(STAMP DUTY AS PER STAMP ACT OF THE STATE CONCERNED)

ISO 9001-2015 Certified Regd. No. MSCS/CR/818/2013 GODAVARI

URBAN
MULTISTATE CREDIT CO-OP. SOCIETY LTD; NANDED
Head Office : Suryawanshi Complex, Taroda Naka, Nanded - 431 605
Corporate Office : Regent Chambers, 1st floor, Above Status Hotel, Nariman Point, Mumbai - 400021
Email : [email protected] Web : www.godavariurban.com

........................................ Branch

AGREEMENT OF TERM LOAN

Amount Rs. (Rs. )
This agreement executed by :

Name

This Agreement made at ____________ on the _______ day of _____________ 20 ______between

Godavari Urban Multistate Credit Co-Op. Society Ltd; Nanded., a Society registered under Multistate Co-
Operative Societies Act , 2002 (which term unless repugnant to the context shall include its successors and
assigns) and having its Head Office at Suryawanshi Complex, Taroda Naka, Nanded - 5, Here in after called "the
Society" of the
ONE PART.
AND
Shri/Messrs__________________________________________________________________________
____________________________________________________________________________________
Member/s of the Society, here in after called the BORROWER/S (which term unless repugnant to the context
shall include it's Proprietor, Partners, Directors, Legal heirs and administrators, successors and assigns) of the
SECOND PART.
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AND

(1) Shri/Smt./M/s.

(2) Shri/Smt./M/s.

(3) Shri/Smt./M/s.

All the member/s of Society here in after called the GUARANTORS / SURETIES (which expression shall unless
repugnant to the Context shall include it's Proprietor, Partners, Directors, Legal heirs and administrators,
Successors and assigns) of THIRD PART
WHEREAS the Borrower has applied to the Society for Term Loan of Rs. (Rupees
) upon the basis of and for the purpose set forth in the application dated for the grant of loan.
AND WHEREAS the Society has agreed to advance the Term Loan, vide its Sanction Letter under
Ref. No.____________ Dated ____________
AND WHEREAS sum of Rs. ____________ (Rupees _________________________________________ only)
is sanctioned, against security of Mortgaged where in all the original title deeds have been deposited in the
Society for the property at ____________________________________________________________ and the
same is to be released on, borrowers executing the agreement, thereby creating a legal charge against the assets /
movable assets already installed and or to be installed as per annexed herewith.
AND WHEREAS the member borrower has agreed to execute this Agreement creating a legal charge against the
assets more particularly on the property mentioned herein above belonging to the member borrower as a security
for the advance of term loan.
NOW THEREFORE THIS DEED WITNESSTH that the assets purchased and to be purchased by the (here
mention the name of the firm and place where property/ assets is installed and to be installed)
____________________________________________________________ described hereinafter, shall have the
first legal charge in favor of the Society for the Term Loan amount advances to the member borrower/s against
security of __________________________________________________ assets.

1. That the charged assets are free from all encumbrance, charge, right, interest and lien whatsoever.
2. That the charged assets are fully owned by the member borrower and no other person or authority has any
right, interest, charge, lien and domain in or over the same except the member, borrower.
3. That the member borrower undertakes to keep the charged assets free from all encumbrances, and shall not
create any right, title, interest, charge or lien in and over the same till the loan is fully repaid by the member
borrower.
4. That the member borrower shall keep the charged assets in perfect order in working condition during the
subsistence of this agreement and shall allow the Society's authorities to inspect it from time to time as and
when required by the Society.
5. That the member borrower further undertakes that it shall not do or cause to do any such act or acts which
shall impair the value utility and working or the charged assets during the subsitence of this Agreement.
6. That the member borrower further undertakes that, all charged assets purchased with the sum advanced or to
be advanced by the Society to the member borrower from time to time or otherwise shall remain charged with
the Society till they are brought upon or fixed in the said premises, PROVIDED ALWAYS AND IT IS
HEREBY AGREED that so long as such charged assets purchased with the sum advanced by the Society or
otherwise are not installed on the said factory premises, the member borrowers shall arranged to keep them

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 saved, unencumbered and free from any claim of any person till entire loan with interest & charges is fully
repaid.
7. That the member borrower affirms that the Charged assets described thereunder is insured by the borrower
member and further undertakes to keep the said charged assets with all its accessories and attachment
described here after duty insured during the subsistence of the charge and till the loan is fully repaid.
The member borrower herby agreed and confirmed that even if in or incase of charge of assets, movable or
immovable are not insured by the member borrower, it shall be obligatory on the member borrower to keep
the charged assets in good conditions and the Society shall not be held responsible fro any loss or damage to
charged assets on account of natural calamities, floods, rains, riots or on account of any other cause. In such
events the member borrower shall give additional security to the satisfaction of the Society.
8. AND WHEREAS I / We acknowledge the receipt of said amount of Term Loan sanctioned against charged
assets (described in Schedule here with)
9. I / We accepts to repay the above said loan amount together with interest and other charges within the period
of months from the date of first disbursement of the loan amount and shall be repaid as per the terms and
conditions set forth in sanction letter and any other documents executed separately by me / us.
10. That the interest at the rate of percent p.a. with monthly rests shall be calculated on the balance in
Society's favor due of the said loan account until the same is fully liquidated and shall be paid by Borrower as
and when demanded by the Society. In case of default the Society shall charge Penal interest @ percent
p.a. in addition to the agreed / regular rate of interest. Thus the defaulted amount carry interest @ Percent p.a.
( % p.a. as agreed / regular rate of interest + % p.a. as penal, total being @ % p.a.) with monthly rests,
till the date of realization. The rate of interest may be changed / increased by the Society as per Resolution of
the Board of Directors of the Society and changed / increased rate of interest shall be binding all the
Borrower/s and guarantors.
11. I / We accept and undertake to pay the agreed amount of monthly installment till entire loan amount is fully
repaid even after the stipulated number of monthly installments have been paid, if the loan account balance is
outstanding in favor of the Society to debits of Society charges, insurance, or additional interest due to
changes in rate of interest, delayed payments etc.
12. The Borrower shall not, without the written consent of the Society, create in any manner any charge, lien or
other encumbrance on the property / assets and security given to the Society in respect of such advance or
create any interest on such security in favor of any other party, person of institution.
13. Not with standing anything contained here in or in the security documents, the Term Loan advanced shall
become forth with due and payable by the borrower/s to the Society on its due date as per the repayment
schedule as stated in the sanction letter and OR prior to the due date of the loan, the Society will be entitles to
enforce its security for recovering whole loan upon the happening of any of the following events, namely : a)
Any installment of the principal moneys being unpaid on the due date for payment there of
b) As per schedule of repayment enumerated above any interest remaining unpaid and in arrears after the
same shall have become due whether formally or legally demanded or not.
c) The Borrower committing any breach or default in the performance or observance of the term and
conditions contained in these presents and / or in the Borrower's proposals and /or the security documents
or any other terms of conditions relating to the advance .
d) The Borrower's entering into any arrangement or composition with its creditors or committing any act of
insolvency.
e) An execution or distress being enforced or levied against the whole or any part of the Borrower's property /
Assets / Security.
f) Any of the partners of the Borrower (if a firm) being adjudicated insolvent or taking advantage of any law
for the relief of insolvent debtors.
g) Receiver being appointed in respect of the whole or any part of the whole or any part of the property of the
Borrower’s.
h) The Borrower ceasing or threatening to cease, to carry on business.
i) The occurrence of any circumstances which is prejudicial to or impairs or imperils or depreciates the
security given to the Society and
j) The occurrence of any event or circumstances which would or is likely to prejudicially or adversely affect
in any manner the capacity of the Borrower to repay the loan.
On the question whether any of the above events has happened, the decision of the Society shall be
conclusive and binding on the Borrower/s.
14. The Borrower/s shall punctually pay all rents, taxes and other outgoing of the shop & office, godown and or
premises wherein the charged assets shall be stored and keep the same free from distress.
15. The Borrower shall be co-operate upon every request of the Society and it’s agent, officers, employees
servants or nominees to inspect the borrower’s promises godown, factory and books of accounts including
electronic devices thereof, for ensuring that the Borrower has duly complied with the terms of the advance.
16. The Borrower/s declares that nothing herein shall operate to prejudice the Society’s right or remedies in
respect of any present or future security, guarantee obligation or decree for any indebtedness or liability of the
Borrower’s to the Society.

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17. If the Borrower be more than one individual all shall be jointly and severally liable and if the Borrower shall
be firm such firm and all partners from time to time there of shall be liable notwithstanding any changes in
the constitution or style thereof and whether the firm shall consist of or be reduced to one individual and & all
the partners of the firm signing documents such as promissory note, agreement/s etc. shall be liable for
payment of dues irrespective of fact that they subsequently retire from the partnership business.
18. The Borrower shall furnish the Society all such information as the Society may require for the Society’s
satisfaction as to due compliance of the terms of the loan and all such periodical reports and information of
such items, in such forms and containing such particulars as the Society’s may call for, the purpose of
ascertaining the result of
the utilization of the said loan and for the purpose of ascertaining financial condition of Borrower.
19. If any default is committed by the Borrower/s guarantors in repayment of the loan amount / interest thereon
any outstanding amount, the Society may of it’s discretion give public notice of their becoming defaulter in
any daily / weekly newspaper or in any other manner as the Society thinks proper or convenient. This is an
unconditional consent given by the Borrower/s and guarantors to the Society and in the event of such public
notice, the Borrower’s and or guarantors shall not have any right to raise objection of any type whatsoever
nor they shall have any dispute or complaint in any Court, in respect thereof.
20. That the Borrower/s hereby given an undertaking that he/ she / it / they shall not open any current / loan
account with any other Society or financial institution without prior written permission of the Society. If
he/she/it/they violate this condition, he / she / they, as the case may be liable for Criminal Breach of trust /
fraud and as such Society can initiate action against the Borrower.
21. The Borrower hereby irrevocably authorizes the Society to receive and appropriate the disbursement of
Central/ State incentives towards adjustment of the outstanding amount of the Term Loan with interest, costs,
charges, expenses, etc; as may be due and recoverable by the Society.
22. The Borrower agrees and declares that for enforcing this Agreement by the Society against it the Courts
at and or within the area of its operations shall have exclusive jurisdiction and the Borrower hereby submits
to the same.
23. This agreement shall be governed by the provisions of Multi State Co -Op. Societies Act 2002 and Byelaw of
the Society and the circulars of Co-Op. Department from time to time.
24. The Borrower shall not without the prior permission from Society, change the status/ composition of the
partners/ directors.
25. The Borrower/s shall co-operate upon every request of the Society and its agent, officers, employees, servants
or nominees to or any other outside Agencies duly authorized by the Society to inspect the borrower’s
premises, godown, factory and Borrower’s book of account including electronic devices etc., for ensuring that
the Borrower has duly complied with the terms of the advance and also to verify correctness of statements of
the Firm’s (borrower’s) financial statements submitted to the Society and also to verify financial condition of
the borrower/s.
26. The Borrower/s shall take out insurance to the extent of full value of the security (Immovable / Movable)
which is mortgaged / hypothecated or otherwise charged to the Society and insurance policy shall be in the
joint names of the Society and the Borrower/s. The Society shall not be responsible for any loss due to fire,
natural calamity, theft, riot or any other damages or loss due to any reason whatsoever. That the mortgaged
property / hypothecated goods / securities shall be insured against fire and necessary all other risks by the
Borrower/s in any insurance office or offices approved by the Society for their full market value and that the
Borrower/s shall on demand shall on demand deliver to the Society all policies for and the receipts for
premium paid on such insurance endorsed and assigned with the full benefit thereof in favor of the Society.. If
the borrower/s fails to deliver to the Society all policies for and the receipts of premium duly endorsed as
aforesaid within three days after the due date, the Society shall be at liberty at any time at its discretion
(though the Society is not bound to do so) to insure the securities for their full market value against fire and
all other necessary risks or any other type of insurance risk, at the cost of the borrower/s with any insurance
company. That all sums received under such insurance aforesaid shall be applied in or towards the liquidation
of the balance due to the Society.
27. The Society shall have first charge on the entire properties of the Borrower whether hypothecated, mortgaged
or not.
The borrower member also agrees
i. The member borrower use consent to the Society to refer the dispute before arbitrator for recovery of loan by
the Society u/s 84 of the Multistate Co-op. Societies Act 2002
ii. The Society who is secured creditor shall have first charge over the secured assets described in the schedule
and the Society shall have liberty to take actual possession of secured assets and to recover the loan amount
by putting secured assets by sale, even without notice to the member borrower or guarantor. iii. The action of
the Society for recovery of the loan amount shall be final and binding on the member borrower and other
person interested and same shall not be questioned in any court of law in any manner.
iv. The borrower member/ guarantor or any other person argued by any action of the Society, shall be precluded
for taking any civil, criminal or any other legal proceeding against the Society , its director, officials or
employees.

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v. The arbitration proceedings or any other proceedings if required to be taken shall be initiated, continued or
dealt with by the authority or court at only.
vi. The borrower whether individual or partnership or any other association/ guarantors shall become and
deemed to be have become the member of the Society and it shall not be open what any of them to say that
they / he / she is / are not the member of the Society.
28. A. The Borrower whether Individual, Partnership Firm or Corporation, any other association or Firm,
guarantors (including their legal heirs, successors, legatee, assign or any person representing the state of such
persons) as well as any person signing the documents in his own capacity or under authority (express or
implied) shall be deemed to be , member of the Society and shall be proceeded from contending otherwise,
and same be considered / taken in capacity and for benefit/ interest of such person and same cannot be called
in question from them at any time and in any manner, and it be treated to have been executed or signed after
understanding the contents, nature or effect of all covenants, terms and conditions of their own freewill.
B.No suit or criminal prosecution or any other legal proceedings shall lie against the Society, its Directors,
Officer(s), any other servant(s) or employee(s), in respect of anything done or purporting to be done, to
enforce this agreement or any other action taken under the Multi State Co-op. Society Act 2002 and rules as
may be amended from time to time or any other law for the time being in force, we also hereby give consent
to refer any dispute to arbitration as provided U/s 84 of Multi State Co-op. Societies Act 2002. I/We also
hereby agree and confirm that all or any action taken by the Society to enforce this agreement or breach of
any covenants shall be final and binding on me/us and shall not be called in question challenge in any court
of law or authority in any manner.
C. Notwithstanding in any other law for the time being in force and subject to the covenants of this
agreements all proceedings and action shall be taken or initiated and dealt with by the authority or court at
Only.
29. The Borrower & Guarantor hereby admit and record and confirm that the borrower & guarantors are aware
that Godavari Urban Multistate Credit Co-op Credit Soc. Ltd. (GUCC) has appointed Hindusthan
Microfinance Pvt. Ltd. (HMPL) as their Business Correspondent for this loan facility, wherein HMPL has all
the rights to collect the loan instalment payments, saving deposits & all forms of fees & charges from
borrower/guarantor on behalf of GUCC for this loan facility.
30. That the plant and machinery / equipment / movable assets against which legal charge are made under these
presents as under:
SCHEDULE OF CHARGED ASSETS (List of Plant and Machinery / Equipments or other movable assets)

Note : Besides the above described properties the Society shall have first charge over all such goods and
commodities which are marketable and also such goods and commodities of which inventory cannot be made
or ascertained.

The Borrower/s/Co-Borrower/s Sureties have executed this agreement on the day month and year above
written.

1. ___________________________

2. ___________________________

SIGNATURE OF BORROWER/S
We 1. ___________________________________

2. ___________________________________

hereby stand as sureties /guarantors and agree to pay the dues in full with interest in the terms of the agreement
executed by the Borrower jointly or severally in case any dues remain unpaid on the due date.

1. ___________________________________

2. ___________________________________

SIGNATURE OF SURETIES
Full name of the Borrower/s & Sureties / Guarantors

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 1. ___________________________________

2. ___________________________________

3. ___________________________________

4. ___________________________________
`
Signed before me
FOR : Godavari Urban Multistate
Credit Co-Op. Society Ltd; Nanded

Br. Manager / officer