Agreement for pledge of articles to secure the repayment of loan with power of sale in default of payment?and other usual covenants for liability for?loss etc. of pledged goods.
MEMORANDUM OF AN AGREEMENT made on _____ day of_____
_________________________________________________ (insert name, address etc. of PAWNER) (hereinafter called “the PLEDGOR”) of the ONE PART
_______________________________________________ (insert name, address etc. of PAWNEE) (hereinafter called “the PLEDGEE”) of the OTHER PART.
WHEREBY IT IS AGREED as follows:
- The pledgee has on ________ lent the sum of Rs _________ (loan) to the Pledgor (as the Pledgor hereby admits and acknowledges) and the Pledgor has delivered to the Pledgee the following articles as fully described in the Schedule written hereunder by way of pledge for securing the payment on or before the _______ day of _______ next of ________ the said principal amount of loan of Rs __________ interest thereon from the date of this memorandum at the rate of _____ per cent per annum; the expenses which may be incurred by the insuring the said articles gainst loss or damage by fire; the sum of Rs _______ per week for storing the said articles, all expenses which may be incurred by the Pledgor in relation to the said articles or in maintaining his special property in the same.
- In consideration of the said loan the Pledgor promises to pay the said several items specified in sub-clauses (1) to (5) inclusive of clause 1 hereof on the said _______ day of _______.
- In the event of the said loan with interest as aforesaid not being repaid by the said _____ day of _____ at aforesaid the pledgee may without giving notice to the Pledgor sell the said articles or any of them either by public auction or private contract and in one lot or separately or in such manner as he may think fit.
- Out of the proceeds of sale of the said articles the Pledgee may retain all expenses incurred by him in selling or attempting to sell the same and also a sum sufficient to satisfy the items specified in sub-clauses (1) to (5) inclusive of clause 1 hereof and also a sum sufficient to satisfy any other loans which have been made by the pledgee to the pledgor and which are then due and owing and any interest accrued due thereon and unpaid whether such loans have been made upon the security of the said articles or not and subject thereto the Pledgee shall pay the balance of the said proceeds of sale to the pledgor.
- In the event of the said articles being sold by auction as aforesaid the pledgee shall be at liberty to bid for and become the purchaser of the same and shall in such event be liable to account to the pledgor only for the sum at which he purchased.
- In the event of the said articles being lost destroyed or injured during the continuance of this security or if the pledgee be liable to the Pledgor in law or otherwise in respect of the said articles the value of the said articles shall be entimated at a sum not greater than the amount of the said loan together with ____ per cent thereof and in no case shall the pledgee be liable to the pledgor for any amount greater than the sum so estimated as aforesaid.
(Or, The aggregate value of the said articles shall as between the Pledgor and the Pledgee be deemed to be Rs. _______ and in case the Pledgor shall become liable to the Pledgee by reason of the loss destruction or injury of the said articles or any of them during the continuance of this security his total liability shall not exceed the said sum of Rs.__________.
(Or The respective values of the said articles shall as between the Pledgor and the Pledgee be deemed to be the following (description of articles and agreed values) and in case the Pledgee shall become liable to the Pledgor by reason of the loss destruction or injury of any one or more of the said articles during the continuance of this security his liability shall not exceed the agreed value of each of such articles respectively above set forth)
- The pledgee is hereby empowered to deliver the said articles to any person producing the duplicate hereof upon the payment by such person to the pledgee of the sums specified in sub-cluases (1) to (5) inclusive of clause 1 hereof.
THE SCHEDULE ABOVE RETERRED TO:
(Full description of the articles pledged)
IN WITNESS etc.
[Signatures of Pledgor and Pledgee]