Common use of Standing Instruction Clause in Contracts

Standing Instruction. The Borrower hereby gives irrevocable mandate in favour of the Bank to debit his Savings Bank/Current Account mentioned in the Schedule hereunder in an amount specified in the Schedule, on the days specified in the Schedule, and credit such debited amount with the Borrower’s loan account in relation to the Facility. The Borrower undertakes/agrees that: a) The Borrower shall maintain adequate funds in the said Savings/Current Account throughout the period of this Debit Mandate Instruction. b) The Borrower will issue cheque(s) in the said Savings/Current Account, only after maintaining adequate funds in the said Savings/Current Account to honour this Debit Mandate Instruction. The Bank is not under obligation to carry out the Debit Mandate Instruction if adequate funds are not available in the said Savings/Current Account on the given date. c) The Borrower authorizes the Bank to debit the Savings/Current Account for recovering the applicable charges or fees in connection with carrying out this Debit Mandate Instruction. d) This Debit Mandate Instruction shall hold good and valid till the Borrower delivers at the Bank, against proper acknowledgment, contrary advice in writing signed by the Borrower. e) The Bank may, at its discretion, cancel the Debit Mandate Instruction or recall/cancel the cheque books issued to the Borrower or close the said Savings/Current Account, without giving notice to the Borrower if the Bank notices consecutive 3 (Three) instances of dishonour of cheque or insufficiency of funds to carry out this Debit Mandate Instruction. In such event the Bank shall stand relieved forthwith from all its obligations under this Debit Mandate Instruction. f) Nothing contained in this Debit Mandate Instruction shall cast any obligation on the Bank to honour Borrower’s repayment commitments regarding the loan account. The Borrower will be responsible and liable for honouring all such commitments to the Bank, in conformity with the Facility Documents. g) If the Facility undergoes any restructuring (pursuant to the Borrower’s request or the Bank undertaking restructuring voluntarily or due to any regulatory/statutory package) the Bank is authorized to carry out the Debit Mandate Instruction in conformity with the terms in such restructuring without any specific further instructions by the Borrower. h) The Borrower acknowledges that he/she/they has/have been explained the contents of the Facility Documents in vernacular language and the Borrower confirms having been read over and having understood the contents, including the terms and conditions of the Facility Documents.

Standing Instruction. The Borrower hereby gives irrevocable mandate in favour of the Bank to debit his his/her/their Savings Bank/Current Account mentioned in the Schedule hereunder in an amount specified in the Schedule, on the days specified in the Schedule, and credit such debited amount with the Borrower’s loan account in relation to the Facility. The Borrower undertakes/agrees that: a) The Borrower shall maintain adequate funds in the said Savings/Current Account throughout the period of this Debit Mandate Instruction. b) The Borrower will issue cheque(s) in the said Savings/Current Account, only after maintaining adequate funds in the said Savings/Current Account to honour this Debit Mandate Instruction. The Bank is not under obligation to carry out the Debit Mandate Instruction if adequate funds are not available in the said Savings/Current Account on the given date. c) The Borrower authorizes the Bank to debit the Savings/Current Account for recovering the applicable charges or fees in connection with carrying out this Debit Mandate Instruction. d) This Debit Mandate Instruction shall hold good and valid till the Borrower delivers at the Bank, against proper acknowledgment, contrary advice in writing signed by the Borrower. e) The Bank may, at its discretion, cancel the Debit Mandate Instruction or recall/cancel the cheque books issued to the Borrower or close the said Savings/Current Account, without giving notice to the Borrower if the Bank notices consecutive 3 (Three) instances of dishonour of cheque or insufficiency of funds to carry out this Debit Mandate Instruction. In such event the Bank shall stand relieved forthwith from all its obligations under this Debit Mandate Instruction. f) Nothing contained in this Debit Mandate Instruction shall cast any obligation on the Bank to honour Borrower’s repayment commitments regarding the loan account. The Borrower will be responsible and liable for honouring all such commitments to the Bank, in conformity with the Facility Documents. g) If the Facility undergoes any restructuring (pursuant to the Borrower’s request or the Bank undertaking restructuring voluntarily or due to any regulatory/statutory package) the Bank is authorized to carry out the Debit Mandate Instruction in conformity with the terms in such restructuring without any specific or further instructions by the Borrower. h) The Borrower acknowledges that he/she/they has/have been explained the contents of the Facility Documents in vernacular language and the Borrower confirms having been read over and having understood the contents, including the terms and conditions of the Facility Documents.