Letter from Depositors for advances against Recurring Deposit Account balance
In consideration of your allowing/having agreed to allow me/us an advance of Rs. ______________ on Pronote Account/to the extent of Rs.__________ outstanding at anyone time, in Overdraft Account and of further advances which you may, at your discretion, make to me/us later, against security of the balance, viz. Rs. ___________, standing at my/our credit in the Recurring Deposit Account No._________ for _________ months with you, I/we hereby give you a lien over my/our said credit balance in the Recurring Deposit Account No.___________ and hand my/our relative Pass Book to be held by you, till all my/our dues to the Bank are repaid. In the event of my/our failing on demand (such demand being made in a letter to me/us and sent by registered post to my/our address as given above/recorded with you), to repay the said sum, with interest thereon at the rate of ______ % per annum with monthly rests, or whatever amount may be due and owing by me/us according to the books of the Bank, I/we hereby give you irrevocable authority to appropriate, at your discretion and without reference to me/us, the amount standing to the credit of my/our said Recurring Deposit Account No._______ with you in adjustment of the amount due and owing by me/us to the Bank. Further, this authority would operate irrespective of whether the said Recurring Deposit has matured for payment or not at the time when adjustment, as aforesaid, is made.
I/We further declare that I/we have not encumbered, assigned or otherwise dealt with the said Recurring Deposit Account in any way.