Annexure – 1: Form No.

L – 514

BANK OF INDIA
Branch Place :
Date : , 200_

Dear Sirs,

In consideration of the advances, other facilities and banking accommodation

already granted and of those which the Bank may at its discretion, grant to me/us or
any one or more of us from time to time, I/we hereby confirm, agree, declare and
undertake as follows:
i. Right of Letter of Lien and Set Off

That in addition to your right of general lien of similar right to which you as
banker may be entitled by law, you shall have the right at any time or times
and without prior notice to me/us to combine/consolidate all or any of
my/our accounts and/or set off any credit balance due to me/us whether in
my/our current/ saving account(s) and /or in respect of money kept by me/us
on term deposit or deposits with or without interest accruing thereon
whether on maturity or before maturity thereof at any one or more of your
branch/branches against the outstanding debit balances of my/our
loan/overdraft/cash credit or other advance account/s with you or against any
liability/ies incurred or to be incurred by me/us or any of us whether under
or in respect of guarantees or bills or otherwise howsoever and whether such
liability/ies be actual or contingent, primary or collateral, joint or several
and whether as principal borrower or guarantor.

ii. Right to Combine Accounts, Right of Set -Off and Appropriation

That you may hold all securities, goods, negotiable instruments, documents
of title to goods or other properties belonging to me/us which may now be in
your possession or which may at any time hereafter come into your
possession and you may also liquidate any or all of these securities, goods,
negotiable instruments, title to goods or properties and other properties etc.
without notice to me/us and apply the proceeds thereof not only towards
repayment of the specific advance(s) for which these are offered as security
but also towards liquidation of any outstanding debit balances of my/our
loan/overdraft/cash credit or other advance account/s with you or at any one
or more of your branches against any liability/ies incurred or to be incurred
by me/us or any one of us whether under or in respect of guarantees or bills
or otherwise howsoever and whether such liability/ies be actual or
contingent, primary or collateral and joint or several or whether as principal

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 borrower(s) or guarantor(s).

*iii. Security to be Continuing Security

That the Demand Promissory Note(s) dated __/__/200_ in your favour

signed/endorsed by me/us for Rs._________________________ in respect
of _______________________________account(s), is to stand and be
regarded as a continuing security and be enforceable for all moneys which
now are or which may at any time(s) hereafter become due and owing by
the undersigned ______________to the Bank on the said account and on any
other account or accounts and whether or not from time to time there be
nothing owing in such account or the same may be in credit.

iv. Rate of Interest – Changeable

That the interest payable by me/us or any of us shall be calculated at the rate
of interest mentioned in the said Demand Promissory Note(s) or mentioned
in the loan agreement or at such other rates as the Bank may specify
generally from time to time on the notice board of the Bank/Branch
concerned or in the Newspaper for the general information of its customers
and not specific notice in the change of interest shall be required to be given
to me/us or any of us.

v. Execution of Further Documents

I/We shall execute at my/our costs in all respect such deeds and instruments
as you may require hereafter to effectuate your rights hereunder.

vi. Declaration regarding Existing Advance Facilities

That you have granted/agreed to grant me/us a loan/cash

credit/overdraft/bills discount/purchase facility to the extent of Rs.
___________________/- (Rupees : ___ _____________________) inter alia
on the faith and strength of my/our representation to you that *I/we or any
firm in which I am/any one or more of us is/are a partner/s, do not now have
any advance or other credit facility with any other branch or office of your
Bank or any other Bank.

OR

*I/We or any firm in which I am/any one or more of us is/are a partner/s

have only the following advance and other credit facilities with any other
branches or office of your Bank or other Bank viz.

(Please give brief particulars of advances/facilities and security therefor with

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 name/s of branches of this Bank/other Banks)

AS PER ANNEXURE ENCLOSED HEREWITH

vii. Declaration regarding Non-Borrowing

That I/we or any firm in which I am/any one or more of us is/are a partner/s
will not without your prior written permission obtain any other or further or
additional advances or credit facilities of any kind from any branch of your
Bank or of any other Bank, so long as I am/we are indebted/liable to you in
any way. In case I/we have an occasion to apply to your Bank for any
advances or other credit facilities at any branch, I/we shall make full
disclosure of all the then existing advances/facilities granted to me/us at any
branch of your Bank or any other Bank.

viii. Declaration regarding End Use of Funds

That I/we shall use the amounts only for the purpose for which it is
sanctioned and shall not use the amount or any part thereof directly or
indirectly for any purpose other than for which it is sanctioned.

*ix. Handing over of Deposit Receipts

I/We hand over to you herewith the various deposit receipts issued in
my/our favour, particulars whereof are given at foot hereof, duly discharged
by me/us and undertake to hand over to you any receipts obtained by me/us
in renewal thereof, and also any other deposit receipts issued to me/us
hereafter similarly discharged by me/us.

x. Non-Encumbrance of Deposit Receipts

That I/we have not encumbered, assigned or otherwise dealt with any such
credit balances/term deposits in any way and that they are and will continue
to remain free from all claims, encumbrances by any third party.

xi. Disclosure in Case of Default

That as a pre-condition of the loan/advances given to me/us or any of us by

the Bank that in case I/we or any of us commit/s default in the repayment of
the Loan/ Advances or in repayment of interest thereon or any of the agreed
installment of the loan on the date, the Bank and/or Reserve Bank of India
will have an unqualified right to disclose or publish my/our names and the
names of our Directors/Partners/Proprietors as a defaulter in such manner
and through such media as the Bank or Reserve Bank of India in it absolute
discretion may think fit.

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xii. Events of Default and Remedies to the Bank

That it is a condition of the grant of the credit facility(ies) and/or other

accommodation that if any statement made by me/us or any of us with
reference to above is found to be false at any time and/or if I/we or any of us
commit default of any of the undertaking given by me/us or any of us or
violate any of the terms and conditions of the sanction of the credit
facility/accommodation, you shall be at liberty and entitled to forthwith
revoke and/or recall the various facility(ies) granted to me/us or any of us.

SIGNATURE/S
THE COMMON SEAL of the above )
mentioned Company has been hereunto )
affixed pursuant to the resolutions of)
Board of Directors passed in that behalf
)
on the 30th day of July, 2002 in the )
presence of )
)
1. )
2. )
3. )
the Directors of the Company who have )
in token thereof hereunto subscribed )
their respective signatures. )

PARTICULARS OF EXISTING TERM DEPOSITS/OTHER DEPOSITS

Nature of Deposit Date of Deposit Amount Due Date Rate of

Interest
- - - - -
- - - - -
- - - - -

*Delete whichever is not applicable

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 ANNEXURE FORMING PART OF FORM # L – 514

BRIEF PARTICULARS OF ADVANCES/FACILITIES AND SECURITY

THEREOF WITH NAME/S OF BRANCHES OF THIS BANK/ OTHER
BANKS

Advances/Facilities With Bank/Branches*

Amount
Particulars
(Rupees In Lacs)
I – Fund Based Limits
1. Cash Credit against Hypothecation of Stocks
(Earmarked to _______________ Branch, _______)
2. Export Packing Credit
Sub-Total “A” (Maximum 1 + 2 )
3. Cash Credit against Hypothecation of Book Debts
(Earmarked to _____________ Branch, _________)
Sub-Total “B” (3 )
4. Foreign Bills Negotiated (DP/DA – _____ Days)
5. Foreign Bills Purchased (DP/DA – ____ Days)
(Earmarked to _____________ Branch, _________)
Sub-Total “C” (Maximum 4 + 5 )
Total – I (A + B + C)
II – Non-Fund Based Limits
6. Letter of Credit [(I/F) – (DP/DA – __ Days)]
7. Guarantee – (Inland)
(Sub-Limit for Foreign Guarantee – Earmarked to
______________Branch, _________)
(Earmarked to ______________ Branch, ____________) –
(I)

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Total – II (6 + 7)
Grand Total

* Advances/Facilities are being operated and monitored by Bank of India,

__________ ________________ Branch, unless otherwise specified hereinabove.

Security
Above advances/facilities are primarily secured by way of FIRST/SECOND
CHARGE on all the hypothecated goods and the debts and collaterally secured by
way of SECOND/FIRST CHARGE on all the hypothecated machinery and the
immovable properties for the due payment / repayment of all moneys, including the
principal sums, interest / commission, costs, charges and expenses and all other
moneys whatsoever due owing and payable by ___________/THE
PROPRIEROR/THE FIRM/THE COMPANY to the Bank under or in respect of or
in connection with or in anywise concerning or relating to the above
advances/facilities agreed to be granted and / or granted by the Bank
to____________ /THE PROPRIETOR/THE FIRM/THE COMPANY and also for
the due payment / repayment of all present and future indebtedness and liabilities of
THE PROPRIETORTHE /FIRM/THE COMPANY to the Bank of any kind in any
manner whether solely or jointly, primary or collateral, accrued or accruing with all
relative interest / commission, charges, costs (between advocate and client) and
expenses.

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