Agreement to review claim for a time barred debt

[Alternative form]

THIS AGREEMENT made this ___________ day of ________, 20_____. Between

________________________________________________ [Bank] hereinafter called “Bank” which term shall include their executors, sucessors and assigns of the ONE PART and M/s _________________________ hereinafter called “Borrowers” which term shall include their heirs, executors, administrators and assigns of the OTHER PART.

WHEREAS the Borrowers have been enjoying banking facilities by way of Cash Credit/O.D. and a sum of Rs. ______________ (Rupees _______________) only is due from them as on ____________.

AND WHEREAS the said balance sum of Rs.____________ (Rupees___________) only has become time-barred, but the borrowers are willing and have agreed to pay the same.

AND WHEREAS upon making such agreement and undertaking by the borrowers, the bank has agreed to grant fresh advance by way of Cash Credit/ O.D. to the borrowers at the request of the borrowers.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. That pursuant to the above agreement and in consideration of the Bank agreeing to grant fresh advance by way of cash credit/O.D. up to a sum of Rs. __________ (Rupees______________) only, to the Borrowers, the Borrowers promise to pay the said Bank after demand made at any time the sum of Rs. ___________ (Rupees______________) only which the Borrowers do hereby confirm as correctly due from them as the debit balance in the cash credit Account No. _________ as on TOGETHER WITH interest at the rate of _____ % p.a. as provided hereinafter.
2. The Borrowers agree to pay to the Bank interest on the entire amount of Rs. ____________ (Rupees ______________) only at the rate of ____ % p.a. over RBI rate with a minimum of ________ % p.a. with _______ rests will repayment is made in full.
3. That the Borrowers agree to execute the necessary documents covering the said loan or an advance of Rs. ________ agreed to be advanced by the Bank.
4. That the Borrowers hereby agree and confirm that the securities described in the schedule written hereunder shall remain hypothecated/pledged for the repayment of the said amount of loan or an advance TOGETHER WITH interest and all other costs, expenses and charges as made on payable herein.

IN WITNESS WHEREOF the parties hereto have set and subscribed their hands and Seals on these presents the day, month and year first above written.