Docstoc

U1

Document Sample
U1 Powered By Docstoc
					DRAFT FOR DISCUSSION PURPOSES ONLY
August07-VI




                            (To be stamped as an agreement)
                 UNDERTAKING FOR CREATION OF PERMANENT SECURITY


[Name & Address of the Lenders]

[Name & Address of the Lead Bank]

Dear Sirs:
1
 I / We, 2___________________________________ (the “Borrower") refer to the Facility
Agreement dated the ______ day of __________, Two Thousand and _______ entered into
between the Borrower and yourselves (the “Facility Agreement", which expression shall
include all amendments made thereto from time to time) in respect of rupee loans not
exceeding in the aggregate Rs ______ lacs (the “Facility") lent and advanced / agreed to be
lent and advanced to the Borrower by yourselves on the terms and conditions set out in the
Facility Agreement.

As stipulated in the Facility Agreement, the Facility is to be secured by, inter alia,
immoveable properties.




1
    delete whichever is not applicable
2
    insert name of the borrower; copy description from the facility agreement



Page 1 of 3
DRAFT FOR DISCUSSION PURPOSES ONLY
August07-VI



3
 I / We are aware that we have to comply with various formalities prior to creation of
mortgage in favour of yourselves. 4I / We have already initiated requisite action in this
behalf.

Pending compliance of requisite formalities and pursuant thereto, creation of effective
security in favour of yourselves as stipulated in the Facility Agreement, you have, at 5my /
our request, agreed to make disbursements out of the Facility, subject, inter alia, to the
following :

i)         the Borrower 6and _________ creating hypothecation of all the moveable assets as
           mentioned in the Facility Agreement;
ii)        the Borrower paying additional interest at the rate of ____% per annum till creation of
           security as stipulated in the Facility Agreement to your satisfaction;
iii)       the Borrower 7and ________ not creating any mortgage, charge or encumbrance on
           any of its properties in favour of any person whosoever without prior written approval
           of yourselves;
iv)        the Borrower 8and ________ undertaking to comply with all requisite formalities
           within a period of six months from the date hereof or such extended time as may be
           agreed to by yourselves and to create mortgage and charge over the lands, buildings
           and other fixed assets of the Borrower 9and ________, in such form and in such
           manner as may be stipulated and required by yourselves in that behalf;
v)         the Borrower furnishing a guarantee from ____________, in a form satisfactory to
           yourselves;
           10
vi)           the Borrower furnishing an undertaking in a form similar to this undertaking from
           ____________ for creating security over its immoveable properties;
vii)       the Borrower 11and ________ executing a power of attorney in favour of the Lead
           Bank for creation of mortgage, in a form satisfactory to yourselves.

In consideration of the above premises, the Borrower hereby agrees with and undertakes to
yourselves that -
a)     the Borrower shall pay additional interest at the rate of ____% per annum on the
       Facility till the creation of security as stipulated in the Facility Agreement to your
       satisfaction;
b)     the Borrower 12and ________ shall not create any mortgage, charge or encumbrance
       on any of its properties in favour of any person whosoever without your prior written
       approval;
c)     the Borrower shall, within a period of six months or such extended time as may be
       agreed to by yourselves, comply with all requisite formalities for mortgaging and
       charging the lands, buildings and other fixed assets in such form and in such manner
       as may be stipulated and required by you in that behalf;
d)     the Borrower 13and ________ shall execute a power of attorney in favour of the Lead
       Bank for creation of mortgage, in a form satisfactory to you;
3
  delete whichever is not applicable
4
  delete whichever is not applicable
5
  delete whichever is not applicable
6
  insert name of third party which is providing security, if applicable
7
  insert name of third party which is providing security, if applicable
8
  insert name of third party which is providing security, if applicable
9
  insert name of third party which is providing security, if applicable
10
   delete if not applicable
11
   insert name of third party which is providing security, if applicable
12
   insert name of third party which is providing security, if applicable
13
   insert name of third party which is providing security, if applicable



Page 2 of 3
DRAFT FOR DISCUSSION PURPOSES ONLY
August07-VI



           14
e)           the Borrower shall furnish an undertaking in a form similar to this undertaking from
           ____________ for creating security over its immoveable properties;
f)         after complying with the requisite formalities within a period of ____ months from
           the date hereof or such extended time as may be agreed to in writing by your Bank, as
           mentioned above, create in your favour / the Lead Bank, a 15exclusive / first / second
           mortgage and charge, in a form and manner as may be stipulated and required by you
           over all the Borrower’s 16and __________’s lands, buildings and fixed assets, both
           present and future, as stipulated in the Facility Agreement and complete the effective
           security thereof in your favour to your satisfaction.
17
 I / We agree that any breach or default in complying with all or any of the aforesaid
undertaking(s) will constitute an event of default under the Facility Agreement.
18
  I / We are aware that it is on the faith of our aforesaid undertakings that you have agreed to
accept a security of hypothecation of moveables and _________ as aforesaid.

Yours faithfully,
19
   ___________________________



Dated this ______ day of _______________ 20__




14
   delete if not applicable
15
   delete whichever is not applicable
16
   insert name of third party which is providing security, if applicable
17
   delete whichever is not applicable
18
   delete whichever is not applicable
19
   insert name of borrower and description as given on page 1; to be signed by authorized signatory in case of company, trust which is in the
nature of a company, society



Page 3 of 3

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:9/26/2012
language:English
pages:3