TWO WHEELR LOAN

Application Form
Loan A/c no. …………………………..

Name of Applicant :………………………………………………..

Father's Name :………………………………………………..

Address :………………………………………………..

:………………………………………………..

:………………………………………………..

Mobile No. :………………………………………………..

Aadhar/PAN No. :………………………………………………..

Loan Amount :………………………………………………..

Date of Sanction :………………………………………………..

1
THE LUDHIANA CENTRAL COOPERATIVE BANK LTD., LUDHIANA
APPLICATION FOR PURCHASE OF
TWO WHEELER
The Manager,
The Ludhiana Central Co-op. Bank Ltd.,
B. O. :............................................ Latest
Photograph
Dear Sir, of the
Applicant

I hereby apply for grant of loan for the purchase of two wheeler vehicle i.e............................
.........................................................(Name of two wheeler). The particulars for your consideration
and sanction of loan are as under :-

1. Name of Applicant : .............................................................................

2. Father's Husband Name : .............................................................................
3. Residential Address : Vill......................................P.O............................
Teh.:.........................Distt. Ludhiana.................
Phone No.............................................................
4. Age of Applicant : .............................................................................
5. Land Holding (Acre) : .............................................................................
6. Annual Income of Applicant (Approx.) : .............................................................................
7. Name & Model of Vehicle : .............................................................................
8. Total cost of Vehicle to be purchase : .............................................................................
(Enclose Proforma Invoice)
9. Name & Address of dealer to whom : .............................................................................
the payment is to be made
10. Driving Licence No. and Validity : .............................................................................
date (Attached photocopy)
11. Whether member of Agri. : Yes / No
If yes, Name of Sty.
12. Repayment Plan (Please tick the a) Monthly plan
plan you require) b) Half year plan
13. Detail of immovable property : .............................................................................
owned by the Applicant
14. Detail of Collateral Security : .............................................................................
offered & its value
15. Nominal Membership No. : .............................................................................
16. Name of Guarantor/Surety : .............................................................................

1. Name : .....................................
Father's Name : ...................................... Age :
.................................................................. Address :
Latest
.................................................................. Occupation :
Photograph
.................................................................. Details of Property : of the
Guarantor
.................................................................. a) Movable :
.................................................................. b) Immovable :
..................................................................

2
 Nominal Membership Number :...................................................................

2. Name : ..................................................................
Father's Name : ..................................................................
Age : ..................................................................
Latest
Address : .................................................................. Photograph
of the
Occupation : ..................................................................
Guarantor
Details of Property : ..................................................................
a) Movable : ..................................................................
b) Immovable : ..................................................................

If is Certified that myself and my sureties are not defaulters of any loan raised from the
Bank/PADB/RRB or any other Financial institution.
I hereby declare that the above information are true and correct, I agree to abide by the Rules,
Bylaws, terms and conditions at present or amended or revised from time to time for the
advancement of Loan.

Yours Faithfully,

Date:..................................
(Signature of Applicant)

Enclosures :
1. Residential proof copy of Ration Card / Election Card / Passport / any other valid proof.
2. Proforma Invoice for two wheeler.
3. Copy of Driving Licence.
4. Fard Jamabandi / Copy of Kisan Credit Card.

3
 (For Officer Use)

OFFICE VERIFICATION REPORT

I have checked and verified the particulars of applicant and guarantors as filled in the
applicant from / documents submitted to the branch and I am satisfied about their correctness. The
applicant is a nominal member of bank since...................................(date of admission as nominal
member). His/her nominal membership no. is.......................The guarantors Mr..............................
nominal membership no.......................admitted as nominal member on......................(date) and
...............................(date) respectively. His supporting documents are complete.

So I recommend a loan of Rs.............................................may please be sanctioned.

Signature of Verifying Officer

Date:......................... Designation

ORDER OF THE SANCTIONING AUTHORITY

Sanctioned a loan of Rs.......................................for two wheeler to Mr...................................

S/o. Mr...........................................

Signature of Sanctioning Officers

Date:......................... Designation

4
 (TO BE FILLED IN ONLY IF PREVIOUSLY NOT ADMITTED AS MEMBER)
The Manager,
Latest
The Ludhiana Central Cooperative Bank Ltd.,
Photograph
B. O.................................. of the
Applicant

Dear Sir,

APPLICATION FOR NOMINAL MEMBERSHIP

It is submitted that I may kindly be admitted as Nominal Member of your Bank under The
Punjab State Cooperative Societies Act, 1961. Rules 1963 and Bye-laws of the Bank.
My Particulars are as under :-
1. Name (In Capital Letters) : ....................................................................
2. Father's Name : ....................................................................
3. Age of Applicant : ....................................................................
4. Permanent Address : ....................................................................
5. Correspondence Address : ....................................................................
I affirm and declare that the above facts/information are true and correct.
Signature/Thumb Impression of the Applicant

INTRODUCTION
I certify that I know the above named Sh./Smt...............................for the last...........................
months/years and confirm the particulars stated by the applicant in the application.
Signature of Introducer..................................................
Name.............................................................................
Father's Name...............................................................
Nominal Membership No...............................................
or Deposit/Loan Account No.........................................
Date :................................

FOR THE OFFICE USE

Verified the particulars for admission as Nominal Member...................................................
Approved for admission as nominal member Nominal Membership Fees Rs...................................
Deposited vide Entry No..................................
Date .............................

REPORTING CLERK AUTHORISED OFFICER

Nominal Membership No. Alloted...................................................................

THE LUDHIANA CENTRAL COOPERATIVE BANK LTD., LUDHIANA

BRANCH OFFICE....................................
(Nominal Membership Receipt)

Sh./Smt...................................................S/o, D/o, W/o,Sh............................................. been

admitted as nominal member of the bank. His/her nominal membership number is..........................

Branch Manager

5
 THE LUDHIANA CENTRAL COOPERATIVE BANK LTD.,

B. O. :.....................................

Sh...........................................

................................................

Subject : Sanction of loan under two wheeler Loan scheme.

Dear Sir,

Please refer to your application dated.......................which has been considered by this office.
We are pleased to inform you that this bank has sanctioned you loan of Rs.......................................
only under the two wheeler loan scheme.

The loan has been sanctioned on the following terms and conditions.
1. The loan is repayable within a period of 5 Years.
2. First installment will start from the M/O.......................2002 and there after on or before 30th
September and 31st March every year.
3. Repayment installment has been fixed at Rs....................................per month half yearly
which will have to be deposited in the bank.
4. Interest @.............% p.a. with half yearly rests will be charged. This amount of interest will be
debited to the principal end of 30th Sept. and 31st March every year. This rate of intt. is subject
to change by the bank from time to time. On default of one installment, penal intt.@..............%
p.a. and default of two or more installments penal interest@................% will be Charged on
the defaulted period and any incidental / litigation charges will be debited to your account.
5. The bank will make the payment in the name of dealer from whom the vehicle is to be
purchased.
6. The bank will have the 1st charge of the vehicle to be purchaged and it will be insured for the
value by taking comprehensive policy in the name of the bank as hypothecate and the
borrower as hypothecator.
7. The bank have the right to make the physical verification of the vehicle as well as any security
offered by you.
8. You will have to pay the entire amount of taxes payable to any authority, what soever may be
and will keep the hypothecated vehicle intact & free from all encumbrances.
9. You have to submit bill/ invoice of the vehicle to be purchased and copy of certificate of
registration of vehicle to the bank within two month from the date of disbursement of loan,
otherwise a penal rate of interest @......................% p.a. will be charged over and above. The
vehicle shall be registered in the area of operation of bank and the copy of Certificate of
registration must contain hypothecation clause in the favour of the bank.
10. In case you fail to repay the loan installments or violate any terms & conditions of the
agreement, the bank shall have the right to recall the entire loan at any time and setoff any
credit balance in the name of the borrower in any account maintained with any branch of the
bank without any notice.

6
You will have to furnish the below noted documents to the bank before obtaining the loan.
a. Agreement for hypothecation of vehicle.
b. Letter of Guarantee.
c. Demand Promissory Note.
d. Letter of lien and Sett Off.
e. Letter of waiver
f. Letter of acceptance of terms and conditions of sanction letter.
g. Receipt of loan amount.

You will have to abide by act & rule governing the facility and Bye-Laws of the Bank.

Branch Manager

I ACCEPT ALL THE TERMS AND CONDITIONS OF THIS LETTER IN ENTIRETY.

DATE ..................................... SIGNATURE OF THE BORROWER

7
 AGREEMENT FOR HYPOTHECATION OF VEHICLE
Date........................................
Place......................................
LOAN ACCOUNT NO............

The Ludhiana Central Cooperative Bank Ltd., ..........................................(here in Called

‘‘The Bank’’ which expression shall include its successors and assigns having at the request of
Sh./Smt....................................................Son/Daughter of Sh./Smt................................................
at present resident of village.....................................P.O............................Tehsil............................
District.....................................(here in after called ‘‘The Borrower’’ which expression shall include
his respective successor, heirs, executors, administrators and assigns) agreed to grant
accommodation to the Borrower to enable the borrower to pay for the two wheelers with fitting &
accessories more particularly specified and described in Schedule I here to (here in after referred to
as "The said Vehicle") to be used only for social/domestic/personal/official purpose.

1. The Borrower has already made an initial or down payment to the suppliers of the said vehicle
amounting to Rs....................................The bank shall grant accommodation to the Borrower
by giving to the Borrower a loan of Rs...................................(Rs..............................................
................................................) to enable him/her to pay the balance price of the said vehicle.
2. The Borrower shall repay the loan amounting to Rs.............................(Rs...............................
...............................................................monthly/half yearly installments. The first installment
shall paid to the bank of on before 10th of every month/10th of next half year i.e. 30th
September and 31st March, until the entire loan has been repaid.
3. The Borrower Shall also pay interest @...............percent per annum, calculated on the half
yearly rests, on the daily balance, In case of default of one installment, the loan shall bear
penal interest @................percent per annum over and above the normal rate of interest.
4. The Bank Shall have liberty to change rate of interest from time to time without notice to the
Borrower of its intention to change and may thereafter charge interest at such higher rate as
the bank may specify.
5. The Borrower shall utilise the money advanced by the bank under this agreement exclusively
for the purpose of purchasing the said vehicle specified in schedule I here to annexed to be
used for the social / domestic / personal / official purpose in accordance with the statement
made in the Borrowers application dated...........................and if the Bank apprehends or has
reason to believe that Borrower has violated, or is violating this condition, the bank shall have
to right to recall the loan amt. or any part there of at once not with standing anything to the
contrary contained in the above or any agreement.
6. As security for the said loan & also payment of any other charges, costs (between Attorney
and client) and expenses payable to or incurred by the bank in relation there to the borrower
hereby charges and hypothecates to the bank all the said vehicle(s) specified & described in
schedule I here to annexed which will at any time during the continuance of this security be
kept with the borrower.
7. The said vehicle(s) purchased by the borrower as aforesaid shall remain hypothecated to
bank by way first charge as security for the payment by borrower to the Bank of the said loan
and also as security for the payment & discharge of all indebtedness or the liabilities of the
borrower to bank on general balance of account(S) together with all interest discount
commission costs (inclusive between attorney and client) charges & expenses payable to or
incurred by the bank in relation to said advance or the enforcement of any one or more of the
securities. The Borrower shall not during the continuance of this security create any charge of
encumbrance of any kind over said vehicle(S) subsequent to the creation of hypothecation
shall be likewise kept unencumbered absolute and disposable property of the Borrower and
would be included in the said vehicle(s) and would stand hypothecated to the bank as a
security in terms of these presents and all the provisions here under shall be applicable there to.

8
8. The Borrower shall pay all the fees & taxes payable in respect of the said vehicle(s) as and
when the same become due & shall also keep the said vehicle(s) at the Borrower's risk and
expenses in good condition and fully insured against all loses and damages as may be
required by the Bank from time to time in such basis and for such value as may be satisfactory
to the bank with such insurance office of repute to be approved of in writing by the bank and
shall pay premia or sums of money necessary for such purpose of for renewal there of at least
one week before the day on which the same become payable & will on every occasion deposit
with the bank the policy of insurance and the receipt for such payment or shall obtain from the
insurance company concerned an acknowledgment to the effect the interest which the has in
such insurance claim and such deposit the said acknowledgement with the bank, and that the
Borrower will not at any time here after during the continuance of any such insurance as
aforesaid do or cause or allow to be done any act-or commit any default where by the said
insurance may be rendered void or voidable or an increased premium may become payable
there of and in case at any time, the said insurance shall by any means become void or
voidable or the Borrower shall forth with a his/her own cost effect a new insurance in lieu of
such void or voidable insurance as aforesaid and also that if default shall be made in payment
of the fee & taxes as aforesaid or fails to renew such insurance it shall be law full for but not
obligatory upon the bank to pay such fees and taxes and to keep the said vehicle (s) in good
condition and to insure and keep insured and said vehicle (s) in the manner aforesaid and the
Borrower will on demand repay tot be bank every sum of money expended by it for the purpose
aforesaid with interest there on at the rate aforesaid from time to time of the same having been
expended & until such repayment, the same shall be a charge on the security hereby created
and it shall also be opened to bank to debit every such sum of money together with such
interest to any a/c of the Borrower opened. All sums or money received under or by virtue of
any such insurance as aforesaid shall at the option of the bank either be applied towards
replacement there of as far as possible or towards satisfaction of the bank's dues as here
under.
9. If the Borrower ceases to the use the said vehicle hereby hypothecated for the above stated
purpose or if any installment due here under shall not be paid on the due date in the manner
aforesaid then in any of such events the agreement of the bank to accept payment or the said
loan by installment shall at the option of the bank forth with determine and the whole balance
of the said loan unpaid at the date of such default shall immediately there upon become
payable to bank and the bank shall be entitled to charge at its own discretion whether or not it
exercises the option above referred to enhanced rate of interest at..........% on the outstanding
and the charging of such enhanced rate of interest shall be with out prejudice on the bank's
other's rights and remedies.
10. The bank its agents and nominees shall entitled at all times without notice to the Borrower's
but at the Borrowers risk and expense and if so required as attorney for and in the name of the
Borrower to enter any place where he said vehicle (s) may be and inspect value insurance
superintend disposal and/or take particulars of all or any part of said vehicle (s) and check any
statements, accounts reports and information and also so any default of the Borrower in
payment of any money hereby secured or the performance of any obligation of the Borrower to
the bank or if any statement representation or warranty made by Borrower in his/her loan
application or in any supporting financial statement shall be found to be false or inaccurate in
any material respect or on the or occurrence of any circumstances in the in the opinion of the
bank endangering this security to take possession and transfer the said vehicle (s) in its own
name and for that purpose sign execute and register any documents and to all such things as
are necessary in this regard or recover/receive appoint receivers or remove and/or sell by
public auction or private contract dispatch for realization or otherwise dispose of or deal with or
deal any part of the said vehicle(s) & to enforce realization or otherwise dispose of or deal with
or any part of the said vehicle(s) & to enforce realize to settle compromise and deal with any
right or claims relating there to without being bound to exercise any of these powers of being
liable for any loss in the exercise there to and without prejudice to the bank's right and
embodies of suit for otherwise and not with standing there may be pending suit for other
proceedings the Borrower undertaking to give immediate possessions to the bank on the
demand of the said vehicle (s) and to transfer & deliver to bank all relative bills contracts
securities and documents agreeing to accept the banks accounts of sales and realisation as
sufficient proof of amount realised and relative expenses & to pay any shortfall or deficiency

9
 there by shown provided that bank shall be entitled at all times to apply any other money or
money in its hand standing to the credit of or belonging to the Borrower in or towards payment
of any amount for the time being payable to the bank and to recover at any time from the
Borrower by suit or otherwise the balance remaining payment payable to the bank under this
agreement or otherwise not withstanding that all or any of the securities may not have been
realised.
11. That the security hereby created shall be separate and distinct and shall not be effected by any
other security (ies), indemnities or guarantees that the bank may have relating on the said
account or any other obligation present and future of the Borrower to the bank nothing there in
shall prejudice any rights remedies of liability of the Borrower to the Bank and the Bank shall
have full authority to take recourse to or enforce this security or any other guarantee indemnity
or security that the Bank may have full as herein before stated at the sole discretion of the
Bank.
12. The Borrower shall furnish and verify all statements accounts documents & information and
shall also execute all documents and do all such acts and things the bank may require to give
effect there to & the Borrower here by authorises the Bank and each of its agents & nominees
as attorneys for and in the name of the Borrower to do whatever the Borrower may be required
to do hereunder.
13. In case of any dispute, the matter shall be referred to The Registrar of Co-operative Societies,
Punjab under provisions PCS Act 1961 final decision and the decision of the Registrar shall be
final and binding on both the parties and nor resort shall be made to any civil suit for decision of
the dispute.
14. The Borrower shall be bound by the rules & Bye-laws of the Bank which are now in force or
hereafter may come in to force and the terms there of shall be deemed to have been
incorporated into this agreement.

SCHEDULE
Of the hypothecated vehicle held in trust as a security for advance made as per this
agreement.

Brief description of vehicle :

Engine No :
chassis No. :
Make of Vehicle :
Manufacturer of Vehicle :
Year of Manufacture :
Value of the Vehicle : Rs. P.

In witness where of I/We have here upto set our hands this day of ...................................... the
year thousand.
(Signature of Borrower)
Witness:1 :
Address :

Witness:2 :
Address :

For and on behalf

The Ludhiana Central Co-op. Bank Ltd.

10
 LETTER OF LIEN AND SET OFF

Date:............................
Place: ..........................
The Branch Manager,
The Ludhiana Central Co-op, Bank Ltd.

Dear Sir,

In consideration of your making advance to me for two wheeler and/or giving me banking
accommodation and facilities by way of loan/overdraft/ cash credit from time to time, I agree with
you as follows: -

1. That you may hold all securities belongs to me (which may now be in your possessions or
which may at & time here after come into your possession) and the proceeds there of
respective not only for the specific advance made there on but also be collateral security for
any other moneys now due or which may at any time be due from me to you, whether singly or
jointly with another or others.

2. That in addition to any general lien or similar right to which you are banker may be entitled by
law you may at any time & without notice to be combine or consolidate all or any of my
accounts with and liabilities to you and set off or transfer my sum of sums standing to the credit
of any one more of such accounts in or towards satisfaction of any my liabilities to you on any
other count or any other respect Whether such liabilities be actual or contingent primary or
collateral and several or joint.

3. That if any balance of the sale proceeds shall remain in the hands of the bank after the sale of
any of the securities, The Bank may at its sole discretion apply that balance if any towards any
sum of sums of money that may be owing by me to bank upon any other account or any other
transaction or transactions separate or distinct from the security, end you will pay to me any
surplus which may remain after settlement of all claims of you bank against me.

Yours Faithfully,
Date this..................day of.......................

Signature..............................................

Name....................................................

Address................................................

.............................................................

.............................................................

11
 LETTER OF ACCEPTANCE OF CONDITIONS

The Branch Manager,

The Ludhiana Central Co-op, Bank Ltd.

Dear Sir,

In reference to your office letter No...........................dated........................... with respect to

sanction of loan amount Rs...........................................(Rupees.....................................................
.....................................................................)

I hereby accept all the terms and conditions put forth in the said letter, I will complete all the
formalities in this regards. Further I request you to make payment of vehicle by demand draft / pay
order in the name of M/s........................................................................

Thanking You

Yours Faithfully,

(..................................................)

12
 PROMISSORY NOTE

Rs................................. Place....................................

On demand I promise to pay The Ludhiana Central Cooperative Bank Ltd.,........................... or

order the sum of Rs...................................(Rupees....................................................................)
being amount of loan raised for the purpose.....................................................together with interest
at ......................per annum with half yearly rest for the value received.

I also undertake to pay penal interest as prescribed in scheme over and above the normal rate
of interest in case of default.

I further undertake that may change in rate of any interest/penal rate of interest shall be
acceptable and binding on me.

(Signature of Revenue Stamp)

Name :...................................................................

Address :...............................................................

..............................................................................

..............................................................................

..............................................................................

13
 LETTER OF GUARANTOR
DATE..........................

PLACE.......................
The Manager,
The.............................Central Cooperative Bank Ltd.,
.................................................
Dear Sir,
Your Bank has agreed to granted Two Wheeler loan to Sh/Smt................................................
.................................................Son/Daughterof Sh/Smt..................................................................
at present resident of Village..............................................P.O.......................................................
Tehsil....................................District...................................
1. In consideration of such grant of the loan facility, We the undersigned A...................................
(Name of Guarantor or) Son/Daughter of Sh............................................................................
Resident of...........................................................................................................................in
our individual and personal capacity, hereby agree to pay and satisfy to your Bank on demand
in writing of all advances, Liabilities, bills and promissary notes, whether made, incurred or
discounted before of after the date hereof, to or for the principal, either alone or jointly with any
other person or persons, and also on bills, promissary notes, or guarantees held by you
bearing the principal's signature, together with interest, commission and other banking
charges including all legal charges and expenses, PROVIDED always that the total amount
which I/We shall be liable to under this guarantee shall not exceed Rs......................................
(Rupees..................................................................... only) together with interest at the rate of
percent there on. or at such other rate of interest, or which may then be payable by the
principal or which may have been notified to the principal, from the date of the principal's
default until payment, and I/We expressly agree that you shall have full discretionary power
without any further conset from me/ us and without in any way affecting my/our Liability under
this guarantee, to renew any advances, and to hold over, renew or give up, in hole or in part
and from time to time, any bills, notes, mortgages, charges liens or other securities received or
to be received from the principal, either alone or jointly with any other person or persons or
bearing the name of Principal, You Shall be at liberty without anyway effecting my/our liability
under this guarantee and I/We hereby give my our consent to you to very any contract or any
term or terms of any contract entered into with or to release or discharge or to do ant act of
commission the legal consequence of which is to discharge or to enter into any composition or
compound with or promise to grant time or any other indulgence or not sue, either the principal
or any other person or persons liable on any such bills, notes, mortgages, charges, liens or
other securities, or any person liable as surety, or collaterally liable for the principal, or any
other person or persons.
And I/We further agree that my/our guarantee shall be considered continuing security to
you, and shall not be determined except at the expiration of one calender months written
notice given to you of intention so to do by me/us and in the event of my/our death or coming
under a disability, the liability of my/our estate shall continue until the expiration of three
calendar months notice in writing given to you of the intention of my/our legal representative to
determine this guarantee shall be applicable to the ultimate balance that may become due to
you from the principal in the account not with standing that such account may be in the
meantime at any time or times have been in credit or may have disclosed a reduced or nil
balance and until repayment or such balance you shall be entitled to retain realise or
otherwise dispose off in such manner as you may think fit any securities, bow or hereafter held
by you and without any liability to account to me/us or any proportion or such securities of the
proceeds there of until the said ultimate balance shall have been satisfied, And in the
meantime I/We will not take any steps to enforce any right or claim against the principal in
respect of any moneys paid by me/us to you here under, And further, that if you should receive
payments from the principal, or any person or persons as aforesaid liable to you or from any
security held by you or if the principal, or any person or persons as aforesaid liable to you shall
14
 become bankrupt or insolvent or being a corporation of any incorporated company shall pass
a resolution for voluntary winding up, or shall be ordered to be wound up by an order of the
court, or shall enter into any arrangement, scheme compromise with his/her, its or their credit
or creditors, you shall be at liberty with out discharging my/our liability to make or assent to an
compromises compositions or arrangements, or to prove our and to rank as creditor in respect
of the general balance of your account or any item or items thereof and to receive dividends
there upon, and all such payments and dividends received shall be treated as payment sin
gross, any my/our liability shall extend to the ultimate balance after deducting such payments,
other than payments made by any cosurety, for the full sum hereby guaranteed and to the
entire exclusion and surrender of all my/our rights as surety/sureties in competition with you
the status of bankrupt or any rule of law or equity to the contrary not with standing, unless you
have been paid all your dues in full. A demand in writing shall be demand to have been dully
give to me/us or my/our legal personal representatives by sending the same by post
addressed to me us at the address here under written and shall be effectual not with standing
any change of residence or death and not with standing notice here of to the bank and such
demand shall be received by me/Us or my/our legal personal representative as the case be 24
hours after the posting there of and shall be sufficient if signed by any officer of the Bank's and
proving such service it shall be sufficient to prove that the letter containing the demand was
properly addressed and put into post office. In the event of this guarantee being determined
either by notice by me/us or by my/our legal representatives or by demand in writing by the
Bank, it shall be law full for the Bank to continue the account with the principal not withstanding
such determination, and the liability of myself/our selves or of my/our estate for the amount
due from the principal at the date when the guarantee is so determined shall remain not with
standing any sub sequent payment into or out of the account by or on behalf of the principal.
1. That this guarantee shall be additional to any other guarantee for the principal signed by
me/us that you may at any time hold I/We agree that a copy of the account for the Principal
contained in your books of account or of the account for the proceeding six months, if the
account shall have extended beyond the period signed by the Agent or Manager of the time
being of the office at which such account shall kept or any officer of the Bank shall be
conclusive evidence against myself/ourselves and my/our estate, of the amount for the time
being to you from the principal in any action or other proceedings brought against me/us or
my/our estate upon guarantee.
2. I/We waive in favour all or any of my/our right against you or the principal so far as may be
necessary to give effect to any of the provision of this guarantee. And I/We shall not be entitled
to claim the benefit of any legal consequence of any variation or any contract entered into by
the principal with you the liability in respect of which is guaranteed by me/us aforesaid.
3. Whenever the amount due from the principal either alone or jointly shall exceed the limit for
which I am/we are liable under this guarantee, you may if you think fit elect which particular
accounts or items shall be considered as exclusively secured by this guarantee. And you shall
be at liberty at any time in case of the payment my me/us of any of the moneys hereby
guaranteed to place the same to a suspense account for any period that you may think fit and
such money shall not be considered as paid on account of the money due to you from the
principals, principal or any such other persons.
4. Should the guarantee cease from any case to be binding as a continuing security on me/us
you may open a fresh account or accounts and continue any existing account with the
principal and no money paid into such account and subsequently drawn out by the principal
shall on settlement of any claim under the guarantee be from the principal at the time of his
guarantee ceasing to be so binding as aforesaid in the absence of a direction in writing to
appropriate given to you by the person paying in such money.
5. If I/We now have or shall hereafter take any security from the principal in respect of my/our
liability under this guarantee, I/We will not prove in the bankruptcy or insolvency or winding up
of the principal in respect there of to your prejudice and such security shall stand as a security
for you and shall forth with be deposited with you.
6. This guarantee shall be enforce able against me/us not with standing that any applicable shall
at time of proceeding being taken against me/us on this guarantee be outstanding or in
15
 circulation. To give effect to this guarantee, you may act as though I was/we were the principal
debtors.
7. I/we also agree that we shall not be discharged from liability by your releasing the principal
debtor or by any act or ommission of your's the legal consequences of which may be to
discharge the principal debtor or by any act of yours which would, but for this present
provisions, be consistent with our rights as sureties or by your ommission to do any act, which
but for this present provision, your duty to us would have required by you to do. Though, as
between the principal debtor and our selves and us we are sureties only, we agree that as
between your selves and us we are principal debtor jointly with him and accordingly we shall
not be entitled to any of the rights conferred on sureties by sections 133, 134, 135, 139 and
141 of the contract Act.
8. You shall also be at liberty to release or discharge any of us from the obligations of this
guarantee to accept any composition from or make any other arrangements with any of us
without thereby prejudicing or affecting your rights and remedies against the other or others of us.
9. You shall have a lien or any or all of my/our Accounts, Saving, Current, Fixed Deposit, or any
account of any nature what so ever or any money or my/our security or securities with you
towards the payment of any amount including any installment or installments due or payable
under this guarantee and you shall be entitled to adjust the same in case the principal debtor
to fails to pay the amount of installment or installments due and payable to you. An intimation in
this regard to me/us will be sufficient proof of any such adjustment made by you from my/our
account or any of my/our account or any security. You will be entitled to make any adjustment
of appropriation of any money (s) in any of my account with you whether or not a demand has
been made on the principal debtor. My/our liability on this guarantee bond is coextensive with
that of the customer. it will be no answer on our part that the demand should in the first instance
have made on the customer. Any such adjustment or adjustments made will not in any way
affect our liability under this guarantee. Our Liability under these presents shall be joint and
several.
This guarantee shall ensure for the benefit of your successor and assigns and shall be
binding on me/our heirs, executors administrators estate and effects.

Yours faithfully,

Name............................................................

S/o................................................................

Address.........................................................

Witness : Nominal Membership....................................

1.

2.

16
 ‘π«Ù¡≈ Í ’∂∫Á ∆ LUDHIANA CENTRAL

‘π«Ù¡≈ Í LUDHIANA

APPLICATION FOR
PURCHASE OF TWO
WHEELER

The Ludhiana Central Co-op. Bank Ltd.

LUDHIANA