LFRR-IB_IHFL_Loan Against Agr...

35 Pages·2015·0.3 MB·English

LOANAGREEMENT
THISAGREEMENT(”Agreement”)madeontheday,monthandyearsetoutintheScheduleheretobetweentheBorrower/s(as
defined in the definition) whose name(s), address(es) other details are mentioned in Schedule (hereinafter referred to as the
Borrower/s”),
AND
INDIABULLSHOUSINGFINANCELIMITED,acompanyincorporatedundertheCompaniesAct,1956,andhavingitsregistered
officeatM-62&63,FirstFloor,ConnaughtPlace,NewDelhi-110001(hereinafterreferredtoas“IHFL”)whichexpressionunless
repugnanttothecontextorthemeaningthereof,shallmeantoincludeitsnominee/s,survivors/s,heir/s,legalrepresentative/s,
successor/sinbusiness,assign/s,parentorsubsidiaryorgroupcompany/s,administrator/s,executor/s,liquidator/setc.
ARTICLE1:DEFINITIONSANDINTERPRETATION
InthisAgreement,unlessthereisanythingrepugnanttothesubjectorcontextthereof,theexpressionlistedbelowshallhavethe
followingmeanings:
(a) “Adjustable Interest Rate” means IHFL-LFRR and the margin, if any, as specified by IHFL and set out herein this
agreement,applicableastheinterestrateontheLoanoftheBorrower/spursuanttothisAgreement.
(b) “Agreement” or “LoanAgreement” means this agreement, all schedules hereunder and all amendment(s)/ addendum(s)
tothisAgreementincludingsuchotherdocument(s),whichismadeaparttothisAgreementbyreference.
(c) “Borrower/s” means the persons named in the Schedule to this agreement, expression “Borrower/s” shall, unless it be
repugnanttothesubjectorasthecontextmaypermitorrequire,include,(i)inthecaseofcompanyorsocietyregistered
under the applicable laws relating to companies/ societies and includes its successors and permitted assigns etc. (ii) in
the case of partnership firm within the meaning of the Indian Partnership Act, 1932, any or each of the partners and
survivors(s) of them and partners from time to time (both in the personal capacity and as partners of the firm and their
respectiveheirsexecutors,administratorsandpermittedassigns,legalrepresentativesandsuccessorsofthefirm;(iii)in
the case of proprietorship concern, the proprietor/proprietress (both in his/her personal capacity and as
proprietor/proprietress of the concern) and his/her/their respective heirs executors, administrators and permitted assigns,
legal representatives and successors of the concern; (iv) in the case of joint HUF, the karta of the joint HUF and any or
each of the adult members/coparceners of the joint HUF and the survivor(s) of them of and their respective heirs;
executors, administrators and permitted assigns, legal representatives and successors; (v) in the case of individual, his
/her/their respective heirs executors, administrators and permitted assigns, legal representatives and successors; (vi) in
thecaseoftrust,thetrust/trustee(s)forthetimebeing,itssuccessorandpermittedassigns.Theexpression“Borrower/s”
shall,asthesubjectorcontextmaypermitorrequire,meananyoreachoftheBorrower/s.
(d) “Borrower’s Dues” means the outstanding principal amount of the Loan and other amounts payable by the Borrower’s to
the Lender as per the Loan Documents and/or any other agreement(s) entered between (a) the Borrower’s and (b) the
Lender, including any interest, Default interest, fees, costs, charges, expenses and other sums whatsoever payable by
theBorrower’stotheLender.
(e) “DueDate(s)”meanssuchdate(s)onwhich(a)anyamountincludingprincipal,interestand/orotherchargesinrespectof
theLoanisdueand/orpayablebytheBorrower’stotheLenderintermsoftheLoanDocumentsand/or(b)performanceof
anyotherobligation(s)isrequiredtobecompliedwithbytheBorrower’sundertheLoanDocuments.
(f) “Equated Monthly Installment” (EMI) means the amount of monthly payment (as ascertained by IHFL), necessary to be
madetoIHFLtoamortisetheLoanwithinterestoverthetenureoftheLoan(asdecidedbyIHFLfromtimetotime)
(g) "Enduse(ofLoan)letter”meanstheletter/ssubmittedbytheBorrower/stoIHFLatthetimeofapplyingfortheLoanand
detailingthePurposeforwhichtheLoanhasbeenapplied.
(h) “Financial Statements” means in relation to the Borrower’s, its/ their audited consolidated financial statements for such
period(s)providedtotheLenderand/orasrequiredbytheLenderfromtimetotime.
(i) “Group Borrower’s Dues” means (i) the Borrower’s Dues payable to the Lender under the Loan Documents and (ii) all
amountspayabletotheLenderand/orothergroup/associateentity/entitiesoftheLenderunder/pursuanttoanyotherloan
agreement(s)/ document(s) executed/ to be executed from time to time between (a) the Lender and/or other
group/associate entity/entities of the Lender and (b) the Borrower’s and/or other group/associate entity/entities of the
Borrower’s provided any security under the Loan Document is and/or shall also be a security under such other loan
agreement(s)/document(s).
(j) “Guarantor” means the person(s) including natural/juristic-legal (if any), who has/ have guaranteed the due performance
oftermsofAgreementandrepaymentofthepresentLoanamountbytheBorrower/s.TheGuarantor(s)has/havestoodas
asuretyandshallsecuretheLoantogetherwithallinterest,additionalinterest,costs,chargesandexpensesandallother
monies whatsoever due and payable or which may hereafter by payable by the Borrower/s to IHFL whether under the
Agreement or otherwise (”Borrower’s dues”) by creating such Security in favour of IHFL, as may be acceptable and
consideredappropriatebyIHFL.
(k) “GuaranteeDeed(s)”meanstheguaranteedeed(s)intheformandsubstancesatisfactorytothelender,executedortobe
executedbytheGuarantor(s)infavourofIHFL,guaranteeingtheobligationsoftheBorrowerincludingtheBorrower’sdues
undertheLoanDocumentsand/oranyotherdocuments.
(l) “Hypothecator(s)”meansthecompany(ies)/person(s)/firm(s)namedhereunderastheHypothecator(s)and/oranyother
person(s) who/which mortgages/hypothecates, from time to time, its/his/her/their asset(s) including the Hypothecated
Asset(s) and his/its present and future interests, right and title therein in favour of the Lender to secure, interalia, the
fulfillment of the Borrower’s’ obligations under the Loan Documents including payment of the Borrower’s Dues to the
Lender.
(m) “HypothecatedAsset(s)” means the Receivables and/or any other asset(s) (including all the present and future interests,
(1)
X 1____________________________
right and title of the Hypothecator(s) therein) hypothecated/charged or to be hypothecated/charged as Security in favour
oftheLenderbytheHypothecator(s)fromtimetotime.
(n) “IHFL LAP Floating Reference Rate (IHFL-LFRR)” shall mean the percentage rate per annum decided by IHFL, for
mortgage Loan and Loan for Property Purchase, from time to time and announced/ notified by IHFL in such form and
mannerasdeemedappropriatebyIHFLfromtimetotimeasIHFL-LFRR.
(o) “MaterialAdverse Effect” means the effect or consequence of any event or circumstance which is or is likely to be: (a)
adverse to the ability of the Borrower/s or any other relevant person to perform or comply with any of their respective
obligations under the Transaction Documents in accordance with their respective terms; or (b) prejudicial to any of the
businesses, operations or financial condition of the Borrower/s or of any other relevant person who is party to any
TransactionDocument.
(p) “Pledgor(s)” means the companies/person(s)/firm(s) who stood as the Pledgor(s) and/or any other person(s)/entity,
who/whichhaveagreed/willagreetocreateapledge/chargeonits/theirassetsinfavourofIHFLtosecure,interalia,the
fulfillmentoftheBorrower(s)obligationsundertheLoanDocumentsincludingpaymentoftheBorrower’sDuestoIHFL.
(q) “Pledged/Charged Shares” means the shares/securities pledged, charged, arranged and/or furnished as Security to
secure the fulfillment of the Borrower(s)’ obligations under the Loan Documents (including payment of the Borrower’s
DuestoIHFL)whichshallincludeallthe(i)shares/securitiesofthePledgor(s)credited/tobecreditedfromtimetotimein
the Pledgor(s)’ Demat Account(s) (“Demat Account(s)”) including the shares/securities (ii) share in the physical form, if
any, (iii)suchadditionalshares/securities,whetherbywayofbonusorrightsissueorotherwiseandanyletterofallotment
inrelationtheretoandinstrumentsorotherpropertyfromtimetotimereceived,receivableinrespectoforinexchangefor
any and all of the Pledged/Charged Shares from time to time acquired by the Borrower(s), Co-Borrower(s) and /or the
Pledgor(s) in any other manner and certificates representing such additional shares; and/or (iv) any shares/securities
transferred/deposited to/in the Demat Account(s) from time to time in any manner whatsoever. Such Pledged/Charged
Sharesmaybewhollyinadematerializedstateorinaphysicalstateorpartlyinoneformandpartlyinanotherform.The
applicable provisions of the Loan Documents shall operate irrespective whether the Pledged/Charged Shares (or any
partthereof)areindematerializedstateorphysicalstate.
(r) “Security Documents” means, as the context may require, mortgage deed(s), other documents relating to mortgage,
pledge/charge agreement, Power ofAttorney, escrow agreement(s), deed of hypothecation, guarantee deed(s), demand
promissory note, letter of continuity, any other document(s)/ declaration(s)/ memorandum(s) /undertaking(s) in relation to
theSecurityand/oranydocument(s)designatedassuchbyIHFLandanyamendmentthereoffromtimetotime.
(s) “Purpose”meansthepurpose(s)forwhichtheLoanhasbeenavailed/agreedtobeavailedbytheBorrower/sfromIHFL
andasismoreparticularlyspecifiedinSanctionLetter/EndUseLetter/Applicationform.
(t) “PEMII” or “Pre Equated Monthly Installment Interest” means, the interest charged by IHFL, at the rate decided by
IHFL, on the Loan from the date/respective dates of disbursement to the date immediately prior to the date of
commencementofEMI.
(u) “Prepayment”meansprematurerepayment(whetherinpartorinfull)asperthetermsandconditionslaiddownbyIHFLin
thatbehalfandinforceatthetimeofprepayment.
(v) “Receivables” means the entire sale proceeds, advance, allotment money, rent, lease rentals, license fees and/or other
receivables received or to be received (on and from the date of thisAgreement) by, interalia, the Borrower’s from all the
concerned persons, including the buyer(s), transferee(s), allottee(s), lessee(s), sub-lessee(s), developer(s), tenant(s)
and/or licensees of the properties and/or any portion or unit thereof and/or any other properties as mutually agreed
between the Lender and the Borrower’s, from time to time, pursuant to any application(s), agreement(s), document(s)
and/or contract(s) for, inter alia, sale, transfer, allotment, assignment, development, lease, sub-lease, renting and/or
license of the properties and/or any portion or unit thereof and/or any other properties as mutually agreed between the
LenderandtheBorrower’s.
(w) “ResetPeriod”meansaMonthduringwhichthe“IHFL-LFRR”ischanged.
(x) “Repayment”meanspaymentofoutstandingamountofIHFLLoani.e.theprincipalamountofLoan,interestthereon,and
allothercharges,premium,feesorotherdueswhicharepayableunderthisAgreementtoIHFLbytheborrower/s.
(y) “SanctionLetter”meanstheletterissuedbyIHFLtherebyinformingtheBorrower/saboutsanctionoftheLoanalongwith
therelevantparticulars,terms&conditionsmentionedinthesame.
(z) “Standing Instructions” and/or ”SI” means the written instructions issued by the Borrower/s to his/her/their bank, where
he/she they maintains his/Her their account, for paying every month an amount equal to the EMl’s, in favour of IHFLfor
repaymentoftheLoanFacility.
(aa) “Transaction Documents” include the Agreement, all writings and other documents executed or entered into or to be
executedorenteredinto,bytheBorrower/sor,asthecasemaybe,anyotherperson,inrelation,orpertaining,totheLoan
andeachsuchTransactionDocumentasdecidedfromtimetotime.
(bb) Theexpress"InterestRateRestRevisionCycle"or“IRRRC”meansthefrequencyatwhichfuture/furtherAlRsareapplied
intermsofArticle2.3ofthisagreement.
1.2 Theterm“borrower”whereverthecontextsorequiresshallmeanandbeconstruedas“borrowers”andthemasculinegender
whereverthecontextsorequiresshallmeanandbeconstruedasthefemininegender.
1.3 Subjecttocontextthereoftheexpression“property”shallmeanandincludeland.
1.4 Theterm“construction”shallmeanandincludeextension,improvement,renovation,reconstructionetc.
1.5 Thetermsandexpressionsinsingularshallmeanandinclude,whereveritwillberequired,thepluralconnotationofthesame.
1.6 Thetermsandexpressionsnowheredefined,shallwheretheinterpretationandmeaninghavebeenassignedtothemin
termsoftheGeneralClausesAct,1897,havethatinterpretationandmeaning.
ARTICLE2:LOAN,INTEREST,ETC.
2.1 AmountofLoan
(a) ThatinconsiderationofthetermsandconditionshereinafterstatedIHFLagreestolendtotheBorrower/sandtheBorrower/s
agreestoborrow,withanobject/purpose,theLoanamountmentionedinSchedule.
(2)
X 2____________________________
(b) ThattheBorrower/sshallhavenoobjectiontotheamountsanctionedandtheamountdisbursedtoirrespectiveofthefactthat
he/she/theyhadappliedforaLoanamounthigher/lowerthanwhathasbeensanctionedtohim/themandfurtherIHFLshallbe
atlibertytodecidetheactualamountoftheLoanandtheamounttobeactuallydisbursed(incertaincasesthesanctioned
amountmaybehigherthantheactualdisbursedamount)andinsuchaneventualitythesanctionedamountwouldbetheLoan
amount.
2.2.Interest
(a) TherateofinterestapplicabletotheLoan,asonthedateofexecutionofthisagreementandapplicablethereonareasstatedin
theSchedule.
(b) UntilandasvariedbyIHFLintermsofthisAgreementtheAIRapplicabletothesaidloanasstatedintheschedule.
(c) Theascertainmentofrateofinterest,besidesothers,arebasedonriskanalysisoftheborrowersandthatofthesecurityoffered
forrepaymentoftheloanamount,asperIHFLrules,policyandsanctionconditions.Incaseofchangeinriskweightageduring
theloanfacility,duetoexternalandinternalfactors,breachofthecovenants,termsandconditionsasstipulatedherein,IHFL
maychangetheapplicablerateofinterest,atitssolediscretion,withprospectiveeffectwithpriorwrittencommunicationand
shallbeacceptabletotheBorrower(s).DecisionofIHFLtothiseffectwillbefinalandbindingontheBorrower(s).
2.3 ComputationofInterest
(a) ForFixedRateofInterest
TheEMIcomprisesofbothprincipalandinterestcalculatedonthebasisofrateofinterestmentionedhereinbelowandis
roundedofftothenextrupee.Theratio/proportionoftheprincipalandinterestconstitutingtheEMIwouldvaryineveryEMI
thoughtheEMImayremainthesameeverymonth.Interestandanyotherchargesshallbecomputedonthebasisofayearof
threehundredandsixtyfivedays.IHFLmayatitsdiscretionstipulatetheperiodicityofcomputationofinterest.Providedthatin
aneventIHFLchangestheinterestratepriortothedisbursementofthefullloantheweightedaverageofthedifferentinterest
ratesshallbeapplicabletotheLoanforthwithfromthedateofsuchincrease/decrease.Providedfurtherthatfromtimetotime
IHFLmayinitssoleandabsolutediscretionaltertherateofinterestsuitablyandprospectivelyonaccountofchangeinthe
internalpoliciesoritsunforeseenorextraordinarychangesinthemoneymarketconditionstakeplaceduring,theperiodofthe
agreement.Thereaftertheapplicablerateofinterestwouldbethesuchvariedrateofinterest.Thattheborroweragreesthat
IHFLshallbethesolejudgetodeterminewhethersuchconditionsexistornotandtheborrowerfurtherundertakesnotto
challengethediscretionsoexercisedbyIHFL.
(b) ForAdjustableRateofInterest
(I) TheEMIcomprisesofprincipalandinterestcalculatedonthebasisofmonthlyrestsattheAIRandisroundedofftothenext
rupeeandanyotherchargesshallbecomputedonthebasisofayearofthreehundredandsixty-fivedays.
PROVIDEDallfuture/furtherAIRsapplicablefortheamountofloanlentbyIHFLtotheborrowershallbeappliedbyIHFLonthe
basisofInterestRateRestRevisionCycle(IRRRC)whichismonthly,withthefirstsuchapplicationtobedoneonthefirstdayof
the month following the month in which the period of IRRRC computed from the date of first disbursement of the loan is
completed.ThesubsequentapplicationshallbemadeaftereveryperiodofIRRRCcommencingfromsuchfirstapplication.
(II) Allfuture/furtherAdjustableInterestRatesapplicablefortheamountofLoanlentbyIHFLtotheBorrower/sshallbeappliedby
IHFLonthefirstdayofthemonthfollowingthemonthinwhichIHFL-LFRRischanged.
(III) InaneventIHFLchangesAdjustableInterestRatepriortothedisbursementofthefullLoan,theweightedaverageofthe
differentAdjustableInterestRateshallbeapplicabletotheloanforthwithfromthedateofsuchincreaseordecreasetillthefirst
dayofthemonthfollowingthemonthinwhichIHFL-LFRRischanged.
(IV) AdjustableInterestRatewillberesetonthefirstdayofthemonthfollowingthemonthinwhichIHFL-LFRRischanged.
(V) IncaseofPEMII,allfuture/furtherAdjustableInterestRateapplicabletotheBorrower/sshallbeappliedbyIHFLonthefirstday
ofthemonthfollowingthemonthinwhichIHFL-LFRRischanged.
(VI) The Adjustable interest Rate applicable to the Loan shall be on the basis of IHFL-LFRR prevailing on the date of final
disbursement.
(VII) TheAdjustableInterestRateprevailingonthedateofthisAgreementoraschangedfromtimetotimeshallbeappliedas
follows:
(i) IntheeventoftheBorrower/shavingalreadycommencedpaymentofEMIbeforethebeginningofthemonthinwhichIHFL
LFRRhasbeenrevisedontheoutstandingprincipalamountoftheLoanasatthebeginningofnextmonth,or
(ii) IntheeventoftheBorrower/snothavingcommencedpaymentofEMIonthetotalamountoftheLoandrawnpriorto
revisionofIHFL-LFRR.
Explanation:Intheevents(i)and(ii)above,anypre-paymentsmadebytheBorrower/sduringthefinancialyearshallbetaken
intoaccount.
(c) ForFixedRateofInterestFirstAndAdjustableRateofInterestThereafter
Forthefixedrateofinterestforinitialperiodofloan(periodmentionedinschedule)theinterestandtheEMIshallbecomputed
asunder2.3A(hereinabove).ForAdjustableInterestrate,forsubsequenttermofloan,theinterestrateshallbeapplicableas
perprevailingIHFL-LFRR,asondateofswitchingandagreedmarginonthesame,onthedateofapplicationofadjustable
interestrateandaccordinglytheinterestandtheEMIwillbecomputedasunder2.3B(hereinabove).
2.4 DetailsofDisbursement
(a) IHFLshallinitssoleandabsolutediscretionmaydisbursetheLoaneitherinonelumpsumorinsuitableinstallmentshaving
regardtotheneedsoftheBorrower/s.TheBorrower/sagreesthatthedecisionofIHFLinthisregardshallbefinal,conclusive
and binding upon the Borrower/s, and the Borrower/s undertakes that he shall not question and/or challenge the
decision/discretionofIHFL.
(b) TheBorrower/salsoagreesandundertakestoissuesuchacknowledgementand/orreceipt(inthemannerandformrequired
byIHFL)ofeachamountsodisbursed
(c) AllthepaymentstobemadebyIHFLtotheborrowerunderorintermsofthisagreementshallbemadebythechequeduly
crossedandmarkedaccountpayeeonlyandthecollectioncharges,ifany,inrespectofallsuchchequeswillhavetobeborn
bytheborrowerandinterestonIHFLloanwillbegintoaccrueinfavourofIHFLasonthedateofdeliveryordispatchofthe
cheque,irrespectiveofthetimetakenfortransit/collection/realizationbytheborrowerandhisbank.
(3)
X 3____________________________
(d) Thatwhereintheborrower(s)availsloanininstallmentsandonlyinterestispayabletillthecompletedisbursalofloan,IHFL,
shallbeatlibertytostartEMIonthedisbursedamountanytime,after12monthsfromdateofcommencementoffirstPEMIIor
fromsuchperiodasdeterminedbyIHFL,atitssolediscretionandtheBorrower(s)shallhavenoobjectiontothesame.
(e) ThedecisionofIHFLinthisregardastodisbursaloftheLoanshallbefinal,conclusiveandbindingontheBorrower/s.
(f) ThatincasethepurposeoftheLoanis:-
(I) Acquisition/purchaseofaPropertythen:-TheBorrower/sclearlyunderstandsandagreesthatIHFLwoulddisbursethe
Loan(whetherinpartorinfull)fortheacquisitionofthePropertyonlyaftertheBorrower'sowncontributionhasbeen
made for the same to the builder/developer/ seller and the proof of the same (to the satisfaction of IHFL) has been
furnishedto IHFLbytheBorrower/s.Further,IHFLshallalsobeentitledtoverifytheauthenticityofsuchproofbefore
disbursingtheLoan.
(II) Construction/Repair/Improvementetcthen:-TheBorrower/sclearlyunderstandsandagreesthatthedisbursaltowards
construction/improvementofPropertyshallbemadeonlyaftertheconstruction/improvementworkhascommencedon
theProperty,andtheproofthereof(tothesatisfactionofIHFL)hasbeenfurnishedtoIHFLbytheBorrower/s.Further,
IHFLshallalsobeentitledtoverifytheauthenticityofsuchproofbeforedisbursingtheLoan.Thedisbursalshallbein
stagesaspertheprogressofworkasprescribedintermsoftheinternalguidelinesofIHFL,asapplicablefromtimeto
time.
(III) ThatincasethepurposeoftheLoanisbothAcquisition/PurchaseandConstruction/Repair/Improvementetc.theneach
partoftheLoanwouldbesubjecttotherelevanttermsandconditionscontainedinclause2.4(f)(i)&2.4(f)(ii)above.
TherebythepartoftheLoanwhichhasbeengrantedforthepurposeofAcquisition/PurchasePropertywouldbesubject
to the provisions of Clause 2.4 (f) (i), hereinabove, and the other part which has been granted for the purpose of
Construction/Repair/Improvementetc.ofpropertywouldbesubjecttotheprovisionsofClause 2.4(f)(ii),hereinabove.
(g) Theloanfacilitymaybereappraisedonlegal,technicalandfinancialtermsduringthecontinuityofloanfacility.Uponsuch
reappraisal IHFL may hold, suspend, down size, cancel and/or recall disbursement of the loan facility, at its own sole
discretion.
2.5 ConditionsforDisbursement
(a) TheobligationofIHFLtomakeanydisbursementshallalsobesubjectto:
(I) NoeventofdefaultasdefinedinthisAgreementshallhavehappened.
(II) TheBorrower/shasfurnishedevidence,tothecompletesatisfactionofIHFL(oftheproposedutilisationoftheproceedsofthe
disbursementoftheLoan)thatatthetimeofrequestfordisbursement,thedisbursalamountsoughtisrequiredimmediatelyby
theBorrowerforthepurposeoftheLoan.
(III) NoextraordinaryorothercircumstancesshallhaveoccurredwhichinthesoleopinionofIHFLmaymakeitimprobableforthe
Borrower/ s and/or Guarantor to fulfill any of his/her/their obligations and/or the Terms and Conditions of the present
agreement.
(IV) TheBorrower/sshallhavefurnishedevidencetothefullsatisfactionofIHFLthatallconsents,approvalsandpermissions
requiredforavailingoftheLoanand/orcreationofsecurityhavebeenobtainedorevidencetotheeffectthatthesearenot
required.
(V) TheBorrower/sshallhavefurnishedtothefullsatisfactionofIHFL,documentaryevidenceoftitleandownershipoverthe
PropertyinfavouroftheBorrower/soranyoneoftheBorrowers/sasthecasemaybeandthatthesedocumentsarealsovalid,
binding and subsisting and that necessary security can be created in favour of IHFL in the form and manner as
suggested/requiredbyIHFL.
(VI) TheBorrower/sshallobtainacomprehensiveandcompositeInsurancepolicyinrespectofthePropertyand/oranyother
insurancepolicythatmayberequiredbyIHFLinexerciseofitssoleandabsolutediscretionathis/her/theirowncostand
expense.ThattheinsurancevalueoverthePropertyshouldbeofavaluehigherorequivalenttotheLoanamountorthevalue
ofthestructureofthePropertywhicheverishigher.TheBorrower/sshallgetthelienofIHFLaslosspayee,notedonthe
insurancepolicyconfirmingthatIHFLhasafirstclaimontheproceedsofthepolicyamount/proceedsofthepolicyandthe
Borrower/sshallfurnishsuchInsurancecoverand/orInsurancePolicytoIHFL.TheBorrower/sshallkeeptheinsurancepolicy
aliveduringthecurrencyoftheLoan.
(VII) ThattheBorrower/sshallexecuteand/ordeliversuchdocuments,securitydocuments,agreements,guarantees,indemnities,
DemandPromissoryNotes,Declarationsetc.asIHFLmayinitssoleandabsolutediscretionmayrequire.
(b) ThatintheeventthesecurityfurnishedbytheBorrower/sisfoundtobeinsufficient/incorrectinvalue,theBorrower/sshallbe
directedtofurnishadditionalsecurityasmayberequiredbyIHFLandtheBorrower/sshallbeboundtocomplywithsuch
demand within the time period required by IHFL. Notwithstanding the above, in the event the security furnished by the
Borrower/s and/or Guarantor is subsequently found to be of inferior value to that as declared by the Borrower/s in Loan
application, theLoanmayberecalled/repaymentoftheLoanbeacceleratedbyIHFLwithimmediateeffect.
(c) FailedToWithdrawand/orUsetheLoanAmount:IftheBorrower/sfailstowithdrawand/usetheentireLoanorpartoftheLoan,
forpurposespecifiedintheLoanAgreement,withintheperiodofonemonthfromthedateofdisbursementoftheLoan,then
IHFL,onitssolediscretion:-a)MayalterorrescheduletheEMIsinsuchamannerandtosuchextentasIHFLmaydeemfitand
proper.ThereupontherepaymentwillbemadeasperthesaidalterationandrescheduledEMIsnotwithstandinganything
statedinthisagreement;orb)MaybynoticetotheBorrower/ssuspendorcancelfurtherdisbursementsoftheLoan
(d) TheBorrowershallfurnishevidenceoftheconstructionofhouse/residentialunitontheplotpurchasedtothefullsatisfactionof
IHFLwithintheperiodofthreeyearsfromthedateofavailingloanfacility.Intheeventoffailuretocompletetheconstructionof
house/residentialunit,withinthestipulatedperiodofthreeyears,thesaidloanwillbeclassifiedasNonHomeLoanandthe
rateofinterestshallberesetsubsequenttosuchclassification.
(e) TheborrowershallcomplywithalltermsandconditionsofthesanctionletterofLeaseRentalDiscountingunderescrow
arrangements during the entire tenure of loan and in the event of breach/ default committed with respect to the terms of
sanctionletterofLeaserentaldiscountingunderescrowarrangements,therateofinterestshallberesetsubsequenttosuch
breach/default.
(f) That IHFLreserves its right to recall the loan facility after five year from date of this agreement. The loan facility will be
reappraisedandnecessaryinformationanddocumentsmaybeaskedforfurtherreviewofthefacility.Furthercontinuationof
(4)
X 4____________________________
theloanfacilityshallbebasedonappraisalreport,tothesatisfactionofIHFLandwithadditionaltermsandconditions,asIHFL
deemsfitandproper.ThedecisionofIHFLtowardscontinuationoftheloanfacilityshallbefinalandbindingontheborrowers.
2.6 Amortization
(a) Subjecttoarticle2.2&2.3theborrowerwillamortizetheloanasstipulatedintheschedule.
(b) Inadditionto(a)abovetheborrowershallpaytoIHFLPEMIIeverymonth,ifapplicable.
(c) Intheeventofdelayinadvancementofdisbursementforanyreasonwhatsoever,thedateofcommencementofEMIshallbe
thefirstdayofthemonthfollowingthemonthofwhichthedisbursementoftheloanwillhavebeencompletedandconsequently
theduedateofpaymentofthefirstEMIinsuchcasewillbethefirstdayofthemonthfollowingsuchmonth.
(d) NotwithstandingwhatisstatedinArticle2.6(a)aboveandintheSchedule,IHFLshallhavetherightatanytimeorfromtimeto
timetoreviewandrescheduletherepaymenttermsoftheloanoroftheoutstandingamountthereofinsuchmannerandto
suchextentasIHFLmayinitssolediscretiondecide.Insuchevent/stheborrowershallrepaytheloanoroutstandingamount
thereofaspertherevisedscheduleasmaybedeterminedbyIHFLinitssolediscretionandcommunicatedtotheborrowerby
IHFLinwriting.
(e) saveandexceptasprovidedundersubclause(f)below,foradministrativeconveniencetheEMlamountisintendedtobekept
constantirrespectiveofvariationsintheAIRandasresultofthisthenumberofEMIsisliabletovary.Nointimationshallbe
givenbyIHFLastothenumberofEMIsrequiredtobepaidbytheborroweruponeachAIRapplication.Providedhowever,the
informationastotheapplicable/appliedAIRduringthefinancialyearofIHFLandthenumberofEMIspayablefromlastAIR
applicationduringsuchyearshallbeintimatedbyIHFLtotheborrowerannually.TheborrowershallpayEMIsuntiltheloan
togetherwithinterestisrepaidinfull.
(f) NotwithstandinganythingtothecontrarycontainedinthisagreementhavingregardtotheAIRforthetimebeing,IHFLshallbe
entitledtoincreasetheEMIamountsuitablyif
(i) ThesaidEMIwouldleadtonegativeamortization(i.e.EMlnotbeingadequatetocoverinterestinfull)and/or
(ii) TheprincipalcomponentcontainedintheEMlsisinadequatetoamortisetheloanwithinsuchperiodasdeterminedby
IHFL.The borrower shall be required to pay such increased EMI amount and the number of installments thereof as
decidedbyIHFL andintimatedtotheborrowerbyIHFL
(g) IHFLmayvaryitsIHFLfloatingreferenceratefromtimetotimeinsuchmannerincludingastotheloanamountsasIHFLmay
deemfitinitsowndiscretion.
(h) TheborrowershallofhisownaccordsendtoIHFLastatementofhisincomeeveryyearfromthedatehereof.However,IHFL
shall have the right to require the borrower to furnish such information / documents concerning his employment, trade,
businessorprofessionatanytimeandtheborrowershallfurnishsuchinformation/documentsimmediately.
(i) Theborrower,incaseofpartlydisbursedloanaccounts,maychoosetopayPEMIIonlyorEMIondisbursedloanamountor
EMIonsanctionedloanamount.NotwithstandingwhatisstatedhereinaboveaboveandintheSchedule,inpartlydisbursed
loanaccounts,IHFLshallhavetherightatanytimeorfromtimetotimetoreviewandreschedulethedateofcommencementof
EMIontheoutstandingamountthereofinsuchmannerandtosuchextentasIHFLmayinitssolediscretiondecide.Insuch
event/stheborrowershallcommencepaymentofEMIontheoutstandingamountthereofaspertherevisedscheduleasmay
bedeterminedbyIHFLinitssolediscretionandcommunicatedtotheborrowerbyIHFLinwriting.
2.7 TerminalDatesforDisbursement
NotwithstandinganythingtothecontraryIHFLmaybynoticetotheBorrower/ssuspendorcancelfurtherdisbursementsofthe
LoaniftheLoanshallnothavebeenfullydrawnwithinsuchperiodasIHFLmayspecifyfromthedateofthesanctionletter.
2.8 Repayment andOtherCharges
(a) TheBorrower/sshallrepaytheLoantoIHFLinsuchnumberofinstallments,andwithsuchinstallment/sbeingofsuchamounts
andontheduedate(s)asisspecifiedintheAgreement,timebeingoftheessenceofthecontract),suchinstallmentsare
hereinafterreferredto,individually,asan“installment”and,collectively,asthe“installments”.Theexpression“installments”
shallcompriseofboththeprincipalamountoftheLoanandinterestthereonwheretheprincipalamountoftheLoanisagreedto
bepaidinEMI.IftheLoanispayableinEMI,suchEMIshallbecalculatedonthebasisofmonthlyrestsandIHFLshallbe
entitledtovary/modifytheEMI(includingincreasesintheamountofoneormoreinstallment/s)intheeventofchangestothe
interestrateontheLoan.
(I) AttherequestoftheBorrower/sandifagreeduponbyIHFL,theBorrower/sshallpaytoIHFLEMIeverymonthfromthe
dateofcommencementofEMIasspecifiedintheAgreementandalsoPEMIItillthepaymentofthefirstEMI.TheEMI
payablebytheBorrower/swouldbeonthefullamountoftheLoanirrespectiveoffulldisbursementoftheLoanhavingnot
beenmade,changesfromtimetotimewouldbemadetothetermoftherepaymentoftheLoancorrespondingtothe
amountsoftheLoandisbursed.AsandwhendisbursementsaremadeundertheLoan,thetermofrepaymentoftheLoan
willbeincreasedtoamortisethepriordisbursement(s)andthedisbursement,whichisbeingmade.IHFLreservesthe
righttorevisethetermsoftheLoanatitssolediscretion.
(II) AttherequestoftheBorrower/sandifagreeduponbyIHFL,theBorrower/sshallpayto“IHFL-EMI”ontheamounts
disbursedundertheLoanbasedonthefulltenoroftheLoan.OneachsubsequentdisbursementtheEMIoftheLoanshall
beincreasedtoamortisetheLoanoverthebalancetermoftheLoan.
(b) TheBorrower/smayrepay/paytheinstallmentsandothermoniesinrespectoftheLoanthroughanyoneofthefollowing
modespost-datedcheques(“PDCmethod”)/theElectronicClearingSystem(DebitClearing)asnotifiedbythe(“RBIECS
method”)/by deduction from the Borrower/s' salary (“Salary Debit method”)/by directly paying amounts when due to IHFL
(“DirectPaymentmethod”)/byanyothermethod,andashasbeenselectedbytheBorrower/sorasmayberequiredbyIHFL.
(c) IftheBorrower/sdefault/sinmakingpaymentofanyinstallment/soranyotheramountscomprisingtheBorrower/s'Duesto
IHFLontherespectiveDueDate(s),theBorrower/sshallbeliabletopaydefault/furtherinterestattheratespecifiedinthe
Agreement(plusapplicableinteresttaxorotherstatutorylevy)onallsuchoutstanding/unpaidamountsfromtherelevantDue
Datetillthedateofpaymentofsuchentireamount.Suchdefault/furtherinterestshallbeinadditiontoanyotherchargeswhich
theBorrower/sisliabletopaytoIHFLintermsoftheTransactionDocuments.Suchdefault/furtherinterestshallbecomputed
from respective Due Dates for repayment/payment and become payable upon the footing of default interest rates as
mentionedintheScheduletotheAgreementwithmonthlyrestsorsuchotherrestsasmaybeprescribedbyIHFLfromtimeto
(5)
X 5____________________________
time.Therateofinterestasspecifiedaboveisreasonableandrepresentsgenuinepre-estimateofthelossexpectedtobe
incurredbyIHFLintheeventofnonpaymentofanymoniesbytheBorrower/s.
2.9 Pre-paymentoftheLoan
(a) IHFLmayinitssoleandabsolutediscretionandsubjecttosuchtermsandconditionsasIHFL,mayprescribeandalsoupon
thepaymentofprepaymentchargewhichhasbeenmutuallydecidedandarespecifiedintheapplicableScheduleonthe
amountsoprepaid,permitpre-payment/accelerationinpaymentofEMIsattherequestoftheBorrower/ssubjecttothatno
prepaymentshallbemadewithinthenumberofmonths(asmentionedintheSchedule)ofthecommencementoftheEMIs.
TheBorrower/sfurtheragreesthatIHFLmayspecify,fromtimetotime,theminimumamountofprepayment/amountspayable
onaccountofaccelerationofEMIs.
(b) ThatincaseitisHomeLoanfacility,then,theprepaymentoftheloanshallbemadeandaccepted,asperpolicyandrulesof
IHFL,andinaccordancewithstatutoryguidelines.issuedfromtimetotime.Incasethereisnopolicy,rulesandguidelines,
prepaymentfeesparticularlymentionedinthescheduletothisloanagreement.Toavailanybenefitunderthissubclause2.9
(b),theborrowersneedtodeclarethepurposeofloanfacilityatthetimeofsanctionofloanfacilityandshalldepositnecessary
documentsandproofofpurposeandutilizationofloanfacility,tothesatisfactionofIHFL.
(c) ThatincaseitisotherthanHomeLoanfacility,thentheBorrowershallbeentitedtoprepaytheloaneitherpartlyorfully,asper
the rules of IHFL, including/ along with prepayment charges, for the time being enforceable in that behalf. However, any
prepaymentupto25%ofprincipaloutstandingloanamountonthedateofprepaymentwillnotattractanyprepaymentcharges
innexttwelvemonthfromdateofsuchpayment.Incase,theprepaymentamountexceeds25%ofprincipaloutstandingwithin
twelvemonthfromdateofsuchprepaymentthenallprepaymentamountwillattractprepaymentchargesasstipulatedinthe
scheduleasperIHFLpolicy.
(d) Ifduetoanylaworanyotherreason(s),IHFLshallbeentitledtorequiretheborrowertorepay/paytheBorrower’sDues(orany
partthereof)immediatelyorinshorterperiodandinonelumpsumorsuchsuitableinstallment/sasmaybespecifiedbyIHFL
notwithstandingtheTenureoftheLoan.Theborrowerundertaketopay/repaytheBorrower’sDues(oranypartthereof)onthe
date(s)asmaybespecifiedinthenoticeissuedbyIHFLtotheborrowerunderthisclause.Notwithstandinganythingtothe
contrary,IHFLmay,atitssoleandabsolutediscretion,cancelthedisbursementoftheLoaninpartorfullatanystageunderthis
Agreement due to any reason whatsoever. Subject to any applicable laws, the borrower shall forthwith pay to IHFL the
prepayment/foreclosurecharge/premium,ifany,incaseanyprepayment/foreclosureoftheLoan(oranypartthereof)is
madebytheBorrower(s).Suchprepaymentand/orforeclosureoftheLoan(oranypartthereof)shallbemadeinaccordance
withtheprovisionsofthisAgreement.TheborroweragreetogiveapriorwrittennoticeofsuchdaysastoIHFL,asperIHFL
policyincasetheBorrower(s)wantstomakeanyprepayment/foreclosureoftheLoan(oranypartthereof).IncaseofLoan
recall(inpartorinfull)byIHFLaspertheprovisionsofthisAgreement,noprepayment/foreclosurecharges/penaltyshallbe
payablebytheborrowerontheamountpayablebytheborrowerpursuanttotheLoanrecall(inpartorinfull)byIHFL.Subject
toanyapplicablelaws,noprepaymentand/orforeclosureoftheLoan(oranypartthereof)shallbemadebytheBorrower(s)
withintheperiod,ifany,asperIHFLpolicy.TheborrowerfurtheragreethatIHFLmayspecifyfromtimetotimetheminimum
amountofprepaymentand/orforeclosuretobemadebytheborrower.
2.10 DelayinPaymentofEMIetc.
(a) Nonotice,reminderorintimationwillbegiventotheborrowerregardinghisobligationtopaytheEMIorPEMlIregularlyondue
date.ItshallbeentirelyhisresponsibilitytoensurepromptandregularpaymentofEMIandPEMII.
(b) ThedelayinpaymentofEMIandPEMIIshallrendertheborrowerliabletopayadditionalrateofinterestattherateof24%p.a.
oratsuchhigherrateaspertherulesofIHFLinthatbehalfasinforcefromtimetotime.Insuchevent,theborrowershallalso
beliabletopayincidentalchargesandcoststoIHFL.
2.11 LiabilityofTheBorrower/stobeJointAnd Several
WheretheLoanisprovidedtomorethanoneBorrower/s,notwithstandinganythinghereinstated,theliabilityoftheBorrower/s
torepayLoantogetherwithinterest,andallotheramountspayableunderthepresentagreementandtoobservethetermsand
conditionsofthepresentagreementandalsothetermsandconditionsofanyotherAgreement(s),document(s)thatmaybe
executedbetweentheBorrower/swithIHFLinrespectoftheLoanoranyotherLoanorLoans,isjointandseveral.
2.12 CrossLiability
Notwithstandinganythingtothecontrarycontainedinanyagreement(s),theBorrower(s) expresslyaccept(s)andagree(s)
thatifabreach/default/aneventofdefaultoccursunderanyagreement(s)(includingtheLoanDocuments)between(a)the
Borrower(s) and/or any group entity/entities/associate company of the Borrower(s) and (b) IHFL and/or any of the
INDIABULLSCompanies,thensuchabreach/default/eventofdefaultundersuchagreement(s)shallalsobeanEventof
DefaultundertheLoanDocumentsandviceversaandtheninsucheventIHFLand/oranyoftheINDIABULLSCompanies
shall,withoutprejudicetoanyofits/theirspecificrightsundereachoftheagreements,beabsolutelyentitledtoexerciseallor
any of its/their rights (including Loan recall) under any of such agreements (including the Loan Documents) at the sole
discretionofIHFLand/ortheINDIABULLSCompanies.Theterm`INDIABULLSCompanies’shallmeanandincludeIHFL,the
promoter(s)ofIHFLand/oranyotherassociate/groupcompanies/entitiesofIHFL,presentorfuture
ARTICLE3:COVENANTSFORSECURITY
3.1 SecurityforLoan
(a) TheBorrowercovenantsthattheprincipalsumofloan,interest,commitmentandotherchargesandanyotherduesunderthis
agreementshallbesecuredbysuchsecurityasIHFLshalldetermineinitsowndiscretionwithIHFL,havingtherighttodecide
theplace,timingandtypeofthesecurityincludingthemannerofitscreationand/oradditionalsecurityitmayrequireandthe
borrowershallcreatethesecurityaccordinglyandfurnishanysuchadditionalsecurityasmaybedecidedbyIHFL.
(b) WheretheLoanhasbeenavailedforrepaymentofanexistingLoan/facilityagainstanySecurity,thentheBorrower/sshall
within7daysfromdisbursementoftheLoangettheprevioussecurityremovedfromtherecordsoftheappropriateregistering
authorityandhavethesecurity,ifany,infavour•ofIHFL/itstrusteesoragentsregisteredwithsuchregisteringauthority.
(c) TheBorrower/sshallnotenterintoanyagreement/arrangementwhatsoeverwithanyperson,bodyorauthorityfortheuse,
transferordisposaloftheSecurity(ies)inanymannerwhatsoeverwithoutconsentofIHFL.TheBorrower/swillnotpartwith
thepossession,giveonhire,lease,leavelicenseorconductanyarrangementorotherwisedealwiththeSecurity(ies)orany
partthereofwithout,priorconsentofIHFL.
(6)
X 6____________________________
(d) To secure, to the satisfaction of IHFL, the fulfillment of all the obligations of the Borrower(s) under the Loan Documents
includingpaymentoftheBorrower’sDuesandotheramountsbytheBorrower(s)toIHFLundertheLoanDocuments,the
borrowerherebyundertake(s)toforthwithcreate,and/orshallcausetheBorrower(s)toforthwithcreate,(a)suchSecurityin
favourofIHFLasmentionedintheLoanDocuments(includingthosementionedhereunder)and(b)suchotheradditional
Securityofadequatevalue(tothesatisfactionofIHFL),ifIHFLsorequestsfromtimetotimeforanyreason(s)whatsoever
includingduetoinadequatevalue(intheopinionofIHFL)ofanySecurityand/orIHFL’srightonanySecuritygettingadversely
affectedinanymannerpursuantto,interalia,injunction/stayorder/freeze/attachmentofanySecurityoranypartthereof.The
borrower shall, and/or shall cause the Borrower(s) to, (a) forthwith execute and register, if required, appropriate Security
Documentsandotheragreements/deedsrelatingthereto(inaformatacceptabletoIHFL)and(b)take/obtainawrittenno
objectioncertificate(“NOC”)fromIHFLpriorto, interalia, anyapplication(s),agreement(s),document(s)and/orcontract(s)
for/of,interalia,sale,conveyance,transfer,lease,sub-lease,rent,leaveandlicense,negativelien,assignment,lien,charge,
allotmentand/orencumbrance(inanymanner)oftheSecurity(and/oranyportion/unitthereof).Unlessotherwisementioned
intheLoanDocuments,theborrowerfurtherundertakethatitshall,andshallcausetheBorrower(s)to,forthwithexecutethe
SecurityDocumentsandcreatethefirst-rankingandexclusivemortgage/charge/pledge/hypothecation(inamode/manner
acceptabletoIHFL)overtheSecurityinfavourofIHFLbeforeoratthetimeofenteringintothisAgreement.Anyfailure/delayin
executionoftheSecurityDocumentsandcreationoftheSecurityasaforesaidshallbeanEventofDefaultundertheLoan
Documents. The borrower shall, and/or shall cause the Borrower(s) to, execute/to issue a Power of Attorney
authorizing/empoweringIHFLto,interalia,allot,sell,transfer,lease,sub-lease,assign,mortgage,encumber,constructand/or
developtheSecurity(and/oranypart/unitthereof).
3.2 Hypothecation
TheBorrowershallcausetheHypothecator(s)andtheHypothecator(s)shallagree,tothesatisfactionofIHFL,tohypothecate,
encumber,charge,pledgeand/orassign(bywayofSecurity)theHypothecatedAsset(s)exclusivelyinfavourofIHFL.The
BorrowershallcausetheHypothecator(s)topromptlysubmitwithIHFL(ifsorequestedbyIHFL)alltheoriginaldocumentsof
theHypothecatedAsset(s)dulyendorsingthelien/hypothecationinfavourofIHFL.TheBorrower(s)shallforthwithdepositor
shall cause to be deposited the Receivables directly in an escrow account(s) (and to no other account) as may be
stipulated/agreedbyIHFLandshallforthwithexecuteescrowagreement(s)inaformsatisfactorytoIHFLwithrespectto
depositof theReceivablesintotheescrowaccount(s)andtransferofamountsintoIHFL’sspecifiedbankaccount(s)onthe
DueDate(s).TheReceivablesshallbeutilized/transferredinamannerasapproved/instructedbyIHFLinwritingfromtimeto
time.Itisherebyclarifiedthatincaseofshortfallintheescrowaccount(s),paymentdefault(s)bytheBorrower(s)and/or
occurrenceofanEventofDefault,theBorrower(s)is/shallbeunderanobligationtopayfromanysourcesoastopaythe
amount(s)payableinaccordancewiththeLoanDocumentstoIHFL.TheBorrower(s)undertaketoforthwithissueirrevocable
instructions(inaformatacceptabletoIHFL)toalltheconcernedpersonsfordepositoftheReceivablesonlyintheescrow
account(s)andobtainconfirmationsinthisregard(andforthwithprovideacopythereoftoIHFL)fromallsuchperson(s).The
Borrower(s)shallnotgiveanyinstruction(s)totheescrowagent(s)andtheescrowagent(s)shallnotinanycircumstanceact
onanyinstruction(s)oftheBorrower(s).Theborrowerundertaketo,andtheborrowershallcausetheotherBorrower(s)to,
irrevocablyappointIHFLasitsattorneybyexecutionofaPowerofAttorneyforcollectionofReceivables(intheformand
substancesatisfactorytoIHFL)infavourofIHFLfor,interalia,collectionoftheReceivablesfromalltheconcernedpersons.
Theborrowerfurther,agreethatsuchpower(s)wouldbepower(s)coupledwithinterestandthereforeirrevocable.
3.3 Guarantee
TheBorrowershallcausetheGuarantor(s)toforthwithexecuteguaranteedeed(s)(intheformandsubstancesatisfactoryto
IHFL) in favour of IHFL guaranteeing the fulfillment of all the obligations of the Borrower(s) under the Loan Documents
includingpaymentoftheBorrower’sDuestoIHFL.
3.4 Pledge/ChargeofShares
i) AtalltimesduringthevalidityoftheLoanDocuments,theborrowershallcausetobeforthwithcreated afirst-rankingand
exclusivepledge/chargeinfavourofIHFLonagreedpercentage ofthe(presentandfuture)shares,instrument(s)convertible
intosharesand/orinstrument(s)withvotingrightsissued/tobeissuedbythecompany/companiesandinthisregard,the
borrowershallcausethe(presentandfuture)holdersofthesharesand/orthesaidinstrumentsofsuchcompany/companiesto
forthwith execute a pledge/charge agreement, other documents and a Power of Attorney in the form and substance
satisfactorytoIHFL.Further,withoutprejudicetotheaforesaid,theborrowershallcausethePledgor(s)toforthwithcreatea
first-ranking and exclusive pledge/charge on the Pledged/Charged Shares in favour of IHFL and/or any of its
agent/nominees/trustees,includingallshares/securitieslyingin,and/orshares/securitieswhichhasbeencredited/shallbe
creditedfromtimetotimeinthePledgor(s)’DematAccount(s)andinregardofwhichtheborrowershallcausethePledgor(s)to
executeapledge/chargeagreement,otherdocumentsandaPowerofAttorneyintheformandsubstancesatisfactorytoIHFL.
TheDematAccount(s)shallbeopenedbythePledgor(s)withadepositoryparticipant(s)asapprovedbyIHFL.
ii) The Pledgor(s) is/are/shall be pledging the Pledged/Charged Shares in consideration that IHFLhas agreed to lend and
advancetheLoantotheborrowerwiththeunderstandingthatonorafteroccurrenceofanEventofDefaultundertheLoan
DocumentsthePledged/ChargedSharesoranypartthereofmaybesold,disposedoff,transferred,encumberedand/ordealt
with,inanymannerwhatsoeverandonsuchtermsandconditions(includingthesaleprice)atthesolediscretionofIHFL.
iii) TheBorrowerconfirmsandundertakesthatthePledged/ChargedShares,andwhicharetobe/arepledged/chargedinfavour
ofIHFL,aretheabsolutepropertyofthePledgor(s)andthatthesameareandshallbefreefromallencumbrancesandclaims
(exceptforanypledge/charge/claimofIHFL)atalltimestillalltheobligationsoftheBorrower(s)undertheLoanDocuments
have been complied with to the satisfaction of IHFL including payment/repayment of Borrower’s Dues to IHFL by the
Borrower(s)andallrequisiteconsents,regulatoryorotherwise,andproceduralformalitiesforpledgingthePledged/Charged
Sharesareobtainedandcompliedwith.
iv) The borrowers agree and shall cause the Pledgor(s) to agree to obtain all consents and permissions to execute such
documents, deeds and writings as may be required by IHFLto create the Security for payment and/or repayment of the
Borrower’sDuesundertheLoanDocuments.TheborrowershallensurethatthePledgor(s)meettherequirementsofLoan
DocumentstotheextentapplicabletothePledgor(s).
UnlessotherwiseagreedbyIHFL,thePledged/ChargedSharesshallnotbepermittedtobede-pledged/releasedofpledge/
chargeunlesstheentireBorrower’sDueshavebeenrepaidtoIHFL
(7)
X 7____________________________
3.5 TheBorrowersshallComplywiththeFollowing
(a) DemandPromissoryNoteandLetterofContinuity:
AtthetimeofexecutionofthisAgreement,ademandpromissorynoteshallbeexecutedbytheborrowerinfavourofIHFLfor
theLoanandinterestthereonalongwithaletterofcontinuityforthesameamount,dulysignedanddeliveredtoIHFLas
Securityforpayment/repaymentoftheBorrower’sDuesbytheborrower.Theborrowershallalsoforthwithexecuteanddeliver
toIHFLfromtimetotime(asmayberequestedbyIHFL)suchdocuments(inaformatacceptabletoIHFL)toensurethatthe
demandpromissorynoteremainsvalidandsubsisting
(b) Toexecuteanysuchagreement/sdocument/sundertaking/s,declaration/s,thatmayberequirednoworhereafteratanytime
duringthependencyofthisloan/oranyotherloanorloansgrantedbyIHFLhereafter.
3.6 ExpensesofPreservationandCollection:
(a) TheBorrower/sshallpaytoIHFLallcostsincurredbyIHFLafteraneventofdefaulthasoccurredinconnectionwith:
(b) ThepreservationoftheBorrower'sassetsincludingthepropertyand
(c) ThecollectionofamountsdueundertheLoanshallbechargedtotheBorrower/sandreimbursedbytheBorrower/sasIHFL
shallspecify
3.7 ContinuingSecurity:
Allsecurity/s(thatmaybecreatedorcausetobecreated)andGuaranteesfurnishedbytheBorrower/stoIHFLinconnection
withtheLoanshallbedeemedtobecontinuingsecurity(s)andshallnotbedischargedtillsuchtimethatalltheduesinrespect
oftheLoan/anyotherLoantakenbytheBorrower/sfromIHFL,arefullypaidtothecompletesatisfactionofIHFLandthe
securitiesareexpresslyreleasedbyIHFLinwriting.
ARTICLE4:BORROWER'SCOVENANTS
4.1 AffirmativeCovenants:-
TheBorrower/sherebyexpresslycovenantsasfollows:
(a) ThattheBorrower/sshallutilisetheentireamountoftheLoanforthepurposestated/mentionedinthesanctionletterand/or
enduseletterandfornootherpurposewhatsoever.
(b) ThattheBorrower/sfurtherassuresIHFLthatthepurposeoftheLoanisnotspeculative,illegalnefariousorimmoralanddoes
not/shallnotconstituteanoffenceofMoneyLaunderingunderThePreventionofMoneyLaunderingAct,2002.
(c) Thattheconstruction/structureoverthePropertyisinaccordancewiththesanctionedplanandintheeventualitythatany
subsequentconstructioniscarriedoutonthePropertythenthesameshallalsobeinaccordancewiththesanctionedplanand
noillegalconstructionshallberaisedontheProperty.
(d) Thattheborrowerfurthercovenantsthatitshallbehisresponsibilitytocompletetheconstructionofthehouse/residentialunit
ontheplotpurchasedwithinaperiodofthreeyearsfromthedateofavailingloanfacilityforpurchaseofthesaidplot/property.
(e) ThattheBorrower/swillathisowncostandexpense,tillallsuchtimesthattheentireoftheLoanhasbeenrepaidinfulltothe
entireandsolesatisfactionofIHFL,maintainthePropertyingoodorderandconditionandallthenecessaryrepairs,additions
and/orimprovementstheretoshallbepromptlycarriedoutbytheBorrower/sathisowncostandexpenseandfurtherthe
Borrower/swillensurethatduringsuchperiodthevalueofthePropertydoesnotdiminish.
(f) IHFL will be notified of any change in the Borrower's residence contact numbers, employment, business or profession well in
advancethatincaseanadvancenoticeisnotpossiblethentheBorrower/swouldinformIHFLinwritingwithin7daysofsuch change.
(g) The Borrower/s shall pay all municipal taxes, ground rent, statutory dues and such other municipal and local charges in
accordance with the Municipal byelaws and regulations. The Borrower/s shall further comply with all rules, regulations,
stipulationsofthemunicipalcorporationsandallconcernedstatutoryauthorities.
(h) TheBorrower/sshallatallsuchtimestilltheentireLoangrantedbyIHFLhasbeenrepaidinfulltothecompletesatisfactionof
IHFL,keepthePropertyinsuredagainstfire,earthquake,flood,storm,tempestortyphoonandotherhazardsathis/her/their
own cost and expenses and also all other hazards/eventualities that IHFL may require, with IHFL being made the sole
beneficiaryunderthepolicy,foravalueasrequiredbyIHFLandproduceevidencethereoftoIHFLbeforetenthdayofJanuary
ofeveryyearandwherevercalledupontodoso.TheBorrower/swouldalsosendacopyoftheInsurancecoverandthepolicy
within15daysofeachrenewal/freshpolicy.
(i) TheBorrower/sshallatalltimeskeepawareaboutthebuildingstructuresafetynormsandshalltakeallpossiblecareand
cautiontomaintainthebuildingstructuretobesafeandintactevenincaseofnaturaldisastersandcalamities.Incasethe
Borrower/splanstobuildon/developtheland,wherethemortgagepropertyistheplot/pieceofland,theBorrower/sshallabide
withtheguidelinesprovidedbytheNationalBuildingCodeofIndiaincomplianceandconsonancewiththeBureauofIndian
Standards(BIS)normsprescribedforthesafetyandsecurityofthebuildingstructure.
(j) TheBorrower/swouldwithin2daysinformIHFLofanylossordamagetoPropertyduetoanyactofGodordamageorother
riskagainstwhichthePropertymaynothavebeeninsured.
(k) TheBorrower/swouldinformIHFLinwriting,atleast15daysinadvanceofanyproposedadditionstooralterationsinthe
PropertyandprovideallthedetailsthereofandshallnotdothesameifobjectedandnotallowedbyIHFL.
(l) InCasetheBorrower/sisaPartnershipFirm:
TheBorrower/sagreesthatnochangewhatsoeverintheconstitutionofthepartnershipfirmduringthecontinuance/validityof
theAgreementshallimpairordischargetheliabilityofanyoneorallofthepartners.Intheeventofdeathorretirementofany
partner,IHFLshallatitsdiscretiondealwiththesurvivingand/orcontinuingpartner/s,withoutaffectingitsrightsasagainstthe
retiringpartnerortheheirsandlegalrepresentativesofthedeceasedpartner,asIHFLshallthinkfitandproper,andtheretiring
partner and/or the heirs, executors, administrators, legal representatives of the deceased partner shall have no claim as
againstIHFLinrespectofsuchdealing.ThepartnerswhohavesignedtheAgreementconfirmthat:
(i) theyaretheonlypartnersofthefirmnamedintheScheduletotheAgreement;.
(ii) thepartnershipfirmisdulyregisteredundertheIndianPartnershipAct,1932.
(iii) theyshalladviseIHFLinwritingofanychangeswhichmaytakeplaceinthepartnership.
(iv) theywillnotdissolve/reconstitutethepartnershipfirmwithouttheapprovalofIHFL.
(8)
X 8____________________________