Bond with Sureties and Lower Rate of Interest in Case Punctuality in Payment
DEED is executed on this day of at between:
X s/o Mr. Y r/o , hereinafter called the debtor on the first part.
A s/o B, r/o ., and Mr. DC s/o RA r/o ., hereinafter jointly called the
sureties on the second part, and
C s/o D, r/o , hereinafter called the creditor on the third part.
the creditor has agreed to advance a loan of Rs.5,00,000.00 to the debtor,
which is to be repayable in four years with interest at the rate of 18% per
annum, provided two persons stand as surety of the debtor.
And whereas sureties above named are ready to stand as sureties of the debtor.
THIS DEED WITNESSES AS UNDER:
in pursuance of the said agreement the creditor has advanced a sum of
Rs.5,00,000.00 (Rupees five lacs only), the receipt of which has been
acknowledged by the debtor.
debtor shall repay the loan in five years in half yearly installments of
Rs.50,000/- with interest at the rate of 12% per annum.
in case the debtor repays the installment of loan before at least 15 days
of the due date, the interest shall be paid at the rate of 10% per annum.
in case of failure on the part of the debtor or repay the loan and interest or
its part thereof, the sureties shall be liable to repay such unpaid amount of
loan and interest, for which sureties are agreed.
the above noted parties have signed this deed on the date and place mentioned
above, after fully understanding the contents of this deed in the presence of
the following witnesses.