Agreement-cum-Letter of hypothecation/pledge to be obtained for packing credit advances
In consideration of your agreeing to make packing credit advances to us from time by way of Demand Loan, the balance of which is not at any time to exceed Rs._______ (Rupees____________) we hereby agree as follows:
- All such advances taken by us from you in the said Demand Loan Account shall be applied by us solely in the purchase, production, procurement, preparation or processing of goods, specified in the Schedule hereunder written, for eventual shipment to our overseas buyers.
- The said goods shall not, when purchased, produced, procured, prepared or processed be subject or be allowed to be subject to any charge or lien or encumbrance in favour of other bank, firm, company or any person or persons and so long as there shall be any balance due to the bank in the said account, we will not obtain any advance from any other bank, firm, company or other person or persons on the said goods, or any other goods in our godown, or do or permit to be done any act whereby the security of the Bank or over the said goods may be prejudicially affected.
- We do hereby pledge/hypothecate to you by way of first charge the said goods to be purchased, produced, procured, prepared or processed out of the advances from time to time made by you, lying and being during the continuance of this security either at our godown at _______ or elsewhere. The goods so pledged/hypothecated shall be a continuing security to you for payment on demand of all other moneys which are now or shall at any time be due to you from us either alone or jointly with any other person or persons either on account current or for money advanced or paid or in respect of bills, drafts or notes accepted, paid, or dishonoured, interest, commission or any other lawful charges or any other account whatsoever together with all costs and expenses.
- That until such advances have been repaid to you either by proceeds of Bills of Exchange sold to you, or in cash, all such goods shall be kept apart by us from and not intermingled with all other goods in our godowns and shall be held by us as Agents for you.
- We will, when required, give you full particulars of the said goods held by us on your behalf and we hereby undertake and guarantee that the value of the goods so held by us on your account shall at all times be at least _____ per cent above the balance due to you by us in the said account.
- We undertake to keep the goods in good condition and have the same fully insured against fire and other risks as you may require, to their full insurable value, until such time as the goods shall be covered by marine policies and to hand over to you all insurance documents, duly assigned in your favour, to ensure receipt by you of all moneys recoverable under the said insurance.
- When called upon to do so, we hereby undertake to deliver to you at any time the said goods to enable you to sell or at your discretion to ship the same for the purpose of realisation under your directions.
- Immediately upon the shipment of the said goods or any part thereof we undertake to hand over to you the shipping documents.
- Nothing herein contained shall operate to prejudice your rights or remedies in respect of any present or future security guarantee, obligation or decree for any of our indebtedness or liabilities to you and these presents shall not operate to merge or extinguish any security created by us in your favour.
- Any indulgence whatsoever that may from time to time or at any time or times be given to us by you shall not prejudice your rights in any way or be deemed to be a waiver by you of any of your rights whatsoever.
- We further agree and undertake that we shall at all times hereafter at our costs execute and do all such further assurance and things for the further and better assuring of the charged goods as may be lawfully required by you.
- Any notice by way of request demand or otherwise hereinunder may be given by you to us by being left at or sent by post addressed to the last known address recorded with you and if sent by post it shall be deemed to have been given at the time when it would be delivered in due course of post and in proving such notice when given by post it shall be sufficient to prove that the envelope containing the notice was posted and a certificate signed by you or any of your Officers that the envelope was so posted shall be conclusive.
SCHEDULE ABOVE REFERRED TO: