Common use of SECURITY FOR THE FACILITY Clause in Contracts

SECURITY FOR THE FACILITY. i. The Facility together with all interest, all fees, commitment charges, costs, charges, expenses and other monies whatsoever stipulated in or payable under this Agreement and the other Transaction Documents shall be secured by Primary/ Collateral Security as specified in Schedule III (a) of this Agreement. ii. The security will be created in favour of the Bank, as required by the Bank, in a form and manner acceptable to the Bank. iii. The Pledgor/s shall make out / ensure that the third party security provider (if any) shall, make out a good and marketable title to its properties to be mortgaged to the Bank and comply with all such formalities as may be necessary or required for the said purpose. In case the Pledgor/s / third party security provider is a company, the particulars of charges shall be filed with the Registrar of Companies within the period prescribed by law, wherever required. iv. Bank will also be entitled to enforce security upon any breach or default in the performance or observance of these presents and/or the security documents and/or any other terms and conditions relating to the cash credit facility and/or compliance of any other instructions/directions of the Bank. v. The gold ornaments described in the take delivery letter which have already been delivered to the Bank and which the Pledgor/s may offer as security and which may be accepted by the Bank and which shall hereafter be delivered to the Bank under this instrument whether for the purpose of forming additional security for any sum already drawn or as security for any sum or sums to be drawn against the said cash credit account or by way of substitution for or in lieu of any gold ornaments which may from time to time have been delivered or may be delivered to the Bank under this instrument or otherwise, (hereinafter called “ the securities”) are hereby pledged to the Bank and stand pledged to the Bank or are deemed to have been so pledged as collateral security to the Bank for the payment by the Pledgor/s of the balance due at any time or ultimately on the closing of the said cash credit account and for the payment of all debts and liabilities mentioned in this deed. The expression “balance due to the Bank” in this or in any clause in this instrument shall be taken to include the principal moneys due from time to time on the said cash credit account and also of interest thereof calculated from day to day at the rate hereinafter mentioned and the amount of all charges and expenses which the Bank may have paid or incurred in any way in connection with the securities or the sale or disposal thereof. vi. The Pledgor/s shall not during the continuance of the cash credit account or the continuance of this pledge, pledge or otherwise charge or encumber any of the gold ornaments for the time being the subject or intended to be the subject of this security, nor do or permit any act to be done whereby the security herein before expressed to be given to the Bank shall in any way be prejudicially affected. vii. The Pledgor/s shall not, except with your previous consent, withdraw from the Bank the gold ornaments for the time being pledged to the Bank and forming part of the securities which are the subject of this agreement and the Bank shall not be compelled to give to the Pledgor/s release of gold ornaments pledged to the Bank unless the advance value of the said gold ornaments is paid in to the said account or gold ornaments of a similar nature to those mentioned in the take delivery letter or of any other nature acceptable to the Bank or any or the same and of at least equal value are substituted for the gold ornaments so withdrawn or unless the balance in the account is sufficient according to the Bank to warrant after providing the necessary margin required herein, the release to us of gold ornaments without payment therefore or substitution of fresh gold ornaments. viii. The Pledgor/s hereby agrees that the balance(s) outstanding in the credit facility/ies at any time shall always be lower than the value of the pledged security/ies as determined by the Bank at Bank‟s sole discretion by a margin morefully stated in Schedule I (f) of this agreement or by such other percentage as may be fixed by the Bank from time to time. If at any time the said margin falls for whatever reason, below the said percentage, the Pledgor/s agrees to immediately make it up by cash payment and/or deposit of further 22 ct. gold ornaments and the additional securities so deposited/substituted shall be deemed to have been pledged to the Bank. The Pledgor/s also agrees that if any default is committed by the Pledgor/s to maintain the stipulated margin, the Bank shall have option to recall the whole amount due to the bank on the said cash credit facility and in that event the Pledgor/s shall forthwith pay the entire amount due to the Bank. ix. The Pledgor/s also agrees that the gold ornaments pledged may be appraised by any person authorised by the Bank and Pledgor/s shall pay assessors fee expenses or charges for testing either the quality or fineness or weight of the ornaments as the case may be at Bank‟s sole discretion. x. If the Pledgor/s fails to maintain such margin as aforesaid or the Pledgor/s fails or neglects to pay to the Bank on demand the balance owing due to the Bank at any time or in the event of Pledgor/s becoming or being adjudicated insolvent/insolvents, it shall be lawful for the Bank forthwith or at any time thereafter and without any notice to the Pledgor/s and without prejudice to Bank‟s right of suit, to sell or otherwise dispose of absolutely either by public auction or by private sale all or any of the securities either wholly or in parts and to apply the net proceeds of such sale in or towards liquidation of the balance then owing due to the Bank. xi. If the net sum realised by such sale be insufficient to cover the balance which is owing due to the Bank, the Bank shall be at liberty to apply any other money or moneys in its hand standing to the credit of or belonging to the Pledgor/s or to any one or more of the Pledgor/ss in or towards the payment of the balance for the time being owing due to the Bank and in the event of there not being any such money or moneys as aforesaid in Bank‟s hands or in the event of such money or money being still insufficient for the discharge in full of such balance, the Pledgor/s agrees that forthwith on demand the Pledgor/s shall pay any further balance which may appear to be owing due by the Pledgor/s, provided always that nothing herein contained shall be deemed to negative, qualify, restrict, or otherwise prejudicially affect Bank‟s right to recover from the Pledgor/s the balance for the time being remaining due from the Pledgor/s to the Bank upon the said cash credit account notwithstanding that all or any of the said securities may not have been realised. xii. In the event of there being a surplus available out of the net proceeds of such sale of Pledgor/s‟s securities after payment in full of the balance owing due to the Bank, it shall be lawful for the Bank and the Bank shall have the right to retain and apply the said surplus together with any money or moneys belonging to the Pledgor/s or any one or more of them for the time being in Bank‟s hands in or under whatever account as far as the same shall extend, in or towards the payment or liquidation of any and all other moneys which shall be or may become due to the Bank from Pledgor/s or any one or more of them whether solely or jointly with any other person or persons, firm or company on any account whether by way of loans, bills discounted, letters of credit, guarantee, charges or any other debit liability or obligation, whether current or not yet become due and whether by way of principal borrower/debtor or by way of surety. xiii. The Pledgor/s agrees that the Pledgor/s shall accept without question Bank‟s accounts or sales or other transactions in relation to Pledgor/s‟s securities as sufficient proof of the amount realised by such sale or sales and the costs and charges incurred in connection therewith. xiv. The Pledgor/s agree that the Bank shall not be held responsible for any loss sustained by any act or default of any Brokers or Auctioneers employed in or for the sale or sales of the said gold ornaments or in any other manner whatsoever in respect of the said gold ornaments. xv. The Pledgor/s agree that the Bank shall not be responsible or answerable to the Pledgor/s for any damage or depreciation which the said securities may suffer while in Bank‟s possession and Pledgor/s shall not hold the Bank responsible for any loss, shortage or diminution in quality or weight of the gold ornaments caused by theft or burglary of any other names and such damage, depreciation or diminution shall be suffered and borne by the Pledgor/s solely. xvi. The Pledgor/s hereby acknowledges that the Bank has accepted the pledge of the gold ornaments described in the schedule hereunder and agreed to take pledge of the gold ornaments which will be delivered by the Pledgor/s from time to time on the distinct undertaking that the Bank shall not be liable to the Pledgor/s or heirs, assigns, administrators or executors of Pledgor/s or any person claiming any right or title to the securities under or through the Pledgor/s for accountability on the ground of any shortage of any quantity or of any defect or variation in the quality, nature, condition and contents of the gold ornaments as may have been represented by the Pledgor/s and it is further expressly agreed by the Pledgor/s that the gold ornaments pledged and to be pledged by the Pledgor/s under this instrument shall be deemed to have been accepted by the Bank solely on the faith of Pledgor/s‟s representations to quantity, quality, condition, weight, nature and contents thereof (notwithstanding any certificate of any gold appraiser/ valuer or any employee of the Bank acknowledging receipt of the gold ornaments as represented by the Pledgor/s or delivered to the Bank and any purported verification thereof by such person). xvii. All the gold ornaments which will be pledged to the Bank by thePledgor/s under this indenture will be only 22 ct. gold ornaments and on which the Pledgor/s has a right to pledge. The Pledgor/s undertakes not to pledge with the Bank Gold/Silver bullion. The Pledgor/s hereby declares that no gold ornaments which are the subject matter of suit, lien, attachment, encumbrance, dispute regarding ownership or connection with any fraud or theft will be or has been pledged with the Bank. When gold ornaments are pledged by the Pledgor/s it shall be deemed to have been accepted by the Bank on the implied warranty and representation that such gold ornaments belong to the Pledgor/s absolutely and over which the Pledgor/s has absolute right to create a valid pledge in Bank‟s favour. The pledge of gold ornaments made/to be made under this indenture in Bank‟s favour carries with it a right for the Bank to repledge the same to which the Pledgor/s also hereby expressly gives consent.

SECURITY FOR THE FACILITY. i. 1) The Facility together with all interest, all fees, commitment charges, costs, charges, expenses and other monies whatsoever stipulated in or payable under this Agreement and the other Transaction Documents shall be secured by Primary/ Collateral Security as specified in Schedule III (a) of this Agreement. ii. 2) The security will be created in favour of the Bank, as required by the Bank, in a form and manner acceptable to the Bank. iii. 3) The Pledgor/s Borrower shall make out / ensure that the third party security provider (if any) shall, make out a good and marketable title to its properties to be mortgaged to the Bank and comply with all such formalities as may be necessary or required for the said purpose. In case the Pledgor/s Borrower / third party security provider is a company, the particulars of charges shall be filed with the Registrar of Companies within the period prescribed by law, wherever required. iv. Bank will also be entitled to enforce security upon any breach or default in 4) The Borrower(s) agrees that the performance or observance of these presents and/or the security documents and/or any other terms and conditions relating to the cash credit facility and/or compliance of any other instructions/directions of the Bank. v. The gold ornaments goods described in the take delivery letter general terms in Schedule IV hereto which have already been delivered to the Bank and goods of the same variety as described in the Schedule or any other variety which the Pledgor/s Borrower(s) may offer as security and which may be accepted by the Bank and which shall hereafter be delivered to the Bank under this instrument whether for the purpose of forming additional security for any sum already drawn or as security for any sum or sums to be drawn against the said cash credit account or by way of substitution for or in lieu of any gold ornaments goods which may from time to time have been delivered or may be delivered to the Bank under this instrument or otherwise, (hereinafter called “ “the securities”) are hereby pledged to the Bank and stand pledged to the Bank or are deemed to have been so pledged as collateral security to the Bank for the payment by the Pledgor/s Borrower(s) of the balance due at any time or ultimately on the closing of the said cash credit account and for the payment of all debts and liabilities mentioned in this deedagreement. The expression “„balance due to the Bank” Bank‟ in this or in any subsequent clause in this instrument shall be taken to include the principal moneys due from time to time on the said cash credit account and also of interest thereof calculated from day to day at the rate hereinafter mentioned above and the amount of all charges and expenses which the Bank may have paid or incurred in any way in connection with the securities or the sale or disposal thereof. vi. 5) The Pledgor/s shall not Borrower(s) agree that during the continuance of the cash credit account or the continuance of this pledge, not to pledge or otherwise charge or encumber any of the gold ornaments goods for the time being the subject or intended to be the subject of this security, nor do or permit any act to be done whereby the security herein herein-before expressed to be given to the Bank you shall in any way be prejudicially affected. vii. 6) The Pledgor/s shall not, except with your previous consent, withdraw Borrower(s) agrees that this instrument and the securities pledged from time to time in pursuance of this instrument of pledge are to operate as security for the balance from time to time due to the Bank and also for the gold ornaments ultimate balance which may become due to the Bank on the said cash credit account and the said account is not to be considered as closed for the purpose of this instrument of pledge and the securities deposited in pursuance thereof and this instrument of pledge is not to be considered exhausted, by reason of the said cash credit account being brought to credit at any time or from time to time or its being drawn upon the full extent and if afterwards reopened by payment to Bank‟s credit. 7) The Borrower(s) agrees not to withdraw the goods for the time being pledged to the Bank and forming part of the securities which are the subject of this agreement except with bank‟s previous consent and the Bank shall not be compelled to give to the Pledgor/s release of gold ornaments goods pledged to the Bank unless the advance value of the said gold ornaments goods is paid in to into the said account or gold ornaments goods of a similar nature to those mentioned in the take delivery letter schedule hereto or of any other nature acceptable to the Bank or any or the same and of at least equal value are substituted for the gold ornaments goods so withdrawn or unless the balance in the account is sufficient according to the Bank to warrant after providing the necessary margin required hereinby the Bank, the release to us of gold ornaments goods without payment therefore or substitution of fresh gold ornaments. viiigoods. The Pledgor/s hereby agrees that the balance(s) outstanding in the credit facility/ies at any time Release of goods shall always be lower than the value of the pledged security/ies as determined obtained by the Bank at Bank‟s sole discretion by a margin morefully stated in Schedule I (fBorrower(s) of this agreement or by such other percentage as may be fixed by the Bank from time to time. If at any time the said margin falls for whatever reason, below the said percentage, the Pledgor/s agrees to immediately make it up by cash payment and/or deposit of further 22 ct. gold ornaments and the additional securities so deposited/substituted shall be deemed to have been pledged only against delivery orders issued to the Bank. The Pledgor/s also agrees that if any default is committed by the Pledgor/s to maintain the stipulated margin, the Bank shall have option to recall the whole amount due to the bank on the said cash credit facility and in that event the Pledgor/s shall forthwith pay the entire amount due to the Bank. ix. The Pledgor/s also agrees that the gold ornaments pledged may be appraised by any person authorised Borrower(s) by the Bank and Pledgor/s shall pay assessors fee expenses or charges for testing either the quality or fineness or weight of surrender thereof duly discharged by the ornaments as the case may be at Bank‟s sole discretionBorrower(s). x. If 8) The Borrower(s) agrees that in the Pledgor/s fails to maintain such margin as aforesaid or the Pledgor/s fails or neglects event of Borrower‟s failure to pay to the Bank on demand the balance owing due to aforesaid credit facilities or any part thereof together with interest thereon as per the tenor of the promissory note executed by the Borrower in favour of the Bank at any time and all costs, charges and expenses incurred by the Bank in connection therewith or in respect of the possession of the goods/documents of title to goods, or in the event of Pledgor/s becoming Borrower‟s failure to observe or being adjudicated insolvent/insolventsperform any of the terms and conditions hereof, it the Bank shall be lawful for the Bank forthwith or at any time thereafter and entitled without any previous notice to the Pledgor/s Borrower(s) or consent from the Borrower(s) [notwithstanding any notice required by law or otherwise to be given, the right to which notice is hereby expressly waived by the Borrower(s)] and without prejudice to any of Bank‟s right of suitother rights or remedies, to sell or otherwise dispose of absolutely either by public auction or by private sale all contract as the Bank may consider advisable at any time or times the goods pledged as aforesaid or any of the securities either wholly part or in parts thereof and to apply appropriate the net sale proceeds of such sale in or the first instance towards liquidation of the balance then owing costs, charges insurance premia and expenses due to the Bank. xiBank for the keeping of and selling the said goods and then towards the debt due on the pronote and all interest and charges there on. If the net sum realised by such sale be insufficient to cover the balance which is owing due to the Bankafter appropriation made as above; any surplus remains, the Bank shall be at liberty to apply and appropriate the amount against any other debts or liabilities of the Borrower to the Bank, whether alone or jointly with any person or persons/ firms (whether as principal debtors or as surety) whether the same be secured or not and whether such debts/had become due or not. The Bank shall have also the right without any previous notice to the Borrower(s) to set off or appropriate any sum or sums of money or moneys in its hand standing to the credit of or belonging to the Pledgor/s or to Borrower(s) in any one or more account at any office of the Pledgor/ss in or Bank towards the payment of debt due by the balance for the time being owing due to the Bank and Borrower(s), in the event of there not being any such money failure of the Borrower(s) to pay the debt on demand or moneys as aforesaid in Bank‟s hands or „in the event of such money or money being still insufficient for any deficit existing even after appropriating the discharge in full sale proceeds of the goods. 9) The Borrower(s) agrees to accept without question the Bank‟s accounts of such balancesale or sales or other transactions made by the Bank and its Officers as sufficient proof of the amount realized by the sale or sales and the costs, the Pledgor/s charges and expenses incurred in connection there with. 10) The Borrower(s) agrees that forthwith on demand the Pledgor/s bank shall pay not be responsible for any further balance which may appear to be owing due by loss from or through any brokers or auctioneers employed in the Pledgor/s, provided always that nothing herein contained shall be deemed to negative, qualify, restrict, sale or otherwise prejudicially affect Bank‟s right to recover from the Pledgor/s the balance for the time being remaining due from the Pledgor/s to the Bank upon the said cash credit account notwithstanding that all or any sales of the said securities may not have been realisedgoods or in any other manner whatsoever in respect of the said goods. xii. In the event of there being a surplus available out of the net proceeds of such sale of Pledgor/s‟s securities after payment in full of the balance owing due to the Bank, it shall be lawful for the Bank and 11) The Borrower(s) further agrees that the Bank shall have the right right, without being obliged to retain and apply do so to hold all the securities pledged by the Borrower(s) under this instrument by way of collateral security for the above said surplus together with any money or moneys belonging to the Pledgor/s cash credit account, as security for all or any one of Borrower‟s other indebtedness or more of them for the time being in Bank‟s hands in or under whatever account as far as the same shall extend, in or towards the payment or liquidation of any and all other moneys which shall be or may become due liability to the Bank from Pledgor/s or on any one or more account at any office of them your Bank, whether solely alone or jointly with any other person or persons, firm or firms, company on any account or companies and whether by way of loans, bills discounted, letters of credit, guarantee, charges as principal debtor or any other debit as surety and whether such liability or obligation, whether current has become due or not yet become and it is understood and agreed to by the Borrower(s) that so long as there is liability of any sort owing due to the Bank from the Borrower(s), the Bank shall not be required to return the securities which may remain in Bank‟s hands after the said cash credit account is closed and whether by stands adjusted, though the Bank may, if it so choose and without being obliged to do so, deliver the same to the Borrower(s) and that the Bank shall in no way of principal borrower/debtor be liable or by way of suretyresponsible to the Borrower(s) if such securities are not delivered to the Borrower(s) after the cash credit account is closed. xiii. 12) The Pledgor/s Borrower(s) agrees that the Pledgor/s shall accept without question Bank‟s accounts or sales or other transactions in relation to Pledgor/s‟s securities as sufficient proof of the amount realised by such sale or sales and the costs and charges incurred in connection therewith. xiv. The Pledgor/s agree that the Bank shall not be held responsible for any loss sustained required to sell the goods pledged before suing the Borrower(s) on the debt due, as it is purely optional on Bank‟s part so to do and that the Borrower(s) shall not dispute Bank‟s right to ▇▇▇ the Borrower(s) on debt due, retaining the goods/documents of title to goods, pledged by any act or default of any Brokers or Auctioneers employed in or for the sale or sales of the said gold ornaments or in any other manner whatsoever in respect of the said gold ornamentsBorrower(s) as collateral security. xv. 13) The Pledgor/s agree Borrower(s) agrees that the Bank shall not be answerable or responsible or answerable to the Pledgor/s for any damage or depreciation which the said securities goods and property may suffer while in Bank‟s possession and Pledgor/s that the Borrower(s) shall not also hold the Bank responsible for any loss, loss or shortage or diminution in quality or weight of the gold ornaments goods caused by theft theft, burglary or burglary of any other names causes and that such damage, loss or damages or depreciation or diminution shall be suffered and borne by the Pledgor/s solelyBorrower(s) wholly. xvi. 14) The Pledgor/s Borrower(s) hereby acknowledges that the Bank has accepted the pledge of the gold ornaments described goods particularised in the schedule hereunder and agreed to take pledge of the gold ornaments which will be delivered by the Pledgor/s from time to time Schedule IV on the distinct undertaking understanding that the Bank shall not be held liable to the PledgorBorrower(s) or their/s or its heirs, assignsassignees, administrators or executors of Pledgor/s or any person persons claiming any right or title to the securities goods under or through the Pledgor/s them for accountability on the ground of any shortage of any quantity or of any defect or variation in the quality, nature, condition and contents of the gold ornaments goods as may have been represented by the Pledgor/s Borrower(s) and it is further expressly agreed by the Pledgor/s that the gold ornaments pledged and to be pledged by pledge of the Pledgor/s under this instrument shall be deemed to have been accepted goods was taken by the Bank solely on the faith of Pledgor/s‟s representations the representation of the Borrower(s) as to the quantity, quality, quality and condition, weight, nature and contents thereof of the said goods and without verification of the correctness of such representation of the Borrower(s) on the strength of which wholly the Bank was induced to act by the Borrower(s) (notwithstanding any certificate of any gold appraiser/ valuer godown-keeper or any other employee of the Bank bank acknowledging receipt of the gold ornaments goods as represented by the Pledgor/s Borrower(s) or delivered delivery to the Bank and any purported verification thereof by such personbank). xvii. All 15) The Borrower(s) hereby declares that the gold ornaments Borrower(s) has/have every right to pledge the goods / documents of title to goods hereby pledged and to create a valid pledge thereof in Bank‟s favour and that there are no encumbrances, lien or attachment of any kind or sort over the same. 16) The Borrower(s) hereby confirms that all the goods and securities which are pledged/will be pledged to the Bank by thePledgor/s the Borrower under this indenture will be only 22 ct. gold ornaments goods and securities on which the PledgorBorrower(s) has/s has have a right to pledge. The Pledgor/s undertakes not to pledge with the Bank Gold/Silver bullion. The Pledgor/s hereby declares that no gold ornaments and which are the subject matter free from any sort of suitencumbrance, lien, attachment, encumbrance, dispute regarding ownership or connection with attachment of any fraud or theft will be or has been pledged with the Bank. When gold ornaments kind whatsoever and when goods are pledged to the Bank by the Pledgor/s Borrower under this indenture from time to time, it shall be deemed to have been accepted by the Bank on the implied warranty and representation that such gold ornaments belong goods are goods belonging to the Pledgor/s Borrower absolutely and over which the Pledgor/s has Borrower(s) has/ have absolute right to create a valid pledge in Bank‟s favourfavour and that they are free from any defect of title and that there are no encumbrances, lien or attachment over the same. The pledge of gold ornaments made/to be made securities and goods the Borrower(s) make under this indenture in Bank‟s favour carries with it a right for the Bank to repledge re-pledge the same to which the Pledgor/s Borrower(s) also hereby expressly gives give consent.

SECURITY FOR THE FACILITY. i. The Facility together with all interest, all fees, commitment charges, costs, charges, expenses and other monies whatsoever stipulated in or payable under this Agreement and the other Transaction Documents shall be secured by Primary/ Collateral Security as specified in Schedule III (a) of this Agreement. ii. The security will be created in favour of the Bank, as required by the Bank, in a form and manner acceptable to the Bank. iii. The Pledgor/s shall make out / ensure that the third party security provider (if any) shall, make out a good and marketable title to its properties to be mortgaged to the Bank and comply with all such formalities as may be necessary or required for the said purpose. In case the Pledgor/s / third party security provider is a company, the particulars of charges shall be filed with the Registrar of Companies within the period prescribed by law, wherever required. iv. Bank will also be entitled to enforce security upon any breach or default in the performance or observance of these presents and/or the security documents and/or any other terms and conditions relating to the cash credit facility and/or compliance of any other instructions/directions of the Bank. v. The gold ornaments described in the take delivery letter which have already been delivered to the Bank and which the Pledgor/s may offer as security and which may be accepted by the Bank and which shall hereafter be delivered to the Bank under this instrument whether for the purpose of forming additional security for any sum already drawn or as security for any sum or sums to be drawn against the said cash credit account or by way of substitution for or in lieu of any gold ornaments which may from time to time have been delivered or may be delivered to the Bank under this instrument or otherwise, (hereinafter called “ the securities”) are hereby pledged to the Bank and stand pledged to the Bank or are deemed to have been so pledged as collateral security to the Bank for the payment by the Pledgor/s of the balance due at any time or ultimately on the closing of the said cash credit account and for the payment of all debts and liabilities mentioned in this deed. The expression “balance due to the Bank” in this or in any clause in this instrument shall be taken to include the principal moneys due from time to time on the said cash credit account and also of interest thereof calculated from day to day at the rate hereinafter mentioned and the amount of all charges and expenses which the Bank may have paid or incurred in any way in connection with the securities or the sale or disposal thereof. vi. The Pledgor/s shall not during the continuance of the cash credit account or the continuance of this pledge, pledge or otherwise charge or encumber any of the gold ornaments for the time being the subject or intended to be the subject of this security, nor do or permit any act to be done whereby the security herein before expressed to be given to the Bank shall in any way be prejudicially affected. vii. The Pledgor/s shall not, except with your previous consent, withdraw from the Bank the gold ornaments for the time being pledged to the Bank and forming part of the securities which are the subject of this agreement and the Bank shall not be compelled to give to the Pledgor/s release of gold ornaments pledged to the Bank unless the advance value of the said gold ornaments is paid in to the said account or gold ornaments of a similar nature to those mentioned in the take delivery letter or of any other nature acceptable to the Bank or any or the same and of at least equal value are substituted for the gold ornaments so withdrawn or unless the balance in the account is sufficient according to the Bank to warrant after providing the necessary margin required herein, the release to us of gold ornaments without payment therefore or substitution of fresh gold ornaments. viii. The Pledgor/s hereby agrees that the balance(s) outstanding in the credit facility/ies at any time shall always be lower than the value of the pledged security/ies as determined by the Bank at Bank‟s sole discretion by a margin morefully stated in Schedule I (f) of this agreement or by such other percentage as may be fixed by the Bank from time to time. If at any time the said margin falls for whatever reason, below the said percentage, the Pledgor/s agrees to immediately make it up by cash payment and/or deposit of further 22 ct. gold ornaments and the additional securities so deposited/substituted shall be deemed to have been pledged to the Bank. The Pledgor/s also agrees that if any default is committed by the Pledgor/s to maintain the stipulated margin, the Bank shall have option to recall the whole amount due to the bank on the said cash credit facility and in that event the Pledgor/s shall forthwith pay the entire amount due to the Bank. ix. The Pledgor/s also agrees that the gold ornaments pledged may be appraised by any person authorised by the Bank and Pledgor/s shall pay assessors fee expenses or charges for testing either the quality or fineness or weight of the ornaments as the case may be at Bank‟s sole discretion. x. If the Pledgor/s fails to maintain such margin as aforesaid or the Pledgor/s fails or neglects to pay to the Bank on demand the balance owing due to the Bank at any time or in the event of Pledgor/s becoming or being adjudicated insolvent/insolvents, it shall be lawful for the Bank forthwith or at any time thereafter and without any notice to the Pledgor/s and without prejudice to Bank‟s right of suit, to sell or otherwise dispose of absolutely either by public auction or by private sale all or any of the securities either wholly or in parts and to apply the net proceeds of such sale in or towards liquidation of the balance then owing due to the Bank. However, the first right of redemption will be given to the original Pawner, by sending registered notice and if he/she fails to redeem, then only, auction will be conducted. xi. If the net sum realised by such sale be insufficient to cover the balance which is owing due to the Bank, the Bank shall be at liberty to apply any other money or moneys in its hand standing to the credit of or belonging to the Pledgor/s or to any one or more of the Pledgor/ss in or towards the payment of the balance for the time being owing due to the Bank and in the event of there not being any such money or moneys as aforesaid in Bank‟s hands or in the event of such money or money being still insufficient for the discharge in full of such balance, the Pledgor/s agrees that forthwith on demand the Pledgor/s shall pay any further balance which may appear to be owing due by the Pledgor/s, provided always that nothing herein contained shall be deemed to negative, qualify, restrict, or otherwise prejudicially affect Bank‟s right to recover from the Pledgor/s the balance for the time being remaining due from the Pledgor/s to the Bank upon the said cash credit account notwithstanding that all or any of the said securities may not have been realised. xii. In the event of there being a surplus available out of the net proceeds of such sale of Pledgor/s‟s securities after payment in full of the balance owing due to the Bank, it shall be lawful for the Bank and the Bank shall have the right to retain and apply the said surplus together with any money or moneys belonging to the Pledgor/s or any one or more of them for the time being in Bank‟s hands in or under whatever account as far as the same shall extend, in or towards the payment or liquidation of any and all other moneys which shall be or may become due to the Bank from Pledgor/s or any one or more of them whether solely or jointly with any other person or persons, firm or company on any account whether by way of loans, bills discounted, letters of credit, guarantee, charges or any other debit liability or obligation, whether current or not yet become due and whether by way of principal borrower/debtor or by way of surety. xiii. The Pledgor/s agrees that the Pledgor/s shall accept without question Bank‟s accounts or sales or other transactions in relation to Pledgor/s‟s securities as sufficient proof of the amount realised by such sale or sales and the costs and charges incurred in connection therewith. xiv. The Pledgor/s agree that the Bank shall not be held responsible for any loss sustained by any act or default of any Brokers or Auctioneers employed in or for the sale or sales of the said gold ornaments or in any other manner whatsoever in respect of the said gold ornaments. xv. The Pledgor/s agree that the Bank shall not be responsible or answerable to the Pledgor/s for any damage or depreciation which the said securities may suffer while in Bank‟s possession and Pledgor/s shall not hold the Bank responsible for any loss, shortage or diminution in quality or weight of the gold ornaments caused by theft or burglary of any other names and such damage, depreciation or diminution shall be suffered and borne by the Pledgor/s solely. xvi. The Pledgor/s hereby acknowledges that the Bank has accepted the pledge of the gold ornaments described in the schedule hereunder and agreed to take pledge of the gold ornaments which will be delivered by the Pledgor/s from time to time on the distinct undertaking that the Bank shall not be liable to the Pledgor/s or heirs, assigns, administrators or executors of Pledgor/s or any person claiming any right or title to the securities under or through the Pledgor/s for accountability on the ground of any shortage of any quantity or of any defect or variation in the quality, nature, condition and contents of the gold ornaments as may have been represented by the Pledgor/s and it is further expressly agreed by the Pledgor/s that the gold ornaments pledged and to be pledged by the Pledgor/s under this instrument shall be deemed to have been accepted by the Bank solely on the faith of Pledgor/s‟s representations to quantity, quality, condition, weight, nature and contents thereof (notwithstanding any certificate of any gold appraiser/ valuer or any employee of the Bank acknowledging receipt of the gold ornaments as represented by the Pledgor/s or delivered to the Bank and any purported verification thereof by such person). xvii. All the gold ornaments which will be pledged to the Bank by thePledgorthe Pledgor/s under this indenture will be only 22 ct. gold ornaments ornaments, which were originally pledged to him by various persons in the course of business of the Pledgor and on which the Pledgor/s has a right to pledge. The Pledgor/s undertakes not to pledge with the Bank Gold/Silver bullion. The Pledgor/s hereby declares that no gold ornaments which are the subject matter of suit, lien, attachment, encumbrance, dispute regarding ownership or connection with any fraud or theft will be or has been pledged with the Bank. When gold ornaments are pledged by the Pledgor/s it shall be deemed to have been accepted by the Bank on the implied warranty and representation that such gold ornaments belong to the Pledgor/s absolutely and over which the Pledgor/s has absolute right to create a valid Re-pledge in Bank‟s favour, over such gold ornaments. The pledge of gold ornaments made/to be made under this indenture in Bank‟s favour carries with it a right for the Bank to repledge the same to which the Pledgor/s also hereby expressly gives consent. xviii. In the event of death or insolvency of the Pledgor or in a situation the whereabouts of Pledgor is not known, Bank has got the right to release the pledged gold ornaments to the original pawner, in lieu of accepting the amount due to the Pledgor from the original Pawner and the amount so collected is to be credited to the account of the borrower.