Pledge of goods against Bills of Lading to secure advances receive from Bank
In consideration of your advancing to us the sum of Rs.________ or otherwise making or continuing advances or giving us credit or banking facilities we have this day of __________ pledged to you the goods represented by the documents today delivered to you and mentioned in the Schedule hereto the validity of which documents we guarantee. It is understood and agreed that the terms upon which the said advance(s) credit and facilities have been or will be made or given are as follows:
- The goods and the proceeds of all insurances thereon and all sales thereof and all our rights as unpaid sellers thereof shall be a continuing security for the repayment to you on demand of all monies and liabilities now or hereinafter due from us to you upon any account or in any manner whatever.
- The goods are readily saleable and worth at today’s spot prices the amount stated in the schedule. They are free from any lien in your hands except for any unpaid freight lading charges and warehouse rent deducted in the schedule.
- The goods are insured as stated in the schedule and shall be kept insured against such risks and in such amounts as you may from time to time require.
- If the current market value of the goods shall at any time be less than ______ per cent in excess of the said advance or the amount thereof for the time being outstanding we will without notice from you forthwith provide you with sufficient cash or additional security to your satisfaction to restore that margin of value and in the event of our failing to pay or provide for the payment of any money or liabilities due to you from us we hereby authorise and empower you to sell the goods or any part thereof or any additional security without notice to us.
- All the terms hereof shall apply to any such additional security as though it had been originally included herein.
- Bills of lading may be accepted in full sets or as presented and your right to repayment shall not be prejudiced or affected by any invalidity insufficiency irregularity or misdescription of or in the documents or gods or any insurance thereon.
[Signatures of Pledgors]