AGREEMENT FOR HYPOTHECATION OF RENT/COMPENSATION RECEIVABLES.
THE AGREEMENT is made and executed on this the ............... day of ........... 20-------- by……………. and between Sri/M/s...................... hereinafter called “The Borrowers” of the first part, which expression shall be deemed to include its assigns, successors or his heirs and legal representatives etc. as the case may be and.........Bank, a Banking Company constituted under the Banking Companies Acquisition and Transfer of Undertakings) Act having its Head Office at........... and branches inter alia one at ............... hereinafter called “The Bank”, which expression shall be deemed to include its assigns, successors and attorneys, of the other part.
WHEREAS the Borrowers is/are the owner/s/holder/s of immovable properties and is/are receivables disentitled to receive and or recover rent/compensation in respect of premises let out on lease/licence and whereas the Borrowers approached the Bank for financial accommodation by way of Corp Rental loan of Rs. ...................... (Rupees ..............) Only under Corp Rental Scheme of the Bank against Rent/Compensation Receivables. (including live/non-live stocks) to secure demand cash credit account And whereas the Bank agreed to open in their books of account at its .................. branch Corp Rental Loan A/c. of Rs. ...................... in the name of the Borrowers, provided the borrowers secure repayment of the same by hypothecation rent/compensation receivables by them in respect of schedule premises besides other securities/guarantees including Corp Rental Loan Agreement.
IN PURSUANCE WHERE OF this agreement witnesseth as follows
1. The Borrowers hereby hypothecate in favour of the Bank, both the present as well as the future, Rent/Compensation Receivables including arrears, if any, in respect of immovable property described in schedule hereto which are hereinafter collectively called as “Rent Receivables” and equitably assign the same by way of first charge as security for the repayment of balance due in respect of the said Corp Rental Loan A/c. to the Bank and for payment of all and/or any other debts and liabilities of the Borrower to the bank arisen howsoever due to whatsoever transactions of/by the Borrower, solely or jointly with other(s), together with all interest, charges, costs (between attorney and client) incidental charges, service, charges, guarantee fees, any other fee, charges, expenses payable to or incurred by the bank in relation to the Borrowers Crop Rental Loan A/c. The expression “balance due to the Bank” shall be deemed to mean and include all monies from time to time due on the said Corp Rental Loan Account together with the interest thereon, whether debited or not, compounded monthly/quarterly rests, at the rate of ......................% per annum over and above the Reserve Bank of India Rate subject to a minimum of ......................% per annum.
2. The security offered by these presents shall be a continuing security for all monies/amounts due by the Borrowers in any manner whatsoever and the security shall not in any manner be affected even if the account(s) shows a ‘nil’ balance for the time being or from time to time or even a credit balance at any time in favour of the Borrowers. The security shall also be available for any such other debts/liabilities and obligations as stated above, and shall not affect or be affected by any other security/securities, lien or charge held by the Bank, or to which the Bank may be entitled to.
3. The Bank shall not be liable or bound to make or continue to make advances on the said Corp Rental Loan A/c. or otherwise than at its absolute discretion.
4. That on default of the Borrowers in repayment of any money/ies hereby secured for the disperformance of any obligation to the Bank, or the occurrence of any circumstances in the opinion of the Bank endangering the security, the Bank shall be entitled, at the Borrower’s risk and expense, as attorney for and in the name of the Borrowers or otherwise, to appoint receivers for any Rent/Compensation Receivables under this security, to give notice and or demand of the debtor(s) including live/non-live stocks) to secure demand cash credit accountant third parties liable therefor, due for, recover receive and give receipts for the same and sell or realise by public auction or private contract or otherwise dispose of all or any part of such Rent/Compensation Receivables, and enforce, settle compromise submit to arbitration or deal in any manner with any debts or claims under this security through Agents, Managers or otherwise, without being bound to exercise any of these powers or liable for any loss in the exercise thereof and without prejudice to the Bank’s rights and remedies of suit or otherwise and notwithstanding any pending suit or other proceedings and Borrower shall accept Bank’s accounts of receipts or realisation as sufficient proof of amount realised and the relative expenses thereto and to pay any shortfall or deficiency thereby shown provided that the Bank shall be entitled, at all times to apply any other money or monies in its hands standing to the credit of or belonging to the Borrowers(s), in or towards payment of any amount for the time being payable to the Bank on Corp Rental Loan Account or otherwise as aforesaid and to recover at any time from the Borrowers, by suit or otherwise, the balance remaining payable to the Bank on or in respect of the said Corp Rental Loan A/c. or otherwise, notwithstanding that all or any of the securities may not have been recalled/realised, provided also that subject to these powers of the Bank, the Borrower(s) may, with the approval of the Bank, deal with the said debts and assets in due course of business on the express understanding that the same and all proceeds thereof and the documents therefor are always kept distinguishable and held as Bank’s exclusive property specifically appropriated to this security to be dealt with only under the directions of the Bank and the Borrowers shall not create any mortgage, charge, lien or encumbrance upon or over same or any part thereof except to the Bank, nor suffer any such mortgage, charge, lien or encumbrance or attachment to affect the same or any part thereof, nor do or allow anything that may prejudice the security furnished to the Bank.
5. The Borrowers shall furnish periodical statements, reports accounts, documents and information and shall also execute all documents and do all acts, deeds and things which the Bank may require to give effect hereto and the Borrowers authorise, nominate constitute and appoint the receivables Bank and/or each of its agents and nominees as attorneys for and in the name of the Borrowers to do whatever the Borrowers may be required to do hereunder to give effect to these presents under the name and seal of the Borrowers, if necessary.
6. Nothing herein contained shall affect, limit, negative or take away the right of the Bank to recover personally from the Borrowers or from properties of the Borrower the balance for the time including live/non-live stocks) to secure demand cash credit account being due in the said Corp Rental Loan Account notwithstanding that all or any of the hypothecated Rent/Compensation Receivables may not have realised.
7. Borrower’s declare/s that all the present and further Rent/Compensation Receivables, debts and assets as aforesaid, are the absolute property of the Borrowers and at the sole disposal of the Borrowers and free from any prior encumbrance, charge or the like and they shall be kept free from attachment, encumbrance or charge etc. whatsoever.
8. Borrower/s hereby agree/s, as a pre-condition of the loan given/to be given to him/them by the Bank that in case he/they commit default in the repayment of any of the agreed instalments of the loan or other dues on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish Borrower/s name and or the name of Borrower’s Director/partners/proprietors as defaulters in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit.
9. Borrower/s agree/s to give/have given notice of assignment of Rent/Compensation receivables by him/them jointly with the Bank to tenants/licensees in occupation of the premises/tenements.