Supplemental Deed or Hypothecation of Goods for Addi- tional security with the existing Cash Credit Limit Facility
THIS AGREEMENT made at ________ this _______ day of ________ 20_____.
BETWEEN
______________________________________ (hereinafter called ‘the borrower’ which expression shall unless excluded by or repugnant to the context be deemed to include its legal heirs, successors, executors, administrators, representatives and assigns) of the ONE PART AND ________________ BANK, a body corporate constituted under the Act, and having its Head Office at and a Branch Office inter alia, at (hereinafter called ‘the bank’ which expression shall unless excluded by or repugnant to the context be deemed to include its successors and assigns) of the OTHER PART:
WHEREAS by a deed of Hypothecation made on day of ______ 20_____ by the borrower in favour of the Bank (hereinafter called ‘the Principal Deed of Hypothecation’) the borrower in consideration of the bank having granted and/ or agreed to grant to the borrower accommodation by way of cash credit facilities to the extent of Rs.________ hypothecated to and in favour of the bank all the present and future stocks and movable of the borrower as mentioned in the Principal Deed of Hypothecation (hereinafter called ‘Hypothecated Goods’) as security for the due repayment by the borrower to the bank of the balance for the time being due to the bank in the said cash credit account of the borrower with the bank inclusive of principal, interests, costs, charges and expenses.
AND WHEREAS at the request of the borrower the bank has agreed to continue the said cash credit facilities subject to the borrower furnishing additional securities for the said cash credit facilities in the manner hereinafter stated.
NOW THIS DEED WITNESS that in pursuance of the said agreement and in consideration of the bank agreeing to continue the cash credit facilities to the borrower, the borrower hereto agrees that this agreement shall be supplemental to the Principal Deed of Hypothecation and the borrower hereby hypothecates by way of first charge in favour of the bank goods described in the schedule hereto which shall include all product goods and movable property of any kind belonging to the borrower now or hereinafter from time to time during the currency of this guarantee shall be brought in, stored or be in or about the borrower’s premises or godown at __________ or wherever the same may be as security for the payment by the borrower to the bank “of the balance due to the bank” at any time or ultimately the closing of the said cash credit account and that the expression “of a balance due to the bank” herein shall have the same meaning as contained in the Principal Deed of Hypothecation AND THAT all the rights, powers and provisions contained in the Principal Deed of Hypothecation shall extend to and be applicable to the securities hereby created in the same manner as if the corresponding rights, powers and provisions were expressly inserted in those presents AND THAT save as provided hereinabove and the terms and conditions set out and contained in the Principal Deed of Hypothecation shall remain in full force and effect.
THE SCHEDULE ABOVE REFERRED TO:
IN WITNESS WHEREOF the borrower has executed these presents the day, month and year first above written.
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