the title

as mentioned below, if the

executant does not know English.
-

S/o

Delete the inapplicable portion.

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

institution

an

under

approved
the

Rediscounting

Bills

time for rediscounting of the bills

Scheme

(hereinafter referred to as the

Scheme

granting to us limits from time to

operated

by

you,

by any of our offices.

2.

present the bills at an office of

Industrial Development Bank of

IDBI for rediscounting and to take

India (hereinafter referred to as

back

IDBI), and accordingly we are

from

sales

notes
of

such

bills,

their maturity.

arising

indigenous

of

days before the range dates of

in respect of bills of exchange

promissory

delivery

against payment three working

eligible for rediscounting, facilities

and

The Scheme requires us to

3.

With a view to streamlining

machinery and discounted by us

the procedure, IDBI has now

(hereinafter

of

proposed to relax the present

reference called the bills): for

requirement of lodgment of the

this purpose, IDBI has been

bills with it and permit us, as an

for

facility

approved Institution, to hold the

i)

We shall, instead of

bills with us as agent of IDBI and

presenting the bills to IDBI,

that, on a declaration made by us

as

that we hold, on behalf of IDBI as

under

its agent, the bills duly endorsed

endorse them in favour of

by us in favour of IDBI. IDBI will

IDBI an retain them with

pay to us the discounted value of

us on behalf of IDBI as its

the bills and that further, we will

agent. In regard to such

retire the bills by making payment

bills, we shall furnish to

thereof to IDBI, three working

IDBI, a declaration in a

days before the date of their

form

maturity.

approved by IDBI, that we

NOW

THIS

THAT

INDUSTRIAL

relax

the discounted value of the

bills

covered

by

such

declaration.

the

requirements of the Scheme that

such

make payment to us, of

to

us, and also in consideration of

to

of

its part so to do, arrange to

rediscount the bills tendered by

agreeing

receipt

without any obligation on

time, for rediscounting of bills and

IDBI

manner

declaration, IDBI may, but

to sanction us limits from time to

thereof,

and

On

DEVELOPMENT

pursuance

Scheme,

behalf of IDBI as its agent.

OF

BANK OF INDIA having agreed

in

the

aggregate face value on

IN

CONSIDERATION

required

hold the bills of particular

AGREEMENT

WITHNESSES

presently

ii)

We shall

we should present the bills for

IDBI,

rediscounting and retire them

working days before the

before

respective

maturity,

we

hereby

not

pay to

less

three

dates

of

undertake to and agree with IDBI,

maturity of bills, an amount

as follows:

equal to the face value of

such bills and then, acting
as

agent

of

IDBI,

re-

endorse the bills back in

statements

our favour.

required by them,

iii)

The

vii)

on us.
further

any

agree

other

documents
declarations
also

as

under

bills

similar right of inspection

in respect of bills held by
us

on

its

account

as

aforesaid.

Scheme.
viii)

We shall forward to
IDBI and RBI such of the

obtain loans and advances

bills

from the Reserve Bank of

covered

by

our

declarations as they may

India (RBI) against the

require form time to time.

security of such bills, we

shall, if so required by

the

RBI shall also have a

the

We enable IDBI to

authorised

account and other papers.

such

purpose of rediscounting
bills

its

and the relative books of

hitherto

furnish

of

IDBI under the Scheme

certificates,

be required by its, for the

v)

be

rediscounted by us with

supporting

other information that may

the

shall

officials,

that we shall forward to

and

IDBI

entitled to inspect, through

We

IDBI,

from

such bills.

conditions laid down in the

iv)

may be

time to time, in respect of

other

Scheme shall be binding

as

ix)

We hereby further

IDBI, make a declaration

agree and undertake that

to RBI to the effect that we

we shall indemnify IDBI in

shall thereafter hold the

respect of any loss or

bills on account of RBI.

damage

vi)

We shall submit to
IDBI

and

RBI

such

that may be

suffered by it on account of
its paying to us (on the

strength of our declaration

subsequently

in terms of clause (1)

defective or invalid for any

herein),

reason whatsoever.

the

discounted

value of the bills, which

may not be eligible for
rediscounting

under

Scheme or which

be

found

Yours faithfully,

the
may
ForBank,

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

promissory

notes

(as

listed

in

No dated

Annexure), for an aggregate sum of

. sanctioning a limit of

Rs

Rs

rediscounting

under the scheme of the IDBI, vide

facilities in respect of bills/promissory

Circular letter No.6358/OP/ 15/64-65

notes of industrial concerns.

dated the March, 10, 1965 as

for

2.We

forward

modified from time to time.

herewith
bills/ promissory notes (as listed in
Annexure)

which

may

be

rediscounted*. We hereby apply for

rediscounting

of

bills/

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

@
soid

and

by

on

bills/promissory
been

notes

despatched

has

by

the

selling agent to the purchaser

before

lodging

deferred payment basis and have

bills/promotes

been

discounting. We also certify

drawn/made/accepted/endorsed

that having discounted for the

by

full amount thereof we have

an

industrial

concern

as

title

to

with

the

defined under Section 2(c) of the

full

the

Industrial Development Bank of

bills/promissory notes.

us

for

said

India Act. 1964.

4.We further certify that the bill of

We

further

certify

exchange

promissory

that.

arising

have made full payment to the

transaction(s) have been duly

manufacturer

the

stamped and property executed

the

and the same have been properly

discounting of bills/promissory

endorsed in favour of IDBI by the

notes. We also hereby certify

authorised official(s) of our bank.

machinery

for
prior

to

out

of

the

notes
said

that

are financially sound, solvent

5.We hereby declare that as

and creditworthy and as such,

authorised by you we hold on

their signature(s) appearing

your behalf as your agent the

on

afore said bills/promissory notes

the

said

bills

of

exchange/promissory

notes

is/are

good

genuine

signature(s).

and
We

till they are refried.

have

satisfied ourselves that the

machinery covered by the

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.

Give number of bills/promotes.

@ Give name of manufacture.

yours faithfully,

Give name of authorised selling

agent

distributor

of

imported

machinery
(Signature of authorised official)
* 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

. under the Scheme

no dated

of the IDBI vide Circular letter

sanctioning a limit

No. 6358/OP.15/64-65 dated

of Rs. for rediscounting

the

facilities in respect of bills/promissory

modified from time to time.

notes of industrial concerns.

March

10,

1965,

as

2. We hereby certify that the

1. We forward herewith

aforesaid

bills/promissory

. bills /

notes arose out of bonfide

promissory notes (as listed in

commercial

Annexure)

be

transactions(s) relating to sale

hereby

of indigestions machinery /

which

rediscounted.

may

*We

apply for rediscounting

or

trade

of

equipment by $

on deferred payment basis

bills/promissory

have been drawn / made /

notes

(as

listed in Annexure ) for an

accepted/endorsed

aggregate

of

Industrial concern as defined

Rs

under Section 2 (c) of the

sum

by

an

industrial Development bank

executed and the same have

of India Act, 1964. We also

been properly endorsed in

hereby

favour

certify

that

of

IDBI

by

the

authorised official(s) of our

are financially sound, solvent

bank.

and creditworthy and as such,

their signature(s) appearing
on

the

said

bills

of

exchange/promissory

notes

is/or

good

genuine

and

signature(s).

We

have

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.

satisfied ourselves that the

5. We request that the amount of

machinery covered by the

bills/ promissory notes (less

bills/promissory

has

discount) may be paid to us

been

notes

despatched

by

the

by cheques drawn on the

manufacturer-seller

to

the

Reserve bank of India for

purchaser before lodging the

bills/pronotes

with

us

credit to our account,.

for

discounting. We also certify

Your faithfully,

that having discounted for the

full amount thereof we have
full

title

to

the

said

(Signature of authorised official)

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

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

under the Scheme

dated sanctioning a limit of

of the IDBI vide Circular letter

Rs.

no.6358 / OP .15 /64-65 dated

for

rediscounting facilities in respect of

the

bill/promissory notes of industrial

modified from time to time.

concerns,
2.We

3. We
forward

herewith

March

10,1965

as

hereby certify that the

aforesaid

bills/promissory

notes arose out of bonafide

.X bills/promissory notes

commercial

(as listed in Annexure) which

transactions(s) relating to sale

may be rediscounted. We

of

hereby apply for rediscounting

equipment manufactured by

of

X bills/ promissory notes (as

and sold by .

listed in Annexure) for an

on deferred payment basis

aggregate

have been drawn / made /

sum

of

Rs.

Indigenous

or

trade

machinery/

accepted / endorsed by and

4. We further certify that the bills

Industrial concern as defined

of

under Section.2

notes arising out of the said

(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

exchange/

promissory

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.

as such,

5. We hereby declare that as

their signature(s) appearing

authorised by you we hold on

on the said bills of exchange/

your behalf as your agent the

promissory

aforesaid

notes

genuine

is

and

signature(s).

or

good

We

bills/

promissory

notes till they are returned.

have

satisfied ourselves that the

6. We request that the amount of

machinery covered by the

bills/promissory

bills/promissory

has

discount) may be paid to us

by

the

by cheques drawn on the

manufacturer sellor to

the

Reserve Bank of Indian for

been

notes

despatched

purchaser before lodging the

bills/promotes

with

us

notes

(less

credit to our account.

for

Yours faithfully

discounting. We also certify

that having discounted for the
full amount thereof we have
full

title

to

the

bills/promissory notes.

said

(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

under the Scheme of the

Rs.

IDBI

for

rediscounting

vide

Circular

letter

facilities in respect of bills/promissory

No.6358/OP. 15/64-65 dated the

notes of industrial concerns.

March 10, 1965, as modified from

2.We

forward

herewith

..

bills/

time to time.
3.We

hereby

certify

that

promissory notes (as listd in

aforesaid

Annexure)

arose out of bonafide commercial or

which

may

be

bills/promissory

the

rediscounted. We hereby apply

trade

for rediscounting of ..

indigenous

bills/promissory notes (as listed in

and sold by ..X

Annexure) for an aggregate sum

and on deferred payment basis have

of

been

Rs.

transitions(s)

notes

machinery/

relating

to

equipment

drawn/made/accepted/

endorsed by an Industrial concern as

transaction(s) have been duly

defined under Section 2. (c)of the

stamped

Industrial Development bank of India

executed and the same have

Act.1964. We further certify that the

been properly endorsed in

machinery was got manufactured

favour

according to and specifications of

authorised official(s) of our

bank before discounting them.

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

and

of

IDBI

properly

by

the

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.

are financially sound, solvent and

6.We request that the amount

creditworthy

their

of bills/ promissory notes(less

signature(s) appearing on the said

discount) may be paid to us

bills of exchange/promissory notes

by chequs drawn

is/or genuine and good signature(s).

Reserve Bank of

We have satisfied ourselves that the

credit to our account.

machinery

and

as

covered

bills/promissory

notes

such,

by

the

has

been

on

the

India for

Yours faithfully

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

(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

1. The Borrower shall repay the

Soft

Loan

in

half

requesting for financial assistance

yearly/quarterly instalments of

under the captioned scheme. The

Rs.

Small Industries Development Bank

commencing from

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

2. The

Borrower

shall

each

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

(hereinafter referred to

3. In the event of default in the

as bank) acting as agent of SIDBI,

payment of instalments of the

on

Soft Loan interest, or any post

the

conditions:-

following

terms

and

ponement thereof allowed by

SIDBI/Bank,

such

subject

to

which

financial

has

been

instalment(s) and arrears of

assistance

interest

sanctioned by the Bank, the

unless

otherwise

agreed by SIDBI, shall carry

Soft

interest at a rate which shall

interest computed at the rate

not exceed the rate of interest

applicable to the normal loans

applicable to normal loans

of SIDBI and other moneys

lent and advanced by SIDBI

shall

at the time of such default or

payable forthwith and SIDBI/

postponement.

Bank shall be free to invoke

4. All the terms and conditions

including

any

restrictive

conditions on the Borrower

applicable to the term loan(s)
sanctioned by the Bank for

Loan

such

together

become

with

due

remedies

and

as

are

available to it to recover the

said

amounts

from

the

Borrower.
7. The

rights

and

powers

the project unless specifically

reserved to SIDBI under this

excluded

shall,

letter shall be exercised either

mutandis, apply to

by itself or by the Bank. The

mutatis

by

SIDBI,

the Soft Loan.

powers so exercised either by

5. The Borrower shall furnishreports / information to SIDBI,

Bank

periodically

at

such

intervals and in such form as

may be required.

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

6. In the event of the Borrower

the Borrower shall be bound

committing any breach of the

to

terms

conditions

instructions as may be given

contained in this letter or any

by the Bank from time to time

of the terms and conditions

in

and

comply

pursuance

with

of

such

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

Yours faithfully

person

authorised in this behalf in

(Authorised signatory)

token of your acceptance.

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 Companys 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 borrowers

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 fianc 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 BANKS LETTER TO BORROWER

(Rs. in Lacs)

Existing
BANKS

Working
Capital
Limit

Revised Cash

Working

Credit
Component

Capital
Demand Loan

(CCC)

(WCDL)

(75%)

(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)
To
Date
.
.
.

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

4.

S.F.No. / T.S.No.

Village / Block

Taluk / Ward

District / Municipality

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

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

Pinth

Area

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

3. Year of Construction

4. Age of the building

Years

5. Total life of the building estimated

Years

6.Depreciation percentage assumed

sq.ft.

(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

Description

Repl. Value

II C

Depreciation

Net value

GF

Rs.

Rs.

Rs.

FF

Rs.

Rs.

Rs.

Total

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.

Rs.

Less : Depreciation
Net Value

.
.

PART IV AMENITIES
1. Wardrobes / showcases / False
Ceiling works

Rs.

Rs.

Rs.

5. Interior decorations / wall paneling works

Rs.

6. Architectural elevation works

Rs.

7. Aluminium doors / windows /hand rails

Rs.

2. Ceramic tiles in Toilet & Kitchen

3. Extra sinks/bath tub /geycer/wash
Basins / etc
4.Marble flooring/ceramic tiles flooring or any

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

constructing/acquiring a house/flat at

customers To be given by NRI to an

(location).

Indian citizen resident in India)

AND WHEREAS I am not in a

KNOW ALL MEN BY THESE

position

PRESENTS THAT
I/Mr.

...
S/o D/oW/o
aged years, a
Non-Resident Indian now residing at
..
nominate,

appoint

executed

the

loan

document, and create mortgage in

Miss./Mrs

hereby

to

constitute

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.

and

Now by this Deed for Power

of Attorney, I hereby appoint

Son Daughter/ Wife of

residing

Daughter/Wife of ..

at.

as my

as my attorney and expressly

Attorney in my name and on my

authorize to exercise the thereof in

behalf to do or execute all or any of

my name and o my behalf to do all

the

or an of the towing acts and things.

acts,

deeds

and

things

hereinafter mentioned that is to say;

Son.

1. To apply for loans under the

WHEREAS, I, intend availing

housing schemes of INDIAN

loan from Indian Overseas bank

OVERSEAS BANK (IOB) as

...

also any further or additional

branch (hereinafter called Bank for

loans to IOB for such amount

as the Attorney may deem fit

and for that purpose to pay

behalf the necessary lees if

the processing fee/s and sign

any

the loan application/s in my

leviable in respect of the said

name and on my behalf and

loans.

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

for availing of the said loan/s

from IOB and from time to
time of follow up the said loan
and

do

such

other things and deeds as

may be necessary in relation
thereto.
2. To

accept

letter/s

the

and

loan

offer

sign

the

acceptance/s thereof in token

of my acceptance of the terms
and

conditions

other

charges

3. To request IOB or agree with

IOB

for

any

modification

in

change
the

or
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

writing required or necessary

application/s

and

therein

contained and to pay on my

of the said loan/s and for that

purpose

give

effectual

discharge and given all the

necessary
documents

information
to

assist

and
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 IOBs

financial assistance with IOB

by deposit of Title deeds as

repayment of the said loan/s

security for the repayment of

any other writings whatsoever

the

required in respect of the said

loan/s

granted/to

be

granted by IOB to me.

transactions

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

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

creating a security on the said

agreement/s promissory note,

property/ies

of

letter/s

of

indemnity

equitable

by

way

mortgage

of

declaration
or

such

documents

the Attorneys fully authorized

required by IOB in respect of

to make these statements and

the said loan/s.

create

my

intentions

security

property/ies
property/ies

on

or

to
my

any

other

he/she

may

book/buy on my behalf.

may

other

repayment of the said loan/s.

convey

as

and
be

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

7. He/she is further authorized to

any other person, as IOB in its

make any other statements

sole discretion may decide,

necessary to create equitable

legal mortgage in any form

mortgage by deposit or little

including in the English from

deeds and also to execute

of the property/ies.

any

writings,

undertakings,

indemnities, etc on my behalf

in respect of mortgage of the
said

property/ies

guaranteeing

or
of

10. To acknowledge my liability

debit in respect of the loan/s.

the

11. To book a flat/s residential

the

unit/s on my behalf and to

execute Agreement/s for sale

a Limited company or an

for the same with any builder

Association

seller and make payments to

Owners and become member

him therefore and to present

thereof participating in all the

such

for

meetings and proceedings in

the

all

Agreement/s

registration

before

appropriate

Register/Sub-

the

of

Apartment

meetings

and

proceedings form time to time,

Registrar of Assurance or any

obtain

other authority at any place or

and/or other document issued

places in India as may be

in my name and hold the

necessary.

same as my attorney and

12. To admit execution of the

Agreements/s

for

share

certificates

obtain possession of the flat/s.

Sales

16. To open and or operate Bank

before the said Registrar/Sub-

Account in any Bank in India

Registrar of Assurance or any

in my name both resident as

other authority as may be

well

required for the purpose.

account may be operated in

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.

as

nonresident.

The

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

15. To sign form, documents and

statement or writing of my

the

said Attorney in pursuance

purpose or registration of Co-

hereto shall be deemed to be

papers

required

for

operative Housing Society or

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

which

a Limited
Company having registered Office at
represented by Mr.
(hereinafter called the
Appointers,

which

include

their

assigns)

in

term

shall

successors

and

favour

of

Indian

Overseas Bank, a body corporate

constituted

under

WHEREAS
Attorneys

all

their

Appointers
equipments/

Machineries let by the Attorneys on

his

purchase/lease

together

with

the

agreements
book

debts,

outstanding and claims as security

for the credit facilities availed from
the Attorneys.

companies (Acquisition & Transfer of

accordance

Undertakings)

sanction letter(s)

having

the
the

AND

1970

include

have hypothecated in favour of the

Banking

Act,

the

shall

successors and assigns)

.
On this .. day of

terms

WHEREAS
with

the

terms

in
of

the Appointers

Central Office at 763, Anna Salai,

have agreed to irrevocable constitute

Chennai 2 and amongst other

and appoint the Bank to be their true

places

of

and lawful. Attorney to do and

(hereinafter called the Attorneys

execute for in the name and on

having

Branch

office

behalf of them all or any of the

following acts, deeds and things l.e.

courts any compromise any

to say:

disputes, claims and actions

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

purchase/lease

the

hire

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

compromise

of
any

proper

to

disputes,

claims and actions or refer

them to arbitration and to take
proceedings

for

filling

in

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

them now or in future are free

favour of the Attorneys till all

from any prior charge, lien,

the dues of Appointers to the

attachment or encumbrances

Attorneys are to be satisfied.

or any kind.

5. The powers under this Power

7. To execute and sign all such

of Attorney may be exercised

deeds and generally due to do

by the Attorneys in its sale

all lawful acts necessary for

discretion but the exercise of

the

the powers is not obligatory of

purposes and acts.

above

the Attorneys.
6. The

mentioned

APPOINTERS

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

The common seal of

.

Ltd.

has hereunto been affixed on the

day and year hereinabove written
in the presence of

contract in favour of any

In pursuance of the Resolution of

person or bank and that the

the Resolution of the Board of

monies,

Directors dated

bills

and

dues

payable to and recoverable by

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

deemed to include its successor and

the

permitted assigns) of the THIRD

borrower-

(hereinafter
Lessor

leasing

referred

which

company,

to

as

expression

the
shall,

unless repugnant to the context or

PART.
WHEREAS:

meaning thereof, be deemed to

A. The Bank has sanctioned to

include its successors and permitted

the Lessor a credit facility by

assigns) of the FIRST PART, (2)

way

name

9hereinafter referred to as the

of

(hereinafter

the

Lessee

referred

as

cash

Credit

the

said Facility to the extent of

Lessees. Which expression shall,

Rs (Rupees

unless repugnant to the context or

only)

meaning thereof be deemed to

against

include its successors and permitted

hypothecation deeds dated

assigns) of the SECONDPART, and

. execute by the

(3) Indian Overseas bank, a body

Lessor in favour of the Bank

corporate

(hereinafter referred to as the

constituted

to

company

of

Under

the

Banking companies (Acquisition and

the

security

of

said hypothecation deeds)

Transfer of Undertakings) Act 1970

(5 to 1970) having its Central Office

B. The lessor is engaged in the

at 736, Anna Salai, Chennai 600

business of giving on lease/

002 or a branch office, amongst

hire

other places at .

articles/equipment to various

(hereinafter referred

parties.

to as the bank, Which expression

shall,
context

Unless
or

repugnant

meaning

to

the

thereof

be

C.

purchase

machineries/

In the course of such

leasing business, the Lessor
has given on lease to the

Lessee,

the

Machineries/

by the Bank, the Lessee has

equipment

also agreed and undertaking

(hereinafter referred to as the

to deposit the lease rentals

said

payable

articles

equipment)

hypothecated

to

the Bank

under

accordance

and

with

the

in
said

mentioned in the schedule

lease deed directly into the

hereunder as per the terms of

account of the Lessor with the

lease deed dated

Bank.

.. 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

F. The parities therefore being

desirous

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

reducing

agreements

their

between

themselves into writing, have

entered into this agreement in
the

considered

of

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

irrevocably

undertake

hereby
to

and

agree with the Bank as follows;

1. The

Lessor

hereby

the Lessor under the said

irrevocably

facility or any other money

the bank as its lawful

owner by the lessor to the

attorney and expressly

Bank.

authorizes in exercise

E. In consideration of the said

facility agreed to be provided

appoints

of the following and

expressly authorize in

exercise f the following

claims demands and

powers

without

disputes and refer to

the

arbitration and to adjust

but

prejudice

to

generality thereof in the

and

name of the lessor and

compromise all actions,

on behalf of the Lessor

suits and demands and

to do all or any of the

to do and execute such

following

papers, documents or

thing,

acts

and

namely:

demand,
recover,

to

collect,
receive

settled

things

as

and

shall

to

be

deemed necessary of

and

expedient, and all and

effectual

whatsoever the Bank

benefited, discharge or

shall do or cause to be

rents, claims, dam age

done by virtue of this

and

agreement

give

all

amounts

or

in

payable to the Lessor

exercise

of

these

under the said lease

powers,

the

Lessor

deed by

the Lessee.

hereby agrees to ratify

The Bank shall have

and confirm and this

further power (through

power of attorney shall

not obligatory) to take

not be revoked without

and

the written consent of

use

all

proceedings

lawful
and

means of recovering
and receiving the lease
rentals,
damages
amount

claims

and

and

all

and

to

commence and/or file

and to prosecute and
defend all action, suits,

the bank.
2. The

Lessee

confirm

that

hereby
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

such

said

hypothecation

may be required by law

deed. The Lessee shall

to the full extent of their

not have any objection

value thereof with the

for inspection of the

insurance

said equipment of for

approved by the Bank

taking possession

of

in the joint names of

machineries/

the Lessor, Lessee and

articles by the Bank in

Bank, with a Bank or a

the

Mortgage clause and

the

exercise

of

its

other risks as

powers under the said

the

hypothecation

forthwith

The

Lessee

deed.
hereby

undertakes and agrees

to maintain the said
machineries/articles/eq
uipment
condition

in

good

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
equipment

machineries/
/

articles

insured against fire and

company

Policies

shall

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
undertakes

and
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 Lessors account

and

such

shall

be

payments

by the lessess thereto,

the

good

Bank

shall

discharge against the

entitled

Lessor

possession of the said

as

if

the

to

be
take

amounts were paid to

equipment

the Lessor directly.

exercise all other rights

said lease deed and in

any time, have any

that

right, and if there is any

shall be deemed to be

Walves in favour of the

in trust on behalf of the

setoff,

Bank shall be free to

counter-claim,
recommend

and/or

adjustments

against

the

lessor, the

equipment

and

physical

of the said equipment

expressly
of

event,

custody by the Lessee

such right, the Lessee

Bank,

to

of the Lessor under the

4. The Lessee shall not at

hereby

and

deal

with

equipment

the

said

in

such

manner as it may deem

said

appropriate.

the

lease rentals payable

SCHEDULE OF MACHINERIES /

in respect of the lease

EQUIPMENT ARTICULES

of the equipment. Until

(DETAILS)

all amount due to the

Bank shall have been
fully

paid

discharged

and
by

the

Lessor.
5. The

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

Lessee

also

hereby declares that in

the event of any breach
of the said lease deed

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. Beneficiarys 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

at

do

(s),

residing

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.

declarations

hereby

and

confirm

statements

that

the

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 representatives 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
Stamp
GUARANTEE FOR CASH CREDITS, ETC

To
Indian Overseas Bank
..
Gentlemen,

1.

I / we in consideration of your

by granting to him / them an

agreeing at my / our request to

advance by way of cash credit

give. Of .

or

(hereinafter referred to as the

undersigned

principal) time for repayment of

jointly and severally guarantee

his / their dues to the bank upto

the

this

exceeding in the aggregate the

date

and

further

for

otherwise,

payment
of

upto

we

but

the

not

continuing to make loans or

sum

advances or otherwise giving

converted Rupee Term Loan

credit to him / them whether by

and of all monies (which terms

advancing him / them monies or

shall

by allowing him / them to

advances already received by

overdraw his / their account or

the principal and all interest due

include

the

of

principal

or to become due in respect of

due on the said account and

the said advances from the

whether or not from time to time

original or first of the date or

there be nothing owing on the

dates of the advances until

said account or the same be

repaid at the rate charged by

from time to time brought to

you from the time of such

credit.

advances

with

monthly

quarterly / half-yearly rests and

your usual bankers charges)

3.

And I / we hereby consent

which are now or shall at any

and authorize and declare that,

time

the

you may at any time or times

continuance of this guarantee

and at all times grant or allow

be due from the principal to you

time

either for loans or advances in

compound with the principal or

respect of which the principal

me / us without affecting this

shall or may be solely or jointly

guarantee

with others liable to you and of

compositions

and

payments

all costs, charges and other

received

you

from

expenses which you may incur

principal or from any other

in

person or persons, firm or

hereafter

enforcing

during

or

obtaining

payment of all such.

or

indulgence

and
by

to

that

or

all
the

company or his or their estate

or estates shall be regarded for
all purposes and payment in

2.

And I / we expressly declare

gross and you shall be entitled

that this guarantee shall be a

to prove against the estate of

continuing guarantee to you for

the

any amount from time to time

principal become bankrupt or

not exceeding as aforesaid the

insolvent in respect of the whole

sum of..or converted

of the principals indebtedness

Rupee Term Loan together with

to you without any right on the

interest and charges thereon

part of me / us on any or either

principal

should

the

of us or my / our or any of my /

until cancelled by me / us and

our

any

shall continue to be binding

representatives of any or either

notwithstanding any changes

of us to stand in your place in

which may from time to time

respect of or to claim the

take place in the partners or

benefit,

such

constitution of my / our firm or in

compositions or payments or

the partners or constitution of

any security held by you until

the principal.

representatives

of

or

any

you shall have received the full

amount

of

all

your

claims

against the principal which are

6.

And I / we further agree that

covered by this guarantee and

nay entries which may be in

that this guarantee shall apply

your Banking Books kept by

to and secure any ultimated

you and made in the ordinary

balance which shall remain due

course of Banking business

to you within the limit aforesaid.

may be adduced by you and

shall be conclusive evidence
against me / us or any or either

4.

And it is expressly provided

and

declared

that

of us and my / our or any or

this

either of our representatives or

guarantee shall not be affected

representative of the various

by your taking or varying of

transactions therein contained

giving up any securities held by

and of the amounts from time to

you.

time hereby appearing due from

the principal to you and shall
not be disputed or questioned

5.

And I / we further declare that

by me / us or any or either of us

this guarantee shall not be

and my / our or any or either of

affected by my death / our or

our

any of our death but shall

representative.

remain in full force and effect

representatives

or

in force until cancelled by my /

7.

our

And I / we further agree that

after

the

to this guarantee and secured

shall be due and payable to you

demand

authority,

amount then due to be subject

the amount hereby guaranteed

on

written

thereby.

notice

requiring payment of the same

shall have been delivered or
sent

though

the

post

by

10.

declare that this guarantee and

registered letter addressed to

me

us

at

representatives

my

last

known

And I / we hereby expressly

the

our

powers

and

provisions

herein contained are in addition

to and not by way of limitation

place / places of abode or

of or substitution for any former

business in

or

other

guarantees

or

guarantee heretofore given to

8.

you by me / us (whether jointly

The guarantee shall bind my /

our

representative

with some other persons or

heirs,

alone) and now existing un-

executors and administrators

cancelled

and shall be enforceable by you

and

that

this

guarantee is not intended to

and your assigns.

and shall not revoke or limit

such

other

guarantee

or

guarantees.
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

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

further agree that in making an

award which may be obtained

acknowledgement or making a

by you against the principal by

payment he shall be treated as

debtor shall be binding on me /

my / our duly authorized agent

us and I / we accept the

for purpose of Indian Limitation

correctness of any statement of

Act of 1963.

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

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)

Irrevocable Undertaking to Guarantee

(Directors who are Guarantors)

(should be stamped as an agreement)

Stamp

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 /
companys 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

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

Credit facility

No

(Signature of Chartered accountants)

Limit Rs.

Present outstanding
Rs.

PART VI
IMPORTANT CIRCULARS ON DOCUMENTATION

IMPORTANT CIRCULARS ISSUED BY CENTRAL OFFICE REGARDING

DOCUMENTATION

General managers circular No.21

when further advances are granted in

of1983 dated 3-12-83

the same account the particulars of

the documents taken should also be
entered in the Register.

Revival of Documents-cumDocuments due date Register

It is needless to emphasize that
proper recording of this register and
our

follow-up will avoid the documents

Miscellaneous Circular No.22 (File

getting time-barred under the Law of

7e) of 1983 dated 15-11-1983. In

Limitation and at the same time

order to ensure timely action for

ensuring compliance of our instruction

renewal / revival of the documents to

under para 92 Chapter IX of the

avoid documents getting time-barred.

Banks Book of Instructions.

Reference

The

in

format

enclosed

for

invited

of

the

to

Register

information

of

in
the

Branches.

Apart

from

the

above

Register,

Branches should also maintain a

diary as per format enclosed for
Branches are, therefore advised to

timely action.

introduce this register with effect from

1-1-84. The details of all the existing
documents in respect of advances

Branch Managers should also submit

sector-wise are to be entered in the

a certificate to the Regional Office

register account-war including the

with

revival letters / confirmation letters

Department. Central Office, every half

obtained by the branches. As and

year as at the end of March and

copy

of

Credit

Control

September in the format appended.

(Rs.74) sent by the branches to the

This certificate is in addition to the

Credit Control Department.

existing Managers Certificate on form

AR 15.
Branches should note to scrupulously
follow the instructions contained in
I.hereby
certify

that

have

verified

the circular and maintain the Register

the

upto date. The Register should be

documents and confirm that all the

made avail able to the inspecting

documents are in force and renewed

Officials of Regional Office Central

in time by proper acknowledgement

Office

No documents is time-barred

inspectors should also verify the

for

their

scrutiny.

The

documents in consultation with the

Register maintained by the Branch
This will
Documents

be in addition

to the

and give a certificate along with the

Execution

Register

inspection Report to the effect that

the documents taken are in order and
enforceable.

Enclosure to GMs 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 GMs Circular No.21 of 1983 dated 3-12-1983

BRANCH

DOCUMENTATION CUM DUE DATE REGISTER

SI No. Name of Constitution

execution

Nature of

Name of

Date when

Date of

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

the borrowers and guarantors are

balance Revival Letter from

enclosed. These forms are numbered

Borrower and Guarantor

as F301(revised) and F301(b) and

Branches.advised.cum Misc.
Circular No.3 (File 7b) of 1975 dated

arrangements are made for preparing

forms for supply to branches.

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.

It is clarified further that the revival

letter

form

borrowers

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
lettersborrower 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

obtained

has

from
been

suitably.include reference to
the

In a receipt judgement the Madras

agreement

executed

by.apart from the pronote

executed by him so..revival
letter may be obtained for any type
ofirrespective

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

accounts.

for

all

personal

Branches

should

continue

obtain

confirmation.. for all Cash

3. To

Credit and overdraft except for loan

accounts

as

hitherto

from

letter

should

obtained.borrowal

confirmation

of

balance letter each year from

the

the guarantee at any for all

borrower however.confirmation of
balance

obtain

type

be

of

borrowal

accounts

includingaccounts.

accounts

including loan accounts, from

the

summarized

procedure

to

be..by branches is listed below

for the guidance.

Reference No. DEP 4/85 Date : 4-51985

1. To obtain revival letter in form

F

301

(revised)

from

the

Issuing Dept. : Law

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

237A

from

the

borrowers for all Cash Credit

accounts

and

overdrafts

except loan accounts.

Execution

and

Stamping

of

document for loans granted to

Non-Residents against NRF/FCNR
Deposits

Branches are frequently seeking our

guidance
aspect
account

about
of

loans

holders

documentation
to

NRF/FCNR

wherever

non-

resident depositors make a request

for

advance

deposits

from

against
their

their
place

own
of

residence. I.e. outside India. Similarly

As per section 19 of the Indian stamp

non-resident depositors offer their

act & Promissory Note executed

NRE/FCNR deposits as security for

abroad required to be stamped before

the advances granted to residents in

it is presented for the acceptance or

India in such cases branches send

payment or endorsed, transferred or

the documents, DPN etc to the non-

otherwise negotiated in India It need

residents by post for execution and

not be stamped when the Promissory

on receipts and letter of authority

Note is not so presented or endorsed

grant loans / overdrafts subject to

or otherwise negotiated.

exchange

control

regulations

branches seek clarifications as to

whether such executor of documents

The Madras High Court held in

mentioning the places outside India

Sivasubramame

and a date prior to the date of

kalankarayan Konal AIR 1941 MAD

availment would be valid.

868, that a promissory Note executed

Thevan

vs

at Colombo which was stamped with

the British India Stamp is required to
There is no bar to get the documents

be stamped again under section 18 of

executed outside India mentioning the

the Indian stamp act But this view is

place of execution and date it there

dissented from by the Punjab High

and to release the loans subsequently

court in Rattan Chand Birod Ram vs.

on receipt of the executed documents

Kharail Rama Nand Lal AIR 1955

in terms of section 18 of the Indian

Punjab 88, where it is remarked that

stamp act branches should affix 20

of an Indian stamp is already on the

paise revenue stamp on the duly

Promissory Note it will not require a

discharge deposit receipt near the

fresh stamp subsequently the Madras

depositors signature and cancel the

High Court also held in Senal vs R.N.

same with in 3 months form the date

Chinnaiah Konar (1969) I MLO 90

of receipt of the documents in India.

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.

In the circumstances explained in the

preceding paragraphs branches are

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

advised to affix the Indian revenue

stamp of required value on the duty
discharged deposit receipt as well as
on

the

DPN

documents

are

as

soon

as

the

received

by

the

branches in India.

again affixing the India Revenue

Stamp to the same.

Regarding
regulators

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

the
RBI

exchange
approval

control
and

connected rules with regard to the

loans against NRE/FCNR deposits,
branches may seek the guidance of
the

international

Division,

Central

Office..

demand or before the time of filing the

Promissory Note along with the plaint
in a suit in India.

22.7.85

In view of the conflicting, judicial

decision, it is safer to affix the Indian
Stamp

on

the

Reference No. ADV.62/85 Dated :

promissory

Issuing Dept. : Credit Control

note

executed outside India irrespective of

the fact whether it already bears an
Indian Stamp or not.

Advance against National Deposit

Scheme

However branches are now instructed

to get the deposit receipt discharged

Preamble

by the depositor without specifying

any date on the reverse of the receipt,
in the column Receipt of Discharge

We refer to our Misc. circular Memo

No.256

(file

7c)

of

1984

at the time of granting advances.

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 9 th 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

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
specimen

to

mark
of

endorsed

our

letter

to

lien.

The

of

authority

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

1.

Whenever

credit

limit

sanctioned to a borrower is
Documentation

at

the

time

of

Enhancement of Limits

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

Preamble

Bank.

Branches have been advised the

2.1 In the case of advances to limited

procedure for obtaining documents

companies.

for enhancement of limits under paras

existing limit is enhanced or

94 & 94(a), chapter IX if book of

additional facility is sanctioned, it

instructions. It will be observed that

is not necessary to obtain fresh

for

or

documents for the total limits in

procedures

order to obviate disturbing the

outlined in both the paras 94 and

charge registered or security

94(a) are applicable (i.e.) taking

mortgaged. It is sufficient to take

documents either for the full limit by

documents

closing and opening the account or by

enhanced portion of the limits or

taking

the

the additional facility and file

enhanced portion of the limit. In order

application for modification of

to have a uniform procedure at all

charge

branches the following procedure in

charge respectively as the case

outlined for compliance by branches.

may be.

advances

partnership

to

proprietary

concerns,

documents

only

Operational instructions

for

or

Whenever

only

fresh

for

the

the

(additional)

2.2 If the advance is guaranteed by

supplementary narration should

the Directors in their personal

be recorded in the Tile Deeds

capacity or by third party the

Register, and confirmation letter

guarantee document must be

obtained as outlined in chapter

obtained only for the enhanced

X(G)

additional facility

instructions.

2.3 If the existing limit is already

4.

Para

16

of

Book

of

In the case of advances to

secured by mortgage of an

individuals, proprietary concerns,

immovable property, than for the

partnership firms, etc., (i.e. other

purpose

of

extending

than

mortgage

for

the

additional

the

enhanced

facility,

limited

companies)

whenever the limits (secured

other than by way of mortgage)

supplementary narration should

are enhanced or reduced, the

be entered in the Title Deeds

pronotes

Register specifying the amount

documents must be taken afresh

of further limit.

for the full limit. The old account

and

connected

in such cases must be closed by

transfer to a new account on the
3.

In the case of advance of

bases on the new documents.

individuals, proprietary concerns

Both the debit to the new

etc.

limited

account and credit to the old

companies, if the advance is

account should be treated as

secured by a mortgage of an

cash

immovable

Credits

other

than

property

the

transactions.
or

For Cash

Overdrafts,

the

documentation

borrower must be requested to

outlined in para 21. should be

issue a cheque against the new

followed in order to obviate

account equal to the outstanding

disturbing

security

in the old account, inclusive of

cases

interest to the date of closing,

procedure

mortgaged.

for

the
In

such

and the amount of cheque which

In order to extend the period of

must

the

limitation for filing a mortgage suit,

borrower should be credited to

branches were advised to deposit the

the old account. Where the

deeds within 12 years from the date

advance is guaranteed by the

of original deposit vide our misc.

third

guarantee

circular No.6 (file 7e) of 1966 dated 2-

document should be obtained for

9-1966 in the case of equitable

the full limit.

mortgages by deposit of the deeds As

be

endorsed

party,

then

by

this

procedure

formalities

to

involves
be

lot

of

completed

an

alternative procedure is suggested

below
PERMANENT

under

envisages

point

obtention

3.2
of

which
security

confirmation letter in lieu of redeposit

of
Reference No : ADV.219/86 dated :
29.9.86

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
Issuing Dept. : Organization and

where it is not possible to get the title

Methods

deeds redeposited by constructive

delivery (i.e. by entering supplemental
narration without disturbing the title
Mortgages-

deeds actually) before the expiry of

Procedure for extending the period

the limitation period. For Registered

of limitation

Mortgage the procedure is provided

Limitation

for

under (B).

Preamble
Operational instructions

2.3 Encumbrance certificate for the

A. Procedure to be adopted in all
equitable mortgages

period between the date of

earlier title deed narration and
the

supplemental

narration

should be obtained and kept on

record.
The procedure outlined below will be
applicable

for

equitable

mortgage by simple deposit of

If

there

is

any

intermediary encumbrance, the

matter

should

immediately

referred to sanctioning authority.

title deeds and also deposit

accompanied

with

Registered

Memorandum.

2.4 In the case of Limited Companies,

supplemental narration should
be

in

the

format

given

in

2.1 Supplemental narration should be

paragraph 18 of chapter X (G) of

entered in the title deeds register

the Book of instructions. On the

as per the format given in para

next day of the supplemental

16 of Chapter X(G) of our Book

narration,

of instructions. For the purpose

should be obtained from the

of entering this supplemental

authorized

narration, the mortgagor should

company as per the format given

call at the branch.

in para 16 of the Chapter X (G).

It

is

not

confirmation
signatory

necessary

letter
of

to

the

file

modification of charge since the

2.2 On the next day, confirmation

supplemental

narration

is

letter should be obtained from

entered only for the purpose of

the owners as per the format

extending the limitation.

given in the said paragraph

itself.

3.1 Branches

should

follow

the

2.

The period of limitation can be

procedure outlined in 2.1 to 2.4

extended by an endorsement by

above as far as possible

the mortgagor on the Registered

3.2 If for any reason, it is not possible

Mortgage

Deed

payment

of

interest.

The

as

to

principal

the
and

endorsement

to follow the above procedure to

should be made on any of the

entering

reverse pages of the Registered

the

narration

supplemental

and

obtaining

Mortgage

Deed

and

the

confirmation letter, alternatively

endorsement should be on the

the branch should take the

following lines.

security confirmation letter as

per the format appended to this
circular.

The

security

*I / we hereby confirm and

confirmation letter should be

acknowledge

filled in properly and signed by

indebtedness in the outstanding

Borrower

sum

Guarantor

over

of

my

our

Rs.

Revenue Stamp, as in case of

(Rupeesonly)

Revival Letter.

as on and further
acknowledge that the debt is
secured

by

this

Registered

B. Procedure to be adopted for

Mortgage and that the Mortgage

registered Mortgage

Security is in full force and

effect.

1.

Branch should not arrange for

redeposit of title deeds in the

Place :

case of Registered Mortgage.

Date :

Signature of Mortgagor

Staff Loan Accounts

If the Mortgage covers any
contingent

liability

or

non-

refunded liability like Letter of

Preamble

Credit or Letter of Guarantee,

the format of the endorsement
can be modified suitably under

Hitherto

branches

have

been

legal advice so as to make it as

obtaining revival letters for loans

an acknowledgement in respect

granted to staff members (other than

of the credit limit itself.

in case of Staff Housing Loans (SHL)

wherever warranted. Now it has been
decided to incorporate a suitable

3.

Alternatively,
should

take

the

branch

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

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.

Borrower / Guarantor should

sign on Revenue Stamps as in
the case of Revival Letter.

Reference No : ADV.264/87 dated :

24.2.87

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

2.

8A (revised) (Enclosed with this

recover the interest due on the

circular).

loan wherever applicable.

Branches

need

not

obtain

Periodic interest on the advances

Revival letter, for loans granted

should be recovered from the

to staff members, provided letter

members salary accordingly.

of authority is obtained in the

said revised format.
Reference No. : ADV/285/87 dated :
12.5.87
3.

Till such time revised format is

printed and supplied, branches
are requested to incorporate the

Documentation

following clause in the existing

Purchase,

form of PL 8A to take care of the

Discounted and Letter of Credit

above requirement.

Transaction

*Further I would like to place it

Preamble

on

record

that

Bills

Cheques
Purchase

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 *

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

It may be noted that the revised

Bills. LC and TR Limits also DPN

format contains an authority to

should be obtained in addition to

other documents. Accordingly the

14 / 14-A and F 16 along with

following documentation procedure is

other documents.

outlined for compliance by branches.

2.
Operational Instructions

The rate of interest to be

mentioned in the DPN is the rate
of interest applicable for the
overdue period.

1.1 Whenever a party is sanctioned a

regular cheque purchase facility
either by an Administrative Office

3.

The format of F 16 is being

or the Branch Manager under his

amended

to

extend

its

discretion, Demand promissory

applicability to any other credit

note in F14 / 14-A and Letter of

facility in addition to Overdraft /

Continuity in F 16 must be

Cash Credit. Till such time the

obtained from the borrower for

branches are supplied with the

the entire limit.

revised format, while obtaining F

16 for any facility other than
overdraft / Cash Credits the

1.2 Wherever

sanctioned

Bills

words

on

any

other

credit

purchase / discounting facility

facility should be added after

(Inland or Foreign) in extended

the words Overdraft / Cash

or regular basis branches must

Credits in all the places in the

obtain DPN 14 / 14-A and F16

existing

along with F 107.

authentication by the signatory

16

under

due

(ies). A copy of the amended F

16
1.3 Wherever sanctioned LC & TR
limits are extended on regular
basis branches must obtain DPN

is

enclosed

reference.

for

ready

4.1 The documents obtained in each

case must be diarised in the
Documentation cum due date
diary

R-74(introduced

General

Managers

vide
Circular

No.21 of 1983 dt.31.12.83)

6.2 Recourse to the drawer and prior

endorsee, if any in case of
cheques and the drawee / coacceptor in case of bills will
however be available only upto 3
years from the date of the

4.2 Revival letter must be obtained

in such cases after 27months

cheque or the bill or the date of

acceptance as the case may be.

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

6.3 Branches should therefore, keep

close

watch

on

individual

cheques / bills and take action in

time.

revised

documentation

procedure is equally applicable

in the case of existing advances

Reference No. : ADV.286/87 dated :

Branches are advised to obtain

12.5.1987

pronotes

wherever

applicable

immediately or at least at the

time of renewal of the limits.

Financial
Persons

6.1 Branches are to note that the DPN

and

the

subsequent

revival

letters will keep alive Banks

recourse to the borrower alone.

Preamble

Assistance

to

Blind

Branches quite often seek clarification

effect may be taken from a

in

witness

respect

of

documentation

as

per

the

format

procedure for the advances granted

enclosed. Further the borrower

to blind persons.

may be asked to open a savings

bank account

Operational instructions

amount

may

through

that

precautions

and
be

the

released

account.

for

loan

opening

The
and

operating the account of a blind

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

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.

persons. These equality apply to

loan accounts also.
2.2 When the blind person desires
sanction of a loan jointly with any
2.

In

addition

the

following

instructions / guidelines are to be

followed

while

granting

advances to blind persons.

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
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

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

the bank but should not be

related to the blind person.

person, alternatively, the other

borrower may be authorized by
the blind person to execute the

In all the above cases, staff

loan documents, sign the revival

members should not be witness.

letter and / or confirmation of

balance,
charge

create
etc

special

by

power

mortgage,
executing
of

This to be read with

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

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

the Power of Attorney should be

read over and explained to the
blind person in the presence of a
witness

and

only

when

Reference No. ADV.290/87 dated :

19.5.87

he

confirm the execution of such a

power of attorney the documents
should be obtained. The fact of

Consortium

Advances

such

Documents

confirmation

should

be

recorded under the signature of

format mentioned in para 2.1

Preamble

customer or a person known to

Joint

Procedure

extending the Limitation Period

the witness in the enclosed

3.1 The witness may be another

for

Under the Limitation Act, every suit

2.

To

obtain

confirmation

of

should be filed with the prescribed

balance letter each year on

limitation period. In order to keep the

Form F 237 A from the borrower

limitation alive in respect of a debt,

for at Cash Credit Accounts and

there

Overdrafts,

should

be

written

acknowledgement from the borrower /

except

loan

accounts.

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.

3.

To

obtain

confirmation

of

balance letter each year on

Form

237

from

borrowers

for

all

types

the
of

borrowal accounts including loan

Branches have been advised in Misc.

accounts.

Circular No.67(file 7b) of 1984 dated

18.12.1984 as follows.
The above procedure is applicable for
all our advances including consortium
1.

To obtain Revival Letter on

advances,

where

the

bank

is

form F 301 (Revised) from the

extending credit facility to a borrower

borrower and F 301 (B) from the

jointly with other banks / financial

guarantor

institutions.

for

all

types

of

borrowal accounts on expiry of

27 month from the date of
execution of documents on the

The following guidelines are provided

lines laid down in para 92

for compliance of branches.

chapter IX

of the

Book of

instructions.
Operational instruction

1.

Even in Consortium advances,

3.

Generally,

in

in order to keep limitation alive,

advances,

branches, should obtain revival

responsibility of the leader Bank

letter / confirmation of balance

to take revival document on

letter as per Misc. circular no.67

behalf of other banks. When we

(file 7b) of 1984 date 19.12.84

act as leader bank, it may be

(Revised

is

made clear to the other banks in

appended to the Misc. Circular

the beginning itself that each

No.67 (file 7b) of 1984 dated

bank

19.12.1984.

limitation in respect of their debt

301

formats

it

consortium

should

is

take

not

the

care

of

and liabilities under the joint

documents
2.1 Where the advances is covered

Pari

Passu

Agreement.

by a joint deed of Hypothecation

(usually as in case of working
capital advances) reference to

This point may be

informed in the

the joint deed of Hypothecation

consortium

meeting

should be quoted in the Revival

recorded in the minutes of the

Letter.

meeting.

Alternatively,

and
the

member bans may be suitably

advised in writing also.
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

This is to be read with : misc. Circular

No.67(file 7b) of 1984 dated
19.12.1984

individual deed of agreement

should be mentioned in the
revival letter.

Reference No.ADV 354/87

Date:22.10.1987

In order to facilitate the creation of a

Issuing Department : Management
Service:

Organization

&

methods

secondary or residual charge a

document designated as F110 E
has

been

introduced.

The

following guidelines are provided

for compliance.

Creation of Collateral Security

General

Hypothecation

Agreement

Operational instructions

Wherever a sanction endorsement

Preamble

contains

stipulation

that

machineries or current assets

should be held as a collateral or
Very often when credit limits are

residual

security by way

of

sanctioned to a borrower the term of

hypothecation for all the credit

sanctions stipulated the certain other

limits, branches should obtain

assets of the borrower (held as

the

security for one of the limits or

agreement

otherwise)

securities F 110 E (enclosed to

should

be

held

as

general

hypothecation
for

collateral

collateral security for all the limits

this circular).

sanctioned to the borrower. It is

obtained

observed, that branches generally

existing

obtain documents in respect of each

respect of each facility.

of

the

individual

requirement

of

limits,
the

but

addition

documents

to
taken

the
in

the

sanction

endorsement for collateral security is

not taken care of want of a suitable
document.

in

This is to be

2. The

document

should

be

stamped as an agreement as
per stamp acts in force at the
place of execution.

machinery) mortgage on the

The

General

security must be created for all

hypothecation

the

agreement (F 11 E) must specify the

in

E should be taken to secure

has been stipulated. The schedule of

the machineries for all the

securities in this deed must clearly list

limits.

out the full details of the securities for

5. when the borrower is a limited

is sought to be extended.
general

provided

instructions. In addition, F 110-

for which additional/collateral security

The

as

chapter X (G) of the book of

nature and amount of credit facilities

which the collateral / residual charge

limits

company, charge should be

filed

hypothecation

with

the

register

of

companies based on not only

agreement (

F 110-E and mortgage, but

also

F 11 E) must be taken for the

other

letters

of

aggregate amount of limit for which

hypothecation taken in respect

the

of the particular limits

collateral security

is

extended.

On enhancement of credit facilities,

modification of charge should be filed
with in time on the basis of letters of

3. Whenever

there

is

an

hypothecation

enhancement in the limits, the

enhancement

general

mortgage, if any

hypothecation

taken
and

due

to

supplemental

agreement must be obtained

and

the

of

the

should

be

documentation requirements and

details

enhancement

mentioned therein properly.

4. when the sanction stipulates

An

illustration

position

regarding

charge

are

of

creation

out-lined

in

the
of
the

enclosure the circular.

that all the limits should be

secured by the fixed assets
(viz land, building, plant and

7 Branches
examine

are
all

advised
their

to

sanction

endorsement,

particularly

those relating to commercial

and industrial borrowers, and
ascertain

whether

This is to be read with

any

stipulation has been provided

/

Misc. Circular No. 67(file7B) of

residual / charge on the fixed/

1984 dated 19.12.84 Permanent

floating / block / current assets

Circular

of

24.12.85.

for

creating

the

collateral

borrower.

requirement

has

If

this

not

No.ADV.125/85

dated

been

taken care of arrangement

should

be

initiated

for

obtention of F 110-E
registration

of

the

This amends

and
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

Manual

on

System

and

regards

to

Documentation
Procedures
the

with

provisions

contained there in for charging

collateral securities.

value.

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)

3. Term loan for purchase of machinery

5.00
10.00

- doHypothecation 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

mentioned

machineries

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.

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

hypothecation

of

secured

by

machinery

or

mortgage.(if F 110 A had already

been taken for c limit and charge was
filed with registrar of companies and

Filing OF Charge with register

of companies

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

1. Cash Credit Facility

by hypothecation of machinery and

Mortgage).

4. LC & LG. (including DPG/C0acceptance) Facility

2. Packing Credit Facility

Form 8 for Lc & LG limits based on F
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

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

Form 8 for the term loan limit based

created as per the procedure given in

on F 110 c and F 110 E &

chapter

mortgage stating that limit is secured

instruction. From 110 E should be

by all machineries mentioned in both

taken for the enhanced amount as

hypothecation deeds and mortgage of

supplemental to the form 110 E

land and building. if Registrar of

taken for the earlier limits before

Companies insists for three From8,

enhancement. This is the procedure

the procedure mentioned above may

for covering the enhanced limits fixed

be followed.

assets.

(G)

of

the

book

of

Branches should also remember to

Presently,

branches

while

take document for the enhancement

releasing import document under trust

of the limits as per the procedure in

receipt for parties enjoying such

para 94 in chapter IX of the book of

facilities debit the G.L Head letter of

instructions

and

credit bills receivable under trust

packing credit limits. These will be in

receipt Account (LCBR under TR). It

addition to F 110 E.

has

for

cash

credit

now

been

decided

that

separate demand loan should be

created for each trust receipt facility
On extending the collateral security

extended , so that the out standing is

and taking usual document for the

under each loan could be closely

enhancement, modification of charge

mentioned

should be filed within time in the case

liquidated with in the permited period

of limited company borrowers.

provided under the Tr. The following

and

the

advance

instructions are provided for guidance

of branches.
Reference No.ADV.328/88 dated
12.2.88
Operational Instructions
Issuing Department: Management
Services (O&M)
1. While financing against imports
whenever

document

are

Release of import document under

released against a trust receipt

trust receipt Revised accounting

procedure and documentation

should be created for each

separate

demand

loan

release. Accordingly, demand

loan account should be debited
Preamble

for

the

amount

and

the

corresponding amount should

sanctioned with facility for released of

be credited to LCBR account.

document of title against trust receipt.

The GL head LCBR under

F 65 (trust receipt from) should be

TR

obtained as and when document of

Stands

cancelled

with

immediate effect.

title are released.

2. Branches should continue to

obtain F 104 X for each letter

While describing the limit in F 110 E

it should be described as under

of credit opened (and DPN for

all sanctioned limit )as hitherto.
Document as describe here

Letter of credit (with demand

under should be obtained in

loan

addition to F 104 X (and

document / goods against trust

DPN

receipt.)

wherever

applicable)

facility

for

release

of

depending on the terms of

sanction.
When

a borrower is sanctioned a

2.2.1

If, however, demand loan

regular letter of credit limit to be

facility

for

release

secured by not only the goods

document / goods against

received under LC but also against an

trust

overall charge on the entire stocks

sanctioned as a regular

and / or the sanction does not

facility and 110 E has not

stipulate any specific security for the

been obtained for the cc

said limit, F 110 E should be

limit, it is advisable to

obtained to secure. All present and

obtain 110-E at least for

future stocks of raw materials work in

the demand loan facility as

process and finished goods of the

above,

if

borrower.

waived

on

receipt

not

is

of
not

specially

some

other

considerations F65 should

Where such letter of credit limit (as
described in para 2.1 above is

be obtained in any case as

2.2.2

and when document of title

Full

are released.

available for such stocks and the

In

case

110-E

is

not

obtained either for the LC

cove

must

be

relative cove with the banks clause

held with the branch

limit or the demand loan

All the formalities connected with

facility, as mentioned in

securing of goods as applicable for

para 2.1.1 and 2.2.1 above

hypothecation

respectively, DPN for the

display of the banks name board at

amount of the demand

the godown; periodic inspection of the

loan

security etc. must be carried out.

should

also

be

obtained together with trust

receipt (F.65) as and when
document

of

title

are

released.
2.3

insurances

advances

such

as

Care should be exercised to ensure

against over-lapping of the securities,
i.e. these stocks should be kept
segregated from the other stocks

If the borrower is a limited

belonging to the borrower. Similarly

company, charge should be

the stocks statement submitted by the

filed

of

borrower for other types of credit

Companies on the basis of

facilities enjoyed Viz., OCC. Key loan

F.110E. No charge need be

etc should be scrutinized to ascertain

filed in case of para 2.2.2.

that they do not include the stock

above.

released under the Demand Loan

with

registrar

Once the documents are released in

against Trust Receipt.

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

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

6.

Post import credit facility any

short of the outstanding in the

way of Demand loan (against

Demand Loan Account. Part

TR) should be sanctioned ion

sales made by the borrower from

exceptional cases only and not a

these stocks must be accounted

rule.

for, and the proceeds must be

credited to the loan account for
the corresponding value of the

7.

Once a LC limit is sanctioned

stocks sold. The borrower will be

branches should consider take

deemed to have cleared his

into account the following before

liability under the Demand Loan

actual opening of any LC so that

only when the full amount of the

compliance of the provisions of

bill

para 6 above may be ensured

has

been

paid.

The

outstanding under the demand

loan must be fully adjusted
within the permissible period
provided

under

the

a.

Trust

The nature and quantity of the

materials to be imported

Receipt.

b.
5.

While determining the Letter of

Anticipated time of arrival of

the materials

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.

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

Advances Against the security of

9% Relief Bonds 1987

limit

when arrived.
Preamble
e.

Whether adequate DP / funds

will be available at the time of

Attention of branches is invited to our

arrival of the goods.

permanent Circular No. Misc.208/87

dated

9.12.87

and

Government

Accounts Circular No.2 of 1988 dated

This is to be read with

28.1.88

spelling

out

the

salient

features of the above scheme brought

out by Government of India, Ministry
Permanent Circular No. ADV 285/87

of Finance Department of Economic

dated 12.5.87 and

Affairs, New Delhi

Permanent

Circular

No.

ADV.

354/87 dated 22.10.87

Now we are advised by RBI, DBOD,

Bombay that banks can sanction
advances

against

the

..above bonds as detailed

Reference No. ADV.405/88 date

below.

29.03.88
Operational instructions
Issuing Department : Banking
Operations
Branches / controlling offices
can grant loan / advances against the

above

bonds

within

the

powers

5. Caution:

Premature

vested with various layers of authority

payment of these bonds

against item VII Secured Advances

are not allowed.

other than against shares and Jewels

branches are advised to

(page nos.3 and 11) of he current

retain

discretionary Powers Booklet on the

stipulated

following items / conditions.

granting

the

Interest
account

Hence

margin
above

the

as
while

advances.

debited

to

the

should

be

recovered then and there.

1. Margin : 25% margin is to

be retained always on the
original value of the bonds.
2. Rates of Interest : 16.50
per annum.

In view of the credit restraint

measures recently imposed by
us,

3. Repayment

reasonable

The

repayment

branches/

controlling

offices are once again advised

to

strictly

adhere

to

the

programme is to be fixed

instructions contained in our

depending

circulars ADV 393/88 to 395/88

upon

the

category of the borrowers,

dated 4.3.88

the purpose of advance etc.

The repayment period may
be fixed taking into account
the maturity date of the
bonds.
:

Suitable

documents

as

applicable to Government
securities
obtained.

1. Per.Cir.Misc.208/87

dated

9.12.87

4. Documents
advanced

This is to be read with

are

to

be

2. Govt. Accounts Cir.No.2

1988 dated 28.1.88

of

Reference No. ADV. 411/88 date

2. The maturity period of the

9.4.88

certificates is 10 years
3. The rate of interest offered is
11.3%

Issuing Department : Banking

compounded

half-

yearly.

Operations

4. The deposit is tripled in the

10year period.
Advances Against 10 year social
security certificates
Now, we are advised by Reserve
Bank of India, Bombay through Indian
Banks Association,

Preamble

banks

can

Bombay, that

consider

granting

advances against the security of the

Branches

are

aware

that

the

above certificates.

Government of India, through Postal

Department, have introduced Social
Security Certificates (SSCs) scheme

Operational Instructions

with effect from 1.6.82. For ready

reference, we give below the salient
features of the above scheme.

Branches / controlling offices are

hereby permitted to grant loan /
advances

against

Social

Security

Security

Certificate at per power vested with

Certificates are issued in two

various layers of authority against

denominations of Rs.500/- &

item VIII Security advances other

Rs.1000/-

at

than against shares & Jewels (Page 3

Post Office who are having

and Page 11) of the discretionary

Savings Bank Facility.

Powers Booklet on the following

1. The

Social

and

available

terms & conditions subject to credit

restrictions, if any, imposed from time

to time.

Documents

Margin

Suitable
applicable

50% margin is to be retained always

on

the

invested

value

of

the

certificates.

advance
to

documents

advances

as

against

National Savings Certificates with

suitable

modifications

wherever

necessary are to be obtained.

Branches are advised to make note of

Rate of interest

the above guidelines / instructions at

the time of granting advances.

16.5% per annum

Reference No.Adv.423/88 date :
31.5.88
Repayment

Issuing Department : Management

A reasonable repayment programme

Services Organization & Methods

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

Documentation

Advances

Against Stocks Supplemental

Deed of Hypothecation / Pledge.

repayment period should not exceed

36 months.

Preamble

secured
Branches are at present obtaining the
deeds of hypothecation or pledge
(110A, 109A etc) at the time of

by

mortgage

of

immovable properties or not)

and
b. Limits collaterally secured by

original disbursals as also for any

mortgage

subsequent

properties

granted

branches face objection from the

individuals,

proprietary

Registrar of Companies, while filing

partnership firms societies etc.

enhancements.

Some

of

immovable
to
/

modification of charge, on the ground

that there is no link between the
principal documents creating original

1.2 Supplemental deeds are to be

charge and the subsequent one

obtained in any of the following

seeking the modification. In order to

three cases and the deed in

obviate

respect of each case is prescribed

these

Supplemental

difficulties
Deeds

of

hereunder.

Hypothecation / Pledge are now

prescribed. Instructions for use of
these deeds are provided below.

Enhanced limit with the same

security F- 110F
Enhanced limit with additional

Operational Instructions

security F 110G
Same limit with additional security
1.1 The

following

procedure

is

F 110H

applicable in respect of

1.3 Whenever any enhancement in

a. Limits granted to all Limited
Companies

(irrespective

of

whether limits are collaterally

limit

is

sanctioned

or

any

additional security of movables

are

stipulated

in

respect

of

aforesaid

categories

the

appropriate supplemental deed as

prescribed

above

should

obtained

and

no

be

obtained

enhancements

other

for

reference.

be

hypothecation or pledge deed is

to

documentation manual for ready

1.7 The specimen formats of the

such

supplemented deeds viz. F 110-F,

additional

110-G and 110-H are enclosed.

security.

Branches should obtain these

deeds

on

stamp

papers

of

appropriate values as applicable

1.4 The

supplemental

deed

is

for agreements in the particular till

common for both hypothecation

such time the printed forms are

and pledge of stocks / movables.

supplied by Printing & Stationery

department.

1.5 All

other

formalities

such

as

obtention of DPN, take delivery

2.1 In

care,

the

limits

are

not

letter for pledge, documents from

collaterally secured by mortgage

guarantors,

of

formalities

completion
relating

to

of

filing

immovable

respect

properties

of

in

individuals,

modification of charge and the

proprietary / partnership firms,

supplemental narration. In Title

societies etc (other than limited

deeds register etc with attendant

companies),

formalities

procedure is not applicable in

should

be

strictly

complied with.

the

such cases wherever there is

enhancement
procedure

1.6 A detailed documentation chart is

provided

with

aforesaid

this

circular

in

of
as

limit
outlined

the
in

Permanent circular ADV.125/85

dated

24.12.85

duplicate. Branches should hold

followed

by

one copy of the chart with the

account

and

should

closing

the

opening

be
old
new

account

with

fresh

set

of

need to close and open the

documents for the entire limit.

2.2 In

case

of

borrowers

accounts.

as

This is to be read with

mentioned in para 2.1 above if

there is no enhancement in this
but only additional security is

Permanent

obtained (other than mortgage),

Circular

ADV.125/85

dated 24.12.85

it will be sufficient to obtain

supplemental

documents

as

mentioned in column of the

enclosed chart and there is no

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 Banks 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 :

paid with proper description of stamp.

9.6.88

The various special adhesive stamps

meant for the particular purpose
should be used for that purpose only.

Issuing Department : Management

For example, the special adhesive

Services O & M

stamp marked as Brokers Note

should not be used in promissory
Note or other instruments except a

Documentation Use of Standard

Brokers Note.

Forms and Stamping Procedure

An illustrative description of various
types of stamps tabulated in the

Preamble

annexure for better understanding.

Whenever special adhesive stamps

(used in substitution for Non-Judicial
Stamp papers) are not available,
branches merely attach non-judicial
stamp

paper

documents

with
like

Branches / offices should be guided

by

the

following

operational

instructions.

standard
letter

of

Hypothecation after mentioning the

Operational instructions

loan account number. This procedure

is not correct and such documents
will be deemed to be not duly
stamped.

1.

Branches should have a

watch

over

the

GL

stamp

balance and try to procure the

required

special

adhesive

A document will be said to be duly

stamps / forms duly affixed with

stamped when requisite stamp duty is

special adhesive stamps and

duly

cancelled

by

the

format and should be stapled or

appropriate authority in advance.

stitched so that it appears as the

first page of the document. The
executants should sign each

2.

page of the document including

Wherever branches are

unable

to

adhesive
substitution

procure
stamps
for

the non judicial stamp paper.

special

(used

in

non-judicial

stamp papers) they may use

non-judicial stamp paper.

4.

Some branches are enquiring

whether

Xerox

copies

of

standard formats can be used

for obtaining documents when
3.1 As per the stamp Rules, a

sufficient number of standard

document should begin on non-

formats are not available. It is

judicial stamp pater and it is

always

affixation of special adhesive

documents

stamp, the stamp should appear

printed format. Branches should

on the face of the document

take suitable steps for obtaining

therefore, the non-judicial stamp

the necessary formats from the

paper should be made as the

Printing & Stationery department

first page and the beginning

in

portion of the standard format

advances upto a maximum of

should be written or typed on it

Rs.10,000/- in case of utmost

and

the

necessity, branches may use

standard format should be struck

Xerox copies of the standard

off under authentication of the

formats

executants signature.

subject to compliance of the

such

portion

from

advisable
in

advance

for

to

our

should form part of the standard

standard

However,

for

documentation,

following requirements.

3.2 The non-judicial stamp paper

obtain

a.

b.

The impression should

become a routine affair and it

be very clear on the pages (this

should be resorted to only in

is very important)

very

The

special

adhesive

stamp should be affixed on the

rare

maximum

cases,

upto

advance

a
of

Rs.10,000/-

Xerox copy and duly cancelled

on the face of the document by
the appropriate authority. (In

This is to be read with

case of branches in Tamil Nadu

such authority vests with Branch
Managers). This procedure of

Manual on Documentation system &

using Xerox copies should not

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. Brokers Note
9. Court Fee Label

Reference No. ADV.442/88 dated :

18.07.88

Offices, we detail below the gist of

such

common

errors

defects,

deficiencies and lapses.

Issuing Department : Banking

Operations

1.

Terms of sanction are not

complied with

Credit

Facilities

Quality

of

Advances Documentation

2.

Collateral securities are not

perfected i.e. original title deeds
are not deposited, not entered in
the title deeds register broken

Preamble

period EC not obtained Legal

opinion not clear / not obtained
Insurance

Branches / Regional Offices and

on

property

not

obtained / not held etc.

Zonal Offices have been advised in

the past through various circulars, the
common defect / errors resulting in
irregularities in the administration of

3.

Pre and Post sanction visit /

credit portfolio at the branches and

inspection of the units are not

the branches were instructed to avoid

being conducted

such errors / defects and lapses to

ensure the quality of the advances
and lapses to ensure the quality of

4.

Periodical
not

stock

the advances and enforceability of the

are

documents. For ready information of

recorded

the branches/ Regional and Zonal

hypothecation

statements

obtained
in

and
case

cash

not
of
credit

accounts

packing

credit

accounts.

9.

Extension of credit facilities far

beyond the powers vested with

5.

The

date

documents

of
are

validity
not

of

diarised,

Revival letters / debit balance

confirmation

letters

are

not

the

branch

authorized

managers

limits

drawing

powers and not reporting such

excess to the controlling offices.

obtained in time thereby allowing

the documents to get timebarred, thus disabling the bank
from seeking legal remedy by
way of filing the suit etc.

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

6.

Non recovery of instalments

resulting in mounting overdues.

Bank to undue risks. On an analysis

made

of

awarded

the
to

the

inspection

rating

branches,

it

is

observed that a number of branches

are given unsatisfactory rating under
7.

Non-renewal, review of the

quality of advances which includes

credit facilities periodically and

documentation. It is also evident that

extending

the branch managers do not give

credit

facilities

on

lapsed sanction

required attention in the follow up and

rectification

or

documentation
8.

Stocks / machineries pledged /

advances

irregularities
with

granted

regard
by

in
to
their

hypothecated to the Bank are

predecessors with the result that

not inspected regularly as per

irregularities are multiplied year after

laid down procedures and proper

year when we want to resort to legal

records are not maintained at

remedies, we are placed in an

the branches in this regard.

embarrassing situation to find that

many

of

the

documents

1.

No

advances

should

be

are

released without first obtaining

incomplete and imperfect to such an

proper documents complete in

extent they are not enforceable in the

all respects.

Courts of Law.

2.

The second in command of the

There can be not two opinions in the

Branch (i.e) Assistant Manager /

perfecting

Deputy Manager / Senior Deputy

securities before release of the loan /

Manager / Manager / Senior

advances (i.e) before the funds are

Manager as the case may be,

parted with. The responsibility of

should give a certificate to the

getting

Branch

perfectly

of

the

the

documents

documents

rests

with

the

executed
branch

Manager

before

disbursement of advances that

management only.

all the relevant documents for

releasing the facility have been
obtained

duty

filled

in

and

With a view to arrest the tendency of

completed and signed by the

imported

executants

documentation

and

to

in

capacity

ensure that the documents are taken

intended.

correctly atleast from now onwards

certificate

the following instruction are given for

certificate should be obtained in

strict

respect of each loan / advance.

compliance

of

branch

the
format

enclosed;

of

the
this

managers. The instructions come into

effect from 1.8.88
3.

Branch Chief Manager / Senior

Manager / Manager / Senior

Operational instructions

Deputy

Manager

Deputy

Manager should not disburse the

loan / Credit .with out
obtaining this certificate.

their respective Regional Office in the

4.

The branches manned by only

tear sheet.

one officer (i.e) Manager, the

Manager should himself send
the

above

certificate

to

his

This is to be read with

Regional Manager.
Managing Directors Circular No.5/82
For

any

documents

imperfect
in

respect

complete
of

credit

facilities released on or after 1.8.88,

dated 1.5.1982
Mist Circular No.91 (File 7c) of 1982
dated 7.6.82

the branch chief Manager / Senior

Manager / Manager / Senior Deputy

Special Circular No. SSI 19of 1982

Manager / Deputy Manager as the

dated 16.11.82

case may be, will be held personally

responsible.

Managing Directors Circular No.1 of

1983 dated 15.2.83
Misc. Circular No.22 (File 7e) of 1983

By

implementing

the

above

instructions, it is expected that atleast

the documents obtained in respect of

dated 15.11.83
General Managers Circular No.21 of
1983 dated 3.12.83

advances released on or after 1.8.88

will be perfect. Branch Manager

Permanent Circular No. ADV.3/85

should

dated 4.2.85

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

Permanent Circular No. ADV.125/85

dated 24.12.85

Reference No. Adv.447/88 dated

08.08.1988

Branch for not less than 6

months.

Issuing Department : Management

Services : O & M Department

He / she must be a confirmed

employee in a Govt. semi-Govt.,

Personal Overdraft Scheme

Quasi

Govt.

department

or

organization, Public Sector or a

Private sector Organization of
Preamble

repute.

From time to time, branches may

He / She should have a stable income

have faced situations where Cheques

with reasonable prospects of its

issued by otherwise regular savings

continuance in the near future.

bank

customers

are

presented

without adequate balance. It has now

been

decided

to

permit

limited

temporary overdrafts in Savings Bank

Members of the staff and their close

relatives

Accounts to reliable account holders

in

exceptional

situations.

Mother,

Brother, Sister, Children and In

The

laws) are not eligible for this

following operational guidelines are

facility.

provided for the purpose.

2.

Operational Instructions

(Father,

The Salary of the customer must

preferable be routed through his
Savings Bank account with the
branch

1.

The customer must be having

a

satisfactorily

maintained

Savings Bank Account with the

The amount of overdraft should not

in

the

Cheques

Referred

exceed one months net salary

Register. The overdraft when

as credited to the customers

authorized

account with the branch or the

Manager, should be immediately

discretionary

the

noted in the TOD Balance Book

branch for temporary overdrafts

to be maintained separately for

whichever is less.

Savings Bank Accounts and the

power

of

by

the

authentication

Branch

of

Deputy

Manager / Manager obtained at

The overdraft must be adjusted within

the end of the day.

one month from availment.

Immediately on the occurrence of an
If the customer desires to have the

overdraft,

the

branch

should

overdraft facility of a regular

write to the customer, advising

basis, he / she must be advised

him about the same and request

to open a current account and a

him to adjust the same at the

temporary overdraft facility may

earliest.

be considered as per existing

annexed) Refer annexure 32)

(a

model

letter

is

rules.
5.1 The balances in the overdrawn
Interest should be charged at the rate
applicable

for

temporary

accounts must be extracted in

the

Temporary

Overdrafts

overdrafts and recovered at the

Balance Book every day and

end of the month.

checked

by

the

supervising

official in charge of the savings

bank department, and placed
Each debit, which creates or acts to
increase an overdraft, must be
referred to the Branch Manager

before the Deputy Manager and

Branch Manager for information
and confirmation.

In the General Ledger, the debit

should be added to overdraft

balance should be added to the

due to Teller payment and the

savings bank balance on the

Temporary Overdraft in Current

liability side in the inner column

Account in the inner column on

and

as

the asset side and extended as

Savings Bank Credit balance

one figure for total overdrafts on

correspondingly,

all the three accounts.

the

total

extended
the

amount

Example

CAPITAL & LIABILITY SIDE

2.00

Saving Bank Deposits

2.01

Savings Bank (Excluding NRE)

Personal Overdraft

3,200.00

Teller Overdraft

1,000.00

2.02

Inoperative SB (Saving Bank A/c)

2.9

Savings Bank-Total (Excluding NRE

Total of 2.01 and 2.02)

2.11

3,22,733.95 1201

3,26,933.95
1202

15,856.25

1299

3,42,790.20

NRE Savings Bank Account

Savings Bank Total (Total of 2.09&2.11)

Property & Assets side

3,42,790.20

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

Under Personal

(000 Omitted)

Irregular Account
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
To overcome the above shortcoming
We are frequently approached by
Financial Institution and other Banks
to cade second charge on current
assets.

Generally

Term

Lending

our Law Department has drafted a

common format, (as enclosed) to be
furnished by our branch for ceding
second charge on the current assets.

Institutions insist upon banks ceding

second charge as per the format
furnished by them which contain
clauses detrimental to our Banks
interest.

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

Operational Instructions

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

Enclosure to PERMANENT Circular

facilities

No.ADV.449/88 dated 16.8.88

extended by us to the company.

Draft of the no objection letter to

Further branches are award that ny

be given to the borrower in respect

our bank ceding second charge on

of

the current assets in favor of the

current assets.

ceding

second

charge

on

Financial Institutions we cast upon

ourselves

the

safeguarding
interest

also.

responsibility

Financial
Our

of

Institution

Date

responsibility

towards Financial Institutions includes

informing Financial Institutions, the

To
Name and address of the Borrower

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

Dear Sir,
Ceding second charge on stock and
book debts

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.

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

following terms and conditions.

the

Penal
1.

X Bank shall not be entitled to

Interest

on

Advances

Documentation

call upon us and other paripassu

first

charge

holder

if

any

(hereinafter called as first charge

Preamble :

holders) to exercise of enforce

any of the rights under their
Branches have been instructed to

securities or otherwise.

charge penal interest on advances as

per
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

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

17.8.88
1.
Issuing Department : Management
Services : O & M

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

1. GM Circular no.12 of 1977

date March 26,1977.
2. Permanent

Circular

No.

ADV.306.87 dated 25.6.87

may note that penal interest

clause is already available in the
existing PL^, PL& and F 110C),
This

declaration

should

Reference No. ADV.464/88 dated

7.10.88

be

obtained for all loans disbursed

in future till such time the penal
interest clause is included in all

Issuing Department : Management

Services O & M

loan / security documents.

2.

In respect of existing advances

Personal LoanRevision of Form PL8

branches should intimate the

borrower(s) in writing while or
before levying penal interest,
vide

permanent

Preamble

Circular

No.ADV.306/87 dated 25.6.87

As per our Book of Instructions Part V
(f), Chapter X (I), the documentation
3.

All other instructions in this

regard remain unchanged.

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

This is to be read with

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

Issuing Department : Banking

operational instructions are laid down.

Operations

Operational instructions
1.

A format of the amended Form

Advances

Against

Indira

Vikar

Patras

PL 8 is enclosed.
Preamble
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.

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

This is to read with

Secured

Advances

other

than

against shares and Jewels (Page 3 &

Page 11) of the current discretionary
Power Booklet, subject to imposition

Para V(f), (I) of the Banks Book of

of any restriction on non-priority

instructions

advances. The terms and conditions

to be observed were also spelt out in
detail in the said circular.

Reference No. ADV.496/89 date

6.2.89
Operational instructions

We

have

now

advance, etc. The repayment

communication from Reserve Bank of

period may be fixed taking into

India,

Banking

account the maturity date of the

Operations and Development, Central

Patras. Accordingly, a letter of

Office, Bombay that they have been

repayment (F378) is also be

receiving representations from the

obtained from the borrower.

Department

public

that

some

received
of

branches

of

commercial banks are not granting

loans against security of Indira Vikas

3.

A margin of 25% on the paid

Patras on the plea that they do not

up value of the patras inclusive

have specific instructions from their

of the interest accrued for each

higher authorities.

completed year from the date of

issue is to be maintained. In this
connection, please refer para 4

In the circumstances, we reiterate

page

of

our

that branches / controlling offices can

ADV.295/87 dt.5.6.87

circular

grant advances against these patras

strictly adhering to the instructions
given hereunder

4.

The interest is to be charged

for this type of advances as

1.

Besides DPN, an application

cum security delivery letter as

stipulated

in

our

Permanent

Circular

ADV.473/88

dated

14.11.1988

per Annexure A enclosed should

be obtained from the borrower.
5.

Indira

Vikas

Patras

are

payable only on the due date

2.

reasonable

programme

is

repayment
to

be

and premature closure is not

fixed

permitted. They are payable on

depending upon the category of

maturity to the holder and no

the borrower and the purpose of

endorsement is required. As

these Patras are issued without

need to take a separate letter of

mentioning the name of the

authority.

purchaser,

no

lien

can

be

registered. As such, Branches

should be very careful for the

We wish to make it clear that the

safe custody of the Patras lodge

above

to them as security. We repeat

scrupulously, followed and branches

that application letter as per

should

specimen enclosed should be

complaint from any quarters.

instructions
not

give

should
room

for

be
any

obtained before granting the

advance. As the value of the
certificates are payable to the

This is to be read with

holders on maturity, there is no

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/fromeither 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
Number

Date of

Issuing

Purchase Post Office

Purchase Maturity Date of

Price

value Maturity

Signature of the Applicant(s)

Reference No. ADV.534/89 date

3.6.89

Savings Certificates subject to the

normal terms and conditions.

Issuing Department : Banking

In this connection, branches are

Operations

requested to strictly adhere to the

procedure outlined in our following
circulars.

Advances

Against

National

Savings Certificates
1. Misc. Cir No.119 (File 7c)
dated 8.7.82
Preamble

2. Misc. Cir No.221 (File 7c)

dated 31.12.83

Branches are aware that they have

been instructed to grant advances
against National Savings Certificates
after retaining a margin of 25%

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

Operational Instructions

We have now been advised by

The violation of the normal terms and

Reserve Bank of India that Banks

conditions prescribed by Reserve

may continue to grant advances

Bank of India in this regard will create

against

complication

the

security

of

National

at

the

time

of

encashment

of

National

Savings

Certificates.

concerned post Offices in their

books.

Further some of our branches have

If borrowers adjust the loan availed

sought clarification with regard to the

from the Banks before maturity date

discharge of the National Savings

of the Certificates the Certificates are

Certificates.

returned to them and they are entitled

to encash then same by discharging
them as holders.

With regard to this, we wish to clarify

as under.
Branches are advised to make a note
of the above points and follow the
1.

Borrowers

should

not

guidelines scrupulously.

discharge the National Savings

Certificate if they are pledged as
security.

2.

At

This is to be read with

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

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

Certificate (as per rule No.16(i)

of

the

National

Savings

Certificate Rules, 1982) and this

has been duly registered by the

4. PER. Cir. No. ADV 383/88

dated 13.2.88

5. PER. Cir. No. ADV 391/88

dated 27.2.88

of credit, execution of documents

submission of data and recoveries.

Reference No. ADV.541/89 date

The

23.6.89

matter

was

referred

to

Committee of Bankers under the

Chairmanship of Shri.V.Mahadevan,
Deputy
Bank

Issuing Department : Industrial

Managing
of

India

Director,
for

an

State
indepth

examination of all relevant issues.

Credit

The committee which submitted its

report took note of the fact that the
Advances on Consortium basissingle window concept for lending
(SWCL) by Banks Documentation

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

Preamble

for

day-to-day

disbursements and recoveries. It has,

therefore, recommended the Single

Reserve Bank of India (RBI) is of the

view

that

borrowers

availing

themselves of credit facilities from a

Window

approach

documentation

only
and

for
first

disbursement.

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

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

4.

No.ADV.459/88 dt.3.10.88

Letter of authority to be given

by the member banks to the First
Lead Bank

We have now received from RBI, the

model documents and also certain

5.

Letter of authority to be given

guidelines on using them. It is our

by the member banks to the

intention that all RO/Zos should be

Second Lead Bank

conversant

with

the

revised

documentation procedure so that they

could effectively guide their branches

6.

Working

capital

consortium

in turn about the new documentation

agreement

procedure. We have forwarded by

borrower and the Participating

separate mail the following model

Banks to be signed by the

documents received from RBI to all

Borrower, the first Lead Bank for

RO/Zos.

self and on behalf of other

between

the

banks.
1.

Board Resolution to be passed

by the Borrower Company

7.

Joint Deed of Hypothecation to

be executed by the Borrower
company

2.

Resolution to be passed by the

in

favour

of

the

participating Banks to be

member banks for appointing the

signed by the borrower only.

First Lead Bank and Second

8.
3.

Resolution to be passed by the

Second Lead Bank

Inter-se Agreement between

the Participating Banks - to be
executed
Banks only.

by

the

consortium

in drafting and seeking approval

9.

Undertaking letter from the

Borrower company for creating
Second charge on fixed Assets
to be obtained by the First Lead
Bank.

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

10.

Revival

Letter

(RL)

to

be

necessary,

appropriate

changes

can

be

signed by the Borrower company

made

to be obtained by the First

documents, in consultation with

Lead Bank.

other member banks, provided

in

these

model

such changes do not contribute

to any delay in execution of joint
Operational Instructions

documents.

Guidelines for execution of joint

documents

1.2 To

start

with

the

documentation,
banks

should

joint

the

member

give

separate

Letters of Authority to the First

For smooth implementation of revised

Lead Bank and Second Lead

joint

Bank

documentation

procedures

as

per

the

provided

model

suggested by RBI, we suggest the

documents

by

RBI

following guidelines

(Model Documents No.4&5). The

letter contains the authority for
the First Lead Bank to sing the

1.1 The purpose of standardizing the

joint

documents

for

working

capital finance is to avoid delay

Working

Capital

Agreement
No.6)

and

(Model
joint

Consortium
Document
Deed

of

Hypothecation(Model Document

Deed of Hypothecation within 30

No.7)

on

behalf

members

banks.

of

all

the

days

from

These

two

execution

the

date

of

its

documents will be signed by the

Borrower and the First Lead
Bank for themselves and on

1.4 The inter-se-Agreement (Model

behalf of other member banks.

Document No.8) will have to be

The Second Lead Bank will

signed by all Participating Banks

exercise such powers in the

through

event that the First Lead Bank is

The

unable

necessarily

convene

consortium

meeting

to

act

for

whatever

reasons.

their
Lead

representatives.
Bank

should
a
for

execution of inter-Se Agreement.

This is an Agreement between
1.3 The Working Capital Consortium

the Participating Banks, which

Agreements does not create any

can be executed after execution

charge or security. It contains

of

only the details relating to the

Consortium Agreement and (ii)

leading

Joint Deed of Hypothecation.

aspects

such

as

(i)

Working

Capital

allocation of limits among banks,

the rate of interest, commission
etc.

the

joint

Hypothecation

is

Deed
a

of

security

1.5 While

executing

the

three

documents viz. Working Capital

document whereby the borrower

Consortium

creates a charge on stocks and

Deed

book debts

Inter-Se Agreement, care should

capital

for the

facilities

working

granted

by

of

Agreement,

Joint

Hypothecation

and

be taken to execute them with

consortium banks. It is the duty

sufficient

of the First Lead Bank to file

depending upon the number of

charge with the Registrar of

executants. The original should

Companies on the basis of Joint

be

number

stamped

with

of

copies

adequate

stamp duty and all copies should

1.7 As per RBI guidelines, the model

be stamped with required stamp

documents may have to be

duty as applicable for Duplicate

adopted in existing consortia at

copy in the concerned State.

the time of renewal and / or

Where

are

enhancement of the existing

executed. Both the original and

limits at the earliest opportunity.

copies should be signed by all

However,

the executants.

model supplemental Joint Deed

the

documents

of

no

separate

Hypothecation

has

draft
been

provided by RBI. If the joint

1.6 In all existing consortium, where

Deed

of

Hypothecation

are

we are leaders, and where the

already executed in the existing

joint documents are not so far

consortium led by us, we may

executed,

the

documents

RBI

Model

use the RBI model joint Deed of

should

be

Hypothecation(Model Document

implemented immediately. After

No.7)

as

the

Supplemental

ensuring from the records of

Document

by

adding

Registrar

following para at the end.

of Companies that

the

there is no intermediary charge

of current assets and also after
taking a letter from the borrower

This

company

this

Hypothecation may be treated

position, the charges so far filed

as Supplemental Document to

with Registrar of Companies

the

based on individual documents

Hypothecation

may

dt.executed

confirming

be

satisfied

and

joint

Principal

Deed

joint

of

Deed

of

by

the

simultaneously fresh charge may

Borrower in favour of the said

be files based on Joint Deed of

Banks and the working capital

Hypothecation.

facilities
Principal

mentioned
joint

in

the

Deed

of

Hypothecation shall be treated

as enhanced to the level of

Consortium

working

facilities

subsequent RL also should be

mentioned in this Supplemental

taken within 3 years, of earlier

Document.

RL when we act as Lead Bank,

capital

this

Agreement,

important

documentation

formality should be compiled

with.

After adding this para in the

Model

Document

No.7,

modification of charge may be

filed

with

the

registrar

of

Other

General

companies.

Documentation

In the consortium meeting itself

The

Working

Guidelines

Capital

of

Consortium

this procedure may be explained

Agreement

to the member banks. For any

No.6) should be stamped as an

reason, if all members banks

Agreement

and

as

well

as

desire to file fresh charge after

indemnity.

For

example,

in

satisfying the existing charge

Tamilnadu the stamp duty on

based on the earlier joint Deed

agreement

of

same

indemnity is Rs.30/-. Therefore

procedure as laid down in para

when the document is executed

1.6 should be followed.

in

Hypothecation,

the

(Model

is

Tamilnadu,

Document

Rs.2.50p

it

should

and

be

stamped with stamp duty of

Rs.32.50. Depending upon the
1.8 It will be the duty of the Leader

rate of stamp duty in each State,

Bank to the take RL from the

this

borrower

Joint

stamped with aggregate stamp

Documents alive. This should be

duty payable on an Agreement

taken within 3 years from the

and indemnity.

to

keep

the

date of the Working Capital

document

should

be

debts for the entire working

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
followed

in

should

other

be

states

depending upon the prevalent

stamp duty.

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.
The inter-Se Agreement should
be stamped as an agreement.
Branches should take LC application
as and when issuing Letter of
The model documents No.6,7 & 8

Credit. Similarly, before issuing a

deal with all working capital

Letter of Guarantee, counter

facilities both funded and non

indemnity should be obtained

funded i.e., Cash Credits. Bills,

from the borrower in F 286 while

Cheque

of

also issuing indemnity to the

Credit, Letter of Guarantee and

Lead Bank to the extent of our

Bill Co-acceptance Limits, The

share in the LC/LG issue by

Model document No.7 creates a

them counter indemnity should

security on stocks and books

be obtained from the borrower in

Prucase,

Letter

F 286, in respect of Bills limit

branches may continue to hold
F-107 since it does not relate to
any particular limit.

The above guidelines are applicable

where we are the Leader of
consortium.
whether

For releasing the CC limit, after

taking

joint

Hypothecation

Deed
as per

of
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

periodical

of

taking

Confirmation

of

In

other

cases,

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

resolutions,

specimen
authorizing

CMD/ED/GM/DGM/AGM/ZM/RM
to appoint First Lead Bank and
Second Lead Bank.

Balance from the borrower in the

cash credit account as per their
usual procedure.

Branches

who

are

handling

consortium advances where we

are the Leader of the consortium

The First Lead Bank should coordinate with Term lenders for
creation of second charge on
fixed

assets

as

collateral

security, if it is so decided by
consortium members.

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

in

contact their RO/ZO as and

credit to the borrower. With a

when

view

the

Leader

of

the

delayed
to

disbursement

avoiding

of

delay and

consortium approaches them for

inconvenience to the borrowers,

revised

the lead Bank in all consortium

documentation

procedure.

arrangements should have the

authority from each of the other
member

Procedure

for

disbursement

by

to

make

first

available their shares of the

Leader

entire / enhanced limits if latters

making
the

banks

decision is not conveyed to the

Bank.

lead bank in time. In such cases

the member, on whose behalf
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.

disbursement is made, should

reimburse

the

immediately

Lead

on

Bank

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

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

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

first disbursement as above, the

customer should be allowed to
operate
different

his

accounts

members

with
banks

according to his requirements

subject to the limits allocated to

them.

b.

Letter

of

authority

should be obtained from all

consortium

The Model documents received

in the annexure (This is not a

given to the Lead Bank by other

model documents furnished by

consortium member banks for

RBI. This is a letter drafted by us

purposes. The lead Bank should

on the basis of RBI guidelines).

also obtain from the borrower

as

per

banks as per the format provided

of such Letter of Authority to be

documents

as

obtained from all consortium

form RBI do not contain a format

such

banks

are

absolutely necessary to protect

its interest before making such

c.

Individual

documents

such as DPN, F 110A etc as per

disbursements on behalf of the

our usual procedure should be

other consortium members.

taken for the entire amount of

first

disbursement.

Charge

should be filed with Registrar of

Keeping in view of the above RBI

Companies within 30 days from

directives, we suggest the following

the

guidelines for making first documents

date

of

execution

of

documents other formalities like

by us when we act as First Lead

passing of Resolution should be

Bank.

complied with by the borrower

company.

a.

The
authority
branch

sanctioning

would
to

advise

release

the

the
first

disbursement on behalf of our

bank as well as on behalf of
members banks.

d.

On execution of joint
document as per RBI model
documents and on receiving the
share of members banks, the

first disbursement account may

agreed in the consortium by

be closed and satisfaction of

member bank.

charge

may

be

filed

with

Registrar of companies.
g.

The procedure for first

disbursement may be adopted

e.

Separate

cash

credit

wherever there is like hood of

account should be opened for

delay

in

execution

of

joint

our Banks share on execution of

documents as per RBI Model

joint documents. The procedure

documents.

laid down in the circular under

the guidelines for execution of
joint

documents

should

be

followed at the time of execution

This circular may be read with the

following earlier circulars

of joint documents.

1. Permanent
f.

The

same

procedure

ADV

324/87

ADV

459/88

dt.11.8.87

should be adopted for releasing

any enhanced portion of the limit

2. Permanent
dt.3.10.89

ANNEXURE

Annexure to PERMANENT circular No. ADV 541/89 dated 23.6.1989

For

branch

only.

information Letter of Authority to be given by the member banks is

Not

to

be accordance with RBI directives on Single Window

reproduced in the format concept authorizing the Leader Bank to make

given
banks

to

the

member 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

securities, and that the grant of

20.07.1989

advances against the security of

Naitonal Saving Certificates would be
applicable, mutatis mutandis , in the

Issuing Department : Banking

case of Kisan Vikas Patras, also.

Operations
Operating instructions
Grant of Advances Against the
Security of Kisan Vikas Patras
Loan against Kisan Vikas Patras may
be

granted

after

taking

into

consideration the purpose, individual

Preamble

merits and other general norms, as

per powers vested with various layers
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 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.

of India. Department of Banking

Operations and Development, Central
office, Bombay, Vide Ref. DBOD. No.

Branches / Controlling Offices can

BP, BC136/C469(44)-89 dated 8-6-

grant advances against patras strictly

1989, that commercial banks may

adhering to the instruction given

sanction

hereunder.

loans

against

these

3.
1.

into account the maturity date of

specimen
also

fixed

programme is to be fixed taking

A letter of authority (F 525

should

be

advances etc. The repayment

application for transfer, DPN etc.

enclosed

to

the borrower and the purpose of

9.10.1984 regarding format of

per

is

repayment

depending upon the category of

No.60 (File 7c) of 1984 dated

as

reasonable

programme

Please refer our Misc. Circular

revised)

the patras and F 378 is also to

be

be obtained from the borrower.

obtained.

Patras are payable on due date

and premature closure is not
permitted.

2.

Branches / Controlling offices

are advised to note that the
normal terms and conditions for
registering the Banks lien and

4.

A margin of 25% is to be
retained

that the partras are required to

on

the

Original

investment without taking into

be transferred as security to the

account the accrued interest.

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

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

not bind the post office for any

liability / payment.
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.

Agricultural

Advances

Documentation

Letter

of

Hypothecation

This is to be read with

Preamble

1.

Misc. Cir. No.60 (File 7C)

dated 09.04.84

2.

PMT.

Cir.

Presently
No.

ADV.287/87

dated 13.05.87
3.

PMT.

Cir.

different

branches
letters

are

of

obtaining

Hypothecation

forms Viz. F 364 for Hypothecation of

Live stocks. F369 for Hypothecation

No.

ADV.355/87

of Existing of future crops and F 389

for

dated 26.10.87

Hypothecation

of

Agriculture

Machinery, Vehicles, Tractors Boats

4.

PMT.

Cir.

No.

ADV.383/88

dated 13.02.88
5.

PMT.

Cir.

etc. In order to reduce the multiplicity

of forms the existing three forms have

No.

ADV.534/89

dated 03.06.89

been combined into a single letter

Hypothecation viz F 110(i) as per
specimen enclosed.

Reference No. ADV.573/89 dated

20.11.1989

Further, in order to have uniform

documentation procedure for all term
loans,

Issuing Department : Priority

Credit (Agri.)

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.

C for advances against Live

stock.

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).

1.4 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
1.2 Branches should fill in only the
relevant portions applicable to

will form part and parcel of the

Letter of Hypothecation.

the type of advances for which

the facility is being granted.
Portions not applicable may be
scored across.

Wherever equitable mortgage of land

is

contemplated

documents

pertaining to the same viz F 379,

F416, F417 as applicable should
1.3 Care should be taken to record

be obtained in addition to the

the details of the securities in the

combined letter of Hypothecation

relevant schedules viz. Schedule

form F 110(i).

A for Crop Loans Schedule B for

advances

against

Goods/Machinery etc. Schedule

Wherever the customer is not in a

position to create an equitable

mortgage, the mortgage deed in

dated

form F512 (revised vide CO

followed for extending the period

Permanent

of limitation of mortgage.

circular

No.

29.09.86

should

be

ADV.272/87 dated 20.03.1987)

should

be

obtained

and

registered with the Sub Registrar

3.2 By dispensing with DPN in the

of the Prescribed authority of the

case of Agricultural term loans,

state.

branches should not be under

the impression that they need
not

Wherever loan / advance against

Hypothecation

of

Revival

Confirmation

of

letters

Balances.

with

Branches should continue to

registered mortgage of land in

obtain revival letters in Form 301

contemplated it would suffice if

(revised) (from borrowers) and

the branches obtain only Form

301-B

F512

CO

prescribed in Misc. Circular 67

No.

File

(revised

Permanent

crop

take

vide

circular

(from
7(b)

ADV.272/87 dated 20.03.1987).

19.12.1984.

As

also

the

contains

revised
a

form

F512

clause

for

Hypothecation of crops, it may

of

obtain

balances

Guarantors)

as

1984

dated

Branches

should

confirmation

from

both

of
the

borrower(s) and guarantor(S).

not be necessary to take a

separate letter of Hypothecation
of crops over and above the
revised F512.

When there is a holiday period of

more than 3 years in the case of
development loans of plantation
loans, Revival Letters can be

3.1 wherever
covered
procedure

the
by

advances

are

obtained within 27months from

mortgages,

the

the due date of first installment.

as

given

in

Permanent ADV Circular 219/86

4.

The Combined Hypothecation

deed in Form 110(i) provides an
enabling clause, for rephrasing

7.

Printing

or conversion of one type of loan

where

indent

their

&

Stationery

Department, Central Office.

into another type. Should a

arise

may

requirement of the new forms to

the repayment programme and /

situation

Branches

the

branches may have to grant

concessions on crop loans and

8.

Branches may use the existing

rephasement of term loans on

forms 364, 369 and 389 till such

account of natural calamities,

time the new forms are supplied

this clause provides for such

to them.

revisions, subject however to

separate

documentation.

Branches should note that any

such

concession

This is to be read with

or

rephasement should be made

only with the approval of the
sanctioning authorities.

1. Co. Misc. Circular No.67(File

7B) dated 19.12.1984
2. Permanent

5.

Other

documentation

procedures remain unaltered.

Circular

ADV

219/86 dated 29.09.1986

3. Permanent

Circular

ADV

272/87 dated 20.03.1987

6.

detailed

chart

showing

documentation for the various

This partially modifies Manual on

type of agricultural advances is

Documentation

enclosed in duplicate, one copy

Procedures : Pages 187 to 191.

of which may be kept with the

Manual on Documentation.

Systems

and

Reference No. ADV 592/89-90 dated

28.02.1990

When the fixed assets are already

mortgaged

to

another

Bank

or

Financial institution and our sanction

stipulates second charge on it for our
Issuing Department : Management

working capital facilities, their written

consent

Services O & M

should

be

obtained

for

ceding a second charge in our favour.

Some of our branches are keeping
Documentation Procedure for
creation of Second Charges of

only such consent letters with an

impression that a second charge has
been created on the fixed assets by

fixed assets

virtue of those letters. Mere getting of

consent letter from the first charge
holder will not amount to creation of

Preamble

second charge. The purpose of this

circular is to prescribe the guidelines

Advances are secured with varied

types of securities depending upon

for creating second charge on fixed

assets of the borrower.

the nature of credit facility and

availability of security. Quite often, it
is necessary to have a second charge

Operational instructions

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).

1.

Acceptable of second charge

on assets as collateral security
for advances shall be specifically
stipulated
Sanctioning

by

the

concerned

Authority

viz

RO/ZO/CO and shall not be

applicable to advances granted

under the discretion of Branch

the first charge holder either

Managers.

addressed to the borrower of

Bank should be obtained for
extending second charge on

2.

normally

fixed assets for facilities granted

include land, building, fixtures,

by the Bank. Normally the first

fittings, plant and machinery.

charge holder will address the

When a machinery is attached to

consent letter to the borrower

the

is

added with some conditions.

immovable

Thereafter, hypothecation deed

property and when the same

will have to be obtained by Bank

machinery is not so attached to

creating

the earth, it is construed as

machinery.

movable property therefore for

authorization letter should be

creation of a charge on fixed

sent by the Bank to the first

assets including machinery. We

charge holder requesting them

may have to get mortgage as

to act as agent for the purpose

well

of extending the mortgage.

Fixed

assets

earth

construed

as

will

permanently, it
as

hypothecation

of

second

charge
Then

on
an

machinery On the same principle

of creation of second charge on
fixed

assets

it

includes

4.

in

order

to

extend

the

machinery the charge mortgage

mortgage by way of equitable

already created in favour of first

mortgage, the borrower should

charge

call at the office of the first

holder

should

be

extended and we may have to

charge

holder

and

authorize

take hypothecation of machinery

them to continue to hold the title

also for the concerned limits.

deeds on behalf of the Bank also

as continuing collateral security
for the working capital facilities

3.

As a first step, a consent

letter / No objection letter form

or any other facilities granted / to

be

granted

by

the

Bank

subsequently,
should

the

borrower

confirm

be

necessary

to

have

the

hypothecation of machinery for

representation by writing a letter

the concerned limits as stated

to the first charge holder with a

in para 2 above. When any of

copy endorsed to the Bank

the working capital limits such

Based on such representation

as cash credit / packing credit

and the letter received form the

is already secured by stocks

borrower, the first charge holder

by a hypothecation deed F.

should

letter

251.B/F. 110A a supplemental

addressed to the Bank that the

hypothecation deed in F-110H

mortgage has been extended in

should

favour of the Bank.

securing machinery (F-110H is

confirm

in

5. When the borrower is a limited

be

obtained

furnished

in

Circular

no.ADV.432

for

PERMANENT
dt

31.05.88). In respect of other

resolution

working capital facilities, for

should be passed authorizing a

which there is no earlier Letter

Director

of

company,

mortgage

Board
to

extend
and

the

execute

Hypothecation,

should

be

taken

necessary documents as may

aggregate

of

be required by the bank for the

mentioning

therein

purpose of creating a second

schedule as;

F110-E
for

such

the
limits

in

the

charges on the fixed assets.

All
6. The extended mortgage will

present

machinery

of

and
the

future
borrower

cover the fixed assets such as

including vehicles at the factory

land, building, fixtures, fittings,

premises or else where

plant and machinery (fixed). In

order to have a second charge
on movable machinery, it may

In respect of limited company

1..Bank (Name of the

borrower, modification of charge

first Chargeholder)

should be filed based on F-110-

2. Indian Overseas Bank by way

H in respect of limits for which

of second charge

charges have been already filed

on stocks. In respect of other
limits, fresh charge should be
8.

filed based on F110-E.

We are giving the following

formats as annexure to this
circular.

On extension of mortgage also,

1. Authority letter to be given by

these charges may have to be

the Bank to the first charge

modified.

holder.
2. Title

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

Deed

(Memorandum

Narration
of

Entry)

which may be entered in the

Title Deed Registration of the
chargeholder.
3. Confirmation

letter

to

be

following words at the business

written by the borrower to the

premises / factory of borrower,

first chargeholder mentioning

after obtaining the consent of the

therein

first charge holder.

mortgage created based on

the

extension

of

the oral representation made

earlier.
The stocks / Goods in this
premises are hypothecated to

4. Letter from the first charge

holder to the Bank confirming
th eextension of mortgage by

way of second charge in

deed register for the purpose of

Banks favour.

entering title deed narration. We

are second charge holder cannot
compel

9.

It should be borne in mind that

we will be dealing with various

such

financial

corporation to enter title deed

narration.

Financial Institutions / Bank, who

have first charge on fixed assets
and there will not be uniformly
among

the

Institution

enters

formats adopted by them. If the

narration

(Memorandum

first charge holder requires any

Entry), a true copy of the title

modification

format

deed narration, certified by the

suitable amendments may be

first charge holder institution

made

may be obtained for branch

in

procedure

in

the

consultation

and

When the first charge holder Financial

with

RO/ZO.

title

deed
of

records. In other cases, where

the

first

charge

holder

institution / Financial corporation

there is no uniform procedure among

does not enter any title deed

the State Financial Corporations

narration the borrower many be

and Financial institutions in the

requested to endorse a copy of

procedure adopted for extension

his

of mortgage in favour of the

(evidencing

second charge holder. All India

mortgage) addressed to the first

Financial Institutions like IDBI,

charge

IFCI and ICICI are having their

alternative,

own standard formats of title

holder institution may write a

deed narration for extending the

letter to the branch enclosing a

mortgage. Most of the State

true copy of the confirmation

Financial Corporation are not in

letter

the habit of maintaining any title

borrower. This should be kept

confirmation
the

holder
the

received

letter

extension
or

in

first

from

of
the

charge

the

with the branch records as a

through

proof

branches

for

extension

of

the

mortgage.

officials
or

of

first

the

charge

holders, along with a covering

letter

stating

that

the

title

deeds should not be handed

11. The first charge holder will not

over to the borrower, but they

generally disturb the title for

should be sent back to the

the purpose of extending the

bank after adjustment of the

mortgage. However, very few

dues of the first charge holder.

State

As this type of eventuality is

Financial

Corporation

are in the habit of sending the

very

rare;

branches

are

original title deeds directly, to

advised to make a reference to

the banks for the purpose of

either regional office or zonal

creation of second mortgage.

office for getting the format of

In such cases, the borrower

the title deed narration to be

should call at the branch and

entered in the branch records

deposit the title deeds with an

in such cases.

intention to create mortgage.

Title deed narration should be
entered as per our procedure.

12. sometimes branch may face

Our usual format of title deed

the following situations also

narration may require some

addition for mentioning there in
that the title deed are received

a. Stipulation in sanction

form the first charge holder

for creation of second

institution

charge

for

the

limited

on

land

and

purpose of creating mortgage.

building there may not

If

holder

plant

and

requires the title deed back

Even

in

they may be returned directly

hypothecation

to

machinery

the

the

first

first

charge

charge

holder

machinery.
this

case,
of

may

be

obtained
the

for

securing

14.To ensure that there is no other

fixture,

fittings,

intermediary mortgage between the

installations,

date of earlier mortgage favour again

electrical
fans,

Ac

units

etc.

mortgage

should

be

extended

as

stated

above.

extension

of

mortgage,

nil

encumbrance certificate should be

obtained through the borrower for

b. Stipulation

of

second

charge

on

the

machinery

there

may

not

land

and

be

the first charge holder and the cate of

buildings. In this cases,

there is no question of
extension of mortgage
in the absence of land
and

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

building.

Hypothecation

of

machinery

be

may

Misc. Circular No.9(file7e) of 1989-90

dated 2.3.1990

obtained.

Remission of Stamp Duty on Usance

Bills with 3 months period
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.

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

collection

bill

subject

to

the

are payable not more than three

compliance of conditions, (a), (b) and

months after date or sight.

(c) mentioned above

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.

In the light of our above clarification,

we

are

annexing

herewith

the

schedule of stamp duty payable on

Such bills of exchange

Usance

Bills

of

Exchange.

The

arise out of bonafide commercial

schedule annexed to earlier 7(e)

or trade transactions

Circular No.3 or 1989 dated 27.10.89

may be treated as cancelled.

In this connection, certain branches

have

sought

clarification

on

the

following points

a.

Whether

Circular No.5/90-91 File (7b) of

1990 dated 27.07.90

the

stamp

duty

Documentation

remission would be applicable

for Foreign Bill ?
b.

Whether

the

stamp

duty

Preamble

remission would be applicable

for

Bills

receivable

for

collection?

Branches were hitherto advised to

keep the loan documents under a
docket giving all the relevant details

We would like to clarify that the stamp

duty remission will apply for all Bills of
exchange including Foreign Bill and

on

the

docket

sheet

vide

CO

Permanent Circular ADV 3/85 dated

4.02.1985. However, branches were

advised to initially have the docket

Circular no.7(e) 22 of 1983 dated

system only in case of accounts

15.11.1983

relating to Limited Companies and

other borrowers enjoying huge limits.

GMs Circular No.21 of 1983 dated

03.12.1985.
Permanent

Our Central Statutory Auditors have

however,

observed

that

all

the

Documents currently in force should

be serially arranged in the dockets

Circular

No.ADV.3/85

dated 4.2.1985.
Permanent

Circular

no.ADV.3/85

dated 4.2.1985.

and indexed.
Reference No.ADV/22/90-91
Operational Instructions

Date : 31.07.90
Issuing Department : Management

All

documents

currently

in

Services O & M

force

should be serially arranged in the

dockets and indexed. A copy of the
current sanction may also be kept in

Counter Indemnity for Letters of

the dockets while ole documents may

guarantee

be kept separately.

formats

Branches are instructed to strictly

Preamble

Common

indemnity

adhere to the above instructions

Branches
This circular is to be read with

are

presently

obtaining

counter indemnity in form no.286

each time a letter of guarantee is
issued.

Similarly

branches

are

obtaining

shipping

guarantee

concern, by the person authorized as

undertaking letter in form no.F.132

per the board resolution in the case of

each time a shipping guarantee is

a limited company, by all the partners

issued.

In order to simplify the

or by the partners(s) duly authorized

documentation procedure, a common

by a letter of authority by all the

indemnity form ahs been introduced.

partners in the case of a partnership

The common indemnity form does not

firm.

obtain any specific limit and it will

cover liabilities under taken by the
bank by issuing letters of guarantee/

As and when the customer makes a

payment

request

guarantee/shipping guarantee or by

guarantee/deferred

co-acceptance of bills, without limit.

guarantee/shipping guarantee or for

In view on introduction of common

co-acceptance bills, such a request

indemnity, we are canceling forms

should be received in a standard

F110D, F& F 286. The following

format as per specimen enclosed.

guidelines

This form has been numbered F

are

laid

down

for

compliance.

or

issuing

letter

of

payment

286F. It should also be signed by the

authorized

person

para1.above.
Operational instructions

as

Branch

stated

in

should

not

undertake any guarantee liability on

an oral request from the customer.

A general counter indemnity form

numbered

286-E

has

been

This letter of request should be

introduced as per specimen enclosed.

preserved with the copy of the

This form should be duly stamped as

concerned

guarantee

an indemnity.

guarantee

is

The general counter

indemnity should be signed by the

authorized

person

viz.,

by

the

proprietor in the case of proprietary

eliminated.

till

discharged

that
or

The letter of request should contain,

debts, machinery etc. branches

as enclosure, the format of the

must obtain additionally a letter

LG/DPG/copies

(preferably

of hypothecation in form F-110 E

photocopies) of the co-accepted bills,

for the limit and if the guarantee

shipping guarantee/Bid bond/Tender

limit or liability is to be secured

as

duly

against any immovable property,

authorized

branches should take care to

the

case

authenticated

may

by

the

be,

signatory of the applicant.

create

mortgage

on

the

concerned assets as per the

sanction.
2.4 Import

licences,

applicable,

should

wherever
also

be

tendered along with this letter of

4.2 If the borrower is a limited

request for making provisional

company, charge should be filed

endorsement.

with the registrar of companies

within a period of 30 days from
the date of execution of the

3.

Consequent to the introduction

security, documents based on

of the standard application form.

hypothecation/mortgage.

(F.286.F) and general counter

indemnity

form

(F286E)

branches need not obtain the

4.3 In case of enhancement in the

existing counter indemnity form

sanctioned

guarantee/co-

F 286 and F 132 which stand

acceptance limits secured with

cancelled.

mortgage

or

charge.

It is necessary to

hypothecation

obtain supplemental document

4.1 If a guarantee limit or liability is
to

be

secured

against

in 110 E and or extend the

mortgage

by

entering

hypothecation of any movable

supplemental

title

deed

asset, such as stocks, books

narration, as the case may be to

cover the enhanced limit in

guarantee includes letters of

addition and acceptance of the

guarantee;

enhanced

general

limit

should

be

DPG

shipping

counter

indemnity

should

undertake

obtained from the authorized

branches

persons in the sanction advice.

guarantee liability only within the

Charge should b modified with

permissible limit as per the

the registrar of companies based

sanction applicable.

on

the

hypothecation

appointment
deed

(F110E)

and/or mortgage in the case on

6.

Arrangements are being made to

limited companies within 30 days

print the newly introduced form F

from the date of supplemental

286-E and F 286F and Branches

document/mortgage.

may

place

Printing

their
and

indents

to

Stationary

department. Till such time, The

4.4 Since the newly introduced from

new

forms

are

received,

F 286-E obtained with form F

branches may continue to follow

110E

the

in

cases

where

the

guarantee limit or liability is to be

existing

documentation

procedure.

secured against hypothecation

of any movable asset the form E
11D

5.

prescribed

for

deferred

This amends : Para 14 Chapter

payment guarantees and co-

XVI

acceptance stands cancelled.

Instructions as per Annexure.

The general counter indemnity in

This partially amends : Manual

form F 286 E should be taken in

on Documentation Systems and

respect of all existing and future

Procedures Pages 125 141

guarantee limits.

and 160 to 163.

(The term

of

Banks

Book

of

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

c.

or 286 as the case may be form

the customer for the amount of
guarantee duly countersigned by

is secured by movable assets.

d.

Securities,

if

any,

duly

e.

Guarantee letter, if there is a

by

Guarantee

F111/F111A from

guarantor for the LG limit or

aggregate limits including LG

form F 286 E

each time a guarantee is issued.

secured

sanction should be completed.

General Counter Indemnity on

Application on Form F 286 F

duly

in respect of mortgage as per

f.

b.

any,

immovable property, formalities

guarantor on Form 286-D & 111

a.

if

Where guarantee limits are

collaterally

discharged or assigned etc.

c.

Securities,

discharge or assigned etc.

the guarantor.
b.

F 110 E where guarantee limit

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

a. Form of notice of transfer of

made to Motor Vehicle Act, various

ownership

changes have been made in the

formats

relating

to

transfer

b. Report

of

of

transfer

of

ownership

ownership of vehicles etc. Hence the

following operational instructions are

c. Application for making an

laid down for the benefit of branches.

entry

of

hypothecation

subsequent to registration.
d. Notice

Operational Instructions

1.

Consequent

termination

of

hypothecation

to

amendments to Motor Vehicles

Act changes have been made in
the following formats.

of

2.

Branches
future

obtain

should

in

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.

PERMANENT

Ref.No. : ADV.280/92-93
Form :
Date: 20.5.1992
Issuing Dept: Management Services
Indian Overseas Bank
Central Office
763,Anna Salai, Chennai 600 002

To All Indian Branches Regional Offices and Zonal Offices

DOCUMENTATION TERM LOAN/

SMALL LOAN AGREEMENT FORM

Preamble

for term loans and small loans

respectively. The details of securities
covered under the agreement are to
under

be furnished in the schedule provided

instruction to obtained hypothecation

in the hypothecation form. Since the

agreement forms like 110 C and 407

exact details/description of the assets

Presently,

branches

are

acquired under the loan can be

separate declaration letter, as per the

ascertained

specimen

only

after

they

are

enclosed

should

be

purchased, in order to protect the

obtained from the borrower giving the

banks interest, it is now felt desirable

exact details\description of goods

to obtain a separate written document

purchased.

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.

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

Operational Instructions

may

obtain

the

declaration form the borrower

neatly typed out as per the
specimen enclosed till such

1. At the time execution

time printed forms are supplied

of document in respect

by

of

and

Department. This declaration is

small loans, general

enclosed in duplicated and one

description of assets

copy may be preserved with

to be hypothecated to

the branch copy of manual on

the bank are to be

Documentation at the relevant

mentioned

place.

term

loans

under

printing

&

Stationery

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

(V.R. Veerappan)

General Manager

From:

PERMANENT
Indian overseas Bank
Central office
763,Anna Salai,

Ref No.

ADV.407/93-94

Date: 29-7-1993
Issuing Dept: Legal Services

Chennai-600 002

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

Notice of loss or injury to be

railways or transport company (public

given within six months: no suit shall be

carriers) there is a time limit of six

instituted against a common carrier for

months for lodging any claim for loss,

the loss of injury to goods entrusted to

destruction, damage, deterioration or non-

him for carriage, unless notice in writing

delivery of the goods.

of the loss or injury has been given to him

before the in situation of the suet and

IF notice is not served on the

within six months of the time when the

railways or transport Company, no suit

loss or injury first came to the knowledge

can be filed against them

of the plaintiff"

Sec.10 of the carriers Act reads as

under:

Sec.78-B of the Railways Act states

returned unpaid and if the

as follows:

bill

amount

recovered

is

not

within

one

Notification of claims to refund

week from the date of

of over charges and to compensation

receipt of retuned bill,

for losses: A person shall not be entitled

branch should report the

to a refund of an overcharge in respect of

matter to regional office

animals or goods carried by railway or to

for instructions and in the

compensation for the loss, destruction,

meantime, steps should be

damage, deterioration or non-delivery of

taken to protect the goods

animals or goods delivered to be so

covered

under

carried, unless his claim to the refund or

returned

bill

compensation has been preferred in

14chapterXIBookof

writing by him or on his behalf.

instruction).
2.

the
(para-

If there is any loss or

a. to the railway administration to

damage or deterioration

which the animals or goods were

or non-delivery of the

delivered to be carried by railway:

such cases, where branch

or

has to deal with the goods

b. to the railway administration on

and take delivery, notice

whose railway the destination

should be sent to the lorry

station

company (Head office,

lies,

destructions,

or

the

loss,

damage

or

Booking

office

deterioration occurred, within six

Destination

months from the date of the

railways, (Booking station

delivery of the animals or goods

and destination station)

for carriage by railways.

immediately within the

Operational Instructions

office)

and
or

statutory period of six

months, under advice to

1.

When

the

bills

the party The draft of the

purchased/discounted are

notice in page no304 for

format of inventory notice

Railways/public

may be modified to suit

within six months period.

the facts of any particular.

3.

In

collection

4.

carrier

Under the carriers Act, the

bills

period of six months shall

transaction, we need not

run from the time when

involve in sending the

the loss first came to the

notice. While returning

knowledge of the plaintiff

the documents, we may

and under the Railways

inform the party about the

Act, the time will run

statutory requirement of

from the date of booking

serving

of the goods.

notice

on the

5.
(A.K.Nirmalanandan)
Assistant General Manager

PERMANENT
From:
Indian overseas Bank

Ref No.

Central office

ADV.407/93-94

Date: 29-7-1993

763,Anna Salai, Chennai-600 002

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

obligation present or contingent by

seeking our permission to accept certified

complying with all the three following

copy of the title deed, obtained from the

essential formalities;

sub-registrar office, for the purpose of

creation of equitable mortgage. The

a. Depositing original title deed(s)

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

with the Bank.;

b.

Deposit should take place in

notified town.

c. Deposit should be made with an

intention to create mortgage.

safeguards to be taken, when it is decided

to accept the certified copy

If any one of the above three essential

elements

Operational instructions

is

missing,

no

valid

mortgage will be created. Therefore,

when a mortgagor is not in a position

1.A valid equitable mortgage can

be

created

to

secure

monetary

to deposit the original title deed, in

the normal circumstances, he may

have to create registered mortgage,

This

which will attract 4% stamp duty on

provision to create an equitable

the

1%

mortgage in case the original

registration fee in Tamil Nadu .the

title deed is lost or destroyed or

rate of stamp duty and registration

otherwise

charges will vary from State of State.

deposit, A mortgagor cannot

loan

amount,

besides,

is

only

an

not

ENABLING

available

for

compel the Bank to accept the

If would be legally possible to

certified copy as a matter of

create an equitable mortgage by

right. It should also be noted

depositing the certified copy of the

that the bank takes risk in

title deed provided the original is

accepting certified copy of title

actually lost or destroyed or otherwise

deed for the purpose of creating

not available for deposit despite

equitable

owners efforts to deposit the original

example, if a mortgagor had

the original where partition is effected

already created an equitable

among family members, unless drawn

mortgage by depositing original

in sets, the original partition deed is

title deed with Bank A and

normally kept by the eldest member

also created another equitable

and others are given certified copies

mortgage with Bank

vie, registration copies. If drawn in

depositing

sets, the original and the registered

stating that the original title

copies in sets are equal in their value

deed was lost, the Bank B will

for the purpose of creating mortgage

lose its priority of mortgage of

by deposit of title deed. If only

Bank A.

mortgage.

certified

For

B by
copy

registration copy (certified copy) is

2.

When a bank is very much sure about

available and no mortgage is created

the

by deposit of original, over the

statement that the original title deed is

property that had fallen to the share of

lost/not available for deposit and that no

person depositing registration copy

mortgage had been created by de posit of

(certified copy), it is legally possible

original document, bank can consider

to create an equitable mortgage.

accepting the equitable mortgage by

correctness

of

the

mortgagors

depositing certified copy of the title deeds

addition Rs.10,000/- or part thereof, it

original of which reported to be lost or

attracts stamp duty of Rs.42/- besides

destroyed or not available. To vouchsafe

registration fee.

the mortgagors statement, the bank

registration charges will vary from State

should take an indemnity narrating that

to State.

the original title deed is lost, that

no

3. The decision for accepting certified

mortgage has been created by deposit of

copy must be taken by the concerned

original document and that mortgagor

sanctioning authority or RO in cases

would indemnify the bank for any loss or

falling within their powers and branchs

damage arising out of the transaction due

powers.

to depositing the certified copy.

The

registered memorandum is also to be

format of the indemnity is given in

waived, prior permission should be

annexure.

obtained from ZO /CO.

In all such cases, the bank

The stamp duty and

For any valid reason.

If the

should insist for equitable mortgage

4. By issuing this circular, we are not

accompanied by registered memorandum

giving any blanket permission to accept

(F-416 / 417). The stamp duty payable

certified copy of the title deed for the

on such registered memorandum will be

purpose of creating equitable mortgage.

very much less, compared to the stamp

It only lays down the procedure, if and

duty payable on registered mortgage. In

when a decision is taken to accept

Tamil Nadu, a registered memorandum

certified copy of title deed on the basis or

for loan amount of Rs.30,000/- attracts

mortgagors

stamp duty of Rs.125/- and for every

recommendation.

(A.K.Nirmalanandan)
Assistant General Manager

statement

and

branchs

To

From
LEGAL SERVICES DEPARTMENT

All Branches

Indian overseas Bank

Regional offices

Central office
763, Anna salai
Chennai - 600 002.
Misc. circular No 3 File 7(e)
Of 95-96 27-6-95

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.14/6/94CLdt.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

charges.

The

Ministry

advised

the

Registrar

of
has
of

companies

to

follow

on ROC s record and the duplicate and

simplified procedure. We quote

triplicate

below

company/creditor

an

extract

of

the

copies

be

returned

concerned.

In

to
this

relevant portion from the said

procedure, there would be no necessity of

circular dt 16.2.95

issuing

any

registration
Registration of charges

separate
of

charge,

certificate
as

of

endorsed

document itself will constitute such

certification, The proposed simplified

This is an area where companies

procedure specified above, will ensure

the

banks/financial

that these documents are registered the

institutions are finding it extremely

same day and endorsed document be

difficult to get the charges registered in

returned to the company representative

time and getting necessary certificates.

across the table. The Rules are being

Are raised by Rocs regarding the contents

amended in this behalf and will be

in Form No.8/13/17 and this delays the

notified to Rocs shortly:

and

leading

matter. It has now been decided that the

procedure in this regard may be changed

WE would like to inform the branches

by amending the Rules/Forms so as to

that the Registrar of companies. Madras

make the filing of charge documents a

has already started implementing the

smooth

proposed

above directives of the Government. We

procedure envisages filing of prescribed

hope that other Registrar of companies

form and instrument evidencing the

also would have started implementing the

enrage, in triplicate Under The signature

new procedures. We advise the branches

of both the company and the creditor.

to submit Form-8 & Form 13 hereinafter

Once the document is filed, in triplicate,

in triplicate with the signature of both the

along with the requisite fee, Rocs will

Borrower Company and Bank and get

endorse on all the three copies (including

one copy of the form with endorsement

the accompanying instrument) by rubber

REGISTERED The forms with such

stamp with the impression Registered

endorsement should be kept along with

and sign the same. The first copy be taken

the loan documents.

operation

The

PERMANENT

From:
Ref No:
Indian overseas Bank
Central office

ADV/36/94-95

Date:

20.7.94

Issuing Dept:

763,Anna Salai,

Management
Services (O&M)

Chennai-600 002

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

1. Power

of

Attorney

to

be

our Book of instructions (1993)

obtained from the borrower

Volume 11 chapter 18 Advances

leasing company.

to Leasing companies wherein

2. Undertaking

Letter

to

be

the documents to be obtained for

obtained form the lessee as

financing leasing companies have

an alternative to the Tripartite

been given (in pares 5&6) in order

Agreement which has to be

to ease out the problems faced by

taken

the branches in obtaining the

transaction.

for

every

present Tripartite Agreement. We

Operational instructions

hereby introduce two documents

1.

namely.

lease

in order to obviate the

difficulties

faced

by

the

branches in obtaining the

Tripartite Agreement

for

every lease transaction, a

remit

power of attorney (POA) to

directly to the bank. In

be

the

terms of the POA. The

borrower leasing company

format of the undertaking

has been designed by our

letter

legal services Department.

provided in page.339.

obtained

from

For a copy of the POA refer

2.

3.

who should undertake to

4.

the

lease

from

Branches

rentals

lessee
are

is

further

page 340

advised to ensure proper

The branches can either

documentation by taking all

take

Tripartite

the documents for the total

POA

limit and for each and every

the

Agreement

or

depending

upon

the

lease

transaction

as

convenience of the parties

detailed in the Book of

of the parties.

instructions.

The

POA

should

be

registered with the lessee

(R.Venkatraman)
General Manager.
Refer page 338 for format of POA for collecting lease rentals.

PERMANENT
Indian overseas Bank

Ref: ADV/60/1996-97

Central office

Date: 12.09.1996

763,Anna salai,

Issuing Dept: suit Filed

Chennai-600 00

Accounts

To all Indian Branches Regional offices and Zonal offices

INSPECTION OF SECURITIES

Reference is invited to our earlier

were not a position to ascertain at

circular

what point of time, the documents

NoADV/46/1996-97

dated

3.8.96 the subject.

were misplaced and at whose hands.

Branches, while filling suits, may be

Operational instructions

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

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

documents

photocopy
parted

of

all

the

with

to

the

lawyer/court should be kept in the

branch

custody

along

with

the

Branches were under the impression

acknowledgement form the lawyers.

that the documents were either held

Branches

by the lawyer or deposited in the

office/controlling authority periodically,

court but in reality, it was not so. We

with whom the original documents are

should

advice

central

held, through the periodical security

This circular has to be read

inspection report to be submitted as

with

permanent

circular

called for vide permanent circular

No.ADV/45/1996-1997.

Dated

No.ADV/45/96-97 dated 3.8.96.

03.08.1996.

(A.K.Nirmalanandan)
Asst.General Manager

PERMANENT

Indian overseas Bank

Ref:

MISC.59/97-98

Central office
Date:

13-08-97

763,Annasalai,
Issuing Dept: Management services
Chennai-600002

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
enhancement

there
of

credit

1.To obviate the difficulty of

having many RLs/DPNS, we are
introducing comprehensive Revival
Letters

is
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

(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

limit. This will obviate the need for

him.

taking RL for the earlier guarantees.

3.similarly

single

revised

5.while

taking

these

comprehensive revival letter (F 301-B

comprehensive RLs, branches have

Revised) need to be obtained from

to fill up all the details carefully

the

guarantor

in

respect

of

all

guarantees executed by him for a

particular borrower.
4.whenecer

6.Until

receipt

of

revised.

Comprehensive RLs (F301 Revised

and F301-B Revised) from printing &

there

is

an

Stationery Dept. branches can use

enhancement in the credit facilities,

typed forms Branches should not use

instead of taking personal guarantee

the old RL forms and they should be

(FIII) for the enhanced portion, we

disposed of treating as obsolete.

advise the branches to take personal

guarantee in F-IIIA for the aggregate

7.The above instructions come

into force with immediate effect.

(R.Natarajan)
General Manager.

PERMANENT
Ref No:
Indian overseas Bank

Misc 104/98-99

Date:

Central office

20-5-98

Issuing Dept: Management services

763,Anna Salai,
Chennai-600 002

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

mortgage by Deposit of

supplemental memorandum of Deposit

Title Deeds and/or any

of Title Deeds. This document should be

note/entry

obtained at the time of

made or letter written by

limits if

the

original advance is coveted by Deposit of

Title Deeds followed by Registered

in

recording

creditor.
2.2

In some special cases,

Memorandum.

where the parties do not

2.0

Operational instructions

have

2.1

in some of the states like

deeds, branches have to go

Maharashtra

for

like

and

the

original

title

Registered

Gujarat the stamping has

Memorandum of Deposit

been made compulsory for

of Title Deeds.

all documents evidencing

2.3

In the above said cases at

2.4

Out of the two formats of

the time of enhancement

Memorandum of Deposit

of limits/additional limits,

of Title Deeds, F416 is

branches should obtain the

dispensed with henceforth;

supplemental

F417 may be used for both

Memorandum of Deposit

cases of deposit of title

of Title Deeds as given in

deeds by the borrower as

the Annexure.

well as the third party.

(T.R. Kallapiran)
Deputy General Manager

From,

PERMANENT
Indian overseas Bank

Ref No: Misc 145/98-99

Central office

Date:

763,Anna Salai,

Issuing: Management

Chennai-600 002

Dept:

22-02-99
Services (O&M)

INTRODUCTION OF COMPREHENSIVE CONFIRMATION OF BALANCE

FORMAT
1. Preamble:
1.1 As

per

Banks

manual

on

Documentation page 6 Para 14,

confirmation of Balance is to be
obtained every year from the

comprehensive confirmation of
balance format.
2. Operational instructions:
a. The new format F237B

borrowers for all Cash Credit

comprehensive

accounts and over drafts and the

confirmation of balance

same to be obtained every year

is annexed. Till supplies

from

are made by printing and

the

guarantors

for

all

borrower accounts. The existing

Stationery

format F237A was conceived for

Branches can type the

single

format given in annexure

facility

and

as

such

branches have to take a number of

confirmation of Balances from

Department,

and use the same.

b. This new format should be

borrowers who are sanctioned

taken

multiple

To

borrowers with multiple

surmount this difficulty, it is felt

credit facilities and also

necessary

from the guarantors of

credit
to

facilities.
introduce

in

such facilities.

cases

of

c. Other

procedures

connected with obtention

3.

Conclusion;
a. It

is

reiterated

that

of confirmation of balance

branches should obtain the

remain unchanged.

confirmation

d. The existing confirmation

of

valance/comprehensive

of balance (F237A) format

confirmation of Balance in

will continue to be valid

time as per procedures

and the same can be

prescribed and keep the

utilized

documents alive

enjoying

for

borrowers

single

credit

facility.
(R.Natarajan)
General Manager.

From,

PERMANENT
Indian overseas Bank

Ref No: Adv/330/99-2000

Central office

Date:

763,Anna Salai,

Issuing: Management

Chennai-600 002

Dept:

20-05-99
Services (O&M)

TO ALL INDIAN BRANCHES AND REGIONAL OFFICES

FOREIGN CURENCY LOAN TERM LOAN DOCUMENTATION
1.0.

Preamble
Attention of Branches and

advised

Regional Offices is drawn

aspect of WCFC.

to

Now

our

permanent

FX

documentation
we

advise

circular no 10/96-97 dated

documentation aspect for

21.01.97 and FED ADMIN

FCL-TL.

circular No 2/97-98 dated

2.0.

27.05.97 which outlined the

Operational

procedure

relating

to

Instructions:
2.1.

Foreign

Foreign Currency Loan to

Currency Loans Term

be

Loans

granted

as Working

are

being

Capital Demand Loan in

considered

Foreign Currency (WCFC)

availability of foreign

and Foreign Currency Loan

currency funds as well

Term Loan (FCL TL)

as specific approval of

We refer to

the

advances

permanent
circular

ADV/168/97-98
15.10.97

wherein

dated
we

subject

relevant

department.

to

credit
Before

granting term loans in

foreign

currency,

besides

obtaining

FEDCO (one

regular documents, the

week

following letters are to

to be given to

be exchanged between

FEDCO) and

the

then only the

branch

and

the

borrowers.

notice

letter is to be

2.1.1. Letter

of

Offer

issued to the

By

branch

borrower.

to

borrower

2.1.4. Letter

of

Undertaking

Annexure 1

by

2.1.2. Application

the

borrower and

by party in

guarantor(s).

their

letter

Third

head

with

reference
above

Party

Mortgagor(s)

to

letter

Hypothecator

of offer no

(s) if any, and

specific

to be stamped

format

is

as

prescribed.
2.1.3. Letter

an

Agreement
to

(as

per the

borrower

Stamp Act in

confirming

force in the

availability of

state where it

Funds

is executed)

Annexure II.

Annexure III.

Branch has to

2.2.

At the time of

confirm

extending the FCL TL

availability of

facility branches should

funds

ensure

from

that

regular

documents such as Term

to

Loan

Agreement

in

maturity

Form

No

FCNR

(modified)

110-

match

with

the

period

of

(B)

deposits.

(Annexure

Hence lending for a

V) for securing movable

term in excess of three

assets, Guarantee(s) in F

years is not advisable, as

111/F-111A

it would create a large

(modified)

(Annexure VI and VII)

mismatch.

Mortgage of immovable

If FCL-TL for a term

properties as stipulated

exceeding three years is

in

to

the

sanction

endorsement
obtained

are

and

charge

creation are perfect.

2.3.

Please

granted,

following

may be made.
I)

The loan would

initially

obtain the consent letter

granted

of the borrower, stating

term

that whenever there is

years

in

LIBOR

the

stipulations

to

change

note

be

II)

be
for

of

three

The bank may at

and/or whenever there

their option roll

is a change in the spread

over the loan at

in interest rate and /or

the end of three

tax

years

rate

necessary

modification of charge

III)

If the bank is
unable

Registrar of Companies.

over the loan at

2.4.

will be filed with the

In terms of FED

to

roll

the end of three

Admn circular no 2/97-

years

the

loan

98 dt. 27.05.97, the term

will be converted

FCL-TL will be for a

to a rupee term

maximum of three years

loan at the TT

selling

rate

normally upto six

prevailing

on

months but can

spot date

(two

be booked for a

business

days

period upto one

before the third

year and rolled

year

over

maturity

till

date) and interest

respective

from the date of

date.

conversion

the
due

will

be charged at the

At the time of

rate

availing the loan

applicable

for rupee term

the

LIBOR

loan accounts.

interest

rate

would be quoted
When FCL TL

for a period of

is

three months or

granted

three

for
years

repayable

six

in

months

agreed to.

as
The

quarterly/half-

LIBOR

yearly

applicable for the

instalments,

the

interest

successive

three

customer has to

months/six

normally book a

months period as

forward contract

agreed to would

for

be

instalment

each
viz.

refixed

periodically

on

first instalment,

the relevant spot

second

dates.

instalment

etc.

Forward cover is
available

2.5.

In

case

additional FCL TL is

granted or in the event

the state where it is

of roll over, all the

executed).

procedure

enumerated

2.7.

Branches should

in paragraph 1,2 and 3

note

above may be adopted

transaction cost at the

and

of

rate of 0.5% the FCL-

charge has to be filed

TL amount subject to a

with the Registrar of

minimum of USD 1000/-

Companies.

at the time of disbursal

2.6.

modification

For

to

recover

FCL-TL

of the loan amount in

already granted all the

addition to the usual

procedures

as

fees

enumerated

in

applicable to rupee term

paragraph
above

have

and
to

2
be

and

charges

loan account.
2.8.

In

case

followed except that in

prepayment is agreed

lieu

of

Letter

of

to, it shall be done on

as

in

interest refixation date

Annexure III, branches

and the prepayment fee

have to obtain Letter of

should

Undertaking

recovered as a flat fee of

Undertaking

from

borrower,
guarantor(s)

be

separately

2% on the FCL-TL
/Third

outstanding. Interest on

Party

the

Mortgagor(s)/Hypothec

charged for the actual

ator(s) if any, as per

period for which the

Annexure IV and it

loan has run, at the

must be stamped as an

contracted

Agreement (as per the

interest.

Stamp Act in force in

2.9.

loan

should

rate

be

of

Management
Services

Department

have

vide

their

Permanent Circular no
Misc.
21.09.98

FC (WCFC)

4152

116/98-99

dt.

FCCTLFC)

changed

the

4153

GL code numbers as
follows.

Branches are advised to

take note of above while
extending FCL TL.

(Jerome Royapan)
Assistant General Manager