FORM IV

[See Rule-29]
Form of Mortgage bond for Motor Vehicle/ Personal Computer – Initial Advance

THIS INDENTURE made this....................day of ................................. two thousand and

....................BETWEEN............................. (Hereinafter called “the Borrower” which expression shall
include his heirs administrator, executors, and legal representatives) of the one part and the
PRESIDENT of India (hereafter called the President”, which expression shall include his successors
and assigns) of the other part WHEREAS the Borrower has applied for and has been granted an
advance of Rupees........ ................................. to purchase a Motor Vehicle/Computer and / or to pay
customs duty in respect of a (the ) Motor Vehicle/ Computer on the terms of Rules 21 to 30 of the
compendium, of the Central Government ( hereinafter referred to as “ the said Rules’’ which
expression shall include any amendment thereof or addition thereto for the time being in force) AND
WHEREAS one of conditions upon which the said advance has been /was granted to the Borrower is
/was that the Borrower will/would hypothecate the said Motor Vehicle/Computer to the president as
Security for the amount lent to the Borrower AND WHEREAS the Borrower has purchased and /or
paid custom duty with or partly with the amount so advanced as aforesaid the Motor
Vehicle/Computer particulars whereof are set out in the Schedule hereunder written .

NOW THIS INDENTURE WITNESSETH that in pursuance of the said agreement and for the
consideration aforesaid the Borrower doth hereby covenant to pay to the President the sum of
Rs.................................aforesaid or the balance there of remaining unpaid at the date of these
presents by equal payment of Rs..................................each on the first day of every month and will
pay interest on the sum for the time being remaining due and owing calculated according to the said
rules and the Borrower doth agree that such payment may be recovered by monthly deductions from
his salary in the manner provided by the said rules or where in the event of his proceeding on
deputation out of India for a period exceeding twelve months or of his being transferred to a post
outside India , the competent authority has allowed repayment of the amount of advance remaining
unpaid and /or interest as aforesaid on the happening of such as event in rupees in India ,the
Borrower doth hereby agree to pay to the President such dues by remittance through Bank draft
drawn by the 15th of every month in favour of the Accounts Officer in whose books the accounts of the
aforesaid advance are kept , and in further pursuance of the said agreement the Borrower doth
hereby assign and transfer unto the President the Motor Vehicle/ Computer the particulars whereof
are set out in the Schedule hereunto written by way of security for the said advance and the interest
thereon as required by the said Rules.

And The Borrower doth hereby agree and declare that he has paid in full the purchase price
of the said Motor Vehicle /computer and /Or the entire customs duty payable and that the same is his
absolute property and that he has not pledged and so long as any money remain payable to the
President in respect of the said advance will not sell pledge or part with the property in or possession
of the said Motor Vehicle /Computer PROVIDED ALWAYS and it is hereby agreed and declared that
if any of the said instalments of principal or interest shall not be paid or recovered in manner aforesaid
within ten days after the same are due or if the borrower shall die or at any time cease to be in
Government service or if the Borrower shall sell or pledge or part with the property in or possession of
the said Motor Vehicle /Computer or become insolvent or make any composition or arrangement with
his creditors or if any person shall take proceedings in execution of any decree or judgment against
the Borrower the whole of the said principal sum which shall then be remaining due and unpaid
together with interest thereon calculated as aforesaid shall forthwith became payable AND IT IS
HEREBY AGRREED and declared that the president may on the happening of any of the events
hereinbefore mentioned seize and the possession of the said Motor Vehicle / Computer and either
remain in possession thereof without removing the same or else may remove and sell the said Motor
Vehicle /Computer either by public auction or private contract and may out of the sale moneys retain
the balance of the said advance them remaining unpaid and any interest due thereon calculated as
aforesaid and all costs, charges expenses and payments property incurred or made in maintaining
defending or realizing his rights hereunder and shall pay over the surplus if any to the Borrower his
executors, administrators or personal representative PROVIDED FURTHER that aforesaid power of
taking possession or selling or said Motor Vehicle/ Computer shall not prejudice the right of the
President, to sue the Borrower or his personal representatives for the said balance remaining due and
interest or in the case of the Motor Vehicle/Computer being sold he amount by which the net sale
proceeds fall short of the amount owing AND THE Borrower here by further agrees that so long as
any moneys are remaining due and owing to the president the will not permit or suffer the said Motor
Vehicle/Computer to be destroyed or injured or to deteriorate in a greater degree than it would
deteriorate by reasonable wear and tear thereof AND further that the event of any damage or
accident happening to the said Motor Vehicle/ Computer the Borrower will forthwith have the same
repaired and made good.

THE SCHEDULE

Description of Motor Vehicle/ Computer

Maker’s Name

Description

No of Cylinders

Engine Number

Chasis No

Cost Price

IN WITNESS WHERE OF the Mortgagor/ Borrower has hereunto set his hand and
Shri.........................in the Ministry /Office of ........................for and on behalf of the President of India
has hereunto set his hand

Signed by the said

In the presence of

1. ........................................... ............................................

2............................................... ................................................

(Signature of Witness) (Signature and designation of the Borrower)

Signed by...................................

(Name & Designation)

For and on behalf of the President

Of India in the presence of

1. ....................................... ....................................................
2. ....................................... ......................................................
(Signature of Witness) (Signature and designation of the Officer)