Common use of COVENANTS FOR SECURITY Clause in Contracts

COVENANTS FOR SECURITY. a) The Borrower covenants that the Dues being repayment of the Loan and payment of interest, additional/default interest, fees, commitment charges, costs, other charges and expenses and all other amounts payable to the Bank under this Agreement shall be secured or cause to be secured by such Security as determined by the Bank in its sole discretion. The Bank shall have the right to prescribe the type of security and the place, timing and the manner of its creation. Such security shall be created prior to the disbursement of the Loan. The Bank may during the term of this Agreement also require for the Borrower to create additional security and the Borrower undertakes to create or cause to create such additional security as and when called upon by the Bank. Without prejudice to the generality of the above, the Borrower shall create such additional security (a) in the event of the Dues being more than the market value of the Security or otherwise in accordance with the margin requirements of the Bank; and (b) in the event of destruction or damage or depreciation or fall in value of any Security given to the Bank or the title of any such Security being unclear, unmarketable or encumbered in the opinion of the Bank or affecting the value of the Security in any manner whatsoever. b) The Borrower shall also procure Guarantee of the Guarantor/s named in Item No. XII of Schedule A hereto, for the payment of the Dues being Repayment of the Loan, payment of interest, additional interest, fees, commitment charges, costs, charges and expenses and all other amounts payable to the Bank under this Agreement. c) The Borrower/Co-Borrower shall declare the details of legal heirs and the properties which have not been charged to the Bank as security for financial assistance granted as set out in Schedule F. d) as and when called upon by the Bank, during the term of this Agreement, execute and deliver to the Bank such Irrevocable Powers of Attorney in the format of the Bank empowering the Bank to create Security for the payment of the Dues, as stated aforesaid in sub- clause (a) e) The Borrower shall execute such bond(s), promissory notes in favour of the Bank for the payment of the Dues as required by the Bank. Further the Borrower shall also execute and deliver such other documents, writings, Power of Attorney and Agreements as may be required by the Bank f) The Borrower shall execute in favour of the Bank postdated cheques of such amounts and numbers as intimated by the Bank for repayment of the Dues. g) Any benefit or sums accrued under any additional/collateral security provided/assigned to the Bank to secure the Dues being the Repayment of the Loan and payment of interest, additional interest, fees, commitment charges, costs, charges and expenses and all other amounts payable to the Bank under this Agreement or any addendum, supplemental Agreement thereto, shall be credited in such manner towards the Dues unless the Bank decides otherwise. The Borrower shall be responsible to intimate to the Bank 15 days in advance in writing about the maturity date, accrual date or due date of any such additional/collateral security.

COVENANTS FOR SECURITY. (a) The Borrower covenants that the Dues being repayment of the Loan and payment of interest, additional/default interest, fees, commitment charges, costs, other charges and expenses and all other amounts payable to the Bank under this Agreement shall be secured or cause to be secured by (i) such Security security as mentioned under item No. XV of Schedule A, (ii) such other security as determined by the Bank in its sole discretion. . (b) The Bank shall have the right to prescribe the type of security and the place, timing and the manner of its creation. Such security shall be created prior to the disbursement of the Loan. Loan and the Bank shall not be required to disburse the Loan until and unless such security has been created. (c) The Bank may during the term of this Agreement also require for the Borrower to create additional security and the Borrower undertakes to create or cause to create such additional security as and when called upon by the Bank. Without prejudice to the generality of the above, the Borrower shall create such additional security security (a) in the event of the Dues being more than the market value of the Security or otherwise in accordance with the margin requirements of the Bank; and (b) in the event of destruction or damage or depreciation or fall in value of any Security given to the Bank or the title of any such Security being unclear, unmarketable or encumbered in the opinion of the Bank or affecting the value of the Security in any manner whatsoever.. KMBL/HF/AGE-03 b(d) The Borrower shall also procure Guarantee of the Guarantor/s named in Item No. XII XIII of Schedule A hereto, for the payment of the Dues being Repayment of the Loan, payment of interest, additional interest, feesFees, commitment charges, costs, charges and expenses and all other amounts payable to the Bank under this Agreement. c(e) The Borrower/Co-Borrower shall declare the details of legal heirs and the properties which have not been charged to the Bank as security for financial assistance granted as set out in Schedule F. d) as and when called upon by the Bank, during the term of this Agreement, execute and deliver to the Bank such Irrevocable Powers Power of Attorney in the format of the Bank empowering the Bank to create crate Security for the payment of the Dues, as stated aforesaid in sub- sub-clause (a), (b) and (c). e(f) The Borrower shall execute such bond(s), promissory Promissory notes in favour of the Bank for the payment of the Dues as required by the Bank. Further the Borrower shall also execute and deliver such other documents, writings, Power of Attorney and Agreements agreements as may be required by the Bank. f(g) The Borrower shall execute in favour of the Bank postdated post dated cheques of such amounts and numbers as intimated by the Bank for repayment of the Dues. g(h) Any benefit or sums accrued under any additional/collateral security provided/assigned to the Bank to secure the Dues being the Repayment of the Loan and payment of interest, additional interest, fees, commitment charges, costs, charges and expenses and all other amounts payable to the Bank under this Agreement or any addendum, supplemental Agreement agreement thereto, shall be credited in such manner towards the Dues unless the Bank decides otherwise. The Borrower shall be responsible to intimate to the Bank 15 days Days in advance in writing about the maturity date, accrual date or due date of any such additional/additional / collateral security.