Supplemental deed of hypothecation with additional security to secure further accommodation of advance
THIS AGREEMENT made on ________ this _______ day of _____ 20______
BETWEEN
_______________ (hereinafter called “the Borrower”) which expression shall unless excluded by or repugnant to the context be deemed to include its legal heirs, successors, executors, administrators, representatives and assigns) of the ONE PART
AND
__________ BANK, a body corporate constitute under the ______ Act, and having its Head Office at and a Branch Officer inter alia, at ________ (hereinafter called “the Bank”) which expression shall unless excluded by or repugnant to the context be deemed to include its successors and assigns) of the OTHER PART :
WHEREAS by a deed of hypothecation made on _________ day of ______ 20_______ by the borrower in favour of the bank (hereinafter called ‘the Principal Deed of Hypothecation’) the borrower in consideration of the bank having granted and/or agreed to grant to the borrower accommodation by way of cash credit facilities to the extent of Rs. __________ hypothecated to and in favour of the bank all the present and future stocks and movables of the borrower as mentioned in the Principal Deed of Hypothecation (hereinafter called ‘Hypothecated Goods”) as security for the due repayment by the borrower to the bank of the balance for the time being due to the bank in the said cash credit account of the borrower with the bank inclusive of principal, interests, costs, charges and expenses.
AND WHEREAS the borrower has requested the bank to grant to the borrower further accommodation by way of cash credit facilities by enhancing existing limit thereof from Rs. ________ to Rs. _______ which the bank has agreed to do on the borrower agreeing to furnish additional security, as hereinafter provided and further on the borrower agreeing that the hypothecated goods shall constitute security not only for existing limit of Rs. ________ but also for the enhancing limit of Rs. _______ agreed to be granted as aforesaid with all interests, costs, charges and expenses and other money as hereafter provided.
NOW THIS DEED WITNESSES that in pursuance of the said agreement and in consideration of the bank having granted and/or agreed to grant further accommodation to the borrower by way of cash credit facilities by enhancing the maximum limit thereof from Rs. __________ to Rs. __________ the borrower hereby agrees that this agreement shall be supplemental to the Principal Deed of Hypothecation AND THAT the borrower hypothecates by way of first charge in favour of the bank the goods described in the schedule hereto which shall include all goods and movable property of any kind belonging to the borrower which now or hereinafter from time to time during the currency of this guarantee shall be brought or wherever else the same may be as security for the payment by the borrower to the bank, of the balance due to the bank at any time ultimately on the closing said cash credit account and that the expression “the balance due to the bank” here shall have the same meaning as in the Principal Deed of Hypothecation and the hypothecated goods charged under the Principal Deed of Hypothecation shall constitute security in favour of the bank by way of first charge for such enhanced facilities with the aggregate limit of Rs.__________ and for payment by the borrower to the bank of all principal money together with interests, at the rate specified in the Principal Deed of Hypothecation or at such other rate or rates as the bank may notify from time to time and all costs, charges and expenses incurred by the bank to the date of repayment for the preservation, protection defence or perfection of the security created by the Principal Deed of Hypothecation shall be read and construed as if the maximum limit mentioned therein is Rs. ______ in place and stead of Rs._____ AND THAT the words and figures “Rupees ____________” Wherever appearing in the Principal Deed of Hypothecation shall be substituted by the words and figures “Rupees _________” as if the same were originally written therein AND THAT save as expressly modified as aforesaid all the terms and conditions set out and contained in the Principal Deed of Hypothecation shall remain in full force and effect.
THE SCHEDULE ABOVE REFERRED TO:
IN WITHESS WHEREOF, etc.
