BOND BY BUILDER-CUM-PROMOTER TO THE FINANCING COMPANY FOR THE LOAN ADVANCED FOR CONSTRUCTION
KNOW ALL MEN by these presents:
WHEREAS _____________, the principal has constructed and is constructing a building and making developments of the site situate at _________.
AND WHEREAS _________ the Financing Company has agreed to provide necessary funds to the said _________ for the purpose of said construction and improvements as and by way of loan and advances under the terms and conditions herein contained.
That we ___________ are hereby jointly and severally bound unto __________ Financing Company in the sum of Rs. ___________ (Rupees _____________).
The conditions of this obligation are such that, whereas the said _________ principal in ihe said obligation, has constructed and is constructing a building and other improvements on the premises lying and situate at ________.
AND WHEREAS, the _____________ Financing Company is to furnish, advance and loan, to said _______________, money to be used in paying for labour done and material furnished in the construction of the said building and improvements, or for other purposes, the payment of the money so furnished, advanced, and loaned, to said ________ secured to the said _________ Financing Company by a mortgage or deed of trust on the premises herein above described:
NOW, if the said _________ shall fully pay and discharge a]l claims and demands of every kind and description for and on account of labour done and material furnished in, for, and about the construction of said building and improvements; and shall pay off and discharge all such demands and claims before any lien is filed against said property, and shall pay off and discharge all liens which may exist against said property; and shall fully indemnify the said __________; Financing Company for and on account of any loss or damage it may sustain on account of the neglect or failure of said ________ to pay off and discharge any such demand, claim or lien, then this obligation shall be void; otherwise it shall remain in full force and effect.
SIGNED, SEALED AND DELIVERED in the presence of: