Supplemental Deed of Hypothecation of Goods for an increase in limit/facility without additional security
THIS AGREEMENT made 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 the borrower has requested the bank to grant to the borrower further accommodation by way of cash credit facilities by enhancing existing limit thereof from Rs._________ to Rs. _________ which the borrower has agreed to do on the terms and conditions hereinafter provided and the borrower agreeing that the Hypothecated goods shall constitute security not only for the existing limit of Rs.________ but also for the enhanced limit of Rs._________ agreed to be granted as aforesaid with all interests, cost, charges and expenses and other money as hereinafter mentioned.
NOW THIS DEED WITNESSES that in pursuance of the said agreement and in consideration of the bank having granted and/or agreed to grant further accommodation to the borrower by way of cash credit facilities by enhancing the maximum limit thereof from Rs.________ to Rs. ________ the borrower hereby agrees that this agreement shall be supplemental to the Principal Deed of Hypothecation as recited above and the Hypothecated goods charged under the Principal Deed of Hypothecation shall constitute security in favour of the bank by way of first charges for the said enhanced facilities with the aggregate limit of Rs.________ and for payment by the borrower to the bank of all principal money together with interests at the rate of specified in the Principal Deed of Hypothecation or at such rate or rates as the bank may notify to the borrower from time to time and also all costs, charges and expenses incurred by the bank till the date of payment, for the preservation, protection, defence or perfection of the security created by
the said Principal Deed of Hypothecation and the Principal Deed of Hypothecation should be read and construed as if the maximum limit mentioned therein if Rs. ________ in place and stead of Rs. ________.
AND THAT the words and figures “Rupees ___________ wherever appearing in the Principal Deed of Hypothecation shall be substituted by the words and figures “Rupees __________ as if the same were originally written therein AND THAT save as expressly modified herein all the terms and conditions set out and provided 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.
